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    The Central European Free Trade Agreement (CEFTA) is a trade agreement between Central European and Southeast European countries that aims to create a free trade zone. CEFTA originally formed in 1992 between Poland, Hungary, Czech Republic, and Slovakia. It was later expanded in 2006 to include additional Southeast European countries. CEFTA aims to reduce tariffs and non-tariff barriers to trade, promote investment, expand trade in goods and services, and foster cooperation between member countries. Current CEFTA members include Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia, and Kosovo.

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    The Central European Free Trade Agreement (CEFTA) is a trade agreement between Central European and Southeast European countries that aims to create a free trade zone. CEFTA originally formed in 1992 between Poland, Hungary, Czech Republic, and Slovakia. It was later expanded in 2006 to include additional Southeast European countries. CEFTA aims to reduce tariffs and non-tariff barriers to trade, promote investment, expand trade in goods and services, and foster cooperation between member countries. Current CEFTA members include Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia, and Kosovo.

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    158 views28 pages

    CEFTA

    Uploaded by

    lovleshruby
    The Central European Free Trade Agreement (CEFTA) is a trade agreement between Central European and Southeast European countries that aims to create a free trade zone. CEFTA originally formed in 1992 between Poland, Hungary, Czech Republic, and Slovakia. It was later expanded in 2006 to include additional Southeast European countries. CEFTA aims to reduce tariffs and non-tariff barriers to trade, promote investment, expand trade in goods and services, and foster cooperation between member countries. Current CEFTA members include Albania, Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia, and Kosovo.

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    of 28

    PRESENTED BY

    Central European Free Trade Agreement


    Trade agreement signed by Central European and South

    Eastern Countries
    including

    Covers a wide range of

    trade-related cooperation

    - Reduction of tariff barriers - Create favorable conditions for cooperation at the company level, transportation and infrastructure Harmonization of energy systems and telecommunication networks -Free mobility of Capital and Labor.
    Free Trade zone by December 2010.

    CEFTA AGREEMENT
    Original Agreement
    Signed by Visegrad countries Poland, Hungary, Czech, Slovak Signed on 21st December, 1992 in Kakrow, Poland It entered into force since July 1994

    CEFTA 2006

    Cefta extended to cover rest of the South East European countries Agreement came into effect from 2007 Areas covered CEFTA- Services, Investment, Government Procurement, Intellectual Property Rights

    PARTIES OF AGREEMENT
    Poland Hungary Czechoslovakia Slovenia Romania Bulgaria Croatia Macedonia Albania Bosnia and Herzegovina

    JOINED
    1992 1992 1992 1996 1997 1999 2003 2006 2007 2007

    LEFT
    2004 2004 2004 2004 2007 2007

    Moldova Montenegro
    Serbia UNMIK-Kosovo

    2007 2007
    2007 2007

    CURRENT MEMBERS

    ALBANIA

    BOSNIA AND HERZEGOVNIA

    MACEDONIA MOLDOVA

    CROATIA

    MONTENEGRO SERBIA UNMIK/KOSOVO

    MEMBERSHIP CRITERIA
    Membership with WTO Signing of an Association

    Agreement with EU
    Consent form of all Cefta

    States

    Organisation Structure and Working


    OFFICIAL BODY The Joint Committee Sub-committee on Agriculture and Sanitary and Phytosanitary Issues Sub-committee on Customs and Rules of Origin FUNCTIONS
    Supervise and administer the implementation of the Agreement Facilitate trade in agricultural products within the region

    Simplify and facilitate customs procedures, stimulate rapid implementation of the common rules of origin in all the Parties To identify, review and propose measures for elimination of technical barriers to trade and nontariff barriers among the parties. Provide technical and administrative support to the Joint Committee, to any sub-committee, expert group or any other body established by the Joint Committee

    Sub-committee on Technical Barriers to Trade and Non Tariff Barriers CEFTA Secretariat

    STRUCTURE OF CEFTA 2006

    CEFTA 2006 consists of a main text, nine anexes and four

    common declarations.
    Main text has 52 articles in total. They provide the geneal

    provisions for all isses governed by the agreement. The areas that require a more detailed regulation are treated in the annexes.
    Annex 1 to Annex 9 ( liberalization in agricultural and industrial

    product, concessions, rules of origin, customs assistance, promotion of investment, appointing a mediator, arbitration)
    Common declaration (apply the rules and procedures of the

    World Trade Organisation, cooperation and assistance, on Articles 20 and 21, on Articles 22 and 23)

    OBJECTIVES OF CEFTA
    Consolidate in a single agreement trade

    liberalisation achieved through the network of bilateral free trade agreements

    Promote Investment including FDI


    Expand trade in goods and services Foster investment by means of fair,

    clear, stable and predictable rules

    Eliminate barriers to trade

    Provide fair conditions of competition affecting foreign

    trade and investment


    Protection of Intellectual property rights
    Includes clear and effective procedures for dispute

    settlement
    Provides an excellent framework for the parties to prepare

    for EU accession

    GOALS
    CEFTA 2006 was initiated and concluded for the achievement of the following goals:

    Consolidating of the existing level of liberalisation through the network of bilateral free trade agreements. and facilitating the movement of goods in the region.

