EU-Report Accession Bulgaria

Recent developments under the Europe Agreement, including bilateral trade

Bulgaria has continued to implement the Europe Agreement and has contributed to the smooth functioning of the various joint institutions.

The Association Council met in November 2001. An Association Committee meeting was held in July 2002. The system of sub-committees continues to function as a forum for technical discussions.

The Joint Parliamentary Committee comprising representatives of the Bulgarian and European Parliaments met in June 2002. The Joint Consultative Committee with the Economic and Social Committee met in April 2002. In July 2002, an Association Council adopted a Decision to create a Joint Consultative Committee between representatives of Bulgaria and of the Committee of the Regions.

The share of the European Community in Bulgaria's foreign trade has continued to increase. Turnover in trade with the EC in 2001 was 19.4% up on 2000 and accounted for 51.6% of Bulgaria's overall trade. In 2001, exports to the EC were 13 % up on 2000, accounting for 54.8% (EUR 3.4 billion) of Bulgaria's total export sales. Its main industrial exports to the EC were metals (copper and iron) and textiles (clothing). Bulgaria's main agricultural exports to the EC were wine, meat, sunflower seeds and tobacco. In 2001, imports from the EC were up by 24.9% on 2000, accounting for 49.4% (EUR 3.8 billion) of Bulgaria's total imports. Its main industrial imports were vehicles and pharmaceuticals. Its main agricultural imports were food products, animal feed, alcohol and spirits.

Under the agreement resulting from the first round of trade negotiations in the agriculture sector (adopted on an autonomous basis, pending the conclusion of an Additional Protocol to the Europe Agreement), approximately 58% of EC agricultural imports from Bulgaria and 82% of EC agricultural exports to Bulgaria are duty-free or benefit from preferential rates (average trade figures 1998-2000).

Negotiations on a further round of liberalisation, covering more sensitive sectors where trade is currently rather low, in particular on account of high border protection rates, began at the end of 2001.

For processed agricultural products, additional mutual trade concessions have been negotiated and an agreement reached during the first half of 2002. The agreement adopted by the Association Council entered into force in September 2002. This agreement covers additional trade concessions regarding import duties and quotas.

Negotiations regarding a free trade agreement on fish and fishery products are near completion.

With regard to rules of origin, Bulgaria participates in the pan-European zone for cumulation of origin and introduced and applied the modifications and annexes to the multilaterally agreed rules of origin for preferential trade partners (European Union, EFTA, CEFTA and Turkey) as of 1 January 2002.

An anti-dumping complaint relating to imports of urea was lodged in October 2000 against Bulgaria (among other countries). The investigation was concluded and definitive duties reapplied as of January 2002. Definitive anti-dumping duties were imposed in May 2002 on imports of hot rolled coils. Bulgaria has initiated a safeguard investigation against the EC on imports of urea.

In March 2002, in response to protectionist measures taken by the US, which greatly restricted access to their market and created the risk of considerable trade diversion, the EU initiated provisional safeguard measures, with erga omnes effect, on imports of certain steel products. The measures were partly confirmed in September 2002.

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