Abstract
Bosnia and Herzegovina (BH and at the same time to take into account the potential future framework of CAP. Therefore the problematic challenge is to set a consistent policy developed according to strategic needs of Bosnia and Herzegovina and at the same time to proceed with the EU accession process taking into account potential implications of policy reforms. The purpose of this paper is to analyse development of agricultural and rural policy in BH however, there could be unexpected effects from harmonizing direct support measures in entities. B&H shows a relatively low competitiveness of the agro-food sector comparing to the EU15 while the situation is positive comparing economic indicators with EU12.
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