ZAGREB, April 19 (Hina) - Croatia and Hungary are strategic partners, in politics as in the economy, Croatian experts said at a conference about business with Hungary the Croatian Chamber of Commerce hosted on Thursday. Hungary is
interested in investing in Croatia's harbours, tourism, the oil industry, agriculture, and free zones, as well as in participating in the privatisation of small and medium-sized companies. Hungarian businessmen would also like to join in reconstruction projects, especially in transport, telecommunications, and the power industry. Owing to Hungary's big interest to use Croatia's tourist offer and jointly invest in tourist facilities, the two countries' cooperation in this field should yield better results in the future, the experts said. Cooperation in investing is a relatively new field in Croatian-Hungarian economic relations. Hungarian inves
ZAGREB, April 19 (Hina) - Croatia and Hungary are strategic
partners, in politics as in the economy, Croatian experts said at a
conference about business with Hungary the Croatian Chamber of
Commerce hosted on Thursday.
Hungary is interested in investing in Croatia's harbours, tourism,
the oil industry, agriculture, and free zones, as well as in
participating in the privatisation of small and medium-sized
companies. Hungarian businessmen would also like to join in
reconstruction projects, especially in transport,
telecommunications, and the power industry.
Owing to Hungary's big interest to use Croatia's tourist offer and
jointly invest in tourist facilities, the two countries'
cooperation in this field should yield better results in the
future, the experts said.
Cooperation in investing is a relatively new field in Croatian-
Hungarian economic relations. Hungarian investments in Croatia
amount to a mere $1.3 million. Its businessmen are present
independently or through joint investments in about 100 Croatian
companies.
Hungary's oil industry MOL is very interested in further investing
in Croatia, whose investing in Hungary refers to the establishment
in Budapest of a branch of the national oil industry INA, and the
building of a Podravka food company factory in Pecs.
A free trade agreement the two countries signed on April 1 has paved
the way for intensifying economic cooperation, especially as
regards Croatian export to Hungary. Hungary is second to Slovenia
among Central European Free Trade Agreement (CEFTA) countries as
Croatia's chief foreign trade partner.
According to Tibor Suelt, an adviser at the Hungarian Embassy in
Croatia, the free trade agreement gives Croatian and Hungarian
exporters and importers a considerable advantage which will remain
in force until Hungary joins the European Union so has to be used as
soon as possible.
"The agreement brings full exemption from customs duty for 80
percent of industrial products originating from both countries as
of April 1, and for all other industrial products at the beginning
of 2002," he told reporters.
Customs duties for a smaller number of farm produce and food
products are abolished immediately, in line with CEFTA principles,
said Suelt. Maximum duty is restricted for some products, while for
a third group tariff rates are cut according to annual quotas.
Other duties are cut annually and will reach the level of the
biggest benefits by 2004 at the latest, Suelt said.
In 2000 Croatia's export to Hungary totalled $60 million, whereas
import amounted to $174 million. This year trade is expected to
increase by 20-25 percent.
(hina) ha sb