WT/REG323/1  
12 June 2013  
(13-3051)  Page: 1/40  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN MONT ENEGRO AND THE EFTA STATES 
(GOODS) 
Report by the Secretariat 
This report, prepared for the consideration of the Free Trade Agreement between 
Montenegro and the EFTA States has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation with the Parties. The report has been drawn 
up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to Rohini Acharya 
(tel: +41 22 739 5874). Any statistical questions arising from this report may be 
addressed to Ms. Alejandra Barajas (tel: +41 22 739 6425). WT/REG323/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 6  
2.1   Background  Information ............................................................................................. 6  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 7  
3.1   Import duties and charges, and quantitative restrictions ................................................. 7  
3.1.1   General provisions .................................................................................................. 7  
3.1.2   Liberalization of  trade and ta riff lines ......................................................................... 8  
3.1.2.1   EFTA ................................................................................................................ .. 8 
3.1.2.2   Montenegro ........................................................................................................ 10 
3.1.3   Liberali zation schedule............................................................................................ 11 
3.1.3.1   EFTA ................................................................................................................ . 11 
3.1.3.2   Montenegro ........................................................................................................ 15 
3.1.4   Tariff rate quotas ................................................................................................... 20 
3.2   Rules of origin .......................................................................................................... 20 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 21 
3.4   Regulatory Provisions of the Agreement ....................................................................... 21 
3.4.1   Standards ............................................................................................................. 21 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 21 
3.4.1.2   Technical barriers to trade .................................................................................... 21 
3.4.2   Safeguard mechanisms ........................................................................................... 21 
3.4.2.1   Global Safeguards ............................................................................................... 21 
3.4.2.2   Bilateral safeguards ............................................................................................. 22 
3.4.2.3   Balance of payments safeguards ........................................................................... 22 
3.4.3   Anti-dumping and countervailing measures ............................................................... 23 
3.4.3.1   An ti-dumpi ng ..................................................................................................... 23 
3.4.3.2   Counterv ailing measures ...................................................................................... 23 
3.4.4   Subsidie s and State-aid .......................................................................................... 23 
3.4.5   Customs-re lated procedures .................................................................................... 23 
3.4.6   Other regulations ................................................................................................... 24 
3.5   Sector-Specific Prov isions of the Agreement ................................................................. 24 
4   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 24  
4.1   Tran sparency ........................................................................................................... 24 
4.2   Current payments and capital movements .................................................................... 24 
4.3   Exceptions ............................................................................................................... 24 
4.4   Accession and Withdrawal .......................................................................................... 25 
4.5   Institutio nal framework ............................................................................................. 25 
4.6   Disput e settlement ................................................................................................... 25 
4.7   Relationship with other agr eements concluded by the Parties .......................................... 26 WT/REG323/1 
 
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  4.8   Government  procurement .......................................................................................... 28 
4.9   Intellectual Property Rights ........................................................................................ 28 
4.10   Other .................................................................................................................. .. 29 
4.10.1   Services .............................................................................................................  30 
4.10.2   In vestment ......................................................................................................... 30 
4.10.3   Competition ........................................................................................................ 30 
4.10.4   Labour and en vironmental issues ........................................................................... 30 
ANNEX 1 ....................................................................................................................... . 32 
 WT/REG323/1 
 
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Key Facts 
 
Parties to the Agreement:  
 
Montenegro, and the EFTA Member States (Iceland, 
Liechtenstein, Norway and Switzerland). 
 
Date of Signature: 14 November 2011 
 
Date of Entry into Force:  1 September 2012 (Montenegro, 
Liechtenstein and Switzerland); 1 October 2012 (Montenegro 
and Iceland); and 1 November 2012 (Montenegro and Norway). 
 
Date of Notification:  25 October 2012. 
 
Full implementation: 2018 
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Free Trade Agreement (hereafter the Agreement) between Montenegro and the EFTA 
Member States (Iceland, Liechtenstein, Norway an d Switzerland, hereafter EFTA) is Montenegro's 
fourth and EFTA's 24th joint RTA as notified to the WTO.2  
1.2.  In 2011, the combined EFTA States' GDP was US$1,135 billion, while Montenegro's was 
US$ 4,550 million; their per capita GDPs amounted to US$45,332 (EFTA States' average) and 
US$7,199 respectively. Their participation in world trade is also significantly different. EFTA's global ranking in exports and imports was 15 and 9 while in 2011 Montenegro's was 133 and 
121 respectively (excluding intra-EU trade). Bilate ral trade between the Parties shows that EFTA is 
a considerably more important market for Montenegro than Montenegro for EFTA. In 2012 Montenegro was the 122
nd largest source of imports and 113rd largest export destination for EFTA 
while EFTA was the 11th largest source of imports and 6th largest export destination for 
Montenegro. Over half of the imports of all the Parties are manufactures3; Switzerland mainly 
exports manufactures (86.2%), Iceland agricultural products (43.3%) and fuels and mining (42.3%), and Norway and Montenegro fuels and mining products (73.8% and 62.7% respectively). 
1.3.  The evolution of global and bilateral trade of  the Parties is shown in Charts 1.1 and 1.2 below 
during 2000-11. EFTA has registered a growing trade surplus in its international trade, both with 
the world and with Montenegro, the latter sinc e 2006 when figures for trade with Montenegro 
became available. Montenegro's global trade deficit widened between 2006 and 2008 mainly due to 
a sharp increase in imports, but has remained steady since then. In bilateral trade too it has a trade deficit with EFTA which has also been declining.
4 
1.4.  Chart 1.3 shows the commodity structure of  trade between Montenegro and EFTA, as well as 
with the world, during 2009-11, on the basis of Harmonized System (HS) sections. Montenegro's 
two largest import categories from EFTA, minerals  and chemicals (which accounted for 83.5% of its 
bilateral imports) were also EFTA's two largest gl obal export categories (accounting for over 50% 
of exports). In comparison the structure of EFTA's imports from Montenegro is quite different from 
that of Montenegro's global exports: EFTA's mo st important imports from Montenegro included 
machinery, articles of stone, prepared foods an d vegetables (accounting together for 71% of its 
imports from Montenegro), compared to global exports which were mainly of base metals (54.3% 
                                               
1 Unless otherwise indicated the data in this section is based on the WTO's trade and tariff profiles and 
the UNSD Comtrade database. 
2 RTA database ( http://rtais.wto.org ). 
3 As a share of total merchandise imports manufactures accounted in 2011 for 58.5% for Iceland, 74.1% 
for Norway, 79.3% for Switzerl and and 52.3% for Montenegro. 
4 There is considerable discrepancy in the figure s reported by the parties to the UNSD Comtrade 
database. According to the Parties such  discrepancies may be due to severa l reasons, including reshipment to 
country of destination without customs clearance, differences in tariff classifications etc. WT/REG323/1 
 
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  of Montenegro's global exports) and minerals and prepared foods (which together accounted for 
21% of exports). 
Chart 1.1 EFTA: Merchandise trade with world and Montenegro, 2000-2011 
0510152025
0100200300400500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ millionImports from Montenegro
Exports to MontenegroTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Note:  Montenegro became an independent customs territory after 2006. Data for bilateral trade flows is 
not available between 2000-2005. 
 
Source: UNSD Comtrade Database. 
 
Chart 1.2 Montenegro: Merchandise trade with world and EFTA, 2000-2011 
0255075100125150175200
0.00.51.01.52.02.53.03.54.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ million
Imports from  EFTA
Exports to EFTATotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
Note: Montenegro became an independent customs territory after 2006. Data is not available between 
2000-2005. 
 Source: UNSD Comtrade Database. WT/REG323/1 
 
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  Chart 1.3  
EFTA and Montenegro: product composition  of merchandise trade, annual average 
(2009-2011) 
27.7
22.6
14.19.66.14.53.22.39.9
72.211.34.83.92.15.854.3
11.69.45.54.63.32.62.06.7
19.6
16.2
11.3
8.27.86.34.44.14.03.63.32.62.26.4
16.4
13.4
11.7
10.97.37.36.44.43.73.63.13.12.76.026.5
16.2
14.513.810.610.32.92.13.1EFTA's imports from Montenegro
Montenegro's imports from EFTAPer cent
Total:  US$ 0.9 million
Total:  US$ 41.6 millionTotal:  US $263 billion
Total: US $ 0.5 billionTotal:  US $ 2 billion
Total:  US$ 341 billionMontenegro's global exports
EFTA's global exportsEFTA's global imports
Montenegro's global imports
VegetablesMinerals
Chemicals
Plastics, 
rubberTextilesArticles of Stone
Base metalsMachineryMiscellaneous
OpticalVehiclesAnimal products
Prepared foodsWood pulpPrecious 
StonesArticles of wood
Other
 
 
Source: UNSD Comtrade Database.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed on 14 November 2011. Following ratification by the respective 
parties, it entered into force on: 1 September 2 012 for Montenegro, Liechtenstein and Switzerland; 
1 October 2012 for Montenegro and Iceland and 1 November 2012 for Montenegro and Norway.5 It 
was notified to the WTO on 25 October 2012 under Article XXIV:7(a) of the GATT 1994. The text of the Agreement and its respective annexes is available on the Parties' websites: 
EFTA:
   http://www.efta.int/free-trade/free-t rade-agreements/montenegro.aspx  
 
Montenegro:  http://www.sluzbenilist.me/ SluzbeniListDetalji.as px?tag=%7b7F91FA55-8782-
   4763-B589-697B9BAE174E%7d  
 
2.2.  The Agreement contains a preamble and ni ne Chapters as well as Annexes which form an 
integral part of the Agreement. In addition th ere are three Agreements on Agriculture (between 
Montenegro and Switzerland and Liechtenstein; Montenegro and Iceland; and Montenegro and 
Norway) which also form part of the Agreement.6 The Norwegian territory of Svalbard is excluded 
from the provisions of the Agreement except for tr ade in goods (Article 4). Details of the structure 
of the Agreement are given below: 
                                               
5 Montenegro became a Member of the WTO on 29 April 2012. 
6 Various provisions of the Agreement (Articles 4 on Territorial Application, 5 on Central, Regional and 
Local Government, 12 on SPS Measures, 13 on Technica l Regulations, 19 on Anti -Dumping Measures, 21 on 
Bilateral Safeguard Measures and 8 on Dispute Settlement) apply to the AAs. WT/REG323/1 
 
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  Box 2.1 Structure of the Agreement 
Preamble 
Chapter 1 General provisions 
Chapter 2 Trade in goods 
Chapter 3 Protection of Intellectual Property 
Chapter 4 Investment, Services and Government Procurement 
Chapter 5 Payments and Capital Movements 
Chapter 6 Trade and Sustainable Development 
Chapter 7 Institutional Provisions 
Chapter 8 Dispute Settlement 
Chapter 9 Final Provisions 
  
Annexes   
Annex I Excluded products 
Annex II Processed agricultural products 
Annex III Fish and other marine products 
Annex IV Trade Facilitation 
Annex V Mandate for the Sub-Committee 
Annex VI IPR 
Annex VII Transitional Agreement 
  
 Notifications regarding proces sed agricultural products 
  
Agriculture Agreements  
Source:  The Agreement, the Agreements on Agriculture and related Annexes. 
 
