WORLD TRADE  
ORGANIZATION  WT/REG166/1 
14 April 2004 
 
 (04-1664) 
Committee on Regional Trade Agreements Original:   English 
  
FREE TRADE AGREEMENT BETWEEN CROATIA  AND ALBANIA 
 
  The following communication, dated 8 March 2004, is being circulated at the request of the 
Delegations of the Republic of Cr oatia and the Republic of Albania.
1 
_______________ 
 
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF CROATIA 
AND THE REPUBLIC OF ALBANIA 
 
PREAMBLE  
 
 Desirous to develop and strengthen friendly rela tions, especially in the fields of economic co-
operation and trade, with an aim to contribute to  the progress of economic co-operation between the 
two countries and to increase the scope of mutual trade exchange, 
 
 The Republic of Croatia  and the Republic of Albania (hereinafter "the Parties"). 
 
 Confirming  their intention to participate actively in the process of economic integration in 
Europe and expressing their preparedness to co-opera te in seeking ways and means to strengthen this 
process; 
 
 Having  regard to the experience gained from the co-operation developed between the Parties 
to this Agreement  as well as between th em and their main trading partners; 
 
 Declaring  their readiness to undertake activities with a view to promoting harmonious 
development of their trade as well as to expanding and diversifying their mutual co-operation in the 
fields of joint interest, including fields not covere d by this Agreement, thus creating a framework and 
supportive environment based on equality, non discrimin ation, and a balance of rights and obligations; 
 
 Referring  to the mutual interest of the Partie s in the continual reinforcement of the 
multilateral trading system and considering that the provisions and instruments of the General 
Agreement on Tariffs and Trade 1994 (hereinafter  "GATT 1994") and the World Trade Organisation 
(hereinafter "WTO") constitute a basis for their foreign trade policy; 
 
 Resolved to lay down for this purpose provisions aimed at the progressive abolition of the 
obstacles to trade between the Parties in accordan ce with the provisions of these instruments, in 
particular those concerning the establishment of free trade areas; 
 
 Considering that no provision of this Agreement may be interpreted as exempting the 
Contracting Parties from their obligations  under other international agreements. 
  Have Decided , in pursuance of these objectives, to conclude the following Agreement 
(hereinafter referred to as "this Agreement"): 
                                                     
 
1 The Annexes of the Agreement have been submitted to the Secretariat for consultation by interested 
Members (office 1174). WT/REG166/1 
Page 2  
 
 Article 1 
 
Objectives
 
 1. The Parties shall gradually establish a free trad e area in a transitional period of six years, 
starting from the entry into force of this Agreem ent, in accordance with the provisions of this 
Agreement and in conformity with the definition,  set out in Article XXIV of the GATT 1994 and the 
Agreement establishing  WTO on substa ntially all their bilateral trade. 
2. The objectives of this Agreement are: 
(a) to increase  and enhance the economic co-ope ration between the Parties and to raise 
the standard of living of the population of the two countries,  
(b) to gradually eliminate restrictions on trade in goods, 
(c) to provide fair conditions of compe tition in trade between the Parties, 
(d) to contribute in this way, by the removal of barriers to trade, to the harmonious 
development and expansion of world trade, 
(e) to create conditions for further promotion of investments, particularly for the 
development of joint investment in both countries, 
(f) to promote trade and co-operation of the Parties on third countries’ markets. 
 
