Political, economic and other implications of Croatia's EU membership
1. Croatian Chamber of Economy–
Centre for EU
Political, economic and other
implications of Croatia’s EU
membership
Ružica Gelo, Director
Zagreb, April 25, 2013
3. Parties to CEFTA 2006 Agreement:
global perspective
World EU 27
CEFTA 2006
total
as % 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
GDP
million
USD
57.843.376 16.388.122 158.648 0,3 1,0
4. 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
6. CEFTA Benefits&Limitations
BENEFITS …
• 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)
7. Challenges in implementation
• All decisions must be made unanimously
• CEFTA Parties in different stages of
international integration
8. WTO membership SAA signed EU accession process
Albania 2000 2006
application 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 -
Montenegro
negotiations since
2005
2007
accession negotiations started in
2012
Serbia
negotiations since
2005
2008
application for membership
submitted in 2009
* Moldova concluded Partnership and Cooperation Agreement with the EU
Outlook into EU integration
12. Export of industrial goods from
Croatia to CEFTA
Albania =
Bosnia and Herzegovina =
Montenegro =
Makedonia =
Serbia ↑ (1.7.2013 to 1.1.2014)
Kosovo ↑
Moldova ↑
13. Export of industrial goods from
CEFTA to Croatia
Albania =
Bosnia and Herzegovina =
Montenegro =
Makedonia =
Serbia =
Kosovo =
Moldova =
14. 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%
Serbia
from 1. 7. 2013 to 1.1. 2014: 37,4 mil USD,
from 2014: 18,7 mil USD
from 1. 7. 2013 to 1.1. 2014:
36%, and from 2014: 18%
Kosovo 15 mil USD 100%
Moldova 0,2 mil USD 100%
15. Export of agricultural goods from
CEFTA to Croatia - customs
Albania
Bosnia and Herzegovina
Montenegro
Makedonia
Serbia
Kosovo
Moldova