Croatian exporters worry about impact of US-EU trade deal

Following the new US-EU trade agreement imposing a 15 percent tariff on nearly all European exports, Croatia’s government commission on exports to the US met Wednesday to assess the potential impact. 

Croatian exports to the US have seen significant growth in recent years, nearly doubling last year to almost 900 million euros. While the agreed tariff is lower than initially expected, it still poses a serious challenge to the competitiveness of Croatian exporters.

Neb Chupin, the owner of the Dida Boža brand, which makes jams, jellies, and other condiments, is relieved the tariff ended up being lower than was initially threatened.

"We export 85 percent of what we make to America, that's about 6 million jars a year. The outcome of this deal matters a great deal to us. There was talk of tariffs of 30 to 50 percent, so I'm happy with 15 percent,” Chupin told HRT.

Prime Minister Andre Plenković, speaking at a cabinet meeting on Wednesday, said the deal still needed to be reviewed in detail.

“This agreement is a move in the right direction, however, we will have to analyze all its consequences once all the details are known and elaborated,” said Plenković.

Croatian drug companies and car parts makers are worried this will have a huge impact on their businesses and are seeking the government’s help.

“Pharmaceuticals account for around thirty percent of our total exports, but there is also the arms industry, and we expect our government to step up there, and also for our auto parts companies that work with big European automakers, who will certainly feel the negative consequences of these tariffs,” said Irena Weber, the head of the Eployers’ Association.