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.
The 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
