ZAGREB, March 6 (Hina) - In late May, we could have the last round of negotiations on a Stabilisation and Association Agreement (SAA), Croatia's chief negotiator with the European Union Neven Mimica told reporters in Zagreb on
Tuesday. The talks between Croatia and the EU, which formally started at the Zagreb Summit, have so far resulted in agreement on about 80 percent of the text of the Agreement. The remaining open issues concern the dynamics of liberalisation of Croatia's market for EU products, the procedure of acquiring real-estate ownership rights in Croatia by foreign nationals, and transitional periods for the implementation of the agreement's provisions, Mimica told a news conference. The part of talks referring to the trade regime, Mimica recalled, focuses on the speed of opening of the Croatian market for EU products given that the EU has already unilaterally granted customs-free access for all Croatian
ZAGREB, March 6 (Hina) - In late May, we could have the last round of
negotiations on a Stabilisation and Association Agreement (SAA),
Croatia's chief negotiator with the European Union Neven Mimica
told reporters in Zagreb on Tuesday.
The talks between Croatia and the EU, which formally started at the
Zagreb Summit, have so far resulted in agreement on about 80 percent
of the text of the Agreement. The remaining open issues concern the
dynamics of liberalisation of Croatia's market for EU products, the
procedure of acquiring real-estate ownership rights in Croatia by
foreign nationals, and transitional periods for the implementation
of the agreement's provisions, Mimica told a news conference.
The part of talks referring to the trade regime, Mimica recalled,
focuses on the speed of opening of the Croatian market for EU
products given that the EU has already unilaterally granted
customs-free access for all Croatian industrial and agricultural
products except for wine, fish and beef, for which it has introduced
quotas.
Three groups of industrial and agricultural products are being
negotiated - non-sensitive, sensitive and the most sensitive ones.
For the first group, Croatia has suggested that a zero customs rate
be introduced; for the second group of products there would be a
transitional period of three years, during which customs rates
would be gradually reduced, whereas the most sensitive products
would have a transitional period of six years. After six years, a
zero customs rate would be introduced for all industrial products
from the EU, whereas customs rates would be retained for some
agricultural and food products.
The problem of real-estate ownership rights for foreign nationals
in Croatia has been misinterpreted and exaggerated by some Croatian
media which suggested that Croatia was facing total liberalisation
of its real estate market for foreigners, Mimica said.
The talks are currently not focusing on liberalising the real
estate market or making conditions for the acquisition of real
estate stricter, but on simplifying the administrative procedure
of acquiring real estate in Croatia for EU citizens.
"The government has still not adopted a final negotiating stand
regarding that issue but contacts with competent ministries show
that a solution can be found in seeking a six-year transitional
period which would start on the day the SAA goes into force.
Within that period, the current regime, which regulates that
foreigners can acquire real estate in Croatia on the basis of
reciprocity, would remain effective. Upon the expiry of the
transitional period, the reciprocity principle would be replaced
with the principle of freedom, in force in the EU, which envisages
the protection of national interests through a list of real estate
which is excluded from the free market and which foreign nationals
are not allowed to buy. The list would include, among else, maritime
resources, cultural heritage, national parks, areas important for
national security as well as farming land and forests," Mimica
said.
The third set of questions to be discussed regards transitional
periods for the implementation of some parts of the agreement.
"We have suggested that full association take place six years after
the day the Agreement goes into force, which is an estimate based on
the experience of other countries in transition but also on
differences which exist between Croatia and other countries
included in the Process of Stabilisation and Association," Mimica
said, adding the entire period of transition for Macedonia was ten
years.
According to Mimica, once the agreement is initialled, it will be
signed during Belgium's presidency of the EU, probably in September
or October. At the same time, a temporary agreement would be signed
so that the implementation of provisions on the trade regime could
start immediately. The SAA would go into effect entirely after its
ratification by the Croatian parliament and the parliaments of all
EU countries, which, it is estimated, could take about two years.
(hina) sb rml