As Lucija Spiljak/Poslovni Dnevnik writes on the 16th of January, 2019, the Republic of Croatia was the third EU member country to ratify the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union in 2017, opening up new opportunities for both Canadian and Croatian entrepreneurs and innovators, as well as promoting and increasing trade and economic development. Owing to that, Croatian exports to Canada doubled in 2018.

In addition to the abolition of customs duties for more than 98 percent of goods, according to data from the Croatian Chamber of Commerce (HGK) and state statistics, in the first nine months of last year, Croatian exports to Canada doubled to almost 80 million dollars.

This encouraging information was stated at Zagreb's Sheraton Hotel when marking the first anniversary of the implementation of the CETA agreement, in which Canada's Geoff Regan participated. The gathering at the Sheraton was organised by the Canadian Embassy and the Canadian-Croatian Business Network (CCBN).

As the President of the Croatian Chamber of Economy Luka Burilović pointed out, tariffs were abolished on some of the most important Croatian exports - food and pharmaceuticals.

"The possibilities are numerous and Croatian companies need to be proactive in taking advantage of all the advantages now offered by the Canadian market," Burilović stated.

The CETA agreement brings some enormous savings to entrepreneurs, and they are estimated at about 600 million euro. In addition to the abolition of tariff items, this agreement is an instrument for growth and a tool to promote European values, thus contributing to the betterment of everyone.

In addition to the Canadians wanting to invest in Croatia, an increase of over 25 percent of visits made by Canadians to the Republic of Croatia was recorded last year.

On the occasion of the gathering and the welcome news about Croatian exports to Canada, Croatian Parliament Speaker Gordan Jandroković also mentioned NATO, whose role was significant in the development of Croatian-Canadian relations because that way, as he stated, Croatia and Canada recognised and respected each other.

"The CETA agreement shows how states can help each other and contribute to their economies," Jandroković pointed out.

Geoff Regan of Canada's House of Representatives, said that Canada wants to increase its trade and investment with EU countries, including Croatia, which, he said, is an important trading and investment partner. He also mentioned that according to unofficial estimates in Canada there are 300,000 people there with Croatian roots, so the Croatian diaspora contributes to the strengthening of economic relations between Canada and Croatia.

"The comprehensive economic and trade agreement between Canada and the European Union is an important tool to help increase trade and investment with EU countries. By ensuring that businesses and people can maximally use the opportunities for increased trade that CETA will help to achieve, Canada and EU countries will establish lasting foundations based on a growing relationship which will contribute to our common progress,'' Regan concluded.

The 27th anniversary of Croatia's international recognition and Croatia's diplomatic recognition from Canada were also marked at the gathering in Zagreb.

Make sure to follow out dedicated business and politics pages for more information on Croatian exports, and much more.

Click here for the original article by Lucija Spiljak for Poslovni Dnevnik

As Marta Duic/Poslovni Dnevnik writes on the 14th of January, 2019, at the end of last year, IMG Zagreb marked thirty years of hard work, this Croatian company is otherwise the only specialised manufacturer and servicer of shut-off armature, and producers of stainless steel products and other materials for the oil, gas, petrochemical, pharmaceutical and food industries in the country.

IMG Zagreb was founded way back in 1988 as a private company specialising in the production and service of pipe fittings, high pressure valves, and various other stainless steel products, as well as other materials for the petrochemical, pharmaceutical and food industries. Initially, they had only two employees, namely Čupić's, father and son, and they had just one machine. Today however, the story is quite different indeed, and their activities are divided into production and service management by the engineering department of this successful Croatian company.

"When we got a second machine, way back in 1992, we also got our first big order from INA for gas pumps and that's what really started the company's rise. Back then, we had three employees and we did our first big job with them, and soon we grew to six and later to nine employees. Thanks to our successful business, we also started doing business with other partners from the oil and petrochemical industries such as Siemens, Plinacro, Underground gas storage (Podzemno skladište plina), Crosco petroleum services, Pliva, Janaf, Petrokemija Kutina...'' stated Joško Čupić, the owner of IMG Zagreb.

