WORLD TRADE
ORGANIZATIONWT/REG129/1
3 December 2001
(01-6134)
Committee on Regional Trade Agreements Original:  English
INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
The following text reproduces the Agreement between the European Community and the
Former Yugoslav Republic of Macedonia.*
_______________
INTERIM AGREEMENT
on trade-related matters between the Euro pean Community, of the one part, and
the Former Yugoslav Republic of Macedonia, of the other part
The European Community  (hereinafter referred to as the "Community"), of the one part, and
The Former Yugoslav Republic Of Macedonia, of the other part,
Whereas:(1) The Stabilisation and Association Agreement between the European Communities
and their Member States, of the one part, and the Former Yugoslav Republic of
Macedonia, of the other part, was signed by way of Exchange of Letters in
Luxembourg on 9 April 2001.
(2) The Stabilisation and Association Agreement is intended to establish a close and
lasting relationship based on reciprocity and mutual interest, which should allow the
Former Yugoslav Republic of Macedonia to further strengthen and extend the already
established relationship.
(3) It is necessary to ensure the development of trade links by strengthening and
widening the relations established previously, notably by the Cooperation Agreement
signed on 29 April 1997 by way of Exchange of Letters, which entered into force on
1 January 1998.
(4) To this end it is necessary to implement as speedily as possible, by means of an
Interim Agreement, provisions of the Stabilisation and Association Agreement on
trade and trade related matters.
__________________________
* The Annexes and Protocols thereto, also in electronic form, have been submitted to the Secretariat for
consultation by interested Members (Office 3006).WT/REG129/1
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(5) It is necessary to ensure that pending the entry into force of the Stabilisation and
Association Agreement and the establishment of the Stabilisation and Association
Council, the Cooperation Council set up by  the Cooperation Agreement can exercise
the powers assigned by the Stabilisation and Association Agreement to the
Stabilisation and Association Council, which are necessary in order to implement theInterim Agreement,
Have decided  to conclude this Agreement and to this end have designated as their
Plenipotentiaries:
The European Community:
Anna LINDH,
Minister for Foreign Affairs of the Kingdom of Sweden,
President-in-office of the Council of the European Union,
Christopher PATTEN,
Member of the Commission of the European Communities,
The Former Yugoslav Republic of Macedonia:
Ljubco GEORGIEVSKI,
Prime Minister of the Government of the Former Yugoslav Republic of Macedonia,
Who, having exchanged their full powers, found in good and due form,
Have agreed as follows:
TITLE I
General Principles
Article 1 (SAA 2)
Respect for the democratic principles and human rights as proclaimed in the Universal
Declaration of Human Rights and as defined in the Helsinki Final Act and the Charter of Paris for a
New Europe, respect for international law principles and the rule of law as well as the principles of
market economy as reflected in the Document of the CSCE Bonn Conference on EconomicCooperation, shall form the basis of the domestic and external policies of the Parties and constitute
essential elements of this Agreement.
TITLE II
Free Movement of Goods
Article 2 (SAA 15)
1. The Community and the Former Yugoslav Republic of Macedonia shall gradually establish a
free trade area over a period lasting a maximum of ten years starting from the entry into force of this
Agreement in accordance with the provisions of th is Agreement and in conformity with those of theWT/REG129/1
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GATT 1994 and the WTO. In so doing they shall take into account the specific requirements laid
down hereinafter.
2. The combined nomenclature of goods shall be applied to the classification of goods in trade
between the two Parties.
3. For each product the basic duty to which the successive reductions set out in this Agreement
are to be applied shall be the duty actually applied erga omnes on the day preceding the signature of
this Agreement.
4. If, after the signature of this Agreement, any tariff reduction is applied on an erga omnes
basis, in particular reductions resulting from the tariff negotiations in the WTO, such reduced dutiesshall replace the basic duty referred to in paragrap h 3 as from the date when such reductions are
applied.
5. The Community and the Former Yugoslav Republic of Macedonia shall communicate to each
other their respective basic duties.
CHAPTER I
Industrial Products
Article 3 (SAA 16)
1. The provisions of this Chapter shall apply to  products originating in the Community or the
Former Yugoslav Republic of Macedonia listed in chapters 25 to 97 of the combined nomenclature,with the exception of the products listed in Annex I paragraph 1(ii) of the Agreement on agriculture
(GATT 1994).
