CONTRIBUTION OF CEFTA AGREEMENT TO THE DEVELOPMENT OF CEFTA ECONOMIES - EXAMPLE OF BOSNIA AND HERZEGOVINA
Abstract: Implementation of the “CEFTA 2006” agreement lasts for ten years, and in order to make explicit the importance of the agreement it should be presented base contribute to the economy of the Member States. Through this work it will be shown the contribution agreement for economic activities in Bosnia and Herzegovina. The main contribution is increasing in trade among the member countries of the agreement and preparing for full membership in the EU, also adapting to the standards and conditions in the EU market. This statement is characteristic also and for Bosnia and Herzegovina. With the application of other trade agreements the basic goal of Bosnia and Herzegovina trough implementation of CEFTA 2006 is to extent adequate preparation for accession to full membership of the European Union. This agreement is an agreement on free trade in industrial goods and most agricultural goods between member states, the agreement defines the equal treatment of domestic and foreign investors, as well as the openness of public procurement markets. Certain studies prove positive direct and indirect effects of CEFTA Agreement on economic growth, the objective of the study is to confirm the link between the services and the productivity of the manufacturing companies that rely on the services sector as an input product. This paper will indicate the impact of the agreement on the economic development in Bosnia and Herzegovina, in terms of trade relations with member states of the European Union and member countries of the CEFTA agreement. Since CEFTA acting as a preparation for membership of the European Union, countries that have signed the agreement on the EU full membership withdrawn from the CEFTA, which is also the main goal of Bosnia and Herzegovina.
Key words: Economic integrations, Europian Union