VZCZCXRO4131
RR RUEHAG RUEHAST RUEHBW RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVJ #0848 1351333
ZNR UUUUU ZZH
R 141333Z MAY 08
FM AMEMBASSY SARAJEVO
TO RUEHC/SECSTATE WASHDC 8339
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS SARAJEVO 000848 
 
SIPDIS 
 
EUR/SCE FOR FOOKS/IVANOVA, DEPT PLEASE PASS TO USTR (FOR 
MORROW AND YANG), USDOC FOR CLDP (EZERA) 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL BK
SUBJECT: BOSNIA: MOVING TOWARD WTO ACCESSION 
 
¶1. Summary: Bosnia and Herzegovina's (BiH) World Trade 
Organization (WTO) accession team, led by the Ministry of 
Foreign Trade and Economic Relations (MoFTER) Secretary Hamdo 
Tinjak, is optimistic about BiH's chances for WTO accession 
in the next year or so.  Following negotiations with the 
European Union (EU) in late April, Tinjak claims that the EU 
is on board with the final offer Bosnia is preparing.  Tinjak 
will send this offer to the General Secretariat in mid-May. 
He also said that Bosnia will submit answers to all 
outstanding questions at the same time.  He believes BiH can 
complete all final bilateral negotiations on the margins of 
the next Working Party meeting, which he hopes will be held 
in June.  Tinjak is hopeful Bosnia can complete its accession 
package this year, and see it accepted by some time next 
year.  He does not foresee any obstacles to ratification of 
the WTO package by the BiH Parliament.  End Summary. 
 
¶2. The BiH WTO accession team met with the Europeans in late 
April and reached agreement with them on BiH's agriculture 
and services offers.  Tinjak said that he is hopeful the rest 
of the Working Party members, in particular the U.S., will 
accept them as well.  BiH's new offer includes a 23% average 
agricultural tariff (NOTE: BiH's original offer was 17%, but 
the EU refused to accept this because it is lower than the EU 
tariff. End note).  BiH hopes for developing country status 
with regard to agriculture (and therefore a 10% aggregate 
measures of support (AMS) rate).  Tinjak said the EU was not 
opposed to this.  In addition, BiH resolved its other 
outstanding issues with the EU, such as its offer on 
audio-visual materials. 
 
¶3. Regarding progress on the questions and answers, Tinjak 
said that of the 300 original questions from 2003, there 
remain only 20 outstanding.  The final answers will be 
prepared in May, in advance of the proposed June Working 
Party meeting. Tinjak notes that the only potential problem 
he foresees may be with the U.S. and Canada regarding BiH's 
services offer.  He says a disagreement still exists 
regarding branch offices.  According to Bosnian law, branches 
do not have the full ability to act as companies (to sign 
contracts, for example).  In order to change this, BiH would 
be required to change its legislation, and Tinjak fears this 
would be extremely difficult.  The BiH WTO team member 
working on SPS (Sanitary and Phytosanitary) issues, Nihad 
Fejzic, said that he believes most outstanding SPS issues can 
be successfully negotiated at the next Working Party meeting. 
 
¶4. Comment. It appears BiH has finally made significant 
progress on its WTO accession process.  Bosnian optimism may 
be misplaced, as some thorny issues with the U.S. still 
remain, to be discussed at its bilateral with the U.S. on the 
margins of the proposed June Working Party meeting.  BiH 
still needs to pass certain legislation required prior to 
accession.  Nonetheless, significant steps have been made in 
the right direction.  Real progress toward WTO accession will 
also aid BiH's hopes for satisfying the requirements for 
eventual EU accession.  End comment. 
ENGLISH