Implementation of CEFTA Renata Vitez Director

1. Implementation of CEFTARenata VitezDirector European Movement Serbia Vision of European Serbia International Conference, Belgrade 29th May 2009

2. Start of CEFTA 2006 • The Agreement on Amendment to and Accession to the Central European Free Trade Agreement (CEFTA 2006) was signedin Bucharest on 19 December 2006. • CEFTA entered into force in 2007: 26 July (Albania, UNMIK/Kosovo, Montenegro, Macedonia, Moldova); 22 August (Croatia); 24 October (Serbia); 22 November (Bosnia and Herzegovina). • CEFTA 2006 consolidates 32 previous bilateral free trade agreements in South East Europe. Reasons for a new single agreement: • Greater transparency for business • Easier administration for government • Greater uniformity • Better discipline • An agreement called CEFTA implies also … the Parties “aim … to accede to the EU and that CEFTA is a proven route to accession … (Preamble) … because intra-regional free trade is part of pre-accession process to EU (SAAs). The modernised CEFTA is the first internationally binding treaty signed by the SEE countries themselves; successful implementation is vital both economically and politically. CEFTA Secretariat

3. CEFTA 2006 provides … Full conformity with WTO Free trade up-front in all industrial products and many agricultural products (> 90%) Modern provisions on trade-related issues Evolutionary clauses on new trade issues Mechanisms for implementation and dispute settlement Harmonisation with EU acquis and a pre-accession track CEFTA Secretariat

4. CEFTA Structures CEFTA Joint Committee • The governing body of CEFTA is a Joint Committee composed of representatives of each party to the Agreement (ministers responsible for foreign economic relations). The Joint Committee is chaired by one of the Parties and this function revolves on an annual basis. The Chair in Office for 2009 is Montenegro which will be followed by Serbia in 2010. CEFTA Sub-committees • To date, three sub-committees have been established: • Sub-committee on Agriculture including Sanitary and Phyto-sanitary Issues • Sub-committee on Customs and Rules of Origin • Sub-committee on Technical Barriers to Trade and Non-Tariff Barriers CEFTA Secretariat • The Joint Committee is supported by a permanent secretariat located in Brussels. CEFTA Secretariat

5. Programme for the Chairmanship of Montenegro in 2009 • Priorities of the Montenegrin Chairmanship • Further liberalisation in agriculture • Co-operation in the field of sanitary and phyto-sanitary measures • Eliminating technical barriers to trade • Diagonal cumulation of origin • Trade statistics • Related activities • Co-operation with international institutions • Co-operation with regional initiatives • Targeted technical assistance • Promotion (“CEFTA Week”) The political and economic credibility of the CEFTA Parties requires that they meet the commitments set out in the Agreement. Montenegro’s programme for its Chairmanship is focused on those key areas. CEFTA Secretariat

6. Tentative calendar 2009 Sub-Committee on Agriculture and SPS Sub-Committee on Customs and Rules of Origin Deputy/Assistant Ministers/Directors General responsible for Foreign Economic Relations Joint Committee (Preceded by Experts Meeting) Prime Ministers Summit Month April 7-8 May 11-12 May 27 October November/ December Event CEFTA Secretariat

7. Second year of implementation • Montenegro proves to be a very active Chair in Office. • Negotiations on further liberalisation in agriculture have just been completed. • Concrete initiatives/projects have been launched for the implementation of respective Chairmanship priorities. • Co-operation with the EC and international organisations is excellent. • Differences in pace and status in the EU accession process is perceived as impediment to further liberalisation. • Due to difficult economic situation attempts to introduce protectionist measures can be expected. • Participation of UNMIK/Kosovo in CEFTA structures remains an issue. • The resources of the Secretariat are (too) limited. CEFTA Secretariat