Central European Free Trade Agreement
Encyclopedia
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The Central European Free Trade Agreement (CEFTA) is a trade agreement between non-EU
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
countries in Southeast Europe
Southeast Europe
Southeast Europe or Southeastern Europe is a relatively recent political designation for the states of the Balkans. Writers such as Maria Todorova and Vesna Goldsworthy have suggested the use of the term Southeastern Europe to replace the word Balkans for the region, to minimize potential...
.
Members
As of 1 May 2007, the parties of the CEFTA agreement are: AlbaniaAlbania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
, Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
, Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
, Macedonia
Republic of Macedonia
Macedonia , officially the Republic of Macedonia , is a country located in the central Balkan peninsula in Southeast Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
, Moldova
Moldova
Moldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part...
, Montenegro
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
, Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
and UNMIK on behalf of Kosovo
Kosovo
Kosovo is a region in southeastern Europe. Part of the Ottoman Empire for more than five centuries, later the Autonomous Province of Kosovo and Metohija within Serbia...
.
Former parties are Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
, the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
, Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
and Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...
. Their CEFTA membership ended when they joined the EU.
| Parties of agreement | joined | left | |
|---|---|---|---|
| 1992 | 2004 | ||
| 1992 | 2004 | ||
| (1992 only) |
(from 1993) | 1992 | 2004 |
| (from 1993) | 2004 | ||
| 1996 | 2004 | ||
| 1997 | 2007 | ||
| 1999 | 2007 | ||
| 2003 | — | ||
| 2006 | — | ||
| 2007 | — | ||
| 2007 | — | ||
| 2007 | — | ||
| 2007 | — | ||
| 2007 | — | ||
 United Nations UNMIK-KosovoKosovo Kosovo is a region in southeastern Europe. Part of the Ottoman Empire for more than five centuries, later the Autonomous Province of Kosovo and Metohija within Serbia... |
2007 | — | |
Membership criteria
Former PoznańPoznan
Poznań is a city on the Warta river in west-central Poland, with a population of 556,022 in June 2009. It is among the oldest cities in Poland, and was one of the most important centres in the early Polish state, whose first rulers were buried at Poznań's cathedral. It is sometimes claimed to be...
Declaration criteria:
- World Trade Organisation membership
- European Union Association AgreementEuropean Union Association AgreementA European Union Association Agreement is a treaty between the European Union and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links...
with provisions for future full membership - Free Trade Agreements with the current CEFTA member states
Current criteria since Zagreb
Zagreb
Zagreb is the capital and the largest city of the Republic of Croatia. It is in the northwest of the country, along the Sava river, at the southern slopes of the Medvednica mountain. Zagreb lies at an elevation of approximately above sea level. According to the last official census, Zagreb's city...
meeting in 2005:
- WTO membership or commitment to respect all WTO regulations
- any European Union Association AgreementEuropean Union Association AgreementA European Union Association Agreement is a treaty between the European Union and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links...
- Free Trade Agreements with the current CEFTA member states
Current members
| Flag | State | Accession | Population | Area (km²) | Capital | GDP in millions (PPP) | GDP per capita (PPP) |
|---|---|---|---|---|---|---|---|
 |
Albania Albania Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea... |
3,619,778 | 28,748 | Tirana Tirana Tirana is the capital and the largest city of Albania. Modern Tirana was founded as an Ottoman town in 1614 by Sulejman Bargjini, a local ruler from Mullet, although the area has been continuously inhabited since antiquity. Tirana became Albania's capital city in 1920 and has a population of over... |
22,823 | 7,163 | |
 |
Bosnia and Herzegovina Bosnia and Herzegovina Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the... |
4,590,310 | 51,209 | Sarajevo Sarajevo Sarajevo |Bosnia]], surrounded by the Dinaric Alps and situated along the Miljacka River in the heart of Southeastern Europe and the Balkans.... |
31,492 | 8,095 | |
 |
Croatia Croatia Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ... |
4,491,543 | 56,542 | Zagreb Zagreb Zagreb is the capital and the largest city of the Republic of Croatia. It is in the northwest of the country, along the Sava river, at the southern slopes of the Medvednica mountain. Zagreb lies at an elevation of approximately above sea level. According to the last official census, Zagreb's city... |
78,539 | 17,703 | |
 |
Macedonia Republic of Macedonia Macedonia , officially the Republic of Macedonia , is a country located in the central Balkan peninsula in Southeast Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991... |
2,061,315 | 25,333 | Skopje Skopje Skopje is the capital and largest city of the Republic of Macedonia with about a third of the total population. It is the country's political, cultural, economic, and academic centre... |
18,902 | 9,170 | |
 |
Moldova Moldova Moldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part... |
4,324,450 | 33,843 | Chişinău Chisinau Chișinău is the capital and largest municipality of Moldova. It is also its main industrial and commercial centre and is located in the middle of the country, on the river Bîc... |
10,141 | 2,842 | |
 |
Montenegro Montenegro Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the... |
678,177 | 14,026 | Podgorica Podgorica Podgorica , is the capital and largest city of Montenegro.Podgorica's favourable position at the confluence of the Ribnica and Morača rivers and the meeting point of the fertile Zeta Plain and Bjelopavlići Valley has encouraged settlement... |
6,439 | 10,286 | |
 |
Serbia Serbia Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans... |
7,400,000 | 88,361 | Belgrade Belgrade Belgrade is the capital and largest city of Serbia. It is located at the confluence of the Sava and Danube rivers, where the Pannonian Plain meets the Balkans. According to official results of Census 2011, the city has a population of 1,639,121. It is one of the 15 largest cities in Europe... |
80,602 | 12,000 | |
| |
UNMIK-Kosovo Kosovo Kosovo is a region in southeastern Europe. Part of the Ottoman Empire for more than five centuries, later the Autonomous Province of Kosovo and Metohija within Serbia... |
1,804,838 | 10,908 | Pristina Pristina Pristina, also spelled Prishtina and Priština is the capital and largest city of Kosovo. It is the administrative centre of the homonymous municipality and district.... |
4,000 | 2,300 |
Original agreement
Original CEFTA agreement was signed by Visegrád GroupVisegrád Group
The Visegrád Group, also called the Visegrád Four or V4, is an alliance of four Central European states – Czech Republic, Hungary, Poland and Slovakia – for the purposes of cooperation and furthering their European integration...
