REGIONAL COOPERATION AND ECONOMIC INTEGRATION

CEFTA-2006 TRADE COOPERATION
Irena Kikerkova, Ph.D.,
Ss Cyril and Methodius University,
Faculty of Economics - Skopje,
Macedonia
CEFTA-2006 AS BASIS FOR ECONOMIC REINTEGRATION OF
WESTERN BALKAN COUNTRIES
Abstract
Trade theory’s arguments of high direct interdependence between economic growth and
trade liberalization have been confirmed by numerous practical evidence and confirmations.
Practical experience also confirms that a country, situated in a prosperous and well trade
connected region, gains positive external influences and benefits in its total economic
growth and prosperity, and vice versa.
Striving to get better market access and different trade preferences with the EU, Balkan
countries demonstrated a complete lack of capacity to face the issue of trade and
economic reintegration of the Balkan region. Historical evidence clearly points out that
the region suffers from a process of disintegration within the last one hundred years. The
dissolution of the region has been especially severe during the last two decades. This could
be considered as one of the most important causes for the lagging behind of each of its
independent economies. Most of the Balkan countries implemented significant reforms and
paid special attention to the macroeconomic stability. Yet, their economies happen to be
very vulnerable and exposed even to slightest external shocks and do not record significant
economic growth over the last two decades. The situation is even worse for the Western
Balkan countries from which only Croatia managed to slightly surpass the development
level reached in 1989.
This article would try to explain weather the multilateral free trade agreement – CEFTA-
2006 has the capacity necessary to help reintegration and economic and trade growth of
the Western Balkans economies.
Key words:
CEFTA-2006, trade liberalization, Western Balkan countries, economic
reintegration, trade exchange of goods
INTRODUCTION
For over a decade the international community launched several initiatives on the
establishment of at least a free trade area that would facilitate trade exchange and would
help the reestablishment of economic ties and partnerships among the Western Balkan
countries. The outcome of the many initiatives was the signing up of several regional
cooperation agreements such as: BSEC, SECI, SEECP etc. (Kikerkova, 2008:353-354).
All of these agreements resulted with slight and insignificant improvement of the trade
cooperation within the region. Finding a lack of capacity and insufficient political will of
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