FBiH Government sends initiative to BiH Council of Ministers to start talks on free trade with the USA

(Patria) - The Government of the Federation of Bosnia and Herzegovina today, at its session in Tuzla, at the proposal of the Prime Minister of the Federation of BiH, Nermin Nikšić, adopted by Conclusion the Information on the implications of the announced introduction of tariffs by the United States of America towards Bosnia and Herzegovina with the Initiative to start talks and activities on concluding a Free Trade Agreement with the United States of America.

The Federal Prime Minister is tasked with signing the text of the Initiative, which the General Secretariat of the Government of the Federation of BiH will then send to the Council of Ministers of Bosnia and Herzegovina. The Initiative requests the Chairperson of the Council of Ministers of Bosnia and Herzegovina to, in accordance with her/his competencies, i.e., the competencies of the Council of Ministers of Bosnia and Herzegovina, initiate activities regarding the potential conclusion of a Free Trade Agreement with the United States of America, taking into account the provisions of the Stabilization and Association Agreement, and other
documents governing the rights and obligations of Bosnia and Herzegovina towards the European Union.

The adopted Information on the implications of the announced introduction of tariffs by the United States of America towards Bosnia and Herzegovina, among other things, reminds that the United States of America introduced a ten percent tariff on all imported goods on April 2, 2025, and special tariff rates for countries with which they have a foreign trade deficit, including Bosnia and Herzegovina for whose products a 35 percent tariff was proposed. It was also stated that the USA suspended the new tariffs for 90 days on April 9, 2025.

The Information stated that data on the volume of trade with the USA, in relation to the total foreign trade of BiH, indicate that it accounts for about one percent, and that total exports to the USA in 2024 amounted to 234.5 million KM, while imports from the USA in the same period amounted to 190 million KM. Data processed according to Eurostat methodology show that we have a foreign trade deficit with the USA, not a surplus.

It was also stated that the tariffs in question, regardless of being suspended for a period of 90 days, created additional pressure on the global economy by their very announcement, and that consequently, if they were to officially come into effect, they would cause negative direct and indirect impacts on the economy of BiH. It was explained that the direct impact would be reflected in negative implications for certain industrial sectors, primarily the defense industry, followed by the metal and electrical industries, the chemical industry, and to a lesser extent the food and wood industries. The indirect impact would be considerably larger in scope, considering that these are tariffs towards the European Union, our most significant trading partner, which would be reflected in a further decrease in demand for our products and services.

Without prejudging the re-activation of the disputed tariffs, it is considered necessary to take activities in the shortest possible time, which will be aimed at finding mutually beneficial solutions, given that the USA is one of our greatest allies, and a sincere friend.