FREE TRADE AGREEMENT BETWEEN BOSNIA AND HERZEGOVINA AND THE EUROPEAN FREE TRADE ASSOCIATION (EFTA)

Free Trade Agreement between Bosnia and Herzegovina and the States of the European Free Trade Association (EFTA) was signed on 24 June 2013 in Trondheim (Norway).  The agreement entered into force on 1 January 2015.

 The European Free Trade Association (EFTA) is an association that unites the markets of Switzerland, Norway, Iceland and Liechtenstein in the area of trade, established with the aim of providing a framework for the liberalization of trade in goods between its members.

In addition to the mutual trade liberalization, since 1994 the three EFTA participating States - Iceland, Liechtenstein and Norway have had the Agreement on the European Economic Area (EEA) with the EU. The EEA Agreement provides for the inclusion of EU legislation covering the four freedoms — the free movement of goods, services, persons and capital — throughout the 31 EEA States (28 EU Member States +  3 EFTA Member States). Switzerland is not formally a part of the EEA Agreement, but has bilateral agreements with the EU, which in essence also implies harmonization of legislation.

Moreover, by concluding a number of free trade agreements with third countries around the world, the EFTA States have created one of the world's largest free trade networks.

Bosnia and Herzegovina concluded an asymmetrical agreement with the EFTA States, which implies that EFTA will abolish all customs duties on imports of industrial products, processed agricultural products and fish originating in Bosnia and Herzegovina on the day of the entry into force of the Agreement. In a given transitional period Bosnia and Herzegovina shall reduce its customs duties.

Additional Agreements on Trade in Agricultural products between the individual EFTA States and BiH form an integral part of the establishment of a free trade area.

 European Free Trade Association (EFTA): http://efta.int/