InFocus USA by Diplomacy&Commerce magazine

USA 2018

USA & CROATIA

WE SHARE THE SAME DEMOCRATIC VALUES H.E. W. ROBERT KOHORST

U.S. Ambassador to Croatia

ANDREA DOKO JELUŠIĆ

JELENA DUMIČIĆ

Executive Director AmCham

Senior Expert Associate, International and EU Affairs Sector, CCE

THE TALLEST MOUNTAIN IN THE WORLD

FERRIS WHEEL IS AMERICAN

The tallest mountain in the world is actually located in the United States. It is actually taller than Mount Everest. It’s called Mauna Kea and it’s located in Hawaii and it is some 9700m high, but majority of it is under the sea level.

Chicago is the birthplace of the first ever ferris wheel, which was 80m tall and debuted in the 1893 World’s Fair and was demolished shortly after in 1906. Today the 15 story high one at Navy Pier is modelled after the original one.

THE LAND OF PIZZA

BIG... ORANGE. REALLY BIG xxxLos Angeles was not as “tall” as other large cites, and sprawls for miles. One reason is that before 1957, there was a law against any building having more than 13 stories.

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USA 2018

Americans eat about 100 acres of pizza each day, with about 3 billion pizzas sold annually in the USA. Although it is originally Italian, due to huge Italian diaspora it became truly American, especially the thick Chicago-style pizza

GRAND CANYON

It is widely believed that the Grand Canyon of Colorado is the largest in the world, but it is not - The Yarlung Tsangpo Grand Canyon in Tibet, China is slightly longer and deeper, but due to its inaccessibility it is rarely mentioned, being surpassed in popularity by its American counterpart.

YORK, 04 NEW NEW.... WAIT A MINUTE! The Statue of Liberty is often usually associated with New York City, but it is actually physically located in New Jersey! Jersey City, to be more precise.

BROTHERLY LOVE CITY The original capital of the United States was Philadelphia, which means “Brotherly Love” in Greek. Washington D.C. became the capital in 1790.

FLAG DESIGNED 08 B-BYSTUDENT A HIGH SCHOOL The current US flag features 50 stars and was designed by Robert G. Heft. Heft initially created the American flag in 1958 as the school project during his junior year in high school. Heft scored a B- in his project.

USA 2018

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USA

BOBAN SPASOJEVIĆ Executive editor boban@diplomacyand commerce.hr

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Advertising manager marketing@ diplomacyandcommerce.hr

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PR&Event support Nord Communications vanja.communications @gmail.com

ROBERT ČOBAN

H.E. W. ROBERT KOHORST

Senior Expert Associate, International and EU Affairs Sector, CCE

WE SHARE THE SAME DEMOCRATIC VALUES U.S. Ambassador to Croatia

BIGGER INVESTMENTS IN CROATIAN ARMED FORCES AND IN OUR DEFENCE

Director Photos

GETTY IMAGES TOMISLAV SMOLJANOVIĆ

DAMIR KRSTIČEVIĆ

Translation

Deputy Prime Minister and Minister of Defence

SNEŽANA BJELOTOMIĆ SVEN DARRER

Advertising manager 091 766 5479 091 377 4358 sven@diplomacyandcommerce.hr Predstavnik za RH

WE SHOULD FOCUS ON KEY ADVANTAGES

ANDREA DOKO JELUŠIĆ Executive Director AmCham

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USA 2018

THE RISE OF TRADE

JELENA DUMIČIĆ

MANY MILES ARE AHEAD OF US

American Chamber of Commerce in Croatia

DO YOU WANT YOUR PLANET OR PLASTIC?

PETRA LEDINEK

Marketing Manager at FOX Networks Group

Economy

STRONG ONCE AGAIN

FRIENDS WITH PERSPECTIVE

Economic cooperation

24 EX PLURIBUS 26 UNUM THE WORLD OF 28 ITS OWN LAND OF THE FREE

Spirit

History

Tourism

INTERVIEW

H.E. W. ROBERT KOHORST U.S. Ambassador to Croatia

WE SHARE THE SAME DEMOCRATIC VALUES 6

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Our relationship is durable and prosperous and our cooperation on multiple levels including political, military and economic cooperation is close and effective

”I

was looking for a place where I could have the chance to work hard and make a difference”, that is how H.E. Mr. W. Robert Kohorst, the United States Ambassador to Croatia, explains why he set his eyes on Croatia to start his diplomatic career. Close to the end of his first year of service in Croatia, H.E. Mr. Kohorst gives our readers his insights into potential for further improvement of the already excellent relations between the US and Croatia.

What makes the relationship between the US and Croatia so durable and prosperous today? — It is clear that the U.S.-Croatia relationship is strong and continues to grow in many ways. Croatia is a close NATO ally and EU partner and we share many common values. Our relationship is durable and prosperous due to our close and effective cooperation on multiple levels including political, military and economic cooperation. In terms of our political cooperation, the United States and Croatia have a terrific relationship. I have met most of the senior leadership in the government, and we have been able to share ideas on a frank and open basis. Often we agree; sometimes we do not. However, that is how good friends and partners work together. The United States and Croatia have excellent military cooperation. Our soldiers are deployed together on NATO missions in places like Afghanistan, Poland and Kosovo. Croatia also recently made a significant troop contribution to the UN peacekeeping mission in Lebanon. We share the common goal of bringing peace and stability to the region. Our close mil-

itary relationship was highlighted by the visit of Secretary of Defense James Mattis to Zagreb in July in connection with the A5 Defense Ministerial Meeting. Secretary Mattis's visit was a follow on to a successful visit by Minister Krsticevic to Washington, DC in May. Our economic relationship is significant with more than 100 U.S. based companies operating in Croatia. I encourage

OUR ECONOMIC RELATIONSHIP IS SIGNIFICANT WITH MORE THAN 100 U.S. BASED COMPANIES OPERATING IN CROATIA U.S. businesses to look for opportunities in Croatia, but I also know Croatia has a difficult investment climate. So I also spend a lot of time encouraging my Croatian interlocutors to support reforms that could improve the business climate, streamline bureaucracy, and build confidence in the judiciary. I think those are the keys to making Croatia an even more attractive investment destination.

How does Croatia’s membership in NATO and European Union affect the relations between the two countries? — Croatia’s membership in NATO and the EU demonstrates Croatia’s commitment to Transatlantic values. Despite recently publicized disagreements between NATO and EU members and the United States, we all

share a desire for peace and prosperity in the world. I believe we will work out our differences in a way that strengthens our relationships and furthers our values.

In terms of the economy, how would you rate the commercial and investment climate in Croatia? — As I have said many times before, the investment climate in Croatia is challenging. As Croatia improves its business climate, including reforms to the bureaucracy and judiciary, I expect that American companies will increase their presence here. American businesses are driven by capitalistic ideals. When opportunities arise in Croatia, American companies will invest significant capital, but only if they know they can rely on efficient and effective state institutions, including the judiciary. That’s why we continue to urge Croatia to improve its business climate – both the United States and Croatia benefit. How likely is American involvement in the energy sector? Is the Three Seas Initiative viable now when relations between the US and the EU are going through changes? — Unlike many countries where investment decisions are driven by the state, U.S. investment decisions are all based on individual company determinations. This is especially true in the energy sector. The United States has deep pockets of capital ready to invest throughout the world in the right circumstances. The Three Seas Initiative is an important and creative initiative. It will remain viable regardless of any short-term policy disagreements between the United States and European Union.

IMPROVEMENT

AS CROATIA IMPROVES ITS BUSINESS CLIMATE, INCLUDING REFORMS TO THE BUREAUCRACY AND JUDICIARY, I EXPECT THAT AMERICAN COMPANIES WILL INCREASE THEIR PRESENCE HERE USA 2018

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What is the strategic position of Washington about the construction of a floating terminal on Krk? — We view the Krk LNG project as important to providing energy diversification to Southeast Europe. It is one piece of the puzzle, but one that can be implemented in the near term. Diversification encourages best pricing and security of supply for a vital commodity. As a region vulnerable to supply disruption, Southeast Europe needs to diversity its options for purchasing gas. Croatia has the ability to make a major contribution to regional gas supply diversification and security. As a real estate expert, how do you view Croatia’s tourism sector? — Croatia has terrific and varied natural resources for tourism. The industry, however, needs additional capacity, particularly in the luxury tourism sector, to support continued usage and extension of the season. There are great opportunities for growth, but the local governments need to facilitate appropriate projects and not create unnecessary roadblocks to development. One thing I hope we can do to help is to exchange experience and best practices.

