REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART II:
Total Croatian export to the CEFTA members reached 3.3 billion USD in 2008. In
comparison with 2007, when total export to CEFTA was around 2.8 billion USD, this
is an increase of about 20.8 percent. On the other hand, total Croatian import from the
CEFTA members in 2008 was around 1.5 billion USD. The import rose 18.8 percent in
comparison with 2007, when it amounted to 1.3 billion USD. Croatia has the largest surplus
in merchandise trade with Bosnia and Herzegovina. In 2008 it amounted to 1.4 billion
USD. From 2002 to 2008, total surplus was 5.9 billion USD. Bosnia and Herzegovina is
for Croatia the second most important merchandise export destination, first being Italy
-from 2001 to 2008 total export to Italy amounted to 15 billion USD, whereas total export
to Bosnia and Herzegovina was around 9.8 billion USD. Croatia ranks as first among trade
partners concerning both exports and imports from and to Bosnia and Herzegovina (in
period 2001-2008, Croatian shares in Bosnia and Herzegovina’s exports and imports were
17.9 and 17 percent, respectively). According to Croatian Chamber of Economy data, the
most important Croatian export product to Bosnia and Herzegovina in 2008 is crude oil and
oils derived from bitumen minerals (30 percent of export) and the most important Bosnian
and Herzegovinian exports are crude aluminum (18.5 percent of exports to Croatia) and
electric energy (7.3 percent). Another significant surplus in merchandise trade is realized
in trade with Serbia. In 2008 it amounted to 350 million USD. Crude oil and oils derived
from bitumen minerals and polymers ethylene in primary forms are major Croatian export
products to Serbia in 2008, whereas flat-rolled iron products or non-alloy steel and electric
power are the most frequent commodity imported from Serbia. The surplus in merchandise
trade is also realized in trade with Montenegro and Albania. In 2008, Croatian export to
Montenegro (187 million USD) was 26.4 times higher than Montenegrin export to Croatia (7
million USD). Among CEFTA members, the smallest import to Croatia was from Albania.
In 2008 it amounted to 4.8 million USD and Croatian export was around 44.8 million
USD, thus making a surplus in merchandise trade with Albania of 39.6 million USD. The
major Croatian export products to Albania in 2008 are articles of iron and steel (excluding
prefabricated articles) and stranded wire, cables, plaited bands and the like, while major
Albanian exports to Croatia are footwear with outer soles of rubber and plastics, corn
and plants and parts of plants (including seeds and fruits). The only two counties that
record surplus in merchandise trade with Croatia in 2008 are Macedonia and Moldova.
The deficit with Macedonia was 135 million USD, while the deficit with Moldova was
significantly smaller and it amounted to 6.7 million USD. In 2008 a half of Macedonian
exports to Croatia were iron or steel flat-rolled products. On the other hand, major export
products from Croatia to Macedonia include electrical machinery, equipment and parts
thereof (7.8%), edible products (6.2%) and soaps and cleaning preparations (6.2%).Unlike
the “old” CEFTA, which was composed of developed transition countries, now members
of the EU, the “new” CEFTA gathers countries of Western Balkans plus Moldova. “New”
CEFTA has proved to be a successful experiment for Croatian companies, since it has
opened a market with around 28 million potential consumers to them. Statistics show a
steady growth of foreign trade with CEFTA member states. As already mentioned above,
the most significant merchandise trade of Croatia is realized with Serbia and Bosnia and
Herzegovina. Trade with other members of CEFTA is still relatively small. Apart from the
regime of free trade, one of the possible explanations for such good results in merchandise
trade with “new” CEFTA is a much smaller competition on the markets of this integration,
compared to the markets of Western Europe. Nevertheless, experts point out that all this
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