BOSNIA NEWS

3.August 2007.

OHR/EUSR AND EUROPEAN COMMISSION CALL FOR CEFTA RATIFICATION BY BOSNIAN PARLIAMENT

SARAJEVO,Bosnia - The Office of the international community,s High Representative/EU Special Representative in Bosnia (OHR/EUSR) and the Delegation of the European Commission to Bosnia are disappointed by the Bosnian Parliament’s failure to ratify the Central Europe Free Trade Agreement (CEFTA) ,and look to parliamentarians to support this Agreement when they return from their summer break.

“Free trade means jobs and investments – this is a lesson from CEFTA’s founding members, all of whom are now Members of the EU, and all of whom enjoy standards of living that are incomparably higher than they were a decade ago” the international community's High Representative and EU Special Representative in Bosnia, Miroslav Lajcak said.

The Bosnian government decided to participate in CEFTA with the aim of deepening established trade relations among countries in the region thereby contributing to increased competitiveness, attracting direct foreign investments and applying international trade system rules. All these are preconditions for creating new jobs and fostering economic prosperity.

Bosnia negotiated and signed the Central European Free Trade Agreement (CEFTA) in December 2006 and by doing so showed its commitment to contribute to economic development and regional cooperation in South Eastern Europe.

“It is important for the Stabilization and Association process that Bosnia honours the commitments it has undertaken during the negotiation of international agreements – in particular the ratification of CEFTA”, said Andre Lys, Deputy Head of the Delegation of the European Commission to Bosnia.

Replacing the existing 32 bilateral free trade agreements within the region with one single agreement covering a trade network between eight countries, and a market of 25 million people, represents a major step forward for Bosnia towards integration into the global economy.

By ratifying CEFTA, Bosnia would benefit from more transparent procedures, attract foreign direct investment and increase exports.

A simple and modern agreement such as CEFTA provides its Members with a clear framework for the development of domestic industries, including the agricultural sector (which is one of the most sensitive sectors in all CEFTA Members) by implementing common rules on antidumping, safeguards and compensatory duties. Moreover, CEFTA provides an efficient arbitration system in case of disputes between members.

Were Bosnia to remain outside of CEFTA the gap between Bosnia and the economies of CEFTA member countries would increase, further delaying the development of a functioning market economy, which is a key requirement for European integration.

3.August 2007.

BOSNIAN PARLIAMENT'S HOUSE OF REPRESENTATIVES' SESSION TO CONTINUE IN SEPTEMBER

SARAJEVO,Bosnia – The Bosnian Parliament's House of Representatives considered the Report on the state of security in Bosnia. According to the report the state of security in 2006 was satisfactory.

The Bosnian Security Minister Tarik Sadovic presented the key points from this report and stressed that without police reform it will not be possible to make improvements in the field of security.

The report states progress in the field of the protection of international borders and internal border crossings. The number of persons discovered in trying to illegal cross the state border has increased by 97 percent.

According to the report the number of traffic accidents and fatalities has increased in 2006. It also states that the adoption of the Law on Traffic Safety has created conditions for making improvements in this field.

The report stressed that arresting persons indicted by the Hague Tribunal remains a top priority.

It also states that the security system in Bosnia is inadequate to respond to challenges in this field and underlines the need for reform of the security system.

Also, the House of Representatives considered the first reading of the Proposal of the Law on Agriculture, Food and Rural Development. This bill did not receive the required majority of entity votes and will now have to be harmonised before the Collegium of the House of Representatives.

The Bosnian Ministry of Foreign Trade and Economic Relations explained that this bill has been harmonised with relevant ministries and it defines the authorities of al levels of authority in this field.

Bosnia needs this law in order to coordinate and harmonise activities and measures in this sector and to gain access to EU pre-accession funds.

Also,the Bill on Implementation of the Agreement on Amendment of and Accession to the Central European Free Trade Agreement (CEFTA) was not adopted at the Bosnian Parliament's House of Representatives session.

The Bill was not supported by the majority of delegates.Minister Slobodan Puhalac called the delegates not to vote for the Bill and added that there are no legal bases for its adoption.

Delegate Jerko Ivankovic Lijanovic clarified that the goal of the Bill is to protect domestic production and that it should be adopted prior the CEFTA agreement is ratified at the Bosnian State Parliament.

