Interview: SAA will launch BiH to new stage of EU integration

12/06/2008

Bosnia and Herzegovina is scheduled to sign the Stabilisation and Association Agreement with the EU on Monday. Southeast European Times correspondent Jusuf Ramadanovic spoke with BiH Directorate of European Integration Director Osman Topcagic about the process.

By Jusuf Ramadanovic for Southeast European Times in Sarajevo -- 12/06/08

BiH Directorate of European Integration Director Osman Topcagic. [ESI]

Southeast European Times: The date for signing of the Stabilisation and Association Agreement (SAA) for Bosnia and Herzegovina (BiH) is Monday (June 16th). Can we say that after a long period of insecurity, BiH is now slowly but surely steering into more peaceful waters, having in mind that this is the first major step towards the ultimate closing of the membership agreement with the EU?

Osman Topcagic: The signing of the Stabilisation and Association Agreement shall undoubtedly mean a new stage in the progress of BiH within the EU integration process. This shall be the first contractual relationship between BiH and the Union, thus also being the first concrete step towards prosperity, stability, democracy and other values symbolised and cherished by the family of EU nations. The signing ceremony, to be held [Monday] in Luxembourg, shall mark the recognition and valorisation of all the previous reforms within the EU integration process, and at the same time, it shall mean an obligation for BiH to continue with more efficient implementation of reforms on this path.

SETimes: Media reports have recently quoted you saying that once the SAA goes into effect, it would, among other things, cause a reduction in prices for some general consumer goods. Can you tell us more specifically what benefits, in your opinion, will the SAA bring to the ordinary people of BiH, economically and otherwise?

Topcagic: It is common to say that the [SAA] is a trade agreement. It is much more than that. It should contribute to the political and economic stabilisation of BiH and to the formation of close and permanent associations between our country and the EU. This means that the benefits are of a political nature, but for citizens, those of economic nature shall be most notable. The Interim Agreement, which will come into effect on July 1st and will be in application until the SAA has been ratified, contains segments pertaining to trade and transport, and these provide for reduction and cancellation of customs duties for specific products coming from the EU.

This will be a direct benefit for the citizens, because they shall have a broader choice of less expensive products available. This will also bring benefits for businesspeople, because they will be able to purchase equipment, raw materials and production machinery at lower prices.

The cancellation of customs duties will, however, also mean stronger competition for domestic producers. Instead of concern due to potential negative effects, this strong competition should encourage domestic producers to improve their business operations and strengthen their own competition in an even more open market after they have experienced opening of markets towards the countries of the region through application of bilateral free trade agreements and the CEFTA. In general, it is realistic to expect that the SAA signing shall also result in an improved credit rating for BiH, since some positive developments in those terms happened even following the very initialling of the Agreement last December.

SETimes: What specifically is the role of your BiH Directorate for European Integration in the SAA process? How does it co-operate with the European Commission Delegation in BiH? How does it co-operate with the local authorities in BiH?

Topcagic: The Directorate of European Integration is a permanent body of the Council of Ministers of BiH, whose role has been defined in the Law on the Council of Ministers and the Law on Ministries and Other Administrative Authorities in BiH. Pursuant to these laws and other regulations, the Directorate of European Integration is a leading co-ordinating body in the BiH's EU integration process. This means that it co-operates with the local institutions in this process. At the same time, the Directorate is the principal operating partner of the European Commission in the Stabilisation and Association Process. The range of the Directorate's activities is a very broad one: harmonisation of legislation, co-ordination of EU assistance, and translation of the EU acquis, as well as co-ordination and promotion of the European integration process.

SETimes: You recently attended the opening ceremony of the visa cancellation process between the EU and BiH in Brussels. Can you tell us what the expected benefits of this process are for the citizens of BiH?

Topcagic: Very soon after the official starting of the dialogue on liberalisation of the visa regime, BiH received a road map containing the benchmarks that, once met, should enable the citizens of BiH to have visa-free travel in the EU countries. The road map is a very complex reform package, and it contains the benchmarks pertaining to document security, efficient border control, the fight against illegal migration, corruption, organised crime and the rule of law in general. In addition, the European Commission shall also be measuring general progress in the European integration process and the situation in the country, aimed at accomplishment of the ultimate goal -- cancellation of the visa regime for the citizens of BiH.

SETimes: Do you agree with the comments recently issued by High Representative in BiH Miroslav Lajcak that the EU integration process is the solution to the issues related to BiH statehood?

Topcagic: The European integration process in BiH is essentially a process involving institution building and development of [BiH's] capacities for meeting the obligations on this path. Initially, when the Feasibility Study was issued several years ago, it was clear that BiH had no institutional or legislative capacities for the implementation of the SAA. Therefore, progress in the 16 priority areas identified in the Feasibility Study has so far enabled the passage of 46 new laws and the constitution and strengthening of 27 new institutions, such as the Competition Council, veterinary institutions, phyto-sanitary inspections, and many others.

SETimes: Finally, is there anything that you would like to say?

Topcagic: What needs to be pointed out here is the significance of meeting the obligations arising from the SAA. Efficient implementation of these commitments and the continuation of the reforms are required in order to make progress towards the next stages in the European integration process, particularly aiming towards candidate country status. The BiH Council of Ministers is planning on receiving candidate country status in 2010, and if all of the institutions in the country make the required efforts, it shall be possible to accomplish this goal.