RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/227 
17 February 2010  
 
(10-0867) 
Trade Policy Review Body Original:   English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
CROATIA 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Croatia is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Croatia. Croatia WT/TPR/G/227 
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CONTENTS 
 
 Page 
I. INTRODUCTION 5 
II. ECONOMIC ENVIRONMENT 6 
 (i) Economic trends 6  (ii) Trade policy developments 7 
    Licences, export/import controls  8 
    Consumer Protection  8 
 (iii) Privatization 8 
 (iv) International competitiveness and internationalization 8  (v) Foreign investments 9 
 (vi) Free zones 10 
 (vii) Small and medium sized enterprises 10  (viii) Intellectual property 10 
 (ix) Competition Policy 10 
III. ECONOMIC POLICY PRIORITIES 11 
 (1) D
ETERMINANTS OF CROATIA 'S FOREIGN TRADE POLICY  11 
 (i) Croatia and the WTO 11 
 (ii) Croatia and the EU 12  (iii) Free trade agreements 12 
 (iv) Aid for trade 12 
 (2) S
ECTORAL POLICIES  12 
 (i) Agriculture 12 
 (ii) Fisheries 13 
 (iii) Forestry 13  (iv) Industry 13 
    Food and Beverages  14 
    Shipbuilding Industry  14 
    Chemical Industry  14 
    Textile Industry  15 
    Wood processing industry  15 
 (v) Energy 15 
 (vi) Services 16 
    Financial services  16 
   Transport  16 
    Road Transport  16 
    Air Transport  16 
    Maritime transport  17 
    Electronic communications  17 
    Tourism  17 
IV. CROATIA AND DOHA DEVELOPMENT ROUND OF MULTILATERAL TRADE  
NEGOTIATIONS 18 
V. CONCLUSION  20 
  
 Croatia WT/TPR/G/227 
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 I. INTRODUCTION 
1. The Republic of Croatia, as the 140th member of the World Trade Organization (WTO) since 
30 November 2000, in accordance with the obligatio n arising from this membership is presenting its 
first Trade Policy Review.  In this context, Croatia is fully aware of the significance of the opportunity 
to fulfil this obligation and to carry out this regular assessment and evaluation of the Croatian trade 
policy and practice. 
2. In the past years the international position of Croatia has been strengthened in all the aspects 
of the foreign policy:  in the field of European integration, by joining NATO and becoming UN Security Council's non-permanent member;  deve lopment of good neighbourly relations and 
improvement of regional cooperati on, as well as the entire positioning within the international 
framework.  
3. The great progress of the Croatian economy is best reflected in the figures that the World 
Bank ranks among the upper middle-income and a full-fl edged market economy.  From the country in 
transition at the end of 20
th century, Croatia has stepped forward into the 21st century as a country 
whose growth and development are enviable.  
4. Croatia's membership of the WTO was a ba sis for building an open and strong economy 
integrated in the European and global market, with  the increase of domestic industry's efficiency and 
competitiveness and the growth of exports.  Expand ing of the market for Croatian products was and 
still is an imperative without which further growth and development could not be expected.  Precisely 
the Croatia's membership of the WTO has marked the periods of further liberalization, market 
opening and Croatian export incentive.  The WTO membership was thus the first step towards 
European and regional economic integration processes, a precondition and a step towards the EU 
membership, CEFTA, agreements with EFTA and Tu rkey and through them to the global economy.  
5. Croatia applied for the EU membership in February 2003.  In April 2004 the European 
Commission issued "a positive opinion" on the Croatia n application for the EU membership and in 
October 2005 the negotiations formally started.  Until the end of November 2009, out of the total 
number of 35 negotiating chapters of the acquis communautaire,  Croatia opened 28 chapters of which 
15 have been temporarily closed.  Although the bor der issue with Slovenia held back the accession 
negotiations in the course of 2009 Croatia is neari ng the final stage of accession negotiations with the 
EU.  Croatia expects that the accession negotiations as well as the technical work on drafting of the Accession Treaty will be finalised by the end of 2010.   
6. Following the admission to the WTO Croatia joined CEFTA and concluded Free Trade 
Agreements with EFTA and Turkey respectively.  The conclusion of these agreements has largely 
contributed to the expansion of the markets for Croatian products, investments and economic 
cooperation strengthening.  
7. Croatia has concluded 43 international agreem ents in the area of trade and/or economic 
cooperation and additional 10 agreements taken over through succession are in force.  The goal of 
these agreements is to foster and improve overall economic relations and coop eration between Croatia 
and other countries.  In addition, Croatia has conc luded 57 bilateral investment treaties in order to 
enable greater presence of Croatian investors in  other countries with simultaneous investment 
opportunity for foreign investors in Croatia.  As of  1 January 2010, Croatia applies 50 agreements on 
avoidance of double taxation.  A smaller part of these agreements were taken over through succession 
in 1991. Other agreements are based on the OECD  Model Tax Convention on Income and Property. WT/TPR/G/227 Trade Policy Review 
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 8. This Trade Policy Review is being prepared in  the time of the global financial crisis and 
recession that is reflected in the Croatian econo my as well.  Croatia has undertaken a series of 
economic policy measures to stop negative trends and to come back to the path of progress.  
II. ECONOMIC ENVIRONMENT 
(i) Economic trends 
9. In 2008, as a consequence of the economic cris is spill-over, economic activity slowed down. 
Real GDP growth amounted to 2.4%, or 3.1 percenta ge points less than the growth registered in 2007 
and at the same time the lowest registered gr owth rate since 1999.  In 2008, goods and services 
imports increased by 3.6%, in real terms, whereas  the real growth of goods and services exports 
amounted to 1.7%.  Government expenditure has regi stered a real growth of 1.9%, while the growth 
of personal consumption slowed down to 0.8%, which is the lowest registered rate since 1999.  The 
main generator of economic growth in 2008 were i nvestments in fixed capital, primarily initiated by 
strong construction activity, and their contribution to GDP growth amounted to 2.3 percentage points.  
Personal consumption with its contribution to GDP growth amounting to only 0.6 percentage points 
had the most significant impact on the slow-down of economic growth in 2008.  
