What does it actually mean for Slovenia to co-operate in regional networks such as CEFTA?

Slovenia, having become a signatory of CEFTA on January 1, 1996, has strengthened its economic and political position among Central European countries. CEFTA has played a major role in integration, increasing globalisation and liberalisation of trade. The proof of that is the readiness of most CEFTA members to join the EU, plus the level of trade, which went up substantially between 1996 and 2003. Ever since Slovenia has been a member of CEFTA, it has been recording growing trade. Slovenia's exports to CEFTA countries in 2002 went up by 15 percent, which is much higher than the 6-percent growth of total Slovenian exports. The trade deficit dropped from EUR 250m in 2001 to EUR 140m in 2002. I am sure that CEFTA will maintain its role and significance in the future as well.

In January 2003 Slovenia took on the one-year presidency of CEFTA. What is your assessment of our country's role in this international organisation?

CEFTA is not an international organisation; it is an agreement which established an area of free trade among its signatories. The great importance of this agreement is confirmed by the regular meetings of CEFTA prime ministers. Since the very beginning, the European Union has also been placing great importance on co-operation of the countries within CEFTA. Slovenia has always supported the liberalisation of trade within CEFTA and its openness to new countries in the region that meet the set criteria -membership in WTO and an association agreement with the EU. Slovenia's support has been shown in practice at the negotiations for CEFTA accession of Romania, Bulgaria and lastly Croatia.

After five CEFTA members join the EU in May next year a lot will change. An accord on changing the CEFTA agreement has been signed, but still, what will these changes bring about?

On the day of EU membership, the CEFTA agreement will cease to be valid for the new EU members. The legal basis for trade and commerce relations between Slovenia and other CEFTA countries to become EU members, or the remaining CEFTA signatories (Bulgaria, Croatia and Romania), will be the Accession Treaty or the association agreements between the EU and Bulgaria, Croatia and Romania. The agreement to change the Central Free European Trade Agreement was signed at a session of the CEFTA joint committee on July 4this year, which amended Article 41 of CEFTA on validity and cancellation of the agreement with a provision on ceased validity in case of EU membership. Previously, a signatory could cancel its membership in CEFTA with an official written note to the depositary six months in advance. Because of the relatively long cancellation deadline and because EU membership is a goal of all CEFTA signatories, the agreement was amended with a special provision on cancellation of membership in case of EU entry without preliminary official notification. Slovenia has already sent out cancellation notifications to all countries with which it has free trade agreements, except CEFTA countries, where cancellation will be automatic.
The association agreements between the EU, Bulgaria and Romania, which after EU accession will be valid for trade relations between Slovenia and these countries, foresee different trading conditions than are currently in place under CEFTA. Trade of industrial products will remain relaxed, while trade with agricultural products will be subjected to concessions in line with the association agreements. Although Bulgaria and Romania have already relaxed a great deal of trade with agricultural products, and trade has been relaxed within CEFTA, the customs duties on some agricultural products will change for Slovenia after EU entry.

And what about co-operation with neighbouring Croatia?

Co-operation with Croatia is less favourable, especially for Slovenian exporters. The association agreement between the EU and Croatia will be in place in trade relations between Slovenia and Croatia after Slovenia's EU membership. Based on Croatia's accession agreement to CEFTA and the bilateral free trade agreement, customs duties and other duties have been done away with between both countries in trade with industrial products since 2001. Trade with agricultural products has been highly relaxed, since 94 percent of the entire trade with agricultural products have been subjected to concessions (be it abolishment of customs duties or reductions in terms of quotas) or unlimited exports to Croatia. Of that, one quarter of the entire trade of agricultural products is made up of those with customs duties abolished completely.

Every year agriculture ministers meet as well. What are the latest findings in this area?

These meetings serve for the agriculture ministers to exchange views on topical issues of the CEFTA implementation in agriculture and current issues related to the EU or WTO. Formal decisions are not made at these meetings. This year's meeting took place on September 26 in Portorož, Slovenia. Agriculture ministers, or their deputies, exchanged stances on the situation of agriculture in national strategies and agricultural policies of CEFTA countries, as well as on the process of CEFTA countries joining the EU. The agriculture ministers stressed that CEFTA had made an important contribution to the economic development of its signatories. They also expressed the political will for co-operation with the aim that the other CEFTA members will become EU members as soon as possible.

How do you see the future role of CEFTA, especially from the point of view of the EU?

CEFTA has never been an alternative to the European Union. Membership in the EU is a goal of all CEFTA members. Five countries will attain this goal next year, while Bulgaria and Romania are to join the EU in 2007. Croatia too has made a step in this direction and applied to begin membership negotiations.
The readiness of the CEFTA countries, becoming members of the EU on 1 May 2004, to help the remaining CEFTA signatories achieve this goal soon, has been stressed on different levels. The last such occasion was at the session of a joint committee of CEFTA attended by economics ministers and at the meeting of agriculture ministers.
The question is what will happen to CEFTA in the coming years. By all means, CEFTA countries have always been open to new members. If this does not happen, CEFTA will probably "extinguish". Of course, outside of CEFTA, bilateral agreements between countries of Southeast Europe are being made within the framework of the Stability Pact. This is strongly encouraged by the European Union as well. Perhaps in the future there will be an interest that these bilateral agreements will grow into a multilateral free trade agreement.