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CRO GOVT ACCEPTS TEXT OF STABILISATION AND ASSOCIATION AGREEMENT

ZAGREB, May 10 (Hina) - The Croatian government accepted the text of a Stabilisation and Association Agreement (SAA) with the European Union at a session on Thursday. The government also decided that Foreign Minister Tonino Picula, who is heading a state delegation for negotiations with the EU, would initial the SAA in Brussels on May 14.
ZAGREB, May 10 (Hina) - The Croatian government accepted the text of a Stabilisation and Association Agreement (SAA) with the European Union at a session on Thursday. The government also decided that Foreign Minister Tonino Picula, who is heading a state delegation for negotiations with the EU, would initial the SAA in Brussels on May 14. #L# Along with the text of the SAA, the government adopted a statement regarding the preamble and Article 1 of the SAA which states that EU membership is Croatia's ultimate strategic goal and that Croatia holds the SAA a fundamental instrument in attaining that goal. Croatia's chief negotiator with the EU, Neven Mimica, said at the session that the EU did not accept Croatia's amendment to the SAA preamble which read that the SAA facilitated the accomplishment of Croatia's goal to become an EU member. Mimica therefore suggested that the government adopt a statement which would unambiguously state what Croatia expected from its signing the SAA. Mimica said EU negotiators had incorporated into the SAA preamble Croatia's reference to the Zagreb Summit, which implicitly confirmed individual assessment of countries aspiring to join the EU and stressed the need for regional cooperation, however, only through bilateral agreements. The preamble also includes a so-called evolution clause which confirms Croatia's status as a potential candidate for EU membership. The last official round of talks between Croatia and the European Union at which the two sides should confirm the agreed text of the SAA will be held in Zagreb on Friday. Submitting his report on the negotiations, Mimica reminded that the two sides had reached agreement on the part of the SAA regulating trade relations, foreign ownership of real estate in Croatia and the transitional period for the application of the SAA. "As regards the trade regulations, I believe that balance has been achieved between the dynamics of liberalisation of the Croatian market and the protection of Croatian products. As regards real estate, we have discussed simplifying the administrative procedure for foreign nationals, so that the current principle of reciprocity will be abandoned in a transitional period of four years, and we will keep a list of the real estate which is excluded from sale and which includes national parks, farming land, maritime resources and the like. The transitional period for the start of the application of the entire SAA has been set at six years and it is even shorter in some areas of market liberalisation and legislative adjustment - between three and five years from the day the SAA goes into force, Mimica told the session. In a debate on the SAA, Prime Minister Ivica Racan and government members stressed the importance of this agreement and the drawing up of a strategy on its application. It was also pointed to the advantages of the European market for Croatia's economy as well as to the fact that the growing pressure of EU competition would encourage but also jeopardise domestic agricultural producers, which was why, it was said, agricultural reforms should continue. (hina) sb rml

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