Negotiations between Yugoslavia and the European Economic Community over a trade agreement began in Brussels on Monday (13 February).
GV: EEC Commission headquarters.
SV ZOOM IN: EEC representative Pierre Duchateau. (right) enters and shakes hands with Milovan Markovic, head of Yugoslav delegation. (2 SHOTS)
SV: Yugoslav delegates seated at table.
SB ZOOM IN: M??? Duchateau.
SV ZOOM OUT: Mr. Markovic, with delegation, seated at table.
GV: Delegates conferring. (2 SHOTS)
Because of their heavy volume of two-way trade, Yugoslavia's big deficit with the Common Market has been its biggest trading worry, though it also has big deficits with such industrial countries as Japan and Australia. While its foreign exchange reserves are solid, Yugoslavia wants the new arrangement to be broader, covering not only trade, but issues such as industrial, technical and financial co-operation, and migrant workers.
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Background: Negotiations between Yugoslavia and the European Economic Community over a trade agreement began in Brussels on Monday (13 February).
SYNOPSIS: The talks are being held in the EEC Commission's headquarters. Monsieur Pierre Duchateau, on the right, is heading the Common Market's delegation. He is their director general of External Affairs. He greeted Mr. Milovan Markovic, head of the Yugoslavian delegation.
Both sides were to negotiate a new five-year agreement on trade and economic co-operation. Officials say this is intended to strengthen their relations. It will replace an existing five-year trade agreement that is due to expire later this year.
The Western industrialised countries are Yugoslavia's main trading partners and the EEC is its most important export market. But Yugoslavia's trade balance with the Community is not healthy. Its trade deficit of almost three and a half billion dollars for the first nine months of 1977 was twice the deficit for the same period of the previous year.
This is largely because imports are high and Yugoslavia's export trade relies heavily on basic and agricultural products.