2.3.  The objectives of the Agreement are to liberalize trade in goods in conformity with 
Article XXIV of the GATT 1994; to mutually increase investment opportunities and create an 
environment conducive to enhanced trade in services; fair conditions of competition in trade between the Parties and adequate protection of inte llectual property rights; to gradually liberalize 
government procurement; and to develop international trade to contribute to sustainable 
development and contribute to the harmonious development of world trade. 
2.4.  The Agreement applies to trade relations between the EFTA States and Montenegro (not to 
intra-EFTA trade relations).
7 No explicit transition period is indicated for implementation of the 
Agreement although tariffs are to be liberalized immediately upon entry into force by the EFTA 
States and by 2018 by Montenegro. 
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  Provisions on trade in goods are covered by Chapter 2 of the Agreement which covers goods 
under HS Chapters 25-97 subject to the provisions of Annex I (Excluded products)
8, as well as 
                                               
7 As a result of the Treaty between Switzerland an d Liechtenstein forming a Customs Union on 29 March 
1923, Liechtenstein is represented by Switzerland in matters covered thereby (Article 2). 
8 These include articles of HS 35.01 (casein, caseinates), 35.02 (albumins), 35.05 (dextrins and other 
modified starches), 38.09 (finishing dyes, dye carriers) and 38.23 (industrial monocarboxylic fatty acids, and acid oils). WT/REG323/1 
 
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  processed agricultural products subject to Annexe s II and III (Fish and other marine products). In 
addition the individual bilateral Agreements on Agriculture (AAs) eliminate applied tariffs on a number of non-processed agricultural products.  
3.2.  Upon entry into force of the Agreement the Parties were to eliminate tariffs on a number of 
non-processed agricultural products as scheduled in Tables 1 and 2 of the AAs. Efforts towards 
further liberalization of agricultural products are envisaged under Article 5 of the AAs taking account of the pattern of agricultural trade betwee n the Parties, the particular sensitivities of the 
products, and the development of agricultural policies  in the Parties. The Parties agree to consult if 
requested to achieve this objective, including through improvements in market access by reducing or eliminating customs duties on agricultural products and extending the scope of products covered by the Agreement. They also reaffirm their rights and obligations under the WTO Agreement on 
Agriculture (Article 6).  
3.3.  For non-agricultural products under HS ch apters 25-97, all customs duties between EFTA and 
Montenegro are to be abolished upon entry into force of the Agreement except for those listed in 
Annex I as excluded from liberalization. With regard to processed agricultural products listed in 
Table 1 of Annex II, the EFTA States commit to providing the same treatment to imports from Montenegro as they do for the EU. Montenegro will gradually reduce duties (in four equal steps) on 
imports of certain agricultural products as listed in Table 2 of Annex II from the EFTA States and 
will accord the same treatment by 1 January 2015 to imports from the EFTA States as it granted to imports from the EU in 2012. Notwithstanding this  commitment, to take account of differences in 
the cost of agricultural raw materials incorporated in these processed agricultural products, the 
Agreement does not preclude the levying of import duties or measures on exports; the import levy 
will be based on, but not exceed, the difference between the domestic price and the world market 
price of the agricultural raw materials concerned (Annex II, Article 1).
9 Consultations are foreseen 
to review the development of trade in these prod ucts and to decide on possible changes to the 
product coverage of Annex II and any developments  in the measures applied under Article 1.  
3.4.  Annex III lists all fish and other marine products for which the EFTA States will eliminate 
tariffs (with a few exceptions related to feedst uffs and fats for which Switzerland may impose 
customs duties). Montenegro will eliminate its customs duties on products listed in Table 3 of Annex III in equal stages: for products in cate gory A, between 1 July 2012 and 1 January 2016; 
for products in category B between 1 July 2012 and 1 January 2018. For products in category C, 
customs duties wil be reduced to the level indica ted in Table 3 in equal stages between 1 July 2012 
and 1 January 2016. The elimination of customs duties  for certain products (under Category C) is 
to be reviewed in the Joint Committee no later than three years following the entry into force of 
the Agreement and thereafter biennially if need be. 
3.5.  Customs duties and equivalent charges (on imports and exports) will not be introduced on 
any products following the entry into force of th e Agreement (Article 9). Any internal taxes and 
charges will be applied in conformity with Articl e III of the GATT 1994 and any other relevant WTO 
Agreements (Article 11). 
3.6.  With respect to the rights and obligations of the Parties concerning quantitative restrictions, 
Article XI of the GATT 1994 shall apply and is inco rporated into and made part of the Agreement 
mutatis mutandis  (Article 10). 
3.1.2  Liberalization of trade and tariff lines  3.1.2.1  EFTA 
3.7.  Tables 3.1A to 3.1F show liberalization of tariff lines and trade under the Agreement by the 
Parties (Tables 3.1A-C for EFTA for imports from Montenegro and Tables 3.1D-F for Montenegro's imports from EFTA). In 2012 when the Agreement en tered into force for Iceland, 5,967 of its tariff 
lines (70.1%) were duty free on an MFN basis corresponding to 100% of its average imports from 
                                               
9 The EFTA States will notify Montenegro in advanc e of any such measures be fore they are applied and 
the Parties will inform each other of all changes in treatment accorded to the EU (Annex II, Article 4). WT/REG323/1 
 
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  Montenegro during 2009-11.10 As a result of the Agreement, an additional 2,007 lines (23.6% of 
the tariff) were liberalized in 2012; none of these products were imported by Iceland during 2009-11. Once liberalization under the Agreement is complete 543 lines or 6.4% of the tariff, for which no imports took place during 2009-11 will remain subject to duty. 
Table 3.1A: Iceland 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out 
period Number 
of lines % of total 
lines in 
Iceland's tariff 
schedule Value of Iceland's 
imports from 
Montenegro (2009-
2011) in million $ % of Iceland's total 
imports from 
Montenegro, 2009-
2011 
MFN duty free (2012) 5,967 70.1 0.14 100.0 
2012 2,007 23.6 0 0.0 
Remain dutiable 543 6.4 0 0.0 
Total 8,517 100.0 0.14 100.0 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Iceland and the WTO-IDB database. 
 
3.8.  In the case of Norway in 2012 6,021 tariff lines or 83.5% of the tariff were duty free on an 
MFN basis, corresponding to 99.9% of Norway's average imports from Montenegro during 
2009-11.11 The Agreement liberalized a further 320 lines (4.4%) in 2012, corresponding to 0.1% 
of its imports from Montenegro during 2009-11. Once tariff liberalization is implemented 866 lines 
(12% of the tariff) will remain subject to duties  for imports from Montenegro, none of which were 
imported during 2009-11. 
Table 3.1B: Norway 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out period Number 
of lines % of total 
lines in 
Norway's 
tariff schedule Value of Norway's 
imports from Montenegro  
(2009-2011) in million $ % of Norway's 
total imports 
from Montenegro  
2009-2011 
MFN duty free (2012) 6,021 83.5 0.3 99.9 
2012 320 4.4 0.0 0.1 
Remain dutiable 866 12.0 0.0 0.0 
Total 7,207 100.0 0.3 100.0 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Norway and the WTO-IDB database.  
 
3.9.  In Switzerland, 1,551 lines (18.7%) were duty free on an MFN basis in 2012, corresponding 
to 11.6% of its imports from Montenegro during 2009-11.12 In 2012, Switzerland liberalized a 
further 5,398 lines (65%), which accounted for 84. 7% of its imports from Montenegro during 
2009-11. Some 16.3% of the tariff (1,350 lines) is to remain dutiable for imports from Montenegro 
once the Agreement is implemented. 
                                               
10 Iceland's MFN applied tariff in 2012 contained 8,517 tariff lines at the HS 8-digit level. Of these 
8,079 lines (94.86%) carried ad valorem  rates of duty; of the 438 lines with non- ad valorem  rates, 385 had 
compound rates and 53 specific rates of duty. 
11 Norway's MFN applied tariff in 2012 had 7,207 tariff lines at the HS 8-digit level. Of these 818 lines 
(11.35%) had non ad valorem  rates of duty of which 817 lines were subj ect to specific rates of duty and 1 line 
had other rates of duty. 
12 Switzerland's 2012 MFN applied tariff consists of 8,299 tariff lines at the HS 8-digit level of which 
81.31% (6,748 lines) are subject to specific rates of duty. WT/REG323/1 
 
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  Table 3.1C: Switzerland 
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out period Number 
of lines % of total lines 
in Switzerland's 
tariff schedule Value of 
Switzerland's imports 
from Montenegro 
(2009-2011) in 
million $ % of Switzerland's 
total imports from 
Montenegro 
2009-2011 
MFN duty free (2012) 1,551 18.7 0.1 11.6 
2012 5,398 65.0 0.4 84.7 
Remain dutiable 1,350 16.3 0.0 3.7 
Total 8,299 100.0 0.5 100.0 
 
Note: Tariff lines subject to in-quota rate s are excluded in the tariff line count. 
Based on the HS 2012 nomenclature. 
 Source: WTO estimates based on da ta provided by Switzerland. 
 
3.1.2.2  Montenegro 
3.10.  Tables 3.1D-F show Montenegro's tariff  elimination commitments under the Agreement and 
corresponding average imports from EFTA during 2009-11. In 2012 when the Agreement entered into force, 2,484 lines (26.5% of its tariff) were already duty free on an MFN basis, corresponding 
to an average 16.5% 72.4% and 80.2% of its im ports respectively from Iceland, Norway and 
Switzerland during 2009-11.
13 As a result of the entry into force of the Agreement. Montenegro 
liberalized respectively 4,929 (52.5%), 4,973 (53%) and 5,080 (54.1%) of its tariff lines further for imports from Iceland, Norway and Switzerl and. These corresponded to 35.7%, 16.6% and 
18.2% of its average 2009-11 imports from Icelan d, Norway and Switzerland respectively. As a 
result of further tariff elimination between 2015 an d 2018, Montenegro will liberalize a further 552, 
529 and 533 lines for imports from Iceland, Norw ay and Switzerland respectively. Following full 
implementation of its tariff commitments, respectively 1,418 (15.1%), 1,397 (14.9%) and 
1,286 (13.7%) lines for imports from Iceland, No rway and Switzerland will remain subject to 
duties. 
Table 3.1D: Montenegro-Iceland 
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out 
period Number 
of lines % of total lines in 
Montenegro's tariff 
schedule Value of Montenegro's 
imports from Iceland 
(2009-2011) in million 
US$ % of Montenegro's 
total imports from 
Iceland 2009-2011 
MFN duty free 
(2012) 2,484 26.5 0.0 16.5 
2012 4,929 52.5 0.1 35.7 
2015 227 2.4 0.0 0.0 
2016 316 3.4 0.1 47.7 
2017 3 0.0 0.0 0.0 
2018 6 0.1 0.0 0.0 
Remain dutiable 1418 15.1 0.0 0.2 
Total 9,383 100.0 0.2 100.0 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided  by Montenegro and the WTO-IDB Database.  
                                               
13 Montenegro's MFN applied tariff in 2012 had 9,383 tariff lines at the HS 8-digit level. Of these 
260 lines carried non ad valorem  rates of duty, of which 14 were  specific and 246 other duties. WT/REG323/1 
 
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  Table 3.1E: Montenegro-Norway 
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out 
period Number 
of lines % of total lines 
in Montenegro's 
tariff schedule Value of Montenegro's 
imports from Norway 
(2009-2011) in million $ % of Montenegro's 
total imports from 
Norway 2009-2011 
MFN duty free (2012) 2,484 26.5 1.0 72.4 
2012 4,973 53.0 0.2 16.6 
2015 207 2.2 0.0 1.1 
2016 316 3.4 0.1 5.2 
2018 6 0.1 0.1 4.8 
Remain dutiable 1397 14.9 0.0 0.0 
Total 9,383 100.0 1.3 100.0 
 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data provided  by Montenegro and the WTO-IDB Database.  
Table 3.1F: Montenegro-Switzerland 
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out period Number 
of lines % of total lines in 
Montenegro's tariff 
schedule Value of Montenegro's 
imports from Switzerland 
(2009-2011) in million $ % of Montenegro's 
total imports from 
Switzerland 2009-2011  
MFN duty free (2012) 2,484 26.5 32.8 80.2 
2012 5,080 54.1 7.5 18.2 
2015 211 2.2 0.6 1.6 
2016 316 3.4 0.0 0.0 
2018 6 0.1 0.0 0.0 
Remain dutiable 1286 13.7 0.0 0.1 
Total 9,383 100.0 41.0 100.0 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided  by Montenegro and the WTO-IDB Database.  
 
