ABSTRACT
Following the political and economic transformation in Central and Eastern Europe (CEECs),1 the ‘trade geography’ of the old continent has changed fundamentally. While abolishing the CMEA trade bloc, the transforming economies have institutionalised their trade relations within Europe in three directions. Key importance was attached to the European Union (EU) with which association agreements (AA) were signed. Free trade treaties created the framework of trade relations with EFTA countries. In addition, the Central European transforming countries established their own free trade area (CEFTA). As a result, the agreements are set to create a large free trade area including most European countries by 2001.
