Trade & Investment

Key Points from the Fourteenth Meeting of the Working Group on Trade Liberalisation and Facilitation

The Group’s work is determined by the Ministerial Statement and by the Strategy and Action Plan for 2004 that Ministers endorsed in Rome on 13 November 2003.

Countries reported progress in signing free trade agreements – see updated FTA matrix. Moldova reported significant progress. SCG had submitted the amended FTAs as a package to the Union Parliament for ratification by priority procedure. BiH is processing agreements for ratification and expects them to enter into force by 1 May 2004.

The MoU and the subsequent Ministerial Meetings highlighted the role of the Trade Working Group in monitoring the implementation of the FTAs. Suspension or postponement of commitments under the FTAs should be an option of last resort, after all alternatives have been exhausted. The Trade Working Group can be a useful forum for developing options for resolution of issues that will inevitably arise under implementation of the FTAs.

The Chair noted the Group’s satisfaction that the EC/Swiss project to identify and classify NTBs in the region was underway. All countries indicated their full support for the project and noted the importance of building on existing information.

Promotion of the free trade area is a key task for the Group. Based on the Group’s discussion, the Secretariat will circulate a short proposal outlining specific step to take, including placing documents on the SP website and providing links to other websites, participating in relevant meetings and organising specific promotional seminars.

A large range of trade related technical assistance projects are underway or planned in the region. The Secretariat will update the table on TA projects and review with the different donors in advance of the next meeting. Donors are encouraged to liaise with each other regarding projects to avoid duplication.

Conformity of FTAs with the MoU is a key issue for the Group in 2004. Following the results of the review conducted by Groupe Economie Modiale, countries will report to the next meeting of steps they could take to attain conformity and any difficulties in that connection. Assistance can be provided as necessary.

The Chair thanked the OECD for its report on the Paris meeting and noted with appreciation the capacity building seminars to be held in the region this spring. The creation of a Services Task Force reporting to the Trade Working Group was approved. Ms Snezana Zubic-Petrovic has been appointed as rapporteur from the Services Sub-Group to the Trade Working Group. The sub-group will submit an action plan to the next meeting of the Trade WG.

An interesting discussion was held on approaches for consolidating and harmonising the network of bilateral FTAs, following the presentation of CEFTA by the Bulgarian representative. The World Bank has offered to contribute to the funding of the detailed analysis required to underpin the development of specific options for harmonisation.

All expressed appreciation for the kind hospitality of the Hungarian Ministry of Foreign Affairs. The next meeting will take place in June.