U.S. Ambassador to Croatia Nathalie Rayes said on Wednesday that the U.S. and Croatia have achieved numerous bilateral goals, including the removal of visas for Croatian citizens, and one remaining challenge is the ratification of the double taxation avoidance treaty, which she hopes could happen next year.

Rayes was speaking ahead of a seminar on Croatian companies entering the U.S. market and double taxation, organised by the Croatian Chamber of Commerce (HGK), the U.S. Embassy, and the Association of Croatian American Professionals (ACAP).

The double taxation avoidance treaty between Croatia and the U.S. was signed at the end of 2022, but it still needs to be ratified by the U.S. Senate. When asked by the press when this might happen, Rayes could not give a precise answer.

She mentioned that it could take up to ten years, but there is a will for it to happen sooner, so the issue needs to be prioritised. She emphasised that this challenge is a current priority of her term, and she aims and hopes for ratification to occur next year.

Once ratified, this treaty will simplify cross-border trade and investments and protect companies from double taxation. “No one wants to be double-taxed, Rayes noted.

She pointed out that double taxation harms small businesses the most because, unlike large companies, they do not have branches in countries that have resolved this issue with the U.S. She urged those affected by the current situation to call U.S. senators and explain the importance of avoiding double taxation.

For Croatian IT companies, the U.S. is the largest foreign market, so this sector is expected to benefit the most from the elimination of double taxation, followed by the pharmaceutical, defence, and food industries.

Economic cooperation between the two countries is constantly growing

Rayes highlighted that economic cooperation between the two countries is constantly growing. According to her, Croatian exports to the U.S. have doubled over the past ten years, reaching $900 million last year, when U.S. exports amounted to around $1 billion.

This is not just about dollars and cents. Increased trade means more well-paid jobs and more innovation, both in Croatia and the U.S., she said.

She highlighted the desire to further strengthen trade and investment in Croatia, as well as the numerous American companies already present and employing thousands of workers.

Croatia is ready for investments from the U.S., Rayes said, adding that investment opportunities are being considered, particularly in the energy and pharmaceutical industries, and she hopes this will be discussed more soon.

She also mentioned nine greenfield investments by Croatian companies in the U.S. over the past ten years, worth almost $50 million.

A delegation from Los Angeles is coming in November

Rayes announced that an economic delegation from Los Angeles will visit Croatia in November, including representatives from the local port, the busiest container port in North America, as well as the airport. She expressed hope for the establishment of direct flights between Los Angeles and Zagreb.

More direct flights, not only seasonal but year-round, would contribute to further growth in the number of American tourists in Croatia, she added.

HGK president Luka Burilovic said that even better results can be expected in the future, not only in tourism but primarily in trade.

He emphasised that the U.S. is an important strategic, political, economic, and military ally for Croatia. The U.S. is among Croatia’s ten most important trading partners, and economic indicators are growing year by year, as are the number of American tourists, with about 700,000 visiting Croatia last year.

Don Markusic, president of ACAP’s Zagreb branch, mentioned pilot projects in medical tourism in the northern Adriatic Kvarner region and the eastern city of Vukovar.