3.1.3  Liberalization schedule 
3.1.3.1  EFTA 
3.11.  Table 3.2 and Chart 3.1 below show Iceland's tariff elimination by HS Section and 
HS Chapter respectively. As a result of tariff liberalization across most HS Sections in 2012, duties remain in HS Sections I, II and IV as well as fo ur tariff lines in HS Section III. The average final 
tariff on these dutiable products ranges from 29.7% to 35.3%. The four lines remaining subject to 
duty in HS Section III are all subject to specific rates of duty. Chart 3.1 below shows that except 
for Chapters 22, 18 and 19 the average final preferential tariffs and their corresponding MFN average rates are the same, thus there is no liberalization of preferential rates of duty for the 
remaining Chapters. The final average preferential  rates of duty range from 10% (compared to 
13.8% MFN) to 59%, with the highest rates found in HS 20 (59%), 10, 11, 12, 17 and 23 (55%). For Chapters 18 and 19 the average is based on only the ad valorem  component of the MFN tariff; 
preferential tariffs in these Chapters are specific and since ad valorem  equivalents are not 
available, it is not possible to include these rates in the calculations. 
Table 3.2 Iceland: Tariff elimination under the Agreement, by HS Section 
HS 
Section MFN average 
% Total No of 
lines MFN 
2012 Number of duty-
free lines Remain 
dutiable Avg. Final Tariff 
(Dutiable) 2012 
I 7.5 868 630 32 206 29.7 
II 12.5 466 294 21 151 35.3 
III 0.0 109 105   4 - 
IV 9.5 1,081 557 342 182 33.5 
V 0.1 192 190 2     WT/REG323/1 
 
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  HS 
Section MFN average 
% Total No of 
lines MFN 
2012 Number of duty-
free lines Remain 
dutiable Avg. Final Tariff 
(Dutiable) 2012 
VI 1.2 971 819 152     
VII 2.4 368 238 130     
VIII 5.4 123 25 98     
IX 1.9 218 158 60     
X 2.1 186 137 49     
XI 5.1 899 550 349     
XII 12.7 71 6 65     
XIII 3.5 192 110 82     
XIV 3.0 61 43 18     
XV 1.3 690 583 107     
XVI 2.2 1,113 836 277     
XVII 0.7 465 431 34     
XVIII 0.1 227 224 3     
XIX 5.9 24 6 18     
XX 8.7 185 18 167     
XXI 1.3 8 7 1     
Total 4.4 8,517 5,967 2,007 543 32.4 
-  Contain specific duties. 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate rates  
 are included.  Based on the HS 2012 nomenclature. 
 
Source: WTO Secretariat estimates based on data provided by Iceland and the WTO-IDB database. 
 
Chart 3.1 Iceland: Average of du tiable rates, by HS Chapter 
0 5 10 15 20 25 30 35 40 45 50 55 6002
0406
07
101112
*15
16
17
**18**19
202122
23
MFN PreferentialHS Chapter  
Average rate of duty (%)
 
* Chapter 15 only contains specific duties. 
** Chapters 18 and 19 preferential rates only contain specific duties.  Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
Source: WTO Secretariat estimates based on data  provided by Iceland and WTO-IDB database. WT/REG323/1 
 
- 13 - 
 
  3.12.  Table 3.3 and Chart 3.2 show Norway's tari ff liberalization by HS Section and HS Chapter 
respectively. Norway liberalized tariffs across Sections I-IV and Section XI under the Agreement. As a result, tariffs will remain in HS Sections I-IV and VI, with average final rates ranging from 14.1% in Section III to 463.7% in Section I. Chart 3.2 shows that the highest average remaining 
preferential and MFN tariffs are in HS Chapters 1 (509.4%), 4 (349.5%) and 35 (337.1%). A 
number of Chapters are subject to specific rates of duty for which no ad valorem  equivalent rates 
are available.  
Table 3.3 Norway: Tariff elimination und er the Agreement, by HS Section  
HS 
Section MFN 
average % Total No 
of lines MFN 
2012 Number of 
duty-free lines Remain 
dutiable Avg. Final Tariff 
(Dutiable) 2012 
I 9.5 534 333 5 196 463.7 
II 19.7 590 248 12 330 124.3 
III 5.7 126 50 5 71 14.1 
IV 2.6 462 179 33 250 70.4 
V 0.0 191 191    
VI 1.1 948 929  19 337.1 
VII 0.0 303 303    
VIII 0.0 90 90    
IX 0.0 173 173    
X 0.0 172 172    
XI 2.8 932 667 265   
XII 0.0 62 62    
XIII 0.0 180 180    
XIV 0.0 54 54    
XV 0.0 662 662    
XVI 0.0 1,029 1029    
XVII 0.0 214 214    
XVIII 0.0 265 265    
XIX 0.0 24 24    
XX 0.0 189 189    
XXI 0.0 7 7    
Total 2.1 7,207 6,021 320 866 118.2 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate rates 
are included. 
 Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Norway and the WTO-IDB database. WT/REG323/1 
 
- 14 - 
 
  Chart 3.2 Norway: Average of du tiable rates, by HS Chapter 
0 50 100 150 200 250 300 350 400 450 500 55001
*02
04
*05
0607
*08*10*11
12
1516
*17*18
*19
*20
21
*22
2335
*38
MFN PreferentialHS Chapter  
Average rate of duty (%)
 
 
* Only contains specific duties. Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Source: WTO Secretariat estimates based on data  provided by Norway and WTO-IDB database. 
 
3.13.  Table 3.4 below details Switzerland's tariff elimination under the Agreement by HS Section. In 2012, following tariff elimination in most HS Sect ions, tariff lines remaining subject to duty on a 
preferential basis with Montenegro are mostly foun d in Sections I-IV, with eight lines subject to 
duty in HS Section VI. As the majority of Switzerland's tariff is subject to specific rates of duty and ad valorem  equivalents for these rates are not available, it is not possible to calculate the average 
final duty applicable to these products. 
Table 3.4  
Switzerland: Tariff elimination und er the Agreement, by HS Section 
HS 
Section MFN 
average
% Total No 
of lines MFN 
2012 Number of 
duty-free lines Remain 
dutiable Avg. Final Tariff 
(Dutiable) 2012 
I … 450 188 52 210 … 
II … 1045 192 174 679 … 
III … 197 45 77 75 … 
IV … 618 110 130 378 … 
V … 183 121 62   
VI … 1,012 407 597 8 … 
VII … 241 30 211   
VIII … 74 15 59   
IX … 131 15 116   WT/REG323/1 
 
- 15 - 
 
  HS 
Section MFN 
average
% Total No 
of lines MFN 
2012 Number of 
duty-free lines Remain 
dutiable Avg. Final Tariff 
(Dutiable) 2012 
X … 178 24 154   
XI … 1,090 34 1056   
XII … 60  60   
XIII … 159 2 157   
XIV … 61 7 54   
XV … 906 39 867   
XVI … 1,236 207 1029   
XVII … 195 18 177   
XVIII … 251 55 196   
XIX … 26  26   
XX … 176 34 142   
XXI … 10 8 2   
Total … 8,299 1,551 5,398 1,350 … 
 
… Not available: the majority of Switzerland's tariff is subject to specific duties for which ad valorem  
equivalents are not available. 
Note: Calculation excludes specific and in-quo ta rates. Based on the HS 2012 nomenclature. 
 Source: WTO estimates based on da ta provided by Switzerland. 
 
3.1.3.2  Montenegro 
3.14.  Table 3.5 and Chart 3.3 show details of ta riff elimination by Montenegro for imports from 
Iceland by HS Section and HS Chapter, respecti vely. The bulk of its tariff liberalization was 
undertaken in 2012, with further elimination during 2015-2018. At the end of liberalization in 
2018, all tariff lines remaining dutiable are to be found in HS Sections I-IV with average tariffs on the dutiable lines ranging from 6.4% to 19.7%. Th e same information by HS Section in Chart 3.3 
shows that the highest average preferential tari ffs (30%) which are the same as the average MFN 
rates for these products are found in HS 16 and 22,  followed by 25% for HS 21. In HS Chapters 2, 
3 and 4, average preferential tariffs are lower th an the corresponding MFN average tariff, giving 
additional market access to Swiss exporters of these products. 
Table 3.5 - Montenegro: Tariff eliminatio n under the Agreement, by HS Section 
(Montenegro-Iceland) 
HS Section MFN 
average 
% Total No. 
of lines MFN 2012  Number of Duty-Free lines Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2015  2016  2017  2018  
I 14.3 929 46 149 12 264   6 452 19.7 
II 8.1 555 125 6 6       418 10.5 
III 2.2 128 79 12         37 6.4 
IV 18.0 830 36 19 209 52 3   511 19.6 
V 1.3 239 135 104             
VI 1.6 1,146 178 968             
VII 2.8 301 79 222             
VIII 5.2 130 30 100             
IX 1.1 211 155 56             
X 0.0 195 194 1             
XI 5.4 1165 47 1118             
XII 5.6 106 2 104             
XIII 4.4 238 10 228             
XIV 3.9 56 4 52             
XV 3.2 954 542 412             
XVI 1.9 1,373 519 854             
XVII 1.5 264 113 151             
XVIII 1.4 322 152 170             
XIX 25.0 22 0 22             WT/REG323/1 
 
- 16 - 
 
  HS Section MFN 
average 
% Total No. 
of lines MFN 2012  Number of Duty-Free lines Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2015  2016  2017  2018  
XX 6.8 212 38 174             
XXI 5.0 7 0 7             
Total 5.7 9,383 2,484 4,929  227 316 3 6 1,418 16.6 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided  by Montenegro and the WTO-IDB Database.  
 
Chart 3.3  
Montenegro: Average of dutiable rates,  by HS Chapter (Montenegro-Iceland) 
0 5 10 15 20 25 30 3501
0203
04
0507
08
0910
11
1516
17
2021
22
2324
MFN PreferentialHS Chapter  
Average rate of duty (%)
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Source: WTO Secretariat estimates based on data provided by Montenegro. 
 
3.15.  Details of Montenegro's tariff elimination by HS Section and HS Chapter vis-a-vis  Norway 
are presented in Table 3.6 and Chart 3.4 respectively. Most tariff lines were liberalized in 2012 
(4,973 lines) followed by further liberalization to take place in 2015 (207), 2016 (316) and 2018 
(6 lines). Following full implementation of its tariff liberalization commitments dutiable tariffs will remain in HS Sections I-IV with average tariffs ranging from 6.5% to 19.9%. Chart 3.4 shows that 
the average of dutiable rates are highest in  HS Chapter 22 (29.8% as the MFN average), 
16 (28.4% compared to an MFN average of 28.9%) and 21 (25% as the MFN average). In the case 
of some Chapters the preferential average rate is significantly lower compared to the corresponding MFN average, providing additional ma rgins of preference for exporters from Norway, 
notably in HS 2, 3 and 6. WT/REG323/1 
 
- 17 - 
 
   Table 3.6 Montenegro: Tariff elimination under the Agreement, by HS Section 
(Montenegro-Norway) 
HS Section MFN 
average %  Total No 
of lines MFN 2012  Number of duty-free lines Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2015  2016  2018 
I 14.3 929 46 143 12 264 6 458 18.0 
II 8.1 555 125 7 6     417 10.3 
III 2.2 128 79 14       35 6.5 
IV 18.0 830 36 66 189 52   487 19.9 
V 1.3 239 135 104           
VI 1.6 1,146 178 968           
VII 2.8 301 79 222           
VIII 5.2 130 30 100           
IX 1.1 211 155 56           
X 0.0 195 194 1           
XI 5.4 1165 47 1118           
XII 5.6 106 2 104           
XIII 4.4 238 10 228           
XIV 3.9 56 4 52           
XV 3.2 954 542 412           
XVI 1.9 1,373 519 854           
XVII 1.5 264 113 151           
XVIII 1.4 322 152 170           
XIX 25.0 22   22           
XX 6.8 212 38 174           
XXI 5.0 7   7           
Total 5.7 9,383 2,484 4,973  207 316 6 1,397 16.1 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided  by Montenegro and the WTO-IDB Database. WT/REG323/1 
 
- 18 - 
 
  Chart 3.4  
Montenegro: Average of dutiable rates,  by HS Chapter (Montenegro-Norway) 
0 5 10 15 20 25 3001
02
03
0406
07
0809
10
11
15
1617
20
2122
23
24
MFN PreferentialHS Chapter  
Average rate of duty (%)
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Source: WTO Secretariat estimates based on data provided by Montenegro. 
 
3.16.  With regard to trade with Switzerland, details of Montenegro's tariff liberalization are 
presented in Table 3.7 and Chart 3.5 respectively. The bulk of its tariff commitments were met in 
2012, followed by further liberalization during 2015, 2016 and 2018. At the end of liberalization, 
Montenegro will maintain tariffs on imports from Switzerland under HS Sections I-IV, with average 
final tariffs ranging from 6.4% to 17.3%. Char t 3.5 shows that at the end of implementation, 
Montenegro's average preferential tariffs for Swit zerland will range from 3.7% in Chapter 17 to 
29.2% in Chapter 22. While in some cases the fi nal preferential and MFN average rates are the 
same, the average preferential rate is significantly lower than the corresponding MFN average 
especially in HS 3 (10.9% compared to 24.1% MFN), HS 16 (14.5% compared to 28.9%), HS 4 
(14.5% compared to 24.4%) and HS 20 (7.5% compared to 16.7%).  
Table 3.7 Montenegro: Tariff elimination under the Agreement, by HS Section 
(Montenegro-Switzerland) 
HS Section MFN average 
% Total No. 
of lines MFN 2012  Number of duty-free lines  Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2015  2016  2018 
I 14.3 929 46 233 12 264 6 368 17.3 
II 8.1 555 125 33 6     391 8.8 
III 2.2 128 79 12       37 6.4 
IV 18.0 830 36 59 193 52   490 13.0 
V 1.3 239 135 104           WT/REG323/1 
 
- 19 - 
 
  HS Section MFN average 
% Total No. 
of lines MFN 2012  Number of duty-free lines  Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2012  2015  2016  2018 
VI 1.6 1,146 178 968           
VII 2.8 301 79 222           
VIII 5.2 130 30 100           
IX 1.1 211 155 56           
X 0.0 195 194 1           
XI 5.4 1165 47 1118           
XII 5.6 106 2 104           
XIII 4.4 238 10 228           
XIV 3.9 56 4 52           
XV 3.2 954 542 412           
XVI 1.9 1,373 519 854           
XVII 1.5 264 113 151           
XVIII 1.4 322 152 170           
XIX 25.0 22   22           
XX 6.8 212 38 174           
XXI 5.0 7   7           
Total 5.7 9,383 2,484 5,080  211 316 6 1,286 12.8 
 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided  by Montenegro and the WTO-IDB Database.  
 
