FIRST MEETING OF REGULATORS FROM SOUTH EAST EUROPEAN COUNTRIESLJUBLJANA 8 JUNE 2004 PRESENTATION FROM BOSNIA AND HERZEGOVINA (a) State of play regarding technical barriers to trade The current situation in Bosnia and Herzegovina regarding protection of lives and health of citizens and domestic animals, protection of plants and environment, and removal of technical barriers to trade in export are concerned is highly inconvenient. Bosnia and Herzegovina does not regularly perform the assessment of conformity of locally manufactured and imported products with legally binding technical regulations (inherited from former Yugoslavia) before these products are released on the market. As a consequence, in order to export its product in neighboring countries, a BiH company must demonstrate compliance of this product with related legally binding regulations in the country of destination (Generally, product must pass tests in testing laboratories, and obtain certification). In addition to this, there is no Enquiry Point with reliable database on product legislation in force (mainly those inherited from former Yugoslavia), and applicable conformity assessment systems and infrastructures needed by the local manufacturers/producers and potential exporters to Bosnia and Herzegovina. These are the main reasons why Bosnia and Herzegovina can't benefit from the EU Exceptional Trade Measures introduced in September, 2000. It can't even benefit fully from the Free Trade Agreements concluded with countries which also inherited the product legislation and mandatory certification system from the former Yugoslavia. It should be noted that the weakest point is conformity assessment of technical infrastructure (testing and calibration laboratories, certification and inspection bodies) which have been not invested in recently. As a consequence, Bosnia and Herzegovina has enormous problems to conclude agreements on “mutual recognition of test reports and certificates of conformity” stipulated in all free trade agreements. The normal investments of private capital in technical infrastructures can't be expected until conformity assessment of products against legally binding safety regulations becomes operational. (b) Priorities in regulatory area The short-term priorities EC funded Project “Single Economic Space”, set up the short-term priorities (two years). 1. Establishment of the legal framework for free movement and safety of priority industrial products by the adoption of four framework laws on: Technical requirements for products and conformity assessment, Market surveillance, General product safety, General food safety (based on the EC Regulation 178/2002). 2. Fulfilling the requirements for export to EU Internal Market of priority technical industrial products by transposition and implementation of six new approach directives and the adoption of translated priority harmonized standards that support these directives. 3. Fulfilling the requirements for export to EU of foodstuffs (industrial food products) and protection of citizens as far as these products are concerned by transposition and implementation of 12 horizontal rules transposing old approach directives and one vertical rule 4. Setting up the priority segments of BiH Conformity Assessment System and Market Surveillance System. 5. Capacity building of Ministry of Foreign Trade and Economic Relations (MoFTER) for legal drafting and implementation of priority pieces of EU acquis in the framework of the SESII Project on priority technical industrial products. 6. Capacity building of Veterinary agency for legal drafting and implementation of corresponding legislation. 7. Establishing and capacity building of the Agency for the protection of plant health for legal drafting and implementation of corresponding legislation 8. Establishing and capacity building of the Food safety agency for legal drafting and implementation of corresponding legislation . 9. Establishing of a new system and the competent institutions for: a. specific products covered by the old approach directives (chemicals, pharmaceuticals, cosmetics, motor vehicles etc) b. for products from non regulated area. 10. Human resource development in Conformity Assessment System: a. Accreditation lead auditors to be trained for technical area and food control, b. Accreditation technical experts to be trained and certified for technical area and for food control, c. Experts from non-destructive testing laboratories to be trained and certified, d. Experts in metrology to be trained on scientific and industrial metrology, e. Study trips to learn from the experience of foreign institutions 11. In-company training and consultations The medium-term priorities (five years) 1. Building the capacity of the Ministry for Foreign Trade and Economic Relations, Veterinary agency , Agency for the protection of plant health , Food safety agency and new institutions dealing with specific products covered by the old approach directives for planning and managing the process of fulfillment of the requirements of the EU White Paper “Preparation of Central and East European Countries for Integration into the EU Internal Market”, 2. Transposition of the rest of new approach directives and foodstuffs directives, 3. Establishing the quality infrastructures in the conformity assessment system including sharing the tasks with SEE Countries, 4. Establishing modern Market Surveillance System including official control of foodstuffs, 5. Concluding the Protocols on Conformity Assessment and Acceptance of Products with EU (PECA) for priority new approach technical regulations (directives), 6. Transposition of priority pieces of the old approach legislation on chemicals, pharmaceuticals, cosmetics, and motor vehicles. (c) Main problems impeding regulatory work on national and regional level In Bosnia and Herzegovina the only line ministry in this regard is Ministry of Foreign Trade and Economic Relations, The Veterinary agency is also established. This ministry is understaffed and it can not perform all the necessary regulatory work listed above, not even for technical industrial products, what should be their only responsibility when all the new state institutions are established. It has to establish at least 8 units/groups which will take the responsibilities for particular regulatory activities for technical industrial products. As the center of todays activities and the activities in longer future period foreign aid is urgently needed for the human resources development in this Ministry. 2 It should be done through tutorial project, meaning work under supervision of foreign institution from the country which has undergone the EU assessment. Because in 1992. technical legislation in Slovenia and BiH was the same, and because there is no great language barrier, the logical choice is a Slovenian institution. The second impediment is the inadequate quality infrastructure of the conformity assessment system. In spite of the possibility of sharing the facilities at a regional level a substantial investment is needed in testing laboratories and metrology laboratories. It can not be done from the state budget only. For instance Bosnia and Herzegovina lost the traceability of the most important physical quantities against international physical standards in metrology once established in the framework of the PharePRAQIII Program. Without international traceability of measurements Bosnia and Herzegovina can not be an equal partner in the international trade. For the time being the biggest problem is capacity building of foodstuffs testing laboratories and demonstration of compliance with related EU technical regulations. The regional or bilateral projects should support Bosnia and Herzegovina in this regard. The third impediment is the fact that the National Accreditation Body (BATA) is not recognised by the EA. The further capacity building of BATA, including joint accreditations with one EU member state accreditation body, can not be funded from the state budget only. 3