Bosnia and Herzegovina plans to abolish Customs America and save the intended industry – BBC News in Serbian

If the decision on new American customs customs, some factories could be endangered, and hundreds of workers remain unaffected, the owners and economic analysts would be warned.

« I don’t believe any of us can survive, if you are introduced by customs, » says Adnan Cengic, director of the company Pobjeda Tehnolozodi (Technology win) From Gorazde, for the BBC in Serbian.

It is one of the three companies of the dedicated industry in Goražde, the city on the coast of the Drina River, in the East of Bosnia and Herzegovina.

These factories employ a thousand people from town with 20,000 inhabitants, but also the surrounding municipalities.

Cengic has 315 workers, and produces sports, hunting and economic ammunition.

Since 2012. 70 percent of the product are exported to the American market, so now, the final decision is awaiting the introduction of the Customs Customs Rate from BiH.

The current customs rate amounted to 12 percent, and the new decision of the US President Donald Tramp rate on the import of goods from BiH is as much as 35 percent.

Cengic hopes that the tramp administration, however, will withdraw the decision.

« No one is ready for that scenario and this was found to find us. »

Bosnia and Herzegovina is one of 180 countries to introduce new customs rates.

This Balkan country, according to official data, mostly exports the products of a dedicated industry (colloquial: military) – more than 60 percent of total exports.

« More than 25 million euros are products of metal and electrical industries, about 7.5 million euros are the products of the chemical industry, » they say from the foreign trade chamber of BiH.

A smaller part of exports consists of food and wood industries products.

At the time of publication of text, from the Council of Ministers, BiH, it was announced that the decision on the temporary suspension of the Customs on the import of goods from America was prepared.

Staša Kotarac, Minister of Foreign Trade and Economic Relations of BiH, he said 8. April that the decision was made at the initiative of the top of Republika Srpska, one of the two BiH entities.

It is currently difficult to calculate the effects of the introduction of customs and make projections of total damage to BiH economy, they say the competent.

This could cause problems if there is disruption in other markets, essential for the Bosnian-Herzegovinian economy.

What branches of the economy are the most endangered?

The two countries do not have a significant commodity exchange, because Bosnia in the United States exports goods worth 120 million euros, while the import of American goods 2024 was worth only 97.4 million euros.

However, as well as Serbia, indirect consequences could be much higher on the economy of BiH due to the US Customs introduced by the European Union, the largest foreign trade partner of BiH.

« The volume of trade of BiH with the United States makes up about one percent of total exchanges with the world, » data are foreign trade chambers of BiH.

Customs opening on the goods from BiH became at once three times higher, so Bosnian-Serbian-soldier is expected to sell in America in the future.

« Our products in the American market overnight become less competitive.

« It will not have a significant effect on the overall economy of Bosnia and Herzegovina, » the economic analyst ADMIR Čavalić for the BBC.

However, the possible customs trade war war and the United States can have long-term negative consequences at the economy here, adds.

« First of all, in the context of falling demand for our products in Europe due to slowdowns that could cause a trade war. »

Consequently, this would lead to problems for exporting, closing companies, production and cancellation.

« Paradoxically, it is more important for us, which is currently happening in Brussels than in Sarajevo.

« However, Bosnia and Herzegovina should not watch what is happening, » says Cavalic.

From the Foreign Trade Chamber of BiH, BiH explains that companies from BiH are most of the products exported to the European Union market.

And those industries that are indirectly exported to the United States, they can feel problems.

« If the customers of our EU products are forced to increase the price of the product due to the imposed customs, it can reduce their demand, » they say in VTK.

They estimate that the greatest consequences will be for the metal and autoindustrial of BiH, which delivered a significant number of products to EU suppliers.

« As a result, we will have pressure on productivity, employment, as well as increasing costs and starting inflation spirals.

« There are justified concerns that these measures will endanger companies that have worked so far on productivity threshold, » warns of VTK.

In the Voice of Adnan Čengić, I hear optimism, but there is no answer to the question whether their firm survives customs duties of 35 percent.

« Very difficult, serious changes within the company would have to be introduced, » he added the owner of the factory in Goražde.

This is, he tells me, the biggest challenge that they met lately.

In case the United States remains at the original decision for the manufacturer of ammunition from BiH, which is used in American shooting men and in competitions it would be impossible to find another solution to the short term.

« Because 70 percent of world spending for civilian use goes for America, so it is very difficult to find alternative markets, » says Cengic.

‘Cancer abolition is a solution’

The only thing I can do at this moment is, considered to prepare a new bilateral trade agreement that will involve relief of foreign trade with the United States.

« Bosnia and Herzegovina has no option to consider reciprocal measures towards America, and it does not even make sense.

« If necessary – put customs ‘to zero’ and abolish them, especially because they are not as high, » said Cavalic.

From VTK, which is an independent, non-governmental, non-political and non-profit association of economic entities from BiH, will now be exported in other markets.

BiH’s response will largely depend on the European Union’s response, which considers reciprocal measures, but at the same time shows the readiness for dialogue.

While the market after new customs rates do not stabilize economies around the world overtime.

« All this will strengthen the recession of the recession, » they say in VTK.

When explaining the new customs rates, the American president said the fact that the import of American goods in BiH was 70 percent.

But Cavalic explains that it is not a customs load in that percentage.

« The tramp formula is different and it looks at the deficit and export of another country to the United States.

« According to that relationship, it is stated in the table that I would have some 70 percent of the load, but does not think of customs loads than on the surplus that I will have in external trading with the United States. »

Therefore, Bosnia would benefit if a new trade agreement would be made according to which two countries would abolish customs duties, Cavalic considered.

Cavalic gave a statement to the associates of the BBC in Serbian several hours before the decision on the abolition of customs on the import of goods from America was announced from Sarajevo.

Minister Košac said that the draft decision could be addressed to the Ministers Council by the end of the week.

« Our proposal is that goods originating from the United States be completely exempt from customs bases, which means that it would be zero rate of customs, » says Košac.

That would, he would indicate negotiations with the American administration that would lead to the free flow of goods between BiH and the United States.

Can larger customs be good for BiH?

The United States had a key role in stopping the bloody war in BiH in the 1990s during which about 1,600,000 people were killed.

A peaceful solution for the interruption of war has been achieved on the American soil and agreed agreement as part of which the text of the Constitution of BiH.

For decades after the war, Washington was an important partner of the post-conflict state of BiH, and American diplomats often had an impact on internal political events.

The current mentoring relationship of the United States according to Bosnia has now placed this state in rank with the world’s largest forces.

« Customs are certainly a political message: ‘Turn yourself, don’t look that now or someone else saves you, » Milos Solai, professor at the Faculty of Political Science in Banja Luka.

An internal agreement on further steps must arrive, and the decision of the American authorities could contribute to the more independent treatment of Bosnia.

« This tariff decision has shown that the United States will be viewed as part of global processes, instead of special sensitivity. »

Solaya sees everything as an opportunity to change behavior in BiH.

« To solve problems with your own forces, not expect someone to give us something. »

Watch the video: Penguins, Foxes and Tramp – Tramp’s introduction of customs Islands where there are no people

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