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78% OF FOREIGN TRADE TO BE REALISED IN LINE WITH FREE TRADE REGIME AS OF JAN. 1

ZAGREB, Dec 31 (Hina) - As of January 1, 2002, around 78% of Croatia's foreign trade will be realised in line with the principle of free trade, which means that most industrial exports and imports will have a zero duty rate while agricultural and food products will be traded with mutual concessions. Croatia enters 2002 with ten free trade agreements signed with 27 countries. It previously signed and has been implementing free trade agreements with Slovenia, Macedonia and Bosnia-Herzegovina, and 2001 saw a record number of free trade agreements. This year Croatia signed free trade agreements with Hungary, the Czech Republic, Slovakia, Bulgaria, Poland, and the countries of the European Free Trade Association (EFTA), as well as a Stabilisation and Association Agreement with the European Union. Most of these agreements will go temporarily in force on January 1, 2002.
ZAGREB, Dec 31 (Hina) - As of January 1, 2002, around 78% of Croatia's foreign trade will be realised in line with the principle of free trade, which means that most industrial exports and imports will have a zero duty rate while agricultural and food products will be traded with mutual concessions. Croatia enters 2002 with ten free trade agreements signed with 27 countries. It previously signed and has been implementing free trade agreements with Slovenia, Macedonia and Bosnia-Herzegovina, and 2001 saw a record number of free trade agreements. This year Croatia signed free trade agreements with Hungary, the Czech Republic, Slovakia, Bulgaria, Poland, and the countries of the European Free Trade Association (EFTA), as well as a Stabilisation and Association Agreement with the European Union. Most of these agreements will go temporarily in force on January 1, 2002. Free trade agreements are a significant contribution of the Croatian government to the liberalisation of foreign trade and provide an opportunity to increase experts and stimulate foreign investments, Assistant Economy Minister Olgica Spevec said at a news conference in Zagreb on Monday. In 2002 Croatia plans to become a full member of the Central European Free Trade Agreement, sign a free trade agreement with Yugoslavia, and hold consultations on such agreements with Israel and Baltic countries. The new year will see the start of implementation of a new decree on customs tariffs, with tariff marks and regulations which are valid in the entire Europe, and a decree on customs quotas for agricultural and food products. As of January 1, 2002, the granting of the quotas will no longer be within the competence of the Economy Ministry but be transferred to the Agriculture and Forestry Ministry. This year has already seen some results of market liberalisation, including a lower inflation rate, which in the first 11 months was 2.8%, Spevec said. One can expect that inflation will not rise in 2002 and that prices will stabilise and even drop, she added. (hina) rml

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