Bosnia and Herzegovina: foreign trade policy and foreign trade balance in terms of the EU association process

Abstract

Bosnia and Herzegovina (B&H) is a small and open country specific by its complex administrative structure and many transitional problems. Unfortunately, the country has a continuous foreign trade deficit. Domestic companies' low competitiveness and many non-tariff barriers they are being exposed to on the international market are the main obstacles to the better position in the international trade. As other countries in the region, B&H has also expressed aspiration to join the European Union by the CEFTA and Stabilisation and Association Agreement (SAA). Integration is intertwined with trade-relations and progressive liberalisation may have unintended consequences. So, how does EU association process affect B&H's foreign trade balance? Analysis of B&H's foreign trade policy and foreign trade balance in the light of the EU association process and recommendation for foreign trade policy makers are given below.