Stabilization and Association Process in the Banlkans : Integration Options and their Assessment

The stabilization and association process launched by the European Union in the aftermath of the Kosovo war in 1999 has created a new policy environment for five South East European countries (SEE-5). In exchange for EU assistance, the prospect of...

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Main Authors: Kaminski, Bartlomiej, de la Rocha, Manuel
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2003/08/2494637/stabilization-association-process-banlkans-integration-options-assessment
http://hdl.handle.net/10986/18140
id okr-10986-18140
recordtype oai_dc
spelling okr-10986-181402021-04-23T14:03:41Z Stabilization and Association Process in the Banlkans : Integration Options and their Assessment Kaminski, Bartlomiej de la Rocha, Manuel COMPETITIVE MARKETS EXPORTS IMPORTS SEE-5 TRADE LIBERALIZATION The stabilization and association process launched by the European Union in the aftermath of the Kosovo war in 1999 has created a new policy environment for five South East European countries (SEE-5). In exchange for EU assistance, the prospect of EU accession, and the continuation of preferential access to EU markets, SEE-5 governments have to upgrade their institutions and governance by European standards and engage in mutual regional cooperation, including stability pact member-countries. The authors examine the benefits to SEE-5 of trade liberalization along two dimensions and suggest conditions under which these could be maximized. They argue that the process of regional trade liberalization should be extended to multilateral liberalization, aligning SEE-5 most-favored-nation (MFN) applied tariffs on industrial products with EU MFN tariffs, and that priority be given to structural reforms and regional cooperation aimed at trade facilitation. As inter-industry trade rather than intra-industry trade dominates intra-SEE-5 trade, the potential for expansion in intra-SEE-5 trade is limited at least within the confines of the existing production structures and transportation infrastructure. Therefore SEE-5 free trade agreements are unlikely to contribute to economic growth without concurrent efforts to improve infrastructure, trade facilitation, business, and investment climate, as well as to increase competition from MFN imports to external preferential suppliers through multilateral liberalization. 2014-05-01T21:23:42Z 2014-05-01T21:23:42Z 2003-08 http://documents.worldbank.org/curated/en/2003/08/2494637/stabilization-association-process-banlkans-integration-options-assessment http://hdl.handle.net/10986/18140 English en_US Policy Research Working Paper;No. 3108 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Eastern Europe
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic COMPETITIVE MARKETS
EXPORTS
IMPORTS
SEE-5
TRADE LIBERALIZATION
spellingShingle COMPETITIVE MARKETS
EXPORTS
IMPORTS
SEE-5
TRADE LIBERALIZATION
Kaminski, Bartlomiej
de la Rocha, Manuel
Stabilization and Association Process in the Banlkans : Integration Options and their Assessment
geographic_facet Europe and Central Asia
Eastern Europe
relation Policy Research Working Paper;No. 3108
description The stabilization and association process launched by the European Union in the aftermath of the Kosovo war in 1999 has created a new policy environment for five South East European countries (SEE-5). In exchange for EU assistance, the prospect of EU accession, and the continuation of preferential access to EU markets, SEE-5 governments have to upgrade their institutions and governance by European standards and engage in mutual regional cooperation, including stability pact member-countries. The authors examine the benefits to SEE-5 of trade liberalization along two dimensions and suggest conditions under which these could be maximized. They argue that the process of regional trade liberalization should be extended to multilateral liberalization, aligning SEE-5 most-favored-nation (MFN) applied tariffs on industrial products with EU MFN tariffs, and that priority be given to structural reforms and regional cooperation aimed at trade facilitation. As inter-industry trade rather than intra-industry trade dominates intra-SEE-5 trade, the potential for expansion in intra-SEE-5 trade is limited at least within the confines of the existing production structures and transportation infrastructure. Therefore SEE-5 free trade agreements are unlikely to contribute to economic growth without concurrent efforts to improve infrastructure, trade facilitation, business, and investment climate, as well as to increase competition from MFN imports to external preferential suppliers through multilateral liberalization.
format Publications & Research :: Policy Research Working Paper
author Kaminski, Bartlomiej
de la Rocha, Manuel
author_facet Kaminski, Bartlomiej
de la Rocha, Manuel
author_sort Kaminski, Bartlomiej
title Stabilization and Association Process in the Banlkans : Integration Options and their Assessment
title_short Stabilization and Association Process in the Banlkans : Integration Options and their Assessment
title_full Stabilization and Association Process in the Banlkans : Integration Options and their Assessment
title_fullStr Stabilization and Association Process in the Banlkans : Integration Options and their Assessment
title_full_unstemmed Stabilization and Association Process in the Banlkans : Integration Options and their Assessment
title_sort stabilization and association process in the banlkans : integration options and their assessment
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2003/08/2494637/stabilization-association-process-banlkans-integration-options-assessment
http://hdl.handle.net/10986/18140
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