With the support of the European Commission 1 WTO: The membership negotiations and the occurred problems Emir Djikic Tirana, October 21 st 2005 With the support of the European Commission

2 Start of the Process May 18 th 1999 BiH Presidency made the decision to start Accession process to WTO May 1999 Official submission is made to the WTO Secretariat July 15 th 1999 BiH obtained the Observer status to the WTO and the Working Party is established WP Chairman is H.E. P.R. Jenkins

With the support of the European Commission 3 Real Work starting Formulation of the Negotiation Team Narrow Team and Broad Team established Preparation of the Foreign Trade Memorandum Memorandum Submitted in September 2002 to WTO Secretariat with 30 relevant laws Problems in gathering data, lack of data, HR capacities in the Governments

With the support of the European Commission 4 Clarification process 3 Rounds of questions - First round 326 questions - Second round 110 questions - Third round 84 questions Submission of the additional documentation: Legislative action plan, Domestic support, Services TRIPS, SPS/TBT

With the support of the European Commission 5 Offers BiH Prepared offers in goods and services and submitted them to the WTO Secretariat in October WP meetings until now

With the support of the European Commission 6 7 November December 2004 Meetings of the Working Party5. 5 September November 2003 Questions and Replies4. 10 October 2002Memorandum3. Chairperson: Mr. P.R. Jenkins (United Kingdom) 15 July 1999Working Party Established2. 11 May 1999Application Received1. Key dates

With the support of the European Commission 7 Draft Working Party Report9. Factual Summary8. 14 October 2004Services Offer 15 October 2004Goods Offer Market Access Negotiations7. 14 October 2004(f) Legislative Action Plan 5 September 2003 (e) TRIPS (WT/ACC/9) 5 September 2003 (d) SPS/TBT (WT/ACC/8) 5 September 2003 (c) Services (WT/ACC/5) 17 September 2003 (b) Agriculture (WT/ACC/4) 14 October 2004(a) Additional Questions & Replies Other Documentation6. Key dates

With the support of the European Commission 8 Sectoral Priorities 16 initiatives Zero for zero and harmonization requirements Agricultural equipment, beer, Civil Aircrafts, Construction equipment, Distilled alcohol, Fish and fish products, Furniture, IT, Medical equipment, Metals – excluding iron, oilseeds, pharmaceuticals, Steel, paper and Scientific equipment (Zero for Zero) Chemical industry (Harmonization on 6,5-5,5%)

With the support of the European Commission 9 Example – Harmonization in the Chemical Industry HS Chapter: 28 5,5 % 3, % 4, ,5 % 1, ,5 % 0, % 2,8 31 6,5 % 2, ,5 % 4, ,5 % 5, ,5 % 7, ,5 % 4, ,5 % 4, ,5 % 6, ,5 % 2, ,5 % 7,43

With the support of the European Commission 10 Applied Custom Tariff – basis for negotiations Average ad valorem tariff is 6,4% Agriculture (HS 1-24 excluding fish 3) 5,26% + specific duty for 851 product Low tariff should provide to BiH not difficult accession negotiations

With the support of the European Commission 11 Domestic support Insignificant support in the base period ( ) Preparations of new base period ( ) No export subsidies (no commitment either)

With the support of the European Commission 12 Services Liberalized services sectors Problem with audiovisual services (US – EU)

With the support of the European Commission 13 TRIPS Legislation in preparation Conventions in process of signature Main problem is implementation

With the support of the European Commission 14 Problems Most of exports and imports with FTA and EU countries (cca. 90%) More of problems in the disciplines implementation then in trade Not enough capacities to cover all WTO areas Lack of coordination Parallel process of WTO Accession and SAA Negotiations and unification of the processes Potential loss of revenues

With the support of the European Commission 15 MAIN PROBLEM SELL IT HOME

With the support of the European Commission 16 THANK YOU FOR YOUR ATTENTION