WBJ: How would you describe the current state of trade and business relations between Poland and Canada?

Bernhard L. Otterstein: The economic relations between Poland and Canada are strong, and have been growing steadily over the past few decades, with a marked increase in bilateral trade and investment over the past several years since the provisional implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) in 2017. From that moment bilateral trade between our two countries has doubled to about CAD 4.6 billion or PLN 12.5 billion. The trade balance significantly favors Poland. 

And diplomatic and alliance relations? Can we talk about the strategic role of both countries?

Both countries recognize the strategic nature of their transatlantic relationship. As allies with historic ties dating back to the pre-communist era, their partnership has steadily grown in significance and scale since the fall of communism. This growth is reflected in their strong cooperation within NATO and the OECD, particularly since the 1990s. 

Besides their bilateral economic, political, and military relations, both countries hold influential roles within their respective economic alliances: for Poland, the European Union – which it currently presides over – and for Canada, the G7 – which it will chair in 2025, the 50th anniversary of the group. These leadership positions offer additional opportunities for cooperation within a broader multilateral context. 

You’ve mentioned the 2017 CETA agreement that spurred bilateral trade. Since then there have been geopolitical tensions that triggered global inflation and supply chain disruptions. Has that affected trade between Poland and Canada?

The positive nature of the Polish-Canadian relationship alluded to above provides an excellent basis for the dynamically growing economic relations between both countries, which are further inspired through mutual recognition of capabilities, economic specializations, and available resources and expertise on both sides, as well as the significant business opportunities that arise from these. Further, many aspects of the business relationship between the two countries have a national security or energy security theme at their heart, often within the multilateral context of allies and partners working together from both sides of the Atlantic and beyond. 

As such, the bilateral relationship is not directly affected to any significant degree by global economic fluctuations or geopolitical tensions. However, these events underscore both countries’ commitment to deepening cooperation across many facets of their strategic partnership. 

Any particular examples?

Well, in mid April, during a meeting between the Polish and Canadian Ministers of Finance, both countries committed to the stability of their economic relations, and to work together to contribute to greater predictability and security in all areas of mutual interest, including defense, trade and investment. 

This comes following a visit by the Canadian Prime Minister to Poland earlier this year, during which he and the Polish Prime Minister signed the Canada-Poland Nuclear Energy Cooperation Agreement, emphasizing the importance of the energy sector in the two countries’ mutual relations, and an area in which Canada is increasingly playing a central role in Poland. 

And recent moves from the US administration? How could the US tariffs on Canada, EU affect Polish-Canadian relationship? 

US tariffs, insofar as they may be a significant factor following the already-announced negotiations between the Trump Administration and the EU during their 90-day grace period, as well as Canada’s intent to reaffirm the validity and scope of its own partial free trade agreement with the United States and Mexico, are not the biggest issue for the Polish-Canadian economic relationship, as they are only indirectly affected by US tariffs. 

That said, every challenge brings with it new opportunities, and one could only surmise that if either country loses certain trade or investment opportunities with the United States due to tariffs or other trade barriers, then their mutual business perspectives could become more attractive.

At any rate, this remains to be seen, and it is too early to make wide predictions as to the future of either Polish-Canadian or other bilateral trade relationships as long as the US tariff and other issues are not settled. 

It should also be noted that many of the aspects of the trade and investment relationship between Canada and Poland are in areas not likely to be strongly influenced by US tariffs, and a number of the business projects between the two countries have key US components, such that they are quite unlikely to become the subject of US economic trade barriers. 

Do you see any positive sides of Trump policy in terms of boosting Canada-Poland trade and investment? 

Once again, it is too early to tell. But in general, any time one door closes another one may open, and it could only be presumed that new opportunities between Canada and Poland would arise should the EU or Canada be adversely affected by US tariffs for any length of time. 

Such opportunities could include exploring alternative markets and trade routes, establishing production facilities in new jurisdictions, and reassessing where value is added to products or services in order to influence their country-of-origin—and therefore, their tariff classification.

It is also worth noting that the opportunities under CETA could become even more attractive and significant to both sides. In this context, Canadian-EU trade and investment—including in services and public tenders—could experience a true renaissance. This may well be an additional argument to those European countries that have not yet ratified CETA, including Poland, to encourage their legislatures to pass CETA into law in order to fully partake in the distinct business advantages that it offers. 

