Similarly as with Slovenia, trade exchange between Slovakia and Croatia also stagnates in a long-term prospect. Year-on-year value of trade volume is fixed at the level of US$110 million in keeping the credit balance of the Slovak Republic. "Debit balance of Croatia is amortised to certain extent by tourism - expenses of Slovak tourists at Adriatic coast. We do not have to forget that about 200,000 Slovak tourists spend their holiday in Croatia during one season, as well as Croatia is the most visited country, where Slovak tourists travel for holidays," said Ante Ivkovic, Counsellor of Croatian Ambassador to Slovakia, in an interview for Slovak Trade Forum.

Despite various proclamations at governmental and non-governmental levels, trade between Slovakia and Croatia still has a stagnation character. Do you know why?

I agree with your opinion. The level of trade relations is under the limit of real possibilities and needs of the two countries. Causes of stagnation and insufficient utilisation are several. I think that the basic cause is insufficiency of experience from the side of Slovak and Croatian firms in the field of trading with foreign countries. I mean mainly small and medium-sized companies. Other causes are various administration, customs and financial barriers affecting especially small- and medium-sized entrepreneurs. Furthermore, survey on market is insufficient and it is influenced also by purchasing power of people. According to statistics from 1998, considering the purchasing power of Germans as number 100, Croatia's index is 28 and Slovakia's 40. Low purchasing power - low volume of trade.

It is spoken too much about current economy development in Croatia. Can we say that Croatia's economy is out of the worst danger?

In contrast with some other countries, Croatia had to face to military aggression, take care of refugees and expelled Croatians. The whole burden lied on shoulders of Croatian economy. Consequence of this state was increase of number of the unemployed by 300,000, decrease of exports and standard of living. Despite all these facts, only Slovenia has higher average wage as compared with countries undergoing transformation process followed by Croatia. The level of average wage in Croatia is US$644 and US$936 in Slovenia. Living expenditures are very high in Croatia. If we evaluated standard of Croatian inhabitants according to number of bought cars, personal computers or bank savings, it would be higher than average. Croatians' savings in the banks are worth of US$8.8 billion! It is expected that considerable part of financial means and savings of Croatians inhabitants are in foreign banks.

I cannot say we are satisfied with volume of industrial production and exports onto foreign markets. Croatia's year-on-year export of goods is worth about US$4.5 billion, but imports is worth twice higher. However, there is tourism, that mitigates our overall payment deficit. Therefore, tourism is the best Croatian goods, that we offer on world market. By means of tourism, we sell also other goods, food and services. So, it can be said tourism makes from Croatia relatively vital economy.

Slovak prospective exporters make an excuses that they cannot trade with Croatia because of high protection of Croatian market. Do you agree with such a statement?

Measures aimed at protection of domestic market in Croatia are not stricter as compared with other European countries. Even though, we are not members of the EU and CEFTA (Central European Free Trade Agreement) , Croatia applies similar legal and other standards as member countries of these groupings. We have already signed agreement on free trade with several countries and I have to say that we are trading in a liberal way.

Except for some agricultural products, Croatia does not apply any individual protection measures. Croatian government directs its attention towards free trade and equal battle in order to open market for the best in keeping of high quality. We strengthen competition character of domestic producers via free trade for their easily adaptation within the EU in the future. It is our strategic aim. They are painful measures, but we must hold on to approximate our standards to the European and become part of the economy network of Europe. Therefore, we are supportive to liberation process within the framework of Central European Initiative (CEI).

So far, Croatia is not a member of the World Trade Organisation (WTO). Did not complicate this handicap conclusion of agreements on free trade between Croatia and other countries, for example, with Slovakia?

Currently, final negotiations regarding our membership in the WTO are ongoing.

We are members of the International Monetary Fund (IMF) several years, and it is evident we fulfil very successfully all obligations stemming from the membership. WTO entry, which is expected to take place this year, is the final step necessary for CEFTA entry.

I have to emphasise that Slovakia expressed strong support to Croatia in this effort. It is real to expect that Croatia is to become CEFTA member by the end of 1999 what will open the door in favour of intensive economy cooperation.

Stagnation of the Slovak-Croatian trade is caused by low number of joint companies. Is there anything what would motivate in a more extensive way Slovak, as well as Croatian investors?

Croatia is open for cooperation in founding joint firms with Slovak partners if they are companies in Croatia, Slovakia or in some third country. Watching some talks held between representatives of Croatian and Slovak economy, I noticed that there really is bilateral interest and I have a feeling that it will become reality in Bosnia and Herzecovina. It is necessary to know that Bosnia presents big investment market and huge building site, into which international groupings invest high volume of financial means. I think it provides many opportunities for holding meetings between trade partners from Slovakia and Croatia, such as Hydrostav Bratislava.

Besides this, I know that about 50 Croatians own companies in Slovakia - some of them are in joint ownership with Slovak partners. Similarly, many Slovaks established their firms in Croatia, even though it is necessary to say that they are especially commercial firms. It would be better situation if these joint companies directed their attention towards industry or implementation of big investment projects. I know Slovaks owning tourist or hotel firms and successfully develop their entrepreneurial activities.

Slovak Trade FORUM