WORLD TRADE
ORGANIZATIONWT/L/435
7 December 2001
(01-6226)
General Council
19 December 2001Original:  English
EC - AUTONOMOUS PREFERENTIAL TREATMENT TO THE COUNTRIES
OF THE WESTERN BALKANS
Report of the European Community under the Decision of 8 December 20001
The following communication, dated 26 November 2001, has been received from the
Permanent Delegation of the European Commission.
_______________
1. Introduction
1. On 8 December 2000, the EU was granted a waiver (WT/L/380) from its obligations under
paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the European Community
to afford duty-free or preferential treatment to eligible products originating in Albania, Bosnia-
Herzegovina, Croatia, the Federal Republic of Yugoslavia and the former Yugoslav Republic of
Macedonia, without being required to extend the same duty-free or preferential treatment to like
products of any other member.  This waiver will expire on 31 December 2006.
2. Under the terms of this waiver, the European Co mmunity is required to submit to the General
Council an annual report on the implementation of the autonomous 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 calendar year 2001.
3. The EU trade regime vis-à-vis  these countries is currently regulated by the granting of
autonomous trade preferences and by the conclusion of Stabilization and Association Agreements.  As
trade statistics for the current year are not yet available, those presented in the annex to this report
reflect the situation that existed previously to the entry into force of the measures described below.
2. Autonomous trade preferences
4. The European Union already had a liberal trade regime towards the Western Balkans,
allowing more than 80 per cent of regional exports to enter the European Union duty-free.  On
1 December 2000 the EU Council of Ministers extended the duty-free access to the EU market for
products originating from this area even further.
5. The reason for such an extension was that the general level of imports from the Western
Balkans countries remained very low, being less than 0.6 per cent of all Community imports.  It was,
therefore, considered appropriate to further improve the Community's autonomous trade preferences
                                                     
1 WT/L/380.WT/L/435
Page 2
by removing all remaining tariff ceilings for industrial and agricultural products and by further
improving access to the Community market for agricultural and fishery products.
6. Further market opening is expected to contribute to the process of political and economic
stabilisation in the region.  Fully liberalized access to the markets of the European Union is also
foreseen as part of the Stabilization and Association Agreements.
3. The Stabilization and Association Agreements
7. The Stabilization and Association Agreements, which the EU intends to conclude with the
countries of the Western Balkans, are tools  which provide, much as the Europe Agreements did for
the candidate countries in Central Europe, for the economic development and political stabilisation of
the countries in the region, and to establish a clos e, long-term association between the EU and the
Western Balkans.
8. The Stabilization and Association Agreements aim at creating a free trade area for goods
among the parties over a transitional period in line with Article XXIV of the GATT 1994 andenvisages a progressive and reciprocal liberalisation of trade in services. Associated disciplines in
areas such as competition and state aid rules, intellectual property, public procurement, etc. are also
envisaged.
9. Two agreements of this kind have been concluded so far.  One with the former Yugoslav
Republic of Macedonia and one with Croatia.  The trade provisions of the agreement with the formerYugoslav Republic of Macedonia entered into force on 1 June 2001, by means of an interim
agreement. The trade provisions of the agreement with Croatia will enter into force on
1 January 2002. Both agreements establish a free trade area with the concerned country in line with
the obligations foreseen in Article XXIV of the GATT 1994.  At the same time they allow the
continuation of the autonomous preferences where these provide more favourable conditions for theexport of the goods originating in Croatia and in the former Yugoslav Republic of Macedonia.
4. Trade with the countries of the Western Balkans
10. In the year 2000 EU imports from the Western Balkans concentrated primarily on agricultural
and textile products.  With the exclusion of the latter, however, the trade balance for the countries of
the Western Balkans remained negative for all sectors.  The stabilization of the area plus the newexport opportunities described in the precedent paragraphs should help the Western Balkans countries
to diversify their economies and to ameliorate such a trade balance.
