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Türkiye and Bosnia and Herzegovina signed an updated trade agreement on Thursday to streamline customs procedures between the two countries, marking a milestone as their bilateral trade volume surpassed $1 billion for the first time.
Turkish Trade Minister Omer Bolat and his Bosnian counterpart Stasa Kosarac signed the Joint Committee Decision under the Pan-Euro-Mediterranean Convention on Rules of Origin during Bolat's official visit to the Bosnian capital. The agreement updates provisions of the 2003 Free Trade Agreement between the two nations.
"With this decision, which updates our Free Trade Agreement that entered into force in 2003, our companies will be able to benefit from more flexible rules of origin in industrial products and use the cross-cumulation mechanism in the Euro-Mediterranean basin more effectively," Bolat said following the signing ceremony.
The updated agreement is designed to reduce bureaucratic hurdles for companies engaged in cross-border trade and allow manufacturers to more easily source components from multiple countries within the Euro-Mediterranean region while still qualifying for preferential trade treatment.
Speaking at a symposium on economic relations between the two countries, Bolat highlighted the dramatic expansion of bilateral commerce since the free trade agreement took effect. Trade between Türkiye and Bosnia and Herzegovina has increased more than thirtyfold over the past 24 to 25 years, he said, with volumes doubling in the last five years alone.
Last year, bilateral trade reached $1.075 billion, crossing the billion-dollar threshold for the first time. Bolat expressed confidence that trade would continue growing this year.
The symposium, titled "Development of Türkiye-Bosnia and Herzegovina Economic Relations and Sustainable New Horizons," brought together business leaders and government officials from both countries. It was organized by the Economic Research Foundation and the Bosnia and Herzegovina International Chamber of Commerce, with support from Turkish institutions operating in Bosnia.
During closed-door meetings between the two delegations, officials discussed strategies to increase trade volume, promote mutual investment, and strengthen sectoral cooperation. Bolat emphasized Türkiye's role as what he described as a strong supply hub at the crossroads of Europe, the Middle East, and Eurasia.
He noted that Türkiye has become the world's 17th-largest economy with a nominal GDP of $1.5 trillion and is expected to rise to 16th place when international data is released at year's end. The country has attracted $275 billion in foreign direct investment stock, he said.
Ahmed Egrlic, president of the Bosnia and Herzegovina Chamber of Foreign Trade, acknowledged the strong economic relationship between the countries. "Our foreign trade volume has almost reached 1 billion euros. However, we have the potential to increase this even further," he said at the symposium.
Hasan Topaloglu, chairman of the Foreign Economic Relations Board's Türkiye-Bosnia and Herzegovina Business Council, described the relationship between the two countries as extending beyond economics. "We are two countries, one heart," he said. "We grieve together, we rejoice together."
Bolat's visit also included a stop at Kovaci Cemetery, where he participated in prayers at the grave of Alija Izetbegovic, Bosnia and Herzegovina's first president.
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