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FREE TRADE AGREEMENT

Y ASEAN Free Trade Area (AFTA)

YCentral European Free Trade Agreement (CEFTA)

YGreater Arab Free Trade Area (GAFTA)

YPacific Island Countries Trade Agreement (PICTA)

YSouth Asia Free Trade Agreement (SAFTA)

YNorth American Free Trade Agreement (NAFTA)


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
Original ‡ Signed on 21st December, 1992 in
Agreement Kakrow, Poland
‡ It entered into force since July 1994

‡ Cefta extended to cover rest of the


South East Euro ean countries
CEFTA ‡ Agreement came into effect from 2 7
2 6 ‡ Areas covered CEFTA- Services,
Investment, Government Procurement,
Intellectual Pro erty Rights
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MEMBERSHIP CRITERIA

¢ Membership with WTO

¢ Signing of an Association Agreement with


EU

¢ Consent form of all Cefta States


Organisation Structure and Working
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The Joint Committee Supervise and administer the implementation of the


Agreement

Sub-committee on Agriculture Facilitate trade in agricultural products within the region


and Sanitary and Phytosanitary
Issues
Sub-committee on Customs and Simplify and facilitate customs procedures, stimulate
Rules of Origin rapid implementation of the common rules of origin in
all the Parties

Sub-committee on Technical To identify, review and propose measures for elimination


Barriers to Trade and Non Tariff of technical barriers to trade and non-tariff barriers
Barriers among the parties.

CEFTA Secretariat Provide technical and administrative support to the Joint


Committee, to any sub-committee, e pert group or any
other body established by the Joint Committee
OBJECTIVES OF CEFTA
¢ Consolidate in a single agreement trade liberalisation
achieved through the network of bilateral free trade
agreements

¢ Promote Investment including FDI

¢ E pand 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 e cellent framework for the


parties to prepare for EU accession
General Obligation Applicable to
Trade In All Goods

¢ Quantitative Restrictions
¢ Custom Duties on E ports
¢ 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 e pected to join the EU by 2012

¢ A large proportion of CEFTA foreign trade


is with EU countries
KEY ECONOMIC AND TRADE
INDICATORS(2008)
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ALBANIA 125 298 8364 1.5
BOSNIA AND 1529 2916 12649 12.1
HERZEGOVA
NIA
CROATIA 2253 1051 4 165 4.8
MACEDONIA 922 511 64 14.2

MONTENEGR 159 122 3393 4.


O
SERBIA 2458 1216 34055 .2
KOSOVO 93 05 3804 2.4
BENEFITS
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¢ Application     WTO

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ISSUES
¢ THANK YOU