By 2010, the number of purchased machines had risen, and the number of employees rose to 28. Today, this Croatian company has 26 machines and employs as many as 42 employees. "Our only true competition are imports, because in Croatia, besides us, there really isn't a single manufacturer of such equipment," noted Čupić. The expertise and the real specialisation of IMG Zagreb is readily recognised by their partners on foreign markets.

IMG Zagreb successfully operates on the markets of the former Yugoslavia, France, Germany, Belarus and over in the USA, where IMG Zagreb has delivered high pressure manometric valves on several occasions, while IMG Zagreb's largest turnover on the foreign market is realised in France.

"In America, we work with Alternate Energy Systems, Inc. for which we've already delivered high pressure manometric valves on several occasions. We have the largest turnover in France owing to our partner Siemens SAS, for which we have delivered goods over the last three years, with a total turnover of 561,000, 00 euro, which averages at around 187,000 euro annually.

''It's a newer fact that because of his business satisfaction with us, that partner recommended us to his partners over in Germany, so we've already received inquiries and are now working on getting work,'' said Čupić, who has the long-term goal of this Croatian company working to strengthen Croatian production in the field of pipe fittings and stainless steel products.

"The improvement of production, production facilities and the recruitment of new employees are all activities that we undertake for the purpose of the final quality and quantity of products, which is aimed at the expansion of the market,'' said Čupić.

Make sure to follow our dedicated business page for more on Croatian companies, products and services, as well as doing business in Croatia and the overall investment and business climate.

Click here for the original article by Marta Duic for Poslovni Dnevnik

The relationship between China and Croatia is continuing to grow ever closer, and bringing the Chinese to the Croatian coast is potentially just an introductory step in their much wider engagement on the development of Rijeka's traffic connections, both operationally and financially.

As Poslovni Dnevnik writes on the 14th of January, 2019, Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, will travel to China later this month, where he will discuss, among other things, the opportunity for them to take the concession for a new Rijeka container terminal on the coast with Chinese shipowners and port operators, according a report from Novi list.

Butković will meet with the Chinese traffic minister, representatives of CRBC, who will build Pelješac Bridge, and will also meet with representatives of the naval giant COSCO, as well as several large Chinese shipping and port companies, the potential leasers of the container terminal on that part of the Croatian coast, for which the concession would have to be announced by the middle of this year.

As China and Croatia's bond grows deeper still, the Chinese companies will start with the concession on that particular part of the Croatian coast, the development of a logistics centre and a back terminal in the entrepreneurial Miklavlje zone will probably be offered.

If an interest in making such a move is shown, then the competent Croatian ministry and the Croatian Government will begin seriously contemplating their involvement in far larger infrastructure projects on Rijeka's traffic connections, primarily the construction of a railway line from Rijeka all the way to the Hungarian border, and when looking at much longer-term plans, the possible construction of a large container terminal on the island of Krk, along with a new road-rail bridge.

Make sure to stay up to date with everything you need to know on the growing relationship between China and Croatia and much, much more by following our dedicated business page.

As we reported recently, the Inter-American Investment Corporation will offer Croatian companies a chance to operate on the Latin American market.

As Marija Brnic/Poslovni Dnevnik writes on the 14th of January, 2019, about a year ago, the Croatian Government approved the signing of a contract for Croatia's entrance into the Inter-American Investment Corporation (IIC), which Croatia's ambassador to the USA, Pjer Šimunović, signed back in July 2018 over in Washington, and now, through a parliamentary procedure, the law which this contract confirms has been set in stone.

For Croatian entrepreneurs and Croatian companies, this is a significantly important move because it opens up far more new opportunities in the markets of Latin America and the Caribbean. IIC is a multilateral organisation, part of the Inter-American Bank for Development (IID) group, which finances the private sector and financial institutions in the countries of this region, and Croatia's membership was gained on the basis of succession. There are 48 countries in the IID, of which 26 are Latin-American.

