CEFTA Agreement in effect in Croatia

The Agreement of free trade in southeast Europe - CEFTA was put in effect yesterday (August 22, 2007) in Croatia. It will be applied in six countries members, but not in Serbia and Bosnia and Herzegovina. CEFTA Agreement, which regulates trade relations between the countries in the region, will be applied in Croatia, Albania, Montenegro, Macedonia, Moldova and on the territory of Kosovo that is under jurisdiction of United Nations.

Serbia and Bosnia and Herzegovina, which are also the most important trade partners of Croatia, have not ratified that agreement in their parliaments yet. The main negotiator for CEFTA on behalf of Croatia, Vladimir Vranković, says that businessmen will now have greater security when appearing on the markets on the other countries members of CEFTA.

As far as Serbia is concerned, Croatia's objections were related to duties and other taxes on export of Croatian cigarettes, oil and fruit juices, while BIH unilaterally increased duties on import of meat. According to the stipulated procedure, such disputes will be resolved by the common board with the help of CEFTA Secretariat, of which headquarters will be in Brussels.

- CEFTA Agreement will make it possible for Croatian companies to participate in the auctions for large construction works in the process of public procurements. So far, priority in public procurements in the other CEFTA countries has been given to the companies from the country that announced public tender for large construction works. After transition period, that privilege of national companies should be abolished - Vranković explained.