Chart 3.5  
Montenegro: Average of dutiable rates, by HS Chapter (Montenegro-Switzerland) 
0 5 10 15 20 25 3001
0203
04
0607
08
0910
11
1516
17
2021
22
2324
MFN PreferentialHS Chapter  
Average rate of duty (%)
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
Source: WTO Secretariat estimates based on data provided by Montenegro. WT/REG323/1 
 
- 20 - 
 
  3.1.4  Tariff rate quotas 
3.17.  Switzerland maintains tariff rate quotas for imports from Montenegro of peaches and 
nectarines (HS0809.3010 and 0809.3020 respectively ) within an annual quantity of 200 metric 
tonnes which can be imported at zero rates of duty (Annex I of the Agreement on Agriculture). The 
corresponding MFN rate in 2012 was 4 Swiss Francs per hundred kilogrammes. In addition it also 
maintains a seasonal tariff quota for imports of fres h grapes of 100 metric tonnes per year (subject 
to zero rates of duty within the quota) which if imported during 15 July-15 September face an MFN 
tariff of 10 Swiss Francs hundred kilogrammes and 15 Swiss Francs per hundred kilogrammes if 
imported during 16 September to 14 July.  
3.2  Rules of origin 3.18.  Rules of Origin are covered by Article 8 of  the Agreement. Article 8 refers to the Regional 
Convention on Pan-Euro-Mediterranean Preferential Rules of Origin which shall govern the Parties' 
rights and obligations on rules of origin and administrative co-operation. The Convention was opened for signature on 15 June 2011 and has been signed by the EFTA States, the EU and some 
of the participants in the European Union's Stabilization and Association Process including 
Montenegro for which the Regional Convention came  into force on 1 September 2012, as well as 
the Faeroe Islands (represented by Denmark).
14 
3.19.  Appendix I of the Convention describes originating goods as those wholly obtained in the 
contracting party, products which have undergone sufficient working in the contracting party, and 
goods originating in the EEA.15 It permits diagonal cumulation between all its parties (Article 3 of 
Appendix I of the Convention). For processed agri cultural products referred to in Annex II of the 
Agreement only bilateral cumulation between th e EFTA States and Montenegro is permitted 
(Article 8(2) of the Agreement).16 If any of the Parties withdraws from the Convention the Parties 
shall immediately enter into negotiations to determine new rules of origin for the Agreement. Until 
such rules enter into force the rules of origin of the Convention shall continue to apply,  
mutatis mutandis , allowing bilateral cumulation between the Parties only (Article 8(3) of the 
Agreement). 
3.20.  The principle of territoriality is recognized in Article 11 of Appendix I where unless as 
indicated otherwise, the conditions for acquiring originating status must be fulfilled without interruption in the exporting contracting party.
17 Where materials are exported by a contracting 
party and re-imported after being worked and proce ssed abroad, their originating status will not be 
affected if the materials concerned are wholly obtained in the exporting contracting party or have 
undergone working or processing beyond simple operations before being exported, and it can be demonstrated to the satisfaction of the customs authorities that the re-imported goods have been 
obtained by working or processing the exported materials and the total value acquired outside the 
exporting contracting party by applying the provis ions of Article 11 does not exceed 10% of the 
ex-works price of the end product for which originating status is claimed. These provisions do not 
apply to products which do not fulfil the specific conditions mentioned in Annex II (Product Specific 
Rules) or which can be considered sufficiently worked or processed only if the general tolerance 
                                               
14 The participants include the parties to the Barcelon a Process (the EU, Algeria, Egypt, Israel, Jordan, 
Lebanon, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey) as well as Albania, Bosnia and Herzegovina, Croatia, the Former Yugoslav Republic of  Macedonia, Montenegro, Serbia and Kosovo and EFTA. 
Annex VII of the Agreement indicates that until the Convention enters into force for the Parties it shall apply to the Agreement mutatis mutandis. The Regional Convention  on Pan-Euro-Mediterranean Preferential Rules of 
Origin entered into force on 1 September 2012 in Montenegro. 
15 The EEA parties are the EU, Iceland, Liechtenstein and Norway. Due to the Customs Union between 
Liechtenstein and Switzerland, prod ucts originating in Liechtenstein are considered as originating in 
Switzerland. 
16 Article 3 of Appendix I recognizes products as or iginating in the contracting party when exported to 
another contracting party if they are obtained there, incorporating materials originating in EFTA, Turkey or the E U  ( p a r a g r a p h  1 )  o r  i n  t h e  F a e r o e  I s l a n d s ,  a n y  p a r t icipant in the Barcelona Process except Turkey, or any 
contracting party other than referred to  in paragraph 1 (paragraph 2), providing that the working or processing 
carried out in the exporting contracting party goes beyond simple operations as described in Ar ticle 6. It shall 
not be necessary for the articles to have undergone sufficient wo rking or processing. 
17 The exceptions relate to Article 2(1)(c) of Appendix I on goods originating in the EEA, Article 3 on 
Cumulation of origin, and paragraph 3 of Article 11 whic h relates to re-imports of exports from the contracting 
party which are subject to rewo rking or processing abroad. WT/REG323/1 
 
- 21 - 
 
  fixed in Article 5(2) is applied and also not to products in HS Chapters 50-63 (textiles and 
clothing). 
3.21.  Article 12 of Appendix I requires direct tr ansportation between the Parties; transhipment or 
temporary warehousing is permitted provided that  the goods remain under the surveillance of the 
customs authorities of the country of transit or warehousing and do not undergo operations other 
than loading, reloading or any operation designed to preserve them in good condition. Drawback is not permitted for non-originating materials used in the manufacture of products originating in a 
contracting party for which a proof of origin is issued or completed. 
3.22.  Provisions on administrative co-operation as well as random checks on proof of origin 
provided by the exporter are in Articles 31 and 32  of Appendix I. In case of disputes regarding 
verifications which cannot be resolved between the tw o customs authorities, the case is to be dealt 
with by the EFTA-Montenegro Joint Committee. Wh ere disputes other than those related to the 
verification procedures of Article 32 arise in relation to the interpretation of this Convention, they shall be submitted to the Joint Committee under the Convention. A Sub-Committee on Rules of 
Origin, Customs Procedures and Trade Facilitation  is established by Article 15 of the Agreement 
whose mandate is set out in Annex V (section 4.5 below). 
3.3  Export duties and charges,  and quantitative restrictions 
3.23.  Under Article 9 export (and import) duties and equivalent charges will not be introduced on 
any products following the entry into force of th e Agreement. The Parties also agree to apply and 
incorporate Article XI of the GATT 1994 on quantitative restrictions into the Agreement mutatis 
mutandis  (Article 10). 
3.4  Regulatory Provisions of the Agreement 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 
3.24.  Under Article 12 of the Agreement the rights  and obligations of the Parties on sanitary and 
phytosanitary (SPS) measures shall be governed by the WTO Agreement on SPS Measures. The Parties shall exchange the names and addresses of contact points with SPS expertise to facilitate 
communication and exchange of information.
18 
3.4.1.2  Technical barriers to trade 3.25.  Under Article 13 of the Agreement the rights and obligations of the Parties on technical 
regulations, standards and conformity assessmen t shall be governed by the WTO Agreement on 
Technical Barriers to Trade.
19 The Parties shall strengthen co-operation in the field with a view to 
increasing mutual understanding of their respective systems and facilitating access to their respective markets. 
3.4.2  Safeguard mechanisms 
3.4.2.1  Global Safeguards 3.26.  The Parties' rights and obligations on glob al safeguards are governed by Article XIX of the 
GATT 1994 and the WTO Agreement on Safeguards. In  taking such measures a Party shall exclude 
imports of an originating product from one or several Parties if such imports do not in and of themselves cause or threaten to cause serious injury. The Party taking the measure shall demonstrate that such exclusion is in accordance with WTO rules and jurisprudence as established 
through WTO dispute settlement (Article 20). 
                                               
18 Under Transitional Measures, the WTO Agreement on SPS measures was made part of the Agreement 
and applied mutatis mutandis between the Parties until Montenegro became a Member of the WTO (Annex VII). 
19 Under Transitional Measures, the WTO Agreement on TBT was made part of the Agreement and 
applied mutatis mutandis  between the Parties until Montenegro became a Member of the WTO (Annex VII). WT/REG323/1 
 
- 22 - 
 
  3.4.2.2  Bilateral safeguards 
3.27.  Under Article 21, where as a result of the reduction or elimination of a customs duty under 
the Agreement any product originating in a Party is being imported into the territory of another Party in such increased quantities in absolute terms or relative to domestic production and under 
such conditions as to constitute a substantial cause of serious injury or threat thereof to the 
domestic industry of like or directly competitive products in the territory of the importing Party, the importing Party may take bilateral safeguard measures to the minimum extent necessary to 
remedy or prevent the injury, subject to provis ions under the Agreement (paragraphs 2 to 10 of 
Article 21).  
3.28.  The safeguard measure may be taken if the conditions above are met and the Party may 
increase the customs duty on the product to a le vel not exceeding the lesser of the MFN rate of 
duty applied at the time the action is taken or on the day immediately preceding the date of entry 
into force of the Agreement (paragraph 4). In the selection of a bilateral safeguard, priority must be given to the measure which least disturbs the functioning of the Agreement (paragraph 6) and 
upon termination the rate of customs duty shall be the rate which would have been in effect but for 
the safeguard. Bilateral safeguards may not normally exceed one year although they may be taken for up to a maximum of three years under exceptional circumstances and following a review by the 
Joint Committee. In any case no bilateral safeguard may be imposed on a product which has 
previously been the subject of a bilateral safeguard (paragraph 5). 
3.29.  Bilateral safeguards may be taken only if there is clear evidence that increased imports have 
caused or are threatening to cause serious injury pursuant to an investigation in accordance with 
procedures under the WTO Agreement on Safeguards. The Party intending to take a bilateral 
safeguard shall immediately and in any case before taking the measure, notify the other Parties.
20 
The Joint Committee shall examine any notification within 30 days of receipt to facilitate a mutually 
acceptable resolution to the problem. In the absence of a resolution, the importing Party may take 
a safeguard as described in paragraph 4 (see above). It shall immediately notify the measure to the other Parties which will be subject to periodic consultations in the Joint Committee particularly 
with a view to establishing a timetable for its removal as soon as circumstances permit. The Parties 
indicate that no measure has been taken thus far under this provision. 
3.30.  Provisional safeguard measures are permitted by the Agreement under critical 
circumstances where delay would cause damage that would be difficult to repair. The measure may 
be taken pursuant to a preliminary determination that there is clear evidence that increased 
imports constitute a substantial cause for serious injury or threat thereof to its domestic industry. The Party intending to take such a measure shall immediately notify in writing the other Parties 
and the same procedures in the Joint Committee as for bilateral safeguards will be followed. 
Provisional safeguards may only be maintained up to 200 days and the period of their application shall count towards the duration of a definitive bi lateral safeguard including any extended period of 
application. Any provisional tariff increases shall be promptly refunded if the investigation does 
result in a finding that the conditions of paragraph 1 are not met. 
3.31.  Five years following the entry into force of the Agreement the Parties will examine in the 
Joint Committee whether there remains a need to maintain provisions on bilateral safeguards. If 
they decide to maintain the possibility of bilatera l safeguards, biennial reviews will be held on the 
matter thereafter in the Joint Committee (paragraph 10). 
3.4.2.3  Balance of payments safeguards 
3.32.  Under Article 29 where a Party is in serious balance of payments difficulties or under threat 
thereof, it may in conformity with the provis ions of GATT 1994, the GATS and the IMF, take 
restrictive measures on current payments and capital movements if such measures are strictly 
necessary. The measures will be temporary, equita ble and non-discriminatory. The Party taking the 
measures must inform the other Parties immediately and provide as soon as possible a timetable for their removal. 
                                               
