On 18 July 2016 in Sarajevo the European Commission (EC) and Bosnia and Herzegovina (BiH) initiated a Protocol on the adaptation of the Stabilization and Association Agreement (SAA).
The Protocol provides for a technical adjustment of the trade provisions in the SAA, concerning BiH exports into the EU and EU exports into BiH to take into account the accession of Croatia to the EU in July 2013 and prevent disruption of the bilateral trade.
The SAA between BiH and the EC was signed in 2008 and entered into force in June 2015. The trade component, i.e. the Interim Agreement, was in force since 2008. Owing to the SAA, 85% of the exports of BiH exports go to the EU.
The adaptation if the SAA was one of the issues that have remained to be addressed by BiH. As a result, trade benefits that had been suspended since 1 January 2016 due to non-adaptation of the SAA will be re-introduced.
Following the initialling of the protocol, the EC and BiH are to take the necessary steps for its signing and ratification.
Impact on investors: The full implementation of the SAA, including its adaptation, is an important element of the commitment to the EU integration process.
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