ECONOMY MINISTER SPEAKS ABOUT FREE TRADE WITH SLOVENIA

( Editorial: --> 7052 ) ZAGREB, Dec 9 (Hina) - Croatian Economy Minister Nenad Porges on Tuesday informed reporters about details from an agreement on free trade between Croatia and Slovenia, expected to be signed December 12 during the Slovene premier's visit to Croatia. Porges said the agreement envisaged a complete liberalisation, i.e. cancellation of customs duties, in the mutual exchange of some 80 per cent of industrial goods, and partial liberalisation for the rest, in line with four agreement annexes. Tariff rates of one, five, seven or ten per cent were envisaged for some 60 per cent of agricultural and food products within specific quotas, the minister said. In line with a World Trade Organisation criterion, the agreement envisaged that a maximum of 20 per cent of products could be submitted to gradual liberalisation. Negotiations had been based on the model of mutual talks among other member-countries of the CEFTA, Minister Porges said, adding attention was given to the degree of sensitivity of certain industrial products or sub-sectors. Gradual liberalisation was envisaged for some products, and a full cancellation of tariff rates around the year 2000, Porges added. Industrial products which were not on the lists were practically relieved of customs duties, while agricultural and food products not on the lists were subject to customs protection as until now, the minister said. The free trade agreement also contained protection measures and envisaged a temporary restriction of free trade in case of serious imbalances in a sector, or when goods are imported at unusually low prices, Porges explained. The Economy Minister was unable to answer numerous questions regarding the concrete influence the agreement would have on the prices of certain products. Prices would depend more on manufacturers and importers, he said. Many products within the lists and quotas should objectively become cheaper, he added. (hina) ha jn 091747 MET dec 97