WT/REG242/3  
14 September  2016 
(16-4859) Page: 1/2 
Committee on Regional Trade Agreements  Original:  English/Spanish  
 
  THE STABILISATION AND ASSOCIATION AGREEMENT (SAA) BETWEEN  
THE EUROPEAN  UNION AND BOSNIA AND HERZEGOVINA (SERVICES)  
QUESTIONS AND REPLIES  
 The following communication, dated 7 September  2016, is being circulated at the request of 
the delegations of the Euro pean Union and Bosnia and Herzegovina.  
 
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 This document reproduces the questions addressed to the Parties and the responses 
submitted.  
 
Question from the delegation of Canada  
 
Government procurement  
 
1.1.  Paragraph 4.11 : The factual presentatio n report by the Secretariat notes that 
"Article 74 of the Agreement concerns public procurement . The EU and Bosnia and 
Herzegovina consider that the opening up of the award of public contracts on the basis 
of non -discrimination and reciprocity, following i n particular WTO rules is a desirable 
objective . It further provides that EU companies not based in Bosnia and Herzegovina 
shall be granted access to contract award procedures in Bosnia and Herzegovina 
pursuant to the Bosnia and Herzegovina Law on Public P rocurement, no less than 
5 years after entry into force of the Agreement".  
 Would EU -based companies not based in Bosnia and Herzegovina also be granted 
access domestic review procedures in Bosnia and Herzegovina pursuant to the 
Bosnia  and Herzegovina Law on Public Procurement at the same time that they receive 
access to contract award procedures?  
 
 EU-based companies not based in Bosnia and Herzegovina should also be granted access 
under domestic review procedures under the Bosnia and Herzegovina Public Pr ocurement Law. 
Their current access is subject to domestic preferences that are going to be gradually abolished (at 
the latest five years after the entry into force of SAA).  
 
 Furthermore, according to the Law on Public Procurement of Bosnia and Herzegovin a 
("Official Journal of B&H " No. 39/14) appeals may be filed by any economic operator having or 
having had an interest in public procurement contract award, who makes it probable that damage 
was or could have been caused in the public procurement procedure  because of the actions of the 
contracting authority, and which is expressed in the appeal as an infringement of this Law and 
implementing regulations by the contracting authority in public procurement procedure. Also, 
Contracting authority and parties to the procedure may initiate an administrative dispute before 
the Court of Bosnia and Herzegovina against a Procurement Review Body of Bosnia and 
Herzegovina decision within 30 days from the day of the receipt of the decision.  
 WT/REG242/3  
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  Question from the delegation o f Peru  
 
1.2.  Does  Bosnia and Herzegovina consider that there are any disadvantages in signing 
this Agreement without being a member of the WTO?  
Response from the delegation of Bosnia and Herzegovina  
 
 Given that Bosnia and Herzegovina is in the final stage of n egotiation on accession to the 
World Trade Organization, it expects to become a member of the World Trade Organization at the 
end of the year. Although Bosnia and Herzegovina is not a formal member of the World  Trade  
Organization yet, it completely applies  the provisions of the General Agreement on Trade in 
Services and considers that there are no any disadvantages in signing of this agreement. Also, the 
Stabilisation and Association Agreement between the European Union and Bosnia  and Herzegovina 
is a Regio nal Trade Agreement in accordance with Article V of the GATS.  
 
Questions from the delegation of Thailand  
 
1.3.  Please give further clarification on Paragraph 3.6 which indicates that the 
Agreement does not explicitly specify denial of benefits to any particular  economy actor.  
 The EU and BiH SAA includes chapters on services and establishment but does not contain 
specific disciplines on investment protection. A denial of benefits to non -Party investors as part of 
international investment agreements is typically found in investment protection chapters.  
 
Since Bosnia and Herzegovina is not a member of the WTO yet, do  any special 
commitment and benefits which EU gave Bosnia and Herzegovina under this agreement 
such as commercial presence and movement of the workforc e will be automatically 
given to other parties of the WTO following the Most -Favour ed-Nation Treatment?  
 
 The Stabilisation and Association agreements are part of the EU Stabilisation and Association 
Process (SAP). These agreements are designed to prepare the country concerned to accede to the 
EU and its internal market and are therefore based on the EU's acquis communautaire.  
 
 With regard to the requirements of GATS Article V (1), the SAA agreement has:  
 
 substantial sectoral coverage, since all sectors are included, with the exception of air 
transport services, inland waterways transport services and maritime cabotage services. 
However, these sectors can be added upon a recommendation of the  Stabilisation and 
Association Council;  
 
 covers all modes of su pply (there  is no a priori exclusion) and;  
 
 provides for the absence or elimination of substantially all discrimination.  
 In accordance with Article V of the GATS, WTO M embers have the right to depart from the 
MFN rule in order to grant more favourable tr eatment to their trading partners within a 
customs  union or a free trade area without extending such treatment to all WTO Members. In this 
regard any special commitment and benefits which EU gave Bosnia and Herzegovina under this 
agreement, such as commerc ial presence and movement of the workforce, will not b e 
automatically given to other parties of the WTO following the Most -Favoured -Nation Treatment.  
 
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