Distribution of Agricultural Products Within the CEFTA-2006, Case of Bosnia and Herzegovina

Free trade zone are spatially specific areas, separate from other government and customs territories in which they are, more or less, suspended national, customs, foreign exchange, foreign trade and tax regulations of the country of domicile, privileges, exemptions and incentives attract foreign and domestic investors to invest their resources in industrial production, processing, refinement and preparation of goods for the market, as well as the tasks of storage, distribution, exportation, importation and transportation of goods in order to increase the international competitiveness of goods. Agricultural products have a special place in free trade zones, because the limited scope of liberalization in agricultural products (Cejvanovic et al. 2009). In December 2006 in Bucharest signed the amending agreement and the accession of Central European Free Trade Agreement (CEFTA). Name of the agreement was changed to title CEFTA-2006. The signatories to the CEFTA-2006 are: the Republic of Serbia, the Republic of Albania, Bosnia and Herzegovina, Croatia, Macedonia, Republic of Moldova, Republic of Montenegro, the Republic of Romania, the Republic of Bulgaria and UNMIK / Kosovo. Romania and Bulgaria have withdrawn from the CEFTA-2006 01 January 2007, it became a full member of EU. It entered into force in the second half of 2007. year. The main aim of this paper is to present and analyze the effects of the CEFTA-2006 in the foreign trade of agricultural products in Bosnia and Herzegovina, with members of the CEFTA-2006. CEFTA-2006 had an impact on the composition and volume of foreign trade of agricultural products of Bosnia and Herzegovina and other states within the CEFTA-2006.