The talks focused on Croatia's preparations for receiving money from the SAPARD pre-accession fund, earmarked for the agriculture and rural development, the problem of excessive import of beef from the EU to Croatia and the possibility of opening negotiations on the introduction of quotas for the export of Croatian sugar.
Cobankovic told reporters after the meeting that the talks did not focus on the introduction of quotas for sugar, but that they only exchanged opinions about that issue.
The European Union wants to introduce quotas for sugar export, but this cannot be a unilateral decision because the Stabilisation and Association Agreement regulates that sugar can be exported without customs tariffs and quantity limitations. The European Commission has a mandate to launch negotiations with Croatia since March.
Cobankovic said that "Croatia, as a candidate country, cannot avoid the negotiations". He, however, stressed that Croatian producers would be protected.
"I am convinced that we can achieve a good position in the negotiations," Cobankovic said. He said that regardless of the introduction of possible quotas, Croatian producers must take into account the reform of the sugar sector in the EU which would lead to the reduction of sugar prices which would reduce Croatia's competitiveness.
Sugar is Croatia's main product exported to the EU. This year alone Croatia plans to export to the EU 170,000 tonnes of sugar worth some EUR100 million. The Opposition criticised the Government's readiness for opening the negotiations, saying that this wold destroy some 3,000 farmers and 1,300 people employed in the sugar industry.
Cobankovic said the Croatian Government was expected to adopt the negotiations platform next week.
He said that Commissioner Boel supported Croatia's plan to request from the World Trade Organisation to introduce tariffs due to the excessive import of baby beef.
In the first six month, Croatia imported over 3,500 tonnes of baby beef which is 8.5 percent more than the annual average in the period between 2000 and 2004. Should this trend continue, a total of 6,000 tonnes would be imported by the end of the year, which is ten percent of the domestic production.
Minister Cobankovic informed Commissioner Fisher Boel of the preparation for withdrawing funds form the pre-accession fund for agriculture and development (SAPARD). Next year, a total of EUR25 million from the fund would be available to Croatian farmers. Another EUR8.5 million would be added to this amount by which Croatia must co-finance programmes, financed from the SAPARD fund.