Brussels, 02/08/2013 (Agence Europe) - The European Commission disapproves of the stalemate in the negotiations with Bosnia and Herzegovina for a bilateral trade agreement, and regrets that the country refuses the methodology of the EU and a technical adaptation linked to Croatia's membership of the European Union. This is not a good sign for Bosnia and Herzegovina's accession process.
The EU is currently negotiating the adaptation of the stabilisation and association agreement with Bosnia and Herzegovina and its interim agreement in relation to Croatia's recent membership of the EU. In a statement on 1 August, the Commission regrets the “continuous” refusal of the country to accept technical amendment of the bilateral trade agreement which should henceforth take account of its traditional trade with Croatia, under the Central European free trade agreement (CEFTA). However, according to the Commission, the adaptation is purely mathematical. Nevertheless it means a consequent rise in product quotas exempted from customs duties. The Commission states that until now the Western Balkan countries have accepted this method well, and it deplores the fact that Bosnia and Herzegovina is now calling for a revision of trade concessions. But for as long as there is no compromise on the amendments to the stabilisation and association agreement, Bosnia and Herzegovina is still able to impose customs duties on Croatian agricultural products - especially milk, some meat and meat-derived products - which were nevertheless fully liberalised on 1 July with Croatia's EU membership.
The situation is such that the Commission believes that that attitude of Bosnia and Herzegovina is a step backwards in the accession process of the country to the EU, for which bilateral free trade remains a cornerstone. Furthermore, the Commission stresses the fact that in protecting its internal market, Bosnia and Herzegovina is delaying the implementation of a common free-trade area with the EU28, the effect of which will be higher prices for products traditionally imported from Croatia. (MD/transl.fl)