10.  The nominal GDP growth in 2008 amounted to 8.9%, thus reaching a nominal amount of 
EUR 47.4 billion.  GDP per capita increased to about EUR 10,700 in 2008. Measured according to purchasing power parity, it reached 63.0% of the aver age GDP per capita of the EU 27.  In the first 
quarter of 2009, GDP registered a real interannual decrease of 6.7%.  All the components on the GDP 
expenditure side, except government expenditure, rea lly decreased on the inter-annual level in the first 
quarter.  The largest decrease was registered in  goods and services imports  (-20.9%) and goods and 
services exports (-14.2%).  Investments in fixed ca pital were reduced by 12.4% in real terms as 
compared to the first quarter of 2008; personal c onsumption has registered decrease of 9.9%.  In the 
first quarter of 2009, real growth of government expenditure amounted to 3.9%.  
11.  Croatia's key goal in the conditions of the economic crisis was to preserve macroeconomic 
stability and to create conditions for the recovery and stable economic growth.  In  2009 a real drop of 
GDP by 5.0% is expected.  
12. During 2009, Croatia has undertaken a series of measures with the purpose of combating the 
impacts of the crisis and to ensure the stability a nd liquidity of public finances.  A package of 10 
antirecession measures was therefore adopted in Februa ry 2009.  A revision of the budget was carried 
out in April 2009, in which, in accordance with  macroeconomic expectations, total budgetary 
revenues as well as the total  budget expenditures have been reduced (the reve nues have been reduced 
from HRK 124.6 billion to 116.6 billion, or 6%, a nd expenditures have been reduced from HRK 126.9 
billion to 121.5 billion, or 4%).  It is important to emphasize that within  the framework of this 
revision the base for the calculation of wages in all the state bodies and public services has been 
reduced to the level from December 2008, whereas th e base for the calculation of the wages of state 
officials was reduced by 10%.  Besides that, with the second and third budget revisions in July 2009 a 
series of acts have been adopted that have direct  impact on the revenues and expenditures side of the 
budget.  Thus the VAT rate has been increased from 22 to 23%.  In addition, a tax on wages, pensions 
and other incomes amounted 2% over HRK 3, 000 or 4% over HRK 6,000 was introduced until 
31 December 2010.  These taxes were introduced into  the Tax system as extraordinary taxes with a 
limited duration of 17 months, with the possibility of being terminated even before the expiration of 
that period, depending on the economic developments in the country.  Croatia WT/TPR/G/227 
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 13. Croatian monetary policy is based on a stable exchange rate of the national currency in 
relation to the euro.  The choice of the exchange rate as a nominal anchor reflects the conditions in 
which the central bank is functioning, as the main characteristics of the Croatian economy:  Croatia is 
a small, highly euroized and open economy with its main trading partners coming from the Eurozone;  
therefore a change in the exchange rate strongl y affects movements in prices and inflationary 
expectations.  The average monthly exchange rate of HRK in relation to the euro from the beginning 
of 2000 until September 2009 moved in a narrow range  of +/- 5%.  The main goal of maintaining 
price stability has been fulfilled since in the same pe riod the average annual inflation rate amounted to 
3.2%.  In order to maintain macroeconomic stability  the Croatian National Bank had in the past years 
used numerous administrative measures.  Direct a nd indirect impacts of these measures have been 
reflected in the slowdown of banks' foreign debt acc umulation and of their placements to the private 
sector, also contributing to the increase in foreign ex change reserves and to good capitalization of the 
banking system.  The application of these measures h as been justified in the recent period, particularly 
during the financial crisis, when the central bank ma naged to preserve foreign exchange liquidity of 
the system and stability of the exchange rate by modification or cancellation of certain administrative 
measures and instruments.  
14. Measures that Croatia has undertaken during 20 08 and 2009 have contributed to the stability 
of public finances in the conditions of economic crisis and have created a basis for further 
enforcement of fiscal policy in the next three-year  period with the aim to ensure liquidity in the 
system and creating preconditions for economic recovery. 
15. In 2010, a mild recovery of the economic ac tivity is expected with real GDP growth 
amounting to 0.5%, characterised by its gradual accel eration toward the end of the year, but at a 
slower pace than in the period before 2008.  In 20 11, real growth of 3.0% is anticipated, and in 2012 
its further acceleration to 3.5%.  The above-mentione d economic developments will first result in the 
reduction of nominal GDP per capita from about EUR 10,700 in 2008 to about EUR 10.300 in 2009, 
and then in an increase to about EUR 12,100 in 2 012.  After strong inflationary pressures present in 
greater part of 2008, in the course of 2009 a reduc tion in an average annual inflation rate to below 
3.0% is expected.  Until the end of the projection peri od the inflation rate is expected to stay at around 
3.0%.  
(ii) Trade policy developments 
16. The Ministry of the Economy, Labour and Entrepreneurship within the scope of its 
responsibilities is in charge of the trade policies formulation and implementation.  It cooperates 
closely with other ministries with trade-related por tfolios, in particular with the Ministry of 
Agriculture, Fisheries and Rural Development, the Ministry of Finance – Customs Administration and 
the Ministry of Regional Development, Forestry and Water Management as  well as with other 
ministries and state administrative bodies, private se ctors, chambers and business associations, NGOs, 
etc.  The Ministry attaches great importance to activ ities related to the development of trade, market 
and internal market coordination, activities relate d to the implementation of trade policy measures, 
alignment and application of technical legislati on and consumer protecti on.  From March 2008 the 
Ministry extended its scope to the activities pertai ning to quality infrastructure, including the co-
ordination and development of the national policy in  the fields of standardisation, accreditation, 
conformity assessment and metrology.  The State Office for Metrology (DZM), Croatian Standards 
Institute (HZN) and the Croatian Accreditation Ag ency (HAA) operate under the competence of the 
Ministry of the Economy, Labour and Entrepreneurship. WT/TPR/G/227 Trade Policy Review 
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 17. The economic power of trade is reflected in the share of its value added in total gross value 
added, which has for years remained above 10%. Trade activity comprises some 34% of the overall 
number of economic entities and 15.3% of the overa ll number of employed persons.  The Trade Act 
and subordinate regulations based on this Act regulat e the Croatia's trade policy.  From the date of 
Croatia's accession to the EU the Common Commercia l Policy will be applied. As these imply the 
directly binding EU legislation the provisions of the Trade Act that concern Common Commercial 
Policy will cease to apply.  The Trade Act sets out the conditions for carrying out trade activities in 
the domestic market, for carrying out foreign trad e, trade defence measures, measures restricting 
trading, unfair competition, supervision and admini strative measures.  The Act defines trade as the 
purchase and sale of goods and the undertaking of commercial intermediation in the domestic and 
foreign market.  The Act has been in force si nce August 2008 and is aligned with the market 
conditions, especially in the part relating to the performance of commercial activities on the domestic 
market.  
