 FREE TRADE AGREEMENTS |
Alongside with this economic development, we observed a major political transformation in 2001: for the first time after the war, the citizen of Bosnia have elected a moderate, liberal government which, in a relatively short period, has significantly improved the political and economic relations with neighbouring countries such as Croatia and SR Yugoslavia. Important political changes on the run in these two countries also accelerated the improvement in mutual relationships (in Croatia the 10-year-old dictatorship of president Franjo Tudjman has ended, and in Yugoslavia moderate forces have ousted Slobodan Milosevic). The new Bosnian government has managed to reach important free-trade agreements with its neighbours. The emergence of a custom- free trade regarding products and services developed, produced or assembled in Bosnia has contributed to set up one big market out of the many small and separated previously existing ones. Similar trade agreements will soon be reached with Slovenia and Macedonia, creating thus additional opportunities. For the first time, local businesses can think and make plans designed for larger markets than for their own nation.
For big international companies potential investments in Bosnia are now translated into potential investment in the region - if something is produced in Bosnia it can be custom-free exported and offered to a market of more than 22 million people! On the other hand, Bosnia has provided its neighbours with a lower custom burden and the status of privileged nations in trade. However custom duties have remained for their products entering Bosnia. This makes Bosnia the most attractive country in the Balkans for foreign investments. If, for example, Coca Cola is producing in Bosnia it can go to Serbia without paying customs, whereas if Coca Cola is produced in Serbia it can't be exported to neighbouring countries without paying customs.
Mr Hasan Becirovic, Federal Minister for Energy, Mining and Industry
| These asymmetric trade agreements were given to Bosnia because its neighbours have agreed that Bosnia needs time to recover from its terrible war damages and that during that time it is not capable to compete with the economies of the countries that did not suffer during the war. Such agreements have revived the Bosnian economy and made it able to be competitive on both the regional and European market.
"I'm proud of what we have done on the integration of the economic system in the country and the integration into economic system of Europe. I was very happy when I realized that our products could be competitive on the European market. It's a great pleasure to take part in creating a competitive product for a wider market," said Hasan Becirovic, Minister for Energy, Mining and Industry of the Federation of BiH.
Comprehensive economic and political reforms in Bosnia have been achieved with the strong assistance of the international community present in Bosnia. International agencies are still very active in Bosnia. There are economic organizations such as the World Bank, the International Monetary Fund, the European Bank for Reconstruction and Development and political ones such as police and military institutions (the Office of the High Representative - OHR - the Stabilization Force - SFOR - and the International Police Task Force - IPTF) and USAID, which are key institutions that monitor and supervise the implementation of the Dayton Peace agreement in this country. The presence of the international community in Bosnia is a stabilizing factor and an additional guarantee for domestic and international investments in Bosnia. It is of paramount importance to emphasize on the technical expertise that Bosnia has received in carrying out some of its structural reforms. Without that, some of the biggest successes already achieved in Bosnia would probably have taken far longer to materialize. |
