Applicants claim single market in reach claim newcomers

Date: 04/02/1999

By Simon Taylor

COMPLYING with EU rules on the single market and government support for industry will not be a major problem for the leading six applicants for Union membership, according to their latest negotiating papers.

But bringing external customs tariffs into line with EU levels is likely to pose bigger difficulties, as they are anxious to keep special arrangements to protect their markets from a surge of imports from non-Union countries such as Russia and Ukraine.

Ambassadors from the six countries which have already begun formal negotiations with the European Commission have submitted a series of papers in recent weeks setting out how far they can go in implementing EU rules in a number of areas ranging from the free movement of goods, competition law and customs tariffs to trade agreements with non-Union countries.

Despite predictions that these areas could raise serious obstacles to early Union membership for the front runners, most of the applicants have asked for relatively small concessions on joining the EU.

Hungary and Poland have requested clarification of Union rules on state aids to industry, with Polish ambassador Jan Truszcynski insisting that flexibility is essential to his country's future. "We are a country making up for lost time with a low level of economic development," he said.

In addition, the two states want confirmation that they will benefit from the most generous levels of EU aid available to support struggling regions.

The applicants have also expressed concern about the future of trade agreements which they have signed with neighbouring countries.

Both Hungary and Estonia have promised that they will scrap special concessions by the time they become full Union members, but argue that they must be allowed to retain the right to introduce specific protective measures if they are hit by a sudden flood of imports of products such as steel, construction materials and bulk chemicals. Hungary wants to keep this option open for four years after joining the EU.

Slovenian sources have indicated that they will fight to keep the country's trade accords with other former Yugoslavian states for up to ten years after it becomes a full member of the Union. Ljubljana would need similar concessions on border tariffs with third countries and the Czechs may ask for permission to extend their trade accord with the Slovakians.

As bringing external tariffs into line with EU levels would require applicant countries to raise import duties, and hence the cost of raw materials for some industries, Budapest wants to phase in selected changes over five years.

All six countries have now presented their negotiating positions in 15 areas of EU legislation: half of the total. But the applicants are aware that the most difficult issues still lie ahead. "We have submitted half of the chapters, but only covered one tenth of the negotiations," said Dr Endre Juhasz, the Hungarian ambassador to the Union.

Working groups of experts will consider the candidates' requests for concessions ahead of two formal negotiating session in April and May.

Feature looks at various negotiating papers submitted by the six 'first-wave' applicants to the EU.