In the IID capital of a massive 170 billion dollars, the United States alone has the highest individual share of 30 percent, while Croatia holds 0.05 percent. Loans, guarantees and other forms of financing can only be used by entrepreneurs from the above mentioned 26 countries, but for Croatian companies, the possibility of participation in tenders for the projects financed by the IID remains very much open. From past practice (IID has existed since 1959 and is the oldest regional development bank) the organisation invests around 11 billion dollars annually into its various projects, and the most common sectors to see investment are infrastructural projects, financial markets, as well as energy and water management.

In procurement procedures for corporate-donor companies such as those from Croatia, business opportunities are mostly open to Croatian companies who deal mainly with infrastructure-related businesses, as well as for consultants, and banks from all member states. Along with the Croatian Ministry of Finance, which is charge of communication with IID and IIC, the Croatian Chamber of Commerce (HGK) will obtain an important role, which will, along with HBOR, inform Croatian companies and entrepreneurs about these welcome new possibilities.

From the Croatian Chamber of Commerce, they state that they had organised education for Croatian companies for several years now, the main goal of which was to get better acquainted with this channel for non-traditional Latin American markets, and after the agreement is signed, Croatian companies and entrepreneurs will be more prepared to take advantage of these opportunities as a more active approach to preparations will take place.

Make sure to stay up to date for more on Croatian companies, products and services, doing business in Croatia, and the overall business and investment climate by giving our dedicated business page a follow.

Click here for the original article by Marija Brnic for Poslovni Dnevnik

Christmas might be behind us for another year (well, almost another year), but the heartfelt news of Croatian companies in all fields and sectors having paid out huge bonuses to their employees up and down the country is enough to bring the generous spirit of the season right back again.

As Poslovni Dnevnik writes on the 12th of January, 2019, while they couldn't pay themselves a tax free cash sum, Croatian companies and employers made sure to reward their loyal employees a total of 2.4 billion kuna in Christmas bonuses and similar rewards last month, and a further one billion kuna was paid out for their good work performance results, according to the findings of the Croatian tax administration.

When summed up as a whole, the amount of bonuses and other similar cash sums paid out to hard-working employees by Croatian companies reaches a massive figure of 3.4 billion kuna, as has been reported by Večernji list.

The results show that on average, each employee received about 2,500 kuna in untaxed benefits, but as is usually the case with any other average, this does not show the real state of affairs. The tax administration points out that back in December 2018, bonuses amounting to a massive one billion kuna were paid out by as many as 37 thousand Croatian companies for 422 thousand employees scattered across the country.

Work performance bonuses were paid only by the private sector and not by the public sector. Finance Minister Zdravko Marić freed up the payment of tax on the payment of bonuses of up to 5,000 kuna per employee, a measure which was readily taken advantage of by every fourth active private Croatian company.

Make sure to stay up to date with our dedicated business page for much more information on Croatian companies, products and services, doing business in Croatia, and the overall business and investment climate.

As Poslovni Dnevnik writes on the 11th of January, 2019, the most successful company in Agrokor's latest reporting period was Konzum, which has continued to deliver handsome revenue and operating profit despite having faced a very long period of uncertainty and adversity.

The 21st monthly business report was published by sixteen companies from the following business segments within Agrokor - retail and wholesale, food and agriculture, covering the period from the 11th of December, 2018, to the 10th of January, 2019.

Operations in the first eleven months of 2018 saw companies realise as much as 21,508 million kuna in revenue, while operating profit stood at 1,716 million kuna.

The most successful company in the reporting period was Konzum, Agrokor's proverbial shining star, whose EBITDA was higher than the plan by as much as 157.9 million kuna, or more than 60 percent, while revenues exceeded the plan by 111 million kuna or 1.4 percent. Consequently, Konzum is the main carrier of operating profit for Agrokor's retail and wholesale business segment.

The largest contribution to the overall operating result of the formerly ailing Agrokor Group was provided by food companies, whose EBITDA was 67.6 million kuna higher than the plan, and almost all companies realised higher profits than the plans. Companies in the segment of agriculture experienced a fall in revenues and operating profit in relation to the plan, but they compensated for the optimisation of costs and the strengthening of other activities, and in eleven months of 2018, they realised slightly more than 2 billion kuna in revenue, and 172.3 million kuna in operating profit.