2. The provisions of Articles 4 and 5 shall neither apply to textile products nor to steel products,
as specified in Articles 9 and 10.
3. Trade between the Parties in products covered by the Treaty establishing the European
Atomic Energy Community shall be conducted in accordance with the provisions of that Treaty.
Article 4 (SAA 17)
1. Customs duties on imports into the Community of products originating in the Former
Yugoslav Republic of Macedonia shall be abolished upon the entry into force of this Agreement.
2. Quantitative restrictions on imports into the Community and measures having equivalent
effect shall be abolished on the date of entry into force of this Agreement with regard to products
originating in the Former Yugoslav Republic of Macedonia.
Article 5 (SAA 18)
1. Customs duties on imports into the Former Yugoslav Republic of Macedonia of goods
originating in the Community other than those listed in Annexes I and II shall be abolished upon theentry into force of this Agreement.WT/REG129/1
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2. Customs duties on imports into the Former Yugoslav Republic of Macedonia of goods
originating in the Community which are listed in Annex I shall be progressively reduced in
accordance with the following timetable:
- on 1 January of the first year after the entry into force of this Agreement each duty
shall be reduced to 90 per cent of the basic duty,
- on 1 January of the second year after the entry into force of this Agreement each duty
shall be reduced to 80 per cent of the basic duty,
- on 1 January of the third year after the entry into force of this Agreement each duty
shall be reduced to 70 per cent of the basic duty,
- on 1 January of the fourth year after the entry into force of this Agreement each duty
shall be reduced to 60 per cent of the basic duty,
- on 1 January of the fifth year after the entry into force of this Agreement each duty
shall be reduced to 50 per cent of the basic duty,
- on 1 January of the sixth year after the entry into force of this Agreement each duty
shall be reduced to 40 per cent of the basic duty,
- on 1 January of the seventh year after the entry into force of this Agreement each
duty shall be reduced to 30 per cent of the basic duty,
- on 1 January of the eighth year after the entry into force of this Agreement each duty
shall be reduced to 20 per cent of the basic duty,
- on 1 January of the ninth year after the entry into force of this Agreement each duty
shall be reduced to 10 per cent of the basic duty,
- on 1 January of the tenth year after the entry into force of this Agreement the
remaining duties shall be abolished.
3. Customs duties on imports into the Former Yugoslav Republic of Macedonia of goods
originating in the Community which are listed in Annex II shall be progressively reduced and
eliminated in accordance with the timetable specified in the Annex.
4. Quantitative restrictions on imports into the Former Yugoslav Republic of Macedonia of
goods originating in the Community and measures having equivalent effect shall be abolished upon
the date of entry into force of this Agreement.
Article 6 (SAA 19)
The Community and the Former Yugoslav Republic of Macedonia shall abolish upon the
entry into force of this Agreement in trade be tween themselves any charges having an effect
equivalent to customs duties on imports.
Article 7 (SAA 20)
1. The Community and the Former Yugoslav Republic of Macedonia shall abolish any customs
duties on exports and charges having equivalent effect upon the entry into force of this Agreement.WT/REG129/1
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2. The Community and the Former Yugoslav Republic of Macedonia shall abolish between
themselves any quantitative restrictions on exports and measures having equivalent effect upon the
entry into force of this Agreement.
Article 8 (SAA 21)
The Former Yugoslav Republic of Macedonia declares its readiness to reduce its customs
duties in trade with the Community more rapidly th an is provided for in Article 5 if its general
economic situation and the situation of the economic sector concerned so permit.  The Cooperation
Council shall make recommendations to this effect.
Article 9 (SAA 22)
Protocol 1 lays down the arrangements applicable to the textile products referred to therein.
Article 10 (SAA 23)
Protocol 2 lays down the arrangements applicable to steel products referred to therein.
CHAPTER II
Agriculture and Fisheries
Article 11 (SAA 24)
Definition
1. The provisions of this chapter shall apply to trade in agricultural and fishery products
originating in the Community or Former Yugoslav Republic of Macedonia.