Licences, export/import controls 
18. Croatia is constantly working on the improve ment of its national export and import control 
system. By adopting regulations on export and impor t control of weapons and dual-use export control, 
international and European standards have been met in the prevention of proliferation of conventional 
weapons and weapons of mass destruction.  Furthe r improvement of the control system is regularly 
carried out through strengthening administrativ e capacities, industry outreach as well as through 
regular updating of the regulations in accord ance with the international standards. 
Consumer Protection 
19. In the reporting period Croatia has developed an  efficient system of consumer protection, 
which today is in line with all international standa rds applicable in this area. The National Consumer 
Protection Programme 2009–2012 defines consumer pr otection policy, principles and goals of the 
consumer protection policy, as well as the tasks that will be carried out in the period of four years in certain priority areas relevant to mo re efficient consumer protection. 
(iii) Privatization 
20. In line with the Strategic Development Fram ework 2006-2013 adopted by the Croatia's 
Government, the basic goals in the field of privati zation are completion of privatization of companies 
in the state portfolio, managed by the Croatian Pr ivatization Fund (CFP), together with the removal 
from the market of companies without prospect s and adequate handling of redundancies through 
labour market institutions and social policy, comp letion of the shipbuilding industry privatization 
process and transformation of CFP in an institution capable of efficient and active management of 
state property.  The completion of the privatization process in Croatia will represent a significant step towards the country’s economic and social developmen t goals.  Croatia plans to divest the remaining 
assets and enterprises of the state portfolio over the next several months.  These assets and enterprises 
represent strategic assets from the tourism, agribusiness, and industrial sectors. 
(iv) International competitiveness and internationalization 
21. One of Croatia's strategic goals is to incr ease the export of Croatian goods and services.  The 
economic developments over the past ten years indicat e the increase in volume of international trade, 
both in the import and export.  The export-to-import ratio was rather low in the last few years, at about 48%. Furthermore, export structure is not sa tisfactory, i.e. exports of more complex product 
types with high value added is laggi ng behind considerably.  Like in other countries, the first impact Croatia WT/TPR/G/227 
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 of the global economic crisis in Cr oatia resulted in the reduction of overall commodity trade, together 
with a sharp decline in the import.  As a result the deficit status is more favourable (in the first six 
months of 2009 declined by 33.2%),  as is the export-to-import ratio (increased from 43.2% to 49.2%).  
The most significant impact on the overall export decline in 2009 came from the lower exports of 
petroleum products, other means of transport (ships ), rolling stock and parts for automotive industry, 
machines and devices and waste materials.  On the other hand, more significant growth of the export 
in 2009 was recorded in agriculture and fishery, gas and electricity and pharmaceutical industry.  
22. With a view to providing support to exporters in accessing new markets, in the context of the 
current crisis and anti-recession measures, the Programme of Promotion of International 
Competitiveness and Internationalization of the Ec onomy of Croatia 2009-2010 has been prepared.  
This Programme is aimed at providing support to domestic companies in their processes of strengthening international compe titiveness and internationalization.  
23. The implementation of the export strategy (Cro atian Export Offensive - HIO) commenced at 
the beginning of 2007, bringing together  all the institutions that provid e support to potential exporters.  
One of the strategic goals of the HIO project is li nking together companies in clusters to facilitate 
their appearance on foreign markets and to incr ease the export.  This activity included the 
establishment and development of four  export-oriented clusters with export potential, as defined in the 
strategy to support water industry, small shipbuilding, wood and mariculture. 
(v) Foreign investments 
24. Domestic and foreign investments are excep tionally important to the Croatian economy 
because of the positive impact on the main economi c indicators on which the economic growth and 
development of the country depend.  This primar ily includes the increase in productivity and market 
competitiveness, the reduction of the unemployment ra te, increase in the exports and consequently an 
increase in the GDP growth rate and foreign debt re duction.  Foreign direct investments (FDIs) are 
emphasized as the most important form of inv estment because of the positive impacts on domestic 
manufacturers' productivity growth through tec hnology transfer.  The success of the measures 
undertaken to date to promote investment is suppor ted by the figures according to which in the period 
from 1993 to 2008 FDIs in Croatia amounted to EUR 21.1 billion, whereas in 2008 the inflow of FDIs reached EUR 3.4 billion.  Regarding FDI structure by investors' countries of origin, in the period from 
1993 until the end of the second quarter of 2009 more than two thirds of investments came from the 
EU 15 (79%), and 16% from the new EU Member States.  In the same period, the structure by the 
activities carried out shows the domination of the fi nancial intermediation sector (38%), followed by 
investments in manufacturing industry (28%) and investments in trade, telecommunications sector, 
real estate activities and other services.  
25. It is important to emphasize that the Investme nt Promotion Act provides an equal treatment of 
domestic and foreign legal or natural persons.  It enables both existing and newly-established 
companies to utilize incentives for i nvestments; the minimum investment value for which an incentive 
is granted is EUR 300,000 provided that at least ten investment-related new jobs are opened in the 
period of three years after the beginning of the invest ment.  The Act relates to investment projects in 
manufacturing sector activities, technology centres and strategic business support services i.e. activities of higher added value.  From June 2007 unt il the end of October 2009, 117 applications for 
incentives allocation were received in total, of wh ich 55 companies have received a certificate of the 
beneficiary status.  According to the applicati ons received, 3,179 new jobs are to be created. WT/TPR/G/227 Trade Policy Review 
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 (vi) Free zones 
26. Free zones serve as an important instrument fo r the fulfilment of the national development 
goals (international competitiveness, balanced region al development, sustainable economic and social 
development and growth).  In 2009, there are to tal 14 active free zones in Croatia, in which 255 
beneficiaries are operating with 7,531 employees.  
(vii) Small and medium sized enterprises 
27. Croatia is a signatory to the EU Charter for Small Enterprises. Croatia has clear policies of 
entrepreneurial learning and vocational training. In  addition, Croatia has a Competitiveness Increase 
Programme and export strengthening programmes in pl ace, and it is well developed in the areas of 
finance and tax issues, being the regional leader ow ing to a relatively great number of small business 
entities that have introduced ISO standards, Croatia  has received the highest scores for e-business, 
setting an example through its long tradition and special distribution of its entrepreneurial 
associations. 
