The President of the Republic told reporters that he and Milosevich agreed that "following the lifting of the UN sanctions against FR Yugoslavia
, conditions for the development of normal economic relations would be created, as well as cooperation between the two countries and broader in the region, which would improve the present economic cooperation between the Balkan countries considerably.
5% of its imports came from, the other two major SEE countries, Romania and FR Yugoslavia.
9) Five military conflicts, policies of ethnic cleansing, inward-oriented nationalistic policies which gave priority to political over economic aims, delays in carrying forward the transition to multiparty democracy and market economy, poor and deteriorating economic performance, international sanctions against FR Yugoslavia, its decade-long isolation and NATO bombardments in spring 1999, are among the principal reasons of the delayed process of EU integration.
FR Yugoslavia in 1998 also exported more to the other SEE countries (35%) than to the EU (33%), though its imports from the EU (39%) were more than double the share of imports from SEE (16%), confirming its enormous import dependence on the EU (a feature typical of other SEE countries as well).
In the second half of the 1990s, trade in the SEE region was frequently shaped along ethnic lines, being very intensive especially between Croatia and Herzegovina (part of the Bosnian Federation), FR Yugoslavia and the Republika Srpska (the Serb part of Bosnia and Herzegovina), and Kosovo and Albania.
Major disruptions in trade of all SEE countries have taken place in 1999 as a consequence of the war in FR Yugoslavia.
The other agreements have application dates which go back to 2001-3 or even earlier, as they refer to provisions adopted within CEFTA or within bilateral free trade agreements, such as those signed between FYR Macedonia and FR Yugoslavia in 1996, or Croatia and FYR Macedonia in 1997.
Moreover, as stressed earlier, as late as 1998 Bosnia and Herzegovina and FR Yugoslavia still had a relatively larger share of exports directed towards the SEE, than towards the EU.
As noted earlier, before the political normalisation of FR Yugoslavia's relations with the EU and especially during the years of economic sanctions, a large part of Yugoslav imports originating from the EU were entering the country indirectly, through third countries in SEE, which effectively contributed to FR Yugoslavia having a higher relative share of intra-SEE trade during those years than otherwise would have been the case.
43), which take into account economic size and distance, have suggested that there is a potential for a significant overall increase in intra-SEE-5 trade, given that the value of this trade could be 70% larger than its actual level--particularly between Croatia and Serbia and Montenegro, though "excessive" levels were present in Bosnian trade with both FR Yugoslavia and Croatia (because of the special relationships between Republika Srpska and Serbia and between the Bosnian Federation and Croatia).