The Bill foresaw introduction of customs for a certain group of items (meet and meet products, milk and milk products) form Serbia and Croatia.

The Bosnian Parliament’s House of Representatives terminated session, having ended discussion on Information on Realization of Conclusion on the Return Map for the Bosnian Citizens Imprisoned in Guantanamo.

The Bosnian Council of Ministers Chair Deputy Tarik Sadovic presented the Information at the demand of the SDP party caucus.

He stated that Bosnia has not implemented the Human Rights Decision from 2002 which orders the state asks the US Government guarantees that the so-caller Algerian Group members will not be sentenced to death and that they will not be submitted to torture and other forms of inhumane treatment.

Sadovic informed the delegates about the Bosnian government's conclusions from a recently-held session which order the Bosnian Ministry of Foreign Affairs to send the US Government a letter containing the demands mentioned above.

The Bosnian Ministry of Justice received orders to work on realization of conclusions of the Bosnian Council of Ministers related to the development and realization of the Return Road Map.

Minister Sadovic could not say if the members of the so-called Algerian Group were a subject of revision of citizenship.The Bosnian Parliament’s House of Representative session will continue in September.

3.August 2007.

BOSNIAN PRESIDENCY MEMBER HARIS SILAJDZIC FULLY SUPPORTS INITIATIVE ON THE DRAFT LAW ON PUBLIC ROADS IN BOSNIA

SARAJEVO,Bosnia - Dr Haris Silajdžić, a member of the Bosnian Presidency,fully supports the initiative of the Bosnian Minister of Transport and Communication, Dr Božo Ljubić, on the Draft Law on Public Roads in Bosnia, and condemns pressures aiming to foil this initiative.

The Bosnian Constitution clearly states that issues of ”regulating the inter-entity transport” are under exclusive jurisdiction of the Bosnian State, which includes all matters of road connection between the two entities.

This regulation was intentionally built in, inter alia, in order to enable international and inter-entity road projects’ functioning. The Bosnian Constitution, therefore, not only allows these initiatives to the State institutions, but it directly forbids it to the entities.

The Article 10 of the Bosnian State Law on Ministries and Other State Organs of Bosnia clearly states that the Bosnian Ministry of Transport and Communication is authorized for “international and inter-entity transport and infrastructure”, which clearly includes the mentioned initiative of Minister Ljubić.

Therefore,the RS Entity Minister of Transport and Communication, Nedeljko Čubrilović’s attacks on this initiative reflect his elementary ignorance and disregarding constitutional and legal regulations in this field, and his threats to bring criminal charges against Dr Ljubić are an attempt to frighten the State Ministers and foil them in performing their work and fulfilling their mandate,a member of the Bosnian Presidency Dr Haris Silajdzic stated in a press release.

3.August 2007.

NEW CHANCE FOR THE DEVELOPMENT OF SREBRENICA

SREBRENICA,Bosnia – The US Ambassador to Bosnia Douglas McElhaney announced the start of a new program for young people in Srebrenica, which will be implemented through the US Agency for International Development (USAID).

Turkish Ambassador to Bosnia Bulent Tulun, representatives of several embassies and potential domestic and foreign investors attended the presentation of the project and the press conference.

Municipal officials and representatives of companies from Srebrenica informed them about investment opportunities and plans to expand capacities, which would create new jobs. This project, funded by USAID, aims at employing young people, i.e. providing them with training and employment in certain companies.

“We are happy that at least some of the young people from Srebrenica will have an opportunity for internship in certain companies. This will keep young people here and encourage return to this city”, Head of the “Friends of Srebrenica” non-governmental organisation said.

The US Ambassador to Bosnia Douglas McElhaney officially marked the start of the implementation of this project.

“We are glad that local companies have volunteered to provide internship for young people and we will ensure funds for the implementation of this project. We believe that after the internship certain employers will decide to hire these young people. Such is the practice in the EU, and especially in America”. Ambassador McElhaney said.

“To date, America has provided 1 billion USD in assistance to Bosnia, including approximately 20 million USD for the reconstruction and development of Srebrenica. America will continue to provide assistance to this city through the Government, but it will also stimulate its businessmen to invest capital in the opening of new plants in Srebrenica”, the US Ambassador said and added that some owners of US companies are already on the way to implementing certain projects in the eastern Bosnian town of Srebrenica.

