Turkey signs free trade agreement with Bosnia

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Turkey has agreed an FTA with Bosnia and Herzegovina that could boost their economic prosperity.

Turkey has signed a new free trade agreement (FTA) with Bosnia and Herzegovina, it was reported at a joint news conference.

President Recep Tayyip Erdogan of Turkey and Bosnia and Herzegovina's Presidential Council members inked the deal in Ankara, with hopes that increased cooperation between the two countries could help them reach a trade volume of $1 billion (€892 million).

Mr Erdogan said enhancing regional cooperation in the Balkans is one of Turkey's key aims, while chairman of the Bosnian council Milorad Dodik thanked Turkey for contributing to the peace and stability of Bosnia and Herzegovina.

At the meeting, a memorandum of understanding was also signed on the Sarajevo-Belgrade Highway Project after officials agreed a route in February.

The project will cost around $3.4 billion, with Turkey providing the necessary funds. It is thought the initiative could significantly contribute to economic prosperity and trade in the Balkans area.

Since 2003, the bilateral trade volume between Turkey and Bosnia-Herzegovina has increased ninefold to $661.5 million, according to the Turkish Statistical Institute (TurkStat).

Turkey now has FTAs with more than 20 nations and is currently negotiating 17 more, including deals with Japan, Thailand and Ecuador, foreign minister Mevlut Cavusoglu said.