Article 2 
 
Basic Duties
 
 1. In the trade between the Parties covered by th is Agreement, the Parties shall apply their 
respective Customs Tariffs on the classifica tion of goods for imports into them. 
2. For each product the basic duty to which successive  reductions set out in this Agreement are 
to be applied shall be the Most Favoured Nation (MFN) rate of duty  in force on the date of entry into 
force of this  Agreement. 
3. If after entry into force of this Agreem ent, any tariff reduction is applied on an erga omnes  
basis, in particular, reductions resulting from the ta riff negotiations in the WTO, such reduced duties 
shall replace the basic duties referred to in paragr aph 2 as from that date when such reductions are 
applied. 
4. The reduced duties, calculated in accordance with paragraph 2,  shall be rounded  without 
decimal numbers, in accordance with  arithmetical rules. This, decimal additions from 0.1 - 0.4 should 
be avoided, while decimal 0.5 - 0.9 shall increase the principal by 1. 
5. The Parties shall communicate to each other their respective basic duties.  WT/REG166/1 
 Page 3 
 
 
 CHAPTER I : INDUSTRIAL PRODUCTS 
 
Article 3 
 
Scope  
 
1. The provisions of this Chapter shall apply to industrial products, originating in one of the 
Parties. 
2. For the purpose of this Agreement, the term  "industrial products" means products, falling 
within Chapters 25 to 97 of Harmonised Comm odity Description and Coding System with the 
exception of the products, listed in Annex I to this Agreement. 
Article 4 
 
Customs Duties On Imports And Charges Having Equivalent Effect  
 
1. From the date of entry into force of this  Agreement no new customs duties on imports or 
charges having equivalent effect shall be introduced , nor shall those already applied be increased in 
trade between the Parties. 
2. Customs duties on imports into the Republic of  Albania of products originating in the 
Republic of Croatia other than those specified in Annex II shall be abolished upon the entry into force 
of this Agreement. 
3. Customs duties on imports into the Republic of  Croatia of products originating in the 
Republic of Albania other than those specified in  Annex III shall be abolished upon the entry into 
force of this Agreement. 
Article 5 
 
Fiscal Duties  
  The provisions of Article 4 shall also apply to customs duties of a fiscal nature.  
Article 6 
 
Customs Duties On Exports And Charges Having Equivalent Effect
 
 1. No new customs duties on exports or charges havi ng equivalent effect shall be introduced in 
trade between the Parties as from the date of entry into force of this Agreement. 
2. On the date of entry into force of this Agreem ent, the Parties shall abolish all customs duties 
on exports and charges having equi valent effect between them. 
Article 7 
 
Quantitative Restrictions On Exports And Imports And Measures Having Equivalent Effect
 
 1. No new quantitative restrictions on exports and im ports or measures, havi ng equivalent effect, 
shall be introduced nor shall the existing be made mo re restrictive in the trade between the Parties as 
from the date of entry into force of this Agreement. WT/REG166/1 
Page 4  
 
 2. All quantitative restrictions on exports and imports from the Parties and measures having 
equivalent effect shall be abolished on the da te of entry into force of this Agreement. 
Article 8 
 
Technical Barriers To Trade
 
 
1. The rights and obligations of the Parties, rela ting to technical barriers to trade (technical 
regulations, standards and conformity assessment procedures) and the respective measures, shall be governed by the WTO Agreement on Technical Barriers to Trade. 
2. The Parties shall cooperate and exchange info rmation in the field of standardisation, 
metrology, conformity assessment and accreditation, with  the aim of eliminating technical barriers to 
trade. 
3. Each Party, upon a request from the other Party, shall submit information on particular 
individual cases of standards, technical rules or similar measures. 
4. The Parties will, where appropriate, enter into negotiations for the conclusion of agreements 
on mutual recognition in the field of conformity assessment, in the spirit of the recommendations of 
the WTO Agreement on Technical Barriers to Trade. 
 
