FREE ECONOMIC ZONES AND DEVELOPMENT OF BOSNIA AND HERZEGOVINA IN THE EUROINTEGRATION PROCESS

Free zones are the way for increasing the production, export and employment. In some, globally significant economies, free zones are the factor of growth and technological progress. In Bosnia and Herzegovina, the field of free zones has appropriate legislation, but the economic results are still minor. In EU, free zones are important for economic development, especially in certain regions. The issue of free zones is being handled within the communitarian legislation, through customs' and other regulations. The regulations of the protection of competition are especially important because the privileges in zones are contrary to the rule of protection of competition in the common market. From Ruding's report and Primarolo group to the present, the Union is making efforts to harmonize these opposites. The EU has affirmed the development model of free zones opening. Bosnia and Herzegovina is at the stage of European integration, at which, in the mid-2015 Bosnia and Herzegovina came into the full implementation of the Stabilization and Association Agreement (SAA). It's appliaction will also change the circumstances in the opening of free zones and inflows of Foreign direct investment (FDI). It is realistic to expect that the EU will show low level of interest for investing into free zones in Bosnia and Herzegvina, while the interest of non-european countries, especially Asian countries, will be increased. Free zones in Bosnia and Herzegovina could become the bridge for better transfer of goods and technologies into the European Union.