2. The term "agricultural and fishery products" refers to the products listed in chapters 1 to 24 of
the combined nomenclature and the products listed in Annex I paragraph 1(ii) of the Agreement on
agriculture (GATT, 1994).
3. This definition includes fish and fisheries products covered by chapter 3, heading No. 1604
and 1605, and subheading No. 0511 91, 2301 20 00 and No. ex 1902 201.
Article 12 (SAA 25)
Protocol 3 lays down the trade arrangements for processed agricultural products that are listed
therein.
Article 13 (SAA 26)
1. On the date of entry into force of this  Agreement, the Community shall abolish all
quantitative restrictions and measures having equivalent effect, on imports of agricultural and fishery
products originating in the Former Yugoslav Republic of Macedonia.
                                                     
1 Ex 1902 20 is ‘stuffed pasta containing more than 20 per cent by weight of fish, crustaceans, molluscs
or other aquatic invertebrates’.WT/REG129/1
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2. On the date of entry into force of this Agreement, the Former Yugoslav Republic of
Macedonia shall abolish all quantitative restrictions and measures having equivalent effect, on imports
of agricultural and fishery products originating in the Community.
Article 14 (SAA 27)
Agricultural Products
1. From the date of entry into force of this Agreement, the Community shall abolish the customs
duties and charges having equivalent effect, on imports of agricultural products originating in the
Former Yugoslav Republic of Macedonia, other than those of heading No. 0102, 0201, 0202 and 2204
of the combined nomenclature.
For the products covered by chapters 7 and 8 of the combined nomenclature, for which the
Common Customs Tariff provides for the application of ad valorem  customs duties and a specific
customs duty, the elimination applies only to the ad valorem  part of the duty.
2. From the date of entry into force of this Agreement, the Community shall fix the customs
duties applicable to imports into the Community of "baby-beef" products defined in Annex III and
originating in the Former Yugoslav Republic of Macedonia, at 20 per cent of the ad valorem  duty and
20 per cent of the specific duty as laid down in the Common Customs Tariff of the European
Communities, within the limit of an annual tariff quota of 1,650 tonnes expressed in carcass weight.
3. From the date of entry into force of this Agreement, the Former Yugoslav Republic of
Macedonia shall:
(a) abolish the customs duties applicable on imports of certain agricultural products
originating in the Community, listed in Annex IV (a);
(b) abolish the customs duties applicable on imports of certain agricultural products
originating in the Community, listed in Annex IV (b) within the limits of tariff quotas
indicated for each product in that Annex. For the quantities exceeding the tariff
quotas the Former Yugoslav Republic of Macedonia shall reduce progressively the
customs duties in accordance with the timetable indicated for each product in thatAnnex;
(c) reduce progressively the customs duties applicable on imports of certain agricultural
products originating in the Community, listed in Annex IV (c) within the limits of
tariff quotas and in accordance with the timetable indicated for each product in thatAnnex.
4. The trade arrangements to apply to wine and spirit products will be defined in a separate wine
and spirit agreement.
Article 15 (SAA 28)
Fisheries Products
1. From the entry into force of this Agreemen t the Community shall totally eliminate customs
duties on fish and fisheries products originating in the Former Yugoslav Republic of Macedonia.
Products listed in Annex V (a) shall be subject to the provisions laid down therein.WT/REG129/1
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2. From the entry into force of this Agreement the Former Yugoslav Republic of Macedonia
shall abolish all charges having an equivalent effect to a custom duty and reduce customs duties on
fish and fisheries products originating in the European Community by 50 per cent of the MFN duty.
The residual duties shall be reduced over a period of six years to be eliminated at the end of this
period.
The rules contained in this paragraph shall not apply to products listed in Annex V (b) which
shall be subject to tariff reduc tions laid down in the said Annex.
Article 16 ( SAA 29)
1. Taking account of the volume of trade in ag ricultural and fishery products between the
Parties, of their particular sensitivities, of the rules of the Community common policies for agriculture
and fisheries, of the rules of the agricultural policies of the Former Yugoslav Republic of Macedonia,
of the role of agriculture in the Former Yugoslav Republic of Macedonia's economy, of the
production and export potential of its traditional branches and markets and of the consequences of the
multilateral trade negotiations under the WTO, the Community and the Former Yugoslav Republic ofMacedonia shall examine in the Cooperation Council, no later than 1 January 2003, product by
product and on an orderly and appropriate reciprocal basis, the opportunities for granting each other
further concessions with a view to implementing greater liberalisation of the trade in agricultural and
fishery products.
