AGRICULTURAL TRADE DEFICIT BIGGEST SINCE CROATIA'S INDEPENDENCE?

ZAGREB, Dec 3 (Hina) - If the negative trend in the trade in farm produce and foodstuffs continues, the agricultural sector alone could account for a negative balance of almost half a billion US dollars by year's end, which would be the highest deficit in this sector since Croatia achieved independence ten years ago. In this year's first nine months, the trade deficit in said sector continued to grow, reaching $334 million, as against $246 million at the same time last year, the highest amount in the past five years, according to a report on price movements and trade in farm produce and foodstuffs. The report was compiled to establish trends in the wake of Croatia's admission to the World Trade Organisation and the signing of free trade agreements. In this year's first nine months, Croatia imported $656 million in farm produce and foodstuffs, an increase of 24 percent, whereas export accounted for $323 million, an increase of 14 percent. The report also points to a decrease in the prices of said goods. Competent ministries estimate they will continue to drop in the coming period. The liberalisation of the domestic market, more open towards imported goods and with an easier access to foreign markets, will be crucial for achieving long-term market and price stability. Before Croatia joined the WTO, the retail prices of farm produce were 5.4 percent higher on the annual level (Nov. 2000/Nov. 1999), dropping by 0.2 percent after the admission (Oct. 2001/Oct. 2000). This October they were 1.5 percent higher than in Oct. 2000. (hina) ha