ZAGREB, Dec 11 (Hina) - Hungary has suspended its free trade agreement with Croatia, significantly raising tariffs on some 15 Croatian products, in response to Croatia's ban on the import of meat and cattle from Hungary, Croatian
media reported on Thursday evening.
ZAGREB, Dec 11 (Hina) - Hungary has suspended its free trade
agreement with Croatia, significantly raising tariffs on some 15
Croatian products, in response to Croatia's ban on the import of
meat and cattle from Hungary, Croatian media reported on Thursday
evening. #L#
With the suspension, which came into effect yesterday, Hungary has
undermined nearly one-fourth of Croatia's exports there, Croatian
Television (HTV) said, while Vecernji list daily of Friday says
that Hungary has declared a trade war against Croatia.
The HTV said the increase of tariffs hit the hardest the Koprivnica-
based food company Podravka, Croatia's largest exporter to
Hungary.
Hungary decided on the suspension after Croatia banned the import
of livestock and animal products from countries using meat and bone
meal, believed to spread mad cow disease, as cattle food.
Although Hungary banned using meat and bone meal to feed cattle in
September, said food is still used for other animals. Beef may be
imported from Hungary but only from calves born after the ban, while
the import of other types of meat is banned.
According to the HTV, the Croatian Chamber of Economy feels the so-
called trade war should not be exaggerated but does not exclude the
possibility of Croatia reacting in a similar fashion unless Hungary
withdraws its decision soon.
Both the HTV and Vecernji quoted Assistant Agriculture Minister
Miroslav Bozic as saying Croatia will ask for an explanation of
Hungary's steps. He also said that if relations became more
strained, that might harm Hungary more than Croatia given that
Croatia exported about US$60 million there in this year's first
nine months while importing $314 million.
(hina) ha