New Regional Agreement to Develop Trade in South Eastern Europe

On 19 December, Prime Ministers of South Eastern European countries and territories will sign a new Central European Free Trade Agreement (CEFTA). This event will mark the conclusion of ambitious negotiations launched on 6 April this year. The new CEFTA will consolidate 32 bilateral free trade agreements in the Southern European Region into a single Regional Trade Agreement. The European Union strongly supports these negotiations. Although the EU will not be a party to this new Agreement, the European Commission has provided continuous political, technical and financial support, at every stage of the trade liberalisation process in South Eastern Europe.

The EU is by far the region's biggest trading partner and a key source of foreign direct investment. The process of strengthening trading links between the economies of South Eastern Europe is an important part of the EU's wider strategy of growth and stability in the region. The experience of trade liberalisation in South Eastern Europe is an important precursor to the economic cooperation that is an inherent part of Membership of the European Union.

South East European countries have benefited from freer trade - with the EU and with each other

The EU is by far the most important trading partner for the South Eastern Europe countries[1]. In 2005, total trade between the EU and the SEE amounted to € 79 billion, up 53% compared to 2001. All countries experienced an increase in trade with the EU during that period. The largest increases were recorded by Romania (+67%) and Bulgaria (+52%), highlighting the important process of trade and economic integration following from the EU accession process.

The EU has offered free access to the EU market for the countries of the Western Balkans since 2001 - in that time, exports from these countries to the EU have grown by more than a third.

For details, please see MEMO/06/490

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• Opening speech at 10th meeting of South East Europe Cooperation Process by EU Commission President Barroso (11/5/2007)
• "EU Western Balkans relations" - Speech by EU Commissioner Rehn (13/2/2007)
• "Enlargement - the EU keeps its doors open for South Eastern Europe" - Speech by EU Commissioner Rehn  (17/1/2007)
• EU External Relations Council Conclusions (11/12/2006)
• EU Enlargement: Questions & answers on strategy and integration capacity (8/11/2006)
• "Europe's Next Frontiers" - Speech by EU Commissioner Rehn (10/10/2006)