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Date :: Friday, July 04, 2008
Current location :: European Integrations

European integration process and Serbian Chamber of Commerce

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In order to obtain EU membership Serbia needs s to fulfill three sets of criteria, known as Copenhagen criteria:

–     Political: stability of institutions, guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities

–     Economic: existence of a functioning market economy and capacity to cope with competitive pressure and market forces within the Union

–     Acceptance of Community acquis: ability to take on the obligations of membership, including adherence to the aims  of political, economic and monetary union

This is not cheap and easy task for Serbian government and economy. That’s why it is done within multilevel process specially designed for Western Balkan States. The key instrument for managing this process is European Partnership. This is a document in which the major priorities are set and divided in two categories: short-term (1-2 years) and mid-term (3-4 years) for further integration of WB countries in the EU. Original version of the document (in English) along with digest version (in Serbian) are available on the SCC web site (http://ino.komora.net/eu/Ufokusu/tabid/2180/Default.aspx).

Why is this document important for business subjects in Serbia?

It provides directions of changes in Serbian business and general environment. This how, companies know what to expect in short-term and mid-term. Business subjects therefore have the chance to implement these changes in their strategies and plans and/or take active part in the process through representative organizations (such is SCC) according to their interests.

First step in European integration process is getting Stabilization and Association Agreement. The agreement’s most important part is setting free trade area among European Union and WB States (such is Serbia). In case of Serbia, this agreement is negotiated and it should be signed as soon as Council of Ministers acknowledge that conditions for signing are fulfilled (currently, the cooperation with ICTY is only issue on the way). After it’s signed 6 years period for the full implementation of the free trade area starts. In this respect, all industrial products are divided into 4 groups: A, B, C and rest. Customs on products in A, B, C, groups are to be abolished in 2, 3 and 5 years respectively. Every agriculture product (or products group) has its own dynamic of customs liberalization. In some cases at end of period, customs are not abolished.

EU is obliged by the agreement to allow duty-free import of products originated from Serbia immediately.

What does SAA bring?

•      Most important effect – asymmetric free trade zone

•      Political dialog with EU

•      Harmonization of legislation with Aquis Communautaire

•      Increased EU assistance in transition process

•      Institutional relations with EU- contractual relations between Serbia and EU

•      Strengthening Serbia's position toward EU, other countries and institutions in general 

What are the costs and benefits?

 

 

Benefits

Costs

Direct

–      Free excess to EU market (450 million of consumers)
–     Increase of investments, employment, export

–     Price stability
–     Faster modernization and restructuring of domestic companies
–     Knowledge  and technology transfer –     Increase of foreign investments
–     Access to new EU funds

Indirect

–     Increase of import from EU
–     Higher competition- more difficult conditions for domestic companies
–     Decease of custom incomes
–     Increase of unemployment and decrease  of salaries 

–     institutional reforms and legal harmonization
–     restructuring and liquidation of companies
–     standards harmonization
–     Financing of social programmers 

What are following steps towards the EU membership?

•      Membership candidature

•      Membership negotiations

•      Membership  in the EU

What is the roll of Serbian Chamber of Commerce in this process?

•      Chamber experts participate in Working groups formed by the Government of Serbia for negotiations with the EU.

•      Educating, informing and providing specific services to the entrepreneurs and companies, related to the EU integration process.

Particularly in following areas: trade regime (industrial and agricultural products and goods), establishing enterprises, conditions, movement of capital, paying, goods and services, movement of labor, competition, intellectual and industrial property, public procurement, standardization and the level of harmonization, consumer protection, educating and instructing the entrepreneurs for participation in tenders on the EU market.

The leading goals of these activities are preparing Serbian companies for competition in both European and domestic markets:

  • by informing and educating about EU legislation and its effects not only on European but on Serbian market as well through the process of harmonization;
  • by organizing forums for best practices and experience sharing;
  • by collecting data about the main obstacles for our companies (customs regulation, technical standards, issuing certificates, bureaucratic procedures, consumer protection, quality protection, etc.)

What is the roll of Bureau for cooperation with the EU?

Bureau for cooperation with the EU is organizational unit within SCC with following activities:

•      Participation in the implementation of economic reform in the Republic of Serbia on the basis of recommendations contained in the Feasibility Study and European Partnership;

•      Advising and informing on EU standards and acquis;

•      Assistance to Chamber members in finding partners for participation in the programs financed by EU,

•      Providing understanding of objectives of trade liberalization, market economy principles and problems of local enterprises competitiveness

•      Participation in the work on harmonization of Serbian legislation in the field of economy with EU acquis;

•      Participation in the work on EU standards introduction in Serbia

Organization and implementation of training programs for personnel involved in cooperation with EU and coordination of other activities relevant for economic cooperation with EU.  

    

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