CROATIAN BUSINESS PEOPLE EXPECT COOPERATION WITH SERBIA TO RESUME

tZAGREB, March 14 (Hina) - The latest developments in Serbia should not affect the process of advancement of trade relations between Croatia and Serbia, the head of the Croatian Chamber of Commerce, Nadan Vidosevic, said. #L# "Although it is still too early for conclusions, I hope the process will continue at the same pace," says Vidosevic, who expects that the increasingly improving trends in trade and the return of Croatian companies to the Serbian market will continue. Representatives of Croatian companies which are already present on the Serbian market or plan on returning there, although slightly reserved, have announced resumption of business in Serbia, while adding that it will depend on developments on the local market. Trade between the two countries in recent years has seen high growth rates. In 2002, Croatia exported US$172.3 million worth of products, which is a 15.5% increase compared to 2001, which saw an increase of exports to the neighbouring country of more than 39%. In 2002 Croatia imported US$53.2 million worth of products from Yugoslavia, a 35.5% increase in relation to the year before. Croatian companies have recently made significant acquisitions on the Serbian market. The Agrokor concern in February became the majority owner of Belgrade's Frikom, Serbia's largest producer of ice-cream and frozen food. The insurance company "Croatia osiguranje" last week bought Belgrade's insurance company "Milenijum osiguranje". The food producer Podravka from Koprivnica has opened a company in Belgrade while the Croatian Railway last October opened an office in Belgrade. Varazdin's Vartex clothing manufacturer, which has claimed back its premises in Serbia, has established its own company there and plans to start reconstructing some outlets. At the end of last year, Zagreb's Koncar Elektroindustrija held a presentation in Belgrade focusing on its strategy of return to the Serbian market. (hina) rml sb