Poland is a strategic partner of Japan, cherishing similar values such as freedom and the rule of law. It joined the ranks of NATO 25 years ago and those of the European Union 20 years ago. I was greatly moved by the warm-hearted demonstrations by many Polish people to support and take care of millions of Ukrainian refugees, displaced by the war following the Russian invasion in February 2022. Indeed, there is the same saying here and in Japan. Friend in need is a friend indeed.
A political shift took place on October 15 last year. In December 2023, after eight years, political power in Poland changed. The government of Prime Minister Donald Tusk was formed; a person with sufficient knowledge of Japan, who contributed to the conclusion of the Japan-EU Economic Partnership Agreement (EPA) and visited Japan multiple times, for example, during the G7 and G20 summits.
Mr. Tusk as President of the European Council from 2014 to 2019 played a big role in the European Union politics and decision-making process. Today, Poland’s international relations have not only improved within the EU, but also with Japan and the US. Worth mentioning is the fact that at the beginning of 2025, Poland will take over the six-month EU presidency and will chair the next summit of the Three Seas Initiative as well.
Today, we should never underestimate the huge economic potential that lies in Central and Eastern Europe (CEE), especially Poland. The GDP of the region has tripled in the last 20 years, with Poland accounting for 40% of the region’s total GDP. This places the country in 21st place in the world GDP ranking, for example higher than Taiwan or Thailand. Furthermore, the geopolitical situation in Europe has fundamentally changed due to Russia’s military aggression against Ukraine, and the European center of gravity is steadily shifting to the east where Poland plays a significant role).
Life in Poland and Polish-Japanese relations
On a day-to-day basis, I am happy here and enjoying my life in Poland. I am so lucky to live nearby Łazienki Królewskie Park, a historic site in the center of Warsaw. I have enjoyed my walk often appreciating peace and green. Every Sunday from May to September you can enjoy a Chopin concert by professional pianists. The precious Fryderyk Chopin Piano Competition in October in 2021 was one of my most cherished memories where young talented pianists from all over the world played beautiful Chopin pieces. Japanese pianists Mr. Sorita and Ms. Kobayashi got the second and fourth prize respectively.
In 2025 the next Fryderyk Chopin Piano Competition will be held here and this will be a great exciting music event among Japanese classical music enthusiasts. All in all, it can be said that the cultural exchange between Japan and Poland is thriving.
Japan has had long-standing friendly ties with Poland with which it established diplomatic relations in 1919.
The RH Crown Prince AKISHINO and the Princess visited Poland in 2019 on the occasion of the centenary of the establishment of diplomatic relations. The years 2020-2022 marked the centenary of the safe return of almost 900 the Siberian Orphans who suffered so badly in civil war-ridden Siberia rescued by Japanese Red Cross and taken good care by Japanese people.
This year marks the 30th anniversary of the establishment of the Polish-Japanese Academy of Information Technology in Warsaw, as well as the Museum of Japanese Art and Technology in Krakow, whose creation was aided by the eminent Polish director, Andrzej Wajda. However, culture is not everything, let us move on to economic relationships with Poland.
Economic relations between Japan and Poland
Since the conclusion of the Japan-EU EPA in 2019, total trade between Japan and Poland, as well as Japanese investment here, has increased 1.5 times, increasing to EUR 6,559 million in 2023 from EUR 4,181 million in 2018. Japanese investment value went up from EUR 831 million in 2018 to EUR 1,159 million in 2022.
Most Japanese investments in Poland can be seen in the manufacturing sector, particularly in its automotive sector such as Toyota. However, this certainly is not the only prosperous industry, as Japanese business experience, knowledge and advanced technology improve energy security, support decarbonization and diversification of energy sources, the three main goals Poland is facing today.
In October 2023, Yokogawa Electric and Orlen signed a cooperation agreement on an integrated management solution for the production of synthetic jet fuel. In April this year, Mitsui O.S.K. Lines concluded a charter party with Poland’s Gaz-System for a Floating Storage and Regasification Unit. As Polish power generation is 71% based on coal, there is potential here for investment in renewable energy, including offshore wind farms or hydrogen energy. It is also worth mentioning that Poland will allocate half of the approximately EUR 60 billion of funds from the European Union’s National Recovery Plan for the development of its energy sector.
Also, the construction of Poland’s first nuclear power plant will soon start in the north of the country. Therefore, there will be so many business chances for Japanese companies to take part in these new projects utilizing its know-how and advanced-technology including clean coal and nuclear energy areas.
In addition to energy, the railway sector has potential for Japanese business. In February 2024, the Ministry of Land, Infrastructure, Transport and Tourism, together with the Polish Ministry of Infrastructure, organized a railway business workshop attended by 15 companies from Japan.
Improving its railways is a critical priority in Poland’s upcoming infrastructural ambitions; these include both modernization (for which some EUR 76 billion has been allocated from the European Union’s Cohesion Fund) and the construction of High-Speed Railway to accompany plans to build the Central Communication Port (called CPK), an airport hub aspiring to become the largest in this part of Europe.
IT cooperation between our two countries is also developing. Fujitsu offers three thousand jobs and has its business solutions center here. The exchange of experience, know-how and best practice of personnel in the field is progressing, and it must be said that Poland has a rich cadre of highly qualified IT specialists.
For example, it is a Pole who is one of the co-founders of the globally known GPT chatbot. Moreover, Microsoft and Google have opened their data center and Research and Development Center in Warsaw. The development of digital-related industries in Poland is expected to continue.
Thanks to steadily rising wages (up by 10% from 2023), consumption is strong and ever growing in Poland. Poland’s GDP per capita at purchasing power parity is USD 44 000, which is as close as possible to the Japanese GDP per capita of USD 46 000.
Demand here is increasing, as can be seen, for example, from the success of the Uniqlo pop-up shop, which has enjoyed huge interest among local consumers. This, in turn, has resulted in the establishment of a permanent store in the country’s capital this September. On the other hand, the Japanese DyDo Company is trying to create a new success story by acquiring a Polish beverage producer.
The upcoming Expo 2025, Osaka, Kansai, will be a wonderful opportunity for strengthening of Japanese-Polish business relations.
The upcoming Expo 2025, Osaka, Kansai, will be a wonderful opportunity for strengthening of Japanese-Polish business relations. The Poland Pavilion will be present there, where creative entrepreneurs and innovators from various industries will present themselves in the best possible light. I would like to invite everyone to visit the Polish Pavilion to experience the wave of innovative ideas and energy of Poland and to enjoy the beautiful music of Chopin.
Support for Ukraine
Poland has become the most important hub in supporting Ukraine. Poland’s military and humanitarian aid to Ukraine is also quite substantial. Japan supports Ukraine together with Poland and like-minded countries. To date, Japan has pledged a total of around USD 12.1 billion in support, which is provided bilaterally with JICA and multilaterally through UN humanitarian organizations and World Bank.
The Japanese Government has provided bilateral ODA grassroots grant assistance to NGOs and local governments in the form such as the renovation of support facilities, providing school buses or equipment to schools. I have been advising Japanese companies to find good Polish partners for rehabilitation and reconstruction of Ukraine.