SECOND ROUND OF TALKS ON CROATIA'S ADMISSION TO CEFTA ENDS

ZAGREB/POREC, May 29 (Hina) - The second round of talks on Croatia's admission to the Central European Free Trade Agreement (CEFTA) was held in Porec on May 27-29, and the talks resulted in agreement on most key regulations of a contract on Croatia's joining the central European free trade area, the Economy Ministry said in a statement. #L# Participating in the talks were experts from CEFTA member- countries - Bulgaria, the Czech Republic, Hungary, Poland, Romania, Slovakia, and Slovenia. Croatia's delegation was headed by Assistant Economy Minister Olgica Spevec. It was agreed that the contract should include regulations on the origin of goods, based on the CEFTA's origin cumulation, which refers to all countries from the pan-European system with which Croatia signed free trade agreements. This means that goods produced in Croatia which include parts imported from around 30 member-countries of the cumulation system (EU, EFTA-European Free Trade Association, CEFTA, Baltic countries) will be considered goods of Croatian origin when exported to other CEFTA member- countries and vice-versa. Regulations of the whole text of the contract were also agreed on at the meeting. Talks on the liberalisation of trade in industrial products between Croatia and Romania were completed at the meeting as well. The liberalisation of trade in industrial products with other CEFTA members was agreed previously, during the first round of talks held in Zagreb on February 20-21, 2002. There has been no agreement on the liberalisation of trade in farming products with CEFTA members, and bilateral talks on that issue will continue during June and July 2002. All member-countries intend to accelerate talks as much as possible so that procedures in member-countries needed for the ratification of the contract on Croatia's admission to the CEFTA could be completed by January 1, 2003, when the contract goes into force. (hina) rml sb