2. The provisions of this chapter shall in no way affect the application, on a unilateral basis, of
more favourable measures by one or the other Party.
Article 17 (SAA 30)
Notwithstanding other provisions of this Agreement, and in particular Article 24, given the
particular sensitivity of the agricultural and fisheries markets, if imports of products originating in one
of the two Parties, which are the subject of concessions granted pursuant to Articles 12, 14 and 15,
cause serious disturbance to the markets or to their domestic regulatory mechanisms, in the other
Party, both Parties shall enter into consultations immediately to find an appropriate solution.  Pending
such solution, the Party concerned may take the appropriate measures it deems necessary.
CHAPTER III
Common Provisions
Article 18 (SAA 31)
The provisions of this chapter shall apply to trade in all products between the Parties except
where otherwise provided herein or in Protocols 1, 2 and 3.
Article 19 (SAA 32)
Standstill
1. From the date of entry into force of this Agreement, no new customs duties on imports or
exports or charges having equivalent effect shall be introduced, nor shall those already applied be
increased, in trade between the Community and the Former Yugoslav Republic of Macedonia.WT/REG129/1
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2. From the date of entry into force of this Agreement, no new quantitative restriction on
imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be
made more restrictive, in trade between the Community and the Former Yugoslav Republic of
Macedonia.
3. Without prejudice to the concessions granted under Article 13, the provisions of paragraphs 1
and 2 of this Article shall not restrict in any way the pursuit of the respective agricultural policies of
the Former Yugoslav Republic of Macedonia and the Community nor the taking of any measures
under those policies in so far as the import regime in the Annexes III, IV (a), (b), (c) and V (a), (b) is
not affected.
Article 20 (SAA 33)
Prohibition of Fiscal Discrimination
1. The Parties shall refrain from, and abolish where existing, any measure or practice of an
internal fiscal nature establishing, whether directly or indirectly, discrimination between the productsof one Party and like products originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of
internal indirect taxation in excess of the amount of indirect taxation imposed on them.
Article 21 (SAA 34)
The provisions concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature.
Article 22 ( SAA 35)
Customs Unions, Free-Trade Areas, Cross-Border Arrangements
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free
trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements
provided for in this Agreement.
2. During the transitional periods specified in Articles 4 and 5, this Agreement shall not affect
the implementation of the specific preferential arrangements governing the movement of goods either
laid down in frontier agreements previously conclu ded between one or more Member States and the
Socialist Federal Republic of Yugoslavia and succeeded to by the Former Yugoslav Republic ofMacedonia or resulting from the bilateral agreements concluded by the Former Yugoslav Republic of
Macedonia in order to promote regional trade.
3. Consultations between the Parties shall take place within the Cooperation Council concerning
the agreements described in paragraphs 1 and 2 of this Article and, where requested, on other majorissues related to their respective trade policies towards third countries.  In particular in the event of a
third country acceding to the Community, such consultations shall take place so as to ensure that
account is taken of the mutual interests of the Community and the Former Yugoslav Republic of
Macedonia stated in this Agreement.WT/REG129/1
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Article 23 (SAA 36)
Dumping
1. If one of the Parties finds that dumping is taking place in trade with the other Party within the
meaning of Article VI of the GATT 1994, it may take appropriate measures against this practice in
accordance with the Agreement on implementation of Article VI of the GATT 1994 and its own
related internal legislation.
2. As regards paragraph 1 of this Article, the Cooperation Council shall be informed of the
dumping case as soon as the authorities of the importing Party have initiated an investigation. When
no end has been put to the dumping within the meaning of Article VI of the GATT or no othersatisfactory solution has been reached within 30 da ys of the matter being referred to the Cooperation
Council, the importing Party may adopt the appropriate measures.
