Transcript Free Trade Agreements - Republic of Croatia - Western

FREE TRADE AGREEMENTS
REPUBLIC OF CROATIA
Goran Marijanović
Ekonomski fakultet ,Osijek
With the support of the European Commission
With the support of the European
Commission
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• Economic profile of the Republic of Croatia
• AREA
• 87,661 square kilometers
56,594 square kilometers of land
31,067 square kilometers of territorial sea
Coast: 1,778 km
Islands: 1,185 (66 inhabited)
Capital city: Zagreb (779,000 inhabitants)
With the support of the European Commission
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POPULATION
2001
.000
TOTAL
4.437,460
WOMEN
52,00%
MEN
48,00%
With the support of the European Commission
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ECONOMIC INDICATORS
GDP, billion USD
2004
34,3*
GDP, per capita. USD
7.730**
Population, millions (census)
4,4
Industrial production, %
3,7
Inflation rate%
2,1
Unemployment rate %
18,2***
With the support of the European Commission
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ECONOMIC INDICATORS
Export, millions USD
2004
8.022,5
Import, millions USD
16.583,2
Balance of payments account, millions
USD
Government budget balance (% of GDP)
-366,7
Average monthly gross salary, USD
991,6***
Exchange rate HRK/USD
6,0355
With the support of the European Commission
-2,2**
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ECONOMIC INDICATORS
Exchange rate HRK/EUR
Discount rate of Croatian National Bank
(HNB), %, end of peroid
Foreign exchange reserves of HNB,
millions USD, end of period
Number of companies
Number of banks
No. of employees in corporate bodies
With the support of the European Commission
2004
7,4952
4,5
8.759
61.643
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1.085.159***
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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
7
TRADE IN GOODS 2004.
000 USD
%
EXPORT TOTAL
8,022.452
100,0
EUROPEAN COUNTRIES
7,077.547
88,2
EU countries
5,177.755
64,5
CEFTA countries
97.620
1,2
OTHERS
944.905
11,8
With the support of the European Commission
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TRADE IN GOODS 2004.
000 USD
%
IMPORT TOTAL
16,583.152
100,0
EUROPEAN COUNTRIES
13,947.511
84,1
EU countries
11,526.212
69,5
CEFTA countries
240.714
1,5
OTHERS
2,635.641
15,9
Source: Central Bureau of Statistics (DZS)
Data processing: Croatian Chamber of Economy
With the support of the European Commission
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MAJOR TRADE PARTNERS 2004.
EXPORT
Italy
Bosnia and Herzegowina
Germany
Austria
Slovenia
000 USD
1,831.237
1,154,065
895.134
756.570
601.010
%
22,8
14,4
11,2
9,4
7,5
Serbia and Montenegro
Total presented export
Total exports of Croatia
294.065
5,535.491
8,022.452
3,7
69,0
100,0
With the support of the European Commission
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MAJOR TRADE PARTNERS 2004.
IMPORT
Italy
Germany
Russia
Slovenia
Austria
France
Total presented import
Total imports
000 USD
2,842.145
2,567.629
1,205.258
1,179.496
731.752
731.752
9,651.394
16,583.152
With the support of the European Commission
%
17,1
15,5
7,3
7,1
6,8
4,4
58,2
100,0
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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
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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
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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
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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
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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
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SIGNED FREE TRADE
AGREEMENTS
Country
Starting Date
Note
Macedonia
9. 6. 1997.
-
Bosnia and Herzegowina
1. 1. 2001
-
European Union
(25 countries)
1. 1. 2002.
(for the new 10 EU
member states
Changes related to EU
enlargement are defined
by Protocol 7. of SAA
from 1. 5. 2004.)
EFTA
Switzerland Liechtenstein
Norway
Island
1. 1. 2002.
1. 1. 2002.
1. 4. 2002.
1. 8. 2002.
With the support of the European Commission
-
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SIGNED FREE TRADE
AGREEMENTS
Country
Starting Date
Note
Turkey
1. 7. 2003.
-
Serbia and Montenegro
1. 7. 2004.
-
Albania
1. 6. 2003
-
CEFTA
Bulgaria
Romania
1. 3. 2003.
-
Moldova
1. 10. 2004.
-
With the support of the European Commission
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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
19
Free trade agreements with
countries of West Balkans
Albania
• STATUS: Signed on 27 September 2002 in Zagreb
IN FORCE: since 1 April 2003
MAIN CHARACTERISTICS:
• MILDLY ASSYMETRICAL
• CERTIFICATE OF ORIGIN
Form 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
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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:
Year
2003.
