At a recent conference, CEFTA (Central European Free Trade Agreement) adopted nine new agreements that will significantly enhance trade, consumer protection, M&A invesments and market competitiveness in Bosnia and Herzegovina. These CEFTA agreements are designed to facilitate cross-border trade, reduce administrative barriers, and increase efficiency in customs and trade procedures. As a result, the business climate in the region is expected to improve. Here are some specific aspects that may interest businesses:
Accelerating Trade Procedures
The agreements provide for the digitalization of customs procedures and the simplification of product certification, which will reduce delivery delays and cut costs for businesses, and ease trade expansion. The use of electronic certificates could save up to 30% of time in trading processes.
Easing Trade of Agricultural and Industrial Products
The new agreements facilitate the mutual recognition of quality and safety certificates among member countries. This means that companies will be able to market their products more easily without the need for additional testing or inspections in each country. This measure will lower costs for businesses in sectors such as agriculture, food production, and manufacturing.
Increased Consumer Protection
CEFTA adopted nine new agreements agreements and introduced new rules for product labeling and tracking, increasing transparency and consumer trust. Particularly important will be the new standards for labeling product origin and composition, which are crucial for exports to international markets. This will bolster CEFTA economic cooperation by ensuring consistent standards across the region.
Access to New Markets
Trade liberalization will open up new opportunities for companies in Bosnia and Herzegovina (BiH) to expand their business in CEFTA member markets, which include Serbia, Montenegro, North Macedonia, Albania, and Kosovo. According to estimates, this move could increase BiH’s exports by 15% over the next few years, furthering CEFTA regional integration
Improving Competitiveness
Reducing trade costs and administrative barriers will boost the competitiveness of domestic companies in regional markets. According to CEFTA data, small and medium-sized enterprises (SMEs) make up about 90% of the region’s economy, so these measures will especially contribute to their growth.
Businesses and M&A investors in BiH now have the opportunity to take advantage of the benefits these new agreements offer. It is also important to note that the implementation of these measures will require adjustments to business and legal procedures, so preparations should begin now to ensure companies are ready to capitalize on the new regulations. Our legal team is closely monitoring all legislative changes and is ready to provide full expert and advisory support in adapting processes to buesiness law regulatory changes, helping clients navigate the transition and quickly take advantage of opportunities to improve their operations.
For more information on CEFTA agreements, please visit: Central European Free Trade Agreement (CEFTA) | Welcome
For more information on IA Law Firm’s expertise and range of services in the field of capital market and investments, please visit: https://ia-lawfirm.com/en/financial-sector-insurance-capital-market-and-investments/