Article 24 (SAA 37)
General Safeguard Clause
1. Where any product of one Party is being imported into the territory of the other Party in such
increased quantities and under such conditions as to cause or threaten to cause:
- serious injury to the domestic industry of like or directly competitive products in the
territory of the importing Party;  or
- serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region of the importingParty,
the importing Party may take appropriate measures under the conditions and in accordance with the
procedures laid down in this Article.
2. The Community and the Former Yugoslav Republic of Macedonia shall only apply safeguard
measures between themselves in accordance with the provisions of this Agreement.  Such measuresshall not exceed what is necessary to remedy the difficulties which have arisen, and should normally
consist of the suspension of the further reduction of any applicable rate of duty provided for under this
Agreement for the product concerned or the incr ease of the rate of duty for that product.
Such measures shall contain clear elements prog ressively leading to their elimination at the
end of the set period, at the latest.  Measures shall not be taken for a period exceeding one year.  In
very exceptional circumstances, measures may be taken up to a total maximum period of three years.
No safeguard measure shall be applied to the import of a product that has previously been subject to
such a measure for a period of, at least, three years since the expiry of the measure.
3. In the cases specified in this Article, before taking the measures provided for therein or, in the
cases to which paragraph 4(b) of this Article applies, as soon as possible, the Community or the
Former Yugoslav Republic of Macedonia, as the case may be, shall supply the Cooperation Council
with all relevant information, with a view to  seeking a solution acceptable to the two Parties.
4. For the implementation of the above paragraphs the following provisions shall apply:
(a) The difficulties arising from the situation re ferred to in this Article shall be referred
for examination to the Cooperation Council,  which may take any decisions needed toWT/REG129/1
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put an end to such difficulties.  If the Cooperation Council or the exporting Party has
not taken a decision putting an end to the difficulties or no other satisfactory solution
has been reached within 30 days of the matter being referred to the Cooperation
Council, the importing Party may adopt the appropriate measures to remedy the
problem in accordance with this Article.  In the selection of safeguard measurespriority must be given to those which least disturb the functioning of the
arrangements established in this Agreement.
(b) Where exceptional and critical circumstances requiring immediate action make prior
information or examination, as the case may be, impossible, the Party concerned may,
in the situations specified in this Article, apply forthwith precautionary measures
necessary to deal with the situation and shall inform the other Party immediatelythereof.
5. The safeguard measures shall be notified immediately to the Cooperation Council and shall be
the subject of periodic consultations within that body, particularly with a view to establishing a
timetable for their abolition as soon as circumstances permit.
6. In the event of the Community or the Former Yugoslav Republic of Macedonia subjecting
imports of products liable to give rise to the difficulties referred to in this Article to an administrative
procedure having at its purpose the rapid provision of information on the trend of trade flows, it shall
inform the other Party.
Article 25 (SAA 38)
Shortage Clause
1. Where compliance with the provisions of this Title leads to:
(a) a critical shortage, or threat thereof, of foodstuffs or other products essential to the
exporting Party;  or
(b) re-export to a third country of a product against which the exporting Party maintains
quantitative export restrictions, export duties or measures or charges havingequivalent effect, and where the situations referred to above give rise, or are likely to
give rise to major difficulties for the exporting Party, that Party may take appropriate
measures under the conditions and in accordance with the procedures laid down in
this Article.
2. In the selection of measures, priority must be given to those which least disturb the
functioning of the arrangements in this Agreement.  Such measures shall not be applied in a manner
which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions
prevail, or a disguised restriction on trade and shall be eliminated when the conditions no longer
justify their maintenance.
3. Before taking the measures provided for in paragraph 1 of this Article or, as soon as possible
in cases to which paragraph 4 of this Article applies, the Community or the Former Yugoslav
Republic of Macedonia, as the case may be, shall supply the Cooperation Council with all relevant
information, with a view to seeking a solution accep table to the Parties.  The Parties within the
Cooperation Council may agree on any means needed to put an end to the difficulties.  If no
agreement is reached within 30 days of the matt er being referred to the Cooperation Council, the
exporting Party may apply measures under this Ar ticle on the exportation of the product concerned.WT/REG129/1
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4. Where exceptional and critical circumstances requiring immediate action make prior
information or examination, as the case may be, impossible, the Community or the Former Yugoslav
Republic of Macedonia, whichever is concerned, may apply forthwith the precautionary measures
necessary to deal with the situation and shall inform the other Party immediately thereof.
