This could mean a good start to 2016 for Croatian exporters
During this week, negotiations between Bosnia and Herzegovina and the European Union are expected to continue, and as a result, after two years, Croatia would once again have the right to export its goods to Bosnia, duty free. This has been one of the prerequisites for the continuation of EU accession talks since without it; this country cannot apply for candidate status. If Bosnia and Herzegovina does not reinstate duty free trade with Croatia, it will no longer have the right to export some of its agricultural products, mostly fruits and vegetables, to EU duty free.
Until Croatia joined the EU back in 2013, we were a member of CEFTA, regional free trade association, and we exported to member states duty free. Once we joined the EU, we lost those privileges, but, just like all other EU member states, we were supposed to gain the same rights to duty free export from each CEFTA country separately. Unlike other CEFTA members, Bosnian government refused to extend Croatia the free trade right, claiming it would endanger their own agricultural sector.
Should the talks end successfully, as of January 1st, Croatian exporters will be able to gain at least some of what was lost two years ago. For example, while Croatia was a member of CEFTA, Croatian companies exported 1,1 billion euro in goods to Bosnia and imported 580 million Euro, while just one year later, export dropped to 980 million and import increased to 600 million euro, and even though this year’s numbers are slightly better and they are showing a positive trend, duty free export would definitely help Croatian producers move a step closer towards the pre EU export numbers.
