ECONOMY MINISTER ON TARIFFS FOR CRO GOODS IMPORT IN BH FEDERATION

ZAGREB, Dec 15 (Hina) - Croatian Economy Minister Nenad Porges on Tuesday said the Bosnian Federation's decision to introduce tariffs on imported Croatian goods would make part of Croatia's export less competitive. The Croatian government would consider ways of expediting negotiations on a trade agreement, Porges said. The Croat-Moslem Federation, one of Bosnia's two entities, on Tuesday issued a decision on the introduction of a ten percent average tariff on all imported goods, based on a decision of the international High Representative (HR) for Bosnia who stipulated that a customs law, passed last March, be strictly applied. The HR decision revokes a 1996 agreement between Croatia and the Federation which stipulated that the flow of goods in both ways be subjected to a one percent tariff. Porges said he was "a little surprised" the Office of the HR had reached such a decision at a time "when we are trying to add a new quality to mutual relations." The Economy Minister said he personally believed Croatia should not "counter" the Bosnian Federation's move given that Croatia's export greatly exceeds Bosnia's. The Croatian government would have to "seriously consider how to expedite everything regulating the entirety of relations, especially in light of the recently signed special relations agreement (between Croatia and the Federation) in which economic aspects have a dominant role," said Porges. Croatia's export to Bosnia at present exceeds US$500 million. (hina) ha jn