If you had to name just one sector that has the greatest potential for Polish-Canadian cooperation, you would mention… 

While I believe that it is difficult to point to only one sector of great importance and potential in the bilateral relationship—and key areas include aerospace, defense, energy and IT/cybersecurity—I would have to point to energy security as the one sector with the greatest significance for Poland, and therefore for its cooperation with Canada. 

Within the area of energy security, Canada can play a critical role for Poland, particularly in the nuclear energy sector. It so happens that both the first large nuclear reactor project currently being developed by Westinghouse in Poland, as well as the innovative yet very promising small modular reactor (SMR) nuclear project, have a significant Canadian component to them. The Polish-Canadian bilateral economic and strategic relationship once again stands tall in this sector through the participation of Ontario Power Generation, Laurentis Energy Partners, GE Hitachi, Orlen Synthos Green Energy and others, along with a few closely-allied companies and institutions from several countries. All of this is to ensure the success of nuclear energy in Poland and to make a lasting contribution to the country’s energy security.

In addition, Canadian companies such as CGI are leading the way in building a central energy market information system in Poland, providing greater transparency, efficiency and predictability to the domestic energy market. And on Poland’s Baltic Sea coast, Canada’s Northland Power – in a joint venture with Poland’s PKN Orlen energy conglomerate under the name of Baltic Power – is building one of the largest offshore wind projects in Europe. Other Canadian companies are also involved in the sector in Poland, especially in renewable energy (such as TIU Canada) and energy sector infrastructure and support systems (Victor Energy, SUM). 

You’ve mentioned aerospace, defense, energy and IT/cybersecurity as key industries for Polish-Canadian business cooperation. Could you give us examples of Canadian engagement in those sectors? 

As said, other key industries for Canadian companies in Poland include aerospace and high-precision manufacturing and servicing (Pratt & Whitney, Barnes Aerospace), engineering (Hatch, Calian), defense (CAE, Galvion), IT and cybersecurity (CGI, Blackberry, Calian, SOTI), food processing (McCain), retail (Circle K), healthcare and pharma (InterHealth Canada, Medica91, Bausch Health).

And Polish companies in Canada?

Key sectors for Polish investment and economic activity in Canada include mining and resources (KGHM, which has made Poland’s largest foreign direct investment via Canada), oil and gas (Orlen Upstream), as well as gaming and IT (CD Project Red). 

What are the main challenges or risks that Canadian companies face when entering the Polish market? 

Some critical and strategic sectors in Poland are still quite heavily influenced by state actors or other domestic Polish interests. These entities can exhibit monopolistic and protectionist tendencies, in some cases creating a challenging investment climate. 

Establishing strong working relationships with appropriate stakeholders, including government officials and local regulators and partners, is crucial for companies and investors to navigate these challenges and mitigate the impact of monopolistic or other practices that could negatively affect Canadian business interests in Poland. 

How important is the Polish diaspora in Canada in strengthening business ties and promoting Polish products and services? 

It has and can continue to play an important role, both in terms of direct involvement in bilateral business ventures, as in background support and the building of goodwill. Canada has a population of approximately one million people of Polish heritage, which equates to about 2.5-percent of Canada’s population. 

Canadians of Polish heritage have a strong sense of both Canadian and Polish identity, are often professionally active and respected in the Canadian community, and at once are generally supportive of Polish initiatives in Canada, including towards artistic endeavors and the launch of new products introduced onto the market from Poland. 

In the Greater Toronto Area, there are supermarkets that almost exclusively offer food and beverage products imported from Poland, such that a visitor could have the impression that he or she might be in a similar store in Poland.

Key figures:

Note: The figures below reflect the most recent available data (trade statistics are from 2024; investment data is from 2023).

Bilateral Trade

In 2024, bilateral merchandise trade between Canada and Poland reached CAD 4.6 billion. Canadian exports to Poland totaled $1.1 billion while Canadian imports from Poland amounted to $3.5 billion. In 2023 bilateral trade in services between Canada and Poland totaled $438 million with $231 million in Canadian services exports to Poland and $207 million in services imports from Poland.

Investment

Canadian direct investment in Poland totaled $835 million in 2023. Approximately 50 Canadian companies have operations in Poland, employing more than 15,000 people. Canadian investments in Poland are in sectors including advanced manufacturing (aerospace, automotive), healthcare, ICT, renewable energy, agriculture, engineering, retail, and pharmaceuticals. 

Polish direct investment in Canada totaled nearly $5.2 billion in 2023. Polish companies have made significant investments in mining—most notably through KGHM, the largest Polish investor in Canada—as well as in oil and gas, and the ICT industry, including software and game development.

Source: Embassy of Canada to Poland