Identifier
Created
Classification
Origin
06ZAGREB1467
2006-12-12 14:47:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Zagreb
Cable title:
CROATIA ON CEFTA: SIGN AND KEEP TALKING
how-toVZCZCXYZ0010 PP RUEHWEB DE RUEHVB #1467 3461447 ZNR UUUUU ZZH P 121447Z DEC 06 FM AMEMBASSY ZAGREB TO RUEHC/SECSTATE WASHDC PRIORITY 7032 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
UNCLAS ZAGREB 001467
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/SCE; EUR/ACE
E.O. 12958: N/A
TAGS: ETRD PREL PGOV HR BK SY
SUBJECT: CROATIA ON CEFTA: SIGN AND KEEP TALKING
REF: A. STATE 197229
B. SARAJEVO 3130
C. SARAJEVO 3111
D. ZAGREB 1400
E. BELGRADE 1974
UNCLAS ZAGREB 001467
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/SCE; EUR/ACE
E.O. 12958: N/A
TAGS: ETRD PREL PGOV HR BK SY
SUBJECT: CROATIA ON CEFTA: SIGN AND KEEP TALKING
REF: A. STATE 197229
B. SARAJEVO 3130
C. SARAJEVO 3111
D. ZAGREB 1400
E. BELGRADE 1974
1. (SBU) In a December 11 meeting with Croatian MFA State
Secretary Hido Biscevic, Ambassador urged the GOC to show
SIPDIS
flexibility in working to find a solution to the current
disagreement with Bosnia over CEFTA, stressing Croatia's role
in the region and the fact that a CEFTA without Bosnia would
be a hollow agreement. Biscevic said that the fact that
Serbia was prepared to sign the agreement made it easier to
deal with BiH. Without revealing specifics of Croatia's
position, he said he was convinced that Bosnia would part of
the agreement.
2. (SBU) Econoff followed up with the same message on
December 12 to Assistant Minister of Economy Igor Lucic.
Lucic said that Croatia was encouraging Bosnia to sign,
pointing out that Articles 23 and 24 of the CEFTA agreement
contain provisions for the implementation of safeguards that
Bosnia could have recourse to if it believes particular
sectors were being damaged by Croatian imports. He said that
the important element for Croatia is that safeguards would be
applied to all CEFTA members and not only to Croatia,
reflecting a view here that Bosnia does not have sufficient
domestic capacity for import substitution. Lucic pointed to
the fact that Croatian agricultural exports to Bosnia fell by
1 percent in 2005 and were set to continue that trend in
2006, even as current duties apply to only 15 percent of
agricultural exports.
3. (SBU) Comment: Although the Ministry of Economy has led
the negotiations for Croatia, PM Sanader is clearly calling
the shots. Croatia so far has shown no signs that it is
prepared to back down on this issue, although the GOC is
clearly sensitive to the pressure being put on it and does
not want to be blamed for precipitating a failure of CEFTA.
Zagreb's preferred way forward appears to be to have BiH sign
the agreement and then keep talking without the pressure of
the Dec 19 date in the background. End Comment.
BRADTKE
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/SCE; EUR/ACE
E.O. 12958: N/A
TAGS: ETRD PREL PGOV HR BK SY
SUBJECT: CROATIA ON CEFTA: SIGN AND KEEP TALKING
REF: A. STATE 197229
B. SARAJEVO 3130
C. SARAJEVO 3111
D. ZAGREB 1400
E. BELGRADE 1974
1. (SBU) In a December 11 meeting with Croatian MFA State
Secretary Hido Biscevic, Ambassador urged the GOC to show
SIPDIS
flexibility in working to find a solution to the current
disagreement with Bosnia over CEFTA, stressing Croatia's role
in the region and the fact that a CEFTA without Bosnia would
be a hollow agreement. Biscevic said that the fact that
Serbia was prepared to sign the agreement made it easier to
deal with BiH. Without revealing specifics of Croatia's
position, he said he was convinced that Bosnia would part of
the agreement.
2. (SBU) Econoff followed up with the same message on
December 12 to Assistant Minister of Economy Igor Lucic.
Lucic said that Croatia was encouraging Bosnia to sign,
pointing out that Articles 23 and 24 of the CEFTA agreement
contain provisions for the implementation of safeguards that
Bosnia could have recourse to if it believes particular
sectors were being damaged by Croatian imports. He said that
the important element for Croatia is that safeguards would be
applied to all CEFTA members and not only to Croatia,
reflecting a view here that Bosnia does not have sufficient
domestic capacity for import substitution. Lucic pointed to
the fact that Croatian agricultural exports to Bosnia fell by
1 percent in 2005 and were set to continue that trend in
2006, even as current duties apply to only 15 percent of
agricultural exports.
3. (SBU) Comment: Although the Ministry of Economy has led
the negotiations for Croatia, PM Sanader is clearly calling
the shots. Croatia so far has shown no signs that it is
prepared to back down on this issue, although the GOC is
clearly sensitive to the pressure being put on it and does
not want to be blamed for precipitating a failure of CEFTA.
Zagreb's preferred way forward appears to be to have BiH sign
the agreement and then keep talking without the pressure of
the Dec 19 date in the background. End Comment.
BRADTKE