India-Croatia Business Opportunities
November 13, 2002, New Delhi

Address of the President of the Republic of Croatia, H E Mr Stjepan Mesi

Ladies and gentlemen,
Distinguished company representatives,

It gives me great pleasure to address today the participants of the Indian-Croatian Economic Forum. By taking part in this distinguished gathering I would like to make my own contribution to the promotion of economic ties between India and Croatia.

Our two countries are faced with the varied challenges posed by the accelerated development of our national economies. Basically, we have a common goal: to develop our national economies as quickly as possible, and to promote the welfare of our peoples. The Republic of India has become an important and unavoidable factor of balance and stability within the globalized economy of the modern world, especially in Asian economy. We have followed India's development and its impressive achievements in modern industry and computer science, and its supreme scientific advances. But we have also noted that it has nevertheless - in conditions of globalization and accelerated economic growth - succeeded in retaining the fundamental spiritual and cultural values of its civilization and tradition.

With its own responsible economic policy India has contributed to the economic stability of other Asian countries. Together with China, India is achieving very high rates of economic growth and it is also successful in developing an efficient market economy.

In European terms, the rate of economic growth of the Indian economy is very high - about 6 percent as compared with about 2 percent anticipated in the European Union. Croatia plans to pursue an active macroeconomic and development policy in order to increase the rate of growth of its gross domestic product to about 4 percent a year. I personally support the implementation of the Croatian model of economic growth based on higher exports. The main component of the growth of Croatian economy should be the expansion of exports of goods, but also of services.

Ladies and gentlemen,

The trade between India and Croatia falls considerably short of the potentials of our economies. In 2001 our trade totalled only 45 million US dollars although we have concluded the necessary bilateral agreements providing the legal framework for cooperation. Along with the already signed agreements - on trade and economic cooperation; on the promotion and mutual protection of investments; on sea and air traffic; on cooperation in culture, education, science, technology and sports - we also ought to finally conclude the agreement of the avoidance of double taxation. During our visit to India we have concluded the Agreement on Cooperation in Agriculture.

The possibilities for enhancing the economic cooperation of India and Croatia are indeed great. Croatia is a member of the World Trade Organization; it will soon become a full member of CEFTA, the Central and Eastern Europe Free Trade Association; we have already signed about thirty bilateral agreements on trade liberalization. Croatia has concluded the Stabilization and Association Agreement with the European Union, and enjoys trade facilities for its exports to European Union countries.

As concluded during past meetings of the representatives of our administrations, cooperation is possible in the chemical and petrochemical industries, shipbuilding, agriculture and food production, the pharmaceutical industry, computer technology, the iron and steel and engineering industries, the oil industry, and oil and gas exploration. The development of major infrastructural projects, particularly in the power sector, also appears to attract interest. Because of its very favourable geographical position and developed transport infrastructure, Croatia can offer India the services of the Zagreb Airport and the Rijeka seaport, as well as Croatian free trade zones to be used as distribution and manufacturing centres for the European market, the markets of the European Union and CEFTA countries. New facilities and incentives for foreign investors in Croatian free trade zones are being planned. Croatia's comparative advantages over other European countries include the potential of its seaports and their rail and road links with Central and Eastern Europe. In brief, there are many areas of possible mutually beneficial cooperation in the coming period.

I view this meeting of businessmen as an opportunity for a close identification of areas of common business interest.

As shown by data on our trade, Croatian business partners should enhance their export efforts. The Croatian export bank (HBOR) has concluded an agreement on cooperation with India's Export Agency. That could mark the start of cooperation between our national export agencies; first, through the determination of the export risk `insurance limit' and, subsequently, through the definition of export financing conditions. In the regional and global context, we could appear jointly in third markets.

Better economic conditions are for the most part created by cooperation of business partners in concrete ventures and concrete commercial projects.

It is the task of us, the politicians, to remove the political obstacles affecting economic cooperation, and to agree the legal framework for such cooperation. I am pleased to see that we have noted, in our bilateral political talks, that there are no such obstacles.

We must change, in our common interest, the current situation of a relatively poorer economic cooperation as compared with our very good political relations.

Assuming the promotion of measures for intensifying mutual economic relations, the trade between our two countries could be more substantial and more balanced, and involve an expanded range of goods.

We also ought to promote mutual exchanges of information, establish better cooperation in banking, and engage in other stimulative measures.

This meeting of businessmen is also an opportunity to define the areas and forms of concrete cooperation between companies.

I am convinced, therefore, that today's meeting of our businessmen will benefit our cooperation.

I wish you, ladies and gentlemen, every success in your endeavours!

Thank you!