On July 1, the Republic of Croatia became the twenty-eighth member of the European Union (EU). This is significant for South Africa as it has concluded a trade, development and coope- ration agreement that includes a free trade agreement with the EU.

Croatia applied for EU membership in 2003 and the European Commission recommended making it an official candidate in early 2004. In mid-2004, the European Council granted Croatia candidate-country status. The entry negotiations, which were originally set for March 2005, began in October 2005, together with the screening process. The accession process of Croatia was complicated by the insistence of Slovenia, an EU member State, that the two countries’ border issues be dealt with prior to Croatia’s accession to the EU.

Croatia finalised accession negotiations on June 30, 2011, and signed the treaty of accession to become a member on December 9 of the same year. A referendum on EU accession was held in Croatia on January 22, 2012, with 66% of participants voting in favour of the country joining the union. The ratification process, by the Parliaments of all 27 EU member States, was concluded last month.

But what do you know about Croatia? Its National Day is June 25. The International Monetary Fund classifies Croatia as an emerging and developing economy, while the World Bank identifies it as a high-income economy. It is a member of the World Trade Organisation and the World Customs Organisation.

The services sector dominates Croatia’s economy, followed by the industrial sector and agriculture. Tourism is a significant source of revenue during the summer, with Croatia ranked the eighteenth most popular tourist destination in the world. Since 2000, the Croatian government has invested in infrastructure, especially transport routes and facilities along the Pan-European corridors. Internal sources produce a significant portion of energy in Croatia. Croatia provides a universal healthcare system and free primary and secondary education.
South Africa’s diplomatic representation in Croatia is from Budapest, Hungary, through the Honorary Consul, Branko Miksa of the South African Honorary Consulate. Croatia has an embassy in Pretoria and its third secretary: economic, culture and information is Maja Frankovi´c .

Trade Remedies
On June 28, the International Trade Administration Commission of South Africa informed that, unless a duly substantiated request is made by or on behalf of the Southern African Customs Union (Sacu) industry indicating that the expiry of the trade remedy duty would be likely to lead to the continuation or recurrence of dumping, subsidise exports or injury, the following trade remedy duties will expire:

• antidumping duties imposed on wire rope, classifiable in tariff subheading 7312.10, imported from or originating in China, Germany, Republic of Korea (South Korea) and the UK, which are due to expire on February 12, 2014;
• antidumping duties imposed on gypsum plaster- board, classifi- able in tariff subheading 6809.11, imported from or originating in Indonesia and Thailand, which are due to expire on March 5, 2014;
• antidumping duties imposed on stainless-steel sinks, classifiable in tariff subheading 7324.10, imported from or originating in Malaysia and the People’s Republic of China, which are due to expire on November 5, 2014; and
• the countervailing (antisubsidy) duty imposed on wire ropes, classifiable in tariff subheading 7312.10, imported from India, which is due to expire on February 12, 2014.

Sacu manufacturers who wish to submit a request for the trade remedy duties to be reviewed prior to the expiry thereof should do so by no later than by close of business on July 29.

Cumulative Trade Balance Deficit Grows
On June 28, the South African Revenue Service informed that May recorded a merchandise trade balance deficit of R11.03-billion. The last time South African recorded a monthly trade balance surplus was in December 2011. The cumulative trade balance deficit for 2013 is R68.71- billion, compared with R46.21-billion in 2012.