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FREE TRADE AGREEMENTS REPUBLIC OF CROATIA

FREE TRADE AGREEMENTS REPUBLIC OF CROATIA. Goran Marijanović Ekonomski fakultet ,Osijek. With the support of the European Commission. Economic profile of the Republic of Croatia AREA

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FREE TRADE AGREEMENTS REPUBLIC OF CROATIA

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  1. FREE TRADE AGREEMENTSREPUBLIC OF CROATIA Goran Marijanović Ekonomski fakultet ,Osijek With the support of the European Commission With the support of the European Commission

  2. Economic profile of the Republic of Croatia • AREA • 87,661 square kilometers56,594 square kilometers of land31,067 square kilometers of territorial seaCoast: 1,778 kmIslands: 1,185 (66 inhabited)Capital city: Zagreb (779,000 inhabitants) With the support of the European Commission

  3. POPULATION With the support of the European Commission

  4. ECONOMIC INDICATORS With the support of the European Commission

  5. ECONOMIC INDICATORS With the support of the European Commission

  6. ECONOMIC INDICATORS With the support of the European Commission

  7. ECONOMICS INDICATORS *estimate of Central Bureau of Statistics (DZS) **estimate of Ministry of Finance (MF) ***provisional data Sources: HNB, DZS, MF, FINA (Central Finance Agency) With the support of the European Commission

  8. TRADE IN GOODS 2004. With the support of the European Commission

  9. TRADE IN GOODS 2004. With the support of the European Commission

  10. MAJOR TRADE PARTNERS 2004. With the support of the European Commission

  11. MAJOR TRADE PARTNERS 2004. With the support of the European Commission

  12. LEGAL FRAMEWORK FOR FOREIGN TRADE • Completely harmonized with the WTO’s regulations • Trade Law have contributed to trade liberalization • Import and export of goods are free With the support of the European Commission

  13. LEGAL FRAMEWORK FOR FOREIGN TRADE • Exceptions are: - quotas or protective tariffs, in accordance with WTO regulations - antidumping duty- to prevent harmful damping - EUR 1- certificate of origin - certificates of sanitary, veterinary, phytopathological correctness (for food, animals, medicines etc.) With the support of the European Commission

  14. FREE TRADE AGREEMENTS Agreements of free trade between two or more countries are signed with the aim of: - removing customs and non-customs trade barriers - to boost the trade beetween the contract parties - to increase direct investment - to achieve better transparency in trade policies With the support of the European Commission

  15. PROGRAM OF CROATIAN GOVERNMENT 2000.-2004. Points: - enter new markets with Croatian products - export is the driving force behind economic growth - create the conditions within two years in which more than 80% of total foreign trade will be carried out under free trade principles With the support of the European Commission

  16. PROGRAM OF CROATIAN GOVERNMENT 2000.-2004. As a result of Program preferential trade arrangements have been made on the basis of free trade agreement with: - EU - CEFTA - EFTA - other European countries With the support of the European Commission

  17. SIGNED FREE TRADE AGREEMENTS With the support of the European Commission

  18. SIGNED FREE TRADE AGREEMENTS With the support of the European Commission

  19. SIGNED FREE TRADE AGREEMENTS Number of countries with which Croatia has signed and is applying free trade agreements: 37 With the support of the European Commission

  20. Free trade agreements with countries of West Balkans Albania • STATUS: Signed on 27 September 2002 in ZagrebIN FORCE: since 1 April 2003 MAIN CHARACTERISTICS: • MILDLY ASSYMETRICAL • CERTIFICATE OF ORIGINForm EUR 1 – issued by customs offices according to regulations on the origin of goods defined in the Protocol of the Agreement. With the support of the European Commission

  21. Free trade agreements with countries of West Balkans Albania • industrial products (HS 25 – 97)* • For products from Annex II of the Agreement, phasing out of customs duties over several years for the EXPORT of all products of Croatian origin into Albania: With the support of the European Commission

  22. Free trade agreements with countries of West Balkans • Albania • For products from Annex III of the Agreement, phasing out of customs duties over several years for the IMPORT of all products of Albanian origin into Croatia: With the support of the European Commission

  23. Free trade agreements with countries of West Balkans Albania • Agricultural and food products (HS 1 – 24) • For products from ANNEX A of the Protocol 1. of the Agreement 0% of customs duties for EXPORT of products of Croatian origin into Albania. • For products from ANNEX B of the Protocol 1. of the Agreement 0% of customs duties for IMPORT of products of Albanian origin into Croatia. With the support of the European Commission

  24. Free trade agreements with countries of West Balkans Source: Central Bureau of Statistics,Zagreb Data processing: Croatian Chamber of Economy, SMO TRADE IN GOODS CROATIA – ALBANIA - 000 USD With the support of the European Commission

