GOVT EXPECTS ACCORD ON FREE TRADE ZONE WITH SLOVENIA TO BE SIGNED

( Editorial: --> 5941 ) ZAGREB, Dec 4 (Hina) - The Croatian government on Thursday accepted a report by a Croatian delegation on negotiations with Slovenia for an agreement on a free trade zone. Economy Minister Nenad Porges said the agreement would enable the abolishment of customs duty for 80 per cent of industrial produce as of 1 January next year. For other 'sensitive' products, a gradual abolishment would be agreed on, and the products would be grouped into several categories. The transitional period would last until the year 2001, after which trade would be completely liberalised. Under the agreement, customs duty for less sensitive agricultural products would be one per cent, and for sensitive products, a certain size of contingents would be set and the customs duty would amount to five to ten per cent, Porges said. Announcing that the Slovene Prime Minister Janez Drnovsek would visit Croatia in the next ten days, Croatian Prime Minister Zlatko Matesa expressed hope that the free trade agreement between the two countries would be signed. Finance Minister Borislav Skegro stressed the Croatian government should accelerate negotiations and the signing of such agreements with other countries. Foreign Minister Mate Granic said that in the next year, Croatia should complete negotiations with CEFTA member countries and fulfill conditions in order to enter this organisation, as well as the World Trade Organisation. He announced that negotiations on cooperation between Croatia and the European Union would begin next spring. Construction and Housing Minister Marko Sirac said the government's programme of construction of 112 houses for totally invalid veterans of the Homeland War had been realised. (hina) lm jn 041705 MET dec 97