20 The notification should contain relevant informat ion on the measure including evidence of serious 
injury or threat thereof from the increased imports, a precise description of the product concerned and the proposed measure, its duration an d timetable for its progressive removal (Article 21, paragraph 3). WT/REG323/1 
 
- 23 - 
 
  3.4.3  Anti-dumping and countervailing measures21 
3.4.3.1  Anti-dumping 3.33.  Under Article 19 a Party shall not apply anti-dumping measures as provided for under 
Article VI of the GATT 1994 and the WTO Agreement on Implementation of Article VI with respect 
to products originating in another Party. 
3.4.3.2  Countervailing measures 3.34.  The Parties' rights and obligations relating to subsidies and countervailing measures are 
governed by Articles VI and XVI of the GATT 1994 and the WTO Agreement on Subsidies and 
Countervailing Measures (Article 18:1). However, before an EFTA State or Montenegro initiates an investigation to determine the existence, degree and effect of any alleged subsidy in and EFTA State or Montenegro as provided for by Arti cle 11 of the WTO Agreement on Subsidies and 
Countervailing measures, the Party considering initiating an investigation shall notify in writing the 
Party whose goods are subject to investigation and allow for a period of 45 days within which to find a mutually acceptable solution. The consultations shall be held in the Joint Committee if any 
Party so requests within 20 days from date of  receipt of the notification (Article 18:2). 
3.4.4  Subsidies and State-aid 3.35.  Under Article 18, the rights and obligations of the Parties relating to subsidies are covered 
by Articles VI and XVI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing 
Measures. Other than permitting the use of countervailing measures under the WTO Agreements (see 3.4.3.2 above) the Agreement does not refer to subsidies. State trading enterprises under Article 16 are subject to the rights and obligations taken by the Parties under Article XVII of the 
GATT 1994 and the Understanding on the Interpreta tion of Article XVII of the GATT 1994 which are 
incorporated into and made part of the Agreement mutatis mutandis . 
3.4.5  Customs-related procedures 
3.36.  Trade Facilitation and Customs Procedures are covered by Articles 14, and 15 of the 
Agreement and Annex IV. In addition Annex V de tails the mandate of the Sub-Committee on Rules 
of Origin, Customs Procedures and Trade Facilitation (section 4.5 below).  
3.37.  To facilitate trade the Parties agree to simplify trade procedures in goods and related 
services between them and to promote co-opera tion to enhance their participation in the 
development and implementation of international conventions and recommendations on trade facilitation (Article 14). Trade facilitation measures are to be based on the principles of 
transparency, efficiency, simplification, harmonization and consistency of trade procedures; 
promotion of international standards; consistency with multilateral instruments; best possible use of information technology; government controls based on risk management; co-operation among 
customs and border authorities of the Parties; and consultations between the Parties and their 
respective business communities. For the sake of transparency they agree to publish on the Internet as far as practicable in English, all laws regulations and administrative decisions of general 
application relevant to their bilateral trade. They will also establish enquiry points for customs and 
other matters which can be contacted via the Internet in English; according to the Parties such contact information has been exchanged.  Other measures to improve transparency include 
consulting with the business community especially  small and medium enterprises on its needs on 
the development and implementation of trade facilitation measures; providing a reasonable 
interval between the publication of laws and regulations of general application on international trade in goods and their entry into force; publishi ng in advance and especially on the Internet any 
proposed laws and regulations of general application relevant to international trade, with a view to 
providing an opportunity to interested persons to comment. The Parties shall administer in a uniform, impartial and reasonable manner all its laws, regulations and administrative decisions 
relevant to international trade in goods (Article 2 of Annex IV). The Parties may make any 
                                               
21 Under Transitional Measures Article VI and XVI of the GATT 1994 and the WTO Agreement on 
Subsidies and Countervailing measures  were made part of the Agreement and applied mutatis mutandis 
between the Parties pending Montenegro's accession to the WTO. Until its accession to the WTO, Montenegro 
would not apply anti-dumping measures on  imports from another Party (Annex VII). WT/REG323/1 
 
- 24 - 
 
  suggestions to improve trade facilitation to the Jo int Committee for consideration. They also agree 
to review relevant international initiatives on trade facilitation in order to identify further areas where joint action could contribute to their common objectives. 
3.38.   Article 4 of Annex IV provides for the Parties to provide binding, advance rulings in writing 
in a reasonable, time-bound manner. Any decisi on not to issue an advance ruling must be 
explained in writing including the reasons for the decision. They agree to apply simple and 
impartial customs and border procedures, limit controls and formalities and documents related to 
international trade; and use efficient trade proc edures, based on international standards where 
appropriate aiming at reducing unnecessary costs and delays in trade between them. In addition 
the importing Party will not require a copy of the export declaration from the importer, and each Party will adopt or maintain procedures that provide for advance electronic submission and 
processing of information and release goods prior to importers meeting all import requirements 
upon providing sufficient guarantees and where furt her physical examination or physical inspection 
is not deemed necessary (Article 5). Further provisions are made for risk management of the 
entry, exit, transit, transfer and end-use of g oods (Article 7), the possibility of an Authorized 
Economic Operator System (Article 8) and Customs brokers (article 9). Fees and charges imposed in connection with imports or exports shall not be calculated on an ad valorem  basis, they are to 
be limited to the approximate cost of services rendered and not be an indirect protection to 
domestic products or a tax on imports or exports for fiscal purposes (Article 10). Temporary admission of goods is permitted under Article 12 including for inward and outward processing (Article 13) in accordance with international standards. 
3.4.6  Other regulations 
3.5  Sector-Specific Prov isions of the Agreement 
3.39.   There are no sector specific provisions per se in the Agreement. However, as indicated 
above, three Agreements on Agriculture have been concluded jointly with the Agreement. 
4  GENERAL PROVISIONS OF THE AGREEMENT 4.1  Transparency 
4.1.  Article 6 requires the Parties to publish or otherwise make publicly available their laws, 
regulations, judicial decisions, administrative rulings of general application and the international agreements to which they are party that may affe ct the operation of the Agreement. The Parties 
must promptly respond to any specific questions and provide information (except confidential 
information) to another Party on request on these matters. 
4.2  Current payments and capital movements 4.2.  With the exception of measures that may be taken in case of balance of payments difficulties, 
Article 27 requires that the Parties allow all payments for current transactions in a freely 
convertible currency; Article 28 requires the Parties to ensure that capital for investments made in companies formed in accordance with their respective laws, any returns stemming therefrom and 
the amounts resulting from liquidations of inve stments are freely transferrable. The Parties will 
hold consultations with a view to facilitating the movement of capital between Montenegro and the EFTA States and achieving its complete liberalization as soon as conditions permit. 
4.3  Exceptions 
4.3.  Article 22 provides that for trade in goods Articles XX and XXI of the GATT 1994 shall apply 
with respect to general and security exceptions and are incorporated into and made part of the 
Agreement mutatis mutandis .  
4.4.  Under Article 30 general and security exceptions in relation to trade in services are provided 
by incorporating subparagraphs (a) to (c) of Article XIV and paragraphs 1 of Article XIV bis of the 
GATS into and made part of the Agreement mutatis mutandis . WT/REG323/1 
 
- 25 - 
 
  4.4  Accession and Withdrawal 
4.5.  Under Article 49 any State that becomes a member of the EFTA may accede to the 
Agreement, providing that the accession is approved by the Joint Committee on terms and conditions to be agreed upon by the Parties. The instrument of accession shall be deposited with 
the Depository which is the Government of Norway (Article 52). The Agreement shall enter into 
force for the acceding State on the first day of the third month following the deposit of its instrument of accession, or the approval of th e terms of accession by the existing Parties, 
whichever is later. 
4.6.  Article 50 permits a Party to withdraw from  the Agreement through a written notification to 
the Depository. The withdrawal shall take effect six months following the date of receipt of the notification by the Depository. The Agreement shall cease to be effective on the date of accession 
of Montenegro to the EU. Any EFTA State which withdraws from the EFTA Convention shall 
ipso facto , on the same day as its withdrawal takes effect, cease to be a Party to the Agreement. 
4.5  Institutional framework 
4.7.  Chapter 7 establishes the EFTA-Montenegro Joint Committee composed of representatives of 
the Parties and headed by senior officials. Its role is to supervise and review the implementation of the Agreement including through a comprehensive review and any specific reviews required by the 
Agreement; review the possibility of further removing barriers to trade and other restrictive 
measures in the Parties' mutual trade; oversee the further development of the Agreement; supervise the work of the committees or any work ing groups; endeavour to resolve disputes that 
may arise regarding the interpretation or application of the Agreement; and consider any other 
matter affecting the implementation of the Agreement. 
4.8.  The Joint Committee may in addition to th e committees established by the Agreement set up 
other committees or working groups as it sees necessary to assist it in its tasks. It may by 
consensus take decisions as provided for in the Agreement and may make recommendations on 
other matters. It shall meet whenever necessary by mutual agreement but in any case normally 
every two years. In addition any Party may request at any time through written notice to the other 
Parties, a special meeting of the Joint Committee. The requested meeting shall take place within 
30 days of the receipt of the request unless the Parties agree otherwise.  
4.9.  The Joint Committee may make a decision to  amend the Annexes and their appendices to the 
Agreement. Such a decision shall enter into force on the date the last Party notifies that its internal 
requirements to ratify the decision have been fulf illed unless the decision specifies a later date of 
entry into force. The Joint Committee may decide th at the decision shall enter into force for those 
Parties that have fulfilled their internal requirements provided that Montenegro is one of those 
Parties. A Party may apply a decision of the Joint Committee provisionally until it enters into force 
for that Party subject to its constitutional requirements. 
4.10.  In addition to the Joint Committee, Article 15 sets up a Sub-Committee on Rules of Origin, 
Customs Procedures and Trade Facilitation. Its mandate, which is set up in Annex V, includes the 
exchange of information, review of developments, preparation and coordination of positions of the 
Parties, preparing technical amendments and assisting the Joint Committee in rules of origin and administrative co-operation, trade facilitation, Articles 7 (scope), 9 (customs duties) and 
10 (quantitative restrictions) of the trade in good s chapter and other matters in trade in goods as 
referred to it by the Joint Committee.  
4.6  Dispute settlement 
4.11.  Under Chapter 8 (Articles 42-44), disputes between the Parties may be resolved through 
consultations (Article 42) and/or arbitration. The Parties will make all efforts to resolve any differences on the interpretation, implementation and application of the Agreement through 
co-operation and consultations to arrive at a mutually acceptable solution. Consultations may be 
requested in writing concerning any actual or proposed measure or any other matter that a Party considers might affect the operation of the Agreement. The other Parties shall also be informed of the request in writing along with relevant information. Consultations shall take place in the Joint 
Committee if any Party so requests within 20 days of receipt of the request with a view to finding a WT/REG323/1 
 
