EXCHANGE OF GOODS BETWEEN CROATIA AND BOSNIA SLUMPS

SARAJEVO, Aug 20 (Hina) - Trade between Croatia and Bosnia- Herzegovina has registered a fall in the past six months, in relation to the same period last year, primarily due to the introduction of a customs regime between the two countries which came into effect in May, director of the Croatian Chamber of Commerce branch office in Bosnia-Herzegovina, Miroslav Franjkovic, said in Sarajevo Friday. During a talk with reporters in Sarajevo, at which were also present representatives of some Croatian companies in Bosnia-Herzegovina, Franjkovic said Croatia had exported US$272 million worth of goods into Bosnia-Herzegovina and imported goods worth US$58 million from this country in the past six months. Croatia's total export into Bosnia thus plummeted by eight per cent, and imports into Croatia by 13.3 per cent, but Franjkovic holds the final results of the trade between the two countries could reach the level of 1998 by the end of the year. He said the two countries had already reached a maximum in trade, so stronger forms of economic cooperation should be established, such as joint investments, joint production programmes and joint appearances on third markets, as well as new technologies. "In order to do this, however, it is necessary to create certain conditions, primarily a political atmosphere, implement a fair and just privatisation and join the World Trade Organisation," Franjkovic said. He stressed the economy of no country of the southeast of Europe can survive on its own little market, so the right solution for countries of the region would be to establish a free custom zone, which has its foundations in the recently signed Stability Pact for the southeast of Europe. (hina) lml