5. Any measures applied pursuant to this Article shall be immediately notified to the
Cooperation Council and shall be the subject of periodic consultations within that body, particularly
with a view to establishing a timetable for th eir elimination as soon as circumstances permit.
Article 26 (SAA 39)
State Monopolies
The Former Yugoslav Republic of Macedonia sh all progressively adjust any State monopolies
of a commercial character so as to ensure that, by the end of the fifth year following the entry into
force of this Agreement, no discrimination regarding the conditions under which goods are procured
and marketed exists between nationals of the Member States and of the Former Yugoslav Republic ofMacedonia.  The Cooperation Council shall be informed about the measures adopted to attain this
objective.
Article 27 (SAA 40)
Protocol 4 lays down the rules of origin for the application of tariff preferences provided for
in this Agreement.
Article 28 (SAA 41)
Restrictions Authorised
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public policy or public security;  the protection of
health and life of humans, animals or plants; the protection of national treasures of artistic, historic or
archaeological value or the protection of intellectual, industrial and commercial property, or rules
relating to gold and silver.  Such prohibitions or restrictions shall not, however, constitute a means ofarbitrary discrimination or a disguised restriction on trade between the Parties.
Article 29 (SAA 42)
Both Parties agree to cooperate to reduce the potential for fraud in the application of the trade
provisions of this Agreement.
Notwithstanding other provisions of this Agreement, and in particular Articles 17, 24 and 36
and Protocol 4, where one Party finds that there is sufficient evidence of fraud such as a significant
increase in trade of products by one Party to the other Party, beyond the level reflecting economicconditions such as normal production and export capacities, or failure to provide administrative
cooperation as required for the verification of evidence of origin by the other Party, both Parties shall
enter into consultations immediately to find an appropriate solution.  Pending such solution, the Party
concerned may take the appropriate measures it deems necessary.  In the selection of the measure
priority must be given to those which least disturb the functioning of the arrangements established inthis Agreement.WT/REG129/1
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Article 30 (SAA 43)
The application of this Agreement shall be without prejudice to the application of the
provisions of Community law to the Canary Islands.
TITLE III
Payments, Competition and other Economic Provisions
Article 31 (SAA 58)
The Parties undertake to authorise, in freely convertible currency, in accordance with the
provisions of Article VIII of the Articles of Agreement of the International Monetary Fund, any
payments and transfers on the current account of  balance-of-payments between the Community and
the Former Yugoslav Republic of Macedonia.
Article 32 (SAA 65)
1. The Parties shall endeavour wherever possible to avoid the imposition of restrictive measures,
including measures relating to imports, for balance of payments purposes.  A Party adopting such
measures shall present as soon as possible to the other Party a timetable for their removal.
2. Where one or more Member States or the Former Yugoslav Republic of Macedonia is in
serious balance of payments difficulties, or under imminent threat thereof, the Community or the
Former Yugoslav Republic of Macedonia, as the case may be, may, in accordance with the conditions
established under the WTO Agreement, adopt restrictive measures, including measures relating toimports, which shall be of limited duration and may not go beyond what is strictly necessary to
remedy the balance of payments situation.  The Community or the Former Yugoslav Republic of
Macedonia, as the case may be, shall inform the other Party forthwith.
3. Any restrictive measures shall not apply to transfers related to investment and in particular to
the repatriation of amounts invested or reinvested or any kind of revenues stemming there from.
Article 33 (SAA 69)
Competition and other Economic Provisions
1. The following are incompatible with the proper functioning of the Agreement, in so far as
they may affect trade between the Community and the Former Yugoslav Republic of Macedonia:
(i) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(ii) abuse by one or more undertakings of a dominant position in the territories of the
Community or of the Former Yugoslav Republic of Macedonia as a whole or in a
substantial part thereof;
(iii) any public aid which distorts or threatens to distort competition by favouring certain
undertakings or certain products.WT/REG129/1
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2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the
application of the rules of Articles 81, 82 and 87 of the Treaty establishing the European Community.
