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?