P R O T O C O L. of the Sixth Session of the Joint Committee on Economic Cooperation between the Republic of Serbia and the Czech Republic

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1 P R O T O C O L of the Sixth Session of the Joint Committee on Economic Cooperation between the Republic of Serbia and the Czech Republic Belgrade from 11 th to 12 th December, 2012 The sixth meeting of the Joint Committee on Economic Cooperation between the Republic of Serbia and the Czech Republic (hereinafter: the "Committee") was held from 11 th to 12 th December, 2012 in Belgrade. The meeting of the Committee was held in accordance with Article Nr. 4 of the bilateral Agreement on Economic Cooperation, signed in Prague on 20 th July, The delegation of the Republic of Serbia was led by His Excellency Mr. Stevan Nikčević, State Secretary of Foreign and Internal Trade and Telecommunications. The delegation of the Czech Republic was led by His Excellency Mr. Milan Hovorka, Deputy Minister of Industry and Trade. The meeting was held in Plenary Session and five Working Groups. Lists of delegations are attached in Annexes 1 and 2 of this Protocol. The meetings were held in a cordial and friendly atmosphere reflecting the desire to find practical, feasible and effective ways and means that would expand cooperation in line with potentials of their respective countries. During the Session both Delegations emphasized that further strengthening of the bilateral cooperation is a joint objective of Serbian and Czech Government. The Heads of Delegation pointed out the necessity of further enhancing of economic ties and promotion of investments and trade through more intensive bilateral dialogue on economic issues of regional and global importance, especially within the EU context. During the meeting the following questions were discussed: I. Overview of the economic situation in both countries; II. Bilateral economic cooperation; III. Cooperation in areas of mutual interest, including suggestions for its enhancements: 1) Trade, Regional Development and Development of Small and Medium Enterprises (SMEs) 2) Energy and Environmental Protection 3) Transportation 4) Agriculture 5) Finance and Development Cooperation.

2 IV. Organizational issues It is the recommendation of the Committee that the Working Group meetings were also held in the period between the meetings of the Committee, according to specific needs, or to resolve individual issues or projects of mutual cooperation, based on the requirements and drafts prepared in the meantime. During the meetings following conclusions and recommendations were adopted: I. Overview of the economic situation in both countries; The parties presented the economic and trade situation, exchanged latest information about the current situation and gave macroeconomic forecast for upcoming period in their respective countries. Delegations agreed that potential for further successful development of mutual economic cooperation should be efficiently exploited in the future. II. Bilateral economic cooperation; Bilateral relations were mutually evaluated as very good, their positive development is the result of the current political and economic dialogue and fulfillment of agreements signed. The Heads of Delegations agreed that three main pillars of economic cooperation between Serbian and Czech side are trade, investments and development cooperation. The Heads jointly noted that the sectors of trade, energy and transport infrastructure are the most prospective ones for Czech investments and supplies to the Republic of Serbia. They also agreed that bilateral flow of direct investments is one of the main factors establishing good prospects in development of economic relations in the future; a particular attention must be paid to the major investments of the other party, especially when interests of the other party are directly involved and affected by the action of the host side. Czech side indentified Serbia in its Export Strategy as one of the top 12 countries for investments. Concrete cooperation relates both to bilateral projects and activities designed to promote the integration of Serbia into the EU and WTO, and mutual support in regional organizations and associations in order to strengthen the position of the two countries and integration processes in Europe. The Czech Republic continues in its support to the Republic of Serbia concerning Serbian effort to achieve faster access to the EU. The Czech Republic greets the granting of the Candidate Status given to the Government of the Republic of Serbia previously in March this year which is essential for the achieving the date of the opening of the accession talks, which hopefully to be decided by the end of this year. Both sides said that the current contractual arrangement is on the high level. This should lead to the faster development in the conclusion of bilateral agreements in the areas, which have not been contractually regulated yet or in which the current agreements should be changed or substituted by new ones if they don t meet the needs and level of current and future cooperation. 2

