"I suggested to Schwartz Schilling that CEFTA include Bosnia, Serbia-Montenegro, Macedonia, Albania and Moldova, and he has supported this idea," the Croatian premier told reporters after his meeting with the High Representative.
Sanader went on to say that CEFTA "is an excellent organisation for preparing new countries to qualify for the European Union", referring to Slovenia and Hungary.
The German diplomat said that he fully supported Sanader's proposal, adding that he would meet the European Enlargement Commissioner Olli Rehn next week in Brussels to discuss Sanader's proposal.
Schwartz Schilling said that he had congratulated Sanader for Croatia's candidate status for EU membership which the country got while he was its Prime Minister.
The German described it as a great success for the entire region.
Bosnia-Herzegovina should be a partner in the relations with Croatia, Schwartz Schilling said adding that in his capacity as the High Representative he would help promote partnership between the two neighbours.
Sanader and Schwartz Schilling discussed Bosnia's constitutional changes.
"Schilling has agreed with me that the constitutional changes should preserve the equality of all the thee peoples and ensure the functioning of Bosnia institutions," the Croatian premier said. He added that there could be no changes which would strip the Croats of their rights to be a sovereign, constituent and equal people.
The other two constituent peoples are Bosniaks (Bosnian Muslims) and Serbs.
Asked by reporters about the escape of Bosnian Croat indictees from Bosnia, including politician Ante Jelavic, whom a trial court in Sarajevo found guilty of white collar crime, Sanader said that Croatia would act in compliance with the rule of law in such cases.
Sanader reiterated that his country and Bosnia had the longest inter-state border in Europe and that Croatia would continue pursuing the policy of good neighbourly relations with Sarajevo.
The Croatian Prime Minister is the first foreign state official to have held official talks with Christian Schwartz Schilling since the latter recently stepped into office of the High Representative.