Rural and agricultural policy in Bosnia and Herzegovina and the EU CAP: development in line with moving targets

Bosnia and Herzegovina (B&H) is a potential candidate country for European Union (EU) accession, however, the situation is dynamic and tasks are complicated. EU Common Agricultural Policy (CAP) has been reformed by the permanent process and further reforms are planned for the period 2014-2020. B&H has to define its priorities and to develop the unique strategy for their own rural territories and agricultural sector; and at the same time to take into account the potential future framework of CAP. Therefore the problematic challenge is to set a consistent policy developed according to strategic needs of Bosnia and Herzegovina and at the same time to proceed with the EU accession process taking into account potential implications of policy reforms. The purpose of this paper is to analyse development of agricultural and rural policy in B&H within the context of CAP after 2013, to draw up financial implications of potential accession of B&H into the EU in terms of rural and agricultural support and to analyse potential integration and competitiveness of agricultural sector in EU common market. Results allow concluding that B&H strategy in the context of evolving CAP and EU enlargement is pragmatic; however, there could be unexpected effects from harmonizing direct support measures in entities. B&H shows a relatively low competitiveness of the agro-food sector comparing to the EU15 while the situation is positive comparing economic indicators with EU12.