CEFTA 2006 Renata Vitez

Director

Regional Cooperation CouncilRegional Cooperation Council

WESTERN BALKANS IN 2020WESTERN BALKANS IN 2020

Sarajevo, 24-25 February 2010Sarajevo, 24-25 February 2010

CEFTA 2006

CEFTA 2006 consolidates 32 previous bilateral free trade agreements in South East Europe. The Agreement on Amendment to and Accession to the Central European Free Trade Agreement (CEFTA 2006)

was signed in Bucharest in December 2006. An agreement called CEFTA implies … the Parties “aim … to accede to the EU and that CEFTA is a proven route to

accession … (Preamble)… because intra-regional free trade is part of pre-accession process to EU (SAAs).

The modernised CEFTA is the first internationally binding treaty signed by the SEE countries themselves; successful implementation is vital both economically and politically.

CEFTA Secretariat

WTO Membership

Stabilisation and Association Agreements (SAA)

CEFTA Parties

“CEFTA Process”

CEFTA Secretariat

CEFTA 2006 provides …

Full conformity with WTOFree trade up-front in all industrial products and many agricultural products (> 90%)Modern provisions on trade-related issuesEvolutionary clauses on new trade issuesMechanisms for implementation and dispute settlementHarmonisation with EU acquis and a pre-accession track

CEFTA Secretariat

Intra-regional exports have increased substantially since 2003

CEFTA Secretariat

Source: The World Bank

The impact of the crisis on trade flows

CEFTA Secretariat

* World Bank, data for Albania, Montenegro and UNMIK/Kosovo are for January-March period, and data for BiH, Croatia, FYR Macedonia and Serbia for January-April period

CEFTA Trade Dynamics, 2009/2008 (I-VI)

CEFTA Party TRENDS IN INTRA-REGIONAL TRADEIn %

Trends in Total CEFTA Trade2009 (2008) in %

AGRICULTURE non-AGRICULTURE

IMPFrom CEFTA

EXPTo CEFTA

IMPFrom CEFTA

EXPTo CEFTA

IMP EXP

Albania 52.14UP

8.47down

27.36down

34.71down

7.1(7.0)

26.3(6.1)

Bosnia and Herzegovina

0.7UP

10.26UP

44.1down

24.3down

26.3(29.2)

37.9(36.6)

Croatia 30.4UP

11.3UP

33.7down

40.7down

4.8(4.7)

20.1(23.9)

Macedonia 8.3down

3.8down

27.2down

100down

22.4(11.1)

5.2(34.5)

Moldova 7.7down

41.89UP

56.3down

78.9down

0.29(0.38)

0.74(0.73)

Montenegro10.4

down32.8

down39.8

down33.9

down53.4

(49.2)40.2

(34.6)Serbia 4.3

down2.0

down41.5

down31.1

down7.2

(7.8)36.1(33)

UNMIK/Kosovo

85.8down

45.4down

90.5down

71.0down

4.8(46.4)

25.0(37.4)

Sources: CEFTA National Statistics Offices

CEFTA Secretariat

Priorities of the Chairmanship of Serbiain 2010

The Serbian Chairmanship in 2010 focuses on the following priority areas:• Potential launching of liberalisation in services, • Creating conditions to intensify investment, • Conducting the first review on public procurement legislation and• The first review on competition rules and practices.

The priorities were indorsed by the Joint Committee in Podgorica on 29 October 2009.

CEFTA Secretariat

2nd Year of implementation

Chairmanship programmes are ambitious.

Results in 2009 are encouraging, especially the agreed liberalisation in agricultural trade.

Concrete initiatives/projects have been launched to support the implementation of respective Chairmanship priorities.

Co-operation with regional and international partners is excellent.

“CEFTA Week” involved over 140 participants in a variety of CEFTA related seminars and workshops.

Chairmanship programmes are ambitious.

Results in 2009 are encouraging, especially the agreed liberalisation in agricultural trade.

Concrete initiatives/projects have been launched to support the implementation of respective Chairmanship priorities.

Co-operation with regional and international partners is excellent.

“CEFTA Week” involved over 140 participants in a variety of CEFTA related seminars and workshops.

Differences in pace and status in the EU accession process is perceived as impediment to further liberalisation.

Due to difficult economic situation further protectionist pressures can be expected.

Participation of UNMIK/Kosovo in CEFTA structures remains an issue.

Budget restrictions may affect participation in joint projects /activities.

Differences in pace and status in the EU accession process is perceived as impediment to further liberalisation.

Due to difficult economic situation further protectionist pressures can be expected.

Participation of UNMIK/Kosovo in CEFTA structures remains an issue.

Budget restrictions may affect participation in joint projects /activities.

CEFTA Secretariat

CEFTA Secretariat

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