Commission Report 2002 (Slovakia)

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 26: External relations

Progress since the last Regular Report

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

As regards the common commercial policy, upon accession Slovakia will be required to align its tariffs with those of the EC. Slovakia's applied tariffs currently average 6.1% on all products, 13.2% on agricultural products, 0.1% on fishery products and 4.4% on industrial products. By comparison the 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.

Slovakia has unilaterally applied a suspension of MFN tariffs levied on imports of twelve civil aircraft products. Despite the Commission's strong opposition, this exceptional measure introduced in 2000 and due to end in December 2001, was prolonged until December 2002. The Slovak Republic will need to ensure that this tariff suspension will not be prolonged beyond 2002.

With regard to dual-use goods, a law entered into force in February 2002, which largely aligned the Slovak legislation with the EU acquis in this area, including in terms of lists of goods controlled. Slovakia 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.

As regards bilateral agreements with third countries, Slovakia signed a Free Trade Agreement with the Republic of Croatia in November 2001, which has been provisionally applied since January 2002 pending its ratification.

Within CEFTA, the member countries, including Slovakia, signed the Additional Protocol No. 10 relating to the liberalisation of agricultural and food trade, and the Additional Protocol No. 11 relating to rules of origin of goods.

With regard to development policy, co-operation and assistance, Slovakia is an active member of the OECD and is adapting its development practices to the guidelines laid down by the Development Assistance Committee. The guidelines for granting humanitarian aid are also being reviewed. In 2002 the government has allocated additional funding equivalent to EUR 2 million to bilateral external assistance to developing countries (0.04% of GDP).

Overall assessment

The EU and Slovakia have established a framework for co-operation regarding WTO issues at both ministerial and departmental level. Slovakia has been supportive of EU policies and positions within the WTO framework, in particular during the preparation for and the launching of the Doha Development Agenda. This close co-operation should continue. Slovakia is a member of the Information Technology Agreement. It is an observer to the WTO plurilateral agreements on Government Procurement and Civil Aircraft. With regard to GATS, steps have been defined to ensure smooth alignment on the EC's GATS commitments and MFN exemptions and the close co-ordination in this field should continue. 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 Slovakia's integration programmes with those of the EC.

Slovakia has made substantial progress on dual-use goods legislation, which is now largely in line with the acquis, although some further alignment is necessary. However, full alignment to the acquis, in particular the general export authorisations, can only take place upon accession.

In addition to its bilateral free trade agreements with Croatia, Estonia, Latvia, Lithuania, Turkey, Israel and EFTA, Slovakia is a member of CEFTA. Slovakia 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, Slovakia will need to renegotiate or renounce all international agreements concluded with third countries that are incompatible with its future obligations as an EU Member State. Decisive steps are needed, as a matter of urgency, to bring bilateral investment treaties in 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.

Slovakia's 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). The Ministry of Foreign Affairs co-ordinates development policy, while the Ministry of Interior is responsible for humanitarian aid. There is further need to improve the co-ordination of assistance provided by both ministries in this area, and to strengthen the institutional capacity of the Foreign Ministry as well as co-operation with the nongovernmental sector.

Conclusion

In its 1997 Opinion, the Commission concluded that Slovakia was well placed to meet Community requirements in this field within the next few years.

Since that time, Slovakia has made good progress and has achieved a generally high level of alignment with the acquis, in particular in the area of export credits and administrative structures are in place.

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

In order to complete preparations for membership, Slovakia's efforts now need to focus on finishing the process of legislative alignment, 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, on terminating its exceptional suspension of MFN tariffs on certain civil aircraft products by December 2002 at the latest, as well as on ensuring that he capacity exists to fully implement and enforce the EC acquis in this field upon accession.

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