European countries have great capacities for economic cooperation with Iran, and while Iran can have a serious participation in supplying Europe’s energy needs, it would also be possible for the country to benefit from such relations for attracting investment and transferring technical knowledge and supplying its required machinery.
On the other hand, European countries are looking for new markets due to market saturation in their region and are fiercely competing with each other to develop their business and economic activities, for which the 500-million market in the West and Central Asia region is particularly attractive.
Iran, as a stable and safe country with a population of eighty-three million, is located in the heart of this market of five hundred million, which has the following comparative advantages:
- Neighborhood with fifteen countries through land and water borders
- Having huge oil and gas resources
- Having high quality and cheap raw materials
- Having educated and specialized manpower
- Existence of cheap labor
- Low costs of transferring materials and manufactured goods to neighboring countries due to geographical location
On the other hand, Poland, being located in the center of Europe, seems to be a suitable point for Iranian traders to enter European markets. In addition, more than five hundred years of historical relations between the two countries and good memories of Poles from Iran considering the country’s support for Poland’s independence, as well as sheltering of more than 120,000 Poles during World War II in Iran, have provided a good cultural and political context for the development of relations with this country.
Another feature of Poland is that this country’s economic conditions are complementary to the economic situation in Iran. Poland needs energy resources, oil products, petrochemical products, steel and copper and other metals, building stones, nuts, and some agricultural products, etc., and in return, the country is a major producer of mining and agriculture machinery, metal furnaces, wagons and locomotives, electric buses, medicine, and medical equipment, etc., which provide favorable conditions for the further development of economic relations between the two countries.
Iran can export its petrochemical products to the whole of Europe through Poland and replace Saudi Arabia in this market.
The country can also be the best alternative to Russia in supplying oil and gas to this country, especially since the characteristics of the Iranian oil are compatible with Polish refineries, and on the other hand, due to sharp political differences between Poland and Russia, they seek to reduce energy dependence on that country.
In the Polish mining sector, the country is a designer and manufacturer of mining machinery and has advanced technology in the field of exploration and extraction at a depth of 1,500 meters. This situation for Iran, which has more than one million square kilometers of land suitable for mineral exploration, and is trying to cut reliance on oil and become an oil-free economy, can provide very favorable conditions for cooperation.
Regarding the agricultural machinery, Iran is implementing serious strategies for mechanization of the agriculture sector, and Poland can be a great partner to supply the required machinery, and this cooperation can lead to joint investment and factories producing these machines in Iran. Even considering the great needs of the region, Iran can also become an exporter of such machinery in this very attractive market.
In the metal industry, Poland can also be a good partner for Iran, the presence of metal ores and steel industries in the Islamic Republic and the ability to produce furnaces and machinery needed by this industry in Poland, provides a good opportunity for cooperation and joint investment.
As for the railway transport sector, both in the west-east corridor and the north-south corridor, Poland can have very effective cooperation with Iran and be a good partner for the country in providing rail, and production lines for wagons and locomotives. Polish wagon and locomotive factories are ready to invest and set up production lines with the participation of the Iranian side in Iran. This cooperation would be very significant since the development of the railway infrastructure, is one of the important priorities for Iran considering its strategic position, which is located at the intersection of the North-south and East-west corridors.
Another economic feature of Iran and Poland is the possibility of cooperation and participation in the production of various wood and metal products in Iran and the re-export of the mentioned products to countries in the region, which will both generate income for the two sides and help create jobs, especially in free zones.
The existence of advanced dairy industries in Poland and the saturation of the European market have doubled Iran's attractiveness for Polish dairy companies to both invest in joint ventures with Iranian parties and to consider exporting products produced in Iran to neighboring countries.
Furthermore, given the advanced capabilities of Poland in the production of medicine and medical equipment and Iran’s production of pharmaceuticals at very competitive prices, cooperation between the two countries in this sector can be another important subject of economic diplomacy between the two countries.
In the field of animal husbandry, Poland can be a good partner for Iran and play a serious role in the development of this sector in Iran by transferring modern technologies and the supply of related machinery.
The possibility of cooperation in the defense industry is another important issue of economic relations between the two countries that need to be pursued and given serious attention.
Poland can also be a good market for exporting technical and engineering services and the medical sector. Of course, this cooperation requires further consideration and the signing of relevant agreements.
Scientific and academic cooperation is another suitable field in Iran-Poland relations, and linking this cooperation with industry, mining, medicine, and agriculture will lead to desirable results.
In general, Poland can be a gateway for Iran to enter the European market, and the Islamic Republic can reciprocally provide Poland with access to the very attractive market with a five hundred million population in the region.
By Ramin Mehmanparast
First Published in Tehran Times
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