(viii) Intellectual property 
28. Croatia recognizes the role of intellectual pr operty protection as significant mechanism for 
promotion of innovativeness.  In line with the ab ove Croatia continuously  develops its national 
intellectual property system in compliance with th e highest international standards and appropriate 
national strategy.  Following the WTO accession in  1999 the legal framework was harmonized with 
the TRIPS provisions, and in the recent years signi ficant further development of legal framework has 
been achieved.1  This also implies the membership of  Croatia in all significant international 
agreements in the field of intellectual property.2  In line with the global trends in the field of 
intellectual property, as well as sharp increase of international trade in counterfeited and pirated 
products, Croatian priorities are currently focused on strengthening of operative enforcement of intellectual property rights.  On international level Croatia follows up  the development of 
corresponding trends and activities, particularly  negotiations regardi ng the development of 
international trade agreement referring to Anti- Counterfeiting Trade Agreement (ACTA).  Another 
priority area in the forthcoming period is enhanci ng of the use (exploitation) of intellectual property 
rights by the national economic and science and resear ch sector, with a view to strengthening their 
innovativeness and competitiveness. By virtue of par ticipation in internati onal intellectual property 
systems Croatia participates in numerous ongoing initiatives aimed at enhancing the efficiency, 
quality and availability of procedures for granting the industrial property rights.  
29. In the framework of the WTO, Croatia joined the GI Friends initiative as the 109
th member of 
the Group. 
(ix) Competition Policy 
30. The competition policy in Croatia comprises the competition legislation, anti trust (prohibited 
agreements and abuses of a dominant position) and merger control and in broader sense, it includes 
also the state aid rules.  Namely, so far thr ee competition acts have been adopted (1995, 2003 and 
                                                      
1 This has been confirmed by two recent developments: in 2007 Croatia has been removed from the 
Watch list of the Special 301 Report  issued by the USA Trad e Representative, and at the end of 2008 Croatia 
has closed negotiations with the EU in chapter Intellectual Property Law within the negotiation process for EU 
membership.  
2 Including the membership to the European Patent Organization since January 1, 2008. Croatia WT/TPR/G/227 
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 2009) and a whole range of implementing regulations .  The primary purpose for adoption of the new 
Competition Act (CA) is enhancing efficient co mpetition enforcement in Croatia. Notably, the 
Croatian Competition Agency (CCA) was entrusted w ith the power to impose fines after establishing 
the infringement of competition rules, in a single d ecision.  Apart from the above mentioned, the other 
main changes which have been introduced in the new Competition Act (CA), which is in force from 
1 October 2010, are as follows:  infringement of competition rules shall not be considered minor 
offences any more, but infringements sui generis ;  the criteria for setting up the fines taking into 
account seriousness and duration of infringement and possible mitigating or aggravating circumstances are determined; introducing of dawn  raids and searches of business, apartments and 
other premises, lands and vehicles and seizure of property in the possession of the undertaking 
concerned conducted by the Competition Agency based  on the order of the Court to obtain crucial 
evidence in cartel cases;  introducing of the so called leniency programme or immunity from or 
reduction of fines for "whistle-blowers", for thos e who are first to come forward and inform the 
Agency and demonstrate evidence of prohibited agre ements;  in case of assessment of concentration 
the market dominance test shall be abolished and th e test of identifying the significant impediment of 
effective competition shall be introduced; introducin g the Statement of Objections, the Agency shall 
inform in writing the parties to the proceedings of the preliminary established facts in order to ensure 
the relevant parties to express their views on all relevant facts and circumstances of the case (right of defence);  the right of the parties to propose co mmitments shall be introduced;  the Administrative 
Court is the only court competent to review both th e legality and the merits of the Agency's decision 
and decide on the level of fines imposed by the CCA for infringements of competition rules.  The 
mentioned proceeding at the Court will be an urgent proceeding. 
III. ECONOMIC POLICY PRIORITIES 
(1) D
ETERMINANTS OF CROATIA 'S FOREIGN TRADE POLICY  
(i) Croatia and the WTO 
31. In the process of its accession to the WTO Croa tia has liberalized its market considerably and 
assumed obligations that rank Croatia among the count ries with the most liberalized systems within 
the WTO.  
32. Croatia is taking active part in other countries'  accession processes; in particular, Montenegro, 
Bosnia and Herzegovina and Serbia.  These nei ghbouring countries are significant trading partners, 
signatories of the CEFTA 2006 Agreement and traditional markets for Croatian products.  
33. Croatia participated in all Ministerial conferences held so far, in three of them as an observer 
and in four as the WTO member.  Croatia particip ated for the first time as a fully-fledged WTO 
member in the Doha Ministerial Conference and supported the initiating of the new round of 
multilateral trade negotiations within  the framework of the Doha Deve lopment Agenda (DDA).  Since 
then, Croatia has been involved in DDA negotiations, particularly in agricultural, NAMA and services 
negotiations.  Croatia coordinated the RA Ms group (Recently Acceded Members) from 
November 2001 to summer 2007 and also CEFTA plus group in 2005. 
34. The WTO Secretariat selected Croatia as a host country for the Ministerial Conference for the 
Central European and Southeast European countries in Zagreb in June 200 2.  Delegations of 18 
countries of the region participated in the Conferen ce.  Besides this Conference, regional seminars 
also took place, specifically, the WTO workshop on trade facilitation for Central European and South 
European countries and Central Asia and Cau casus, the Advanced WTO regional workshop WT/TPR/G/227 Trade Policy Review 
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 concerning antidumping and the Regional WTO workshop on agriculture, in April 2004, July 2006 
and November 2008 respectively.  Representatives of Cr oatian institutions also regularly participate in 
the WTO seminars and workshops organized in Gene va and Vienna, as well as in the countries of the 
region.  Training of Croatian experts on the issues of importance to the WTO has contributed 
considerably to understanding and applying the basic WTO rules and disciplines. 
(ii) Croatia and the EU 
35. The EU is traditionally the main Croatia’s trading partner with a stable growth of trade in the 
period from 2000 to 2008. The Stabilisation and A ssociation Agreement (SAA) has contributed 
considerably in this respect. 