3 Both Parties expressed their interest to extend previous fruitful cooperation from 2009 and 2010 in the field of standardization, metrology and conformity assessment procedures based on European and international principles, regulations and standards; providing information on standards and technical regulations adopted in the Republic of Serbia and European Union s legislation introduced in the Czech Republic. III. Cooperation in areas of mutual interest: 1) Trade, Regional Development and Development of SMEs Both Parties exchanged information on results of foreign trade in 2011 and latest statistical data for 2012 and discussed possibilities of ways how to increase the trade turnover. According to the data of the Serbian side (Statistical Office of the Republic of Serbia) overall trade exchange between our two countries amounted to 419,9 mil.eur (increase of 78,8 mil EUR) in Statistical data of mutual trade exchange pointed out that the mutual trade exchange in 2011 exceeded the record values of The Czech import from Serbia reached the highest amounts in the history in the first half of In the last year Serbian export to the Czech Republic amounted to 112,7 mil.eur (increase of 10,4%), while Serbian import from the Czech Republic amounted to 307,2 mil.eur (increase of 28,5%). From January to September 2012, the mutual turnover amounted to 324 mil.eur (increase of 5,4% compared with the same period of 2011), of which Serbian export amounted to 93,1 mil.eur (increase of 12,7% compared with the same period of 2011) and imports from the Czech Republic 220,9 mil.eur (increase of 2,9%). According to the data of the Czech side (Czech Statistical Office) bilateral trade exchange amounted 584 mil. EUR in 2011 (yearly increasing by 51%). Czech export to Serbia amounted 390 mil.eur, while Serbian export to the Czech Republic amounted 194 ml.eur. From January to September 2012 mutual turnover amounted 420 mil.eur, of which Czech export to Serbia amounted 288 mil.eur and Serbian export to the Czech Republic 132 mil.eur. Both sides expressed interest in the continuation of cooperation in the fields of retail, SME, consumer protection and market surveillance. In 2012 Project Support of Trade Development in Serbia has been implemented in co-operation between the Czech Chamber of Commerce and the Chamber of Commerce and Industry of Serbia. Project contained study visit to Prague and seminar Support for SMEs in Serbia - Implementation of International Projects, Internalization in Belgrade and Leskovac. Aid for Trade projects are financed from Czech Official Development Assistance funds and are implemented under supervision of the Ministry of Industry and Trade of the Czech Republic. Serbian side expressed its interest in the exchange of knowledge and experience in the area of tourism, with special reference to transfer of Czech experience in using EU funds, as well as for improving the quality of existing tourism supply and introducing new concepts, such as City break and rural tourism. 3

4 Serbian side stated interest in concluding the Memo of understanding in tourism and establishing cooperation in tourism thematic routs as well as intensifying the tourism promotion of Serbia on the Czech tourism market. Both sides expressed interest in the exchange of experience in the area of regional development, with particular emphasis on institutional, strategic and financial framework, with special reference to transfer of experience of the Czech Republic in using EU structural and cohesion funds. Serbian side, emphasizing the priority areas for investment set out in Serbian Strategic Document on Industrial Policy by the year 2020 resulting from the signed FTA s, proposed higher forms of cooperation through joint investment projects on third markets especially in the field of agricultural mechanization, production of automotive parts, tools, textile industry and other industrial sectors. Serbian side, acknowledging the recommendations from previous session, identified the priority for cooperation and exchange of information in the field of SME: tools and programs for supporting small and medium-sized enterprises. The Czech side informed on recent development in governmental support of SMEs, especially on programs facilitating access of SMEs to finance: the Guarantee program and the INOSTART program of guarantees for loans provided to start-up innovative SMEs as an important part of the Program of cooperation between the Czech Republic and Switzerland. It also informed on the preparation of launching Seed/Venture Capital Fund, whose objective is to develop venture capital market aimed at providing capital to start-up enterprises with a potential to become competitive in foreign markets. Both Parties, while considering very important role of SMEs in the economic development of each country agreed to make all efforts aiming at the further improvement of co-operation in this field, particularly through the exchange of experiences and of best practice in the implementation of EU-funded projects, technology transfer, innovation and entrepreneurial education. 2) Energy and Environmental Protection Both sides confirmed strong interest in the continuation and deepening of cooperation in this area. Referring to the further developing of existing cooperation in the energy sector, Serbian State Enterprise Transnafta, stated its interest for providing consulting services in the area of storing and transport of oil, as well as surveillance services for construction of oil pipeline and related infrastructure, if such interest is shown from Czech side. Serbian State Enterprise Transnafta expressed interest for establishing contacts with Czech companies in the area of pipe production, and/or institutions interested to invest in development projects, especially in construction of oil pipeline through Serbia and revitalization and construction of storage tanks for crude oil and oil derivates. Both sides agreed to boost cooperation of Ministries and Authorities liable for the area of mining strategies - raw material policy, industrial materials and mining regulation. They will support collaboration between national organizations working in the field of geological 4

