WORLD TRADE
ORGANIZATIONWT/MIN(03)/ST/158
13 September 2003
(03-4924)
MINISTERIAL CONFERENCE
Fifth SessionCancun, 10 - 14 September 2003Original:  English
BOSNIA AND HERZEGOVINA
Statement Circulated by the Minister of
Foreign Trade and Economic Relations
(As an Observer)
First of all, on behalf of the Government of Bosnia and Herzegovina, I wish to express my
gratitude to the Government of Mexico, and people of Mexico for the warm welcome and excellent
organization of the Fifth Ministerial Conference of the WTO.  I would like to thank the Chairman ofthe General Council, Director-General and WTO Secretariat for the preparatory work done in Geneva.
Their tireless efforts over the past months laid the groundwork for a successful meeting here in
Cancún.
We are here today, because we believe that the strategic objectives launched (as a new global
round multilateral trade) in Doha and it has been launched and negotiated in Doha and will besuccessfully finalized in Cancún.  We are strongly convinced that international trade has been the
most important vehicle of growth and world economic integration for many decades, though at the
same time we observe that its benefits still privilege the developed countries.
Doha has determined and shaped the future of the multilateral trading system and in Cancún
efforts should be focusing to rectify the existing  imbalance in the rules and systems.  Imposition of
new obligations on developing countries will be counterproductive for the functioning of both the
multilateral trading system and the developing countries concerned.
The liberalization of trade in the world is one of the major priorities of all the countries
including Bosnia and Herzegovina.  Bosnia and Herzegovina's economy is highly trade-dependent.
Export growth is the main driving force of our economic development agenda.  The country's major
trade policy objective is the integration of national economy into the global economy.  As a small
country, Bosnia and Herzegovina is strongly interested in maintaining a well-functioning multilateraltrading system, which is committed to ensuring balance between rights and obligations.
We especially pay attention to the regional free trade agreements.  In line with that, Bosnia
and Herzegovina signed the Memorandum of Unders tanding on trade liberalization and facilitation in
South-East European countries.  We have signed free trade agreements with all countries of this
region.  We wish to point out that in those agreements we liberalized 100 per cent of the tradeincluding the agricultural products which is completely in line with WTO rules, provisions and
regulations.
Bosnia and Herzegovina started its process of accession to the WTO in July 1999 by
obtaining Observer status, realizing all the importance of the liberalization of trade.  Since then, we
put all our efforts to adjust existing legislation and to adopt all necessary legislation in accordancewith WTO rules, provisions and regulations.  Also, we did a lot to raise the public awareness on WTO
issues.
At present we are focused on the preparation of the necessary documentation as well as initial
offers in the field of goods and services.  It is our intention to speed up the procedure of conveying theWT/MIN(03)/ST/158
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first working group, and in that course to speed up the process of accession of Bosnia and
Herzegovina to the WTO.  Bosnia and Herzegovina will be ready to become a fully-fledged Member
of the WTO in 2004, assuming the observance of the balance of interest, cost and benefits of WTO
membership.  We agree that achieving an objective such as an accession to the WTO is not an easy
task.
To make the accession process to WTO less painful, we would like to urge:
• The further increase of technical assistance to developing countries and countries in
transition;  and
• general increase in solidarity towards developing countries, countries in transition and
LDCs.
Membership of Bosnia and Herzegovina in WTO and expected effects should be regarded in
the context of the Bosnia and Herzegovina development policy, having the features of recovery,
transition and growth.  As a country, that experienced enormous destruction with an obsolete
economy, Bosnia and Herzegovina is turned towards the international in the light of providing
necessary development resources and competition capacities.
The prospect for development of Bosnia and Herzegovina economy in many respects depends
on overcoming crisis situations in certain industries, structural reorganization and completion of
reforms.  For Bosnia and Herzegovina, it is extremely important that WTO Members refrain from
requesting from Bosnia and Herzegovina overly rigi d and excessive commitments, as compared to the
obligations of existing WTO Members.  It is also very important for the economy of Bosnia and
Herzegovina to receive the right to appropriate transitional periods for tariff reduction and during the
implementation of the TRIPS provisions.
From the developed countries and WTO we expect more attention and understanding for the
problems of developing countries and/or their approval of a special and differential treatment to the
developing countries and countries in transition - and consequently to Bosnia and Herzegovina.
Membership in WTO will have positive effects on:
• Removal of barriers in trade of goods and services;
• utilization of the most-favoured nation and national treatment;
• introduction of international standards;
• adjustment of the local economic regulations;
• better quality of local goods;
• higher competitiveness of local companies;  and
• reduction of prices for goods and services.
In the course of the Round of the multilateral trade negotiations, interest of developing
countries and countries in transition need to be taken into account including WTO extension to new
Members on favourable terms.WT/MIN(03)/ST/158
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In conclusion, we would like, once more, to stress that the accession to WTO is among the
main priorities of Bosnia and Herzegovina, and that we  will continue to put great effort in that process
of accession to WTO, as well as in the future  work of the Organization as a Member country.
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