36. Croatia has entered into the final stage of its  accession negotiations with the EU. Negotiating 
Chapter 30 – External relations covers, inter alia,  trade policy including the EU relations within the 
framework of the WTO. Negotiations with the EU on this Chapter were temporarily closed in the 
Intergovernmental Conference held in Brussels on 30 October 2008.  
(iii) Free trade agreements 
37. The free trade agreements currently app lied by Croatia (SAA, CEFTA 2006, EFTA and 
Turkey) comply with Article XXIV of the General Agreement on Tariffs and Trade.  As the FTAs are 
a part of the EU Common Commercial Policy they will cease to be applied from the date of Croatia’s 
accession to the EU.  
(iv) Aid for trade 
38. The Ministry of Foreign Affairs and European Integration is responsib le for the coordination 
of activities in the area of development cooperati on and external humanitarian aid.  Croatia is 
traditionally oriented towards Bosnia and Herzegovina  and supports educational, health, scientific and 
cultural needs there.  The knowledge and experien ce gained by Croatia in the transition and EU 
accession may help the countries in Southeast Europe; therefore, this region will continue to be a 
priority.  However, the efforts will be intensifie d to increase the aid for the countries most in need, 
primarily in Africa.  In this context, Croa tia adopted the Act on Development Cooperation and 
Humanitarian Assistance in December 2008 and th e National Strategy for Development Cooperation 
for the period 2009-2014 in February 2009.  
(2) SECTORAL  POLICIES 
(i) Agriculture 
39. The share of agriculture in the Croatian GDP  was gradually reduced from 7.0% in 2000 to 
5.6% in 2008. However, the importance of agricultu ral production in Croatia is higher than the share 
indicated in the national GDP and resulting from the shar e of rural area in the total territory of Croatia 
(92%), as well as the share of the rural population in the overall population (47.6%).  Diversified and developed processing industry and food industry ar e connected with agriculture, with capacities 
satisfying not only the domestic demand, but also the demand on the markets of the neighbouring 
countries.  Agriculture is supplemented by tourism,  another significant economic branch in Croatia.  
40. The most important development guidelines of Cr oatian agricultural policy are determined by 
strategic goal of the accession to the EU.  Consequently , most of the changes that have occurred in the 
sector of agriculture and rural development since 2 000 were initiated by the preparations for future Croatia WT/TPR/G/227 
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 EU membership, which is particularly challenging in  this area.  In recent years the significance of 
rural development policy has increased, which contributes to the improvement of both business 
conditions and the standard of liv ing in Croatian rural areas.  In 2009 a significant breakthrough was 
achieved in the segment of direct payments by in troduction of decoupled payments and mechanisms 
providing for balanced distribution of state aid to producers.  Another significant area of reforms in 
agricultural sectors in the following period will be the measures regulating ma rket for agricultural 
products, notably the intervention measures, adop tion of market standards, encouraging the 
establishment of producers' organizations. In this ar ea as well, the priority is the harmonization with 
the requirements of EU legislation, with the new Act on the Regulation of Agricultural Products 
Market having been adopted in December 2009.  
(ii) Fisheries 
41. The reform of fisheries policy in Croatia is or iented towards more significant investments in 
modernization and adaptation of the current fac ilities for aquaculture and processing, as well as 
procuring of fisheries equipment tools and vessels. The goal is to achieve sustainable management of the sea livestock, enhance the fishing quality throu gh the application of the new, more selective 
technologies, and improving the conditions and safety of work and shipping. With respect to the 
trading system Croatia aims at establishing wholesale fish market to concentration of fish supply and 
demand, as well as achieving realistic market price an d consequently a better status of fishermen and 
fish farmers on the market.  
(iii) Forestry 
42. One of the most significant points referring to fo restry in the recent period has been Croatia’s 
membership of the international Organization for Economic Cooperation a nd Development (OECD) 
Fore st Scheme in late 2008. This opened the door to produ cers of forest reproductive material across 
Croatia to place their products, among others, on the demanding EU markets and the markets of North America and other OECD countries. In late June  2009 the new Act on Forest Reproductive Materials 
was adopted, regulating all the aspects of placing the forest reproduction materials on the market in 
the way equal to the practice in the EU. Apart fro m this, Croatia has renewed the certificate in line 
with the certification criteria of the Forest Stewar dship Council (FSC) by 2011 for all state-owned 
forests (78%), which also facilitates placement on the market not only of logs but also of the products 
manufactured from certified raw materials. 
(iv) Industry 
43. Croatian manufacturing industry has a significant share in the GDP structure, more than 20%, 
and its importance is indisputable in respect of employment and sustainable regional development. 
Measured by the volume of industrial production, the currently most significant activities in the 
structure of the manufacturing industry include:  food and beverages, printing and publishing, 
chemicals and chemical products.  The manufacturi ng industry is the most significant industry in 
terms of employment.  The greatest numbers of wo rkers in the manufacturing industry are employed 
in: food and beverages, metals a nd metal products, and manufacture of apparel.  The largest share of 
the manufacturing industry's exports is held by the manufacture of other means of transport, 
manufacture of coke, petroleum products and nucl ear fuel and the production of chemicals and 
chemical products. 
44. One of the pillars of the Croatian industrial policy in the forthcoming period will be to rely on 
the support to openness and acknowledgement of initiatives aiming at new investment and new WT/TPR/G/227 Trade Policy Review 
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 products, and the implementation of such projects.  In  addition, priority will be given to the activities 
that ensure manufacture of new products, introduc tion of new technologies and processes, or that 
bring about a significant improvement in the existing products, processes or services.  The objective of this concept approach to industrial policy is to strengthen competitiveness of the national industry 
and ensure support to its growth and development. 
Food and Beverages 
45. The food and beverages industry accounts fo r 19.8% in the added value of Croatian 
processing industry, and the tobacco products manufac ture accounts for 2.6%.  In food and beverages 
industries the overall 1,300 companies have been re gistered with 50,000 employees or approximately 
18.8% of the total number of employed persons in  the processing industry.  The production of food, 
beverages and tobacco are activities that compared with the other branches of processing industry in 
Croatia employ the greatest number of employed persons, ge nerating the highest total income.  Over a 
number of years the main export products in this in dustry have been sugar and cigarettes, and on the 
export market (primarily in the neighbouring co untries) the other food industry products are 
represented as well. In the context of the EU accession, Croatia is focused on promoting the 
manufacturing of authentic and high quality produc ts, which will be recognizable on the EU market.  
