The Central European Free Trade Agreement (CEFTA) is a trade agreement between Romania, Bulgaria, Croatia and the Republic of Macedonia. Former members are Poland, the Czech Republic, Slovakia, Hungary and Slovenia.
CEFTA was established by Poland, Hungary and Czechoslovakia on 21 December, 1992 in Kraków, Poland. Slovenia joined CEFTA in 1996, Romania in 1997, Bulgaria in 1998, Croatia in 2002 and the Republic of Macedonia in 2006.
Through CEFTA, participating countries hoped to mobilize efforts to integrate Western European institutions and through this, to join European political, economic, security and legal systems, thereby consolidating democracy and free-market economics.
All the participating countries had previously signed association agreements with the EU, so in fact CEFTA serves as a preparation for full European Union membership, and all CEFTA countries have applied to join the EU (Poland, the Czech Republic, Hungary, Slovakia, Slovenia have joined the EU on May 1, 2004, Bulgaria and Romania are scheduled to do so on January 1, 2007, Croatia does not yet have a date specified but is in the process of accession negotiations). At the EU's recommendation, the future members prepared for membership by establishing free trade areas. A large proportion of CEFTA foreign trade is with EU countries.
In the same period when CEFTA was built the newly independent states in the Baltic created a similar Baltic Free Trade Area (BAFTA). It ceased to exist when its members (Estonia, Lithuania and Latvia) joined the EU on May 1, 2004.
Members
- Current members:
- Romania (1997)
- Bulgaria (1998)
- Croatia (2002)
- Republic of Macedonia (2006)
- Former members
- Poland (1992–2004; joined the EU)
- Hungary (1992–2004; joined the EU)
- Czech Republic (1992*–2004; joined the EU)
- Slovakia (1992*–2004; joined the EU)
- Slovenia (1996–2004; joined the EU)
- * as part of former Czechoslovakia
Current status
Most of the CEFTA members (the exceptions are Bulgaria, Romania, Croatia and Macedonia) have joined the EU and thus left CEFTA. Bulgaria and Romania are to do the same in 2007. CEFTA may be preserved (or replaced by similar pact) by extending it to cover the rest of the Balkans states, that already have completed a matrix of bilateral free trade agreements (FTAs).
Membership criteria
Former Poznan Declaration criteria:
- World Trade Organisation membership
- European Union Association Agreement with provisions for future full membership
- Free Trade Agreements with the current CEFTA member states
Current criteria since Zagreb meeting in 2005:
- WTO membership or commitment to respect all WTO regulations
- any European Union Association Agreement
- Free Trade Agreements with the current CEFTA member states
The criteria were lowered, so that Bosnia and Herzegovina, Serbia and Montenegro and Moldova could join CEFTA sooner.
See also
- Economy of Europe
- Stability Pact for South Eastern Europe (including a matrix of bilateral FTAs)
- European Free Trade Association (EFTA)