State Secretary of the Ministry of Finance, Stipe Župan, stated in Parliament on Wednesday that the ministry is already conducting analyses on how U.S. tariffs will impact the Croatian economy, reports HINA.
"The Ministry of Finance has already initiated analyses of the potential direct and indirect effects. The direct effects relate to goods that Croatia exports to the U.S., primarily in the pharmaceutical and defense industries," said Župan in response to a question from Boris Lalovac (SDP) regarding the impact of the trade war between the U.S. and the EU on Croatia.
During the discussion on amendments to the Law on the Implementation of EU Customs Legislation, Lalovac said he could not understand the introduction of U.S. tariffs on the European Union. "It feels like we are going back a hundred years to tariff wars and protectionist measures that led to a decline in living standards, inflation, and were one of the causes of World War II," he said, calling such moves misguided and pointless.
Although Croatia does not have many instruments at its disposal, Lalovac added that he would like the government to explore measures to protect certain industries that might be affected.
The amendments to the Law on the Implementation of EU Customs Legislation, which were supported by MPs, are being introduced to implement the EU regulation on establishing a unified digital customs interface.
The goal is to simplify and digitalize the exchange and verification of various permits, certificates, and other documents required for customs purposes, which will speed up processes, reduce bureaucracy, and lower the time and costs for businesses in fulfilling customs formalities, Župan explained.
The implementation of digital solutions will be introduced gradually throughout the year to allow businesses to adapt to the new systems, giving them time to transition, the state secretary responded to a question from Ante Babić (HDZ).
The amendments will also improve the control of customs seals, reducing opportunities for smuggling and simplifying procedures for the free distribution of confiscated goods.
Josip Ostrogović (HDZ) praised the reduction of barriers, acceleration of customs procedures, digitalization, increased transparency, and better border controls. "For the economy, this means faster customs clearance, lower business costs, and improved competitiveness of our companies in the European market," he emphasized.
Ostrogović also welcomed the faster and more efficient distribution of confiscated goods. According to the law, for goods valued up to 15,000 euros, the decision will be made by a customs administration commission, while for goods exceeding 15,000 euros, the Minister of Finance will decide based on the commission's recommendation.
