"Western Europe grew rich on free trade, the same can happen in Southeastern Europe", Erhard Busek commented the free trade agreement (FTA) concluded between FYR Macedonia and Albania in Skopje on 11 January 2002.

In the framework of the Stability Pact’s Free Trade Initiative, this agreement is one of a planned 21 free trade agreements, which are either concluded or revised during the year 2002 amongst seven countries in Southeastern Europe. The aim is to establish a network of bilateral free trade agreements between Albania, Bosnia-Herzegovina (BiH), Bulgaria, Croatia, FYR Macedonia, Romania and Yugoslavia. Moldova, on the occasion of signing of the respective Memorandum of Understanding by these 7 countries on 27 June 2001 in Brussels, has stated to join this process as well.

Six FTAs existed prior to 27 June 2001, 3 were signed in the meantime (between Bulgaria and Croatia, Yugoslavia and BiH, FYR Macedonia and Albania – see attached table) and of the remaining 12 agreements to be concluded in 2002, most are currently under negotiation. All agreements will be in conformity with WTO rules and in line with the respective partnership of the individual countries vis-à-vis the EU.

The Special Co-ordinator, Erhard Busek, calls upon all governments concerned to maintain the ambitious timetable and to conclude all necessary agreements by the end of 2002. By this, the countries of Southeastern Europe will have an enlarged export market of roughly 55 million consumers, where trade is liberalised. The process is expected to attract more investment to the region. Together with the preferential export conditions granted by the European Union to SEE countries, the regional free trade regime is instrumental in creating open economies. Such economies can benefit from the advantageous assets of low labour costs and well-educated workforces prevailing in all countries of Southeastern Europe.

Free Trade Agreements in South Eastern Europe (January 2002)