Trump halts Croatia’s entry into OECD

Donald Trump

Croatia has hit its first major roadblock in joining the Organisation for Economic Co-operation and Development (OECD), following a shift in U.S. foreign policy under Donald Trump.

According to reports from Dnevnik Nova TV, Croatia’s accession process has been temporarily put on hold. The reason? Trade tensions between the U.S. and the European Union.

Unexpected Setback in Negotiations

Croatia has made significant progress in the OECD accession process, closing discussions in 19 out of 25 committees.

However, when it came to the trade committee, things took an unexpected turn. The vote was postponed indefinitely, largely due to objections from one of Croatia’s key allies—the United States.

“The vote in the trade committee will take place when conditions allow. We are working closely with our American partners and the OECD on all issues concerning our entry,” said Zdenko Lucić, State Secretary at the Ministry of Foreign and European Affairs.

Croatia now risks becoming collateral damage in this economic standoff. Despite the setback, the Croatian government remains optimistic.

“There is still a lot of work ahead. By the end of the year, we aim to complete discussions in the remaining six committees. For now, everything is going according to plan, and our goal remains to join the OECD by mid-next year,” Lucić added.

Despite the delay, officials stress that this does not constitute a blockade. The halted vote within the Trade Committee will proceed once conditions allow. Croatia’s American partners have merely requested that the vote be postponed to a later date.

Caught in the Crossfire of U.S.-EU Trade Disputes

Unofficial sources suggest that the delay is linked to ongoing U.S.-EU trade disputes, which have intensified since Trump took office.

Other Challenges in U.S.-Croatia Relations

The OECD issue is not the only challenge in recent U.S.-Croatia relations. A long-anticipated agreement on avoiding double taxation, which was once seen as imminent, has yet to materialise.

Republican Senator David Joyce, who closely follows U.S.-Croatia relations, explained the delay.

“I believe the problem was in Congress and changes in our Treasury Department. When this was first brought up in 2022, there was a different administration that wasn’t particularly interested in these matters,” Joyce said.

However, he remains hopeful that Trump’s administration will finally resolve the issue and praised Croatia’s diplomatic efforts.

“From my earliest days in office, Croatian diplomats have worked closely with me, ensuring I understand their position and the importance of resolving this issue once and for all,” he added.

The OECD is an influential organisation of 38 developed nations, including economic powerhouses such as the US, Germany, Japan, and France.

Membership has been a key priority for Croatian foreign policy in recent years, offering both reputational and economic benefits—enhancing investment attractiveness and allowing participation in shaping global economic policies.