BILATERAL ECONOMIC RELATIONS BETWEEEN CROATIA AND CANADA
Croatia and Canada signed all relevant bilateral economic agreements:
- Open Sky, initialled in December 2006;
- Agreement on the promotion and protection of investments – date of effect 1/30/ 2001
- Agreement for the avoidance of double taxation and the promotion of fiscal evasion with respect to taxes on income and on capital – date of effect 23/11/1999
- Social Treaty, 1998
International bilateral agreements taken over through succession of former SFRY:
- Trade Agreement between Government of the SFRY and the Government of Canada (1/1978)
- Agreement between the SIV of the SFRY and the Government of Canada on protection of investment (5/1980);
Other important decisions and programs:
- Since 1997 import duties on Croatian products imported to Canada fall within the General Preferential Tariff and are up to 30% lower then the regular import duties.
- Croatia has been included in all relevant programs of EDC, Governmental Agency offering financial support and guarantees;
- Since 2006 the Government of Canada, after examination of Croatian food processing companies, approved the export from Croatia to Canada of the products made from Croatian companies Danica doo and PIK Vrbovec;
Visits, Investment and Trade Road Shows:
- President of Croatian Chamber of Commerce visited Canadian Croatian Chamber in Toronto, May 2006;
- Director of the Agency for Market Competion, October 2007
- Director of Investment promotion Agency presenting Croatian investment opportunities, May 2007;
- Visit of the highest representatives of Dalmatian County on the invitation of the Province of Nova Scotia, Septemeber 2008;
- State Secretary for Economy presented Croatian economy on Business Forums organised by ATA NATO in Toronto, May 2009;
The Croatian Embassy has placed a strong emphasis on strengthening of trade and investments, which was additionally stimulated by Canada’s decision to lift visa requirements for Croatia. The Embassy has been promoting business opportunities in general as well as facilitating the initial contact of companies from both sides.
Total bilateral trade between Croatia and Canada has tripled in the period between 2005 -2009 (from 37 mil US to 124 mil US) and other high-value products are expected to be delivered in 2010 (Bombardier aircrafts, wagons and vessels ordered to Croatian shipyards);
Investments from Canada
Canadian companies have invested primarily in retail, tourism and the residential housing sector. Canadian companies are showing interest with respect to investing in Croatia in sectors such as energy, infrastructure, environment and tourism. The biggest interest has been for investment in Zagreb’s infrastructure projects – (i.e.: Zagreb Airport, Hotels with residential developments and environmental projects). The Canadian Government contributed 206 000 $ for a feasibility study on a modernization project that was done by a Canadian company CANAC on the Croatian rail system.
More then 37,000 Canadian tourists visited Croatia in 2009, mainly on Mediterranean cruises or individual European tours. Croatia has become an attractive destination for Canadian tourist agents as well as for the Canadian public. The Croatian Tourist Office out of New York covers the Canadian market.