CHAPTER II : AGRICULTURAL PRODUCTS 
 
Article 9 
 
Scope
 
 1. The provisions of this Chapter shall apply to ag ricultural products originating in the Parties. 
2. For the purpose of this Agreement the term "a gricultural products" m eans the products falling 
within Chapters 1 to 24 of the Harmonised Comm odity Description and Coding System, including the 
products listed in Annex I to this Agreement. 
Article 10 
 
Exchange Of Concessions
 
 
1. The Parties shall grant each other the concessions specified in Protocol 1 to this Agreement 
(hereinafter "Protocol 1") as laid down in that Prot ocol and in accordance with the provisions of this 
Chapter. 
2. Taking account of: 
 - the role of agriculture in their economies, 
 
 - the development of trade in agri cultural products between the Parties, 
  - the particular sensitivity of the agricultural products,   - the rules of their agricultural policies, 
  WT/REG166/1 
 Page 5 
 
 
  - the results of the multilateral trade negotiations under the WTO. 
 the Parties shall examine within the framework of th e Joint Committee referred in Article 33 to this 
Agreement (hereinafter "Joint Committee") the po ssibilities of granting each other further concessions 
in trade in agricultural products. 
 
Article 11 
 
Quantitative Restrictions On Exports And Measures Having Equivalent Effect
 
 
1. No new quantitative restrictions on exports or measures, having equivalent effect, shall be 
introduced nor shall the existing be made more rest rictive in the trade between the Parties from the 
date of entry into force of this Agreement. 
2. All quantitative restrictions on exports from th e Parties and measures, having equivalent 
effect, shall be abolished on the date of  entry into force of this Agreement. 
Article 12 
 
Concessions And Agricultural Policies  
 1. Without prejudice to the concessions granted under Article 10 to this Agreement the 
provisions of this Chapter shall not restrict in any way the pursuance of th e respective agricultural 
policies of the Parties or the taking of any measu res under such policies, including the implementation 
of the respective provisions under the  WTO. 
2. The Parties shall notify to the Joint Committe e changes in their respective agricultural 
policies pursued or measures applied, which may aff ect the conditions of trade in agricultural products 
between them as provided for in this Agreement. On  the request of any Party, prompt consultations 
shall be held to examine the situation. 
Article 13 
 
Specific Safeguards
 
  Notwithstanding other provisions of this Agreem ent, and in particular Article 19 to this 
Agreement, and given the particular sensitivity of  the agricultural products, if imports of products 
originating in a Party, which are subject to con cessions granted under this Agreement, cause serious 
disturbances to the markets of the other Party, the Party concerned shall immediately enter into 
consultations to find an appropriate solution. Pending  such solution, the Party concerned may take the 
measures it deems necessary. The type and durati on of the measure should not go beyond what is 
strictly necessary to remedy the situation. 
 
Article 14 
 
Sanitary And Phytosanitary Measures
 
 
1. The Parties shall apply their regulations in  sanitary and phytosanitary matters in a non-
discriminatory fashion and shall not introduce any measu res that have the effect of unduly obstructing 
trade.  
2. The veterino-sanitary measures and the work of  the veterinary services will be in accordance 
with international conventions in this field. WT/REG166/1 
Page 6  
 
 3. The phytosanitary measures and the work of the plant protection service will be in accordance 
with international conventions in this field. 
 
CHAPTER III : GENERAL PROVISIONS 
 
Article 15 
 
Internal Taxation
 
 1. The Parties shall refrain from any measures or practices of internal fiscal nature establishing, 
whether directly or indirectly, discrimination against products originating in the Parties. 
2. Products exported to territory of the Parties sh all not benefit from repayment of internal taxes 
in excess of the amount of indirect taxes imposed on them. 
Article 16 
 
Customs Unions, Free Trade Areas And Frontier Trade
 
 1. This Agreement shall not prevent the mainte nance or establishment of customs unions, free 
trade areas or frontier trade arrangements to the ex tent that these do not negatively affect the trade 
regime of the Parties and in particular the provisi ons, concerning rules of origin, provided for in this 
Agreement. 
2. Upon request the Parties shall inform each ot her of any agreement establishing customs union 
or free trade areas. 
Article 17 
 
