CROATIA AND EFTA SIGN FREE TRADE AGREEMENT

VADUZ/ZAGREB, June 21 (Hina) - Croatia's Economy Minister Goranko Fizulic and officials of EFTA (European Free Trade Association) member-states: Switzerland, Norway, Iceland and Liechtenstein, on Thursday signed an agreement on free trade.#L# The document was signed as part of a conference of EFTA members which is taking place in Vaduz, Liechtenstein. Under the agreement, starting with 2002 a free trade zone will be established between Croatia and the EFTA members. Upon signing the document, Minister Fizulic said this was the first agreement of this kind to be signed between Zagreb and a European association. The deal is not important only because it will enable Croatia to promote business ties with the said countries and have an easier approach to their markets, but also as a reliable signal to foreign investors that it is worth investing in Croatia, Fizulic said. The agreement, effective 1 January 2002, stipulates that EFTA will rescind all tariffs on imported industrial goods from Croatia. Croatia will also annul tariffs for most industrial products imported from EFTA member-states. The tariffs for about 20 percent of goods imported from EFTA to Croatia will gradually be revoked in next the six years, until 2007. Trade in agricultural produce has been arranged by bilateral agreements and concessions between Zagreb and each member of the EFTA. (hina) sb ms