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