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How Croatian Companies Can Leverage EU Trade Agreements

Mirjana Čagalj, savjetnica predsjednika HGK-a za graditeljstvo i promet
Mirjana Čagalj, savjetnica predsjednika HGK-a za graditeljstvo i promet / Image by: foto HGK

Croatian exporters who utilize the potentials and benefits of the European Union’s trade agreements, of which there are a total of 42 with as many as 73 countries worldwide, are exploiting 91 percent of these potentials, which is above the EU average. This data, as stated today during Market Access Day, an event in Zagreb organized by the European Commission, the Ministry of Foreign and European Affairs, and the Croatian Chamber of Commerce, indicates that Croatia is making good use of all the benefits of these agreements, as well as that public authorities are doing a good job of informing Croatian entrepreneurs about all the advantages of these agreements.

In addition, last year, exporting companies from Croatia saved a total of 200 million euros in customs tariffs thanks to these agreements, making them more competitive in the market, but also more influential.

Without Export, There Is No Growth

However, during the Market Access Day, it was also emphasized that Croatian exports to countries outside the EU are still limited, accounting for only 30 percent of total Croatian exports.

Nevertheless, as stated by HGK, Croatia’s trade exchange with the world is constantly growing, amounting to 65.6 billion euros last year, which is a 38 percent increase. Markets in third countries are an important space not only for strengthening export activities but also as a useful pool of raw materials and goods important for production, they added from HGK.

– We know that without export there is no growth, so we need to jointly encourage Croatian companies to engage in export activities, and we are doing this with this practical seminar, which will provide insights into better access to information and business opportunities with some markets outside the European Union – said Mirjana Čagalj, advisor to the president of HGK for construction and transport.

– The EU’s trade policy aims to remove trade barriers for European companies in foreign markets. It is important to know that access to certain markets is extremely complicated. Therefore, the exchange of information is crucial. Decisive and coordinated action towards third countries helps European companies maintain growth and diversify export markets – emphasized Denis Redonnet, Deputy Director-General and Chief Trade Compliance Officer of the European Commission.

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Denis Redonnet, Deputy Director-General and Chief Trade Compliance Officer of the European Commission

photo HGK

Raising Awareness

The European Commission aims to assist European companies, especially small and medium-sized enterprises, in exporting outside the EU through the Access2Markets platform. Many companies are not even aware of the availability of trade agreements, especially small businesses, so the EC seeks to educate institutions such as HGK in Croatia, which in turn educates its members.

In this way, they can help companies start exporting to markets such as Japan. In addition to the platform, the EU has SME centers for small and medium-sized enterprises in third countries like Japan and China, which also help them market their products in those markets.

Through the free platform, companies can also report trade barriers or non-compliance of third countries with sustainability rules.

The annual report on the functioning and impact of trade agreements on EU economies will be released in September this year.

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