At a Ministerial Meeting prior to the Working Table, SEE Trade Ministers took stock of the state of affairs on the negotiations on Free Trade Agreements (FTA) and endorsed a Statement on Priorities for 2003. In view of completing the network of 21 bilateral FTAs by end of 2002, Special Coordinator Erhard Busek was optimistic about reaching this goal, since 9 agreements have been concluded and 9 are under active negotiation. The remaining 3 will start shortly.

Table showing state of negotiantions on free trade agreements amongst see countries

Ministers also agreed on priorities for 2003 in order to follow up on the establishment of free trade in SEE and further enhance trade and export opportunities for businesses in SEE and to attract investment. The Bulgarian Deputy Prime Minister and Minister of Economy, Nikolai Vassilev, summed this undertaking up by stating that the region “needed more trade, rather than aid”. Apart from committing themselves to implementing the FTAs, it was agreed in the Priorities 2003 Statement that Governments would concentrate on eliminating non-tariff barriers, applying a common set of rules of origin and the simplification of customs procedures, especially at border crossings. ( Ministerial Statement on Trade Priorities for 2003)

The Working Table Meeting in Sofia 20-21 June in Sofia, jointly chaired by Bulgarian Deputy Minister of Economy Sophia Kassidova and Table-Chair Fabrizio Saccomanni, was updated on the status of the Infrastructure Projects in the region, totalling 46 projects with a financial volume of 3.46 billion Euro. Substantial progress has been made in this field. The projects with secured funding which were started by June 2002 stand at 23, double the figure of December 2001. The biggest part of infrastructure investment is going to the transport sector (70% of total), equivalent to 2.42 billion Euro. The breakdown of the total is as follows: Albania = 410.02 million Euro, BiH = 347.50 million Euro, Bulgaria = 650.00 million Euro, Croatia = 265.14 million Euro, FYR Macedonia = 159.20 million Euro, Romania = 885.74 million Euro, FR Yugoslavia = 452.05 million Euro, Kosovo = 64.0 million Euro, Moldova = 42.08 million Euro, Regional Projects = 184.70 million Euro. ( Full list of 46 projects)

The Working Table discussed regional cooperation in energy, especially electricity. The European Commission Regional Electricity Market is crucial in this, aiming at integrating the regional markets within SEE and eventually into the internal electricity market of the EU. These efforts are complemented by an assessment on Prioritisation of Investment Needs in this sector. The assessment has been initiated by the Stability Pact in cooperation with the international donors and the region.

The Working Table also adopted a Strategy for further promoting the Investment Compact as a means to attract private investment, both foreign and local, in the countries of the region. It was stressed that political support was needed to implement the strategy. A very good opportunity for this will be the signing of a Ministerial Declaration on Attracting Investment in SEE 18 July 2002 in Vienna. (For details, see Press Background Paper on Investment Compact Strategy 2002)

The Working Table also lauded results achieved so far under the Sava River Basin Initiative by which BiH, Croatia, FR Yugoslavia and Slovenia are developing the Sava River as an international navigation route and ensure the sustainable development of the Sava River Basin by regulating the utilization, protection and management of its waters and related resources. An international framework agreement and a development plan are prepared. ( Full list of Stability Pact projects with regional ownership