Sjednice
Council of Ministers Holds Its 17th Session
07/05/2023
The Agreement creates a legal framework for institutional cooperation between the two states for the aim for expanding and diversification of mutually beneficial economic cooperation in areas of shared interest. Cooperation should include, among other things, review of prospects of bilateral economic relations and development, research of possibilities for joint access to the third markets and encouraging cooperation between economic operators.
The Proposal Agreement will be provided to the BIH Presidency for further procedure, with a proposal for the Minister of Foreign Trade and Economic Relations to be the BIH signatory thereof.
NEW DECSIION ON SETTING-UP COUNCIL FOR DISABLED PERSONS
The Council of Ministers of BIH took the Ministry for Human Rights and Refugees-proposed Decision on setting-up a Council for Disabled Persons of Bosnia and Herzegovina, with certain corrections made at the session.
It is about a new decision to replace the previous one, from 2011, when forming the Council for Disabled Persons as an expert, advisory, cross-sector and coordinating body of the Council of Ministers of BIH.
The new decision defines that the Council for Disabled Persons of BIH should have 30 members, namely, from responsible State, Entity and the Brčko District of BIH institutions, as well as representatives from three disabled persons associations, from the Federation of BIH, Republika Srpska and the Brčko District of BIH. This expanded composition of the Council by representatives from the European integrations-relevant bodies, includes those from education and science institutions from the Federation of BIH and Republika Srpska.
The Council is responsible, among other things, for human rights promotion of disabled persons, initiation and active participation in development, adoption and monitoring of strategic action plans and relevant laws and by-laws, as well as for coordination of activities with responsible bodies and institutions in BIH, and cooperation with relevant international government and non-government sector.
INITIATIVE LAUNCHED FOR APPOINTEMTN OF COMMITTEE FOR REFUGEES AND DISPALCED PERSONS
The Council of Ministers of BIH defined a Proposal Decision to appoint Bosnia and Herzegovina Committee for Refugees and Displaced Persons of, to be passed by the Ministry for Human Rights and Refuges to the BIH Presidency, responsible for the adoption thereof.
The Committee will have nine members, three from each people, and it includes the state Minister for Human Rights and Refugees and three representatives from the Council of Ministers of BIH, and two representatives from Entity Governments and one form the Brčko District of BIH.
The Committee responsibilities, defined in the Law on Refugees of Bosnia and Herzegovina and Displaced persons in BIH, are approval and financial supervision of reconstruction and return projects, to be proposed by the Ministry of Human Rights and Refugees, in addition to approval of joint projects to be realised through the Return Fund.
GROWTH OF OVERALL FOREIGN EXCHANGE IN Q 1 2023
The Council of Ministers of BIH adopted an Analysis of Foreign Trade Exchange of Bosnia and Herzegovina for I-III 2023, tabled by the Ministry of Foreign Trade and Economic Relations.
The total goods exchange of Bosnia and Herzegovina in the reported time period was KM 10.94 billion. The value of exported goods was KM 4.40 billion, and of the imported one was KM 6.54 billion, which produced a foreign trade deficit in amount of KM 2.14 billion.
The main features of the foreign trade exchange in Q1 223 relevant to the same time period last year were a growth of total foreign trade exchange (3.27%), of import (2.46%), and of foreign trade deficit (6.74%), while the coverage of import by export was reduced for 0.89% and at stands at 67.25%.
The main foreign trade partner of BIH is still the European Union, participating with 65.3% in total goods exchange volume, followed by CEFTA 2006 Agreement countries with 14.4%, while other countries participate with 20.3%.
Among trade partners, the major coverage of import by export is market with Austria (180.27%), Croatia (132.22%), Slovenia (131.84%), Germany (91.85%), and Serbia (87.57%).
Bosnia and Herzegovina exported in the Q 1 2023 mostly to Croatia (KM 701.50 million), Germany (KM 701.17 mil.), Serbia (KM 572.26 mil.), Austria (KM 444.72 mil.), and to Italy (KM 380.78 mil.).
Also, BIH imported mostly from Italy (KM 895.97 mil.), Germany (KM 763.39 mil.), Serbia (KM 653.46 mil.), China (KM 548.55 mil.), and Croatia (KM 539.56 mil.).
TO INCREASE USE OF TAIEX ASSISTANCE
The Council of Ministers of BIH adopted a piece of information by the Directorate for European Integrations of Bosnia and Herzegovina on use of the TAIEX assistance instrument of the European Union in Bosnia and Herzegovina for year 2022.
The piece of information follows a set of conclusions aimed to improve and increase a volume of use of this assistance instrument in accordance with recommendations from the 2022 European Commission Report on Bosnia and Herzegovina.
Bosnia and Herzegovina got approved 14 applications out of submitted 23 last year, most of them from the area of justice, freedom and security, freedom of movement of goods, transport and consumer protection.
According to the European Commission report on the level of use of TAIEX last year, Albania got approved 23 applications, Montenegro 45, North Macedonia 30, and the Republic of Serbia 19 applications.
In order to improve the use of the assistance instrument, the Directorate for European Integrations drafted an instruction for filling TAIEX application, and posted it at its web site.
