Rehn en Mandelson in Boekarest voor ondertekening verdrag voor vrijhandelszone Balkanlanden (en)

EU Trade Commissioner Peter Mandelson and EU Enlargement Commissioner Olli Rehn will meet with the Prime Ministers from South East European (SEE) countries in Bucharest on 6 April for the launch of the creation of a single Free Trade Agreement for the region.

This initiative of the countries of the region, prepared with the help of Stability Pact for SEE on the invitation of the Romanian government, is strongly supported by the European Commission. The framework for this cooperation will be the existing Central European Free Trade Agreement (CEFTA), which is to be simultaneously enlarged and adapted. It will replace the complicated system of bilateral trade agreements in South East Europe with a single pact that will make it easier to trade and invest in the region. The aim is to conclude negotiations by the end of 2006.

Speaking before their departure to Bucharest, Commissioner Peter Mandelson said: "For South Eastern European countries, the developing trade between themselves is an essential part of building closer commercial, economic and political relations with the European Union".

Commissioner Olli Rehn said "This initiative helps the countries to prepare for the economic cooperation that is an inherent part of EU membership. It is also an excellent example of regional cooperation becoming reality, and it is also a good training ground for economic cooperation in preparation for EU membership. In no way does it replace the European perspective, but rather it complements it by preparing the countries for closer economic integration with the EU."

Since 2001 Albania, Bosnia-Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Moldova, Romania, Serbia and Montenegro and UNMIK/Kosovo (as defined by UN Security Council Resolution 1244) have concluded a network of bilateral Free Trade Agreements with each other. The countries of the region have agreed that a single regional agreement, building on existing agreements, can further boost trade and help attract much-needed investment to the region. It is also an important step in increasing the commercial integration of the region with the EU. The European Commission, along with the Stability Pact for South Eastern Europe, has offered its full political and technical support for this process.

Enlarging and adapting CEFTA

The Regional Trade Agreement will extend the existing Central European Free Trade Agreement (CEFTA) between Bulgaria, Romania, Croatia (and soon the former Yugoslav Republic of Macedonia) to cover the other countries of the Western Balkans. At the same time it will modernise that agreement by adding new provisions for harmonising rules and regulations, improving dispute settlement, trade in services and the protection of intellectual property. The agreement will consolidate the bilateral trade concessions which are currently included in 31 different bilateral Free Trade Agreements concluded between the participating countries - which already liberalise more than 90% of trade in the region, including almost all trade in industrial products.

Trade and South Eastern Europe

The EU is by far the most important trading partner for South Eastern Europe. In 2005, total trade between the EU and South Eastern Europe amounted to 79 billion euro, an increase of 53% compared to 2001. The EU has offered preferential access to the Western Balkans since 2001 - in that time, exports from these countries to the EU have grown by 38%.

Foreign investment in the region remains very low; too low to finance the current account deficits of the countries of the region. An integrated regional market with a simplified single set of trade rules will make the region more attractive for inward investment.

Trade between South East European countries has been boosted by the establishment of bilateral Free Trade Agreements. Trade within the region increased from 2.6 billion euro in 2002 to more than 3.5 billion euro in 2004. For instance, Croatia increased its trade with its regional neighbours by 27% while Bosnia and Herzegovina raised it by 63%. The enlargement and modernisation of CEFTA will build on these encouraging results.

The Ministerial Meeting

The Ministerial Meeting of 6 April is organised jointly by the Romanian Prime Minister, Mr Popescu-Tariceanu and the Special Co-ordinator for the Stability Pact for South Eastern Europe, Dr Erhard Busek. Ministers will exchange views on the results achieved so far in regional trade liberalisation. They will define the key principles which should underpin the regional FTA and the negotiating framework. Ministers will also agree on an indicative timetable for the negotiations, aiming at concluding them by the end of 2006.

For more information on the EU trade policy towards the Western Balkans

http://europa.eu.int/comm/trade/issues/bilateral/regions/balkans/index_en.htm