CEFTA 2006 Improving Regional Trade in South Eastern Europe USAID: RCI Annual Forum Bucharest 1 November

Stability Pact for SEE n Political Framework to initiate and develop regional co-operation processes in SEE n Members: SEE countries and territories and the international community n 3 areas of operation: democracy, economic development and justice and home affairs and security

Regional Trade Policy n SP Trade Working Group – SEE countries, EC, WTO, bilateral governments incl USA n 2001: MoU on Trade Policy and Facilitation n 2006: 32 bilateral free trade agreements n 2005: agreement to consolidate bilateral FTAs into a single FTA n April 2006: SEE Prime Ministers meeting – enlargement and amendment of the Central European Free Trade Agreement (CEFTA)

Status of CEFTA Agreement n Four rounds of negotiation between June 2006 and October 2006, chaired by the SP n November : Agreement to be initialled n December : Agreement to be signed at CEFTA Summit of Prime Ministers in Bucharest n January 2007: EU Accession of Romania and Bulgaria n July 2007: Entry into force – replacing bilateral FTAs

Key Features of CEFTA 2006 n Modern, ambitious and inclusive FTA n Liberalisation of industrial goods – 2008 n Further Liberalisation of agricultural goods n Harmonisation of trade rules and procedures n Reduction of Technical Barriers to Trade n Common system of rules of origin

Key Features of CEFTA 2006 n Investment Promotion n New areas: Trade in services, intellectual property, government procurement n Strengthened dispute settlement mechanism n Strengthened institutional support framework

Other Issues n Non-tariff Barriers incl customs co- operation n Infrastructure n Information

Further Information n