- 26 - 
 
  mutually acceptable solution. An arbitration panel can be requested if the Party to which the 
request for consultations is made does not respond within ten days or hold consultations within 20 days of receipt of the request. 
4.12.  Disputes between the Parties concerning the interpretation of rights and obligations under 
the Agreement and which have not been settled through direct consultations or in the Joint 
Committee within 60 days from the date of receiving the request for consultations, may be referred by the complaining Party to arbitration through a written request to the Party complained 
against. All other Parties must be copied so that they can determine whether to participate in the 
arbitration. If more than one Party requests the establishment of an arbitral tribunal on the same matter or if the request involves more than one Party complained against, a single arbitration panel should, where feasible, be established. In addition the Parties that are not party to the 
dispute are entitled to make and receive written submissions to and from the arbitration panel, 
attend hearings and make oral statements, upon written request. 
4.13.  Under Article 43, the arbitration panel which is comprised of three members shall examine 
the matter in the request for establishment of an arbitration panel in light of the provisions of the 
Agreement applied and interpreted in accordance with the rulings of interpretation of public 
international law.
22 The ruling by the arbitration panel will be final and binding on the parties to the 
dispute and shall be made public unless the partie s to the dispute agree otherwise. The arbitration 
panel will make its ruling within 180 days of the date on which the presiding arbitrator of the arbitration panel was appointed. 
4.14.  The party complained against shall promptly comply with the ruling of the arbitration panel. 
If it is impractical to comply immediately the parties to the dispute shall agree a reasonable period 
of time within which to implement the ruling. If th ere is no agreement within 30 days of the ruling, 
either party to the dispute may, within 10 days from the expiration of the 30 day period request 
the original arbitration panel to determine the length of the reasonable period of time. The party 
concerned shall notify the other party in writing of the measure adopted in order to implement the ruling. If the Party concerned fails to comply with the ruling within a reasonable period of time and 
the parties to the dispute have not agreed on any compensation, the other party to the dispute 
may, until the ruling has been properly implemente d or the dispute resolved otherwise, subject to 
a prior notification of 30 days, suspend the application of benefits granted under the Agreement but only equivalent to those affected by the measure the arbitration panel found to violate the 
Agreement (paragraph 3, Article 44). 
4.15.  If there is any dispute regarding the implem entation of the ruling or notified suspension, it 
shall be examined by the original arbitration pane l upon request by either party before suspension 
of benefits can take place. The arbitration panel may also rule on the conformity with the ruling of 
any implementation measure adopted after the susp ension of benefits and whether the suspension 
of benefits shall be modified or terminated. This ruling shall normally be made within 45 days of 
receipt of the request (paragraph 4, Article 44). Th e Parties indicate that there has not so far been 
recourse to consultations or disputes under the Agreement.  
4.7  Relationship with other agreements concluded by the Parties 4.16.  Under Article 3 the Parties confirm their rights and obligations under the WTO Agreement, 
other agreements negotiated thereunder as well as any other international agreements to which 
they are party. Moreover, the provisions of th e Agreement shall be without prejudice to the 
interpretation and application of rights and ob ligations under any other international agreement 
relating to investment to which one or several of the EFTA States and Montenegro are party. 
4.17.  If a Party considers that the maintenance or establishment of a customs union, a free trade 
area, an arrangement for frontier trade or another preferential agreement by another Party may 
alter the trade regime under the Agreement, it ma y request consultations with that Party and shall 
                                               
22 The members of the arbitration panel shall be nomi nated in accordance with "the Optional Rules for 
Arbitrating Disputes between Two States of the Perm anent Court of Arbitration" effective 20 October 1992 
(paragraph 4). Unless agreed otherwise by the partie s to the dispute these Optional Rules shall apply mutatis 
mutandis  (paragraph 10). In addition the arbitration panel's hearings shall be open to the public unless the 
parties to the dispute agree otherwise (paragraph 6). WT/REG323/1 
 
- 27 - 
 
  be granted adequate opportunity for such consultations. The Parties' participation in RTAs (notified 
and non-notified) other than the Agreement are shown in Table 4.1 below. 
Table 4.1 EFTA States and Montenegro: Pa rticipation in other RTAs (notified and 
non-notified in force), as of 10 June 2013 
Partner / 
Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EFTA STATES - COLLECTIVELY 
Hong Kong, China 01.10.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Ukraine 01.06.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Peru 01.07.11 Goods 2011 GATT Art. XXIV 
Colombia 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Albania 01.11.10 Goods 2011 GATT Art. XXIV 
Serbia 01.10.10 Goods 2010 GATT Art. XXIV 
Canada 01.07.09 Goods 2009 GATT Art. XXIV 
SACU 01.05.08 Goods 2008 GATT Art. XXIV 
Egypt 01.08.07 Goods 2007 GATT Art. XXIV 
Lebanon 01.01.07 Goods 2006 GATT Art. XXIV 
Republic of Korea 01.09.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Tunisia 01.06.05 Goods 2005 GATT Art. XXIV 
Chile 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Singapore 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Jordan 01.09.02 Goods 2002 GATT Art. XXIV 
FYROM 01.05.02 Goods 2000 GATT Art. XXIV 
Croatia 01.04.02 Goods 2002 GATT Art. XXIV 
Mexico 01.07.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Morocco 01.12.99 Goods 2000 GATT Art. XXIV 
Palestinian 
Authority 01.07.99 Goods 1999 GATT Art. XXIV 
Israel 01.01.93 Goods 1992 GATT Art. XXIV 
Turkey 01.04.92 Goods 1992 GATT Art. XXIV 
Iceland (EFTA 
Accession) 01.03.70 Goods 1970 GATT Art. XXIV 
EFTA 03.05.60 
01.06.02 Goods 
Services 1959 
2002 GATT Art. XXIV 
GATS Art. V 
INDIVIDUAL  EFTA  STATES 
Japan - Switzerland 01.09.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Iceland – Faroe 
Islands 01.11.06 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Faroe Islands – 
Switzerland 01.03.95 Goods 1996 GATT Art. XXIV 
EEA 01.01.94 Services 1996 GATS Art. V 
Faroe Islands – 
Norway 01.07.93 Goods 1996 GATT Art. XXIV 
EU-Norway 01.07.73 Goods 1973 GATT Art. XXIV WT/REG323/1 
 
- 28 - 
 
  Partner / 
Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EU-Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
EU-Switzerland/ 
Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
MONTENEGRO 
Ukraine 01.01.13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Turkey 01.03.10 Goods 2010 GATT Art. XXIV 
European Union 01.01.08 
01.05.10 Goods 
Services 2008 
2010 GATT Art. XXIV 
GATS Art. V 
CEFTA 01.05.07 Goods 2007 GATT Art. XXIV 
 
Source: WTO Secretariat. 
 
SACU: Southern African Customs Union FYROM: Former Yugoslav Republic of Macedonia 
EEA: European Economic Area CEFTA: Central European  Free Trade Agreement 
 
4.8  Government procurement 
4.18.  Under Article 26 the Parties commit to enhance their mutual understanding of their 
government procurement laws and regulations with  a  v i e w  t o  p r o g r e s s i v e l y  l i b e r a l i z i n g  t h e i r  
respective government procurement markets on the basis of non-discrimination and reciprocity. 
They will publish their laws or otherwise make publicly available their laws, regulations and 
administrative rulings of general application as well as international agreements to which they are party that may affect their procurement markets. Moreover each Party shall respond promptly to 
specific questions and provide information to other Parties upon request on such matters. 
Following the entry into force of the Agreement if any Party provides additional benefits with regard to access to its procurement market, it shall agree to enter into negotiations with a view to 
extending these benefits to the other Party on a reciprocal basis. 
4.9  Intellectual Property Rights 4.19.  Chapter 3 (Article 23) and Annex VI of the Agreement covers intellectual property rights 
(IPRs). The Parties agree to ensure and grant adequate, effective and non-discriminatory 
protection of IPRs and their enforcement in accord ance with Article 23, Annex VI and the internal 
agreements referred to therein.
23 Article 1 of Annex VI defines IPRs in particular the protection of 
copyright including the protection of computer programmes and compilations of data and related 
rights, trademarks for goods and services, geographical indications (GIs) as well as appellations of 
origin of goods and indications of source for good s and services, industrial designs, patents, plant 
varieties, topographies of integrated circuits, as well as undisclosed information.  
4.20.  The Parties agree to provide each others' nationals national and MFN treatment 
(Articles 23:2 and 23:3 respectively); exemptions to this obligation must be in accordance with the substantive provisions of Articles 3, 4 and 5 of  the WTO Agreement on Trade Related Aspects of 
Intellectual Property Rights (TRIPS Agreement).
24 They agree, upon the request of any Party to 
                                               
23 As listed in paragraph 1 of Article 2 of Annex VI. In addition the Parties agree to ratify or accede to 
international IP agreements listed in paragraph 3 of Article 2 of Annex VI (Geneva Act of 1999 of the Hague 
Agreement concerning the internatio nal registration of in dustrial design s; WIPO Copyright Treaty of 
20 December 1996; WIPO Performances and Phonograms Tr eaty of 20 December 1996; and the International 
Convention for the Protection of New Varieties of Plants 1991 unless the Party concerned is already a member of the International Convention for the Protection of New Varieties of Plants 1978 and chose not to accede to 
the 1991 Act). They also agree to comply with the substantative provisions of the TRIPS Agreement. 
24 Article 3 of the TRIPS Agreement permits certain ex ceptions relating to membership of certain other 
international agreements; Article 4 permits exceptions relating to membership of certain other international agreements, both relating to intellectual property but also of a general nature; while Article 5 grants exceptions WT/REG323/1 
 
- 29 - 
 
  review Article 23 and Annex VI with a view to fu rther improving the levels of protection and to 
avoiding and remedying trade distortions caused  by the current levels of IPR protection 
(Article 23:4). They also agree to promptly hold expert meetings upon request by any Party on activities referred to in the conventions identified  in Annex VI or future international conventions 
on harmonization, administration and enforcement of IPRs and on activities in international 
organizations such as the WTO and WIPO as well as on relations of the Parties with non-parties on IPR matters (Article 2:4 of Annex VI). In addition recognizing the growing importance of IPRs as a 
factor of social, economic and cultural developmen t, the Parties agree to enhance co-operation in 
the field of IPRs (Article 17 of Annex VI). 
4.21.  Standards of protection are described in Section II of Annex VI. For copyright protection, the 
Agreement extends protection in general to the li fe of the author and 70 years after his or her 
death (50 years for computer programmes); for related rights covered by the Agreement and other 
rights whose term of protection is calculated on a basis other than the life of a natural person, the period of protection shall be no less than 50 years after the authorized publication, or, failing such 
authorized publication within 50 years from the making of the work (Article 3). For patents, in 
addition to the 20 year period of protection, compensatory term of protection for pharmaceuticals and plant products for a period equal to that wh ich elapsed between the filing date of the patent 
application and the date of market authorization of  the product reduced by a period of five years 
shall be granted. The compensatory protection w ill be provided for a maximum of five years and 
granted under certain conditions (Article 5).
25 Article 6 further outlines the protection of 
undisclosed test results or other data if required as a condition for approving the marketing of 
pharmaceutical or agricultural chemical products which utilize chemical or biological entities. 
Industrial designs are to be protected for at le ast 25 years in total although shorter periods of 
protection may be granted for designs of component parts used for the repair of a product 
(Article 7). With respect to geographical indications (GIs), the Parties agree to provide adequate 
and effective means to protect GIs in their national laws for all products and indications of sources and names and flags of countries with regard to all products and services (Article 8). Finally 
Article 9 ensures that where the acquisition of an  IPR is subject to the right being granted or 
registered, the procedures for granting or registering are at least of the same level as provided in the TRIPS Agreement. 
4.22.  Section IV of Annex VI deals with enforcement of IPRs and ensures at least the same level 
of enforcement provisions as in the TRIPS Agreement. Such provisions include the possibility of 
suspension of release of goods suspected of infringi ng intellectual property rights by customs if a 
written application is made to the authorities by the right holder (Article 11); the possibility of 
injunctions being made by the judicial authority in case of infringement or an imminent threat 
thereof (Article 12); as well as civil and criminal remedies in case of wilful infringement (Articles 14 and 15).  
4.10  Other 
4.23.  Under Articles 47 of the Agreement, the Pa rties agree to review the Agreement in the Joint 
Committee in light of further developments in international economic relations inter alia  in the 
framework of the WTO and other relevant factors, the possibility of further developing and 
deepening their co-operation under the Agreement an d to extend it to areas not currently covered. 
Article 48 permits the Parties to amend the Agre ement. Any amendments except under paragraph 
8 of Article 41 (amendments to Annexes and thei r appendices), are to be submitted to the 
Parties for ratification, acceptance or approval and unless otherwise agreed, shall enter into force 
on the first day of the third month following the deposit of the last instrument of ratification, acceptance or approval. 
                                                                                                                                                
for national and MFN treatment for procedures provided in multilater al agreements concluded under the 
auspices of WIPO relating to the acquisition or maintenance of intellectual property rights. 
25 That the product is protected by a patent in force; there has been an official marketing authorization 
for the medicinal or plant protection product; the ri ght conferred by the patent has been postponed by 
administrative procedures regarding au thorization of market access so that the effective use of the patent 
amounts to less than 15 years; and th at the effective protection conferred by the patent and the compensatory 
protection shall together not exceed 15 years (Article 5 of Annex VI). WT/REG323/1 
 
