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| Kindergarten for EU Accession
"In the Central European Initiative (CEI) countries we are able to establish ourselves better and more quickly," said Ludovit Cernak, Slovak Economy Minister. |
The
CEI countries have a 50 per cent share of Slovak foreign trade.
In 1997, Slovakia registered the highest growth of trade with Bosnia and Herzegovina, Moldava, Romania, Poland, Ukraine and Slovenia. According to Černák, Slovakia's business and political interests are to increase commercial exchange with the CEI countries.
Mr Černák, despite the fact that the CEI was established 9 years ago, its self-definition remains unclear. It is not an international organisation, nor does it have an organisational structure or management bodies. It often said to be a mere discussion forum or a certain form of regional co-operation. How does Slovakia perceive and define the CEI?
I participated in establishing the Visegrad Four in a period marked by our frequent discussions with the EU countries. They supported this initiative, because they considered it to be a kind of kindergarten before accession to the Union. Associations like V-4, CEFTA and CEI were formed under certain circumstances. Their operation was maintained by mutual agreements, some of them faster, others slower. I believe that such associations or even regional preferential agreements are a real 'kindergarten' before integration into the EU.
Slovakia considers the CEI to be a regional tool of European integration and is to continue to defend the Initiative being open to other countries in the region.
Do you think it is necessary that the CEI be transformed into a free trade zone for 240 million people?
No. I do not think that the CEI's prospect is in a transformation to a new bloc or a substitute for the former Council for Mutual Economic Aid (RVHP). In my opinion, the prospect is in decreasing the commercial barriers between central and eastern European countries, based on agreements reached on the basis of bilateral agreements between these countries. I perceive the activities of the CEI as matches prior to the 'premier league', which all countries would like to join. Slovakia would even like to catch up with the first group.
Let's go back to the term 'kindergarten' - Slovakia performs 88 per cent of its export and 75 per cent of import through regional preferential agreements based on Article 24 of the World Trade Organisation (WTO). Although the WTO's rules look at similar agreements with a certain contempt, they are still tolerated. Countries which sign such agreements and thus decrease the trading barriers, approach the trend towards the EU and global integration.
Your speech at the summit of economic ministers and ministers of foreign trade of the CEI member states in Zagreb on November 20, 1997 included a statement, according to which Slovakia's political and economic aim is to increase trade with the CEI member states. Does that mean that Slovakia's declared priority - to have its most intensive business relations with the EU - is no longer applicable?
This statement has to be understood with respect to data indicating that the growth dynamics of the mutual trade between the Balkan countries and the CEI is substantially higher than that with EU countries. The EU is our strategic goal and partner. We are approaching the Union, which represents approximately one third of our mutual commercial exchange. However, the competition is very hard. We are able to establish ourselves faster and better in the CEI countries, even though we have to face typical problems of the central and eastern European countries, such as bad payment discipline and negative financial conditions for conducting mutual business. Our strategic goal is EU membership. Nevertheless, as in other countries we are trying to reach commercial success wherever possible. Currently, this is easier for us in countries with less competition, with established contacts and countries, which our exporters find relatively easy to trade with.
Is it not a paradox that Slovak exports to countries which are not members of the WTO is on the increase?
From among all associated countries, Slovakia has the lowest customs coincidence. Our duties are even lower than those of the states which are in the first group of central European countries to join the Union. During our discussions with individual countries we would like to export to, we aim at making their barriers for our goods lower. Let me mention the example of Croatia, which has high customs barriers for our paper industry, agricultural sector and food products. Therefore, we are holding discussions in order to open the doors for further Slovak products. Anywhere Slovak products manage to open the doors to, results in an advantage for the Slovak balance of foreign trade. That means that we are trying all the possible ways, as all EU countries do. It does not cast doubts on our aim to become a valid member of the Union at all.
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Slovak Trade FORUM