WORLD TRADE
ORGANIZATIONWT/L/482
7 October 2002
(02-5387)
General Council
15-16 October 2002Original:  English
SWITZERLAND – PREFERENTIAL TREATMENT FOR ALBANIA AND
BOSNIA-HERZEGOVINA
Report of the Government of Switzerland under the
Decision of 18 July 20011
The following communication, dated 4 October 2002, has been received from the Permanent
Mission of Switzerland.
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1. Introduction
1. On 18 July 2001, Switzerland was granted a waiver (WT/L/406) from its obligations under
paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit Switzerland to affordduty-free or preferential treatment to eligible products originating in Albania and Bosnia-
Herzegovina, without being required to extend the same treatment to like products of any other
Member. This waiver will expire on 31 March 2004.
2. Under the terms of this waiver, Switzerland is  required to submit to the General Council an
annual report on the implementation of the preferential  treatment with a view to facilitating the annual
review provided for in paragraph 4 of Article IX of the WTO Agreement. This report covers the first
year after the entry into force of the preferential regime. Trade statistics are provided for the year2001 and the first half of 2002.
2. Preferential Treatment for Albania and Bosnia-Herzegovina
3. As of 1 April 2001, Switzerland has been granting an autonomous preferential import regime
for products originating in Albania and Bosnia-Herzegovina. This preferential treatment is the same
as the one applying to imports from least developed countries within the Swiss Generalized System ofPreferences (GSP). Pursuant to this scheme, Switzerland grants not only duty-free access for all
industrial products but also an exemption from customs duties on most agricultural products
2.
4. Prior to the entry into force of this new regime, Albania and Bosnia-Herzegovina benefited
from the preferences for developing countries within the Generalized System of Preferences (GSP).
By granting now the same preferential treatment as it is applied to least developed countries, theproduct coverage has been further extended, in particular with regard to agricultural products and
textiles and clothing.
                                                     
1 WT/L/406.
2 A list of the products covered by this scheme was annexed to the request for a waiver (G/C/W/257).WT/L/482
Page 2
5. This measure forms part of a comprehensive programme in the framework of the Stability
Pact for South Eastern Europe  and is limited to a period of three years. Further market opening is
expected to contribute to the process of political and economic stabilisation in the region. Based on the
same framework and objectives, the European Community and Turkey apply a similar preferential
regime to imports from countries of South Eastern Europe. The respective requests for a waiver from
the obligations under paragraph 1 of Article I of the GATT 1994 were accepted by the General C ouncil
on 8 December 20003.
3. Trade with Albania and Bosnia-Herzegovina
6. For the last five years, the trade balance for Albania and Bosnia-Herzegovina has remained
negative (see Tables 1 and 2). However, improved political stability in the region and the preferential
market access should help these countries to diversify their economies and to ameliorate their trade
balance. Swiss imports from Albania concentrated primarily on agricultural products and carpets (see
Table 3); imports from Bosnia-Herzegovina concentrated on wood and charcoal, leather products andagricultural products (see Table 4).
7. Statistical annexes are provided to present a detailed description of Swiss trade relations with
Albania and Bosnia-Herzegovina:
- Table 1 provides information on Swiss trade with Albania for 1997-2001, including
the first half of 2002.
- Table 2 provides information on Swiss trade with Bosnia-Herzegovina for
1997-2001, including the first half of 2002.
- Table 3 provides information on the leading Swiss imports by product (2 Digit
Description) from Albania for 1999-2001, including the first half of 2002.
- Table 4 provides information on the leading Swiss imports by product (2 Digit
Description) from Bosnia-Herzegovina for 1999-2001, including the first half of
2002.
                                                     
3 WT/L/380 (EC), WT/L/381 (Turkey).WT/L/482
Page 3TABLE 1
Switzerland's Trade with Albania , 1997-2002
Swiss Foreign Trade with Albania, 1997 - 2002, in CHF 1’000
          
YEAR IMPORTS  EXPORTS  TRADE
BALANCE
          
YearSwiss imports
from AlbaniaChange over the
previous year or
the same period of
the previous year
(in %)Swiss imports
from South East
European
CountriesShare of
Albania in
Swiss imports
from SEE
Countries
(in %) Swiss exports to
AlbaniaChange over the
previous year or
the same period of
the previous year
(in %)Swiss exports to
South East
European
CountriesShare of
Albania in
Swiss exports
to SEE
Countries
(in %) Trade balance
Swiss export -
imports from
(Albania)
1997 906 77.30 229’300 0.40  4’516 -55.80 875’663 0.52  3’610
1998 906 0.00 265’886 0.34  4’701 4.10 841’914 0.56  3’795
1999 365 -59.71 271’824 0.13  6’733 43.22 914’552 0.74  6’368
01.-06.1999 159  130’474 0.12  2’689  427’964 0.63  2’530
07.-12.1999 206  141’350 0.15  4’043  486’588 0.83  3’837
2000 445 21.92 364’146 0.12  9’073 34.75 1’015’380 0.89  8’628
01.-06.2000 182 14.47 169’032 0.11  3’829 42.39 538’410 0.71  3’647
07.-12.2000 263 27.67 195’114 0.13  5’244 29.71 476’970 1.10  4’981
2001 478 7.42 388’738 0.12  10’777 18.78 1’070’519 1.01  10’299
01.-06.2001 247 35.71 198’790 0.12  4’897 27.89 542’979 0.90  4’650
07.-12.2001 231 -12.17 189’949 0.12  5’880 12.13 527’540 1.11  5’649
01.-06.2002 153 -38.06 208’514 0.07  13’061 166.71 546’800 2.39  12’908
SEE Countries: Albania, Bosnia-Herzegovina, Bulgaria , Croatia, Macedonia, Romania, Slovenia, Yugoslavia.WT/L/482
Page 4TABLE 2
Switzerland's Trade with Bosnia-Herzegovina , 1997-2002
Swiss Foreign Trade with Bosnia and Herzegovina, 1997 - 2002, in CHF 1’000
          