As part of the extensive preparations for Agrokor's implementation process, on the last day of 2018, all of the Agrokor Group's mirror companies, which have so far been registered as companies under generic names, have been officially granted new names by the Commercial Court in Zagreb. The new names of companies that will begin operating after the completion of Agrokor's creditor's settlement, consist of their old names and the ''plus'' add-on. For example, after the completion of the implementation process, Konzum will operate under the name Konzum plus, Jamnica under the name Jamnica plus, Zvijezda as Zvijezda plus, Ledo under the name Ledo plus, and so forth.

The old names have been retained within the new names of Agrokor's companies in order to preserve the strong value of these branded companies, which will continue to perform on the market under their current brands even after the implementation of the settlement. At the transition stage, the headquarters of all new companies will be in Zagreb, and after the implementation of the settlement, they will be returned to the cities across various parts of Croatia in which they're currently registered and operating.

Unlike mirror companies like Konzum, the Agrokor d.d. umbrella company will get a brand new name by the end of January, and will no longer use the name "Agrokor", resigning the name to the history books alongside the company's former owner, Ivica Todorić.

Make sure to stay up to date with everything you need to know about doing business in Croatia by following our dedicated business page.

For some, the mere idea of the introduction of the euro in Croatia is enough to induce passionate debate. For others, the introduction of the single European currency is the next step to leaving the country's tumultuous past behind, and joining the ''ever closer union'' that Eurocrats in Brussels speak so highly of. While the United Kingdom managed to secure a way out of the currency's introduction much earlier, Croatia had to agree to take on the euro in order to join the bloc.

Introducing the euro in Croatia is likely to bring problems as well as solve them, but what use is the adoption of the single currency when many of Croatia's national institutions are in total disarray? Until state institutions can be brought into line, the introduction of the euro and the overhaul that involves will only work to contribute to existing issues, rather than help to solve them.

As Ana Blaskovic/Poslovni Dnevnik writes on the 9th of January, 2019, just over a year after the announcement of the Croatian Government's intention to introduce the euro, encouraged by positive signals from Europe, Croatia will send a letter of intent to enter the exchange rate mechanism (ERM) by the summer. The aforementioned mechanism is known as the ''waiting room" for a country's introduction of the euro as its currency. Although the letter is only the first formal step in the process of replacing the kuna with the formerly problematic single currency, its content is not merely a pleasant yet rather empty formality.

The letter will involve the Croatian Government agreeing on a series of concrete reform moves, in a relatively short period of about a year. "The ball is now in the government's court to make a list of moves that can be completed within a year, within the gauge that they're achievable, easily measurable, and are written in the letter of intent," an interlocutor close to the central bank told Poslovni Dnevnik.

Judging by the Bulgarian version of the letter that Sofia officially sent to a number of European Union addresses at the end of July, the answer to the question of what exactly Andreja Plenković's government could or should put on paper doesn't need great philosophical effort put into it. There is already a list of specific recommendations from Brussels for the Republic of Croatia.

Reforms is a word that everyone in Croatia gets sick of hearing, and this next political move involves a well-known series of infamous reforms, the implementation of which has been largely shifted to ''next year''. The euro in Croatia however, demands certain reforms be met, and sooner rather than later.

For example, there are administration reforms (including those regarding salaries), reforms to the utterly bizarre Croatian justice system, the establishing of a more just system of social benefits and rights, the strengthening of the fiscal framework, and the introduction of property taxes, a controversial idea which Plenković has moved around quite a lot on.

"The European Commission supports member states' efforts to introduce the euro, not only politically, but in also providing the necessary technical assistance and potential financial resources," said Valdis Dombrovskis, adding that Croatia is very serious in its intentions and is working intensively to meet the conditions for its eventual entry into the eurozone. One of the panelists at that conference was the Croatian National Bank's Boris Vujčić, which is also regarded by all as a firm sign of Croatia's support.