Shipbuilding Industry 
46. The sales of the Croatian shipbuilding industry ar e almost 100% on the international markets, 
accounting for 15% of the overall Croatian export, contributing to the balance of foreign trade 
payment balance. In the period 2003–2008, the income of the shipbuilding industry increased 
continuously by 2.24 times.  The importance of Croatian shipbuilding industry is reflected in the 
following:  1.8% share in the net wages (direct) and 5% share (multiplicative);  2% share in contributions (multiplicative 5.6%);  the share of national component (domestic material, services and work) in overall costs of ship construction remains at  the level of 60-65% of the original cost;  share 
of persons employed in the shipbuilding industry in the total number of employees in Croatia accounts 
for 2.5%, and for 10.8% in the number of persons employed in industry.  Apart from the directly 
employed persons, shipyards provide employment  for some 5,000–7,500 subcontractors and through 
the supply of equipment and materials from anothe r more than 1,800 companies with about 20,000 
employees.  One of the major goals in the context of privatization in Croatia is the completion of 
privatization in the shipbuilding sector with a view  to achieving efficiency and further development 
prospects, simultaneous with appropriate measures to  provide for the labour and social rights of the 
employees, as well as for the restructuring of state-owned companies in order to enhance 
competitiveness and profitability.  
Chemical Industry 
47. In the entire industrial production realized in  2008 chemical industry accounts for 6.23%, and 
plastic and rubber processing accounts for about 3%.  Th e share of the employed in chemical industry 
in 2008 declined by 0.3% and amounts to 5.8% of total number of the employed in the Croatian 
processing industry.  In 2008, the exports of the Croatian chemical industry increased by 19.8%, and 
imports increased by 15.3% compared to the previous  year, whereas at the same time exports of semi-
finished and finished products of plastic and rubber increased by 20.1%, and imports increased by 
15.6%.  In 2008, the chemical industry accounted for 10.2% of the total processing industry export, which is 0.5% more than in the previous year, and the processing of plastic and rubber accounted for 
1.7%. In 2008, the chemical industry participat ed in total processing industry import with 11.6%, 
which is 0.3% more, and plastic and rubber processi ng with 4.0%.  In this sector, 34 companies are Croatia WT/TPR/G/227 
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 employing more than 5,000 people, with  the annual revenue of HRK 4.5 billion.  Production of drugs 
and medical products shows considerable growth wo rldwide, and in Croatia it amounts to insufficient 
5%.  In the first half of 2009, the production dropped 10%, making it evident that production needs a boost.  
Textile Industry 
48. Croatian textile and garments industry is passi ng through a period of very intensive changes 
and structural adjustment.  Competitiveness in textile industry may be maintained only by investments in technology that will enable higher level of pr oductivity and product qualit y, innovations, creativity 
and design being of the key importance.  In Oc tober 2007, Croatia adopted the Strategy for the 
Croatian textile and garment industry for the period 2008–2015;  the c ontent of the Strategy is defined 
by the following development goals:  market re- positioning according to the possibilities and abilities 
of Croatian textile companies;  technology transfer  and innovation with a greater share of own know-
how;  production specialization to occupy market nich es of higher quality and price ranges;  growth of 
textile companies and their networking with the in tention to achieve greater negotiating abilities;  
personnel adjustment to new markets, technological and organizational conditio ns of business running 
and development;  tradition and experience in busin ess and product quality being the most important 
strengths of the Croatian tex tile and garment industry.   
Wood processing industry 
49. The 250 years of experience and tradition provide for sustainable forest management in 
Croatia, taking into account all its roles – economic, so cial, ecological and cultural.  The Ministry of 
Regional Development, Forestry and Water Mana gement implements the Operative Development 
Programme of Industrial Wood Processing in the Re public of Croatia 2006–2010,  aimed at enhancing 
the partnership between the forestry and wood industry, increasing investments in research and 
development of new wood products, in particular the final products, technical-technological upgrade, 
improvement of environmental prot ection and enhanced energy effi ciency, as well as promotion of 
investments in innovation and design of products.  The Development Strategy of Furniture Design in 
Croatia is currently being prepared, emphasizing the design as one of the key factors of strengthening 
competitiveness of Croatian products;  the Strategy promotes efficient use of wood as a national resource, enhances creativity and scientific develo pment as an initiator of long-term economic and 
social development.  Taking into account all this, entrepreneurs are invited to strategic linking.  
Forestry, wood processing and furniture production ha ve, apart from tourism and agriculture, the 
potential for initiating the economic progress of Croatia.  
(v) Energy  
50. The basic goal of the energy policy of Croatia is secure and high quality supply of energy 
sources connected with the efforts aimed at energy efficiency and savings in consumption, expanding 
the gas supply network to the southern part of the state, integration with the international energy 
market, providing several natural gas routes and dive rsification of energy sources. Wider application 
of renewable energy sources is of particular impor tance.  The energy policy and energy development 
planning were defined by the Strategy of Energy  Development adopted in October 2009.  The 
Strategy is aimed at establishing of a sustainable en ergy system in the unreliable circumstances of the 
global energy market and rather scarce energy r esources, which would be capable of achieving three 
basic goals: security of energy supply, competitiveness of the energy system and viability of energy 
development.  WT/TPR/G/227 Trade Policy Review 
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 51. The development of gas transmission system enables introducing of gas in the areas of 
Croatia not yet covered by the gas network (Dal matia) and its integration in the European 
environment through connecting with the gas tran smission systems of the neighbouring countries by 
way of new supply routes.  The needs of Croatia, of the Central European countries and of the 
Mediterranean countries for new gas quantities and ne w supply routes justify the construction of the 
LNG (liquefied natural gas) terminal on the Isla nd of Krk. The LNG termin al will have the annual 
capacity of 10–15 billion cubic meters of gas.  The total investment is estimated at EUR 1 billion and 
the realization is planned for the end of 2014.  
(vi) Services 
Financial services 52. In the period from 2000 until the end of 2 008, the banking sector was marked by the 
following changes: the alignment of the legislati on relating to bank establishment and operation with 
EU directives, increase in foreign ownership of bank s, a process that already started in the mid 90's, 
and the reduction in the number of banks.  At th e end of 1999 the share of foreign owned banks in 
total banking assets in Croatia was 39.9%, while  at the end of 2008 it increased to 90.6%.  As 
concerns the number of banks, in 1999 there were 60 banks operating in Croatia and at the end of 
2008 there were 34 (of which 16 were foreign-owned) .  In the same period total bank assets went up 
from HRK 111.8 billion to HRK 370.8 billion.  
