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Sanader says free trade will speed up Croatia's admission to EU

ZAGREB, Feb 2 (Hina) - Croatia's cooperation in the building ofstability and peace in Southeast Europe, including through closertrade relations, will not slow down but rather speed up the country'sintegration with the EU, Croatian Prime Minister Ivo Sanader said inZagreb on Thursday.
ZAGREB, Feb 2 (Hina) - Croatia's cooperation in the building of stability and peace in Southeast Europe, including through closer trade relations, will not slow down but rather speed up the country's integration with the EU, Croatian Prime Minister Ivo Sanader said in Zagreb on Thursday.

"The more Croatia helps the international community in establishing stability and peace and promoting economic development in the region, the sooner it will join the European Union," Sanader said after talks with Erhard Busek, Special Coordinator of the Stability Pact for Southeast Europe.

The PM reiterated that the purpose of all initiatives on Southeast Europe was regional political stability and better business conditions.

"Nobody in Europe is considering the establishment of a new Yugoslavia or any other form resembling the former Yugoslavia, and there is no chance of that happening," Sanader said.

Considering the sensitivity of the Croatian public about this topic, Sanader today held a news conference and then talked with European officials to remove suspicions about the restoration of Yugoslavia.

He recalled a meeting in Salzburg in August 2005 at which prime ministers from countries covered by the Stability Pact, their colleagues from Bulgaria and Romania, and Austrian Prime Minister Wolfgang Schuessel discussed the option of a free trade zone or its inclusion into an enlarged Central European Free Trade Agreement (CEFTA), with the participants opting for Sanader's proposal on CEFTA.

Participants in a subsequent CEFTA summit in Zagreb agreed to lower admission criteria, so that in order to be able to join CEFTA a country no longer needs to be a member of the WTO, but only express its intention to join.

"We believe that CEFTA provides a good framework for free trade because it eliminates all political allusions about the restoration of Yugoslavia," Sanader said. He went on to say that it was important that Romania and Bulgaria remain CEFTA members until their admission to the EU and that Ukraine be invited to join CEFTA too.

Addressing reporters, Busek said that the EU's efforts were aimed at strengthening stability and developing the economy of Southeast Europe.

He pointed to the fact that there were 31 bilateral free trade agreements in the region and that such a large number of agreements presented an obstacle for business people.

"That is why we in the Stability Pact have proposed a free trade zone, with only one agreement," Busek said.

Commenting on the controversy which the EC proposal has stirred among the Croatian public, Busek said that such a response had been expected, but that it was unfounded.

He said that Sanader's proposal for the establishment of a free trade zone under the aegis of CEFTA was very well accepted and thanked the Croatian government for lowering the membership criteria during its presidency of CEFTA, which Bosnia-Herzegovina and Serbia and Montenegro have already benefitted from by announcing their intention to join the WTO.

Busek said that Sanader's proposal for Ukraine's membership of CEFTA was interesting and that the Croatian proposal for the establishment of a free trade zone under the aegis of CEFTA proved that Croatia had the leading political and economic role in the region, as well as on the path to the EU.

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