FRIENDS WITH

FRIENDS WITH PERSPECTIVE

Time to grow!

Croatia 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 possibili ties 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 govern ment 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 compa nies 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 coun tries 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 Amer icans is the main organization that brings together Croats in the US. Also, the mili tary 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 impor tant 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 agree ment. 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 human itarian 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 restruc turing 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 Brodo split, 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 foot steps, 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 diversi fication 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