Šarović and Čajo signed Additional protocol between Bosnia and Herzegovina and Republic of Croatia on amendments and reviews to Agreement between Bosnia and Herzegovina and Republic of Croatia on stimulation and mutual investment protection

 

The Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina, Mr. Mirko Šarović and the Head of the State Office for Trade Policy, Mr. Denis Čajo signed today in Sarajevo the Additional protocol between Bosnia and Herzegovina and the Republic of Croatia on amendments and reviews to the Agreement between Bosnia and Herzegovina and the Republic of Croatia on stimulation and mutual investment protection.

With the aim of improving the overall economic cooperation between the two countries, and respecting obligations arising from the membership in the European Union, Bosnia and Herzegovina has accepted Croatia’s proposal for amending the Agreement between Bosnia and Herzegovina and the Republic of Croatia on stimulation and mutual investment protection. Accordingly, it has agreed that the signing of the Additional Protocol be arranged before Croatia joins the European Union.

The Additional protocol does not change the main principles of the Agreement between Bosnia and Herzegovina and the Republic of Croatia on stimulation and mutual investment protection. With the signing of this Additional protocol, investments made by investors of one Contracting Party in the territory of the other Contracting Party shall remain protected by guaranteeing equitable treatment, physical protection and security, most favored nation treatment and national treatment, as well as fair compensation in case of expropriation. The change consists in the introduction of restrictions on the free transfer of funds related to investments, which is guaranteed by the contract, and only in the event that the European Union has adopted measures relating to the matter. Such measures, i.e. restrictions, shall not last longer than 6 months.