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I TELL MY FRIENDS THAT I AM THRILLED TO BE IN CROATIA AND HAVE THE OPPORTUNITY TO REPRESENT THE UNITED STATES HERE What do you see as similarities in the two cultures? — We share Western values, which were so beautifully articulated in our Declaration of Independence: “all Men are created equal, [and] . . . are endowed . . . with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness …” Both of our cultures support these fundamental freedoms and our joint support of these democratic values allows us to have close and effective cooperation on a wide range of matters -- not just through the kinds of political, economic, and military cooperation I described earlier, but also through educational and cultural exchang-

es which reinforce the kinds of personal ties that make our relationship so strong.

You have been in Croatia for a relatively short time. What do you like the most so far? — It is difficult to isolate one thing. First, I like the warmth of the people. My wife and I have been very welcomed by so many Croatians from all walks of life. It makes being a long way from our family in California better. Second, the country is beautiful, from the charm of Zagreb and many smaller towns, to the fabulous national parks, and of course, the coast. Third, the enduring friendship between the United States and Croatia makes my job enjoyable and, hopefully, productive. What do you tell your friends in the US about the country you work in? — I tell my friends that I am thrilled to be in Croatia and have the opportunity to represent the United States here. I cannot image a more interesting and fulfilling job for me at this point in my life. Every day I look forward to representing the United States and finding ways for both of our countries to achieve our goals.

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BIGGER INVESTMENTS IN CROATIAN ARMED FORCES AND IN OUR DEFENCE

The decision of Croatian Government to adopt a new National Security Strategy and renew strategic documents for the first time after many years, and to finance procurement of modern equipment make this moment in development of defence forces a historically important one

oday, Croatia is a safe country. This is recognized both by our citizens and by numerous tourists coming to visit our country. Croatia is an esteemed member of NATO, and members of Croatian Armed Forces are participating in many missions worldwide, where they excel with their preparedness and professionalism”, stated Damir Krstičević, Deputy Prime Minister and Minister of Defence of the Republic of Croatia. “Negative trends were stopped in this Government mandate, we improved defence capacities and living and working standards of members of Croatian Armed Forces. Expected continuation of growth of the defence budget will enable the implementation of other initiated and new plans of the Ministry of Defence.

How do you rate the security situation in Croatia and the region if we consider the challenges like the migrant crisis and similar? — The world, and the region of South Eastern Europe as well, are faced with new security challenges, like natural disasters, hybrid and cybernetic threats, migrant crisis. Croatia recognized that the security paradigm has changed and after 15 years, this Government adopted a National

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USA 2018

INTERVIEW

DAMIR KRSTIČEVIĆ

Deputy Prime Minister and Minister of Defence

Security Strategy and the Homeland Security Act. We are establishing a homeland security system which includes all the components, from the military, police, National Protection and Rescue Directorate (DUZS),Croatian Mountain Rescue Service, firefighters, and others. Croatia is rated as a safe country and I am glad because of that, and this was noticed also by the many tourists coming to visit us. We are a member of the European Union and NATO, and an example for other countries in the region. As for the countries of SE Europe, political situation continues to be unsatisfactory, however, we can see positive developments of countries on the path to Euro-Atlantic integration, i.e. the process of their accession to NATO, to which Republic of Croatia actively contributed. I am referring here to Montenegro’s entry into NATO and to invitation sent to Macedonia for start of negotiations on membership.

active participation in redefining policies, structures and activities of the Alliance in accordance with national interests. We will pay special attention to increased allocations for the defence, where we had a significant increase. We are extremely proud of our participation in NATO operations and activities, primarily of our perennial participation in missions in Afghanistan and Kosovo, and in activities of enhanced Forward Presence in the Baltic members of the Alliance. I saw for myself several times that our allies and partners extremely appreciate the superb professionalism, training and fitness of the members of Croatian Armed Forces (CAF) in missions across the world within NATO, EU and UN. By participating in missions and operations worldwide, Croatian Armed Forces is strengthening its interoperability and its own abilities, and it is gaining valuable experience we can apply at home.

Within NATO and outside of it, which challenges are in your focus? — Republic of Croatia marked nine years of NATO membership this year, and we received praise from our allies on several occasions, of which I am extremely proud. We have two important goals ahead:credible fulfilment of obligations and

US Army and the US Government helped a great deal in gaining independence of Republic of Croatia and liberation of occupied territories during the Homeland War. How would you describe military relations with USA through history and how are they today? — The United States of America are a key

strategic partner of the Republic of Croatia in the field of defence and security. American contribution in equipping the Croatian Armed Forces through various donations and through training and education of our members is immeasurable. They helped us a great deal when joining the NATO alliance, both politically and in the military sense. After the war, we had to transform the Croatian Armed Forces so it could become a full-time member. For 22 years already, we are friends and partners with the Minnesota National Guard, and I am very satisfied with the achieved level of cooperation. In the field of safety and defence, we have always learned and we want to learn from the best. Proof of partnership and friendship with the United States of America is the arrival of US Secretary of Defence James Mattis to Croatia. He visited Zagreb in July this year, where he took part in the Special US-Adriatic Charter Defence Ministers Meeting. On this occasion, Mattis repeated the words he said at the Pentagon, that Croatia is a small country who punches above its weight, which is a great recognition for Croatia and the Croatian Armed Forces.

In which areas is this cooperation most intensive? — Defence cooperation between Republic of Croatia and the United States of America is progressing in almost all functional areas, from education of members of the Croatian Armed Forces in USA, equipping and strategic transport of CA members in Afghanistan, organizing joint trainings and military exercises, donation of weapons and military equipment and enabling the use of funds for equipping and training, to support in the form of humanitarian activities. Priorities are defined in three areas -upgrading of Croatian Army’s defence abilities, contribution to international security through NATO membership and by participating in missions and operations worldwide, promotion of stability in SE Europe through cooperation within the US-Adriatic Charter and assistance for NATO aspirants. What is the combat condition and equipment of the Croatian Armed Forces? — My team and I are systematically working on development of Croatian Armed Forces abilities and improvement of living and working standards of members of the Croa-

tian Armed Forces. Fighting efficiency of the Croatian Armed Forces is at a high level, and required abilities of the Croatian Army are a result of the national defence planning process, which is in compliance with the NATO Defence Planning Process, and which provides a framework for harmonization of national and planning activities of allies. Croatian Armed Forces is focused on creating new operative abilities and maintenance of existing ones, directly connected to modernization and equipping programs, education and training system and the implementation of national and international military exercises.

AFTER 15 YEARS, THIS GOVERNMENT REACHED A HISTORICAL DECISION ON PROCUREMENT OF A MULTIROLE COMBAT AIRCRAFT F-16 AND TO RETAIN CAPABILITY OF SURVEILLANCE AND PROTECTION OF AIR SPACE After 15 years, this Government reached a historical Decision on procurement of a multirole combat aircraft F-16 and to retain capability of surveillance and protection of air space and to preserve the future of our combat air force. Also, Kiowa Warrior armed reconnaissance helicopters were introduced in operative use, we conducted training for pilots and technicians for Kiowa Warrior helicopters and the first solo weapon firing exercises. We also conducted weapon firing exercises on powerful Panzer howitzers.

Since the beginning of the mandate, you and your team have been systematically working on reconstruction and modernization of Croatian Armed Forces. What can we expect in the upcoming period? — First of all, I want to point out that we stopped and reversed the negative trends and the decline in defence budget precisely in this Government’s mandate. We have improved material rights and living and working conditions of our members, and

we will continue to work on that. We also expect a continuation of growth of the defence budget, which will allow further development of capabilities of the Armed Forces. In the upcoming period, we first plan to finish the initiated modernization projects, some of which – like the procurement of a multirole combat aircraft – are crucial for development of total capacities of the Armed Forces. At the same time, capability development will focus on land forces, introduction of new technologies into communication and information systems and development of command and control capabilities. Introduction of these systems will directly improve the effectiveness of combat operations. Overall development of capabilities on the long run will be in line with the projections of available resources through the new Long-term Development Plan,which is being prepared.