"The most difficult thing to do is to enter the ERM II, because there are no clear criteria that a country needs to meet in order to enter the exchange rate mechanism. Once you're in the ERM, the criteria for introducing the euro is clear, although some of it is constantly changing, so you do need a bit of luck on your side in order to be able to fulfil it,'' said Latvia's governer. One thing is certain, unlike the correspondence Croatia has had with the European Commission until now (primarily concerning becoming a member of the EU), the rules for a country's adoption of the euro are much stricter.

Make sure to stay up to date for more information on the intended introduction of the euro in Croatia and much more by following our dedicated politics page.

Click here for the original article by Ana Blaskovic for Poslovni Dnevnik

A project for Medvednica, a mountain located in Central Croatia just north of Zagreb, will see trees planted. Medvednica nature park is a popular destination, located close to Zagreb with its highest peak being the much loved Sljeme.

As Poslovni Dnevnik writes on the 8th of January, 2019, the JYSK retail chain has launched a project which will see the shopping giant collect all the funds made from the sale of plastic bags containing 50 percent recyclable material from January the 2nd to March the 31st, 2019, and putting them to good use for the purpose of preserving the environment in the Republic of Croatia.

In close cooperation with Croatian forests (Hrvatske šume), the funds collected from the sale of the bags will be intended for the purchase of as many as 10,000 beech seedlings for the purpose of the afforestation of two zones of the popular Medvednica nature park near Zagreb. The goal of this praiseworthy and highly socially responsible project is to raise further awareness of the importance of the need for forests and of their development.

"As a large international company which is in daily contact with thousands of customers, suppliers and associates, we're aware of our roles in the development of socially responsible business, creating a new value for all participants. Our wish is to raise public awareness of the important issues and we're confident that we will encourage many to behave more conscientiously towards nature,'' said Vesna Kukić-Lončarić, JYSK's country manager for Slovenia, Croatia, Bosnia and Herzegovina, and Serbia.

JYSK has initiated a project on the basis of a new directive of the European Union which was introduced in Croatia on January the 1st, 2019. It is a measure to reduce the use of non-recyclable plastic bags. In addition to the effect the retail chain wants to have over regular citizens, JYSK wants to encourage its own employees to actively engage in afforestation in Croatia, and plans to plant the huge number of aforementioned beet seedlings after the end of the fundraising cycle, which will be in April 2019.

"We're pleased that JYSK has recognised the importance of forest care in Croatia. Planting on surfaces that have suffered several times after stormy weather is crucial to restoring the balance of nature. We hope this will also encourage other companies to launch similar initiatives,'' said Damir Miškulin, head of the Zagreb branch of Croatian forests.

Make sure to stay up to date with more news on Medvednica and much more by following our dedicated lifestyle page. If you fancy yourself as a bit of an eco warrior, give Total Eco Croatia a follow.

As Ana Blaskovic/Poslovni Dnevnik writes on the 8th of January, 2019, the Croatian capital city of Zagreb exports 33.2 billion kuna of goods annually, whereas all of the counties of coastal Croatia together export only 15.9 billion kuna annually as a whole.

Despite ever louder warnings that the Croatian domestic economic model is growing weaker because of excessive reliance on tourism, it's likely that not only will that trend change soon, but that the changes will continue to strengthen in the future.

When analysing the figures on commodity exports, the Croatian Chamber of Commerce (HGK) points out that Zagreb exports 33.2 billion kuna of goods annually, twice more than the total exports of all of the counties of coastal Croatia put together - just 15.9 billion kuna. While the commodity export of Zagreb stands for one third of Croatia's total exports, these startling regional differences are so high that, for example, Croatia's southernmost county of Dubrovnik-Neretva, fails to even produce 157 million kuna's worth of goods, let alone export it.

If exports are looked at per capita, then the largest regional exporter is Varaždin County, followed by Zagreb and then Međimurje County. With 172.5 euro per head, Dubrovnik-Neretva County is far, far below the national export duty, of 3,360 euro per capita. The Croatian Chamber of Commerce says that Zagreb is far ahead of all of the others for the simple reason that data on foreign trade is recorded at the headquarters of companies, which logically gravitate to the capital.

