CUSTOMS TARIFFS TO BE APPLIED IN CRO-BOSNIAN TRADE AS OF MAY 15

ZAGREB, May 14 (Hina) - As of tomorrow, May 15, customs tariffs will be imposed on the trade between Croatia and Bosnia-Herzegovina. The introduction of customs tariffs is the consequence of a decision of Bosnia's three-man Presidency of April 20 to stop implementing a Contract on the Economic Cooperation between Croatia and the Federation of Bosnia-Herzegovina. In this way, an act on customs tariffs comes into effect. In order to protect Croatia's economic interests, the Croatian Government subsequently decided to introduce a customs regime for all goods imported from Bosnia. The decree is to come into effect tomorrow, Economy Minister Nenad Porges told Hina on Thursday. The introduction of customs duties will make considerably more difficult the commodity exchange between the two neighbouring countries. Thus, Croatia's products imported in Bosnia will become more expensive by 5 (five) to 40 percent whereas prices of Bosnia's products in Croatia will rise between 5 (five) and even 70 percent, said Olgica Spevec, an official in the Croatian Economy Ministry. Recalling that a platform for a new trade agreement between the two countries was defined by the Croatian Government in May last year, Minister Porges assessed that two to three weeks of the implementation of customs would open a space and speed up considerations on the continuation of serious negotiations on the proposed document. Almost one year passed before the first meeting between Croatian officials and a Bosnian delegation without representatives from the Bosnian Serb entity, which was held this March. According to Croatia's proposal, the trade ties between the two states will be solved by two agreements. One of them should be an agreement on the trade between Croatia and Bosnia-Herzegovina, which should help solve, at a state level, the issue of the liberalisation of the commodity exchange in line with the international practice and guidelines given by the World Trade Organisation and the Dayton Accords. A part of trade relations will be covered by an Annex to the Agreement on Special Relations between Croatia and Bosnia's Croat- Moslem Federation which can replace the suspended deal on the economic cooperation, the Economy Ministry explained. The trade between Croatia and Bosnia totalled 809.9 million dollars last year when Croatia's exports were valued at 653.8 million whereas Bosnia's products imported in Croatia amounted to 156.1 million. (hina) ms