11. Statistical annexes are provided to present a detailed description of the EU trade relations
with the countries of the Western Balkans for the year 2000.  The first annex describes the trade
relations with the countries of the Western Balkans as a whole, while the remaining annexes describein detail the trade relations with each country of the region.WT/L/435
Page 3
ANNEX 1
WESTERN BALKANS
Population: 2000 24  Mio
Area: (1,000qkm) 264
Gross Domestic Prod. 2000 45 Bn euro
GDP Per Capita 2000 1,833 euro
EU TRADE WITH WESTERN BALKANS (MIO ECU/EURO)
Rank 1993 1995 2000 Rank 1993 1995 2000
39 Imports 2,148 2,763 4,562 24 Exports 3,250 5,486 9,688
Share of EU total 0.5 0.5 0.4 Share of EU total 0.7 1.0 1.0
Trade balance 1,102 2,723 5,123
MAIN PRODUCTS IN 2000 (MIO EURO AND %)
EU Imports EU Exports
Products ValueWestern
Balkans
share by
prod.Products ValueWestern
Balkans
share by
prod.Balance
Agricultural products 582 0.7 Agricultural products 1,065 1.8 484
Energy 68 0.0 Energy 424 1.4 356
Machinery 408 0.1 Machinery 1,942 0.7 1,534
Transport. material 133 0.1 Transport. material 1,220 0.9 1,087
Chemical products 323 0.5 Chemical products 1,166 0.9 843
Textiles and clothings 1,106 1.6 Textiles and clothings 1,028 2.6 -78
World*:  Intra-EU exclu
Sources:  EUROSTAT (COMEXT, CRONOS) FMI (DOTS) WEFA (WMM)WT/L/435
Page 4
ANNEX 2A
FYROM
Population: 2000 2 Mio
Area:  (1000qkm) 2000 26
Gross Domestic
Product2000 4 Bn euro External DEBT 1999 (Mio euro): 1,344
GDP Per Capita 2000 1,835 euro
EU TRADE WITH FYROM(MIO ECU/EURO)
Rank IMPORTS 1993 1995 2000 Rank EXPORTS 1993 1995 2000
78 535 664 742 66 675 880 1,321
Share of EU total 0.1 0.1 0.1 Share of EU total 0.1 0.2 0.1
Trade balance 140 216 579
MAIN PRODUCTS IN 2000 (MIO EURO AND %)
EU Imports FYROM
share
by productsEU Exports FYROM
share by
productsBalance
Products Value Products Value
Agricultural products 69 0.1 Agricultural products 135 0.2 67
Energy 0.3 0.00 Energy 262 0.9 261.9
Machinery 24 0.01 Machinery 184 0.1 160
Transport. material 62 0.1 Transport. material 200 0.1 138
Chemical products 3 0.0 Chemical products 83 0.1 80
Textiles and clothings 264 0.4 Textiles and clothings 201 0.5 -63
World*:  Intra-EU exclu
Sources:  EUROSTAT (COMEXT, CRONOS) IMF (DOTS) WEFA (WMM).WT/L/435
Page 5ANNEX 2B
PLACE OF FYROM IN EU TRADE (2000)
EU IMPORTS EU EXPORTS
Rank Products Mio euro Share by
productsShare of total Rank Products Mio euro Share by
productsShare of total
78 Total 742 0.1 100.0 66 Total 1,321 0.1 100.0
99 Agricultural products 69 0.1 9.2 69 Agricultural products 135 0.2 10.3
90 Energy 0 0.00 0.0 19 Energy 262.2 0.9 19.9
49 Non agricul. raw material 1 0.01 0.2 109 Non agricul. raw material 1.0 0.03 0.1
79 Office machi. and telec. equipment 2 0.00 0.2 68 Office machi. and telec. equipment 66 0.1 5.0
76 Power generating machinery 5 0.01 0.7 89 Power generating machinery 88 0.1 6.6
58 Transport material 62 0.1 8.3 70 Transport material 200 0.1 15.1
92 Chemical product 3 0.0 0.5 80 Chemical product 83 0.1 6.3
42 Textiles and clothing 264 0.4 35.6 33 Textiles and clothing 201 0.5 15.2
23 Iron and steel 164 1.1 22.1 73 Iron and steel 18 0.1 1.4
FYROM SHARE OF TOTAL EU TRADE BY PRODUCTS
0.00.20.40.60.81.01.2
%
0.00.10.20.30.40.50.60.70.80.9
Total
Agricultural
product
Energy
Non agricul.raw
mate.
