A statement issued after a government session said that the government discussed the minutes from a recent session of the Croatian-Bosnian committee on the implementation of the free trade agreement between the two countries and decided to temporarily suspend zero customs rate for some Croatian products.
The Bosnian members of the joint commission were entrusted with continuing talks with the Croatian side to remove the reasons which led to this decision, reads the statement.
Restrictive measures regarding the application of zero customs rate on imports were also introduced for some products from Serbia and Montenegro.
This means that agricultural products which receive export incentives will not be imported in Bosnia without customs duties until further notice.
Although this was not explicitly stated in the decision of the Bosnian government, the decision on the suspension of some parts of the free trade agreement with Croatia refers also to agricultural and food products.
For months now Bosnian authorities have been exposed to pressure by domestic farmers who have been seeking restrictive measures for imports, stating that they are unable to compete with exporters from Croatia and Serbia and Montenegro, who receive considerable government incentives in their countries.