Structural Adjustment
 
 
1. Exceptional measures of limited duration, deroga ting from the provisions of Article 4, may be 
taken by any of the Parties in the form of increased customs duties. 
2. These measures may only concern infant i ndustries, or certain sectors undergoing 
restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 
3. Customs duties on imports, applicable in the Pa rty concerned to products, originating in the 
other Party, introduced by these measures may not exceed 25% ad valorem  and shall maintain an 
element of preference for products, originating in th e other Party. The total value of imports of the 
product, subject to these measures, may not exceed 15%  of total imports of industrial products from 
the other Party, as defined in Article 4, during the l ast year for which statistical data is available. 
4. The Party concerned shall inform the Joint Committee of any exceptional measures it intends 
to take and, upon request of the other Party, consu ltations shall be held within the Joint Committee on 
such measures and the sectors to which they appl y, before they are applied. When taking such 
measures, the Party concerned shall provide the Jo int Committee with a sche dule for the elimination 
of the customs duties, introduced under this Article . This schedule shall provide for a phasing out of 
these duties, starting at the latest two years after their introduction, at equal annual rates. The Joint 
Committee may decide upon a different schedule.  WT/REG166/1 
 Page 7 
 
 
 Article 18 
 
Antidumping And Countervailing Measures  
  Nothing in this Agreement shall prejudice or affe ct in any way the taking, by either Party of 
anti-dumping or countervailing measures in accordan ce with the Agreement  on Implementation of 
Article VI of the GATT 1994 and the Agreem ent on Subsides and Countervailing Measures. 
 
Article 19 
 
General Safeguards
 
  Where any product is being imported into either  of the Parties in such increased quantities and 
under such conditions as to cau se or threaten to cause: 
 
(a) serious injuries to domestic producers of a lik e or directly competitive products in the 
territory of the importing Party, or 
(b) serious disturbances to any related sector of the economy or difficulties which could 
bring about serious deterioration in the ec onomic situation of a region, the  Party 
concerned may take appropriate measures under the conditions and in accordance 
with the procedure, laid down in Article 22. 
Article 20 
 
Re-Export And Serious Shortage
 
 1. Where compliance with the provisions of Articles 6 and 7 leads to: 
(a) re-export towards a third country against which the exporting Parties maintains for 
the product concerned quantitative export r estrictions, export duties or measures or 
charges having equivalent effect; or 
(b) a serious shortage, or threat thereof, of a product essential to the exporting  Party; 
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 appropr iate measures under the c onditions and in accordance 
with the procedures, laid down in Article 22. 
 2. Measures, taken as a result of the situation referre d to in paragraph 1, shall be applied in a 
non-discriminatory manner and be eliminated when conditions no longer justify their maintenance. 
Article 21 
 
State Monopolies
 
 1. The Parties shall adjust progressively any state monopoly of a commercial character so as to 
ensure that by the date of entry into force of  this Agreement, no discrimination regarding the 
conditions under which goods  are procured and marketed exists between nationals of the Parties. 
2. The Joint Committee shall be informed about the measures adopted to implement this 
objective. WT/REG166/1 
Page 8  
 
