CROATIA’S ACCESSION TO THE EUROPEAN UNION AND THE FUTURE OF BOSNIA AND HERZEGOVINA

Abstract

Whenever a country joins European Union, there are some effects, which not only change the game for entering country but also for third non member countries. The foremost objective of this paper is to examine the possible effects of Croatian joining the European Union on the foreign trade between Croatia and Bosnia and Herzegovina. The core assumption is that Croatian accession to the EU has negative effects on the trade between Croatia and Bosnia and Herzegovina because Croatia is not giving preferential treatment to BH market. To maintain its export market share in the Croatian market, Bosnia and Herzegovina has to show high level of competitiveness.