cefta 2006 implementation - institutional and policy perspectives d-r silvana mojsovska institute of...
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CEFTA 2006 implementation - institutional and policy
perspectives
d-r Silvana Mojsovska
Institute of Economics - Skopje
d-r Krum Efremov
Ministry of foreign affairs, Macedonia
d-r Marija Ackovska
Institute of Economics - Skopje
International Conference – Regional Trade Integration of Southeast European Countries: Benefits and Challenges
Skopje, 12 December 2011
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Content
WTO and CEFTA 2006 Classification of measures raised by the CEFTA
2006 parties Institutional issues related to CEFTA 2006
implementation Volume and structure of the CEFTA 2006 intra-
regional trade CEFTA 2006 parties’ policies compliance
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WTO and CEFTA 2006
Basis – GATT Article 24 System of protection
Anti-dumping measures (Art. 22/CEFTA 2006) – Art. VI/GATT)
General safeguards (Art. 23/CEFTA 2006) – Art. VI/GATT Temporary measures (Art. 23bis/CEFTA 2006) Balance of payment difficulties (Art.25/CEFTA 2006)
Common declaration for implementation of the WTO rules and procedures
Mediation – means for fulfilment of the obligations (Art. 42/CEFTA 2006)
Dispute resolution by Arbitrage (Art. 43/CEFTA 2006)
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WTO and CEFTA 2006 Article 23 bis/CEFTA 2006
… given the particular sensitivity of the agricultural market, if imports of products originating in one Party, which are the subject of concessions granted pursuant to Annex 3, cause serious disturbance to the markets or to their domestic regulatory mechanisms, in another Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such solution, the Party concerned may take the appropriate measures it deems necessary.
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Classification of measures raised by the CEFTA 2006 parties
Special activities/measures with impact on the trade of the CEFTA 2006 parties
Issues raised between CEFTA 2006 parties in the period 2007-2011 Agriculture - 46 issues (mainly related to phytosanitary
measures) Industry – 5 issues (mainly related to technical barries of
trade) Combined (agriculture and industry) – 14 issues (mainly
related to the nontariff barriers)
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Classification of measures raised by the CEFTA 2006 parties
Issues raised in agriculture: Complicated and expensive inspection procedures Introduction of safeguards and import prohibition without
notice Means of quotas allotment and abolition of concessions Prices of inspection and customs offices’ services Vine categorization Customs valuation of the import prices Obligations for products’ labeling Quantitative export restrictions Different excise rates for tobacco products Re-assessment of the rules of origin certificates Non-recognition of the phytosanitary certificates
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Classification of measures raised by the CEFTA 2006 parties
Issues raised in industry: Non-sufficient transparency of the public
procurement procedures Non-recognition of the different types of licenses for
sub-contracting jobs Favoring domestic companies on tender procedures Complicated procedures for registration and mutual
recognition of the medical production Partial recognition of the certificates of rules of
origin and EUR1
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Classification of measures raised by the CEFTA 2006 parties
Combined measures (industry and agriculture): Practice of adoption of legislation without
notification to the other parties Procedures of customs valuation by referent prices Procedures for obtaining transport licenses for
transit Trade embargo Introduction of additional taxes Mutual recognition of customs offices stamps Verification of EUR1 according to the rules of origin Access to the information for import/export
procedures
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Institutional issues related to CEFTA 2006 implementation
Relation between the institutions and measures Measures related/deriving to/from policies (usually foreign
trade policy Introduction of different safequards Adoption of the regulation without proper notification
Measures related to the implementation of CEFTA 2006 Agreement
Different procedures and taxes related to customs procedures
Non-recognition of the standards, licenses and other trade documentation
Non-sufficient transparency and in-time notification of the introduced measures
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Institutional issues related to CEFTA 2006 implementation
Treatment of the institutional issues within CEFTA 2006
Joint bodies of the CEFTA parties Joint Committee
Sub-committee for agriculture, including sanitary and phytosanitary measures
Sub-committee for tariffs and goods origin Sub-committee for technical barriers in trade
and non-tariff barriers Increase of the transparency
CEFTA 2006 web portal Exchange of information
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Volume and structure of the CEFTA 2006 intra-regional trade
Table 1. Export within CEFTA 2006 and to EU
0
20
40
60
80
100
120
2006 2007 2008 2009 2010
ЦЕФТА-ЕУ извоз
Интра ЦЕФТА извоз
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Volume and structure of the CEFTA 2006 intra-regional trade
Table 2. Most exported products within CEFTA 2006 (data refer to 2010)
Albania Bosnia and Hercegovina
Croatia Macedonia Moldova Montenegro
Serbia Kosovo
Iron and steel Х Х Х Х Х Х Mineral fuels Х Х Х Х Х Х Х Aluminium and aluminium products
Х Х Х
Iron and steel processed products
Х Х Х
Beverages, alcohol and vinegar
Х Х Х Х Х
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Volume and structure of the CEFTA 2006 intra-regional trade
Table 2. Most imported products within CEFTA 2006 (data refer to 2010)
Albania Bosnia and Hercegovina
Croatia Macedonia Moldavia Montenegro
Serbia Kosovo
Iron and steel
Х Х Х Х Х Х Х
Mineral fuels
Х Х Х Х Х Х Х
Sugar and sugar processed products
Х Х Х
Iron and steel processed products
Х Х Х
Paper and paper products
Х Х Х
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CEFTA 2006 parties’ policies compliance
Linkages of the national policies Foreign trade policy – industrial policy
Limited diversification of the export offer Foreign-trade policy – foreign exchange rate policy
Pegged exchange rate – stability instead of growth promotion?
Compliance of the domestic policies Main mechanism – undertaking safeguards
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CEFTA 2006 parties’ policies compliance
CEFTA 2006 Agreement implies: Mutual notification of the parties about changes
in the agricultural policies General compliance of the national policies for
investment (through the Joint Comittee of CEFTA 2006)
Exchange of information about the introduced measures
Purposeful or indirect harmonization? Purposeful compliance or harmonization is rather
exception, then rule (principle of sovereignty of the national states in formulation of the national policies)
Indirect harmonization aiming towards increase of the intra-regional trade
Rather exceptional then regular and systematic activity in CEFTA 2006 parties
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Conclusions
The main issues related to the implementation of CEFTA 2006 include introduction of safeguards, adoption of regulation without proper notification to the other parties, differentiation of the customs procedures and non-recognition of the standards
There is a need for further deepening of the institutional cooperation at the operational level within and among CEFTA 2006 parties
The policies’ compliance of the national policies within and among the CEFTA 2006 parties is rather limited on ad-hoc problems
More systematic approach towards policies compliance could be a solid platform for increase of the static and dynamic effects of CEFTA 2006