Zagreb has the largest foreign trade surplus among Croatia's counties, standing at 46.8 billion kuna. Following are Sisak-Moslavina with 1.2 billion kuna, Brod-Posavina with 868 million kuna and Međimurska with 766 million kuna.

"Despite the shortcomings of the statistics, including the temporary relocation of large companies, it can be concluded that Croatia's accession to the EU and the period of recovery of EU-level demand were the most profitable for Lika-Senj, Zagreb County, and Brod-Posavina, which have achieved the largest export growth rates,'' stated Zvonimir Savić.

Make sure to stay up to date with our dedicated business page for more. If it's just Zagreb you're interested in, give Total Zagreb a follow.

Click here for the original article by Ana Blaskovic for Poslovni Dnevnik

As Josip Bohutinski/VL/Poslovni Dnevnik writes on the 8th of January, 2019, the Croatian Government is set to propose an increase in the amount of PSO contracts Croatia Airlines receives for domestic flights to the European Commission (EC). Croatia's national airline Croatia Airlines (CA) should select a financial advisor to develop a recapitalisation model and find a strategic partner by the end of this month.

The two-time bidding was announced last September, and as has since come to be known, reputable world companies such as Deloitte, AT Kearney, PwC, the Boston Consulting Group and DBV, which are part of a consortium with Croatia's PBZ, have come to be involved.

From Croatia Airlines themselves, they stated that last year, the Croatian Government put the company back on the list of companies of strategic and special interest of the Republic of Croatia, and that in the national reform program, it was stated that the goal in respect to Croatia Airlines is to ensure the further development and strengthening of competitive advantages and positions in the air transport market through quality strategic partnership. That strategic partner, which is obviously yet to be found, should expand Croatia Airlines' transport network and increase market share, as well as successfully recapitalise the air company.

Just how much money is actually needed?

When asked about this, Croatia Airlines responds the bid is still in process and therefore the company isn't in a position to comment on its details at the moment. The selected advisor should assess the amount of money really needed for the recapitalisation of the airline. Croatia Airlines' provisional director, Jasmin Bajić, has already estimated that it stands at about 250 million kuna.

In the past year, the Polish national airline LOT and the 4K German investment fund, which has already taken over Slovenia's Adria Airways, have both been interested in entering Croatia Airlines. As is already known, some Chinese air carriers have recently shown a somewhat general interest, but air carriers outside the European Union can only have up to a 49 percent share in an airline from within the European Union at most. As potential buyers, the Chinese have also mentioned the previous sales attempts by Croatia Airlines, all of which have failed.

Nobody made any serious offers or even showed a great deal of potential interest back in the 2013 recapitalisation bid, although Indonesia's Garuda and China's Hainan Airlines were mentioned as potential buyers. Of course, nothing came of it.

The then government started looking for a strategic partner for Croatia Airlines once again back in 2015, they hired IFC, a World Bank fund that verified the interest of European and world air carriers for the Croatian national airline. At that time, Korean Air and Taiwanese Eva Air were mentioned as the most prominent companies. IFC was supposed to propose a proper privatisation model for Croatia Airlines, after which a public tender was to be launched. But yet again, nothing came of it, because parliamentary elections were held at the end of the year, and the powers that be were subsequently changed.

While the new advisor elaborates the model of privatisation of Croatia Airlines again, the government will, along with the European Commission, try to find a way and hopefully agree on how the state could further assist the still struggling Croatia Airlines.

The Croatian proposal will be to increase the amount of public service obligation (PSO) contracts that Croatia Airlines gets for domestic flights, currently amounting to 75 million kuna. In addition, this year the Croatian National Tourist Board will receive 7.5 million kuna for joint advertising.

Make sure to stay up to date with the Croatia Airlines saga and much more by following our dedicated business, politics and lifestyle pages.

Click here for the original article by Josip Bohutinski/VL on Poslovni Dnevnik