What does new operational arrangement of the units of Croatian Armed Forces imply and why is it necessary? — Return of Croatian Armed Forces units to the towns is a part of the concept of new operational schedule of Croatian Armed Forces units with the purpose to increase living, working and training standards of members of the Armed Forces, promotion of military profession and values of the Homeland War, increasing the security and protection of citizens, all in the context of changes in the security environment and response to new security challenges. Croatian Armed Forces units are returning to towns where the army was traditionally present. Last year we conducted the return of members of the Croatian Armed Forces to “126. Brigade HV” military base in Sinj and the arrival of Croatian Armed Forces to the heroic town of Vukovar. This year, on the occasion of Croatian Navy Day, we opened the military base in Ploče, where the Marines landing infantry company, a new and modern ability of the Croatian Navy, is located. At the end of this year, heirs of the legendary Pumas (Croatian: Pume), 7th Guards Brigade, are returning to Varaždin, where the military base will be restored. The next project of strategic importance is the return of Croatian Armed Forces to Istria in synergy with the local community.

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WE SHOULD FOCUS ON KEY ADVANTAGES INTERVIEW

ANDREA DOKO JELUŠIĆ Executive Director AmCham

We cannot compete on high scales, but in those sectors where educated labour force, multilingual skills or natural beauties, like in tourism, can add significant value. We can learn a lot from Ireland which has chosen IT, biotech and nanotechnology, as areas in which they develop their key competencies

f Croatia wants to be competitive, it needs to work even more than today on making business easier, says AmCham Executive Director Andrea Doko Jelušić. However, some progress was observed and noted in the last survey that included AmCham companies with established business in Croatia. Numbers spell the story: for the upcoming three-year period, 79% of AmCham member companies plan to expand the scope of their business operations in Croatia, while only 3% plan to reduce it.

here and interested to contribute to country’s economic development. Business Climate Survey we conducted at the end of last year shows that majority of participants (65%) described their business results in 2017 as better than in the previous year while an increase in the number of employees in 2017 was reported by 64% of participants. The overall experience of doing business in Croatia was assessed as good or very good by 47% of the participants, 42% said it was average, and 11%

Two years ago, you gave eight recommendations for improvement of business climate and growth of investments in Croatia. How much has the situation changed since then? — Since its establishment 20 years ago, AmCham Croatia has been very active in policy work. We follow developments in Croatian business climate and try to be a constructive partner recommending changes based on good international practices. Our 223 member companies employing more than 70,000 people in Croatia are committed to doing business

LONG AND COMPLEX ADMINISTRATIVE PROCEDURES AND THE UNSTABLE REGULATORY FRAMEWORK UNDOUBTEDLY STAND OUT AS THE GREATEST CHALLENGES TO DOING BUSINESS

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participants described it as bad. Situation in Croatia develops positively through the years; however, that fact is not enough for Croatia to significantly advance its ranking on Doing Business list or the score of World Economic Forum. CEE region is very competitive, and many countries showed in practice that they invest focused efforts in improving their competitiveness and attractiveness for investments. In the past few years there have been positive changes in Croatia concerning tax policies: more predictability and annual planning of legislative changes, broader topics for binding tax opinions which provides additional predictability for investors, specific actions on lowering labour taxation etc. Large portion of GDP of every country is related to public procurement. Croatia introduced new law on public procurement establishing mandatory MEAT criteria (Most Economically Advantageous Tender) and we expect positive changes in evaluation of products and services with higher R&D and technology component. Positive are also Government’s plans to rationalize public sector, agencies primarily; however, there are thoughts that it would

include the closing of the Agency for Investments and Competitiveness which would be a pity since they are good first operational step for investors in Croatia.

To what extent has Croatia’s admission to EU affected the improvement of business climate and strengthening of the rule of law? — Croatia’s EU accession was a very positive step in the country’s positioning on the global investment map. It brought more transparency and stricter rule of law even though we would call for faster and more efficient judiciary. This positive claim on EU impact on Croatia is supported by the results of business climate survey we already mentioned. 78% of survey participants find the Croatian EU membership to be positive for doing business. As key advantages of membership, they highlighted free movement, the single market and access to EU funds. What is stopping US investments the most, and why are US investors still just getting to know Croatia’s potentials? — EU accession put Croatia into focus of US investors who are, as you rightly noticed, still learning about Croatia’s potentials. Good image in tourism definitely helps to become a globally recognizable destination. Business wise, Croatia is a small market with still quite high labour costs. We cannot compete on high scales, but in those sectors where educated labour force, multilingual skills or natural beauties like in tourism can add significant value. However, we should be fair and say that there are American companies with very long presence in Croatia. Coca-Cola HBC is celebrating its 50th anniversary this year and IBM has been present here in different ways since 1938. When we talk about impediments for US investors, they are the same as for others: mostly complexity of doing business here. As main limiting factors for doing business in Croatia, long and complex administrative procedures and the unstable regulatory framework undoubtedly stand out as the greatest challenges to doing business. Beside them, labour taxation and lack of suitable work force are next challenges. Concerning business expectations, for the upcoming three-year period, 79% of AmCham member companies plan to expand the

scope of their business operations in Croatia, while only 3% plan to reduce it.

How much potential does Croatia have to attract investments with high added value? How much has IBM’s arrival to Croatia incited the interest of US investors in similar investments? — Sectors with high added value are the right ones for investing in Croatia. IBM’s global innovation centre is the example of positive impact on local economy as well as Croatia’s integration into global market. They recognized one of Croatia’s key ad-

IF CROATIA WANTS TO BE A DIGITALLY AMBITIOUS COUNTRY, CURRENT ACTIVITIES IN STEM EDUCATION AND DIGITALIZATION ARE NOT ENOUGH

talents, Croatia has to become competitive as well as to educate more people in this area. Scarce human resources are a hot topic in most business discussions. Developing and retaining talents are the key goals of majority of our policy recommendations: from labour taxation, easing tax burden on employee share plans, to other potential employee benefits like allowances on worker’s health or meals etc. Our members are already educating young people for tech positions. I was impressed when CEO of one large tech company told me that their highly skilled and internationally recognized IT expert came from a previous nursing job.

vantages; we are among the European countries with high percentage of people speaking two or more foreign languages. IBM invested a lot in education and training and, from what we hear; they are satisfied with their decision where Croatia competed with well-known global investment destinations. This is also an example where different Croatian governments successfully supported potential investor in the exploration process, even though there were no special conditions for comparing with any other investor.

You recently warned that a significant number of Croatian active workforce is leaving to work on more competitive markets, while at the same time Croatia is posting an economic growth followed by increased demand for workforce. What challenges are the companies facing here? — Croatia is a small country and the trend of exploring job opportunities in other European countries puts a challenge to economic growth of any company and Croatian economy. This is a business challenge number one and the most important task for the Government is to create an environment where private sector will be globally competitive. Quick start for new entrepreneurs, low administrative and tax burdens for businesses should help enable people to leave the country only for additional education, development of skills and not for economic reasons. Import of labour became inevitable in a country with low natural growth, especially in shipbuilding, IT and tourism.

How much has Croatia focused on STEM education? Are your members interested in preparation of young experts in highly demanded technological professions? — STEM is not a preparation for the future, it is imperative already today since digital transformation requires digital skills and vision in any occupation. It has already changed the way we work; agile teams are a reality even in traditional sectors. If Croatia wants to be a digitally ambitious country, current activities in STEM education and digitalization are not enough. Hunger for STEM is global, people are mobile and to keep its most valuable

What can be done on an institutional level to speed up economic growth and improve life standard? Are there measures that can stop the outflow of quality personnel? — An ease of doing business and a talent pool are keys for country’s competitiveness. As a small country, Croatia cannot develop expertize in everything. Focus is a word we can learn from Ireland, which has chosen IT, biotech and nanotechnology as areas in which they develop their key competencies. Great cooperation between the academia, business sector and research are another key element for success.

