Dubrovnik – Picture courtesy of cesscasawin and http://www.freedigitalphotos.net
I’m not talking about Texas.
This week, little Croatia (population 4.5 million) completed its 18 year journey from war torn state to take its place at the table as the 28th member state of The European Union. Although there were scenes of celebration in Zagreb, the country’s capital city, Croatia’s accession was a somewhat more sober affair than when eight former Eastern European states joined in 2004.
As Croatia has been struggling to establish itself as an independent state following the violent break-up of Yugoslavia, the countries of the EU have been coming to terms with the ongoing effects of the global credit crisis. Croatia is joining a club that lacks much of the swagger it once had. With unemployment in the Euro zone reaching a record 12.2% this week and many EU states still in recession, this week has hardly been the fairy tale that Croatian people might once have dreamed of.
Croatia has overcome much of the devastation of the four year war of independence, which saw 25% of its fragile economy destroyed as well as the loss of at least 10,000 lives, with many more people being displaced. It ranks at 25 in the EU wealth list (GDP per capita, CIA World Fact Book) ahead of Latvia, Bulgaria and Romania but with an income per head of little more than half of the European average.
Croatia’s President, Ivo Josipović has steered his country towards full EU membership for the last three years, and is convinced it is the right move. “From an economic point of view, there is indeed a crisis, but I think we are stronger together, and that the crisis did not originate from the European Union itself, but rather from the economies of a few specific countries, that is why I think that to put an end to this crisis, we need more Europe and not less Europe,”
What does the accession mean for Britain? Croatia’s beautiful coast line has already made the country a big hit with British tourists, but so far the trade relationship is pretty limited. UK exports to Croatia in 2011 were worth a mere £156 million is 2011, with pharmaceutical products and transport equipment topping the sector list, as is often the case. The UK is only number 17 in Croatia’s list of supplier nations, dwarfed by other EU states such as Italy, Germany and even Austria.
Croatia is pretty accessible for British exporters, too. Eight airlines have direct flights to the capital, Zagreb, the great majority of businesses have internet access and a website and around half of Croatian people speak English. Business visitors report that Croatian business people are often reluctant to share too much sensitive information about their business before meeting face to face, so it sounds like an early visit to this beautiful country is essential for serious suppliers.
The Accidental Exporter wholeheartedly welcomes Croatia to full EU membership, and looks forward to a long and fruitful business relationship.
We would love to hear from companies who are already trading with Croatia, and can offer the benefit of their experience to others. Please feel free to share your experiences here, or contact us via Twitter
The Accidental Exporter 