2004.
2005.
2006.
2007.
1.1.2008.
Reduction of MFN
duties
to 80%
to 65%
to 50%
to 35%
to 20%
abolished
With the support of the European Commission
21
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:
Year
2003.
2004.
2005.
2006.
2007.
1.1.2008.
Reduction of
MFN duties
to 70%
to 55%
to 40%
to 30%
to 15%
abolished
With the support of the European Commission
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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
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Free trade agreements with
countries of West Balkans
TRADE IN GOODS CROATIA – ALBANIA
- 000 USD
EXPORT
IMPORT
TOTAL
2002
17.470
265
17,735
2003
27.486
672
28,158
2004
27.322
726
28,048
Indeks 2002./2004.
156,39
273,96
158,15
Year
Source: Central Bureau of Statistics,Zagreb
Data processing: Croatian Chamber of Economy, SMO
With the support of the European Commission
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Free trade agreements with
countries of West Balkans
Bosnia and Herzegowina
•
•
•
•
•
STATUS: Signed on 19 December 2000 in Zagreb
Ratified: since 1 January 2001 – temporarily implemented
Published: Official Gazzette – International agreements (Narodne novine No. 9/01)
In force: 1 February 2005 (NN-MU No. 2/2005)
MAIN CHARACTERISTICS:
ASSYMETRICAL
CERTIFICATE OF ORIGIN
Form 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
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Free trade agreements with
countries of West Balkans
Trade in goods between Croatia and Bosnia and Herzegowina
Export into B.-H.
Import from B.-H.
- mil. USD
Total
2003
892,4
231,2
1.123,6
2004
1.154,1
348,7
1.502,8
index
129,3
150,8
133,7
With the support of the European Commission
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Free trade agreements with
countries of West Balkans
•
•
•
•
•
•
•
•
•
•
CEFTA countries: Croatia, Bulgaria, Romania
STATUS: Signed on 6 December 2002 in Zagreb
IN FORCE: since 1 March 2003 (temporary implementation)
Official Gazzette – International Agreements No. 4/03
MAIN CHARACTERISTICS:
SYMETRICAL
CERTIFICATE OF ORIGIN
Form 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
27
Free trade agreements with
countries of West Balkans
Trade in goods Croatia - Bulgaria
- 000 USD
Year
EXPORT
IMPORT
2002.
11.763
15.381
27,144
2003.
23.443
42.247
65,690
2004.
28.221
50.552
78,773
With the support of the European Commission
TOTAL
28
Free trade agreements with
countries of West Balkans
Macedonia
• STATUS: Signed on 9 May 1997 in Skopje
IN FORCE: since 9 June 1997,
- amendments on 1 July 2002.
Official Gazzette – International Agreements No. 16/97
•
•
•
•
•
•
MAIN CHARACTERISTICS:
SYMETRICAL
CERTIFICATE OF ORIGIN
Form 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
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Free trade agreements with
countries of West Balkans
Trade between Croatia and Macedonia
mil USD
EXPORT
IMPORT
Total
2003.
70,5
74,5
145,0
2004.
74,1
105,2
116,7
156,7
190,8
131,6
index
With the support of the European Commission
30
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. 4/2004
Came into force: 1 July 2004 (NN-MU 5/2004)
•
• MAIN CHARACTERISTICS
• SYMETRICAL
• CERTIFICATE OF ORIGIN
Form 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
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Free trade agreements with
countries of West Balkans
Trade between Croatia and Serbia and Montenegro
Export
Import
- mil. USD
Total
2003.
190,7
76,7
267,4
2004.
294,1
140,7
434,8
index
154,1
183,4
162,5
With the support of the European Commission
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Free trade agreements with
countries of West Balkans
Overview of trade in goods between Croatia and countries of
western Balkans (2004)
mil. USD
Albania
Bosnia&H Bulgaria
Macedonia
Serbia&M Total
Export
27,32
1.154,10
28,22
74,10
294,10
1.577,84 8.022,45
Import
0,726
348,7
50,55
116,7
140,7
657,38
With the support of the European Commission
Total
Croatia
16.583,15
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CONCLUSION
Problems of Croatian economy:
- high external debt
- balance of payments deficit
With the support of the European Commission
34
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
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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
36
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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