Central European Free Trade Agreement

Central European Free Trade Agreement
The Central European Free Trade Agreement (CEFTA) is an international trade agreement between countries mostly located in Southeastern Europe. Founded by representatives of Poland, Hungary and Czechoslovakia, CEFTA in 2006 expanded to Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Moldova, Montenegro, North Macedonia, Romania, Serbia, Slovenia and the UNMIK (on behalf of Kosovo, in accordance with UNSCR 1244).
Members
As of 1 July 2013, the parties of the CEFTA agreement are: Albania, Bosnia and Herzegovina, Moldova, Montenegro, North Macedonia, Serbia, and UNMIK (on behalf of Kosovo).
Former parties are Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, and Slovenia. Their CEFTA memberships ended when they became member states of the European Union (EU).
Membership criteria
Former Poznań Declaration criteria:
World Trade Organization membership
European Union Association Agreement with provisions for future full membership
Free Trade Agreements with the current CEFTA member states
Current criteria since Zagreb meeting in 2005:
WTO membership or commitment to respect all WTO regulations
any European Union Association Agreement
Free Trade Agreements with the current CEFTA member states
Current members
History
Original agreement
The original CEFTA agreement was signed by the Visegrád Group countries, that is by Poland, Hungary and Czechia and Slovakia (at the time parts of the Czechoslovakia) on 21 December 1992 in Kraków, Poland. It came into force in July 1994. Through CEFTA, participating countries hoped to mobilize efforts to integrate into Western European institutions and through this, to join European political, economic, security and legal systems, thereby consolidating democracy and free-market economics.
The agreement was amended by the agreements signed on 11 September 1995 in Brno and on 4 July 2003 in Bled.
Slovenia joined CEFTA in 1996, Romania in 1997, Bulgaria in 1999, Croatia in 2003 and Macedonia in 2006.
2006 agreement
All of the parties of the original agreement had now joined the EU and thus left CEFTA. Therefore, it was decided to extend CEFTA to cover the rest of the Western Balkans, which already had completed a matrix of bilateral free trade agreements in the framework of the Stability Pact for South Eastern Europe. On 6 April 2006, at the South East Europe Prime Ministers Summit in Bucharest, a joint declaration on expansion of CEFTA to Albania, Bosnia and Herzegovina, Moldova, Serbia, Montenegro and UNMIK (on behalf of Kosovo) was adopted. Accession of Ukraine has also been discussed. The new enlarged agreement was initialled on 9 November 2006 in Brussels and was signed on 19 December 2006 at the South East European Prime Ministers Summit in Bucharest. The agreement went into effect on 26 July 2007 for Albania, Kosovo, Moldova, Montenegro and Macedonia, on 22 August for Croatia, on 24 October for Serbia, and on 22 November 2007 for Bosnia and Herzegovina. The aim of the agreement was to establish a free trade zone in the region by 31 December 2010.
CEFTA 2006 aims at expanding regional trade in goods and services, creating an attractive environment for investment, and contributing to economic development and cooperation within the Parties. Laying down on the principles of WTO rules and procedures and harmonising its policies with the EU legislation, CEFTA provides an effective instrument for the Parties to accelerate their European integration agenda. Since the establishing, CEFTA has been deepening the areas of cooperation based on the needs of the businesses and strengthening trading relations between the Parties. From achieving the full liberalisation of trade in goods and further liberalisation in trade in services, via reducing trade related costs, harmonising the policies within the Parties based on the EU legislation, to expediting trade between Parties through electronic exchange of information, CEFTA has proven as a framework that ensures transparent trade relations between the Parties that can enable the businesses to improve their capacities for different markets.
Relations with the European Union
All former participating countries had previously signed association agreements with the EU, so in fact CEFTA has served as a preparation for full European Union membership. Poland, the Czech Republic, Hungary, Slovakia, Slovenia joined the EU on 1 May 2004, with Bulgaria and Romania following suit on 1 January 2007. Croatia joined the EU on 1 July 2013.
Montenegro, Serbia, Albania, and North Macedonia have been undergoing EU accession talks since 2012, 2014 and 2022.
At the EU's recommendation, the future members prepared for membership by establishing free trade areas. A large proportion of CEFTA foreign trade is with EU countries.
See also
Central European Free Trade Association (CEFTA)
Economy of Europe
Free trade areas in Europe
European Free Trade Association (EFTA)
Stability Pact for South Eastern Europe (includes an array of bilateral FTAs)
Mercosur
Southeast Europe Transport Community
Rules of origin
Market access
Free-trade area
Tariffs
Notes
References
External links
CEFTA Trade Portal
Original CEFTA Treaty
Market Access Map (A free tool developed by International Trade Centre, which identify customs tariffs, tariff rate quotas, trade remedies, regulatory requirements and preferential regimes applicable to products, including CEFTA)
Rules of Origin Facilitator (A free tool jointly developed by International Trade Centre, World Trade Organization and World Customs Organization which enables traders to find specific criteria and general origin requirements applicable to their products, understand and comply with them in order to be eligible for preferential tariffs. The tool is very useful for traders who want to gain benefit from CEFTA)
CEFTA 2006 Agreement
International organizations based in Europe
Trade blocs
Treaties concluded in 1992
Treaties of Poland
Treaties of Czechoslovakia
Treaties of Slovenia
Treaties of Serbia
Treaties of Romania
Treaties of North Macedonia
Treaties of Moldova
Treaties of Montenegro
Treaties of Bosnia and Herzegovina
Treaties of the Czech Republic
Treaties of Slovakia
Treaties of Kosovo
Treaties of Hungary
Treaties of Bulgaria
Free trade agreements of Serbia
Treaties of Croatia
Treaties of Albania
Czechoslovakia–Poland relations
Czechoslovakia–Hungary relations
European integration