OPR- Thursday, 26th October, 2006

Mr President,

Distinguished guests,

Ladies and Gentlemen,

Thank you for a cordial reception.

In recent years the cooperation between our two countries has become positively more active.  The fact that parallel to my State Visit to Croatia there are meetings between entrepreneurs and businessmen testifies to our common intent to deepen Maltese-Croatian cooperation in all areas and to continue it on a very practical level.  Even though political cooperation is indeed desirable and much sought after, political cooperation needs to be complemented by stronger economic exchanges. 

Historically Malta has a long trade tradition with ports along the Dalmatian coast, of which modern Croatia forms part.  These relations go back to the time of the Roman Empire when fine quality Maltese textiles and honey were exported in return for wood and wood products required by the Maltese shipbuilding trades.  This commerce continued even during the Middle Ages, when triangular trade between Dubrovnik, Malta and ports in North Africa and the Western Mediterranean remained a valid proposition.

I take this occasion to recall that Malta was not only one of the first States to extend recognition to Croatia as a sovereign and independent nation, but Malta’s Ship Registry also served as a refuge for Croat owned vessels which flew the Maltese maritime flag until the internal political situation in Croatia stabilized and appropriate maritime legislation for independent Croatia could be enacted.

Malta is strategically located at the crossroads of the Mediterranean, half way between Southern Europe and Northern Africa, and between Gibraltar and the Suez; Croatia at the crossroads of the Mediterranean, Central Europe and the Balkans.  We can therefore both serve as gateways to our neighbouring countries.

To cooperate fruitfully it is necessary to know one another.  In Malta, Croatia is seen as a candidate country to the European Union that has achieved significant progress, and as a fascinating tourist destination.  Nevertheless I am certain that we still have much to learn.  Although trade between our two countries is rather small, Maltese entrepreneurs are being increasingly attracted to emerging Croat business opportunities and to date there is substantial Maltese investment in property management and construction, health-care, yachting services and merchandising.  

Membership of the European Union brought advantages and opportunities to my country, as well as new challenges which required new approaches.  We are confident that membership in the European Union will have a positive impact on the Croatian economy.  

Malta and Croatia can share more of their knowledge and experience with each other and thus strengthen both countries’ ability to face the challenges of a modern, globalised world.  I am pleased about a number of cooperation projects that already provide a good incentive for further cooperation.  Our countries already have in force a bilateral Double Taxation Agreement signed in October 1998, as well as an Agreement for the Promotion of Reciprocal Protection of Investment, signed in July 2001.  

Moreover, the Maltese Chamber of Small and Medium Enterprise and the Croatian Chamber of Trades and Crafts have already formalized an agreement on cooperation to assist Croatian enterprises during Croatia’s negotiations with the EU.  Furthermore, an agreement on Cooperation in Merchant Shipping which will help develop and promote merchant navigation is prospected.  This is especially important in view of Malta and Croatia’s central position on the main trading routes in the Mediterranean. 

I am confident that the contacts established here today, as well as during the previous visits by the Prime Minister and by the Minister of Foreign Affairs of Malta, will be beneficial and will lead to a deepening of relations and a more comprehensive knowledge of each other.

On my own behalf, I wish you a successful forum and I trust that our discussions today will serve to enhance our economic ties further, thus enhancing the creation of other business opportunities.