In the first half of this year Croatia lost the status as Bosnia and Herzegovina's most important trading partner as a direct result of the change of the trade regime caused by Croatia's preparations for membership of the European Union, the Bosnian Foreign Trade Chamber said on Monday.
According to figures presented by the Foreign Trade Chamber in Sarajevo, Bosnia and Herzegovina's exports in the first half of the year totalled slightly less than 4 billion convertible marks (about two billion euros), while imports reached 7.1 billion convertible marks (about 3.5 billion euros).
Croatia is still the biggest single exporter to Bosnia and Herzegovina, where it sold 1.25 billion convertible marks (630 million euros) worth of commodities in the January-June 2012 period, which accounted for 17.68% of Bosnia and Herzegovina's total imports. Croatia's share in Bosnia and Herzegovina's imports dropped in comparison with the corresponding period of 2011 when it was 17.9%.
On the other hand, Serbia, as the second biggest exporter to Bosnia and Herzegovina, saw its share rise from 10.76% last year to 11.33% in the first half of 2012.
Similar trends could also be seen in Bosnian exports. In the first half of the year Bosnia and Herzegovina exported about 595 convertible marks (about 300 million euros) worth of goods to Croatia, which accounted for 14.98% of its overall exports, while at the same time last year its exports reached nearly 75 million euros, accounting for 15% of total exports.
Meanwhile, Germany consolidated its position as Bosnia and Herzegovina's No. 1 export market. Its proportion in Bosnian exports increased from 15.16% in 2011 to 16.69% this year.
"The drop of Croatia on the list of Bosnia and Herzegovina's most important trading partners will continue in the coming period because its exports to Bosnia and Herzegovina will continue to fall, as will Bosnian exports to Croatia," Duljko Hasic, an analyst at the Foreign Trade Chamber, told the media.
Hasic said that this followed from the fact that Croatia would insist on strict compliance with EU standards for imports from Bosnia and Herzegovina, while at the same time its products would lose a portion of the Bosnian market because they would become more expensive owing to customs duties.
After Croatia joins the EU on July 1, 2013 it will lose the possibility of exporting its products free of customs duties to the countries of the Central European Free Trade Agreement (CEFTA), including Bosnia and Herzegovina, so its exports to this country will be between 5% and 18% more expensive because of varying customs rates.
Hasic said that the Foreign Trade Chamber was concerned about Croatia's efforts to win, through direct negotiations with the European Commission, a privileged trading status for the CEFTA countries after it becomes a full member of the EU. He said that Bosnia and Herzegovina and Croatia should negotiate such an interim arrangement directly.