Office machi.
And telec.
Power genera.
Machi.
Transport equip.
Chemical prod.
Textiles and Clot.
Iron and steel%
Imports Exports
Total 0.1 Total 0.1
Agricul. product 0.1 Agricultural product 0.2
Energy 0.0 Energy 0.9
Non agric. raw mate. 0.0 Non agricul. raw mate. 0.0
Offi. machi. and telec. 0.0 Office machi. and telec. 0.1
Power gene. machi. 0.0 Power genera. machi. 0.1
Transp. equip. 0.1 Transport equip. 0.1
Chemic. prod. 0.0 Chemical prod. 0.1
Textil.and clot. 0.4 Textiles and clot. 0.5
Iron and steel 1.1 Iron and steel 0.1
Source:  EUROSTAT (COMEXT)WT/L/435
Page 6
ANNEX 3A
F.R. OF YUGOSLAVIA
Population: 2000 10.6 Mio
Area: (1000qkm) 102
EU TRADE WITH F.R. OF YUG. (SERBIA-MONTENEGRO'S) (MIO ECU/EURO AND %)
Rank IMPORTS 1993 1995 2000 Rank EXPORTS 1993 1995 2000
75 2 31 805 55 52 192 1,794
Share of EU total % 0.04 0.1 0.08 Share of EU total % 0.05 0.04 0.19
Trade balance -2 -156 989
MAIN PRODUCTS IN 2000 (MIO EURO AND %)
EU ImportsF.R. OF YUG. by
(SERBIA-MON)
by productsEU ExportsF.R. OF
YUG by
productsBalance
Products Value Products Value
Agricultural products 174 0.2 Agricultural products 202 0.3 28
Energy 0 0.0 Energy 12 0.0 11.7
Machinery 43 0.0 Machinery 415 0.1 373
Transport. material 21 0.0 Transport. material 205 0.1 184
Chemical products 37 0.1 Chemical products 256 0.2 219
Textiles and clothings 118 0.2 Textiles and clothings 155 0.4 37
World*:  Intra-EU exclu
Sources:  EUROSTAT (COMEXT, CRONOS) IMF (DOTS) WEFA (WMM).WT/L/435
Page 7ANNEX 3B
PLACE OF F.R. OF YUGOSLAVIA (SERBIA-MONTENEGRO) IN EU TRADE (2000)
EU IMPORTS EU EXPORTS
Rank Products Mio euro Share by
productsShare of total Rank Products Mio euro Share by
productsShare of total
75 Total 805 0.1 100.0 55 Total 1,794 0.2 100.0
71 Agricultural products 174 0.2 21.6 55 Agricultural products 202 0.3 11.3
102 Energy 0.01 0.00 0.0 75 Energy 12 0.04 0.7
24 Non-agricul. raw material 20 0.3 2.5 46 Non-agricul. raw material 11.1 0.4 0.6
64 Office machi. and telec. equipment 4 0.00 0.5 59 Office machi. and telec. equipment 106 0.1 5.9
49 Power generating machinery 30 0.04 3.7 58 Power generating machinery 241 0.2 13.4
70 Transport material 21 0.02 2.6 68 Transport material 205 0.1 11.4
51 Chemical product 37 0.1 4.6 52 Chemical product 256 0.2 14.3
52 Textiles and clothing 118 0.2 14.7 38 Textiles and clothing 155 0.4 8.6
37 Iron and steel 70 0.5 8.7 56 Iron and steel 32 0.2 1.8
SHARE OF F.R. OF YUGOSLAVIA (SERBIA-MONTENEGRO) IN TOTAL EU TRADE BY PRODUCTS
0.00.10.10.20.20.30.30.40.40.50.5
%
0.00.10.10.20.20.30.30.40.4