5 survey, particularly exchange of information on geological IT systems, digitalization of geological archive documents (maps, reports), registration and protection of mineral deposits and elimination of geological and environmental risks (landslides and mining waste reclamation). The Serbian side supports joint activities to implement investment programs that create conditions for continuation and capacity development of mining in the coal mines. Both sides confirmed the high priority for the project of Rehabilitation of Mines JPPEU Resavica, which will be implemented after complete preparation of technical documentation and providing guarantee in the budget of the Republic of Serbia. The Czech side has expressed a high interest in cooperation in the sector of the small hydropower stations. A number of projects is in the preparatory phase, namely with participation of Czech companies. It is proposed that such projects should receive a priority status. The Czech side considers the present situation of the investment of Czech company Atol Development in the company Toplifikacija Moravia Zaječar to be higly problematic and asks the Serbian side to protect this second largest Czech investment in Serbia, where the Czech company already invested EUR 4.1 million and is about to invest another EUR 5 million in order to complete its investment. Both sides agreed to support promotion of activities of Serbian and Czech companies doing business in the field of energy and raw materials. Area of Environmental protection continues to have priority status and importance within the program of International Development Cooperation of the Czech Republic. The Czech side has expressed its conviction, that the join project of sewage system and waste water plant in Kruščica will be finished in agreed scope that means also in the part not financed from the Czech Development Cooperation. The Serbian side, Ministry of Energy, Development and Environmental Protection, expressed interest in project cooperation with Czech partners in the area of waste management and strengthening the capacity of civil servants within Ministry. Both relevant ministries signed a two-year cooperation program ( ) in the area of environmental protection. Both sides agreed to continue these activities. 3) Transport Both Delegations agreed that the most important current project is the reconstruction of the Railway Corridor X in the Nis Dimitrovgrad railway line by Czech consortium Inekon Enixus. Both sides agreed that negotiations regarding Loan Agreement for the Project: Reconstructon and modernization of the railway line Nis Dimitrovgrad should be intensified. CEB intends to submit to the Serbian side innovated financial offer for the Loan Agreement next week. 5

6 Czech side emphasized that the first phase of the Project: Reconstruction and modernization of the railway line Nis Dimitrovgrad, should be civil reconstruction and modernization of the section Cele Kula Stanicenje and preparation of all necessary documentation by Institute of Transportation CIP. In order to conclude the negotiations and start execution of works in the beginning of next year both sides agree with further extension of the Frame Contract. Serbian side has expressed additional need for truck bilateral transit permissions in by increasing number of permissions for 2000, comparing to year Both sides agree to cooperate on the expert level in the area of civil aviation regarding legal matters. Czech side confirms readiness of Czech companies Metrostav a.s, Subtera, OHL ZS and other Czech companies to take part in building of infrastructural projects such as road and highway corridors, tunnels and other major constructions and emphasizes their extensive experience in this area. Czech side also offers the actual experience of the construction of Prague Metro and affirms current preparedness to participate in the construction of Metro in Belgrade. Both sides welcome cooperation of the relevant ministries of both countries in exchanging experiences related to cooperation in the field of electronic communication and informatic society. 4) Agriculture Both sides confirmed interest in further strengthening of cooperation in specified areas of agriculture, noted that cooperation based on the specific requirements of the Serbian side is successfully continued. Both sides agreed to continue cooperation in the field of water management through transfer of relevant Czech experience in the area of sustainable water management, water management in compliance with EU Water Framework Directive (WFD), purifying waste waters and enforcement of corresponding EU directives, integral management of river basin in context of WFD demands, as well as preparation, public debates and adoption of National Water Management Plan. Serbian side confirmed its interest in cooperation in the field of exchange of experience in the area of programming and implementing rural development measures, as well as organization of agriculture expert services work. Serbian side confirmed continuation of successful cooperation under the scope of institutional and development cooperation in the area of agriculture. Project Support for cheese production in the Pester region was launched in In that context, Government of the Republic of Serbia and Czech Development Agency signed Memo of Understanding concerning customs and VAT exemptions for the project Support for cheese production in the Pester region. 6

