The international image of Yugoslavia has radically changed in the last year. Could you tell us about your efforts to bring Yugoslavia back on the international agenda during the past fourteen months?
You are absolutely right that the country's image improved very much during the past fourteen months. We adopted a new policy, a policy of cooperation and integration, which is absolutely different from the policy of the previous regime, a policy of conflict and isolation. On the other hand, we have been determined to implement as fast as possible all our economic and political reforms. Due to the achievements of those reforms we have been granted some rewards from the international community and the international community was eager to support us even further. We moved first with bold economic and political reforms. We achieved results, then the international community supported us further and then we paved the way for the next opportunities. From the very beginning the international community was eager to accept our membership in all political and financial institutions. For the last year we scheduled or settled all outstanding issues and the debts with international financial institutions, including the Paris Club. So, we paved the way for the future cooperation.
Are you following a two-track strategy: developing bilateral government to government relations with countries on one side, and lobbying international organizations like the United Nations or EU, on the other side?
Yes, because the world is complex, you have to deal with countries and you have to deal with the international institutions. We approached both of them, we paid special attention to the countries in Europe since we are part of Europe and our policy is to be integrated in the European Union. On the other hand we pay a lot of attention to our relations with other countries in Europe, which are not members of the EU, and we would like to make a balanced approach in our relationship with those countries. I am talking about our neighbors and about Russia, Ukraine and other countries. Improving our relationships with them is compatible with our main goal, which is to achieve a full membership in the EU.
How are the negotiations going with the IMF for future loans?
Right now we have a stand-by agreement and we will have a review of that agreement two more times, the last of which will take place at the end of January. At that time we will start a new negotiation on EFF (extended financial facility) agreement that will last for the next three years. All terms of the Paris Club negotiations are related to a successful conclusion of that three-year agreement with the IMF. I am optimistic on that account and I expect that we will be on time and that we will sign by the end of March. We haven't opened yet these discussions. They will take place by the end of January.
How about the establishment of a tariff-free regional market in the Balkans? Numerous companies that we interviewed are hoping for it.
We already have a free trade agreement with Macedonia. Now we are revising that, because in the meantime we strongly liberalized our trade regime. So, the terms of our general trade regime are more favorable now than the terms we had two years ago, when the agreement with Macedonia was concluded. Now we are going to adjust that agreement. We also initiated an agreement with Bosnia and it will be adopted probably in January. We are also discussing the terms for a free trade agreement with Croatia. We have already had two meetings and the next meeting with experts will take place in January. In early February I will sign a free-trade agreement with Hungary. Only Romania and Bulgaria are left out so far, but the negotiations are already on their way. In about 3 months from now we will have new or updated free-trade agreement with all our neighbors, but Romania and Bulgaria. We are planning to have those agreements by the end of next year. The process is going very fast. Hungary extended an asymmetric free-trade agreement with Serbia and we will grant an asymmetric treatment to Bosnia. With all the other countries in the region we will have these agreements on an equal basis. | When will the law on foreign investments be passed?
The law on foreign investments, the draft of the law has been sent to the federal parliament and I expect that the draft will be passed at the end of 200
Do you expect it to be passed smoothly?
I do not think there will be much opposition on that account.
Is the WTO membership realistic and is it an objective in the future for Yugoslavia?
For sure it is realistic and objective. Informally we already submitted our memorandum on trade policy and system to the WTO Secretariat in Geneva. We received the initial comments. We will update our report and send it back in January. We expect to open official negotiations in April next year. The process will be speeded. At the same time we are in a stabilization and association process with the EU and we negotiate some terms within that framework and those two talks are compatible. They are leading in the same direction.
What is your vision of Yugoslavia in future?
In the short term we will do our best to become a candidate country by the year 2004 or 2005 and to be a full member by 2010. That is the vision, to be fully integrated into the European Union and to change our political system, institutional system and economic system and to be compatible with the system of any regular member of the EU.
If Montenegro, in the meantime, decides to separate, how will this change your work?
For sure that will affect the speed, but not the direction or target. We will keep them the same. Maybe that might affect the speed, meaning some postponing effect. With Montenegro or without Montenegro we will proceed with our plans. Of course, it would be much quicker and cheaper to go together along that path and we will do our best to persuade our friends in Montenegro to go together, but anything can happen. In any case we respect the democratic and free decision of our Montenegrin friends whether they would like to stay with us in the same country or create their own. We invite them to stay. It would be better for both of us. If they do not want it, we will still be good friends with no conflicts, but that might postpone the reception of Yugoslavia into the EU.
What would be your final message to the readers of Forbes Global, who might be potential investors in Serbia?
Today opportunities for investment in the country are not great, but tomorrow we will improve these opportunities dramatically and I am inviting potential investors to come earlier to the country, maybe with smaller projects and smaller amounts of funds to mitigate the country's risk, to be present. They could be a part of our success story. Their presence in the country will improve investment opportunities for others as well. If you look at the map, Serbia is a part of Europe geographically and economically. Yesterday we used to be a black hole in the southern part of Europe, but tomorrow we will be just a regular part of the EU. I would ask a potential investor to, in spite all obstacles and risks come to the country, investigate opportunities for investments. There are still good people here. There will be a much wider regional market next year and in the years to come. I am sure they will find opportunities for profitable projects.
Thank you for your comments, Mr. Labus
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V.I.P. INTERVIEWS 