  25. Free trade agreements with countries of West Balkans Bosnia and Herzegowina • STATUS: Signed on 19 December 2000 in ZagrebRatified: since 1 January 2001 – temporarily implementedPublished: Official Gazzette – International agreements (Narodne novine No. 9/01) • In force: 1 February 2005 (NN-MU No. 2/2005)MAIN CHARACTERISTICS: • ASSYMETRICAL • CERTIFICATE OF ORIGINForm EUR 1 – issued by customs offices according to regulations on the origin of goods defined in the Protocol of the Agreement. • LIBERALIZATION 0% of customs duties on IMPORT of all products of Bosnia-Herzegowina origin into Croatia Reduction of customs duties over several years for EXPORT of all goods of Croatian origin into Bosnia and Herzegowina With the support of the European Commission

  26. Free trade agreements with countries of West Balkans Trade in goods between Croatia and Bosnia and Herzegowina - mil. USD With the support of the European Commission

  27. Free trade agreements with countries of West Balkans • CEFTA countries:Croatia, Bulgaria, Romania • STATUS: Signed on 6 December 2002 in ZagrebIN FORCE: since 1 March 2003 (temporary implementation)Official Gazzette – International Agreements No. 4/03 • MAIN CHARACTERISTICS: • SYMETRICAL • CERTIFICATE OF ORIGINForm EUR 1 – issued by customs offices according to regulations on the origin of goods defined in the Protocol of the Agreement • No import tax refund – drawback (Article 15 of Protocol 7a.) • Partial pan-European compound duty and intra-CEFTA compound duty (Article 4 of Protocol 7a.) • LIBERALIZATION • industrial products (HS 25 – 97) • 0% customs duty for all industrial products in both directions With the support of the European Commission

  28. Free trade agreements with countries of West Balkans Trade in goods Croatia - Bulgaria - 000 USD With the support of the European Commission

  29. Free trade agreements with countries of West Balkans Macedonia • STATUS: Signed on 9 May 1997 in SkopjeIN FORCE: since 9 June 1997, - amendments on 1 July 2002.Official Gazzette – International Agreements No. 16/97MAIN CHARACTERISTICS: • SYMETRICAL • CERTIFICATE OF ORIGINForm EUR 1 – issued by customs offices according to regulations on the origin of goods defined in the Protocol of the Agreement • No import tax refund – drawback (Article 15 of Protocol 2.) • LIBERALIZATION • Industrial products (HS 25 – 97) • 0% customs duty for all industrial products in both directions With the support of the European Commission

  30. Free trade agreements with countries of West Balkans Trade between Croatia and Macedonia With the support of the European Commission

  31. Free trade agreements with countries of West Balkans Serbia and Montenegro • STATUS:  Free Trade Agreement between Croatia and Yugoslavia signed on 23 December 2002.                  Agreement between Croatia and Serbia and Montenegro on amendments of the above FTA signed on 14 January 2004.Published: Official Gazzette-International Agreements No. 4/2004Came into force: 1 July 2004 (NN-MU 5/2004) • MAIN CHARACTERISTICS • SYMETRICAL • CERTIFICATE OF ORIGINForm EUR 1 – issued by customs offices according to regulations on the origin of goods defined in the Protocol of the Agreement • LIBERALIZATION • Industrial products (HS 25 – 97) • Gradual reduction of customs duties over several years for industrial products in both directions (except for import of products listed in Annex I and Annex II of Protocol 1. of the Agreement within quantity restrictions (QUOTAS) With the support of the European Commission

  32. Free trade agreements with countries of West Balkans Trade between Croatia and Serbia and Montenegro - mil. USD With the support of the European Commission

  33. Free trade agreements with countries of West Balkans Overview of trade in goods between Croatia and countries of western Balkans (2004) mil. USD With the support of the European Commission

  34. CONCLUSION Problems of Croatian economy: - high external debt - balance of payments deficit With the support of the European Commission

  35. CONCLUSION • Bilateral Free Trade Agreements with the countries in the region have increased trade, but the possibilities are far from exhausted • Croatian trade with other countries in the region is for the most part insufficient or disproportional • These countries account for 19,7% of exports, but only 3,96% of Croatian imports With the support of the European Commission

  36. CONCLUSION Trade in goods with old EU members has remained at the level of about 60% for the past ten years, which is lower than in 1990. With the support of the European Commission

  37. CONCLUSION Solution to these problems lie in: increase of production increase of export promoting trade integrations and competitiveness by: - continuation and acceleration of reforms - strengthening the rule of law - decreasing the role of state in economic operations With the support of the European Commission

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