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  4.10.1  Services 
4.24.  The Parties commit to gradually liberalize and open their markets for trade in services in 
accordance with the provisions of the GATS, taking into account ongoing work in the WTO 
(Article 25). Furthermore, if after the entry into force of the Agreement a Party grants to a non-
party additional market access in its services market s, it shall agree to enter into negotiations with 
a view to extending these benefits to another Party on a reciprocal basis (Article 25:2). The Parties also agree to keep under review these commitments with a view to establishing an agreement 
liberalizing trade in services between them in accordance with Article V of the GATS. 
4.10.2  Investment 4.25.  Under Article 24 the Parties endeavour to provide stable, equitable and transparent 
investment conditions for investors of the other Parties that are making or seeking to make 
investments in their territories. Investments from investors of any Party shall be allowed by any 
other Parties in accordance with their laws and regulations while recognizing that it is inappropriate to encourage investment by relaxing health, safety or environmental standards. Recognizing the 
importance of promoting investment and technology flows as a means to achieving economic 
growth and development, the Parties may cooperate in this regard by, inter alia, developing 
appropriate means of identifying investment opportunities and information channels on investment 
regulations; exchanging information on measures to promote investment abroad; and by 
furthering of a legal environment conducive to increased investment flows. 
4.26.  Issues related to investment, including the right of establishment of investors from one 
Party in the territory of another, are to be review ed in the Joint Committee no later than five years 
following the entry into force of the Agreement. Fi nally, in paragraph 5, Iceland, Liechtenstein and 
Switzerland on the one part and Montenegro on the other agree to refrain from arbitrary or discriminatory measures regarding investments by investors of one of the aforementioned Parties 
and shall observe obligations they have entered into with regard to specific investments by 
investors of these Parties. 
4.10.3  Competition 
4.27.  Article 17 recognises that certain actions by the Parties are incompatible with the proper 
functioning of the Agreement insofar as they ma y affect trade between Montenegro and an EFTA 
State: these are all agreements between undertaki ngs, decisions by associations of undertakings 
and concerted practices between undertakings which have as their object or effect the prevention, 
restriction or distortion of competition; and abuse by one or more undertakings of a dominant 
position in the territory of a Party as a whole or in a substantial part thereof (Article 17:1). These provisions apply to the activities of public undertakings and undertakings which have been granted 
special or exclusive rights by a Party as long as the provisions do not obstruct the performance in 
law or in fact, of the particular public tasks assigned to them (Article 17:2). 
4.28.  If a Party considers that a given practice is incompatible with these provisions it may 
request consultations in the Joint Committee. The Parties concerned will provide the Joint 
Committee with the all assistance required to ex amine the case and where appropriate eliminate 
the practice objected to. If the Party concerned does not eliminate the practice within the period set by the Joint Committee or if there is no agreement in the Joint Committee after consultations 
or after 30 days following the referral for consultations, the Party requesting consultations may 
adopt appropriate measures to deal with the difficul ties resulting from the practice (Article 17:4). 
4.10.4  Labour and environmental issues 
4.29.  Chapter 6 on Trade and Sustainable Development deals with measures adopted or 
maintained by the Parties affecting trade and investment related aspects of labour and environmental issues. 
4.30.  The Chapter recognizes the right of each Pa rty subject to the provisions of the Agreement to 
establish its own levels of environmental and labour protection and to adopt or modify accordingly its relevant laws and policies. However, each Party shall seek to ensure that its laws, policies and practices provide for and encourage high levels of environmental and labour protection, consistent WT/REG323/1 
 
- 31 - 
 
  with their obligations under their multilateral agreements on labour rights and the environment.26 
The Parties also recognize the importance, when preparing and implementing measures related to 
the environment and labour conditions that affect trade and investment between them, of taking into account scientific, technical and other information and relevant international standards, 
guidelines and recommendations. 
4.31.  Subject to Article 33 (Right to Regulate and Levels of Protection), the Parties agree not to 
weak or reduce the levels of environmental or labour protection provided by their laws, regulations 
or standards, with the sole intention to encourage investment from another Party or to seek or 
enhance a competitive trade advantage for producers or service providers in its territory Furthermore, the Parties shall not waive or otherwise derogate from, or offer to waive or derogate from such laws, regulations and standards in order to encourage investments from another party 
or to seek or enhance a competitive trade advantage for producers or service providers in its 
territory (Article 34). 
4.32.  They also agree to strive to facilitate and promote foreign investment, trade in and 
dissemination of goods and services beneficial  to the environment, including environmental 
technologies, sustainable renewable energy, energy efficient and eco labelled goods and services, including through addressing non-tariff barriers. They will also strive to facilitate and promote 
foreign investment, trade in and dissemination of goods and services that contribute to sustainable 
development, including goods and services that are subject to schemes such as fair and ethical trade. In this regard, the Parties will exchange views and may consider joint or bilateral co-operation. They will also encourage co-operation between enterprises in relation to goods, 
services and technologies that contribute to sustainable development and are beneficial for the 
environment (article 37). More generally the Parties agree to strengthen their co-operation on trade and investment related labour and environmental issues of mutual interest in relevant 
bilateral, regional and multilateral fora in which they participate (Article 38).  
4.33.  To implement the Chapter the Parties design ate administrative entities who will be contact 
points for the implementation of the Chapter. A party may request expert consultations or 
consultations in the Joint Committee regarding any matter arising under the Chapter. Every 
attempt shall be made to find a mutually satisfactory resolution. Where relevant and subject to the agreement of the Parties, they may seek advice fromrelevant international organizations or bodies. If a Party considers that a measure of another Party does not comply with the obligations under 
the Chapter, it may have recourse to consultations under Article 42, paragraph 1 to 3 
(Consultations under the Dispute Settlement Chapter) but not to other Dispute Settlement Procedures in Chapter 8.  
4.34.  The Parties envisage a periodic biennial review in the Joint Committee of progress achieved 
in pursuing the objective of the Chapter and to consider relevant international developments to identify areas where further action can be taken to promote these objectives (Article 40). 
 
                                               
26 With regard to labour these include the ILO and the ILO Declaration on Fundamental Principles and 
Rights at Work and its Follow-up adopted by the International Labour Conference at its 86th Session in 1998 
and under the Ministerial Declaration of the UN ECOSOC  on Full Employment and Decent Work of 2006 and the 
ILO Conventions (Article 35). With regard to the enviro nment they reaffirm their co mmitment to the effective 
implementation in their laws and practices of the multilateral environmental agreements to which they are party (Article 36) and their environmen tal principles reflected in instruments such as the Stockholm Declaration 
on the Human Environment of 1972, th e Rio Declaration on Environment and Development of 1992, Agenda 21 
on Environment and Development of 1992 and the Johann esburg Plan of Implementation on Sustainable 
Development of 2002 (Article 31).  WT/REG323/1 
 
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  ANNEX 1 
INDICATORS OF MARKET ACCESS 
1. Tables A1.1-A1.3 show tariff liberalization by the EFTA States categorized by total, 
agricultural and non-agricultural products. In 2012 when the Agreement entered into force 70.1% 
of Iceland's tariff was duty free on an MFN basis with the corresponding shares for agriculture at 
55.6% and 74.3% for non-agricultural products. Under the Agreement Iceland liberalized a total of 93.6% of its tariff for imports from Montenegro, of which 71.6% for agricultural and 100% for 
non-agricultural products. As a result, Montenegri n exporters benefit from an average margin of 
preference of 61.4% overall, 30.7% for agricu ltural products and 100% for non-agricultural 
products. In 2012 83.5% of Norway's tariff was du ty free on an MFN basis with 36.6% and 95.2% 
of agricultural and non-agricultural tariff lines duty free. As a result of the Agreement Norway 
liberalized a total of 88% of its tariff lines for imports from Montenegro, of which 40% for 
agricultural and 100% for non-agricultural produc ts. Montenegrin exporters thus had an average 
margin of preference over exporters under the MFN regime of 19.1%, 6.9% for agricultural and 
100% for non-agricultural products. Before entry into force of the Agreement 18.7% of the tariff 
was duty free on an MFN basis; 18.3% and 18.8% of  agricultural and non-agricultural tariffs were 
duty free on an MFN basis. In 2012 Switzerland liberalized a total of 83.7% of its tariff lines for 
imports from Montenegro of which 100% for non-ag ricultural products and 36.8% for agricultural 
products. As the majority of Switzerland's tariff is  composed of specific rates of duty for which 
ad valorem  equivalents are not available, it is not possible to measure the relative margin of 
preference granted to Montenegrin exporters. 
Table A1.1  
Iceland: Indicators of MFN tariff rates and preferential rates for imports from 
Montenegro
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 4.4 15.0 70.1 11.4 26.6 55.6 2.5 9.5 74.3 
Montenegro 2012 1.7 32.5 93.6 7.9 32.5 71.6 0.0 0.0 100.0 
a  WTO Definition. 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included. 
 Based on the HS 2012 nomenclature. Source: WTO Secretariat estimates based on data provided by Iceland and the WTO-IDB database. 
Table A1.2 
Norway: Indicators of MFN tariff rates an d preferential rates for imports from 
Montenegro  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overal
l (%) On 
dutiable 
(%) 
MFN 2012 2.1 37.2 83.5 17.5 106.3 36.6 0.5 9.9 95.2 
Montenegro 2012 1.7 118.2 88.0 16.3 118.2 40.0 0.0 0.0 100.0 
a  WTO Definition. 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included. 
 Based on the HS 2012 nomenclature. 
Source: WTO Secretariat estimates based on data provided by Norway and the WTO-IDB database. WT/REG323/1 
 
- 33 - 
 
  Table A1.3  
Switzerland: Indicators of MFN tariff rates and preferential rates for imports from Montenegro
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 ... … 18.7 … … 18.3 … … 18.8 
Montenegro 2012 … … 83.7 … … 36.8 … … 100.0 
 
a WTO Definition. …  Not available: the majority of Switzerland's tariff is subject to specific duties for which ad valorem  
equivalents are not available. 
Note: Calculation excludes specific and in-quota rates.  Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Switzerland.  
2. For Montenegro, in 2012 26.5% of its total tariff, 16.4% for agriculture and 29.3% for 
non-agricultural products was duty free on an MFN basis. Once it implements its tariff liberalization 
commitments under the Agreement 84.9% of its tariff  will be duty free for imports from the EFTA 
States of which 99.9% for non-agricultural products and 31.9% for agricultural products. As a result of the Agreement EFTA exporters to Mont enegro benefited in 2012 from an average margin 
of preference of 45.6%, 6.5% and 88.2% for agricultural and non-agricultural products. 
Table A1.4  
Montenegro: Indicators of MFN tariff rates and preferential rates for imports from EFTA  
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 5.7 7.7 26.5 13.8 16.5 16.4 3.4 4.8 29.3 
EFTA 2012 3.1 14.9 79.0 12.9 16.3 20.9 0.4 8.1 95.4 
  2013 2.9 14.0 79.0 12.3 15.6 20.9 0.3 6.2 95.4 
  2014 2.7 13.1 79.0 11.8 14.9 20.9 0.2 4.3 95.4 
  2015 2.6 13.8 81.4 11.3 16.6 31.9 0.1 2.4 95.4 
  2016 2.5 16.5 84.8 11.3 16.6 31.9 0.0 8.3 99.8 
  2017 2.5 16.5 84.8 11.3 16.6 31.9 0.0 7.5 99.8 
  2018 2.5 16.6 84.9 11.3 16.6 31.9 0.0 10.9 99.9 
 
a WTO Definition. Note: Based on the HS 2012 nomenclature.  Source:  WTO Secretariat estimates based on data provided by Montenegro and the WTO-IDB Database
. 
 
