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EU Signs Trade Pacts with Hungary, Czech Republic
The European Union (EU) signed trade facilitation agreements on Monday with Hungary and the Czech Republic.
The agreements were signed on behalf of the EU by Trade Commissioner Pascal Lamy and Swedish Minister of Trade Leif Pagrotsky. Sweden is the current rotating presidency state of EU.
The agreements, known as Protocols to the European Agreements on Conformity Assessment (PECAs), extend certain benefits of the EU's single market to candidate countries of the EU for the first time.
This is the first step towards establishing the single market in industrial sectors for which Hungary and the Czech Republic have aligned their legislation with that of the EU, said the European Commission, the executive body of the 15-nation bloc.
"These agreements provide a unique opportunity for Hungary and the Czech Republic to benefit from the single market well before accession in all sectors where legislation is aligned. They will remove all barriers to trade and boost trade between the EU and applicant countries. This is a very important step in facilitating trade and preparing for enlargement."
The agreements eliminate additional testing and certification requirements for candidate countries that have implemented EU legislation. They provide reciprocal improvement for market access, and eliminate technical barriers to trade with respect to industrial products.
These agreements cover a trade volume of 18 billion euros (16.2 billion U.S. dollars) with Hungary, and 14 billion euros (12.6 billion dollars) with the Czech Republic. It is estimated that the agreements will create cost-saving opportunities for exporting industries of around 270 million euros (243 million dollars) in the EU and the two candidate countries.
By cutting certain costs and uncertainties concerning exports, trade volume will increase further when the agreements come into force, the European Commission said.
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