 Article 22 
 
Procedure For The Application Of Safeguard Measures
 
 1. Before initiating the procedure for the applica tion of safeguard measures, set out in the 
following paragraphs of this Article, the Parties sha ll endeavor to solve any differences between them 
through direct consultations. 
2. If a Party subjects imports of products, liable to give rise to the situation, referred to in  
Article 19, to an administrative procedure, the pur pose of which is the rapid provision of information 
on the trend of trade flows, it shall inform the other Party. 
3. Without prejudice to paragraph 7 of this Ar ticle a Party which considers resorting to 
safeguard measures shall promptly notify the other Pa rty thereof and supply all relevant information. 
Consultations between the Parties shall take place wi thout delay in the Joint Committee with a view to 
finding a mutually acceptable solution. 
4. (a) As regard Articles 18, 19 and 20 to th is Agreement, the Joint Committee shall 
examine the case of the situation and may take any decision needed to put an end to 
the difficulties notified by the Party concer ned. In the case of the absence of such 
decision within thirty days of the matter being referred to the Joint Committee, the 
Party concerned may adopt the measures necess ary in order to remedy the situation, 
(b) As regard Article 36 to this Agreement, the Party concerned may take appropriate 
measures after the consultations have b een concluded or after a period of three 
months has elapsed from the date of the first notification to the other Party, 
(c) As regards Article 27 and 28 to this Agreem ent, the Party concerned shall give the 
Joint Committee all the assistance required in order to examine the case and, where 
appropriate, eliminate the practice objected to. If the other  Party fails to put an end to 
the practice objected to within the period fi xed by the Joint Committee, or if the Joint 
Committee fails to reach an agreement with in thirty working days on the matter, 
being referred to it, the Party concerned ma y adopt appropriate such measures to deal 
with the difficulties, resulting from the practice in question. 
5. The safeguard measures taken shall be notified immediately to the Party. They shall be 
limited, with regard to their extent and to their dur ation, to what is strictly necessary to remedy the 
situation, giving rise to their application and shall not  be in excess of the injury, caused by the practice 
or the difficulty in question. Priority shall be given to such measures that will least disturb the 
functioning of this Agreement. 
6. The safeguard measures taken shall be an object  of periodic consultations within the Joint 
Committee with a view to their relaxation or a bolition when conditions no longer justify their 
maintenance. 
7. Where exceptional circumstances, requiring immediate action, make prior examination 
impossible, the Party concerned may, in the cases of  Articles 18, 19 and 20 to this Agreement, apply 
forthwith the provisional measures, strictly necessary to remedy the situation. The measures shall be 
notified without delay and consulta tions between the Parties shall take place as soon as possible 
within the Joint Committee. 
 
  WT/REG166/1 
 Page 9 
 
 
 Article 23 
 
General Exceptions  
  This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in 
transit, justified on grounds of public morality, pu blic policy or public security, the protection of 
health and life of humans, animals or plants a nd environment; the protection of national treasures 
possessing artistic, historic or archeological value; the protection of intellectual property or rules, 
relating to gold or silver or the conservation of exhaustible natural resources, if such measures are 
made effective in conjunction with restricti ons on domestic production or consumption. Such 
prohibitions or restrictions shall not, however, c onstitute a means of arbitrary discrimination or a 
disguised restriction on trade between the Parties.  
Article 24 
 
Rules Of Origin And Co-Operation In Customs Administration
 
 1. Protocol 2 of this Agreement lays down th e rules of origin and related methods of 
administrative co-operation. 
2. The Parties shall take appropriate measures, in cluding regular reviews in the Joint Committee, 
and arrangements for administrative co-operation, to  ensure that the provisions of Protocol 2 and 
Articles 2 to 8, 12, 15 and paragraph 1 of Ar ticle 16 of this Agreement are effectively and 
harmoniously applied, and to reduce, as far as pos sible, the formalities, imposed on trade, and to 
achieve mutually satisfactory solutions to any difficulties, arising from the operation of those 
provision. 
Article 25 
 
Restriction Authorised
 
  Both Parties agree to co-operate to reduce the potential for fraud in the application of the 
trade provisions of this Agreement.  
 Notwithstanding other provisions of this Agreem ent, and in particular Articles 13, 19 and 25 
Protocol 2, 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 economic 
conditions such as normal production and exports capacities, or failure  to provide administrative co-
operation as required for the verification of evidence of  origin by the other Party, both Parties shall 
enter into consultations immediately to find an appr opriate solution. Pending such solution, the  Party 
concerned may take the appropriate measures it deems necessary. In the selection of the measures priority must be given to those which least distur b the functioning of the arrangements established in 
this Agreement.   
Article 26 
 
Payments
 
  Any payment arising from trade of goods, services and rights to non material goods between the Parties shall be made in convertible curre ncy, in accordance with the respective national 
legislation of the Parties.  
  WT/REG166/1 
Page 10  
 
