CROATIA, EFTA TO SIGN FREE TRADE AGREEMENT ON THURSDAY

ZAGREB, June 20 (Hina) - Croatia will sign a free trade agreement with the European Free Trade Association (EFTA), which comprises Switzerland, Norway, Island, and Liechtenstein, at a ministerial conference EFTA is to hold in Vaduz on the 21st. The agreement was initialled in February. It envisages the establishment of a free trade zone between Croatia and EFTA countries, and tariff-free trade in industrial products. On January 1, 2002 when the agreement is to come into force, EFTA will revoke all tariffs on the import of Croatian goods, while Croatia will revoke tariffs for 80 percent of industry products. Tariffs on the rest will be revoked over the next five years. Trade in farm produce has been agreed on in bilateral concessions between Croatia and each EFTA member separately, said Olgica Spevec, the head of Croatia's negotiating team and assistant to the economy minister. An important fact is that every EFTA member except Switzerland is a member of the European Union, so joining the association was inevitable on the road to the EU, said Spevec. The free trade agreement is a clear political signal to potential investors, banks, as well as tourists, saying that EFTA governments have no reservations towards Croatia and neither should they, she added. Last year Croatia's export to EFTA members totalled $44.3 million, while import amounted to $186.3 million. Leading in export are cereals and manufacture (almost $8 million), electrical machinery, appliances and equipment ($5.3 million). Medical and pharmaceutical products accounted for $26.1 million of imports. Croatia's chief foreign trade partner among EFTA countries is Switzerland, with $188.7 million made in 2000. Norway follows with $35.7 million, Liechtenstein with a little over $3 million, and Island with $1.3 million. (hina) ha sb