Upon the SAA entering into force on June 1st, the BiH economy will face competitors from the EU

Economic analyst Zlatko Hurtić told the Patria News Agency that the Stabilization and Association Agreement (SAA) between BiH and the European Union will have a positive impact, primarily on the domestic economy.

Although many have assessed that opening the BiH market to EU companies after June 1, 2015, after the SAA officially enters into force, will greatly endanger domestic companies, which could practically be swept away in public tenders in BiH by more competitive EU companies, Hurtić believes that domestic businessmen should not fear competition.

- What will domestic businessmen do after BiH joins the EU, when they face Germans or other strong economies. How do they intend to withstand those pressures – Hurtić asks.

- Joining the EU means opening your market to all EU member states, as well as those member states opening their markets to you. That is why BiH businessmen should not fear competition, of course, loyal competition. Finally, that is why the process of joining the EU takes ten or fifteen years, so that a country's economy can get used to new conditions. BiH must use this time to bring its economy to a competitive level so that it can withstand all subsequent pressures – Hurtić believes.

Ministers of Foreign Affairs of the European Union member states made a decision on Tuesday morning on the entry into force of the Stabilization and Association Agreement (SAA) between BiH and the EU.

- The Agreement will officially enter into force on June 1st. This will practically mean that Bosnia and Herzegovina will have the status of a potential candidate for EU membership from June, writes NAP.