 Article 27 
 
Rules Of Competition Concerning Undertakings
 
 1. The following are incompatible with the proper functioning of this Agreement in so far as 
they may affect trade between the Parties: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings which have as their object or effect the 
prevention, restriction or distortion of competition; 
(b) abuse by one or more undertakings of a dominant position in the territories of the 
Parties as a whole or in substantial part thereof. 
2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public 
undertakings and undertakings to which the Parties grant special or exclusive rights. Undertakings 
entrusted with the operation of services of general economic interest or having the character of a 
revenue-producing monopoly, shall be subject to provisi ons of paragraph 1 in so far as the application 
of these provisions does not obstruct the performance, in law or fact, of the particular public tasks 
assigned to them. 
3. With regard to products referred to in Chapte r II to this Agreement the provisions stipulated 
in paragraph 1 (a) shall not apply to such agreemen ts, decisions and practices which form an integral 
part of a national market organization. 
4. If a Party considers that a given practice is inco mpatible with paragraphs 1, 2 and 3 of this 
Article or if such practice causes or threatens to cause  serious prejudice to the interest of that Party or 
material injury to its domestic industry, the Part y concerned may take appropriate measures under the 
conditions and in accordance with the procedure laid down in Article 22 of this Agreement. 
Article 28 
 
State Aid
 
 1. Any aid granted by a Party or through state res ources in any form whatsoever which distorts 
or threatens to distort competition by favouring certain undertakings or the production of certain 
goods shall, in so far as it may affect trade betwee n the  Parties, be incompatible with the proper 
functioning of this Agreement. 
2. The provisions of paragraph 1 shall not apply to products covered by Chapter II to this 
Agreement. 
3. The Parties shall ensure transparen cy in the area of state aid, inter alia , by reporting annually 
to the Joint Committee on the total amount and the di stribution of the aid given and by providing to 
the other Party, upon request, information on aid schemes and on particular individual cases of state 
aid. 
4. If a Party considers that a particular practice: 
 - is incompatible with th e terms of paragraph 1, or 
  - causes or threatens to cause serious prejudice to  the interest of that Party or material 
injury to its domestic industry,  WT/REG166/1 
 Page 11 
 
 
  
it may take appropriate measures under the conditions  of and in accordance with the provisions laid 
down in Article 22 of this Agreement.   Such appropriate measures may only be taken in conformity with the procedures and under 
the conditions laid down by the Agreement establishing WTO, particularly the GATT 1994 and any 
other relevant instrument negotiated under their au spices, which are applicable between the Parties. 
 
Article 29 
 
Balance Of Payments Difficulties
 
  Where one of the Parties is in serious balan ce of payments difficulties, or under imminent 
threat thereof, the Party concerned may, in accordance with the conditions established under the 
GATT 1994 and Article VIII of the Articles of Agreem ent of the International Monetary Fund, adopt 
restrictive measures, including measures related to  imports, which shall be of limited duration and 
may not go beyond what is necessary to remedy the ba lance of payments situation. The measures shall 
be progressively relaxed as balance of payments co nditions improve and they shall be eliminated 
when conditions no longer justify their maintenance.  The Party concerned shall inform the other Party 
forthwith of their introduction and, whenever pr acticable, of a time schedule for their removal. 
 
