engleski

EU and western Balkan countries - a way to regional trade growth

Economic integrations’ positive develop impacts are more and more evident and appreciated among theoreticians and practitioners. Countries from West Balkans (WB) signed 2006 an agreement establishing new CEFTA as economic integration of FTA form. In the paper theoretical and practical aspects of enhancing the expected positive development and welfare effects of new CEFTA for its member countries are discussed. The paper argues about the potential highly positive impacts of introducing a specific pan EU – WB rules of product origin. Arguments for positive effects of such new trade based relations between the EU and countries of WB are derived from positive experiences of older pan European cumulation of product origin which was later (2005) extended to pan Euro Med cumulation regime. Eventual introduction of a new pan EU-WB cumulation arrangement could support faster increase of CEFTA members’ mutual trade and simultaneously trade with the EU. On such bases skilled labour and capital intensive content of exported products to EU will increase substantially and much faster. WB exports quality upgrading based on pan EU-WB cumulation will positively affect increased economic growth and welfare in the entire region.

economic integration, CEFTA, EU, rules of product origin, origin cumulation

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