EXTENDED - RACAN, PRODI LAUNCH NEGOTIATIONS ON SAA

ZAGREB, Nov 24 (Hina) - Croatian Prime Minister Ivica Racan and European Commission president Romano Prodi launched at the Zagreb Summit on Friday negotiations on a Stabilisation and Association Agreement (SAA) between Croatia and the European Union. The SAA is an instrument of integration into Europe, and by its signing a country becomes a potential candidate for full membership in the EU, said Prodi. He added the EC suggested intensive negotiations on the SAA should open in Brussels before Christmas. The SAA will provide for political dialogue on a high level and conditions for the establishment of a Croatia-EU free trade zone, even though most Croatian products are exempt from paying tariffs to access the European market, said Prodi. He added it would also provide for cooperation in combating organised crime and illegal immigration, and access to EU technical know-how. In signing the SAA, the characteristics of each country participating (Croatia, Bosnia, Yugoslavia, Macedonia, and Albania) are taken into consideration. We envisage a whole cooperation network which will help in normalising relations, Prodi said. Prime Minister Racan said: "Croatia embarks on the Stabilisation and Association Agreement negotiations determined to bring them to a successful end as soon as possible... (and) in the course of 2001... will apply for full membership in the European Union." The EU Council of Ministers on Nov. 20 bound the European Commission to begin the negotiations with Croatia which, according to announcements by domestic officials, could wrap up within six months. The SAA will be the first contractual relationship Croatia is signing with the EU. It is a new form of contractual relations the EU has intended for five Southeast Europe countries. Racan welcomed EU's decision to launch the negotiations, saying Croatia would soon show and prove that it was not a "potential, but a real candidate for membership." (hina) ha jn