USA 2018

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THE RISE OF TRADE

The trade exchange between Croatia and the USA currently shows very good indicators, i.e. it posted a 20% increase of Croatia’s export in the past year compared to the previous period, and an almost 100% increase compared to the previous two years

INTERVIEW

JELENA DUMIČIĆ

Senior Expert Associate, International and EU Affairs Sector, CCE

f we exclude the global crisis of 2008/2009, we can notice a mainly positive long-term trend with an increase of the total trade exchange between Croatia and the USA. Traditionally, the trade exchange between the countries primarily includes products from the electric industry, the military industry, as well as the food industry and the pharmaceutical industry. “There is always room for improvement, especially with the potential that the US market has to offer, therefore the CCE is conducting a number of activities to support Croatia’s export to distant markets,” stated Jelena Dumičić, Senior Expert Associate at the International and EU Affairs Sector, CCE. “With services of the CCE like the organization of joint participation in foreign fairs, the Entrepreneur – Exporter service, the organization of business forums and conferences and individual business talks, as well as the newly initiated financial support project entitled Vouchers - Conquer New Markets intended for SMEs, we want to encourage compa-

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nies to become exporters and to increase their export to non-traditional markets, i.e. markets outside Europe”.

The Croatian pharmaceutical industry is successfully increasing its export to the US market. How many of these high value-added products are included in Croatia’s total export to this market?

MOST PRODUCTS THAT THE CROATIAN COMPANIES EXPORT TO THE US MARKET ARE HIGH VALUEADDED PRODUCTS IN THE ELECTRIC INDUSTRY, THE MILITARY INDUSTRY, FOOD INDUSTRY AND THE PHARMACEUTICAL INDUSTRY

— It is in Croatia’s best interest to make sure that the highest possible percentage of products we export to the US market are high value-added products. Most products that the Croatian companies export to the US market are precisely these, high value-added products in the electric industry, the military industry, food industry and the pharmaceutical industry. The total increase of Croatia’s export to the USA over the past several years shows a proportional growth of the export of products from the pharmaceutical industry categories, which, for instance, accounted for around 23% of Croatia’s total export to the USA in 2015, and according to the latest information for 2017, today they account for over 65% of export.

The US market is among the top five markets for Croatian winemakers outside the EU, but a lot more needs to be done to achieve real market penetration. What can the CCE do to support this industry? — For many years, the Wine Association in the Croatian Chamber of Economy has

been organizing promotions and presentations of Croatian wines on the US market under the brand “Vina Croatia – Vina Mosaica”. Activities in the USA, during which relevant stakeholders in the US wine industry can familiarize themselves with Croatian wines, were initiated in 2011. So far, four events have been organized. This March 21 wineries presented their products in New York. We organized a wine tasting of Croatian wines, individual business talks with distributors and wine experts and various workshops. A long-term collaboration was established with the US media through reports in professional magazines. We also organized a visit of American wine experts to Croatia based on the Taste the Place strategy. If we look at the imported quantities of Croatian wine to the USA, the following US importers are the most prominent ones: Vinum USA, Blue Danube, Wine Worldwide. They found their Croatian partners precisely through these organized joint events in New York. From the beginning of the activities of the CEE in 2011 until today, export quantities have almost doubled from 64,399 exported liters of wine to 112,000 liters in 2017. However, considering the market’s potentials, there is significant room for improvement and the CCE will continue its activities to support wine export to the USA.

What are Croatian companies missing to be able to fully internationalize their operations in such demanding markets as the US market? — In order to enter any foreign market certain resources and a defined strategy are required. Export to distant, so-called third markets (markets outside EU), is an even greater challenge. Usually, large companies have the financial and human resources to enter the distant foreign markets, while SMEs often cannot rise to the challenge as easily, so they often give up. The export of products to the US market usually requires additional certifications and verifications, strict regulations and challenging customs procedures. When it comes to the export of services, there is the matter of double taxation, which currently makes it very difficult for our companies to compete in the market. The CCE communicated

this problem to the relevant institutions in Croatia. To our knowledge, they are working on signing a bilateral contract that would regulate these issues.

The Croatian Chamber of Economy organized the establishment of the Ron Brown US-Croatia Innovation Council in cooperation with the US Embassy, as part of the efforts to find new ways of economic cooperation between the USA and Croatia. How would you rate the success of this initiative so far? — The Ron Brown US-Croatia Innovation Council was envisioned as an umbrella association and a connection between theory and practice. Its aim is to serve as a platform for connecting the academic community with innovating entrepreneurs through practical workshops, seminars and similar activities to enable the mutual ex-

SINCE 2011, WHEN THE WINE ASSOCIATION IN THE CROATIAN CHAMBER OF ECONOMY STARTED ORGANIZING PROMOTIONS AND PRESENTATIONS OF CROATIAN WINES ON THE US MARKET, THE EXPORT OF WINE ALMOST DOUBLED. HOWEVER, WE CAN DO BETTER change of experience, knowledge and best practice examples as well as to enable continuous education and networking of Croatian and American entrepreneurs, innovators, the academia and other interested stakeholders. The activities organized so far have received very positive feedback. Our goal is to ensure long-term cooperation and to establish activities that will be recognized as a leading platform for innovation among entrepreneurs, students, the academic community and all other stakeholders.

At INPEX, America’s largest expo of innovation and new products, Croatian innovators have had excellent performances

for years. To what extent can they be transformed into profitable production projects? — Annually, six to eight Croatian companies on average participate in INPEX exhibitions. These companies mostly received gold and silver medals, which is an excellent indicator of the quality of Croatian innovators. Our companies usually find partners easily, but they had problems with the realization of the collaboration, because Croatian companies were unable to provide the financial assets required for a bigger volume of production necessary for the US market. Very often American officials notice that the share of foreign investments from the USA could be significantly greater if the regulations weren’t so complicated. To what extent does the CCE manage to impose on the Government the initiatives for improvement of the entire business climate coming from American and other partners? — The Croatian Chamber of Economy is the umbrella institution in Croatia, whose main task is to represent the interests of Croatian companies and to promote activities that will contribute to the development and growth of the Croatian economy. Precisely with the intention to give voice to entrepreneurs and stakeholders in our economy, for the past three years the CCE has been systematically analyzing the investment climate in Croatia. The results are regularly presented during a conference on the business climate that includes the leading stakeholders, as well as representatives of state administration. In other words, it provides a platform for communication, aside from the usual official channels. According to the latest results, progress is visible in some areas, but the dynamic in which the reforms are being carried out is not entirely in accordance with the entrepreneurs’ expectations. The situation is changing for the better, but not fast enough, so the CEE will continue to point out the key changes for improvement and work on suggestions for their implementation. In that sense, the government’s willingness to enter into dialogue with the representatives of the corporate sector is encouraging, so the CEE representatives are maintaining regular contact with relevant representatives in different ministry departments on all levels of the decision-making process.

