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PARLIAMENT TACKLES INTERIM TRADE AGREEMENT WITH EU

ZAGREB, Dec 4 (Hina) - Besides a bill on the ratification of a Stabilisation and Association Agreement (SAA) with the European Union, the Croatian parliament on Tuesday also tackled a bill on the ratification of an interim agreement on trade issues with the EU. Drago Krpina of the opposition's Croatian Democratic Union (HDZ) said the ratification of the interim agreement, which should go into force early next year, would bring the home economy into an unfavourable position, particularly the agriculture, which he said was not prepared for the fierce competition on the European market. Krpina pointed out that under the interim agreement, tariffs on EU products would be cut by 60 percent, as well as that EU members would remain entitled to subsidise export goods while Croatia was being imposed quotas for the export of its most competitive products, like fish. Miroslav Rozic of the Party of Rights/Christian Democrats (HSP/H
ZAGREB, Dec 4 (Hina) - Besides a bill on the ratification of a Stabilisation and Association Agreement (SAA) with the European Union, the Croatian parliament on Tuesday also tackled a bill on the ratification of an interim agreement on trade issues with the EU. Drago Krpina of the opposition's Croatian Democratic Union (HDZ) said the ratification of the interim agreement, which should go into force early next year, would bring the home economy into an unfavourable position, particularly the agriculture, which he said was not prepared for the fierce competition on the European market. Krpina pointed out that under the interim agreement, tariffs on EU products would be cut by 60 percent, as well as that EU members would remain entitled to subsidise export goods while Croatia was being imposed quotas for the export of its most competitive products, like fish. Miroslav Rozic of the Party of Rights/Christian Democrats (HSP/HKDU) bench said Croatia should wait for the SAA to be first ratified in the European Parliament and the parliaments of EU members. European Integration Minister Neven Mimica said an estimate of the effects of market liberalisation had not been made yet, but added no significant negative impact on the economy was expected in the first year of the application of the interim trade agreement. Mimica said the government had bound the Agriculture Ministry to draw up an estimate of the agreement's effects and come up with a policy which could neutralise the short-term adverse effects on the agriculture. Funds in the draft state budget for 2002 are sufficient to neutralise the negative effects expected next year, Mimica said, adding the government would move new protective measures if necessary. Based on the opinions of competent parliamentary bodies, the government has drawn up amendments to the bill on the implementation of the SAA, whereby parliament would pass conclusions on the signing of bilateral agreement with the countries in the region. These, if parliament decides, could be binding for the government and negotiating teams, said Mimica. Parliament will vote on the bills on Wednesday. (hina) ha

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