Transport 
53. Since 2000 Croatia has actively participated in international and regional cooperation in the 
field of transport.  The standards with respect to safety, technical and social conditions, environmental 
protection and market conditions have b een improved in all transport sectors. 
Road Transport 
54. Simultaneously, Croatia engage d in intensive construction of modern motorways. 
Correspondingly, in early 2009, the density of  Croatian motorways network amounted to 21 
km/1000m
2 of land area, i.e. 270 km/million inhabitants.   By investing in the construction of 
motorways Croatia has achieved the development le vel of this type of infrastructure above the 
European average, and the availability of road in frastructure impacts the quality and diversity of 
business opportunities and makes the country more at tractive to business and investment.  The access 
to the passengers and freight road transport ma rkets is regulated through bilateral transport 
agreements.  To date Croatia has c oncluded 34 bilateral agreements, of which seven after 2000.  If not 
provided otherwise in bilateral agr eements, a licence is required to ope rate in bilateral transport and 
transit as well as to and from third states.  The tr ansport of passengers and freight between two points 
within the state territory of Croatia is  currently reserved to national carriers. 
Air Transport 
55. In air transport the adoption of the new Air Tr ansport Act should be particularly emphasized.  
It provides a modern legal framework to regulate th e relations in civil aviation and it establishes the 
Croatian Civil Aviation Agency as well as the Aircraft  Accident and Serious Incident Investigations 
Agency.  The first Agency has a goal of providi ng high standards of safety and security of air 
transport.  The goal of the second Agency is investig ation of aircraft accidents and serious incidents. 
Apart from that, Croatia has ratified the multila teral European Common Aviation Area Agreement 
(ECAA Agreement), aimed at harmonizing the aviati on system of the non-EU states Parties to the Croatia WT/TPR/G/227 
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 Agreement with the EU aviation system, in all as pects and primarily in safety, security of air 
transport, social aspects and mutual opening of av iation markets.  In addition, Croatia has also 
notified the Depository of the ECAA Agreement of its  provisional application on the bilateral level 
with the states ECAA Parties also willing to such application as the first one in the region (South East 
Europe). 
Maritime transport 
56. In maritime transport the principle of free provi sion of services, i.e. there are no restrictions 
with respect to the access to regular international lines between Croatian and foreign ports. However, 
only Croatian ships are authorized to cabotage i. e. transport of passengers and freight between 
Croatian ports; the issue of the liberalization of mar itime cabotage will be considered in the context of 
Croatia's EU accession negotiations.  
Electronic communications 
57. In July 2008, pursuant to the Electr onic Communications Act, the Croatian 
Telecommunications Agency and Postal Services Counc il were merged and have continued to operate 
as the Croatian Post and Electronic Communicati ons agency – HAKOM, an independent national 
regulatory authority in electronic communications and postal services.  Due to the modern legal 
framework and activities of HAKOM the Croatian electronic communications market is fully liberalized, and the regulator has paid special attenti on to the prevention of distortion or restriction of 
market competition in the provision of electroni c communications networks and services, in the 
provision and protection of equal and non discriminatory status of the new market operators, as well 
as the high level of protection for electronic communications network and services users.  
Consequently, since the Croatia's joining the WT O in 2000, significant progress has been made in 
terms of market liberalisation.  Meeting the requirements for an efficient market competition is the basis for the creation of new jobs, the growth a nd development of the accompanying industry linked 
with electronic communications, and thus a contri bution to the growth and development of the 
economy at large.  
Tourism 
58. For decades tourism has been and has remained one of the most significant determinants of 
economic growth in Croatia, with the share of t ourism revenues (from foreign tourists) in 2008 GDP 
reaching 16%.  In some years it accounted for cons iderably above 20%.  It should not be forgotten 
that tourism significantly contributes to national exports and plays a significant role in reduction of 
unemployment (in particular the seasonal unempl oyment) and creates new products and professions 
required as a result of the expanding tourist offer. 
59. The most significant Croatian tourist potential is the Adriatic Sea.  The unique features of the 
sea (crystal clear and clean) and the coast (5,835 km coastal line and 1,185 islands), together with the 
very favourable climate were r ecognized long time ago and used as the main comparative advantage 
of Croatian tourism.  The well indented coast with  its islands, unique in the Mediterranean, with a 
whole range of picturesque towns of rich cultural a nd historical heritage are ideally suited for bathing 
resorts (sun and sea) as well as for top-level yachting tourism (10% of the total tourism) and access to market niches in the field of sports, culture and e xperience.  That is the reason why the Adriatic areas 
account for 95% of Croatian tourist activities.  Alt hough efforts are being made to develop tourism in 
the hinterland and continental parts of the country, th e coast and the islands will remain the area with 
highest tourist density in Croatia.  WT/TPR/G/227 Trade Policy Review 
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 60. Croatia has an attractive tourist potential, pr imarily the unique natural and its cultural and 
historical heritage, comprising eight national parks and a number of protected areas.  There are seven UNESCO localities as well, of which six are cultural a nd one is natural heritage site.  Recently seven 
Croatian non-material heritage assets were included in the UNESCO list. Including such attractions in 
the Croatian tourist offer makes Croatia even more a ttractive and interesting internationally, focusing 
on experience and stories from the history that make every destination authentic.  
61. The global economic crisis had impacted Croa tian tourism as well. However the results are 
still much better than expected; correspondingly, tour ist arrivals and nights spent for the first nine 
months were only negligibly lower than in the same period of the previous year.  On the average, 85% 
of tourists in Croatia are foreigners, mostly from EU  Member States.  In the year in which most states 
helped their tourist industry by relying on domest ic tourists, the situation in Croatia was more 
complex.  However, the Action Plan of Croatian To urism in 2009 was adopted, which contributed to a 
comparative success of this tourist year with its me asures related to marketing, fiscal policy, public-
private partnership and facilitating travelling.  The activities will also be continued in 2010 that, as we 
assume, will be challenging and complex as well.  
62. The further development of Croatian tourism w ill be continued based on sustainable growth, 
implying not only sustainability of  area and natural resources, development of the so called eco-
tourism, i.e. tourism in rural areas and near th e protected areas, but also the economic and social-
cultural sustainability. Abundant cultural heritage and its restoration are an essential part of this 
sustainability.  
