TOPCAGIC: SAA WILL NOT INCREASE BOSNIAN TRADE DEFICIT

SARAJEVO, Bosnia (June 27,2008) - The Stabilization and Association Agreement(SAA) with the European Union (EU) should not increase Bosnian trade deficit, said Osman Topčagić, Director of the Bosnian Directorate for European Integrations.He said that Bosnia has had bilateral agreements with the countries in the region since 1996 and it has joined the Central European Free Trade Agreement (CEFTA) recently.

Bosnia has imported mostly from the countries in the region so there is no danger that products from the EU might influence domestic production in a negative manner after customs duties are reduced or abolished.

On the other hand, he said Bosnia’s main problem is the lack of goods that might be exported into the EU market. In his opinion, direct effect of signing the Stabilization and Accession Agreement between Bosnia and the EU is the increase of investments either from European or from non-European countries.The products produced according to certain standards will be placed on the EU market as local products without the burden of customs duties.
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