FREE TRADE AGREEMENT WITH BOSNIA TO BE SIGNED SOON - FIZULIC

ZAGREB, Nov 2 (Hina) - Economy Minister Goranko Fizulic said on Thursday an agreement on free trade with Bosnia and Herzegovina would be signed in Zagreb in November, to come into effect on Jan. 1, 2000. Fizulic said the economy ministry concluded negotiations on free trade with Hungary, the Czech Republic, Slovakia, and Poland. Negotiations with the European Free Trade Association have begun, and this month Croatia will also begin negotiations with the European Union on a stabilisation and association agreement. Asked about a recent increase in the prices of some oil products, the minister said parliament would soon be submitted with a whole series of bills related to power company HEP and oil company INA and their status on the market. Both companies need to prepare for privatisation, which envisages putting and end to their monopoly of the market, he said. This will not succeed if the government continues to control prices as it has done until now, Fizulic added. The two companies' management boards have to be given the full right to make independent decisions on their position on the market and on prices, in line with development and success requirements, said the minister. He expects the sector will be fully liberalised in 2001. First, however, an independent body has to be established to set regulations and market rules, he concluded. (hina) ha jn