REGIONAL COOPERATION AND ECONOMIC INTEGRATION

REGIONAL TRADE AGREEMENTS AND REGIONAL COOPERATION
actual value of benefits measured by GDP or GNI increases are at large different among
the states included into the trade liberalization. Not on such bases but still different effects
of trade liberalization were respected during GATT rounds giving different periods and
levels of liberalization to contracting parties based on their development levels. Even more
the theory and practice often does not consider internal distribution of trade liberalization
benefits among different social/economic groups. It is true that suggestions given by theory
(Stolper/Samuelson Theorem) depend on (too) many assumptions to be evidently connected
to practical aspect of trade liberalization. These to aspects partially explain problems with
multilateral trade liberalization efforts especially after acceptance of Doha Agenda.
Based on regional integration theory and general trade theory advocating maximizing of
benefits in totally open economies we assessed, based on different researches and texts,
that countries in region with similar production structure and similar level of GDP have
potentially better chances to create larger benefits out of regional trade liberalization.
Following that logic we looked to trade cooperation of the WBCs who are CEFTA
members. Past regional trade is limited and on partial data we stated that after 2006 –
CEFTA establishment – was not substantially increased. Among other potential reasons
for such unfavorable development we focused on rules of origin in the region providing
potential production cooperation in the region with still free access to EU (major partner)
market. Some technical explanations of the logic and practicalities of the rules of origin
in the Eu practice helped us to develop some optimism for future faster regional trade
development. The optimism was based on decision of the Eu Commission from March
2009 introducing the right to diagonal accumulation of origin in CEFTA region.
Based on theory and evidences accelerated trade increase in WBCs region is highly needed
due to low levels of present GDPs and on the other side by request of the EU to fulfill the
criteria of effective and functional market economy. Just formal introduction of diagonal
cumulation of rules of origin will not be enough to boost the regional trade. Proper and
focused utilization of the new opportunities should be connected to practical business
decisions and development plans. It should be simultaneously supported by transparent
and adequate administrative activities on the borders of all participating counties.
REFERENCES
European Commission; Notice concerning preferential agreements providing for diagonal
cumulation of origin between the Community, Western Balkan countries and Turkey,
(2009/C 62/07), Official Journal of the European Union, 17.3.2009
Doha Development Agenda - http://www.wto.org/english/tratop_e/dda_e/dda_e.htm
Edwards, S . (1998), Openness, Productivity and Growth: What Do We Really Know The
Economic Journal. March 1998.
El-Agra A.M. (2004), The European Union – Economics &Policies, Pretice Hall, seventh
edition, 2004.
15