Croatia and Serbia signed an agreement on economic cooperation between the two former Yugoslav republics in the Croatian capital Zagreb on Wednesday.

Damir Polancec, Croatian vice prime minister and minister of economy, labor and entrepreneurship, said the agreement envisaged the establishment of a joint economic committee, which would mean a more intensive cooperation in many areas, the Croatian news agency HINA reported.

Under the agreement, the two countries will appear jointly in the markets of the region, Russia and other countries.

Polancec said that the agreement stipulates cooperation concerning shipbuilding, energy, electrical engineering, infrastructure, agriculture, tourism, as well as the food, pharmaceutical, tobacco, chemical and wood industries.

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said the cooperation between Croatia and Serbia was necessary for the region, notably in the current time of crisis, adding that he hoped the two countries would soon sign an agreement on air traffic.

Last year's trade between Croatia and Serbia amounted to 830 million euros (about 1,164 million U.S. dollars), which is significant for both economies, but there is still room for advancing economic relations, to which the agreement signed Wednesday is expected to contribute, the two ministers said.

The signing ceremony was held at the Croatian Economy Ministry following talks on bilateral relations. The two ministers described the talks as constructive and pragmatic, concluding that both sides are interested in developing economic cooperation and solving mutual problems as soon as possible regardless of the past wars during the breakup of former Yugoslavia.

Source: Xinhua