REGIONAL COOPERATION AND ECONOMIC INTEGRATION

The direct and indirect consequences of the crisis will be of such magnitude that significant
changes are inevitable in economic policies and institutions.
Current economic crisis has brought in potentially adverse effects on further, political and
social stabilization in the Western Balkans, whilst economic slowdown may additionally
influence the developments agendas in the region, as well as, raises a question of CEFTA
agreement’s full implementation. In addition, the Bosnian Parliament has adopted a law
envisaging better protection of local farmers against imported goods from neighboring
countries (Croatia, Serbia and Montenegro).For the first few years, BIH has officially
had preferential treatment in trade relations with neighboring countries. Yet, it failed to
capitalize on that, as Serbia and Croatia, as well as some of other countries, managed to
limit Bosnian import through other measures. The situation is even worse now than when
Bosnia has equal status with all other countries, and is being overwhelmed with imported
goods from Serbia and Croatia.
A worsening economic and social situation in the country, suffering from the growing
effects of the global economic downturn, has renewed requests from local farmers and
producers for better government protection. Some Bosnia’s officials defended this position
by citing CEFTA regulations which, according to them, allow unilateral measures such as
this in a case of larger trade imbalances. “Bosnia and Herzegovina is a member of CEFTA
and cannot behave like this”, said Doris Pack, member of European Parliament.
The global economic turmoil is, perhaps, one of raisons for countries’ selfish behavior,
but could not be resolution of the problems, especially if the country is a member of some
regional integration, such as CEFTA. In such circumstances, the Regional Cooperation
Council as a successor of the Stability Pact, carried out its substantial activities with a
view to creating an atmosphere for the region to double its efforts to keep the European
partners, international organizations and financial institutions (IFTs) as well as other
partners engaged, by enhancing regional cooperation, applying the necessary EU accession
reforms, and taking a pragmatic and flexible stance towards open bilateral issues in the
spirit of cooperation, understanding and good neighborly relations.
CONCLUSION
CEFTA-2006 TRADE COOPERATION
CEFTA 2006 is achievement of the regional co-operation in SEE countries promoted
by the Stability Pact. CEFTA is all about business making the rules and regulations
governing trade in the region simpler and increasingly harmonized with those of the EU
and the WTO.
The expansion of CEFTA will probably lead to a modest increase in intra-regional trade
flows. However, given the dominant role of trade with the EU for most countries in the
region, and infrastructural and other impediments to regional trade in the total trade of the
CEFTA -8 is unlikely to increase substantially. CEFTA expansion will also not ease the
worries of south-east European countries about the likely slowdown in EU enlargement,
and may even intensify these concerns. The credibility of the accession process has been
gravely weakened by increasing “enlargement fatigue” within EU and a string of negative
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