PARIVODIĆ: Croatian does not play fair

Minister of International Economic Relations Milan Parivodić stated that one of the basic reasons why the agreement on Central European Free Trade Area (CEFTA) had not been signed was Croatia's refusal to accept the proposal of Serbia to increase customs duties on import of cigarettes in exchange for cancellation of differential excise taxes.

Parivodić said that, in addition to Croatia, Macedonia also asked from Serbia to equalize excise taxes witht the surrounding countries, but not to increase customs duty, which now amounts to 15% and is one of the lowest in the region.

According to his words, Serbia could have not accepted that because it has obligation toward big foreign companies - "British American Tobacco", "Japan Tobacco" and "Phillip Morris", which took over huge investments and protect domestic cigarette market prior to December 31, 2009.