63. Croatia is preparing a new strategy, i.e. master  plan for the development of tourism.  The 
strategy will be prepared on the basis of sustai nability, following new trends and establishing the basis 
for adjustment to the changed habits and demand of a modern tourist, having the following main 
features:  renewal, protection and better evalua tion of Croatian tourist potentials, defining new 
identity of Croatian tourism and pos itioning of Croatia on the internati onal tourist market as a highly 
valuable lifestyle destination and one of the lead ing high quality receptive tourist countries in the 
Mediterranean, together with restoring national natural and cultural values, the competitiveness of 
Croatian tourism and high-quality tourism in  line with sustainable development.  
IV. CROATIA AND DOHA DEVELOPMENT ROUND OF MULTILATERAL TRADE 
 NEGOTIATIONS  
64. In the promotion of its positions Croatia tak es into account not only the already achieved high 
level of trade liberalization, but also its official status of a candidate country for EU membership.  
Croatia mostly presents its interests throughout the RAMs group.  
65. As a country that became a WTO member after the conclusion of the Uruguay round of 
negotiations, as well as a country with one of the mo st liberal trade regimes within the WTO, the 
position of Croatia is that it undertook, dur ing the WTO accession negotiations, commitments 
securing a significantly greater liberalisation of th e Croatian market in comparison with other WTO 
members, especially the member s with a similar degree of economic development, but also in 
comparison to many of the founding WTO members.  The extent of its commitments placed Croatia 
in the group of developed countries although Croatia 's macroeconomic indicators do not support this 
ranking.  These extensive commitments undertaken in  the accession process, as well as other RAMs, 
have been recognised by ministers in paragra ph 9 of the Doha Ministerial Declaration.  Croatia WT/TPR/G/227 
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 The position of Croatia is that these negotiations sh ould lead to the reduction of imbalances in the 
rights and obligations between WTO members, with full regard for the particularities of RAMs, but also for developing countries and the LDCs.  The pr iorities for Croatia are agriculture, market access 
for non-agricultural products and trade in services.  Because of its extensive accession commitments 
Croatia advocates the application of the provisions intended for the developing countries in this round 
of trade negotiations. 
66. The status of Croatia in the current round of  multilateral WTO negotiations on agriculture is 
connected with the fact that Croatia is a rather ne w WTO member and that our agriculture sector is in 
the process of transition.  With respect to the WTO multilateral trade system the following are the 
most significant positions with respect to agri culture: support for the new comprehensive round of 
negotiations, systematic multilateral trade libera lization and strengthening of the WTO system, 
flexibility in assuming new commitments upon expiry of the agreed transitional periods, special status 
of Croatia under the RAM initiative, including longer  transitional periods and the grace period due to 
the concessions already granted by Croatia on WTO accession, support for the principle of 
multifunctionality of agriculture and special treatmen t of developing countries.  As a result of WTO 
accession Croatia has accepted significant commitments comprising the reduction of tariffs, as well as 
of domestic support in agriculture, and is part of RAMs group.  Althou gh Croatia is not the 
coordinator of this group any more it remains its official member and supports the initiatives which 
are in line with Croatian national interests, in par ticular in case of special fl exibility provisions in the 
text of the draft modalities for agriculture. 
67. By acceding to the WTO, Croatia undertook to reduce the customs protection for non-
agricultural products during the transitional period  that ended in 2005. Duties for non-agricultural 
products are only ad valorem . In accordance with the Schedule of  Specific Commitments, other duties 
or charges having an equivalent effect are not permitted.  During the negotiations on the accession to 
the WTO, Croatia adopted numerous sectoral initiati ves such as the so-called 0/0 initiative – "zero for 
zero" initiative for drugs, paper, iron and steel, no n-ferrous metals, wood, construction equipment, 
agricultural machines, medical equipment, equi pment for science purposes, furniture, toys. In 
addition, the harmonisation of duties for chemical products has been accepted. For a small number of 
the most sensitive industrial products duties have b een kept.  Furthermore, as regards the negotiations 
on market access for non-agricultural products, Croatia, as a member of the RAMs group, supports further negotiations on the basis of the so-called Swis s formula, but advocate a different coefficient in 
respect of its status. Croatia also advocates a longe r period of time for the implementation of new 
obligations. 
68. Among other commitments, Croatia undertook co mprehensive and extensive commitments on 
trade in services. A Croatian Schedule of Specific commitment on trade in services, as a result of the 
accession process, shows a very large number of sect ors and sub-sectors included and also ambitious 
level of undertaken commitments. In figures, 122  sub-sectors are included which represent almost 
80% of total, including all major sectors and sub-se ctors. The level of undertaken commitments is 
generally more extensive then the level of co mmitments undertaken by many of the founding WTO 
members and in particular by those WTO members at  comparable level of development. Therefore the 
position of Croatia is that provisions relating to the specific situations of recently acceded members should be included in the future modalities in the field of trade in services as well.  
69. The position of Croatia in this round of negotiations  in the field of trade in services are based 
on the already achieved high level of liberalisation and the commitments undertaken by Croatia in the 
accession process that does not leave much  space for further liberalisation.  WT/TPR/G/227 Trade Policy Review 
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 V. CONCLUSION  
70. The Croatia's accession to the WTO was a signifi cant step towards its integration into the 
world trade and also a precondition for strengthening  of its international position in all aspects of 
foreign policies.  Therefore, the trade policy of Cr oatia is to the great extent determined by the 
membership in the WTO. 
71. Croatia is convinced that successful conclusion of the DDA negotiations should be a priority 
to all WTO members and that it will bring benefits and contributes to the long-term economic growth 
of all of us.  Our position in the DDA is based on the extensive commitments made during accession 
process so we believe that this specific situation should be fully taken into account in all areas of 
negotiations. 
72. Throughout the reporting period, Croatia  successfully fulfilled and implemented 
commitments undertaken during the WTO accession negotiations and in pa rallel undertook a large 
number of intensive reforms mostly driven by st rategic goal of becoming an EU Member State.  
73. Croatia remains strongly committed to the WTO and nowadays as global financial crisis and 
recession affect world trade we are convinced more  then ever that WTO and the multilateral trading 
system that it represents are of vital importance for all economies around the world.  
__________