The Commission adopted a document on Friday saying it supported prompt conclusion of a regional free trade agreement by the countries in the region. The document was presented at a press conference in Brussels by Enlargement Commissioner Olli Rehn.
Our aim is to boost trade and investment by transforming the existing network of bilateral free trade agreements into a regional free trade zone by the end of the first half of this year, Rehn said.
The creation of such a zone, as far as Croatia is concerned, should not be seen as an alternative to full membership, but as a possibility for further promoting trade within the region. I do not agree that the level of trade would be equally high with or without a well functioning regional free trade zone, Rehn said when asked how he would convince Croatian citizens that the zone was not a medium-term substitute for full membership.
He expressed confidence that Croatia would continue promoting regional cooperation as provided for under the Stabilisation and Association Agreement.
The European Commission also proposed that the Pan-European system of diagonal cumulation of origin should be expanded to include countries with which the EU had signed the Stabilisation and Association Agreement, notably Croatia, and Macedonia.
The system of diagonal cumulation of origin is aimed at facilitating the sale of goods on the EU market.
Promoting stability, security and prosperity in the Western Balkans represents one of the main priorities of the European Union. It is important to strengthen the region's European perspective. The prospect of eventual EU membership provides a powerful incentive for economic and political reform in the region and encourages reconciliation among its peoples, the document said.