The aim of this paper is to contribute in better understanding of advantages and disadvantages, for Bosnia and Herzegovina, of the free trade with EU, as a result of the adaptation of the Stabilization and Association Agreement(SAA) in 2016. Specifically, I analyze the impact of the amended Stabilization and Association Agreement on the agroindustry in Bosnia and Herzegovina, because this industry suffer the most, as consequence of trade liberalization. In research, I use data from the sources like World Bank, Agency for Statistics of Bosnia and Herzegovina, Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina,etc. The trade liberalization started on the 1st of February 2017 and it is ongoing process. It is important to emphasize that available data can not provide complete picture of the trade liberalization effects. Economic forecast are that strongest effects of the trade liberalization will be in next two years. The theoretical framework for this research are economics theories: Theory of Comparative Advantage and new trade theories that account for Economies of scale.