SPOLJNA TRGOVINA BOSNE I HERCEGOVINE I PROŠIRENJE EVROPSKE UNIJE
BiH FOREIGN TRADE POLICY AND EU ENLARGEMENT

Summary/Abstract: Bosnia and Herzegovina is a small open economy in which foreign trade is of extreme importance for its economic dvelopment. One of the BiH most important trading partners is the Republic of Croatia, which is the twenty-eighth member of the European Union. Therefore, after the accession of Croatia to the European Union, Bosnia and Herzegovina has become a neighbouring country to the largest economic integration in the world and with which it has had very intense international trade flows so far. Bosnia and Herzegovina has been the CEFTA member country since 2006, a free trade zone, together with Serbia, Macedonia, Montenegro, Moldavia, Albania, and UNMIK Kosovo, whereas Croatia was the member country since the accession to the European Union. Of all the CEFTA countries, it was with Croatia that Bosnia and Herzegovina had most intense trade relations. It is clear now that trade relations between these two countries will undergo changes, since Croatia is no longer CEFTA member country. This paper deals with the analysis of BiH foreign trade and its trade relations with the neighbouring country, the Republic of Croatia and the European Union before and after the enlargement as well as with the possible consequences of the enlargement of the European Union. Through the analysis and synthesis reports, the importance of foreign trade for Bosnia and Herzegovina is highlighted and also the main features of its foreign trade. By the use of specific measurement models of trade concentration and comparative methods, the position of Bosnia and Herzegovina has been analysed and defined and the concerns over possible changes following the EU enlargement have been pointed out. The analysis outlines some challenges that await the BiH companies when the new trade rules are applied in trade relations with its most important trading partner.

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