Croatian Chamber of Economy– Centre for EU
Political, economic and other implications of Croatia’s EU
membership
Ružica Gelo, Director
Zagreb, April 25, 2013
Content:• CEFTA objectives
• CEFTA achievements
• Implication of Croatia’s accession
Parties to CEFTA 2006 Agreement: global perspective
World EU 27CEFTA 2006
totalas % of world
as % of EU 27
Territory km2 148.940.000 4.324.782 298.271 0,2 6,9
Population million 6.874,3 502,1 27,0 0,4 5,9
GDPmillion USD
57.843.376 16.388.122 158.648 0,3 1,0
Objectives of CEFTA 2006
• Establish a free trade area in conformity with WTO rules and procedures
• Consolidate in a single agreement the existing level of trade liberalisation
• Improve conditions for investment
• Eliminate barriers to and distortions of trade
• Gradually open gover. procurement markets
• Provide protection of intellect. property rights
• Provide effective procedures for implementation of the agreement
WTO Membership
Stabilisation and Association Agreements (SAA)
CEFTA Parties
“CEFTA Process”
CEFTA Benefits&LimitationsBENEFITS …• Trade within CEFTA increased,
however, share of trade with other partners much higher (EU) and is likely to increase
• Cumulation of origin (within Cefta and outside)
• CEFTA inspired other types of cooperation between countries (eg. Cooperation of chambers of commerce)
• Better environment for foreign direct investments
… LIMITATIONS• CEFTA is primarily a trade
agreement and
• CEFTA is not linked to other issues such as movement of people or countries’ relations to other partners (eg. EU)
Challenges in implementation
• All decisions must be made unanimously
• CEFTA Parties in different stages of international integration
WTO membership SAA signed EU accession process
Albania 2000 2006application for membership
submitted in 2009
Bosnia and Herzegovina
negotiations since 2003
2008 -
Croatia 2000 2001 membership at July 1, 2013
Kosovo - - -
Macedonia 2003 2001 candidate since 2005
Moldova* 2001 1998 -
Montenegronegotiations since
20052007
accession negotiations started in 2012
Serbianegotiations since
20052008
application for membership submitted in 2009
* Moldova concluded Partnership and Cooperation Agreement with the EU
Outlook into EU integration
Intra CEFTA Trade (000 €)
Index of trade grow (2011/2009)
Share of agriculture in total intra-CEFTA trade in 2011 (%)
Export of industrial goods from Croatia to CEFTA
Albania =
Bosnia and Herzegovina =
Montenegro =
Makedonia =
Serbia ↑ (1.7.2013 to 1.1.2014)
Kosovo ↑
Moldova ↑
Export of industrial goods from CEFTA to Croatia
Albania =
Bosnia and Herzegovina =
Montenegro =
Makedonia =
Serbia =
Kosovo =
Moldova =
Export of agricultural goods from Croatia to CEFTA
Value of affected ag. export Share in ag. export
Albania 5,9 mil USD 46%
Bosnia and Herzegovina
143 mil USD 33%
Montenegro 5,8 mil USD >20%
Makedonia 24 mil USD >60%
Serbiafrom 1. 7. 2013 to 1.1. 2014: 37,4 mil USD,
from 2014: 18,7 mil USDfrom 1. 7. 2013 to 1.1. 2014: 36%, and from 2014: 18%
Kosovo 15 mil USD 100%
Moldova 0,2 mil USD 100%
Export of agricultural goods from CEFTA to Croatia - customs
Albania
Bosnia and Herzegovina
Montenegro
Makedonia
Serbia
Kosovo
Moldova
with exception of:
• Sugar• Wine• Baby beef• Some fish
...and veterinary-phytosanitary rules
• Establishments• Milk quality• Animal welfare• Residuas• Disease• ...
Establishments: Case of Croatia
Veterinary BIPS- Current situation
Veterinary BIPS – After accesion
Questions?