FBiH Government sends initiative to BiH Council of Ministers to ban export of firewood and pellets until the end of the year

(Patria) - The Government of the Federation of BiH, at the proposal of the Federal Ministry of Trade, at today's urgent, telephonically held session, accepted the initiative to adopt a Decision on the temporary ban of export from Bosnia and Herzegovina of firewood and pellets until December 31, 2022.

The FBiH Government is sending an initiative to the BiH Council of Ministers to task the BiH Ministry of Foreign Trade and Economic Relations to, as soon as possible, and no later than fifteen days from the adoption of this initiative, prepare and submit to the BiH Council of Ministers for consideration and decision-making a Decision on the temporary ban of export from BiH of firewood and pellets until December 31, 2022, with the condition that this decision will not have negative effects for BiH in terms of compensation for damages under already concluded/valid contracts for export, i.e., that it is drafted in such a way that it does not apply to valid concluded contracts until the day this decision enters into force.

The justification for the initiative stated that the legal basis for adopting the decision is contained in Article 7, Paragraph (6) of the Law on Foreign Trade Policy of BiH, which stipulates that the BiH Council of Ministers may, in accordance with trade agreement obligations, ban the export, import, or transit of certain goods through BiH or prescribe conditions under which such goods may be imported, exported, or transited in order to prevent endangerment of human lives, health, and the environment.

It was also emphasized that, by monitoring supply and demand relations, as well as the price movement of firewood and pellets, it was concluded that due to increased demand on the world market, there has been a significant increase in exports from Bosnia and Herzegovina. Furthermore, the situation on the firewood and pellet market in Bosnia and Herzegovina has reached a worrying level and requires urgent action to stabilize the domestic market.

Namely, many Bosnian and Herzegovinian producers and traders export firewood and pellets in quotas of up to 90 percent, and some companies even export 100 percent of their production. Due to such actions, there is a justified fear that these products will not be available in sufficient quantities for the needs of the BiH market. Therefore, the goal is to protect the domestic market, meet the needs of the population, and ensure a sufficient supply of firewood for the upcoming season.