FINAL CROATIA-EU NEGOTIATIONS ON SAA NEXT WEEK

ZAGREB, May 4 (Hina) - Croatia and the European Union will hold the last round of negotiations on a Stabilisation and Association Agreement (SAA) in Zagreb on May 10. The SAA should be initialled on the 14th, an official said on Friday.#L# The SAA should be signed in the autumn and come into force upon being ratified in the Croatian and parliaments of all EU countries, Deputy Economy Minister Olgica Spevec told a session of the Croatian Chamber of Commerce Zagreb branch. She added parts of the SAA referring to the economy and liberalisation of trade would occur sooner, namely come into force from the beginning of next year based on a so-called inter- agreement. The EU opened its market for Croatian products early last November. Croatia will open its market for EU products after the signing of the SAA. Trade with the EU for some products will undergo liberalisation immediately, while a transitional period is envisaged for others. A zero rate, for instance, will be introduced for some industrial products at once, whereas other, more sensitive industrial goods will be liberalised over a 2-6-year period during which tariffs decrease gradually. As for farm products, Spevec said tariffs would be abolished immediately for non-sensitive ones, bananas for instance, while tariffs on sensitive ones would continue to drop by 2006. (hina) ha sb