%
Imports Exports
Total 0.1 Total 0.2
Agricul. product 0.2 Agricultural product 0.3
Energy 0.0 Energy 0.0
Non agric. raw mate. 0.3 Non agricul. raw mate. 0.4
Offi. machi. And telec. 0.0 Office machi. And telec. 0.1
Power gene. Machi. 0.0 Power genera. Machi. 0.2
Transp. equip. 0.0 Transport equip. 0.1
Chemic. prod. 0.1 Chemical prod. 0.2
Textil. and Clot. 0.2 Textiles and Clot. 0.4
Iron and steel 0.5 Iron and steel 0.2WT/L/435
Page 8Source:  EUROSTAT (COMEXT)WT/L/435
Page 9
ANNEX 4A
CROATIA
Population: 2000 4 Mio
Area: (1000qkm) 2000 57
Gross Domestic Product 2000 21Bn euro External Debt 1999 (Mio euro): 8,859
GDP Per Capita 2000 4,683 euro
EU TRADE WITH CROATIA (MIO ECU/EURO AND %)
Rank 1993 1995 2000 Rank 1993 1995 2000
54 1,749 1,892 2,207 35 2,270 3,736 4,624
Share of EU total 0.4 0.3 0.22 Share of EU total 0.5 0.7 0.49
Trade balance 521 1,844 2,417
MAIN PRODUCTS IN 2000 (MIO EURO AND %)
EU Imports EU Exports Balance
Products ValueCROATIA
share by
productsProducts ValueCROATIA
share by
products
Agricultural products 214 0.3 Agricultural products 390 0.6 176
Energy 65 0.0 Energy 75 0.3 10.3
Machinery 312 0.1 Machinery 960 0.3 648
Transport. material 40 0.0 Transport. material 640 0.4 600
Chemical products 275 0.4 Chemical products 670 0.5 394
Textiles and clothings 523 0.7 Textiles and clothings 476 1.2 -47
World*:  Intra-EU exclu
Sources:  EUROSTAT (COMEXT, CRONOS) IMF (DOTS) WEFA (WMM)WT/L/435
Page 10ANNEX 4B
PLACE OF CROATIA IN EU TRADE (2000)
EU IMPORTS EU EXPORTS
Rank Products Mio euro Share by
productsShare of Total Rank Products Mio euro Share by
productsShare of Total
54 Total 2,207 0.2 100.0 35 Total 4,624 0.5 100.0
63 Agricultural products 214 0.3 9.7 32 Agricultural products 390 0.6 8.4
52 Energy 65 0.0 2.9 37 Energy 75 0.3 1.6
31 Non agricul. raw material 10 0.1 0.5 39 Non agricul. raw material 15.2 0.5 0.3
47 Office machi. and telec. equipment 15 0.0 0.7 38 Office machi. and telec. equipment 264 0.3 5.7
31 Power generating machinery 129 0.2 5.9 39 Power generating machinery 487 0.4 10.5
67 Transport material 40 0.0 1.8 39 Transport material 640 0.4 13.8
29 Chemical product 275 0.4 12.5 34 Chemical product 670 0.5 14.5
30 Textiles and clothing 523 0.7 23.7 19 Textiles and clothing 476 1.2 10.3
47 Iron and steel 22 0.2 1.0 35 Iron and steel 115 0.6 2.5
CROATIA SHARE OF TOTAL EU TRADE BY PRODUCTS
0.00.10.20.30.40.50.60.70.8
Total
Agricul. product
Energy
Non agric.raw
mate.
Offi. machi. And
telec.
Power gene.
Machi.
Transp.equip.
Chemic.prod.
Textil.and Clot.
