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REGIONAL COOPERATION AND ECONOMIC INTEGRATION

REGIONAL COOPERATION AND ECONOMIC INTEGRATION

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CEFTA-2006 TRADE <strong>COOPERATION</strong><br />

1. Significance and contribution of CEFTA-2006<br />

CEFTA is a multilateral agreement of the Western Balkan Countries and Moldova, with<br />

the primary aim to provide liberalization of the foreign trade regime within the region, by<br />

consolidation of all former bilateral agreements signed among them. Complete introduction<br />

of a zone of free trade, according to CEFTA 2006 should be realized until 31.12.2010.<br />

Apart of the primary goal, the intention of CEFTA 2006 agreement was to encourage<br />

regional integration and cooperation among countries of South Eastern Europe during<br />

process of development and fulfillment of political, security and legal criteria for their<br />

forthcoming integration into the European Union. CEFTA 2006 is more comprehensive<br />

than the original CEFTA and the rest of the bilateral FTAs, covering bigger number of<br />

areas,that till CEFTA 2006 was not subject of negotiations.<br />

Namely, beside trade of goods liberalization, for the first time this agreement anticipates<br />

the possibility of liberalization of trade in services, public purchases, investment and<br />

intellectual property rights protection. Extended areas of cooperation should create sound<br />

fundamentals for increasing of opportunities for economic cooperation among countries<br />

in the region, as well as fostering of the harmonization processes of their measures and<br />

the international standards. New CEFTA agreement foresees that member states should<br />

recognize the WTO agreement concerning the technical barriers to trade, undertaking<br />

the obligations to harmonize the national technical standards with the WTO regulations<br />

and those of EU, latest till 31.12.2010. (Draft of the Agreement on Modification of and<br />

Accession to the Central European Free Trade Area Agreement, Bucharest, 6 th of April<br />

2006, p.10)<br />

Member states are obliged to facilitate the tariff procedures and formalities and to provide<br />

fast flow of goods, whereas important role goes on the reform of rules for origin of goods.<br />

(Draft of the Agreement on Modification of and Accession to the Central European Free<br />

Trade Area Agreement, Bucharest, 6 th of April 2006, p.11)<br />

As said above, establishment of functional free trade area is a priority goal of CEFTA<br />

2006. The liberalization process started in May 2007 has different intensity for both<br />

groups of products: industrial and agricultural. Concerning industrial goods’ exchange,<br />

dismantling of tariff expenditures and their equivalent measures were realized for bigger<br />

number industrial goods right after agreement entered in force. For a small number of<br />

goods listed in Annex 2 of the Agreement, in the bilateral trade between some members,<br />

tariffs continued to be applied with the noted decrease, according to defined time schedule.<br />

(<br />

Annex 2 of the Agreement for Modification and Accession to CEFTA, Article 8, Official<br />

Journal of the Republic of Macedonia, No. 59/06)<br />

Including 31.12.2008, tariffs were totally annulated for all industrial goods traded among<br />

member states of CEFTA 2006.<br />

Regarding the trade in agricultural goods, the Agreement foresees step by step tariff<br />

decrease till their entire annulations, having on mind that all countries negotiate among<br />

them on bilateral regime for import and export of agricultural goods. (Annex 3 of the<br />

93

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