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MIMICA: CROATIA, EU HAVE AGREED ON LARGEST PART OF SAA

ZAGREB, Feb 24 (Hina) - Three fourths of the Agreement on Stabilisation and Association (SAA) between Croatia and the European Union have been agreed on and the remaining fourth concerns two areas - real estate ownership for foreign nationals and the liberalisation of the Croatian market for EU products, Croatia's chief negotiator Neven Mimica told Hina on Friday. "Liberalising Croatia's market for EU imports and real estate ownership for foreign nationals are issues which will undergo serious negotiating," Mimica said. A draft SAA the European Commission compiled for Croatia requests that Croatia liberalise its real estate market for foreigners. "Basically, we can accept that as an idea, but we will request a transitional period to start fulfilling that obligation as well as a list of certain categories of real estate to which this obligation will not apply," Mimica said, adding he expected it would not be diffic
ZAGREB, Feb 24 (Hina) - Three fourths of the Agreement on Stabilisation and Association (SAA) between Croatia and the European Union have been agreed on and the remaining fourth concerns two areas - real estate ownership for foreign nationals and the liberalisation of the Croatian market for EU products, Croatia's chief negotiator Neven Mimica told Hina on Friday. "Liberalising Croatia's market for EU imports and real estate ownership for foreign nationals are issues which will undergo serious negotiating," Mimica said. A draft SAA the European Commission compiled for Croatia requests that Croatia liberalise its real estate market for foreigners. "Basically, we can accept that as an idea, but we will request a transitional period to start fulfilling that obligation as well as a list of certain categories of real estate to which this obligation will not apply," Mimica said, adding he expected it would not be difficult to obtain EU's consent on this. All countries which have so far negotiated associate membership, except for Slovenia, did not have to negotiate about the liberalisation of their real estate markets as this is an obligation which is introduced during talks on full membership. Even some countries-candidates for full membership have requested a transitional period and the right to ban the sale of some categories of real estate to foreign nationals. As regards trade liberalisation, talks are currently underway on the dynamics of opening the Croatian market for EU products, while the export of Croatian goods to the EU market need not be discussed since the EU has already completely opened its market for almost all industrial and agricultural products from Croatia. For some products, Croatia is ready to liberalise its market immediately, while for the most sensitive goods it seeks gradual opening through a transitional period of six years at the most. Talks on the SAA between Croatia and the EU started formally in November last year during the Zagreb Summit. The first plenary round of talks was held in Brussels in December last year while the first round of technical negotiations was held in January this year. The second plenary negotiating round will be held in Brussels next week, on February 26 and 27. So far, nine out of ten chapters of the SAA have been opened during the talks. The SAA, a new generation of contractual relations intended for five south-east European countries - Croatia, Bosnia-Herzegovina, Yugoslavia, Macedonia and Albania - envisages the establishment of a network of bilateral agreements on cooperation between the countries. Also, countries included in the Process of Stabilisation and Association can, too, sign such bilateral agreements with countries which are negotiating full membership. Every country which signs the SAA should within two years from the signing conclude a bilateral agreement on cooperation exclusively with those countries which have already signed the SAA. However, the countries cannot hamper each other, i.e. if Croatia is ready to sign such an agreement with some country, and the other side does not want it, Croatia's readiness alone means it has fulfilled its obligation, Mimica said. Although the SAA envisages the adjustment to only one of the 31 chapters of acquis communautaire (European legal regulations), Croatia does not intend to conduct the process of admission to the EU in two stages. "We don't intend to go in two stages, but immediately upon the signing of the SAA start adjusting to all 31 chapters of acquis communautaire," Mimica said. The entire process should be completed by the end of 2006. At its latest session, the Croatian government entrusted all ministries with starting to adjust to EU standards so that they could be ready for full membership by the end of 2006. The SAA itself, which Croatia should initial by this summer, will go into force after the ratification process in the EU is completed, which could take about two years. However, the most important part, trade liberalisation, will start immediately after the signing. (hina) rml

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