Economic crisis looms: Business chambers demand immediate end to border blockades

In an open letter, the chambers expressed their understanding of the challenges facing transporters, noting that the struggles of transport companies effectively represent the problems of all businesses in FBiH and BiH engaged in cross-border trade.

The business community has been warning for nearly two years about difficulties in cross-border operations, particularly regarding the stay of drivers and workers within the Schengen Zone. Despite numerous initiatives and appeals, the letter notes that this issue has yet to be systemically resolved.

"At the same time, it is clear that current traffic blockades cause the greatest damage precisely to the domestic economy and entrepreneurs. While it is impossible to precisely estimate total losses at this moment, information from our members indicates million-dollar amounts that the already vulnerable economy of Bosnia and Herzegovina can hardly withstand," the letter stated.

The current blockades pose a serious risk of breaking supply chains, which inevitably leads to price increases in the Federation of BiH market. Furthermore, legal disputes for damages are already being initiated. The signatories warned that if blockades continue, the scale of the damage will grow significantly, with the ultimate burden falling on businesses and citizens.

The chambers reminded all parties that January marks the beginning of the fiscal year and the realization of contracted obligations. They are calling for an end to the protests and a return to regular economic flows, while simultaneously urging stronger, coordinated pressure on competent institutions for a permanent solution.

To provide an exact assessment of the damage, the Foreign Trade Chamber of BiH (VTK BiH) surveyed domestic economic entities. In less than 24 hours, 61 companies responded.

According to the survey:

• If the blockade lasts longer than three days, reported direct financial losses amount to 16.75 million Bosnian marks (approximately €8.56 million).
• If the blockade lasts seven days or more, reported direct financial losses would reach 42.87 million Bosnian marks (approximately €21.92 million).

Out of the total responses, 34 companies provided specific financial figures. The survey included diverse sectors, such as the textile, leather, metal, electrical, wood, furniture, food, chemical, and automotive industries, as well as logistics and freight forwarding.

The collected data indicates a severe negative impact on businesses, particularly those oriented toward the European Union market. In industries such as automotive and textile, delivery delays directly trigger contractual penalties and interrupt production cycles.

Respondents also cited additional negative consequences, including the loss of customers, termination of long-term contracts, temporary or total production halts, and potential layoffs, in some cases up to 30% of the workforce. Beyond direct financial hits, companies highlighted long-term damage to reputation, export stability, and investment security, suggesting the actual economic damage is significantly higher than currently measurable amounts.