The Government of the Federation of Bosnia and Herzegovina considered the supplemented information of the line ministry regarding the proposal of the Decision on the introduction of a temporary protective measure during the import of steel and steel products.
The previous opinion was invalidated, and a new proposal was proposed, which is based on the principle of reciprocity for the already introduced measures of Serbia towards our country.
Concern was also caused by the new proposed customs rate of 30 percent, with equal application to all countries, including the member states of the European Union.
The proposed model can lead to additional price increases, from housing, construction works and infrastructure projects, to legal uncertainty for companies that already have concluded contracts.
The Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina, Staša Košarac, said after today’s session of the Council of Ministers of Bosnia and Herzegovina that the ministers were informed about the change in the position of the Government of the Federation of Bosnia and Herzegovina regarding the introduction of protective measures on steel.
Košarac: Introduce protective measures, but not only towards Serbia
Košarac believes that Bosnia and Herzegovina needs to develop an awareness of the protection of domestic production, as, he says, the neighboring countries are doing.
“The FBiH government has withdrawn its previous positive opinion for protective measures, and I think that there is a confusing factor and ignorance in the matter. The conclusion they submitted is, to put it mildly, clumsy,” said Košarac.
According to him, the FBiH Government requests that the Council of Ministers introduce protective measures directly to certain countries, which would mean the introduction of customs duties.
“They demand that the measures apply exclusively to Serbia, and I will never propose that,” said Košarac.
He emphasized that the import of steel from Serbia has decreased, while it has increased from Turkey and Italy, and that, according to this logic, protective measures should be directed towards countries from which imports have increased.
Government of FBiH: Against the linear customs duty of 30 percent
The Government of the Federation of Bosnia and Herzegovina considered the amended information from the Federal Ministry of Energy, Mining and Industry regarding the proposal for a decision on temporary protective measures for the import of steel. Although she gave a positive opinion at the end of January, she later invalidated the earlier consent because the text sent to the Council of Ministers was not identical to the one that was considered.
Particular concern was caused by the proposed customs rate of 30 percent, with equal application to all countries, including members of the European Union.
The FBiH Government warns that such a measure could lead to an increase in prices on the domestic market, an increase in the price of housing and infrastructure projects, a decrease in investments, and legal uncertainty for companies with already concluded contracts.
Reciprocity and international obligations
The Government of the FBiH proposes the development of a new proposal that would be based on the principle of reciprocity according to the already introduced measures of the Republic of Serbia towards BiH, but with full respect for international obligations, including the CEFTA agreement, the Stabilization and Association Agreement and the rules of the World Trade Organization.
They also indicate the need to introduce clear technical standards and stronger quality control of imported steel.
“The protection of domestic industry and jobs is a high priority, but we must approach this process with a comprehensive analysis and preserve the international credibility of BiH,” said Federal Minister of Energy, Mining and Industry Vedran Lakić.