BIH PROSPECTS 2023-2026
The Council of Ministers of BIH took note of a piece of information by the Directorate for Economic Planning on prospects of Bosnia and Herzegovina in 2023-2026 time span.
According to the DEP projections,, in time period of 2023-2026, BIH may expect economic growth of 3% annually at average, and the main growth leverage should be domestic demand through increase of private spending and investments, though in somewhat less volume.
Movements within industrial production in BIH will depend from, aside from the economic trends in the surrounding, reform measures implementation for improvement of the business ambience. Under realisation of both external and internal presumptions, the DEP projection is that BIH might, over the relevant time frame, realise average annual growth rates of industrial production physical volume of 2.2%-4.8%.
An increase of employment is expected in 2023, but somewhat slower relevant to the year ago (1.6%), and increase of an average net salary might rich 11% relevant to the year before, while with more favourable business climate in both BIH and the surrounding, as well as in EU countries, an increase of number of employees in 2024 is expected to reach 1.7%.
Considering price trends of energy and food at the world markets and inflation projections in the EU, and having regard of stable utility prices in BIH, the DEP projects inflation in BIH at 3.1% in 2024, 2.5% in 2025 a, and 1.9% in 2026.
POSITIVE OUTCOMES FO TEMPORARY SUSPENSION AND DECERASE OF COSTOMS RATES
The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic relations-tabled Report on application and effects of a Decision on temporary suspension and decrease of customs rates for import of certain goods by Dec. 31, 2022.
From the Law on Customs Tariffs taking effect, the Council of Ministers of BIH took 11 decisions on temporary suspension and decrease of customs rates for import of certain goods.
Goods covered by these decisions are materials and raw materials, which are used by domestic producers in their own production, and which cannot be procured at domestic market in quantities and quality required for production of final products, and this being the main criterion for inclusion into the annually defined list of goods.
These decisions enabled more favourable and competitive business making by business entities in textile industry, of leather and footwear industry, chemical, metal and electro industries, in addition to graphic, food procession and wood procession industries, and furniture industry.
The report suggests that the decision application yielded many positive effects in terms of investment, labour increase, price competitiveness, increase of production and export volume, and other positive economic indices.
Data from the decision beneficiaries show that its application resulted in 1.176 newly employed workers, investments reached about KM 105.557.000, and revenues were KM 1,148.583,892 the least. Companies’ revenues increased for KM 335,424,036 at least, and majority of the companies increased their number of employees, along with increased production, coupled with higher revenues and export.
Beyond a decrease of costs of raw materials, the Decision affected diversification of supply chains and business making stability, with equal conditions of supply from those countries with which Bosnia and Herzegovina has no concluded a free trade agreement.
FLOOD REHABILITATION IN FLOODED AREAS IN BIH
The Council of Ministers of BIH took note of a conclusion from the 20th and conclusions from the 21st sessions of the BIH Presidency, held on June 6 and June 15, respectively, referring to rehabilitation from damage made by stormy weather and floods in many municipalities and towns in BIH.
The Council of Ministers of BIH reserved earlier KM one million for the purpose of rehabilitation from damages caused by floods in BIH.
It concluded that the Ministry of Security of BIH should draft a proposal decision, and the Ministry of Finance and Treasury of BIH should report on the status of the current BIH Budget reserves.
APPOINTMETNS
The Council of Ministers of BIH took note of a rang list of the most successful candidates for selection of the BIH Police Support Agency Director, and appointed Enver Hadžiahmetović, as the best ranked candidate after completion of a public job vacancy ad procedure.
The appointment decision takes effect as at day of its adoption and will be applicable day after its publication in the “Official Gazette of BIH”.
Husein Naić was released from his post of Director as his term expired, and a decision on his release takes effect as at day of adoption, and will be applicable as at day of its publication in the “Official Gazette of BHI”.
The Council of Ministers of BIH appointed Alan Husković for Acting Deputy Director of the Agency for Forensic Research and Expertise of Bosnia and Herzegovina to the end of a job vacancy ad procedure for three month mandate, starting with the decision application as at July 1, 2023.
VISA-FREE REGIME FOR CITISENS OF SAUDI ARABIA DURING TOURISTIC SEASON IN BIH
The Council of Ministers of BIH took unanimously the Ministry of Foreign Affairs-proposed decision on amendments and supplements to the decision of visas.
Under the decision, visa regime for citizens of the Kingdom of Saudi Arabia is rescinded for their citizens staying in Bosnia and Herzegovina in a touristic, short business or private visit in time period from July 7 to October 1, 2023, and length of stay on these grounds is 30 days.
This way, the Council of Ministers of BIH attempts to provide additional support to the economic sector and increase touristic visits to Bosnia and Herzegoina.
Also, for citizens of the Kingdom of Bahrein a visa regime will be applied on September 1, 2023, due to harmonisation of Bosnia and Herzegovina visa policy with that of the European Union, of which the Kingdom of Bahrein will be reported timely.
NO CONCENSUS ON MOUNING DAY IN BIH
The Council of Ministers of BIH failed to reach consensus on declaring July 11 for a mourning day in Bosnia and Herzegovina, proposed by Deputy Chairman of the council of Ministers of BIH Zukan Helez. (end)