CEFTA

In December 2006, BiH signed the Central European Free Trade Agreement (CEFTA), which became operational in November 2007.  The regional trade group consists of Albania, BiH, Kosovo, North Macedonia, Moldova, Montenegro, and Serbia.  CEFTA aims to harmonize its Parties’ regulatory framework with the EU and international standards.  It also covers issues such as the protection of intellectual property rights, competition rules, and state aid.  For more information on CEFTA visit https://cefta.int/trade-info-center/

EU SAA

In June 2008, BiH signed the Stabilization and Association Agreement (SAA) with the European Union, an important step toward EU membership.  The SAA officially entered into force on June 1, 2015.  The most important part of the SAA is the establishment of a free trade zone between BiH and the EU, allowing for the mutual abolishment of custom tariffs and quantity limitations in mutual exchange of goods.  An adapted SAA, which recognized Croatia’s EU membership, went into effect on February 1, 2017.

Trade in Agriculture and Food Products

With Croatia’s accession to the EU on July 1, 2013, Croatia lost its privileged CEFTA access, and the following key products began to be subject to duties ranging from 5 to 35 percent: dairy, meat products, fruits, vegetables, and sugar.  The adapted SAA, which recognized Croatia’s EU membership and went into effect on February 1, 2017, provides for unlimited, duty-free access for BiH fruits and vegetables and allows higher quotas for fish and wine from BiH into the EU market.  In return, BiH established higher duty-free quotas for sugar, cigarettes, beef, pork, milk, poultry products, and potatoes imported from the EU.

U.S. GSP

BiH was designated as a beneficiary country under the United States Generalized System of Preferences (GSP) program through December 31, 2020.  Between 2013 and 2020, BiH exported to the U.S. over $50 million worth of goods eligible for the GSP program.  GSP expired on December 31, 2020.  As a result, imports entering the United States from 122 eligible countries including BiH that were previously eligible for duty-free treatment under GSP are now subject to regular, Normal Trade Relations (MFN) rates of duty.  We expect BiH to retain GSP status in the future if/when the GSP program is reauthorized.

For information on FTA partner countries, including how to take advantage of an FTA, please link to the FTA Help Center.