The European Union (EU) and Bosnia and Herzegovina (BiH) have had a trade agreement in place since 2008. The agreement, known as the Stabilisation and Association Agreement (SAA), is designed to promote economic and political cooperation between the EU and BiH.
The SAA is a comprehensive trade agreement that covers a wide range of issues, including the liberalization of trade in goods and services, the protection of intellectual property, and the promotion of investment. The agreement also includes provisions on competition policy, public procurement, and the protection of the environment and labor standards.
Under the SAA, BiH has been granted preferential access to the EU market, which has helped to boost the country`s exports. The agreement has also provided an important framework for ongoing economic and political reforms in BiH, which are necessary for the country`s eventual accession to the EU.
Despite the positive impact of the SAA, there are still challenges that BiH faces in fully implementing the agreement. One of the key issues is the need for BiH to align its laws and regulations with those of the EU, particularly in areas such as competition policy and public procurement.
There are also concerns about the slow pace of reforms in BiH and the lingering effects of the country`s complex political system. These factors have hindered investment and economic growth in the country, and have made it difficult for BiH to fully realize the benefits of the SAA.
Overall, however, the EU-BiH trade agreement has been a positive development for both parties. As BiH continues to work towards EU accession, the SAA will remain an important framework for economic and political cooperation between the two partners.