ECONOMIC TRENDS IN THE REGION OF SOUTHEAST EUROPE AND THE SPECIFICITY OF THE CEFTA AGREEMENT

Abstract

<p><span style="font-size: 12.0pt; line-height: 107%; font-family: 'Times New Roman',serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">Economic collaboration among Southeast European countries and the establishment of free trade with the European Union are seen as potential drivers for regional development. However, given the region's intricate political landscape and historical challenges, achieving these objectives faces hurdles stemming from political and historical complexities. In an effort to fortify regional ties, the European Union has provided support through mechanisms such as Bilateral Free Trade Agreements, Generalized Trade Preferences, and the Central European Free Trade Agreement (CEFTA) of 2006. Since the inception of the CEFTA agreement in 2006, the Free Trade Agreement has emerged as a pivotal catalyst in enhancing international trade in Southeastern Europe. It has played a crucial role in fostering economic integration, streamlining trade processes, boosting regional trade volumes, and establishing a cohesive economic zone that appeals to foreign direct investors and facilitates the mobility of professional service providers. Over the past fifteen years, intra-regional trade has experienced significant growth, accompanied by a rising proportion of trade occurring within the region. The liberalization of trade within CEFTA has not only stimulated market competition but has also spurred integration across various sectors and industries in the region. Furthermore, it has acted as a catalyst for foreign direct investment, both from external sources and within the region itself.</span></p>