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Degert: Regional free trade zone to facilitate regional trade

ZAGREB, Jan 27 (Hina) - The sole purpose of creating a regional freetrade zone among five Southeast European countries covered by theStabilisation and Association Process, which was proposed by theEuropean Commission on Friday, is to promote and facilitate tradeamong the countries in the region, the head of the European CommissionDelegation to Croatia, Vincent Degert, said in Zagreb.
ZAGREB, Jan 27 (Hina) - The sole purpose of creating a regional free trade zone among five Southeast European countries covered by the Stabilisation and Association Process, which was proposed by the European Commission on Friday, is to promote and facilitate trade among the countries in the region, the head of the European Commission Delegation to Croatia, Vincent Degert, said in Zagreb.

Croatia's European orientation is very clear. Croatia is oriented towards the European market, but it also does business with all the countries in the region, which is why it is also important to facilitate trade with the other countries. Instead of a number of agreements with different rules and conditions, now Croatia would have one agreement on free trade with simple rules, Degert said while presenting the European Commission's document entitled "The Western Balkans on the Road to the EU: Consolidating Stability and Raising Prosperity".

Degert said that the document was important for Croatia because it would help it boost trade with the countries in the region.

A single free trade agreement between all the countries in the region would replace the existing 31 bilateral agreements, which would substantially facilitate regional trade, he said.

The head of the European Commission Delegation said he believed this was no surprise to the Croatian government because the matter had been discussed when Croatia was covered by the Stabilisation and Association Agreement.

Degert said that the document would serve in preparation for a meeting of EU and Western Balkan foreign ministers to be organised by the EU president Austria. He added that before that meeting heads of state and government should direct their attention at several key issues such as settlement of the status of Kosovo, implementation of the Stabilisation and Association Agreement by Serbia and Montenegro and constitutional issues in Bosnia-Herzegovina.

The European Commission's document proposes fostering trade, economic development, movement of people, education, research work, regional cooperation and civil society dialogue in the Western Balkans as part of the EU's strategy to integrate the people from the region into the European mainstream.

What is important in this document for Croatia and Macedonia is the approval of European origin for their products, Degert said. All products made in Croatia and Macedonia would be given a European origin marking and it would be possible for them to be placed on the EU market without any restriction, he added.

Degert said that the document also provided for the establishment of a EUR60 million fund for financing small and medium enterprises, and the inclusion of the Western Balkans into the Lisbon strategy.

Degert announced that Commission President Jose Manuel Barroso, the chief negotiator with Croatia, Michael Lee, and Enlargement Commissioner Olli Rehn would begin their tour of the Western Balkans by visiting Zagreb on 15 and 16 February.

Croatia is in a very good position. Negotiations are in progress and are developing very positively, Degert concluded.

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