Croatia's First Deputy Prime Minister and Economy Minister, Radimir Cacic, and Kosovo's Minister of Economic Development, Besim Begaj, signed an economic cooperation agreement between the two governments in Zagreb on Wednesday, saying it was a basis for boosting the modest economic cooperation between the two countries.
Speaking after the signing ceremony in the Cabinet building, Cacic said that trade between Kosovo and Croatia was far below their potential, and warned that it would be further exacerbated after Croatia joins the European Union next year and leaves the Central European Free Trade Agreement (CEFTA).
Cacic said that Kosovo was developing successfully, with a projected growth rate for this year of 4.5%, "which is something many in Europe, including Croatia, can only dream about." He cited energy as a potential area of cooperation, noting that "it is one of the few industries where we have maintained knowledge and competitive production," as well as infrastructure and environmental protection.
The agreement signed today was described as a basis for a higher-level agreement, one on investment security and stimulation, which is expected to be signed soon in order to create a legal framework for the promotion of cooperation.
Begaj said that Croatia and Kosovo had excellent political relations, adding that it was a good precondition for stronger economic cooperation not just on the markets of the two countries but also for joint ventures on third markets. "Croatia has a valuable knowhow and we want to join forces," he said.
Begaj invited Croatian companies to come and do business in Kosovo and not just be focused on EU markets, noting that Croatian companies had "a psychological advantage in Kosovo where people know about them and the quality of their products."
"I think that in the present time of a global economic crisis we should turn to each other for economic cooperation and strengthen our potential for economic growth," Begaj said.
Begaj spoke of a growing market in his country and improved regulations relating to doing business, which he described as "the best in the region". He said that the projected growth rate of over four per cent would make it possible for the government to direct nearly 40% of budget funds to public investment projects.
Begaj said that the construction of a motorway between Pristina and Tirana was expected to be completed by the end of this month and the construction of a motorway towards Skopje would start next year. He also mentioned a plan to build a new 600 MW thermal power plant.
Begaj said he was looking forward to Cacic's visit to Pristina, and both officials said that they were expecting great results from the joint commission for the implementation and promotion of economic cooperation, which is to be established under the signed agreement.
