EU TRADE BENEFITS TO EXPAND TO 95 PERCENT OF INDUSTRIAL GOODS

BRUSSELS, June 8 (Hina) - A European Commission motion to expand trade benefits on western Balkans countries, including Croatia, with tariff-free exports to the European Union market would refer to 95 percent of industrial products, EC expert services estimate. This would cover about 15 percent more industrial goods than the existing autonomous EU trade benefits for Croatia and Bosnia- Herzegovina. For 32 industrial products, according to the present regime, tariff-free import is still restricted by so called tariff ceilings: the EU Commission may set tariffs valid for all countries which are not EU members according to the surpassing of certain annual quotas. Dirk Boude, expert for trade relations with western Balkans countries, said the motion of new benefits of asymmetrical liberalisation of trade would abolish the current tariff ceilings for all 32 industrial products. This will make Croatia's export possibilities more favourable for mineral fertilisers, wood products and furniture, footwear, all products coming from ironworks and steelworks, ferroalloy, electromotors and transformers, various types of electrical cables, oil products, and others. Exemption from tariffs is a general principle which would cover agricultural products. According to Bouda, this is a very significant opening to the import of agricultural products. Exemptions from tariff-free import would remain in force for several products from the meat and fish category. The liberalisation of EU's import should give impetus to Croatia's export to the EU and trade in the region, as well as direct foreign investments in the manufacturing of industrial goods in Croatia, the EC estimates. The asymmetrical liberalisation of trade motion with western Balkan countries which the EC adopted yesterday will be forwarded to the EU Council of Ministers for final ruling. The motion does not include textile products, currently subjected to severe quantity restrictions. The issue should be settled with a separate agreement on textile trade with Croatia, Bosnia- Herzegovina, and Albania. The EC intends to settle the issue simultaneously. (hina) ha