KOŠARAC: SRPSKA PRESIDENT'S INITIATIVE TO ABOLISH CUSTOM DUTIES ON US PRODUCTS IMPORT JUSTIFIED

EAST SARAJEVO, APRIL 4 /SRNA/ - Republika Srpska President Milorad Dodik's initiative to abolish customs duties on the import of US products is fully justified, and represents an adequate measure and an excellent basis for us to be able to advocate the signing of a free trade agreement with the USA in bilateral negotiations, Minister of Foreign Trade and Economic Relations in the Council of Ministers Staša Košarac told SRNA.

"Since the customs-tariff policy is under the competence of the Ministry of Foreign Trade and Economic Relations, I have already given an order to my associates to start implementing this initiative in a way that we propose to the Council of Ministers a temporary measure of suspension of the customs rate for US products," said Košarac.

He has emphasized that he is ready to send this decision to the Council of Ministers for adoption next week.

"Specifically, in the first phase we would reduce the customs rates to zero percent for the products we import from the USA, so that we could negotiate in the second phase the signing of a free trade agreement. I want to believe that the competent institutions in BiH will be understanding and will accept this initiative by the President of Srpska as soon as possible," emphasized Košarac.

He has stated that the free trade agreement with the USA would mean a zero tariff rate, i.e. export-oriented companies from Srpska and FBiH would be able to export to the USA without hindrance and without customs burdens.

This, Minister Košarac pointed out in a SRNA statement, would be a great relief and support for businessmen, especially those who operate in the metal and military industry.

"Today, we are witnessing that producers from Srpska and FBiH, who export to EU member states, are facing great challenges due to problems and disruptions on the European market. This inevitably has a negative impact on domestic companies and makes their business more difficult. Such a situation negatively affects the balance of the total foreign trade exchange of BiH, i.e. there is a decrease in the volume of foreign trade exchange," Minister Košarac explained.

According to him, the free trade agreement with the USA would strengthen the domestic economy, significantly reduce dependence on the EU market and amortize the negative effects of disturbances on this market, but also open up new investment cycles.

"Also, it would enable companies from countries that do not have a free trade agreement with the USA to invest in their production capacities in Srpska and FBiH, i.e. for goods produced in BiH to be further marketed in the USA. For us, this would mean new investments, new jobs, and the improvement of overall economic opportunities," Košarac said.

He has pointed out that this is a responsible policy towards the domestic economy and an excellent chance to improve foreign trade exchange with the USA.