7 5) Finance and Development Cooperation Finance The Czech side informed about its standing position concerning the outstanding clearing debt issue. The Serbian side proposed: 1. It is necessary to establish a joint working group, with representatives appointed by the relevant Authorities of both sides 2. To hold experts talks as soon as possible in 2013, regarding the financial and legal issues related to the outstanding debt originated from the period of clearing payments of goods and services between former SFRY and former CSFR and referred to the portion of debt of the Republic of Serbia. Both sides agreed on importance of the above mentioned experts talks. The Serbian side will propose the date and the Agenda for the talks to be held by the end of May 2013 at the latest. The Czech side informed about the problem of company Kovoprojekta Brno, which built in Pancevo refinery the plant Spent Sulphuric Acid Regeneration Unit with local Tax Administration in Cukarica municipality. In order to facilitate finding a solution for this problem, the Serbian side organized the meeting with the representatives of the Tax Administration of the Republic of Serbia. Development Cooperation The Serbian side appreciates the contribution of development assistance provided by the Czech Republic in the amount of 21 mln.eur in the period from 2002 to 2012 (this amount was disbursed only for purposes of development cooperation projects it does not include financial resources for scholarships, small scale local projects carried by the Embassy of the Czech Republic, transformational cooperation projects, humanitarian aid or other programs of support by relevant ministries, such as Aid for Trade etc.). The Republic of Serbia continues to be one of the leading beneficiaries of the Czech Foreign Development Cooperation (FDC), as one of the Priority Project Countries for the period Identified areas of special interest for further cooperation between two sides are: environmental protection, health care, economic development and renewable energy sources. Both sides agreed that further development cooperation, appreciating the principle of partnership, will emphasize on the transfer of experience of the Czech Republic from the process of economic transformation and technical know-how. 7

8 IV. Organizational Issues The Sixth Meeting of the Joint Committee was held in a cordial and friendly atmosphere of mutual understanding and constructive dialogue which characterize the traditional cooperation between the Republic of Serbia and the Czech Republic. In the next period the Committee and its Working Groups will continue to support higher forms of economic cooperation, particularly with regard to Trade, Energy and Transport. Next Meeting of the Committee will take place in Prague towards the end of This Protocol was prepared and signed in two copies both in English Language in Belgrade, on December th, On behalf of the Republic of Serbia On behalf of the Czech Republic Mr. Rasim Ljajić Deputy Prime Minister and Minister of Foreign and Internal Trade and Telecommunications Mr. Martin Kuba Minister of Industry and Trade 8

