Hurtić: EU sanctions would jeopardize BiH exports

If the European Union abolishes the preferential regime that companies from Bosnia and Herzegovina currently have for exports, it will certainly complicate BiH's economic position, stated Zlatko Hurtić, economic analyst, for the BiH news agency Patria (NAP). According to him, this will most affect the export-oriented sector of the BiH economy.

- Germany, Italy, and Austria are our most important export markets, and if our companies face more difficult conditions, it will only cause negative consequences, a drop in activity, and then everything reflects on employee wages and a decrease in employment. Every new problem that BiH has with the European Union is felt in the economy – says Hurtić.

The European Commission for Enlargement and Commissioner Štefan Füle have sent a proposal for a decision to the EU Council and the European Parliament to suspend the asymmetric trade regime with Bosnia and Herzegovina from the end of next year.

The suspension and trade sanctions have been proposed because BiH has not harmonized its trade regime with Croatia, following its accession to the European Union. Croatia requested to retain the rights it had as a CEFTA member, however, BiH authorities refused this.

However, Brussels in this case requested BiH to reach an agreement, otherwise it will again be targeted by sanctions. If, however, BiH resolves this issue by the end of next year, our economy will still be able to export to European markets under a preferential regime.

The fact that this is not a trivial warning from Brussels is best illustrated by the fact that Germany became BiH's strongest trading partner a few months ago, and any disruption in that relationship would be significantly felt by the BiH economy, NAP reports.