3. (a) For the purposes of applying the provisions of paragraph 1(iii), the Parties recognise
that during the first four years after the en try into force of this Agreement, any public
aid granted by the Former Yugoslav Republic of Macedonia shall be assessed taking
into account the fact that the Former Yugoslav Republic of Macedonia shall be
regarded as an area identical to those areas of the Community described in Article
87(3)(a) of the Treaty establishing the European Community.
(b) Each Party shall ensure transparency in the area of public aid, inter alia by reporting
annually to the other Party on the total amount and the distribution of the aid givenand by providing, upon request, information on aid schemes.  Upon request by one
Party, the other Party shall provide information on particular individual cases of
public aid.  Each Party shall ensure that the provisions of this Article are applied
within five years of the Agreement's entry into force.
4. With regard to products referred to in chapter II of Title II:
- paragraph 1(iii) shall not apply.- any practices contrary to paragraph 1(i) shall be assessed according to the criteria
established by the Community on the basis of Articles 36 and 37 of the Treaty
establishing the European Community and specific Community instruments adopted
on this basis.
5. If the Community or the Former Yugoslav Republic of Macedonia considers that a particular
practice is incompatible with the terms of paragraph 1, and:
- if such practice causes or threatens to cause serious injury to the interests of the other
Party or material injury to its domestic industry, including its services industry, it may
take appropriate measures after consultation within the Cooperation Council or after
30 working days following referral for such consultation.
In the case of practices incompatible with paragraph 1(iii), such appropriate measures may,
where the WTO Agreement applies thereto, only be adopted in accordance with the procedures and
under the conditions laid down thereby or the relevant Community internal legislation.
6. The Parties shall exchange information taking into account the limitations imposed by the
requirements of professional and business confidentiality.
Article 34 (SAA 70)
With regard to public undertakings, and undertakings to which special or exclusive rights
have been granted, each Party shall ensure that as from the third year following the date of entry into
force of this Agreement, the principles of th e Treaty establishing the European Community, in
particular Article 86 thereof, are upheld.WT/REG129/1
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Article 35 (SAA 71)
Intellectual, Industrial and Commercial Property
1. Pursuant to the provisions of this Article and Annex VI, the Parties confirm the importance
that they attach to ensure adequate and effective protection and enforcement of intellectual, industrial
and commercial property rights.
2. The Former Yugoslav Republic of Macedonia shall take the necessary measures in order to
guarantee no later than five years after entry into force of this Agreement a level of protection of
intellectual, industrial and commercial property rights similar to that existing in the Community,
including effective means of enforcing such rights.3. The Former Yugoslav Republic of Macedonia undertakes to accede, within the period
referred above, to the multilateral conventions on intellectual, industrial and commercial property
rights referred to in Annex VI.
4. If problems in the area of intellectual, industrial and commercial property affecting trading
conditions occur, they shall be referred urgently to the Cooperation Council, at the request of either
Party, with a view to reaching mutually satisfactory solutions.
Article 36 (SAA 88(3))
Customs
Mutual assistance between administrative authorities in customs matters of the Parties shall
take place in accordance with the provisions of Protocol 5.
TITLE IV
Institutional, General and Final Provisions
Article 37
The Cooperation Council set up by the Cooperation Agreement signed on 29 April 1997, by
way of Exchange of Letters between the European Community and the Former Yugoslav Republic of
Macedonia, shall perform the duties assigned to it by  this Agreement according to the same modalities
as practised so far in the context of the Cooperation Agreement.
Article 38 (SAA 110 and 112)
1. The Cooperation Council shall, for the purpose of attaining the objectives of this Agreement,
have the power to take decisions within the scope of the Agreement in the cases provided for therein.
The decisions taken shall be binding on the Parties, which shall take the measures necessary toimplement the decisions taken.
2. The Cooperation Council may also make appropriate recommendations.  It shall draw up its
decisions and recommendations by agreement between the Parties.
3. The Cooperation Council may be assisted in the performance of his duties by a Joint
Committee composed by representatives of the Community, on the one hand, and of representatives
of the Government of the Former Yugoslav Repub lic of Macedonia, on the other, normally at senior
civil servant level.WT/REG129/1
Page 15
The duties of the Joint Committee should include the preparation of meetings of the
Cooperation Council.
4. The Cooperation Council may delegate to the Joint Committee any of its powers. In that event
the Joint Committee shall take decisions in accordance with the conditions laid down in paragraphs 1
and 2.