    Eliminating barriers for trade in goods and services

    Encouraging trade and investments by applying

    equitable, understandable and predictable rules.


    Creating equal conditions for all business entities as

    pertains to access to the markets in the region.


    Gradual

    opening of the markets procurement in the SEE countries.

    for

    public

    Enhancing

    intellectual property protection in compliance with applicable international standards.

    General Obligation Applicable to


    Trade In All Goods
    Quantitative Restrictions Custom Duties on Exports Custom Duties on Imports Custom Fees Concessions and Agricultural Policies Sanitary and Phytosanitary Measures

    New Trade Topics


    Investment
    Services Government procurement Protection of Intellectual Property Rights

    RELATION WITH EUROPEAN UNION


    CEFTA has served as a preparation for full EU membership Poland, Czech Republic, Hungary, Slovakia and Slovenia

    joined EU on 1st May 2004


    Croatia expected to join the EU by 2012 A large proportion of CEFTA foreign trade is with EU

    countries

    KEY ECONOMIC AND TRADE INDICATORS(2008)


    COUNTRIES/ PARAMETER S EXPORTS TO CEFTA( IN MN) IMPORTS FROMTO CEFTA ( IN MN) 298 GDP IN MN CEFTA EXPORTS TO GDP RATIO( IN %) 1.5

    ALBANIA

    125

    8364

    BOSNIA AND HERZEGOVA NIA


    CROATIA MACEDONIA

    1529

    2916

    12649

    12.1

    2253 922

    1051 511 1227 1216 705

    47165 6477 3393 34055 3804

    4.8 14.2 4.7 7.2 2.4

    MONTENEGR 159 O SERBIA KOSOVO 2458 93

    BENEFITS
    Reducing/eliminating customs duties and introducing

    disciplines on non-tariff barriers to trade among CEFTA 2006 members.


    Provisions that regulate the relationships among its

    members in several new trade areas (services, public procurement, investments, protection of intellectual property).

    Mandatory application of the rules of the World Trade Organization in all areas of trade members.

    Abolishing of export subsidies in the trade among the Three possibilities for rules of origin ( CEFTA cumulation,

    CEFTA + cumulation and SAP cumulation )

    The Share of CEFTA Countries in Croatian Exports and Imports 2001 - 2012
    25.0%

    20.0%
    6.3% 15.0% 3.2% Albania 10.0% 14.4% 12.0% 5.0% Macedonia

    Moldova

    1.2% 3.0%
    0.0%

    25.0%

    The Share of CEFTA Countries in Slovenian Exports and Imports 2001 2012

    20.0%

    7.3%
    15.0% 2.5% 4.2% 4.3% 10.0% 3.6% 2.6%

    Moldova Albania Macedonia

    1.7% 5.0% 8.6% 9.1% 8.3% 1.6%

    3.9% 0.0%

    Trade framework in 2013 will be much different


    Some countries will become the EU members, adopting the

    EU trade policy
    Others will be implementing the SAA, liberalizing trade

    towards the EU
    World trade liberalization and globalization will bring fierce

    competition to all the SEE markets


    Business community shall be well informed about these

    processes not to make wrong decisions

    The objective to eliminate barriers to trade between

    the Parties includes provisions for the elimination of Non-Tariff Barriers (NTBs), which fall within the mandate of certain structures created under CEFTA:
    The Subcommittee on Technical Barriers to Trade

    (TBTs) and NTBs, the Subcommittee on Agriculture and Sanitary and Phytosanitary (SPS) Issues, and the Subcommittee on Customs and Rules of Origin.

    The CEFTA Parties have already introduced a system of

    regular identification of NTBs. It is important to categorise accurately what kind of NTBs is affecting the trade among CEFTA Parties since different types of NTBs will require different solutions.

    Therefore, the OECD developed, in consultation with the CEFTA Secretariat and trade experts a Multilateral Monitoring Framework (MMF),
    composed of sets of indicators for each of the key NTBs

    areas, with the aim of establishing an instrument for the coordination of actions for the elimination of NTBs at multilateral level, complementing the actions already taken by the Parties at bilateral level.

    The meeting of the CEFTA Sub-committee on NTBs

    and TBTs, held in Sarajevo in June 2011, formally endorsed the selection of the 12 priority sectors (and corresponding priority products), and agreed that Parties would undergo monitoring based on the MMF to support the reduction of NTBs.
    CEFTA Contact Points were to co-ordinate replies from

    relevant institutions and ensure all replies were submitted to OECD by 5 September 2011 latest.

    CONCLUSION
    CEFTA 2006 is an exceptionally important step in the efforts for regional cooperation and integration of the region. In the very period before its entry into force, all its members will have to do everything necessary for the Agreement to come to life and not to become just an international document that looks great on paper. To present, in spite of the existence of bilateral free trade agreements, with some exceptions, the region could not achieve a satisfactory level of foreign trade exchange. Having said that, it can be concluded that the creation of a legal framework for free trade and other types of cooperation in the region is only one component of the process.
    Another aspect is the manner in which the CEFTA 2006 signatories and their business entities will use the opportunities offered by the already existing legal framework. In this context, decisive will be the readiness of the governments to adjust their national economic policies to the new conditions created with CEFTA 2006, as well as the ability of their business entities to prepare and concur new markets and opportunities.

    THANK YOU

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