Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...
Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...
Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...
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I.2. Background to <strong>Trade</strong> <strong>and</strong> <strong>Investment</strong> Cooperation in the BSEC region<br />
The <strong>Black</strong> <strong>Sea</strong> Economic Cooperation (BSEC) came into existence on the 25 th of June 1992<br />
with the signature of the “Summit Declaration on <strong>Black</strong> <strong>Sea</strong> Economic Cooperation” <strong>and</strong> the<br />
“Bosphorus Statement” by the Heads of State of eleven countries: Albania, Armenia,<br />
Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey <strong>and</strong> Ukraine. Its<br />
Charter became effective on the 1 st of May 1999, <strong>and</strong> the BSEC was transformed into an<br />
international legal entity as a regional economic organisation: the “Organization of the <strong>Black</strong><br />
<strong>Sea</strong> Economic Cooperation”. Serbia <strong>and</strong> Montenegro joined the Organization in April 2004.<br />
The regional organisation bases its cooperation on the Summit Declaration <strong>and</strong> Bosphorus<br />
Statement, <strong>and</strong> on other declarations signed in subsequent meetings (Bucharest, Moscow,<br />
etc).<br />
Owing to its geographical location, the <strong>Black</strong> <strong>Sea</strong> region could easily be integrated into the<br />
markets of Europe, Central Asia <strong>and</strong>/or the Middle East (see box 1). The region has long<br />
been seen as a very challenging economic area for both political <strong>and</strong> economic reasons. The<br />
initial purpose of the BSEC was to gradually exp<strong>and</strong> intra-regional trade <strong>and</strong> investment <strong>and</strong><br />
identify the key milestones for trade potential in the sub-region. The Organization of the BSEC<br />
has progressively been recognized since its foundation to be a key actor in promoting the<br />
region as an area of peace, cooperation <strong>and</strong> prosperity.<br />
Box 1. BSEC Configuration <strong>and</strong> the EU<br />
Whilst being part of the BSEC, a number of countries are already Members of the EU, are<br />
c<strong>and</strong>idate countries, or aspire to become Members of the EU in due course. The political<br />
<strong>and</strong> economic incentives related to joining the EU have led to a trade policy shift towards<br />
the EU <strong>and</strong> away from traditional markets. Greece is a Member State of the EU since<br />
1981, while Romania <strong>and</strong> Bulgaria acceded to the EU on 1 January 2007. Turkey was<br />
formally recognised as a c<strong>and</strong>idate country in 1999, <strong>and</strong> is still undergoing negotiations for<br />
accession.<br />
The BSEC institutional structure is based on four main pillars comprising the governments,<br />
parliaments, private sectors <strong>and</strong> local administrations of Member States. The highest decision<br />
making organ of the BSEC is the Meeting of the Ministers of Foreign Affairs (MMFA). The<br />
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