After day-long consultations, Serbia and Bosnia and Herzegovina refused to initial the document which will be signed in Bucharest on December 19.
The agreement was initialled by Croatia, Bulgaria, Albania, Macedonia, Moldova, Montenegro, Romania, and the United Nations Mission in Kosovo/Kosovo.
Representatives of all 10 parties in the negotiations signed joint minutes confirming that the door remains open for Bosnia and Herzegovina and Serbia to sign the agreement at the Bucharest meeting of prime ministers.
According to a statement from the Stability Pact for South Eastern Europe, those two countries were unable to withdraw their reservations today but have until mid-December to accept the text and sign it at the CEFTA summit in Bucharest.
According to the joint minutes, Bosnia and Herzegovina and Serbia underlined their attachment to the amended CEFTA and their interest to find a solution acceptable for all by December 12 so as to be able to sign the agreement.
Bosnia and Herzegovina wanted a better solution for several agricultural products than the one it currently has in bilateral free trade agreements with Croatia and Serbia, wanting better protection for domestic goods.
Serbia wanted a better position for its tobacco industry than the one it has in bilateral free trade agreements with the other parties in the negotiations.
The starting point in the negotiations was not to go below the solutions already agreed in bilateral deals.
After Bulgaria and Romania join the European Union on January 1, thus leaving CEFTA, six countries will comprise this association unless Serbia and Bosnia and Herzegovina join in the meantime.
The Croatian delegation in the negotiations was led by Vladimir Vrankovic, state secretary at the Ministry of the Economy.
The agreement on the amended and enlarged CEFTA is expected to go into force by the summer of 2007.
Vrankovic said the text of the agreement would no longer be negotiated, which means that Bosnia and Herzegovina and Serbia can either join CEFTA in accordance with today's deal or give up.