USA 2018

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AMERICAN CHAMBER OF COMMERCE IN CROATIA

MANY MILES ARE AHEAD OF US On its landmark 20th birthday, AmCham Croatia is still a young organization when compared to the 105-year-old U.S. Chamber. We are committed to fostering ties between Croatia and the United States through trade and investment as well as promoting regional trade and pan-European cooperation

merican Chamber of Commerce in Croatia is an independent, non-proďŹ t, non-governmental business organization with over 220 members (major U.S., Croatian and international companies), which employ 70.000 persons in Croatia. AmCham Croatia is part of the biggest global network consisting of 117 national AmChams around the globe and an active member of AmChams in Europe, association of 44 European AmChams. European AmChams cooperate closely and provide support to their members in business internationalization. AmCham Croatia is also a fully accredited member of the U.S. Chamber of Commerce, the world's largest and most influential business organization. Based in Washington D.C., it represents the interests of more than 3 million businesses. AmCham Croatia provides its members a forum for developing business oppor-

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tunities through high level networking, promotes high standards of business practices and engages in policy advocacy on business issues affecting its membership. Organization is committed to fostering ties between Croatia and the United States through trade and investment as well as promoting regional trade and pan-European cooperation. The focus is also on

THROUGH THE PAST YEAR, AMCHAM CROATIA COMMUNITY HAS GROWN TO OVER 220 COMPANIES COMMITTED TO BOTH THE CROATIAN MARKET AND GLOBAL BUSINESS

furthering the competitiveness of Croatia as an investment location and continual development of the business environment. Through its committees and other advocacy efforts, AmCham Croatia continuously works on strengthening partnership between the business community and key decision makers and stakeholders within the government, in order to address issues facing its member companies. As one of Croatiaâ&#x20AC;&#x2122;s leading business associations, AmCham is actively addressing vital issues and influencing Croatian economy and society in general. It brings together the strongest companies in the country, acts as a reliable partner to the government, initiating numerous positive and significant changes. Through the past year, AmCham Croatia community has grown to over 220 companies committed to both the Croatian market and global business. Last

year AmCham organized a wide variety of events and other social gatherings, directing attention to topics relevant to the business community. With 62 events, 65 committee meetings, 33 policy meetings with government representatives and 13 position papers, AmCham Croatia has become a vibrant place for exchanging views and well-substantiated proposals with policy makers. And this is just as it should be – with the 20th anniversary approaching this December. In 2018 AmCham Croatia celebrates 20 years of operations is Croatia. 20 years of developing business opportunities and contributing to a strong and competitive business environment in Croatia and growing transatlantic cooperation. Following the tradition in other European countries, 20 companies and individuals gathered in December 1998 and founded AmCham in Croatia. Since then, AmCham has been a meeting place of leading international companies. American companies doing business in Croatia, international companies coming from more than 20 countries and Croatian companies engaged in international trade and investments, contribute to more competitive Croatia. As an advocate for a more competitive Croatia, AmCham Croatia has launched Boardroom Discussions program which focuses on digital transformation. Nowadays, every sector faces disruption to a certain extent, and digitalization goes far beyond technology. AmCham Croatia promotes digitalization towards the public sector, but also equally strives to make its members ready for any challenges that may arise. Through this program, AmCham Croatia provides insight into opportunities and traps of digitalization, its impact on labor, business models and corporate organizations and strategies. The program is

AMCHAM CROATIA PROVIDES ITS MEMBERS A FORUM FOR DEVELOPING BUSINESS OPPORTUNITIES THROUGH HIGH LEVEL NETWORKING, PROMOTES HIGH STANDARDS OF BUSINESS PRACTICES AND ENGAGES IN POLICY ADVOCACY ON BUSINESS ISSUES AFFECTING ITS MEMBERSHIP designed for companies’ board members, to support their growth in 4.0 industries. As the grand finale of the “Boardroom Discussions: Digital Transformation from CEO Perspective” program, AmCham organized a business delegation to New York and San Francisco/Silicon Valley for the Management Board members

of AmCham member companies to see digital transformation at its source. The business delegation took place from June 11-15, 2018 with the goal to learn from digital champions, traditional companies in transformation, as well as young disruptive companies. When driving your own project, it is always useful to look at how other companies approached the challenge. The delegation offered a closer look at some of the most exciting and successful transformation processes in various industries. The delegation visited New York (New York Stock Exchange, Bank of America, NASDAQ, The Boston Consulting Group and IBM Watson Center), Silicon Valley (Google and Fortinet) and San Francisco (Microsoft, Volans-i, UBER and Lunar/ McKinsey & Company). Being part of the world’s largest business network, offers many opportunities for members. In 2017, AmCham Croatia launched the Launchpad USA program in cooperation with Finnish colleagues, to support Croatian companies during their first steps onto the US market, since many market challenges will be made easier with the right support.

WE WANT CROATIA TO STAND OUT IN THE COMPETITIVE RACE Making Croatia a truly business-friendly ecosystem, dedicated to attracting investments and becoming globally competitive, is something that everyone wishes for Croatia. AmCham Croatia members and partners are committed to contributing to this ultimate goal by sharing the best international practices and solutions, ones which could make Croatia stand out in the competitive race. As an organization, AmCham believes in a bottom-up principle – the initiatives are identified from daily obstacles faced by companies, and feasible solutions are proposed, which have the power to change the system and not just serve

as one-time solution. In the past few years, AmCham has matured into a solution-focused organization which is always credible and resourceful, creating value not just for members, but for the Croatian economy and society in general. To properly mark the landmark 20th birthday, the organization needs to prove that it can continue increasing the support provided to member organizations. AmCham Croatia is still a young organization when compared to the 105-year-old U.S. Chamber, but nonetheless it looks forward to showing what has been accomplished throughout the years.

USA 2018

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CORPORATE

Do you Want Your Planet or Plastic? Our goal is to reduce the amount of disposable plastic that ends in our oceans and seas while achieving measurable results. This is a multi-year project since we want to change the way people think and behave. Croatian citizens will have the opportunity to get involved in the campaigns launched by National Geographic

PETRA LEDINEK Marketing Manager at FOX Networks Group

ational Geographic has recently presented its new largescale project called 'Planet or Plastic?' through which this natural word brand is actively engaged in seeking solutions to the burning global issue of the huge amounts of plastic found in seas and oceans. The campaign had its global presentation in May. It was launched in the United States and was featured on the front page of National Geographic magazine, while the National Geographic worldwide TV channel is in charge of communicating the project. We are talking to Petra Ledinek, Marketing Manager at FOX Networks Group which runs the National Geographic TV channel, about the details of this worldwide project and how it is implemented in Croatia.l „Our goal is to reduce the amount of

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disposable plastic that ends in our oceans and seas while achieving measurable results. This is a multi-year project since we want to change the way people think and behave, and that takes time,“ says Petra Ledinek and adds: “We have raised a

FOCUS

WE ARE GOING TO FOCUS ON ELIMINATING THE MOST COMMONLY USED DISPOSABLE PLASTIC PRODUCTS SUCH AS BAGS, BOTTLES, STRAW OR COTTON SWABS AND EDUCATING A WIDER POPULATION ABOUT VIABLE ALTERNATIVES

very simple question in front of the whole world and we have a very simple dilemma for consumers – do you want your planet or plastic?" This is a problem that is not as old as previously thought, as the journalists and researchers of National Geographic have discovered. Almost 50 per cent of the plastic we have produced as mankind has emerged in the last 15 years. 70 years ago, in 1950, 2.3 million tonnes of plastic were produced in the world, 162 million tonnes were produced in 1993 and 448 million in 2015 - the growth is exponential! And although plastic revolutionized our way of life, disposable plastics such as plastic bottles, bags or straws produce millions of tons of rubbish that end in our oceans and affect marine ecosystems. "As a global brand with a long history

of scientific discoveries and research, National Geographic is in the unique position to tackle this crisis with something that it excells in - storytelling and knowledge," notes Ledinek. Undoubtedly, National Geographic does that with success since the first results have shown that, since the launch in June, the Planet or Plastic initiative has already generated 34 million impressions on social media worldwide. "This is only the beginning of our initiatives, and in the next period, we will financially help large-scale scientific research and propose concrete solutions. One of the steps is to find among our partners those who think and recognize this problem in a similar fashion, and to change the corporate code of conduct together," says Ledinek. Above all, with this initiative, National Geographic aims at educating consumers about a huge problem, and raise awareness that this is, indeed, an environmental crisis. Ledinek adds that, on the other hand, they also want to make a contribution to solving the crisis. "We consulted experts, and studied the problem and the initiatives on this issue. We are confident that our consumer-oriented communication and scientific endeavours will be complementary and fill the holes in the knowledge, whether we are talkinig about scientific communities or the general public," says Ledinek and notes: "If I tell you that about nine million tonnes of plastic waste will end up in oceans each year, that more than 40% of the produced plastic is used only once, that Americans alone use millions of plastic straws every day and that 11 billion plastic bottles are sold in the United States in the space of one year, I think it is clear how big this problem is on a global level." All of this has resulted in shocking discoveries about traces of microplastics being found in as many as 114 aquatic species, half of which we eat. It has been proven that about 700 marine species ate or were in contact with plastics, and that, if we fail do change something, there will be more plastic waste than fish in the oceans by 2050. As a medium and a communication platform, the Croatian National Geographic participates in the global campaign as part of a comprehensive project that will address its viewers and the general public.