Article 30 
 
Intellectual Property Rights
 
 1. The Parties shall grant and ensure adequate a nd effective protection of intellectual property 
rights on a non-discriminatory basis, including effec tive measures for enforcing such rights against 
infringement, and particularly agai nst counterfeiting and piracy. Parties agree to comply with the 
substantive standards of the multilate ral agreements listed in Annex IV. 
2. For the purpose of this Agreement the term "intellectual property" refers to:                  
protection of copyright and related rights, includi ng computer programs and databases, the rights of 
inventors, design creators, the patent rights and inve ntions or utility models, trade marks, industrial 
designs and topographies of integrated circuits, geog raphical indications including mark of origin, as 
well as undisclosed information including "know-how". 
3. In fulfilment of their commitments under interna tional agreements and legislation in the field 
of intellectual property rights, the Parties to this Ag reement shall not grant to nationals of the state of 
the other Party treatment less favourable than th at accorded to nationals of any third state. 
4. The Parties shall co-operate in matters of inte llectual property. Upon request of a Party, they 
shall hold expert consultations on these matters, in pa rticular on activities relating to the existing or to 
future international conventions concerning the harmonisation, administration and enforcement of 
intellectual property and on activities in interna tional organisations, such as the WTO, World 
Intellectual Property Organisation, as well as on the relations of the Parties with any third country on intellectual property matters. 
5. The implementation of this article shall be re gularly assessed by the Parties. Upon difficulties 
in trade in relation with the rights of intellectua l property, any of the Parties may request urgent 
consultations for finding mutually satisfactory solution. WT/REG166/1 
Page 12  
 
 Article 31 
 
Public Procurement
 
 1. The Parties consider the liberalization of th eir respective public procurement markets as an 
objective of this Agreement. The Parties aim at opening up of the award of public procurement on the 
basis of non-discrimination and reciprocity. 
2. The Parties will progressively develop their r espective rules, conditions and practices on 
public procurement and shall grant suppliers of the other Party access to contract award procedures on 
their respective public procurement markets not less favourable than that accorded to companies of 
any third country. 
3. The Joint Committee shall examine developments related to the achievement of the objectives 
of this Article and may recommend practical m odalities of implementing the provisions of    
paragraph 2 so as to ensure free access, transpar ency and full balance of rights and obligations. 
During the examination referred to this paragraph from this article, the Join t Committee may consider, 
especially in the light of international regulati ons in this area, the possibility of extending the 
coverage and/or the degree of the market  opening provided for in paragraph 2. 
4. The Parties shall endeavour to accede to th e relevant Agreements negotiated under the 
auspices of the GATT 1994 and the Agreement establishing the WTO. 
Article 32 
 
Services And Investment
 
 1. The Parties to this Agreement recognise the gr owing importance of certain areas, such as 
services and investments. In their efforts to gra dually develop and broaden their co-operation, in 
particular in the context of the European integrati on, they will co-operate with the aim of achieving a 
progressive liberalisation and mutual opening of their markets for investments and trade in services, 
taking into account relevant provisions of th e General Agreement on Trade and Services. 
2. The Parties will discuss in the Jo int Committee  this co-operation with the aim of developing 
and deepening of their relations  governed in this Article. 
 
CHAPTER IV : INSTITUTIONAL AND FINAL PROVISIONS 
 
Article 33 
 
The Joint Committee
 
 
1. A Joint Committee is hereby established and sh all be composed of representatives of the 
Parties. 
2. The implementation of this Agreement shall be  supervised and administered by the Joint 
Committee. 
3. For the purpose of the proper implementation of this Agreement, the Parties shall exchange 
information and, at the request of any Party, shal l hold consultations within the Joint Committee. The 
Committee shall keep under review the possibility of further removal of the obstacles to trade between 
the Parties.  WT/REG166/1 
 Page 13 
 
 
 4. The Joint Committee may take d ecisions in cases provided for in  this Agreement. On other 
matters the Committee may make recommendations. 
Article 34 
 
Procedures Of The Joint Committee  
 
1. For the proper implementation of this Agreemen t, the Joint Committee shall meet whenever 
necessary, but at least once a year. Each Party may request that a meeting to be held. 
2. The Joint Committee shal l act by consensus. 
3. If a representative in the Joint Committee of a Pa rty has accepted a decision, subject to the 
fulfilment of internal legal require ments, the decision shall enter in to force, if no later date is 
contained therein, on the date of receipt of the written notification about the fulfilment of such 
requirements. 
4. For the purpose of this Agreement the Joint Committee shall adopt its rules of procedure 
which shall, inter alia , contain provisions for convening meetings  and for the designation of the Chair 
person and its term of office. 
5. The Joint Committee may decide  to set up such sub-committe es and working groups, as it 
considers necessary to assist it in accomplishing its tasks. 
Article 35 
 
