Notes of Protest of Zagreb and Belgrade not to change decision on customs in Bosnia and Herzegovina ?

Counselor of the president of Council of Ministers of BiH, Bojan Zec Filipović, announced that diplomatic notes of Belgrade and Zagreb would not change the decision on introduction of duties on some of the food products from Croatia and SCG. The decision on temporary repealing of zero duties is in effect at the moment and, according to him, there will be not changes until the reasons for such decision exist.

Filipović claims that the authorities in BiH tried to contact the authorities in Belgrade several times because “Serbia has been violating agreement on free trade with BiH for one year already”. He adds that the Government of Serbia made the decision in April 2004 on direct subvention of export of food products.

Croatia, according to him, caused real disturbances in agricultural production in BiH and that is why BiH introduced level of duties the same as in 2003.

Ministry of Agriculture of Serbia claims that Serbia conducted complete liberalization, whereas BiH violates free trade agreement from the day the status of duty-free exchange was put in effect. The agreement was applied only when it was asymmetric and BiH had use of it (from June 1, 2002 to January 1, 2004.). It was agreed that BiH reduce duties in phases in the following way: in 2002 - to 60%, in 2003 - to 40%, and from January 1, 2004 - to 0%. Serbia repealed all duties to BiH right after the agreement was signed. The Ministry states that already on January 1, 2004, BiH violated agreement and introduced protection measures and postponed application for 3 months. Then it continued with the partial application because the agreement was not applicable to import of animals and animal products. Now, there is new measure ahead.