CETA as an opportunity for growth for the Polish logistics sector
The economic and trade agreement between the EU and Canada offers opportunities for growth for the Polish logistics sector.
Last October, the European Union and Canada signed CETA, the Comprehensive Economic and Trade Agreement, which does away with close to 99 per cent of customs duties, lifts restrictions in public procurement and opens up the financial services market.
The recently signed treaty is set to open a new chapter in the relations between the EU and Canada, one of the major markets for the European Union. In 2015, exports from the Old Continent amounted to EUR 35.2 billion, while imports from Canada into Europe reached EUR 28.3 billion. According to preliminary estimates made by the European Commission, thanks to CETA bilateral trade between the EU and Canada will grow by 23%, and the EU’s GDP will grow by EUR 12 billion a year on average.
The Agreement will also impact on logistics operators, who will feel its positive effects through increased shipment volumes as well as the development of the Transport, Freight and Logistics industry as a whole.
The Agreement creates opportunities for expanding the export potential of domestic enterprises which, since Poland’s accession into the European Union, have been growing dynamically. Thus, CETA offers Polish businesses a chance of international expansion into a somewhat exotic, economically and culturally, territory. The Agreement will also contribute to increasing air traffic, which will make it possible to open new flight connections, with added capacity for the purposes of cargo shipments. This will benefit logistics operators, who will be able to expand their service portfolios.
Michał Szerszeń, Head of Key Trade Lane Management Air&Sea at ROHLIG SUUS Logistics, is emphatic that – The key issue from the point of view of a Polish entrepreneur trading with Canada is the increased security. This is because a special unit is to be set up to make sure that transactions proceed safely and smoothly. Polish businesses intent on entering the Canadian market will therefore be facing a much lower business risk, which may boosts the chances of export expansion in this destination for small and medium-sized enterprises – he explains.
However, these are not the only advantages to logistics companies resulting from the economic and trade agreement between the European Union and Canada, as the arrangement also creates opportunities for growth for local ports and airports. According to forecasts, in the future we may expect not only a direct, transatlantic flight connection between Poland and Canada, but there are also growing chances for another direct flight to Toronto. The flight connection available in the summer season of 2016 may be reopened again in the spring and may even become a permanent fixture, increasing load capacity for cargo shipments. CETA should also benefit domestic ports – with it, a direct container line to Poland may be opened sooner.
Despite its many advantages, the agreement also gives rise to some controversy – with concerns focusing on the type and quality of imported goods, but, as Michał Szerszeń highlights – Speaking of CETA in the context of logistics, you need to separate the typical economic and commercial issues addressed by the document from the purely transport-related aspects, because logistics operators do not stand to lose on this contract.
ROHLIG SUUS Logistics as a comprehensive logistics operator with a global reach handles regular connections to/from Canada, including sea freight (both FCL and LCL), air freight and cargo projects. The company has offices across Poland and a network of proprietary customs agencies, enabling it to handle the entire supply chain. The operator also provides contract logistics services to its clients.