It may sound hard to believe in a country as full of trees as Bosnia-Herzegovina, but foreign investors in the wood-processing industry often import timber from neighbouring Croatia.
There are two main reasons. First, wood harvested in the Serb entity, Republika Srpska, is sold as a priority to companies in the same entity, not to those in the Muslim-Croat Federation, the other entity recognised under the Dayton Agreement. Second, logging is plagued by crime and corruption, which is a constant concern for foreign investors.



