REGIONAL COOPERATION AND ECONOMIC INTEGRATION

Part II
CEFTA-2006 TRADE COOPERATION
Ljubica Kostovska Ph. D.
Full - time professor
Ss. Cyril and Methodius University
Faculty of Economics - Skopje
Macedonia
CEFTA-2006 PROGRESS AND WORLD ECONOMIC CRISIS
Abstract
The singing of the updated CEFTA was supposed to be an historic event in South East
Europe. The remaining countries that are still waiting on EU membership should operate
in a free-trade zone, economies should finally have the opportunity to grow above politics
and companies looking for growth could expand to neighboring markets. Has the reality met
these high expectations Has CEFTA really changed the playing field
As the ,,old” CEFTA countries experienced substantial trade increases among each other,
implementing the agreement, one could expect the same for SEE. The enlarged CEFTA
should help move SEE nearer to the creation of a single market, but CEFTA expansion would
not in itself liberalize trade in goods beyond the tariff reductions envisaged in the bilateral
FTAs (these are annexed to the new CEFTA agreement). While the business communities are
expecting an increase in investment, (because a single market plays a key role in attracting
investment), trade and investment would continue to be held back by shortcomings in these
countries’ business environment, especially licensing procedures, deficient infrastructure
and differing product standards.
CEFTA expansion would also not ease the worries of South-East European countries
about the likely slowdown in EU enlargement, and may even intensify these concerns. The
credibility of the accession process has been gravely weakened by increasing “enlargement
fatigue “ within the EU and a string of negative messages over the past year to the Western
Balkan aspirants about when, and even if , they might expect to become members. May there
be concerns within South-East Europe that the EU sees CEFTA as a substitute for, rather
than a facilitation of, EU integration What is a future of CEFTA as a multilateral agreement
for regional co-operation, especially under aggravating circumstances of world economic
crisis
These are the issues we would try to analyze in this paper, using statistical data basis and
comparing trade flows between the CEFTA-6 countries, within and outward region.
Key words: CEFTA updated, trade region, trade cooperation, integration, economic crisis.
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