CONTRIBUTION

DURING THE ENTIRE DURATION OF THE PROJECT, THE CROATIAN NATIONAL GEOGRAPHIC WILL ORGANIZE AND ENCOURAGE SMALLERSCALE LOCAL CAMPAIGNS AND INITIATIVES IN CROATIA THAT WILL CONTRIBUTE TO SOLVING THIS ENVIRONMENTAL PROBLEM In addition, during the entire duration of the project, we will organize and encourage smaller-scale local campaigns and initiatives in Croatia that will contribute to solving this problem in a concrete way. "In cooperation with our business partners, who have already recognized or are about to recognize the importance of this National Geographic initiative, we are planning to organize removal of plastic

debris in one location on our coastline,“ says Ledinek. Ledinek also talks about what will be the first step towards success for the campaign launchers, both globally and locally: „Specifically, we are going to focus on eliminating the most commonly used disposable plastic products such as bags, bottles, straws or cotton swabs and we are going to find simple replacements for these products. So, part of our initial effort is to educate a wider population about viable alternatives, but also to inform how to simply 'navigate' through the recycling process. This is certainly just the beginning and our first steps. We will be judged on how successful we have been in changing community habits, from the oldest to the young and the children.“ The real effect will be if consumers make small changes in their own behaviour - if they choose paper instead of plastic bags or bring their own bags when shopping, or if they start using water bottles that can be used more than once, or if they refuse to use plastic straws in restaurants and cafes.

USA 2018

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T STRONG ECONOMY

ONCE AGAIN

The world's leader

he American economy might have been surpassed in 2014 by China in terms of GDP but it is far from over. The economy of the United States is resilient and one of the best in the world, and in many aspects it is the worldleading economy. After many changes introduced by American President Donald Trump, like import and export tariffs (being introduced by others in turn) many asked themselves where the US economy is going now. But its strength and size, the entrepreneurship of its citizens and the position of the holder of the globally most current money makes it resilient.

THE FIGURES The economy of the United States is a highly developed mixed economy which

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USA 2018

is the world's largest economy by nominal GDP and the second-largest by purchasing power parity (PPP), being surpassed by China in 2014 and having held the No. 1 position of over 50 years prior to that. It also has the world's seventh-highest per capita GDP (nominal) and the eleventh-highest per capita GDP (PPP) in 2016 and therefore it is the rightful member of the G7 Group. The US has a highly diversified, worldleading industrial sector and what is most important nowadays is that it is also a high-technology innovator with the second-largest industrial output in the world. Many of the modern technological giants, like Google, Microsoft, Apple, Facebook â&#x20AC;&#x201C; are American companies. The innovations of the IT sector came from either Seattle or from the world famous Silicon

Valley in California, which has become so legendary that it almost became the common word for IT centre. The U.S. dollar is the currency most used in international transactions and is the world's foremost reserve currency (62% although recently, from 2002 on, a bit replaced by euro (20%) and to lesser extent some other currencies, like Canadian, Australian dollar and Yuan, as the 3 newest “players”), backed by its science and technology, its military, the full faith of the U.S. Government to reimburse its debts, its central role in a range of international institutions since World War II and, what is the most important, the Petrodollar system (which is also under a bit of competition threat by Petro-yuan introduction). Dollar is so powerful that several countries use it as their official currency, like Panama or Ecuador, and in many others, it is a de facto currency. Its largest trading partners are China, Canada, Mexico, Japan, Germany, South Korea, United Kingdom, France, India, and Taiwan. It is the member NAFTA, together with Canada and Mexico, but President Trump is heavily contesting this agreement, together with cooperation with the two main partners, China and the EU, trying to improve the American position in every deal, considering the American position disadvantageous. The nation's economy is fuelled by abundant natural resources, a well-developed infrastructure, and high productivity. It has the second-highest total-estimated value of natural resources, valued at $45 trillion in 2016. Americans have the highest average household and employee income among OECD nations. The main problem is the wealth inequality, which is

nation as well as its second-largest manufacturer, representing a fifth of the global manufacturing output. U.S. total trade amounted to $4.92 trillion in 2016. Of the world's 500 largest companies, 134 are headquartered in the US.

FINANCIAL MARKETS AND FDI

AFTER A TERRIBLE CRASH IN 2008 AND 2009 WHICH SHOOK THE WORLD, AMERICA IS ONCE AGAIN DOING WELL. ITS ECONOMY SEEMS TO BE BLOOMING ONCE AGAIN considerable, thus threatening the “American dream” which fuelled the economy for decades, as well as undermining the social movement. The United States has held the world's largest national economy (not including colonial empires) since at least the 1890s. It is the world's third largest producer of oil and natural gas, but some facts and trends hint that it will soon become the largest oil producer once again. In 2016, it was the world's largest trading

The U.S. has one of the largest and most influential financial markets in the world. The New York Stock Exchange is by far the world's largest stock exchange by market capitalization. FDI made in the U.S. total almost $2.4 trillion, and this makes America a very desirable place for investments and profit, while American investments in foreign countries total to over $3.3 trillion. The U.S. economy is ranked first in international ranking on venture capital and Global Research and Development funding. The U.S. has the world's largest consumer market, with household final consumption expenditure five times larger than that of Japan. The nation's labour market has attracted immigrants from all over the world and it is among the biggest in the world with the unemployment hitting the lowest levels under President Trump, which might be attributed to his reforms of easing doing business. The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others. Tourism brings millions of tourists and millions of dollars to the country. After a terrible crash in 2008 and 2009 which shook the world, America is once again doing well. Its economy seems to be blooming once again, and unless something grave happens, we should not worry about its health.

STOCK

THE U.S. HAS ONE OF THE LARGEST AND MOST INFLUENTIAL FINANCIAL MARKETS IN THE WORLD. THE NEW YORK STOCK EXCHANGE IS BY FAR THE WORLD'S LARGEST STOCK EXCHANGE BY MARKET CAPITALIZATION. USA 2018

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ECONOMIC COOPERATION

FRIENDS WITH C PERSPECTIVE Time to grow!

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USA 2018

roatia and USAS are countries that are friends in several levels: they are NATO members and are dedicated to construction of western democracy and market economy. And yet, perspectives for cooperation in the field of economy are opening just now, since previous results are below possibilities and below achievable results After our country joined the EU in 2013, USA and Croatia got to know each other better, but there is room for progress.

For example, the new US Ambassador to Croatia, Robert Kohorst, announced that one of his priorities will be to reach a double taxation agreement between the two countries – this is something that’s interfering with trade and the business have been familiar with this for a long time, while ordinary citizens not so much. Let us remind, The American Chamber of Commerce in Croatia (AmCham) presented a document to the US government requesting bilateral negotiations on a double taxation treaty between the United States and Croatia, AmCham reported on Monday. Also, the absence of this treaty reduces transparency in doing business, puts a considerable tax and administrative burden on Croatian companies wishing to do business in the US and vice versa, and reduces the transfer of knowledge between the two countries. It also puts Croatia at a disadvantage in relation to other EU member states which already have similar treaties with the US in place, so it is one of the urgent matters to be resolved. AmCham is one of the leaders in facilitating business between the two countries.

POSSIBILITIES AND PROSPECTS One of the best possible bridges for cooperation is Croatian diaspora, which can serve as a chain between the two countries even in economic relations. Croatian diaspora in the US is one of the largest in the world with an estimate of more than 1.2 million members. Most of the Croats live in Chicago (~150,000), New York City, New Jersey and Connecticut (~80,000), St. Louis (~40,000), San Pedro (~35,000), Detroit (~7,000) and San Jose (~5,000).

The National Federation of Croatian Americans is the main organization that brings together Croats in the US. Also, the military cooperation is among the leading ones between the two countries. Economic relations between Croatia and US are very good. In 2013, Croatia exported $327,992.000 worth goods to the US and imported from it $221,794.000 worth goods. The US are the most important Croatian trade partner in North America, in front of Cayman Islands and Canada, and eighth most important in the world.