countries, that is by Poland, Hungary and Czech and Slovak republics (at the time parts of the Czech and Slovak Federative Republic) on 21 December 1992 in Kraków
Kraków
Kraków also Krakow, or Cracow , is the second largest and one of the oldest cities in Poland. Situated on the Vistula River in the Lesser Poland region, the city dates back to the 7th century. Kraków has traditionally been one of the leading centres of Polish academic, cultural, and artistic life...
, Poland. It entered into force since July 1994. Through CEFTA, participating countries hoped to mobilize efforts to integrate Western Europe
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...
an institutions and through this, to join European political, economic, security and legal systems, thereby consolidating democracy
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...
and free-market economics.
The agreement was amended by the agreements signed on 11 September 1995 in Brno
Brno
Brno by population and area is the second largest city in the Czech Republic, the largest Moravian city, and the historical capital city of the Margraviate of Moravia. Brno is the administrative centre of the South Moravian Region where it forms a separate district Brno-City District...
and on 4 July 2003 in Bled
Bled
Bled is a municipality in northwestern Slovenia in the region of Upper Carniola. The area, within the Julian Alps, is a popular tourist destination.-History:...
.
Slovenia joined CEFTA in 1996, Romania in 1997, Bulgaria in 1999, Croatia in 2003 and Macedonia in 2006.
CEFTA 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 BalkanBalkans
The Balkans is a geopolitical and cultural region of southeastern Europe...
states, which already had completed a matrix of bilateral free trade agreements in the framework of the Stability Pact for South Eastern Europe
Stability Pact for South Eastern Europe
The Stability Pact for South Eastern Europe was an institution aimed at strengthening peace, democracy, human rights and economy in the countries of South Eastern Europe from 1999-2008. It was replaced by the Regional Co-operation Council in February 2008...
. On 6 April 2006, at the South East Europe Prime Ministers Summit in Bucharest
Bucharest
Bucharest is the capital municipality, cultural, industrial, and financial centre of Romania. It is the largest city in Romania, located in the southeast of the country, at , and lies on the banks of the Dâmbovița River....
, a joint declaration on expansion of CEFTA to Albania
Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
, Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
, Moldova
Moldova
Moldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part...
, Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
, Montenegro
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
and UNMIK on behalf of Kosovo
United Nations Interim Administration Mission in Kosovo
The United Nations Interim Administration Mission in Kosovo or UNMIK is the interim civilian administration in Kosovo, under the authority of the United Nations. The mission was established on 10 June 1999 by Security Council Resolution 1244...
was adopted. Accession of Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
has also been discussed. The new enlarged agreement was initialled on 9 November 2006 in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
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, Macedonia, Moldova and Montenegro, 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.
After the declaration of independence of Kosovo on 17 February 2008 UNMIK continued to represent Kosovo at all CEFTA meetings. At the end of 2008 Kosovo changed its customs stamps replacing UNMIK with Kosovo. This resulted in a trade blockade from Serbia and Bosnia that do not recognise the Republic of Kosovo. In July 2011 the government in Pristina sent security forces to two crossing points between Serbia and Kosovo in an unsuccessful attempt to enforce a ban on Serbian imports, which led to clashes.
Relations with the EU
All former participating countries had previously signed association agreements with the EU, so in fact CEFTA has served as a preparation for full European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
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 is to join the EU in 2013. Macedonia and Montenegro are also official candidate countries of the EU.
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
- Economy of EuropeEconomy of EuropeThe economy of Europe comprises more than 731 million people in 48 different states. Like other continents, the wealth of Europe's states varies, although the poorest are well above the poorest states of other continents in terms of GDP and living standards. The difference in wealth across...
- Enlargement of the European UnionEnlargement of the European UnionThe Enlargement of the European Union is the process of expanding the European Union through the accession of new member states. This process began with the Inner Six, who founded the European Coal and Steel Community in 1952...
- European Free Trade AssociationEuropean Free Trade AssociationThe European Free Trade Association or EFTA is a free trade organisation between four European countries that operates parallel to, and is linked to, the European Union . EFTA was established on 3 May 1960 as a trade bloc-alternative for European states who were either unable to, or chose not to,...
(EFTA) - Free trade areas in Europe
- Stability Pact for South Eastern EuropeStability Pact for South Eastern EuropeThe Stability Pact for South Eastern Europe was an institution aimed at strengthening peace, democracy, human rights and economy in the countries of South Eastern Europe from 1999-2008. It was replaced by the Regional Co-operation Council in February 2008...
(including a matrix of bilateral FTAs) - Visegrád GroupVisegrád GroupThe Visegrád Group, also called the Visegrád Four or V4, is an alliance of four Central European states – Czech Republic, Hungary, Poland and Slovakia – for the purposes of cooperation and furthering their European integration...