5. The Joint Committee should, as necessary, adopt its own rules of procedure.  The Joint
Committee would meet once a year.  Special meetings may be convened by mutual agreement, at the
request of either party.  The Joint Committee would be chaired alternately by each of the Parties.
Whenever possible the Agenda of the Joint Committee shall be agreed beforehand.
Article 39 (SAA 111)
Each Party may refer to the Cooperation Counc il any dispute relating to the application or
interpretation of this Agreement.  The Cooperation Council may settle the dispute by means of abinding decision.
Article 40 (SAA 115)
Within the scope of this Agreement, each Party undertakes to ensure that natural and legal
persons of the other Party have access free of discrimination in relation to its own nationals to the
competent courts and administrative organs of the Parties to defend their individual rights and their
property rights.
Article 41 (SAA 116)
Nothing in this Agreement shall prevent a Party from taking any measures:(a) which it considers necessary to prevent the disclosure of information contrary to its
essential security interests;
(b) which relate to the production of, or trade in, arms, munitions or war materials or to
research, development or production indispensable for defence purposes, provided
that such measures do not impair the conditions of competition in respect of products
not intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
disturbances affecting the maintenance of law and order, in time of war or serious
international tension constituting a threat of war or in order to carry out obligations it
has accepted for the purpose of maintaining peace and international security.
Article 42 (SAA 117)
1. In the fields covered by this Agreement and without prejudice to any special provisions
contained therein:
- the arrangements applied by the Former Yugoslav Republic of Macedonia in respect
of the Community shall not give rise to any discrimination between the Member
States, their nationals or their companies or firms;WT/REG129/1
Page 16
- the arrangements applied by the Community in respect of the Former Yugoslav
Republic of Macedonia shall not give rise to any discrimination between the nationals
of the Former Yugoslav Republic of Macedonia or its companies or firms.
2. The provisions of paragraph 1 shall be without prejudice to the right of the Parties to apply
the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as
regards their place of residence.
Article 43 (SAA 118)
1. The Parties shall take any general or specific measures required to fulfil their obligations
under this Agreement.  They shall see to it that the objectives set out in this Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil an obligation under this
Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it
shall supply the Cooperation Council with all re levant information required for a thorough
examination of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of measures, priority must be given to those which least disturb the
functioning of this Agreement.  These measures shall be notified immediately to the Cooperation
Council and shall be the subject of consultations within the Cooperation Council if the other Party so
requests.
Article 44 (SAA 119)
The Parties agree to consult promptly through appropriate channels at the request of either
Party to discuss any matter concerning the interpretation or implementation of this Agreement andother relevant aspects of the relations between the Parties.
The provisions of this Article shall in no way affect and are without prejudice to Articles 17,
24, 25 and 29.
Article 45 (SAA 121)
Protocols 1, 2, 3, 4 and 5 and Annexes I to VI shall form an integral part of this Agreement.
Article 46 (SAA 122)
This Agreement shall be applicable until the entry into force of the Stabilisation and
Association Agreement signed in Luxembourg on 9 April 2001.
Either Party may denounce this Agreement by notifying the other Party.  This Agreement
shall cease to apply six months after the date of such notification.
Article 47 (SAA 124)
This Agreement shall apply, on the one hand, to the territories in which the Treaty
establishing the European Community, applies and under the conditions laid down in this Treaty, and
to the territory of the Former Yugoslav Republic of Macedonia on the other.WT/REG129/1
Page 17
Article 48 (SAA 125)
The Secretary General of the Council of the European Union shall be the depository of the
Agreement.
Article 49 (SAA 126)
This Agreement is drawn up in duplicate each of the official languages of the Parties, each of
these texts being equally authentic.
Article 50 (SAA 127)
The Parties shall approve this Agreement in accordance with their own procedures.
This Agreement shall enter into force on the fi rst day of the second month following the date
on which the Parties notify each other that the procedures referred to in the first paragraph have been
completed.
Upon the entry into force of this Agreement, Articles 13 to 32 of the Cooperation Agreement
between the European Community and the Former Yugoslav Republic of Macedonia signed on
29 April 1997 by way of Exchange of Letters, shall be suspended.
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