The European Commission said an interim agreement with Bosnia has created a free trade area, which will further open the market to bilateral trade.
The agreement allows free access to European Union (EU) markets for almost all goods from Bosnia, which in turn will gradually open its market to EU products and services.
Bosnia will also introduce standards from the EU, aligning its legislation in a number of areas such as competition, intellectual property, investment, public procurement or protection of personal data.
The commission said this process will facilitate economic and social development in Bosnia and will encourage further economic reforms.
Bosnia and the European Union signed the Stabilisation and Association Agreement and the interim agreement on June 16 in Luxembourg.