British Food Journal

Purpose – The purpose of this research is to analyze implications of SEE trade liberalisation for the B&H agribusiness sector and to provide policy recommendations for both the public and private sector.

Design/methodology/approach – This study uses revealed comparative advantage (RCA) index and Grubel-Lloyd index (GLIIT) to indicate sectors and markets where country's exports are more (or less) competitive in relation to their trading partners, present on a given destination market.

Findings – B&H agrifood import, export and trade deficit are growing, but export growth rate is significantly higher, especially on SEE markets. The values of RCA and GLIIT index are indicating better overall B&H agribusiness performances at SEE market in comparison with EU 27. Findings confirm that trade liberalization opened up a window of opportunity, which is not efficiently utilized by B&H agribusiness sector.

Research limitations/implications – RCA does not provide information of how spotted advantages will evolve and overlooks impacts of public policies. The GLIIT offers no information of correlation in quality between imported and exported goods.

Practical implications – As for the government, the main implication is the mode to improve the business environment, especially to empower institutions which have to provide services in order to meet international agreements requirements and customers' requirements.

Originality/value – There are no studies examining B&H agribusiness trade patterns, competitiveness and level of integration at SEE market which used disaggregated trade data. The outcomes could be used to craft both direct public sector policies and private business policies in order to improve sector competitiveness.