Croatian Finance Minister, Zdravko Maric, and Japanese Parliamentary Vice-Minister for Foreign Affairs, Kenji Yamada, signed a bilateral double taxation agreement in Zagreb on Friday.

The agreement provides for a series of tax breaks in the taxation of all sorts of products, and creates conditions to improve trade relations and increase the economic activity between the two countries, the finance ministry said.

Maric said the agreement is important for boosting economic cooperation.

“Japan is one of the model economies… and opportunities for cooperation (with Japan) have increased since Croatia joined the European Union (in 2013). We want to be recognised as not just a country for tourists, but also develop our economy in various sectors, and Japan’s experience in that, and this agreement, can help,” Maric said.

Yamada said he hoped the agreement would help increase economic cooperation between the two countries.

“This year is the 25th anniversary of Croatian-Japanese diplomatic relations, and I’m glad this agreement will set the foundations for new cooperation and stronger economic relations,” Yamada added.

Yamada said he hoped that, aside from its tuna fish, Croatia’s wines would become increasingly recognised in Japan, and that the number of Japanese companies doing business in Croatia would also increase.

Tuna makes up more than 90 percent of Croatia’s exports to Japan, with more than 2,900 tonnes of the prized fish exported in 2016. The sales of bluefin tuna farmed in Croatian farms on the Adriatic coast amount to nearly €40 million per year.

The double taxation agreement now has to be ratified by the Croatian parliament before coming into force, the ministry said.

Follow N1 via mobile apps for Android | iPhone/iPad | Windows| and social media on Twitter | Facebook.