The European Union has reinstated trade restrictions and tariffs on BiH produce this week, citing a lack of progress in negotiations on the Stabilization and Association Agreement. The EU lifted tariffs on most food imports from BiH after the signing of an interim agreement in 2008. But following the new decision, BiH will have to finalize and implement certain free-trade measures contained in the SAA in order to restore tariff-free exports. Many in BiH are concerned that a permanent free-trade agreement will damage the local economy.
“The EU claims that we will not suffer from an update of the SAA because we have been trading with Croatia in the past. This is true, but Croatia benefits from more European subsidies for agriculture than Bosnia, and in this sense it will be difficult for us to face competition from Croatian produce once we update the SAA,” Mirko Sarovic, Minister of Foreign Trade, said on Monday….
“The EU’s decision won’t impact immediately on our business because it’s winter. But our government needs to find a solution by June or July, when production peaks, or it will become very difficult,” Nermin Basic, director of Baso, a company from Velika Kladusa that exports fruits and vegetables to the EU, told BIRN.
