EU-Report Accession Bulgaria

Chapter 26: External relations

Since the previous Regular Report, Bulgaria has continued to align with the acquis on common commercial policy and to co-ordinate positions and policies within the World Trade Organisation with the EU, in particular with regard to the Doha Development Agenda negotiations.

As regards the common commercial policy, upon accession Bulgaria will be required to align its tariffs with those of the EC. Bulgaria's applied tariffs currently average 11.6% (MFN) on all products, 23.2% on agricultural products, 11.7% on fishery products and 8.6% on industrial products. By comparison, EC tariffs currently stand at 6.3% on all products, 16.2% on agricultural products, 12.4% on fishery products and 3.6% on industrial products.

With regard to the acquis in the area of dual-use goods, the Bill on amendment of the Law on Control on Foreign Trade in Armaments and Dual-Use Goods and Technologies entered into force in September 2002..The government organised several seminars regarding government industry relationships in the field of dual use export controls.

In the field of export credits, amendments to the Export Insurance Act were adopted in December 2001.

As regards bilateral agreements with third countries, Free Trade Agreements with Israel and Lithuania entered into force in 2002. Bulgaria has concluded negotiations on Free Trade Agreements with Estonia and Latvia. Bulgaria signed a Free Trade Agreement with Croatia and initiated negotiations with the Federal Republic of Yugoslavia (FRY) and FYROM, in line with its commitment under the Stability Pact Memorandum of Understanding on trade liberalisation, according to which a network of bilateral free trade agreements should be concluded between all signatories by December 2002. Bulgaria ratified an agreement on Reciprocal Protection and Investment Promotion with Syria and signed an agreement on Trade and Economic, Scientific and Technical Co-operation with the Russian Federation.

Within CEFTA, Bulgaria signed the Additional Protocol No. 10 relating to the liberalisation of agricultural and food trade, and the Additional Protocol No. 11 relating to the rules of origin of goods. With regard to development policy, co-operation and assistance, humanitarian assistance has been delivered on an ad hoc basis (Afghanistan, FYROM). For the implementation of humanitarian aid initiatives, the authorities cooperate with Non-Governmental Organisations established in Bulgaria.

Overall assessment

The EU and Bulgaria have established a framework for co-operation regarding WTO issues at both ministerial and departmental level. Bulgaria has been supportive of EU policies and positions within the WTO framework in particular also during the preparation for and the launching of the Doha Development Agenda. This close cooperation should continue. Bulgaria is a signatory to the Information Technology Agreement, a member of the WTO plurilateral agreement on trade in Civil Aircraft and an observer to the WTO plurilateral agreement on Government Procurement. Close coordination is needed and should continue to ensure the alignment of Bulgaria's GATS commitments with the EC's commitments and MFN exemptions. With regard to the WTO Agreement on Trade in Textiles and Clothing (ATC), co-ordination has taken place within the third stage of integration under the ATC to align Bulgaria's integration programmes with those of the EC.

With regard to the acquis in the area of dual-use goods, a higher degree of legislative alignment has been achieved with the new bill on amendment of the Law on Control on Foreign Trade in Armaments and Dual-Use Goods and Technologies. Full alignment to the acquis, in particular the general export authorisations, can only take place upon accession. Bulgaria keeps the industry regularly informed of developments in this field and has developed bilateral contacts with the EU Member States to exchange best practices on export control issues.

Where medium and long-term export credits are granted, further efforts are necessary to align with the acquis.

In addition to its bilateral free trade agreements with Croatia, Estonia, Israel, Latvia and Lithuania, Bulgaria is a member of CEFTA. Bulgaria needs to ensure that the Union is kept fully informed both about existing trade agreements and about any negotiations aimed at the conclusion of the new trade agreements with a third country. Prior to accession, Bulgaria will need to renegotiate or renounce all international agreements concluded with third countries that are incompatible with future obligations as an EU Member State. Decisive steps are needed, as a matter of urgency, to bring bilateral investment treaties into conformity with the Treaty obligations. Failure to do so will mean that the conflict between the bilateral investment treaties and Treaty obligations will need to be resolved in the Accession Treaty.

Alignment with and future participation in the common commercial policy is administered by the Ministry of Economy. The administrative infrastructure which needs to be in place with respect to customs services is discussed in the chapter on customs union (Chapter 25 -­ Customs union).

Bulgaria does not yet have a national policy on, or system for, development co-operation. It needs to shape progressively a development policy along EC lines. Humanitarian assistance is administered by the Ministry of Foreign Affairs.

Conclusion

In its 1997 Opinion, the Commission concluded that Bulgaria would be able to meet Community requirements in this field in the medium term.

Since the Opinion, Bulgaria has made gradual progress and has achieved a satisfactory level of alignment with the acquis.

Negotiations on this chapter have been provisionally closed. Bulgaria has not requested any transitional arrangements in this area. It is generally meeting the commitments it has made in the accession negotiations in this field.

Bulgaria should focus further efforts on finishing the process of legislative alignment, and in particular on ensuring that the capacity exists to fully implement and enforce the acquis in this field upon accession, and on taking decisive steps, as a matter of urgency, towards the renegotiation or abrogation of its bilateral investment treaties in full conformity with its EU membership obligations.

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