Iron and steel%
0.00.20.40.60.81.01.21.4
%
Imports Exports
Total 0.2 Total 0.5
Agricul. product 0.3 Agricultural product 0.6
Energy 0.0 Energy 0.3
Non agric. raw mate. 0.1 Non agricul. raw mate. 0.5
Offi. machi. and telec. 0.0 Office machi. and telec. 0.3
Power gene. machi. 0.2 Power genera. machi. 0.4
Transp. equip. 0.0 Transport equip. 0.4
Chemic. prod. 0.4 Chemical prod. 0.5
Textil. and clot. 0.7 Textiles and clot. 1.2
Iron and steel 0.2 Iron and steel 0.6
Source:  EUROSTAT(COMEST)WT/L/435
Page 11
ANNEX 5A
BOSNIA HERZEGOVINA
Population: 2000 4  Mio
Area: (1000qkm) 2000 51
Gross Domestic Product 2000 6 Bn euro External DEBT 1999 (Mio euro): 1,841
GDP Per Capita 2000 1,472 euro
EU TRADE WITH BOSNIA (MIO ECU/EURO)
Rank 1993 1995 2000 Rank 1993 1995 2000
85 Imports 31 23 533 73 Exports 93 158 1,137
Share of EU Total 0.01 0.004 0.05 Share of EU Total 0.02 0.03 0.1
Trade balance 62 135 604
MAIN PRODUCTS IN 2000 (MIO EURO AND %)
EU Imports EU Exports
Products ValueBOSNIA
share by
productsProducts ValueBOSNIA
share by
productsBalance
Agricultural products 93 0.1 Agricultural products 193 0.3 99
Energy 0 0.0 Energy 25 0.09 25
Machinery 20 0.01 Machinery 231 0.1 212
Transport. material 10 0.01 Transport. material 134 0.1 124
Chemical products 6 0.01 Chemical products 93 0.1 87
Textiles and clothings 101 0.1 Textiles and clothings 99 0.3 -2
World*:  Intra-EU exclu
Sources:  EUROSTAT (COMEXT, CRONOS) FMI (DOTS) WEFA (WMM)WT/L/435
Page 12ANNEX 5B
PLACE OF BOSNIA IN EU TRADE (2000)
EU IMPORTS EU EXPORTS
Rank Products Mio euro Share by
productsShare of total Rank Products Mio euro Share by
productsShare of Total
85 Total 533 0.05 100.0 72 Total 1,144 0.1 100.0
94 Agricultural products 93 0.1 17.5 57 Agricultural products 193 0.3 16.8
93 Energy 0.1 0.0 0.02 69 Energy 25.3 0.09 2.2
46 Non-agricul. raw material 1.4 0.02 0.25 93 Non-agricul. raw material 1.7 0.05 0.1
99 Office machi. and telec. equipment 0.8 0.001 0.2 73 Office machi. and telec. equipment 57 0.06 5.0
59 Power generating machinery 17 0.02 3.1 78 Power generating machinery 125 0.1 10.9
81 Transport material 10 0.01 1.9 85 Transport material 134 0.09 11.7
80 Chemical product 6 0.01 1.2 76 Chemical product 93 0.1 8.1
54 Textiles and clothing 101 0.1 19.0 50 Textiles and clothing 99 0.25 8.7
52 Iron and steel 12.281 0.085 2.3 72 Iron and steel 19 0.1 1.7
BOSNIA OF TOTAL EU TRADE BY PRODUCTS
0.00.00.00.10.10.10.10.10.2
%
0.00.10.10.20.20.30.30.4
%
Imports Exports
Total 0.1 Total 0.1
Agricul. product 0.1 Agricultural product 0.3
Energy 0.0 Energy 0.1
Non agric. raw mate. 0.0 Non agricul. raw mate. 0.1
Offi. machi. and telec. 0.0 Office machi. and telec. 0.1
Power gene. machi. 0.0 Power genera. machi. 0.1
Transp. equip. 0.0 Transport equip. 0.1
