CEFTA
Central European Free Trade Agreement
Trade agreement signed by Central European and South Eastern Countries Covers a wide range of trade-related cooperation including - Reduction of tariff barriers - Create favorable conditions for cooperation at the company level, transportation and infrastructure - Harmonization of energy systems and telecommunication networks -Free mobility of Capital and Labor.
Free Trade zone by December 2010.
CEFTA AGREEMENT
Signed by Visegrad countries Poland, Hungary, Czech, Slovak Signed on 21st December, 1992 in Kakrow, Poland It entered into force since July 1994
Original Agreement
CEFTA 2006
Cefta extended to cover rest of the South East European countries Agreement came into effect from 2007 Areas covered CEFTA- Services, Investment, Government Procurement, Intellectual Property Rights
PARTIES OF AGREEMENT
Poland Hungary Czechoslovakia Slovenia Romania Bulgaria Croatia Macedonia Albania Bosnia and Herzegovina
JOINED
1992 1992 1992 1996 1997 1999 2003 2006 2007 2007
LEFT
2004 2004 2004 2004 2007 2007
Moldova Montenegro
Serbia UNMIK-Kosovo
2007 2007
2007 2007
CURRENT MEMBERS
ALBANIA
BOSNIA AND HERZEGOVNIA
MACEDONIA MOLDOVA
CROATIA
MONTENEGRO SERBIA UNMIK/KOSOVO
MEMBERSHIP CRITERIA
Membership with WTO Signing of an Association Agreement with EU Consent form of all Cefta States
Organisation Structure and Working
OFFICIAL BODY The Joint Committee Sub-committee on Agriculture and Sanitary and Phytosanitary Issues Sub-committee on Customs and Rules of Origin FUNCTIONS
Supervise and administer the implementation of the Agreement Facilitate trade in agricultural products within the region
Simplify and facilitate customs procedures, stimulate rapid implementation of the common rules of origin in all the Parties To identify, review and propose measures for elimination of technical barriers to trade and nontariff barriers among the parties. Provide technical and administrative support to the Joint Committee, to any sub-committee, expert group or any other body established by the Joint Committee
Sub-committee on Technical Barriers to Trade and Non Tariff Barriers CEFTA Secretariat
OBJECTIVES OF CEFTA
Consolidate in a single agreement trade liberalisation achieved through the network of bilateral free trade agreements Promote Investment including FDI Expand trade in goods and services Foster investment by means of fair, clear, stable and predictable rules Eliminate barriers to trade
Objectives contd..
Provide fair conditions of competition affecting foreign trade and investment
Protection of Intellectual property rights Includes clear and effective procedures for dispute settlement Provides an excellent framework for the parties to prepare for EU accession
General Obligation Applicable to Trade In All Goods
Quantitative Restrictions Custom Duties on Exports Custom Duties on Imports Custom Fees Concessions and Agricultural Policies Sanitary and Phytosanitary Measures
New Trade Topics
Investment Services Government procurement
Protection of Intellectual Property Rights
RELATION WITH EUROPEAN UNION
CEFTA has served as a preparation for full EU membership
Poland, Czech Republic, Hungary, Slovakia and Slovenia joined EU on 1st May 2004
Croatia expected to join the EU by 2012
A large proportion of CEFTA foreign trade is with EU countries
KEY ECONOMIC AND TRADE INDICATORS(2008)
COUNTRIES/ PARAMETER S EXPORTS TO CEFTA( IN MN) IMPORTS FROMTO CEFTA ( IN MN) 298 GDP IN MN CEFTA EXPORTS TO GDP RATIO( IN %) 1.5
ALBANIA
125
8364
BOSNIA AND HERZEGOVA NIA
CROATIA MACEDONIA MONTENEG RO SERBIA KOSOVO
1529
2916
12649
12.1
2253 922 159 2458 93
1051 511 1227 1216 705
47165 6477 3393 34055 3804
4.8 14.2 4.7 7.2 2.4
BENEFITS
Reducing/eliminating customs duties Introducing disciplines on non-tariff barriers to trade among CEFTA 2006 members.
Provisions regulating relationships among its members in new trade areas Application of the rules of WTO
Abolishing of export subsidies
THANK YOU