Srebrenica Mayor Abdurahman Malkic thanked the US Ambassador for supporting the development of Srebrenica.

3.August 2007.

BOSNIAN ARMY AND US ARMY PERFORMED JOINT MILITARY DRILL AT MAHOVLJANI AIRPORT

SARAJEVO,Bosnia - The Bosnian Army and the U.S, Army have performed a joint military drill yesterday at Mahovljani airport.

Military equipment of the Bosnian Armed Forces was presented and parachute jumps were performed. A group of US F-16 planes, twice flew over the airport.

As a part of a joint military drill, USA Ambassador in Bosnia Douglas McElhaney and the Bosnian Defence Minister Selmo Cikotic have signed an agreement which anticipated a US donation of 400,000 Bosnian Marks (200,000 Euros) for the destruction of 2,6000 tones of ammunition storaged at several locations in Bosnia.

McElhaney said that the United States will do their best for Bosnia to become a part of democratic and stable countries. According to him, Bosnia must fulfil numerous obligations before becoming a full NATO alliance member, and these obligations include co-operation with The Hague Tribunal, which means capture of the remaining Hague fugitives among which Serbian war criminals Radovan Karadzic and Ratko Mladic are the most wanted.

McElhaney announced the next joint military drill of US and Bosnian Armed Forces in Mostar, similar to the one held at Mahovljani.

3.August 2007.

THE "NERETVA 2007" ECOLOGICAL CAMP BEGINS IN KONJIC

KONJIC,Bosnia – The Konjic Municipality Council of Youth has organized for the third consecutive time an international educational and ecological camp “Neretva 2007”.

The camp will last from August 1 to August 8 in Glavaticevo near Konjic. Around 30 young volunteers from Bosnia,Czech Republic, Germany, Great Britain, Holland, Spain,Croatia,Serbia, Finland and USA are participating. Purpose of the international educational and ecological volunteer camp is to present sustainable tourism and environment protection, as well as to initiate and present natural and ecological heritage of the Konjic municipality.

The Konjic municipality area has been known in the world for various endemic species of plants, especially on the Prenj Mountain and along the Neretva River.

3.August 2007.

MITTAL STEEL COMPANY EMPLOYEES ENTERED GENERAL STRIKE

ZENICA,Bosnia – The Mittal Steel Company employees have entered general strike on Wednesday at 7 a.m.. They demand the increase of the lowest hourly wage in the company.

Islam Imamovic, President of the Mittal Steel Company Union, said that no problems have arisen since the workers have entered strike.

”We did not achieve an agreement with the employer related to the minimal number of the employees who are to stay at their positions during the strike. Of course, we are obliged to respect the measures proscribed and we are accordingly meeting the demands of the 2003 Protocol”, Imamovic stated. He added that the strike will continue until an agreement is made between the management and union of the company.

Apart from an increase of the hourly wage, the employees are asking additional benefits to be respected in accordance with the Collective Agreement,and that the Bosnian Language is the only language used in correspondence between the management and the employees.

3.August 2007.

BOSNIAN ECONOMIC AND SOCIAL COUNCIL TO BE FORMED BY THE END OF THE YEAR

SARAJEVO,Bosnia – The international community's High Representative and the EU Special Representative in Bosnia Miroslav Lajcak and representatives of unions and employees fully supported the formation of the Bosnian Economic and Social Council.

Lajcak stated at a press conference that concrete steps have been agreed to form the Council at the Bosnian state level for such an institution has proven in all the transitional countries to be a necessary forum for communication between governments, unions and employees.

Edhem Biber, the president of the Bosnian Association of Unions and Tomislav grizelj, Presidnet of the Association of employees, stated that the meeting was useful and that the Economic and social Council’s formation at the tertiary level is a significant step.

It has been estimated that the Council could be formed by the end of the year.

”We support the High Representative in his efforts to make dialogue with different social factors and to find the best solutions possible with the partners”, Biber emphasized.

Grizelj said he expects that the dialogue made with the Office of the High Representative in Bosnia (OHR) will be fruitful especially keeping in mind that all the goals and deadlines have been determined.

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