Chemic. prod. 0.0 Chemical prod. 0.1
Textil. and clot. 0.1 Textiles and clot. 0.3
Iron and steel 0.1 Iron and steel 0.1
Source:  EUROSTAT (COMEXT)WT/L/435
Page 13
ANNEX 6A
ALBANIA
Population: 2000 3.1 Mio
Area: (1000qkm) 2000 28.7
Gross Domestic Product 2000 4.1Bn euro  External DEBT 1999 (Mio euro): 914
GDP Per Capita 2000 1,329 euro
EU TRADE WITH ALBANIA (MIO ECU/EURO AND %)
Rank IMPORTS 1981 1990 2000 Rank EXPORTS 1981 1990 2000
109 104 97 275 89 91 131 805
Share of EU Total (%) 0.04 0.02 0.03 Share of EU Total (%) 0.05 0.04 0.1
Trade balance -13 34 529
MAIN PRODUCTS IN 2000 (MIO EURO AND %)
EU Imports ALBANIA
share by
productsEU Exports ALBANIA
share by
productsBalance
Products Value Products Value
Agricultural products 32 0.04 Agricultural products 145 0.2 113
Energy 3 0.002 Energy 50 0.2 47.3
Machinery 11 0.004 Machinery 151 0.1 141
Transport. material 1 0.001 Transport. material 42 0.03 41
Chemical products 1 0.002 Chemical products 64 0.1 63
Textiles and clothings 100 0.1 Textiles and clothings 98 0.2 -2
World*:  Intra-EU exclu
Sources:  EUROSTAT (COMEXT, CRONOS) IMF (DOTS) WEFA (WMM)WT/L/435
Page 14ANNEX 6B
PLACE OF ALBANIA IN EU TRADE (2000)
EU IMPORTS EU EXPORTS
Rank Products Mio euro Share by
productsShare of Total Rank Products Mio euro Share by
productsShare of Total
109 Total 275 0.03 100.0 89 Total 805 0.1 100.0
130 Agricultural products 32 0.04 11.5 63 Agricultural products 145 0.2 18.0
81 Energy 3 0.002 0.9 50 Energy 50 0.2 6.2
97 Non-agricul. raw material 0.01 0.0001 0.004 84 Non-agricul. raw material 2.1 0.1 0.3
72 Office machi. and telec. equipment 2 0.002 0.9 84 Office machi. and telec. equipment 45 0.04 5.6
83 Power generating machinery 4 0.01 1.5 92 Power generating machinery 61 0.04 7.6
131 Transport material 1 0.001 0.2 114 Transport material 42 0.03 5.2
110 Chemical product 1 0.0 0.4 89 Chemical product 64 0.1 8.0
55 Textiles and clothing 100 0.1 36.4 51 Textiles and clothing 98 0.2 12.2
55 Iron and steel 10 0.1 3.6 68 Iron and steel 24 0.1 3.0
ALBANIA SHARE OF TOTAL EU TRADE BY PRODUCTS
0.00.00.00.10.10.10.10.10.2
Total
Agricul. product
Energy
Non agric.raw
mate.
Offi. machi. And
telec.
Power gene.
Machi.
Transp.equip.
Chemic.prod.
Textil.and Clot.
Iron and steel%
0.00.10.10.20.20.3
%
Imports Exports
Total 0.0 Total 0.1
Agricul. product 0.0 Agricultural product 0.2
Energy 0.0 Energy 0.2
Non agric. raw mate. 0.0 Non agricul. raw mate. 0.1
Offi. machi. and telec. 0.0 Office machi. and telec. 0.0
Power gene. machi. 0.0 Power genera. machi. 0.0
Transp. equip. 0.0 Transport equip. 0.0
Chemic. prod. 0.0 Chemical prod. 0.1
Textil. and clot. 0.1 Textiles and clot. 0.2
Iron and steel 0.1 Iron and steel 0.1
Source:  EUROSTAT (COMEXT)
__________