ZAGREB, June 4 (Hina) - Croatian Economy Minister Goranko Fizulic told a news conference in Zagreb on Sunday Croatia would join the World Trade Organisation according to the so called Baltic model. The minister spoke to reporters at
Zagreb's airport before departing for London and Dublin where he will brief investing bankers on Croatia's economic possibilities. "An agreement has finally been reached between Croatia, the European Union and the United States in connection with the remaining issue of audio-visual services within the WTO," the minister said, adding this paved the way for full-right membership in the WTO after 30 months of negotiations. On Saturday evening, Prime Minister Ivica Racan announced that all obstacles to Croatia's access to the WTO had been eliminated in the wake of the U.S. final consent to Zagreb's February 18 offer. "The Baltic model means that every European
ZAGREB, June 4 (Hina) - Croatian Economy Minister Goranko Fizulic
told a news conference in Zagreb on Sunday Croatia would join the
World Trade Organisation according to the so called Baltic model.
The minister spoke to reporters at Zagreb's airport before
departing for London and Dublin where he will brief investing
bankers on Croatia's economic possibilities.
"An agreement has finally been reached between Croatia, the
European Union and the United States in connection with the
remaining issue of audio-visual services within the WTO," the
minister said, adding this paved the way for full-right membership
in the WTO after 30 months of negotiations.
On Saturday evening, Prime Minister Ivica Racan announced that all
obstacles to Croatia's access to the WTO had been eliminated in the
wake of the U.S. final consent to Zagreb's February 18 offer.
"The Baltic model means that every European country, both EU
members and European countries joining the WTO, are free to
regulate through their national policy all issues related to the
distribution of films, video-tapes, sound recordings and the
like," said Assistant Economy Minister Neven Mimica.
The European policy advocates keeping preferential quotas for the
distribution of films with European content, whereas the U.S.
considers audio-visual services as product, dismissing any
limitations.
Given that WTO's Head Council next convenes on July 17, Fizulic said
Croatia insisted on an extraordinary session which would have
Croatia's access as one item on the agenda. Croatia's parliament
then ratifies the protocol which becomes effective after 30 days.
"By the end of August, Croatia could become a full-right member,"
the minister said.
Speaking about his trip abroad, Fizulic said an Economy Ministry
delegation would hold a non-deal road-show in London on Monday,
presenting new possibilities of investing in Croatia to Britain's
investing bankers. The same presentation will be held for Irish
bankers in Dublin the day after.
Croatia will also present the impending privatisation of state-
owned companies like oil and gas industry INA, power supply company
HEP, and insurance company Croatia Osiguranje.
Fizulic reminded the government recently formed a commission for
the privatisation of all public companies, comprising nine
ministers and headed by First Deputy Premier Goran Granic. Their
first task is to find a financial consultant for the second stage of
the privatisation of another 21 percent of Croatian Telecom (HT).
The economy minister expects the consultant will be appointed by
July 1 and evaluate the said 21 percent. A roadshow presentation in
the United States and Europe will ensue.
"The interest exists," Fizulic said, adding HT's value was not
below EUR3 and 3.5 billion.
Money from HT's privatisation will fill this year's budget, as a
bridge loan will be taken in the name of the privatisation in
October. The remaining sum goes to budgetary earnings for 2001, the
minister said.
The privatisation of HT is expected to be completed in May 2001, and
will be followed by the privatisation of INA and HEP.
First Deputy Premier Granic and HEP's chairman of the board will
join the Croatian delegation on a visit to Houston in the U.S. to
straighten out issues with the U.S. Enron company in connection
with the construction of Jertovec, a gas power plant in Croatia.
In Houston the delegation will outline a Croatian power supply
market reform programme, which the Economy Ministry finished eight
days ago and forwarded into government procedure.
"According to the reform, the future gas plant in Jertovec will have
the status of independent power manufacturer and be one in a series
of privately-owned plants offering their product, power, on the
market," said Fizulic.
He explained an existing Croatia-Enron contract was incompatible
with the future, reformed market, and that Croatia would suggest
changes. Fizulic reminded the European Bank for Reconstruction and
Development, which finances the Jertovec project, was "very
satisfied" with the new conditions, adding he expected Enron would
be willing to cooperate.
Speaking about the privatisation of HEP, Fizulic said he expected
it "in great part to be completed by the end of 2001." HEP's present
value is estimated between EUR2.4 and 2.5 billion.
(hina) ha