THE US ARE THE MOST IMPORTANT CROATIAN TRADE PARTNER IN NORTH AMERICA AND EIGHTH MOST IMPORTANT IN THE WORLD In 2013, 220,043 Americans, who have made 548,727 overnight stays, came to Croatia on holiday. The United States and Croatia have a bilateral investment treaty and investment protection agreement. At the same time, if we compare the number of tourists, 451,947 of them came from the USA in 2017, compared to 337,464 in 2016. Some factors that can attract the tourists and investors are the screen popularity of Croatia, especially after featuring Dubrovnik in the Game of Thrones, and the island of Vis in Mamma Mia 2. We can expect the investment in hotels quite probably.

In addition, since 1998, United States has given more than $27 million in humanitarian assistance to Croatia. The US also has provided additional financial assistance to Croatia through the South East Europe Enterprise Development (SEED) program to facilitate democratization and restructuring of Croatia's financial sector, largely through programs managed by USAID.

WHAT IS DONE AND WHAT IS PLANNED? When we talk about current cooperation, we must bear in mind the major investment of KKR Company in Brodosplit, where new expedition ship intended for polar regions will be manufactured. KKR is also in the process of acquisition of Nova TV, and there is a chance that other US companies will follow in KKR’s footsteps, and that the Embassy will work on achieving that. Also, the Americans have wanted to build a gas terminal in Croatia for a long time, and the importance of LPG terminal construction in Krk is huge for Europe, USA and Croatia itself, bearing in mind that USA advocates for Europe’s liberation from Russian dependence and for diversification of gas paths. In an interview given to the Jutarnji daily a few months ago, US Ambassador stated: “USA is finding increasingly more gas, and Krk is not a large source of income due to its small volume compared to this quantity. Our interest is regional stability, it is always good to have more sources of supply in order to set the best price and availability of gas. We are interested in this project because of its strategic value and bringing peace and wellbeing to the region”.

HEADLINE

SOME FACTORS THAT CAN ATTRACT THE TOURISTS AND INVESTORS ARE THE SCREEN POPULARITY OF CROATIA, ESPECIALLY AFTER FEATURING DUBROVNIK IN THE GAME OF THRONES, AND THE ISLAND OF VIS IN MAMMA MIA USA 2018

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SPIRIT

LAND OF THE FREE Home of the Brave

merica emerged as a sum of 13 rebellious colonies many years ago, in July, and had identified itself as the emissary of a completely different lifestyle than the European ones at that time. Of course, America existed even before 4th July 1776, but that date is remembered in the worldâ&#x20AC;&#x2122;s collective memory as the date when some of the people in the colonies decided to take the matter in their own hands and turn the existing political regime upside down. Namely, up until then, the general attitude was that the people in colonies were obliged to be happy because they were protected by the homeland and that although the homeland laws were sometimes unjust, they had to follow them. And then, the wealthy and diligent settlers in the 13 colonies decided that their voice had to be heard and rebelled against the

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introduction of various unjust taxes and the centralization of trade. They wanted colonies to be presented in the parliament in London, just like England, Scotland and Wales. Rebellion ensued when none of their requests were met. The gist of what happened after that could be summed up in one word â&#x20AC;&#x201C; individualism, meaning that no-one else can decide how you should live. Even today,

THE AMERICAN SPIRIT ENCOURAGES PRIVATE INITIATIVES AND LAUNCH OF BUSINESS, WHILE THE STATE TRIES TO MINIMIZE ITS INFLUENCE

this individualism is reflected in the fact that each US state is responsible for passing the majority of their laws and if you do not like the lifestyle in one state, you can simply move to another state, depending on your preferences, i.e. whether you are leaning towards liberal or conservative. The general notion is that people in Alaska are the biggest libertarians, least fond of someone else deciding how they shoud live and not prone to meddling into other people's business. The American spirit from 1776 also entails the right to express your own opinions, a very important segment of the American culture, the aspiration for independence that is reflected in Americans owning a home rather than an apartment, and in love of cars, which are more popular than public transport. Sometimes this results in a negative backlash, and a lack of strong public trans-

port infrastructure that can be found in Canada, Asia or Europe, or that the right to carry weapons is misunderstood in the rest of the world. But, the Americans are flexible, and when they realize they are lagging behind, they put in an effort to catch up. A lot of ink has been used to explain that the American culture of self-transport has led to development of entrepreneurship and the spirit of entrepreneurship, because a person who decides where to go and who determines their own destiny is more prone to starting a business. Indeed, the American spirit encourages private initiatives and launch of business. The state tries to minimize its influence, and from the opposition to Obamacare, we can deduce that many people feel that it is your own responsibiliy to take care of your health. But, let's go back to history. The American spirit quickly harvested its fruits â&#x20AC;&#x201C; spurred on by the American Revolution, the French overthrew their king and proclaimed the republic in 1789, thus becoming another

model for the republicans all over the world. Haiti has become the first nation of black people to declare independence, showing that not only colonists from the homeland can start a revolution for freedom and

UNLIKE EUROPE AND OUR REGION, THE UNITED STATES AND CANADA ARE BASED ON THE DESIRE TO HAVE A CERTAIN WAY OF LIFE, WHICH IS DIFFERENT IN THESE TWO COUNTRIES constitutionality. Soon, nearly all of America, south of Canada, was independent from the European powers, countries started imitating the American Constitution and calling for self-representation.

America has become an example to others that things should not be done along ethnic principles, but rather the principle of citizenship. When someone wonders, and there are people who still do wonder about this, why Canada and the USA are two different countries when they are on the same continent, share the same language and are similar ethnically-wise, that shows that these people don't understand what America or Canada are all about. Unlike Europe and our region, countries do not have to originate from the ethnic principle, but are based on the desire to have a certain way of life, which is different in these two countries. Americans are often proud of the slogan or the verses "The land of the free, home of the brave", and they have all the reason to. They are one of the first to stand up for their freedom, have the courage to conquer the vastness of this huge country and bring it to the standard that is considered one of the best in the world.

FLEXIBLE

AMERICANS ARE FLEXIBLE, AND WHEN THEY REALIZE THEY ARE LAGGING BEHIND, THEY PUT IN AN EFFORT TO CATCH UP USA 2018

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HISTORY

EX PLURIBUS UNUM Many colonists, many cultures

SA has an interesting history, one that’s not so one-dimensional as it is usually considered. And of course, it came from different directions. Let’s take a look at the interesting history of the founding of the United States. Most people know about the colonists who settled Virginia from England, or about Massachusetts Bay Colony, which was regulated literally as a puritan state, as a place where the Puritans were “taken

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LACK OF WOMEN WAS ALSO VERY NOTICEABLE, SO INTERMARRIAGES BETWEEN THE FRENCH AND THE INDIANS WERE FREQUENT, GIVING RISE TO THE MÉTIS PEOPLE

away” to the New World so they don’t get into a conflict with the Anglicans in the parent country, but it is often forgotten that some of the most important places in the US were created by some other nations, not the British. And yes, we are not talking about Alaska the Russians sold to the Americans. There are other interesting layers there! Look at the French. They not only founded Quebec and today’s francophone areas of Canada, but they are the creators

of a large part of modern USA. Cities that the French founded are Detroit, Green Bay, St. Louis, Cape Girardeau, Mobile, Biloxi, Baton Rouge and New Orleans. It is interesting that the French had excellent relationships with the Indians, and that their part of the US, known also as the New France, was far less colonized by the white than the English part. Lack of women was also very noticeable, so intermarriages between the French and the Indians were frequent, giving rise to the Métis people. Relations between the French and Indians were usually peaceful. As the 19th-century historian Francis Parkman stated: "Spanish civilization crushed the Indians; English civilization scorned and neglected them; French civilization embraced and cherished them". One part, the northern one, was included in the British Empire with the fall of the French Canada in 1759, with cities like Detroit and Des Moines, and Napoleon sold Louisiana in 1803. It’s interesting that little over 2 million US citizens speaks French as their mother tongue at home, and that at the moment of its sale, Louisiana was the size of the rest of the US which purchased it. Even today, French dialects with very interesting qualities are spoken in some parts of the US that were part of the French colonial empire. During that time, the Spaniards had a very fixed power and colonies in the Southwest, which is very interesting, and while the English were getting off their first boats in Virginia, the Spaniards were already building governors’ palaces in New Mexico. Santa Fe de Nuevo Mexico was a colony that had its own capital in the town of San Juan de los Caballeros, today’s Española, and had barely 11,000 residents, already in 1598. The South West, together with California and Arizona, and millions of Span-

ish-speaking residents, would become a part of the US in the 19th century, and Texas would join them later on, in the famous Texas Revolution. Spanish influence and language are still very strong in these states. Some less known nations that colonized USA and left traces will surprise you – for example the Swedes, who founded their New Sweden. New Sweden (Swedish: Nya Sverige) was a Swedish colony along

