A stronger presence in the Russian and American markets, where Bosnia and Herzegovina (BiH) has recorded weak foreign trade this year, could provide a lifeline for domestic businesses. Experts believe that only united efforts can help local producers reach buyers in these markets.
According to the Indirect Taxation Authority (ITA) of BiH, from January to the end of November this year, BiH exported goods worth 63.909 million KM to Russia, while importing goods valued at 128.952 million KM. Data shows that BiH primarily exported pharmaceutical products to Russia.
Meanwhile, BiH exported goods worth 139.695 million KM to the United States, while imports from the US totaled 176.636 million KM. Most exports to the US consisted of arms and ammunition, while imports from both markets were dominated by mineral fuels, oils, and distillation products.
The president of the Republika Srpska Chamber of Commerce, Pero Ćorić, told Glas Srpske that the placement of domestic products in Russia and the US remains limited due to several factors.
- Our largest foreign trade partner is currently the European Union. However, this crisis has shown that relying on a single market, such as the EU, carries certain risks. Conquering new markets is imperative. Both the Russian and American markets offer enormous opportunities – said Ćorić.
He added that cooperation with Russia during previous systems was conducted only through certain channels, primarily related to state-level dealings.
- The Russian market is very demanding, regardless of the type of goods. Their standards are particularly strict, entry procedures are lengthy, and geographical distance also plays a significant role. Many of our companies lack the willingness and strength to compete for the Russian and American markets – Ćorić stated.
He emphasized that local businesses can only penetrate these markets through joint efforts.
- Considering the situation in the European Union and the challenging paths to Russia and the US, domestic businesses will need to turn towards Chinese, Indian, and North African markets. This situation is a clear reminder to think more broadly and not rely solely on neighboring countries – Ćorić added.
The president of the Federation of BiH Chamber of Commerce, Mirsad Jašarspahić, believes that regional buyers should not be overlooked, even though Russia and the US are promising markets.
- The essence of economics lies in easier and cheaper transportation. Domestic companies working with the EU still have orders because many companies there are losing partners within the Union. However, every new market is welcome, especially now when partners from neighboring countries are facing specific problems – Jašarspahić said, adding that focus should also be placed on the Mediterranean market due to its proximity.
According to him, the Mediterranean market includes all countries around the Mediterranean Sea.
- In the past, BiH exported apples and pharmaceutical products to Russia, while furniture was exported to the US. However, these two markets are very distant, and transportation costs are enormous. Currently, our diaspora in America is still linked to BiH products such as water, coffee, and other items, but this represents small-scale trade. Large volumes are what sustain the economy – said Jašarspahić.
Trade balance
According to ITA data, from January to November last year, BiH exported goods worth 112.138 million KM to the US, while imports from overseas totaled 228.271 million KM. At the same time, Russia exported goods worth 158.143 million KM to BiH, while BiH exported 83.014 million KM worth of products to Russia.
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Source: Glas Srpske
