European Union (EU) ministers have been asked to swiftly approve a comprehensive trade agreement between the EU and Bosnia & Herzegovina which will phase out duties on EU-made cars, automotive components and fuel exported to Bosnia.
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The move follows approval of long awaited Bosnian policing reforms which had blocked the deal. Under the trade agreement, Bosnian import duties on a wide range of automotive industry products will be phased out over three years.
These include: most types of car – including diesel models – as well as (new and restored) tyres and most vehicle fuels – including petrol and diesel.
The duties are to be removed steadily, falling to 75% of current levels upon the deal coming into force (possibly later this year); then to 50% of today’s rates the following January; to 25% one year later; disappearing altogether the year after that.
Reciprocal reductions in EU duties mainly focus on Bosnian food exports and not automotive products.
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By GlobalDataThe agreement is the first step towards Bosnia joining the EU, scrapping all remaining duties for trade with other member states.
Current EU presidency-holder Slovenia confirmed that the move promoted Bosnian “progress on the path towards EU integration” and it should clear the way for detailed formal membership negotiations.
Keith Nuthall/International News Services