THE SPANIARDS HAD A VERY FIXED POWER AND COLONIES IN THE SOUTHWEST, WHICH IS VERY INTERESTING, AND WHILE THE ENGLISH WERE GETTING OFF THEIR FIRST BOATS IN VIRGINIA, THE SPANIARDS WERE ALREADY BUILDING GOVERNORS’ PALACES IN NEW MEXICO the lower reaches of the Delaware River in North America from 1638 to 1655. Its capital was Wilmington, Delaware. Later on they would be conquered by the Dutch and include their territory into New Netherland. New Netherland (Dutch: Nieuw Nederland) was a 17th-century colony of the Dutch Republic that was located on the east coast of North America. Yes, one of the most spectacular cities in the world, if not the

most spectacular one, is New Amsterdam, which was founded by the Dutch. New York. And the Dutch colonists are among the most respected and wealthiest to this day. Stuyvesant, Roosevelt, Van Buren – to mention a few. It is considered that New York’s tolerance originates from that period – the concept of tolerance was the mainstay of the province's Dutch mother country. They say that New York was open like Amsterdam. The spirit of New Yorkers doesn’t surprise us now, does it? Let’s not mention Santa Claus! The tradition of Santa Claus is thought to have developed from a gift-giving celebration of the feast of Saint Nicholas on December 6 each year by the settlers of New Netherland. The Dutch Sinterklaas was Americanized into "Santa Claus", a name first used in the American press in 1773. Yes, it wasn’t a Spanish saint, but a Dutch saint. This explains the absence of this term in other Anglophonic countries, where this character is much more often called Father Christmas. And to make things interesting, here come the Danish, who founded the Danish West Indies, today’s US Virgin Islands. It is interesting that, even though it sounds strange today to sell a Caribbean paradise, tourism wasn’t very developed in the past. The Danish couldn’t wait to get rid of the “ballast”. In 1852 the Danish parliament first debated the sale of the increasingly unprofitable colony. Denmark tried several times to sell or exchange the Danish West Indies in the late 19th and early 20th centuries: to the United States and to the German Empire respectively. The islands were eventually sold for 25 million dollars to the United States, which took over the administration on 31 March 1917. Today, this is an unincorporated territory.

FRENCH

IT’S INTERESTING THAT LITTLE OVER 2 MILLION US CITIZENS SPEAKS FRENCH AS THEIR MOTHER TONGUE AT HOME USA 2018

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T THE TOURISM

WORLD OF ITS OWN Everything in one country!

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USA 2018

he United States is a world of its own. You can find almost anything here, from dense forests to the vast deserts, from seaside to glaciers, from urban crazy-houses to peaceful landscapes. It is a great place for tourists and many of the views are generally inside the collective consciousness of the world, because of the films and series we all know and love. As one of the largest and most diverse countries in the world, The

United States boast an amazing amount of tourist destinations ranging from the skyscrapers of New York and Chicago, the natural wonders of Yellowstone and Alaska to the sunny beaches of California, Florida and Hawaii. Tourism in the United States is a large branch of the economy, which provides services to millions of tourists each year from abroad, as well as from the US itself. Tourists come to the USA to look at cities, nature, historical monuments, as well as to

visit various attractions and places of entertainment. The same thing is interesting for Americans themselves, who, among other things, often visit recreation areas.

TRADITION AND FIGURES In the late 19th, early 20th century, the United States experienced a rapid growth in the so-called urban tourism. By the 1850s, tourism in the United States was entrenched as a cultural activity and industry. By the 1890s, all major US cities (New York, Chicago, Boston, Philadelphia, Washington and San Francisco) had attracted a huge number of tourists. In connection with the widespread use of cars at the beginning of the 20th century, travel became more accessible. Another round in the development of tourism in the United States was the spread of travel by airplanes in 1945-1969 periods. By 2007, the number of tourists exceeded 56 million people, who spent a total of $122.7 billion. Excursion tourism is extremely developed in the US, where more than 50 million travellers come to visit annually. The top three leaders in receiving foreign tourists among the countries of the Americas are the USA, Mexico and Brazil. The United States has a huge recreational potential, as well as a large number of attractions and museums. Suffice it to say that four out of ten most popular museums in the world are in the United States. These are the Metropolitan Museum in New York, the Getty Museum in Los Angeles, the Art Institute in Chicago and the Washington National Gallery. A specific direction when it comes to cognitive travel in America are the ethnographic excursions. They include visits to places of traditional residence of

EUROPEANS ARE USUALLY FASCINATED BY DESSERTS, SO FILM DIRECTORS USUALLY MAKE SOMETHING OF THE KIND THERE: BAGHDAD CAFE, ARIZONA DREAM, PARIS, TEXAS... THE DESSERTS ARE REALLY STUNNING! the Indians, the ancient cities of the Inca, Aztec and Mayan empires. The United Nations World Tourism Organization (UNWTO) published statistics on the international tourist flow in 2017, in which the United States occupied third place with 75.9 million visitors, after Spain (81.8 million) and France (86.9 million).

ATTRACTIONS There are many attractions in the United States, but let us name a few.

RUSHMORE

PERHAPS THE MOST UNMISTAKABLY AMERICAN LANDMARK IS MOUNT RUSHMORE, A NATIONAL MEMORIAL LOCATED IN SOUTH DAKOTA, CONTAINING THE HEADS OF 4 AMERICAN PRESIDENT USA 2018

Focus

Perhaps the most unmistakably American landmark is Mount Rushmore, a national memorial located in South Dakota, containing the heads of 4 American presidents. The most popular beach is in California, and it is Venice Beach. Its canals and beaches are spectacular, but the biggest hit is undeniably the Venice Beach Boardwalk. This is a truly entertaining spot where street performers juggle, dance, sculpt and sing for passers-by. If you prefer ancient traces of civilisation, your choice is certainly Mesa Verde. If you like rocky formations that can take your breath away you should generally hit the Southwest: Bryce Canyon National Park is a breathtaking display of rock formations. Technically, Bryce Canyon isnâ&#x20AC;&#x2122;t a canyon, but a collection of natural amphitheatres. The Monument Valley is yet another option, as well as the Grand Canyon or The Wave. Of course, New York City is the highlight of city tourism, but San Francisco (resembling Lisbon according to some), Miami,

Focus

USA 2018

NEW YORK CITY IS THE HIGHLIGHT OF CITY TOURISM, BUT SAN FRANCISCO, MIAMI, LAS VEGAS OR MORE EXOTIC DESTINATIONS LIKE SAVANNAH, GEORGIA OR THE GRUNGE AND HIGHTECH CAPITAL, SEATTLE, COULD BE THE MAIN RIVALS

Las Vegas or more exotic destinations like Savannah, Georgia or the grunge and hightech capital, Seattle, could be the main rivals. No list is complete without Chicago and its streets and peers, Los Angeles, or Niagara Falls (you don't have to imitate the cartoons with a barrel, obviously). Yellowstone is the heaven for the nature lovers and children simply adore Disney Worlds and Studios. Washington DC has a unique feature of resembling European cities for not having skyscrapers, and Florida and Hawaii are simply adored by beach lovers. Those who like sandy dunes and more tamed and relaxed beaches will hit the New England coast and nothing can be complete without the Big Ease, New Orleans and its French Quarters. Europeans are usually fascinated by desserts, so film directors usually make something of the kind there: Baghdad Cafe, Arizona Dream, Paris, Texas... The desserts are really stunning! If you haven't been to the States, maybe you should reconsider it now!

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