|
The European Commission has considered Bulgaria a functioning market economy since 2003.
In 2003, Bulgaria was the Union 's 35th trade partner and total bilateral trade (imports and exports) amounted to €9.2 billion, a figure which has doubled since the entry into force of the EU-Bulgaria Europe Agreement in February 1995. In 2003 the relative share of the Bulgarian exports to the EU accounted for 56.6% (€ 3769.8 million) of Bulgaria’s total exports.
The EU’s surplus in EU-Bulgaria trade relations has increased every year since 1999 and in 2004 the surplus reached 1,482 billion euro, which meant an increase of 17.6% compared to 2003.
Investment links between the EU and Bulgaria are substantial and their increase since the entry into force of the Europe Agreement in 1995 is spectacular: EU investment flows to Bulgaria increased by 95% in the same period.
The Europe agreement with Bulgaria covers a large number of issues, focusing on:
Trade liberalization and other trade-related issues;
Political dialogue;
Legal approximation;
Other areas of co-operation, in the area of industry, environment, transport and customs.
The Agreement aimed to establish progressively a free-trade area between the EU and Bulgaria, on the basis of reciprocity but in an asymmetric manner. In other words, liberalization was to be implemented more rapidly by the EU than by Bulgaria. Currently, over 95% of country’s trade with the EU is conducted freely, while a few agricultural and processed agricultural products remain subject to customs duties on both sides.
The EU has recently adapted its Europe Agreement with Bulgaria in order to reflect its 2004 enlargement. The aim of the adaptation was to ensure that traditional trade flows between the three countries and the new member states would not be disrupted.
Bilateral trade consists mostly of textiles and clothing (€ 1.48 billion in 2003 i.e. 16% of total bilateral trade), machinery (€ 1.8 billion or 19.6% of total bilateral trade in 2003) and chemical products (€ 0.9 billion or 9.8% of total bilateral trade in 2003), while trade in agricultural products only accounted for € 0.7 billion or 7.6% of total bilateral trade in 2003.
|
