The metal sector in the Zenica-Doboj canton has been the backbone of economic development for many years, and in recent years it has recorded a growth trend. However, after the customs restrictions introduced by Serbia, this branch of the economy, which accounts for about 40 percent of the total export of Bosnia and Herzegovina, is seriously threatened by the danger of multi-million losses. While the consequences are still being added up, the reactions of the authorities that need to deal with the problem are still missing.
During the last year, about 60,000 tons of steel were exported from the Zenica Ironworks to the European market. However, with the introduction of CBAM taxis, this company lost its competitiveness. The introduction of quotas on imports from Serbia further burdened the business. From the previous 210,000 tons per year, if the quotas remain in place until the end of the year, exports to that market will fall, according to estimates, to around 140,000 tons.
“We didn’t expect that it would be implemented so quickly by Serbia. Serbia is a big market for us, and on a daily level, both in sales and in logistics, the problems are getting bigger every day,” points out Ahmed Hamzić, director of Nova železara Zenica.
Last year, it recorded a growth of about 47% in production. By fulfilling the quotas for exports to Serbia, exporters from this canton, as well as the entire country, will have to accept losses. The Minister of Economy of the Zenica-Doboj Canton, Samir Šibonjić, does not see this as worrying.
“For sure, this will affect the export itself. Iron of lower quality than ours often comes to our market, and it would not be bad to try to protect the domestic producer as a higher quality one,” says Šibonjić.
The workers do not share these views and warn against, as they say, the indolence of the authorities.
“We received information that they found out about this problem from the media. So, no letter from the line ministry, the Council of Ministers of Bosnia and Herzegovina regarding this issue has come. They have confirmed that this is indisputably a violation of three articles,” says Kenan Mujkanović, president of the Zenica-Doboj Canton Metalworkers’ Union.
Earlier, the minister in charge, Staša Košarac, announced that the introduction of quotas or tariffs is being considered with the aim of protecting steel producers in Bosnia and Herzegovina. We did not receive an answer from the competent ministry when we asked when specific steps would follow. In the meantime, the Government of the Federation also gave a positive opinion on the Decision on the introduction of a temporary protective measure during the import of steel and steel products, but this decision is also in the hands of state authorities.
“More than a month has passed – there is no concrete reaction. The question arises in whose interest is the relevant state ministry working – in the interest of Bosnia and Herzegovina or Serbia”, says Mujkanović.
The profession believes that, among other things, for an important segment of the economy of the Federation, until there is an adequate response to the measures from Serbia, new opportunities are opening up.
“Ours is to look for new markets, to take advantage of the current situation we have with China and the so-called mean shoring effect, that is, looking for suppliers that are closer to Europe and the European Union,” points out Armin Hodžić, director of the Energy Sector at the FBiH Chamber of Commerce.
The extent to which the latest measures with the earlier introduction of CBAM taxis have had consequences will be known only after February, and the first forecasts are not optimistic, given that the largest exporter, Zenica Ironworks, already during January achieved a placement on the foreign market that was 50 percent smaller than previously planned.