YEAR IMPORTS  EXPORTS  TRADE
BALANCE
          
YearSwiss imports
from B&HChange over the
previous year or
the same period
of the previous
year
(in %)Swiss imports
from South East
European
CountriesShare of B&H in
Swiss imports
from SEE
Countries
(in %) Swiss exports to
B&HChange over the
previous year or
the same period
of the previous
year (in %)Swiss exports to
South East
European
CountriesShare of B&H
in Swiss
exports to
SEE
Countries
( in %) Trade balance
Swiss export -
imports from (B &
H)
1997 963 88.46 229’300 0.42  20’453 31.80 875’663 2.34  19’490
1998 3’803 294.91 265’886 1.43  26’187 28.04 841’914 3.11  22’384
1999 3’564 -6.28 271’824 1.31  31’316 19.59 914’552 3.42  27’752
01.-06.1999 1’931  130’474 1.48  15’166  427’964 3.54  13’235
07.-12.1999 1’632  141’350 1.15  16’150  486’588 3.32  14’518
2000 2’929 -17.82 364’146 0.80  32’213 2.86 1’015’380 3.17  29’284
01.-06.2000 1’577 -18.33 169’032 0.93  11’923 -21.38 538’410 2.21  10’346
07.-12.2000 1’352 -17.16 195’114 0.69  20’290 25.63 476’970 4.25  18’938
2001 3’755 28.20 388’738 0.97  28’630 -11.12 1’070’519 2.67  24’875
01.-06.2001 1’567 -0.63 198’790 0.79  13’278 11.36 542’979 2.45  11’711
07.-12.2001 2’188 61.83 189’949 1.15  15’352 -24.34 527’540 2.91  13’164
01.-06.2002 1’888 20.49 208’514 0.91  19’453 46.51 546’800 3.56  17’565
SEE Countries: Albania, Bosnia-Herzegovina, Bulgaria , Croatia, Macedonia, Romania, Slovenia, Yugoslavia.WT/L/482
Page 5
TABLE 3
Leading Swiss Imports by Product (2 Digit Description) from Albania , 1999 - 2002
Imports 1999
HS Chapter DescriptionValue in
CHFShare in
%
12Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit;
industrial or medical plants; straw and fodder 178’738 36.3
71Natural or cultured pearls, precious or semi-precious stones, precious
metals and articles thereof; imitation jewellery; coin 114’862 23.3
57 Carpets and other textile floor coverings 85’572 17.4
Total 379’172 77.0
Imports 2000
HS Chapter  DescriptionValue in
CHFShare in
%
12Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit;
industrial or medical plants; straw and fodder 170’512 36.9
07 Edible vegetables and certain roots and tubers 109’904 23.8
57 Carpets and other textile floor coverings 63’008 13.6
Total 343’424 74.3
Imports 2001
HS Chapter  DescriptionValue in
CHFShare in
%
12Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit;
industrial or medical plants; straw and fodder 211’859 44.0
07 Edible vegetables and certain roots and tubers 114’523 23.8
57 Carpets and other textile floor coverings 49’614 10.3
Total 375’996 78.1
Imports 2002 (01.-06.2002)
HS Chapter  DescriptionValue in
CHFShare in
%
12Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit;
industrial or medical plants; straw and fodder 70’593 46.1
07 Edible vegetables and certain roots and tubers 66’383 43.3
Total 136’976 89.4WT/L/482
Page 6
TABLE 4
Leading Swiss Imports by Product (2 Digit Description) from Bosnia-Herzegovina , 1999 - 2002
Imports 1999
 HS Chapter  DescriptionValue in
CHFShare in
%
44 Wood and articles of wood; wood charcoal 1'145’768 32.1
08 Edible fruit and nuts; peel of citrus fruit or melons 792’544 22.2
42Articles of leather; saddlery and harness; travel goods, handbags and
similar containers; articles of animal gut 739’464 20.7
Total 2’677’776 75.0
Imports 2000
 HS Chapter  DescriptionValue in
CHFShare in
%
42Articles of leather; saddlery and harness; travel goods, handbags and
similar containers; articles of animal gut 816’069 25.4
44 Wood and articles of wood; wood charcoal 790’706 24.6
08 Edible fruit and nuts; peel of citrus fruit or melons 354’112 11.0
71Natural or cultured pearls, precious or semi-precious stones, precious
metals and articles thereof; imitation jewellery; coin 277’200 8.6
Total 2’238’087 69.6
Imports 2001
 HS Chapter  DescriptionValue in
CHFShare in
%
42Articles of leather; saddlery and harness; travel goods, handbags and
similar containers; articles of animal gut 1'105’188 29.3
44 Wood and articles of wood; wood charcoal 950’730 25.2
07 Edible vegetables and certain roots and tubers 391’450 10.4
Total 2’447’368 64.9
Imports 2002 (01.-06.2002)
 HS Chapter  DescriptionValue in
CHFShare in
%
44 Wood and articles of wood; wood charcoal 553’828 29.2
42Articles of leather; saddlery and harness; travel goods, handbags and
similar containers; articles of animal gut 484’578 25.5
64 Footwear, gaiters and the like; parts of such articles 212’495 11.2
07 Edible vegetables and certain roots and tubers 177’337 9.3
Total 1’428’238 75.2
Source: Official Statistics of the Swiss Federal Customs Administration (SWISS – impex).
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