Albania and Kosova join nine new partners of the New CEFTA Agreement

TIRANA, Dec.19 – The Central European Free Trade Agreement (CEFTA) welcomed on Tuesday nine new members from southeast Europe. Nine countries plus Kosovo signed an agreement which enlarged the free trade zone and realized yet another important step towards the European Union. The new members of CEFTA are Albania, Bosnia and Herzegovina, Moldova, Montenegro, Serbia and Kosovo. The event took place in Romania and was greeted especially by the Romanian Prime Minister Calin Popescu Tariceanu and European Union Enlargement Commissioner Olli Rehn in two separate statements. Tariceanu said that “It is my strong belief that the new CEFTA will represent an engine for economic growth and stability in the region and will enhance regional integration in an area where we believe the existing potential is huge. I express my hope that the parties will make an additional effort to ratify the agreement in order to allow it to enter into force by May 2007, so that they enjoy the full benefits of trade integration as soon as possible.” Olli Rehn’s statements added that: “The CEFTA complements the EU’s stabilization and association agreements for the countries of the western Balkans. It makes an important contribution to economic development and regional co-operation. For the [EU] candidate and potential candidate countries, CEFTA is a stepping stone towards the closer economic cooperation that is an inevitable part of membership of the European Union.” The initiative which created a common market of some 29 million people was fist resisted by some countries with special needs of economic protectionism such as Bosnia and Serbia. The other eight parties initialed the new CEFTA in November. It was undertaken by the Stability Pact for Southeast Europe and the European Union. Bosnia signed the agreement after more favorable conditions for its farm products with neighboring Croatia. Serbia had to consider its interest in the tobacco industry, which in the past few years has attracted big investors like British American Tobacco, Philip Morris and Japan Tobacco. The country has relatively low taxes on cigarette imports but protects its producers with high excise duties. Initially it decided to stay apart, however, later decided to sign the CEFTA deal and try to solve the outstanding issues before ratification next year, according to Serbian government officials. Poland, Hungary, Slovakia and the Czech Republic founded the CEFTA in 1992 to help countries aspiring to EU membership to harmonize their economic and legal systems with EU standards. Slovenia, Romania, Bulgaria, Croatia and Macedonia joined later and as each country entered the EU they leaft CEFTA. Bulgaria and Romania will leave in January 2007.