Czechs want to block import of Polish food
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Polish exports of goods expressed in zloty from January to November 2020 increased by 1.5 percent y/y despite the crisis, to PLN 961 billion, and imports fell by 3.3 percent. As a result, the trade surplus reached PLN 51 billion. However, not everyone likes the achievements of companies located in Poland. Compared to the size of the economy, the main reasons for concern are the Czechs.
According to the IMF's forecasts for 2020, the GDP value of our southern neighbor should amount to CZK 5,572 trillion, i.e. approximately PLN 973 billion. Meanwhile, their minus in trade with Poland in 11 months of 2020 reached the level of as much as PLN 27.1 billion. Were it not for this deficit, the decline in their GDP in 2020 would be 3.7 percent, not forecasted 6.5 percent. And Poland, instead of a GDP decline of 2.8 percent. (preliminary GUS calculations) would be minus 4 percent.
The lower house of the Czech parliament last week passed legislation that stipulates that from next year 55 percent of products sold in Czech grocery stores with an area of over 400 sqm are to come from local producers. Six years later, it will be as much as 73 percent. The regulations are to apply to about a hundred products, including meat, dairy products, vegetables, and fruit.
The Czech media called it the "Czech Companies Act", but we should rather use the term "Act against Polish food". Why? At PLN 27.1 billion, our surplus in trade with the Czech Republic in 11 months 2020 was as much as PLN 3.1 billion, which was a surplus in food trade. Food exports amounted to over PLN 6 billion, which means that it did not change year on year despite the crisis.