Security Exceptions  
 
 Nothing in this Agreement shall prevent a Party from taking any measures which it considers 
necessary:  
(a) to prevent the disclosure of information c ontrary to its essential security interests; 
(b) for the protection of its essential security interests or for the implementation of 
international obligations  or national policies: 
(i) relating to the traffic in arms, ammun ition and implements of war, provided 
that such measures do not impair the c onditions of competition in respect of 
products not intended for specifically military purposes, and to such traffic in other goods, materials and services as is carried on directly or indirectly for 
the purpose of supplying a military establishment; or 
(ii) relating to the non-proliferation of biological and chemical weapons, nuclear 
weapons or other nuclear explosive devices; or 
(iii) taken in time of war or other serious in ternational tension, constituting threat 
of war. WT/REG166/1 
Page 14  
 
 Article 36 
 
Fulfillment Of Obligations
 
 1. The Parties shall take all necessary measures to  ensure the achievement of the objectives and 
the fulfilment of the obligations under this Agreement. 
2. If any Party considers that the other Party has failed to fulfil an obligation under this 
Agreement, the Party concerned may take the appropriate measures under the conditions and in 
accordance with the procedures laid down in Article 22. 
Article 37 
 
Evolutionary Clause
 
 1. Where a Party considers that it would be useful in the interest of the economies of the Parties 
to develop and deepen the relations  established by this Agreement by extending them to fields not 
covered thereby, it shall submit a reasoned request to  the other Party. The Parties may instruct the 
Joint Committee to examine such request and, where appropriate, to  make recommendations to them, 
particularly with a view to opening negotiations. 
2. Agreements resulting from the procedure referre d to in paragraph 1 will be subject to 
ratification or approval by the Parties in accordance with their national legislation. 
Article 38 
 
Amendments
 
  Amendments to this Agreement other than those decided upon in accordance with paragraph 
3 of Article 34, and which are approved by the Joint Committee, shall enter into force on the date of a 
receipt of the later diplomatic note, confirming that  all procedures required by the national legislation 
of each Party for entry into force of th e amendments have been completed.  
 
Article 39 
 
Annexes And Protocols
 
 
1. Annexes and Protocols to this Agreement are an integral part of it. 
2. The Joint Committee may decide to amend the A nnexes and Protocols to this Agreement in 
accordance with the provisions of   paragraph 2 of Article 34. 
3. In this case the amendments shall enter into force on the date of a receipt of the                           
last written notification through diplomatic channels  confirming that the internal legal requirements 
for the entry into force of the amendments have been fulfilled. 
Article 40 
 
Duration And Denunciation  
 
1. This Agreement is concluded for an indefinite period of time.  WT/REG166/1 
 Page 15 
 
 
 2. Each Party may denounce this Agreement by  a written notification through diplomatic 
channels to the other Party. The denunciation sha ll enter into force on the first day of the seventh 
month after the date of receipt the notification of denunciation. 
3. The Parties agree that in the event of any Pa rty becoming a member of the European Union, 
that Party will withdraw from this Agreement at the latest the day before membership takes effect and 
without any compensation to the other Party su bject to the altered conditions of trade. 
Article 41 
 
Entry Into Force  
 
 This Agreement is subject to ratification. It sh all enter into force on the first day of the second 
month following the date of the receipt of the last written notification by which  Parties inform each 
other through diplomatic channels that all necessary requirements foreseen by their internal legislation 
for the entry into force of this Agreement have been fulfilled.  
 
 IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorised thereto, 
have signed the present Agreement.   DONE in Zagreb, on 27th September 2002,  in two originals each in the Croatian, Albanian and English languages, all three texts being equally authentic. In case of dive rgence in interpretation 
the English text shall prevail. 
  
__________