9 Annex I List of Members of the Serbian Delegation Head of Delegation: 1. Stevan Nikčević, State Secretary in the Ministry of Foreign and Internal Trade and Telecommunications; Members of Delegation: 2. Dejan Popović, State Secretary in the Ministry of Energy, Development and Environmental Protection, 3. Ivica Kojić, State Secretary in the Ministry of Finance and Economy, 4. Dragijana Radonjić Petrović, Special Adviser to the Minister of Finance and Economy, 5. Branko Drčelić, Director of Public Debt Administration, 6. Jelena Marjanović, Assistant Minister for Bilateral Economic Cooperation in the Ministry of Foreign and Internal Trade and Telecommunications, 7. Dejan Lasica, Assistant Minister for Railway and Intermodal Transport n the Ministry of Transport, 8. Nebojša Vasiljević, Assistant Minister for Electronic Communications, Information Society and Postal Services in the Ministry of Foreign and Internal Trade and Telecommunications, 9. Milanka Davidović, Head of Department in the Ministry of Agriculture, Forestry and Water Management, 10. Vesna Novaković, Head of Department in the Ministry of Foreign and Internal Trade and Telecommunications, 11. Vera Janković, Head of Department in the Ministry of Finance and Economy, 12. Biljana Ranđelović, Head of Section in the Ministry of Agriculture, Forestry and Water Management, 13. Stanka Radan, Head of Unit in the Ministry of Foreign and Internal Trade and Telecommunications, 14. Dragana Ratković, Head of Unit in the Ministry of Finance and Economy, 15. Dragan Nesić, Head of Unit in the Ministry of Transport, 16. Tatjana Đurđević Stepanić, Senior Adviser in the Ministry of Regional Development and Self Government, 17. Dubravka Bucalović, Senior Adviser in the Ministry of Finance and Economy, 18. Aleksandar Simović, Adviser in the Public Debt Administration, 19. Aleksandar Kocić, Adviser in the Public Debt Administration, 20. Dragana Dejanović, Adviser in the Public Debt Administration, 9

10 21. Eva Zlatković, Adviser in the Ministry of Finance and Economy, 22. Milanko Savić, Adviser in the Ministry of National Resources, Mining and Spatial Planning, 23. Milana Arlov Sekulić, Adviser in the Ministry of Foreign and Internal Trade and Telecommunications, 24. Olga Jovanović, Adviser in the Ministry of Foreign Affairs, 25. Milija Marković, Economic Adviser in the Embassy of the Republic of Serbia in Prague, 26. Jovan Miljković, Senior Adviser in Serbian Investment and Export Promotion Agency, 27. Rade Mirković, Adviser in the European Integration Office of the Government of the Republic of Serbia, 28. Dragana Muždalo, Secretary of the Board for the International Economic Relations in the Serbian Chamber of Commerce, 29. Jelena Jovanović, Senior Adviser in the Serbian Chamber of Commerce, 30. Svetlana Bajić, Deputy Director in International Relations Department of the National Bank of Serbia, Translator: Snežana Popović. 10

11 Annex II List of Members of the Czech Delegation Head of Delegation: 1) Milan Hovorka, Deputy Minister of the Ministry of Industry and Trade Members of Delegation: 1) HE Hana Hubáčková, Extraordinary and Plenipotentiary Ambassador of the Czech Republic in the Republic of Serbia 2) Martin Pospíšil, Director of Department of Foreign Economic Policies I, Ministry of Industry and Trade 3) Luboš Joza, Diplomat-Economist, Embassy of the Czech Republic in the Republic of Serbia 4) Pavel Svoboda, Ministry of Industry and Trade, Director of CzechTrade, Belgrade 5) Jiří Michovský, Deputy Director of Department, Ministry of Industry and Trade 6) Lukáš Hlavatý, Department of Energy, Ministry of Industry and Trade 7) Svatopluk Čech, Secretary of the Joint Committee, Ministry of Industry and Trade 8) Veronika Ulmanová, Ministry of Environment 9) Miloš Rydval, Ministry of Transport 10) Ondřej Misiaczek, Ministry of Agriculture 11) Petr Plašil, Director of Department, Ministry of Finance 12) Michala Davídková, Deputy Director of Department, Ministry of Finance 13) Martin Náprstek, Deputy Director of the Czech Development Agency 14) Viktor Pokorný, Deputy President of the Czech Office for Standards, Metrology and Testing 15) Michal Čekan, Czech Office for Standards, Metrology and Testing 16) Tereza Strašáková, EGAP Export Guarantee and Insurance Corporation 17) Martin Švéda, Czech Export Bank 11

12 18) Petr Talafús, Chamber of Commerce the Czech Republic 19) Gordana Atanasovski, Embassy of the Czech Republic in the Republic of Serbia 20) Dejan Ždrale, Embassy of the Czech Republic in the Republic of Serbia 21) Svetlana Ivanović, CzechTrade, Belgrade, Ministry of Industry and Trade 12