ASEAN Free Trade Area (AFTA)

Central European Free Trade Agreement (CEFTA)

Greater Arab Free Trade Area (GAFTA)

Pacific Island Countries Trade Agreement (PICTA)

South Asia Free Trade Agreement (SAFTA)

North American Free Trade Agreement (NAFTA)

FREE TRADE FREE TRADE AGREEMENTAGREEMENT

Central European Free Trade Central European Free Trade AgreementAgreement Trade agreement signed by Central European

and South Eastern Countries Covers a wide range of trade-related cooperation

including

- Reduction of tariff barriers - Create favorable conditions for cooperation at

the company level, transportation and infrastructure

- Harmonization of energy systems and telecommunication networks

-Free mobility of Capital and Labor.

Free Trade zone by December 2010.

CEFTA AGREEMENTCEFTA AGREEMENT

PARTIES OF AGREEMENT JOINED LEFT

Poland 1992 2004

Hungary 1992 2004

Czechoslovakia 1992 2004

Slovenia 1996 2004

Romania 1997 2007

Bulgaria 1999 2007

Croatia 2003 —

Macedonia 2006 —

Albania 2007 —

Bosnia and Herzegovina 2007 —

Moldova 2007 —

Montenegro 2007 —

Serbia 2007 —

UNMIK-Kosovo 2007 —

ALBANIA BOSNIA AND HERZEGOVNIA

CROATIA MOLDOVA

SERBIA UNMIK/KOSOVO

CURRENT MEMBERS

MACEDONIA

MONTENEGRO

MEMBERSHIP CRITERIAMEMBERSHIP CRITERIA

Membership with WTO

Signing of an Association Agreement with EU

Consent form of all Cefta States

Organisation Structure and Organisation Structure and WorkingWorking

OFFICIAL BODY FUNCTIONS

The Joint Committee Supervise and administer the implementation of the Agreement

Sub-committee on Agriculture and Sanitary and Phytosanitary Issues

Facilitate trade in agricultural products within the region

Sub-committee on Customs and Rules of Origin

Simplify and facilitate customs procedures, stimulate rapid implementation of the common rules of origin in all the Parties

Sub-committee on Technical Barriers to Trade and Non Tariff Barriers

To identify, review and propose measures for elimination of technical barriers to trade and non-tariff barriers among the parties.

CEFTA Secretariat Provide technical and administrative support to the Joint Committee, to any sub-committee, expert group or any other body established by the Joint Committee

OBJECTIVES OF CEFTAOBJECTIVES OF CEFTA

Consolidate in a single agreement trade liberalisation achieved through the network of bilateral free trade agreements

Promote Investment including FDI

Expand trade in goods and services

Foster investment by means of fair, clear, stable and predictable rules

Eliminate barriers to trade

Objectives contd..Objectives contd..

Provide fair conditions of competition affecting foreign trade and investment

Protection of Intellectual property rights

Includes clear and effective procedures for dispute settlement

Provides an excellent framework for the parties to prepare for EU accession

General Obligation General Obligation Applicable to Trade In All Applicable to Trade In All GoodsGoods

Quantitative RestrictionsCustom Duties on ExportsCustom Duties on ImportsCustom FeesConcessions and Agricultural

PoliciesSanitary and Phytosanitary

Measures

New Trade TopicsNew Trade TopicsInvestment

Services

Government procurement

Protection of Intellectual Property Rights

RELATION WITH EUROPEAN RELATION WITH EUROPEAN UNION UNION

CEFTA has served as a preparation for full EU membership

Poland, Czech Republic, Hungary, Slovakia and Slovenia joined EU on 1st May 2004

Croatia expected to join the EU by 2012

A large proportion of CEFTA foreign trade is with EU countries

KEY ECONOMIC AND TRADE KEY ECONOMIC AND TRADE

INDICATORS(2008 INDICATORS(2008))COUNTRIES/PARAMETERS

EXPORTS TO CEFTA( IN € MN)

IMPORTS FROMTO CEFTA( IN € MN)

GDP IN € MN

CEFTA EXPORTS TO GDP RATIO( IN %)

ALBANIA 125 298 8364 1.5

BOSNIA AND HERZEGOVANIA

1529 2916 12649 12.1

CROATIA 2253 1051 47165 4.8

MACEDONIA 922 511 6477 14.2

MONTENEGRO

159 1227 3393 4.7

SERBIA 2458 1216 34055 7.2

KOSOVO 93 705 3804 2.4

BENEFITSBENEFITSReducing/eliminating customs duties

Introducing disciplines on non-tariff barriers to trade among CEFTA 2006 members.

Provisions regulating relationships among its members in new trade areas

Application of the rules of WTO

Abolishing of export subsidies

ISSUESISSUES

THANK YOU