3. Tables A1.5-A1.7 show market access opportuni ties under the Agreement in the markets of 
the EFTA States for Montenegro's top 25 global exports. In 2012, Montenegro's top 25 exports accounted for 76.7% of its total exports and accounte d for 116 lines of Iceland's tariff. As a result 
of the Agreement, Iceland liberalized a further 23 lines for imports from Montenegro; 13 lines, 
12 of which concern food preparations and one concerning other vegetables, remain subject to duty for imports from Montenegro. WT/REG323/1 
 
- 34 - 
 
  Table A1.5  
Iceland: Market access opportunities under  the Agreement for Montenegro's top 25 
exports to the world  
Montenegro's top export products in 2009-2011 Access Conditions to Iceland's import 
markets 
MFN (2012) Duty-
free 
in 
2012  
Remain 
Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff lines 
Duty-
free Dutiable 
760110 - aluminium, not alloyed 40.1 0.0 1       
271600 Electrical energy. (optional heading) 6.3 0.0 1       
220421 -- in containers holding 2 l or less 4.8 1.4 42 7 7   
720449 -- other 2.5 0.0 1       
440710 - coniferous 2.5 0.0 2       
740400 Copper waste and scrap. 1.8 0.0 1       
300490 - other 1.8 4.0 4 1 1   
721499 -- other 1.6 0.0 2       
848330 - bearing housings, not incorporating ball 
or roller bearings; plain shaft bearings 1.5 0.0 1       
722490 - other 1.4 0.0 1       
722410 - ingots and other primary forms 1.4 0.0 1       
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) 
and preparations not elsewhere specified 
or included, containing by weight 70 % or 
more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being 
the basic constituents of the preparations, 
containing biodiesel, other than waste oils 1.3 0.3 14 1 1   
722830 - other bars and rods, not further worked 
than hot-rolled, hot-drawn or extruded 1.2 0.0 1       
930690 - other 0.9 3.8 1 1 1   
270210 - lignite, whether or not pulverised, but 
not agglomerated 0.8 0.0 1       
271019 -- other 0.8 0.6 8 1 1   
220300 Beer made from malt. 0.8 10.0 7 7 7   
440792 -- of beech (fagus spp.) 0.7 0.0 2       
440320 - other, coniferous 0.7 0.0 1       
846221 -- numerically controlled 0.7 0.0 1       
760200 Aluminium waste and scrap. 0.7 4.0   1 1   
070959 -- other 0.6 30.0   2 1 1 
210690 - other 0.6 5.9 21 12   12 
730890 - other 0.6 5.0   3 3   
721391 -- of circular cross-section measuring less 
than 14 mm in diameter 0.6 0.0 2       
Total of above 76.7   116 36 23 13 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included. 
 Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided by  Iceland, the WTO-IDB and the UNSD, Comtrade 
databases. 
 
4. Table A1.6 shows market access opportunities for Montenegro's top 25 exports to Norway 
which are covered by 77 tariff lines in Norway. As  a result of the Agreement Norway liberalized 
seven tariff lines with a further seven covering food preparations remaining subject to duties. WT/REG323/1 
 
- 35 - 
 
  Table A1.6 Norway: Market access opportuniti es under the Agreement for Montenegro's 
top 25 exports to the world  
Montenegro's top export products in 2009-2011 Access Conditions to Norway's import 
markets 
MFN (2012) 
Duty-free 
in 2012 
Remain 
Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%) No. of tariff 
lines 
Duty
-free  Dutiable 
760110 - aluminium, not alloyed 40.1 0 1       
271600 Electrical energy. (optional heading) 6.3 0 1       
220421 -- in containers holding 2 l or less 4.8 0 2       
720449 -- other 2.5 0 1       
440710 - coniferous 2.5 0 6       
740400 Copper waste and scrap. 1.8 0 1       
300490 - other 1.8 0 2       
721499 -- other 1.6 0 1       
848330 - bearing housings, not incorporating 
ball or roller bearings; plain shaft bearings 1.5 0 1       
722490 - other 1.4 0 2       
722410 - ingots and other primary forms 1.4 0 1       
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) 
and preparations not elsewhere 
specified or included, containing by 
weight 70 % or more of petroleum oils 
or of oils obtained from bituminous 
minerals, these oils being the basic 
constituents of the preparations, 
containing biodiesel, other than waste 
oils 1.3 0 1       
722830 - other bars and rods, not further 
worked than hot-rolled, hot-drawn or extruded 1.2 0 1       
930690 - other 0.9 0 1       
270210 - lignite, whether or not pulverised, but 
not agglomerated 0.8 0 1       
271019 -- other 0.8 0 20       
220300 Beer made from malt. 0.8 1.28 NOK 
per L   5 5   
440792 -- of beech (fagus spp.) 0.7 0 1       
440320 - other, coniferous 0.7 0 4       
846221 -- numerically controlled 0.7 0 1       
760200 Aluminium waste and scrap. 0.7 0 1       
070959 -- other 0.6 -- 1 1   1 
210690 - other 0.6 8.8 3 8 2 6 
730890 - other 0.6 0 8       
721391 -- of circular cross-section measuring 
less than 14 mm in diameter 0.6 0 1       
Total of above 76.7  63 14 7 7 
 
--  Combination of specific and duty-free lines. Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included. 
 Based on the HS 2012 nomenclature.  Source:  WTO estimates based on data provided by Norway, the WTO-IDB and the UNSD, Comtrade 
database. WT/REG323/1 
 
- 36 - 
 
  5. Market access opportunities for Montenegro's  top 25 exports in Switzerland are shown in 
Table A1.7. Out of 82 tariff lines covering these products, 19 were duty free on an MFN basis when the Agreement entered into force. A further 41 lines were liberalized for imports from Montenegro in 2012 with the remaining 22 lines remaining subject to duties. These lines cover food 
preparations and wines in containers holding 2 litres or less.  
Table A1.7 Switzerland: Market access opportunities under the Agreement for 
Montenegro's top 25 exports to the world  
Montenegro's top export products in 2009-2011 Access Conditions to Switzerland's import 
markets 
MFN (2012) Duty-
free in  
Remain Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average MFN 
applied rate No. of tariff lines 2012 
(%) Duty-
free Dutiable 
760110 - aluminium, not alloyed 40.1 9.7 Fr. per 100 
Kg gross   1 1   
271600 Electrical energy. (optional heading) 6.3 0 1       
220421 -- in containers holding 2 l or less 4.8 8.22 Fr. per l   4 1 3 
720449 -- other 2.5 0 1       
440710 - coniferous 2.5 -- 1 2 2   
740400 Copper waste and scrap. 1.8 -- 1 1 1   
300490 - other 1.8 0 1       
721499 -- other 1.6 3.7 Fr. Per 100 
Kg gross   2 2   
848330 - bearing housings, not incorporating ball 
or roller bearings; plain shaft bearings 1.5 20 Fr. per 100 
kg gross   1 1   
722490 - other 1.4 0 1       
722410 - ingots and other primary forms 1.4 0 1       
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) 
and preparations not elsewhere specified 
or included, containing by weight 70 % or 
more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being 
the basic constituents of the preparations, 
containing biodiesel, other than waste oils 1.3 0 2       
722830 - other bars and rods, not further worked 
than hot-rolled, hot-drawn or extruded 1.2 2.65 Fr. per 
100 kg gross   2 2   
930690 - other 0.9 62.3 Fr. per 
100 kg gross   3 3   
270210 - lignite, whether or not pulverised, but not 
agglomerated 0.8 0.08 Fr. per 
100 kg gross   1 1   
271019 -- other 0.8 0 9       
220300 Beer made from malt. 0.8 12.5 Fr. per 
100 kg gross   4 4   
440792 -- of beech (fagus spp.) 0.7 3.9 Fr. per 100 
kg gross   2 2   
440320 - other, coniferous 0.7 0.29 Fr. per 
100 kg gross   4 4   
846221 -- numerically controlled 0.7 9.9 Fr. per 100 
kg gross   3 3   
760200 Aluminium waste and scrap. 0.0 0.07 Fr. per 
100 kg gross 1       
070959 -- other 0.6 8.5 Fr. per 100 
kg gross   1 1   
210690 - other 0.6 151.5 Fr. per 
100 Kg gross   29 10 19  
730890 - other 0.6 8.1 Fr. per 100 
kg gross   1 1   
721391 -- of circular cross-section measuring less 
than 14 mm in diameter 0.6 2.53 Fr. per 
100 kg gross   2 2   
Total of above 76.7   19 63 41 22 
-- Combination of specific and duty-free lines. 
 Source: WTO estimates based on data provided by Switzerland and the UNSD, Comtrade data. WT/REG323/1 
 
- 37 - 
 
  6. Tables A1.8-A1.10 show market access opportunities for EFTA's top 25 exports in 
Montenegro's market. Table A1.8 shows that during 2009-11 Iceland's top 25 exports covered 
66.5% of its total global exports and were covered by 84 tariff lines in the Montenegrin tariff. Of these 20 were already duty free on an MFN basis when the Agreement entered into force. In 2012 
Montenegro liberalized 38 of these lines with a further 25 and 1 lines to be liberalized in 2016 and 
2018 respectively. At the end of implementation  of its tariff liberalization commitments 
Montenegro would have liberalized all tariff lines. 
Table A1.8 Montenegro: Market access opport unities under the Agreement for Iceland's 
top 25 exports to the world
 
Iceland's top export products in 2009-2011 Access Conditions to Montenegro's 
import markets 
MFN (2012) Duty-free 
in 
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate No. of tariff 
lines 
2012 
2016 
2018 
(%) Duty-
free Dutiable 
760110 - aluminium, not alloyed 36.7 3.0   1 1     
230120 - flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 2.8 0.0 1         
720221 -- containing by weight more than 55 % of 
silicon 2.8 0.0 1         
300490 - other 2.2 0.0 1         
880240 - aeroplanes and other aircraft, of an unladen 
weight exceeding 15,000 kg 2.2 0.0 1         
030354 -- mackerel (scomber scombrus, scomber 
australasicus, scomber japonicus) 2.1 10.0   2 2     
030572 -- fish heads, tails and maws 1.5 10.0   1   1   
030579 -- other 1.5 10.0   1   1   
150420 - fats and oils and their fractions, of fish, other 
than liver oils 1.5 1.5 1 1 1     
030331 -- halibut (reinhardtius hippoglossoides, 
hippoglossus hippoglos sus, hippoglossus 
stenolepis) 1.3 10.0   3 3     
760719 -- other 1.1 8.0   2 2     
030562 -- cod (gadus morhua, gadus ogac, gadus 
macrocephalus) 0.9 10.0   1   1   
030390 - livers and roes 0.9 5.0 1 1 1     
030531 -- tilapias (oreochromis spp.), catfish 
(pangasius spp., silurus spp., clarias spp., 
ictalurus spp.), carp (cyprinus carpio, 
carassius carassius, ctenopharyngodon idellus, 
hypophthalmichthys spp., cirrhinus spp., 
mylopharyngodon piceus), eels (anguilla spp.), 
nile perch (lates niloticus) and snakeheads 
(channa spp.) 0.8 10.0   1   1   
030532 -- fish of the families bregmacerotidae, 
euclichthyidae, gadidae, macrouridae, melanonidae, merlucciidae, moridae and muraenolepididae 0.8 10.0   3 1 2   
030539 -- other 0.8 10.0   3   2 1 
720229 -- other 0.8 0.0 2         
760511 -- of which the maximum cross-sectional 
dimension exceeds 7 mm 0.7 10.0   1 1     
030493 -- tilapias (oreochromis spp.), catfish 
(pangasius spp., silurus spp., clarias spp., ictalurus spp.), carp (cyprinus carpio, carassius carassius, ctenopharyngodon idellus, hypophthalmichthys spp., cirrhinus spp., 
mylopharyngodon piceus), eels (anguilla spp.), 
nile perch (lates niloticus) and snakeheads (channa spp.) 0.7 9.0   2 2     WT/REG323/1 
 
- 38 - 
 
  Iceland's top export products in 2009-2011 Access Conditions to Montenegro's 
import markets 
MFN (2012) Duty-free 
in 
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate No. of tariff 
lines 
2012 
2016 
2018 
(%) Duty-
free Dutiable 
030494 -- alaska pollack (theragra chalcogramma) 0.7 8.8   2 1 1   
030495 -- fish of the families bregmacerotidae, 
euclichthyidae, gadidae, macrouridae, melanonidae, merlucciidae, moridae and muraenolepididae, other than alaska pollack (theragra chalcogramma) 0.7 7.8   9 1 8   
030499 -- other 0.7 8.9   8   8   
902131 -- artificial joints 0.7 0.0 1         
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 
preparations not elsewhere specified or 
included, containing by weight 70 % or more 
of petroleum oils or of oils obtained from 
bituminous minerals, these oils being the basic 
constituents of the preparations, containing 
biodiesel, other than waste oils 0.7 1.0 4 4 4     
271019 -- other 0.7 1.3 7 18 18     
Total of above 66.5   20 64 38 25 1 
 
Source: WTO estimates based on data provided by  Montenegro and the UNSD, Comtrade database. 
 
7. Table A1.9 shows market access opportunities for Norway's top 25 exports in 2009-11 which 
accounted for 75.8% of its global exports. These pr oducts were covered by 96 tariff lines in 2012 
of which 32 were duty free on an MFN basis. Following liberalization of a further 62 lines in 2012, 
2 lines are to be liberalized in 2018. As a result, all Norway's top 25 exports will have duty free market access to Montenegro's market at the end of implementation. 
Table A1.9 Montenegro: Market access opport unities under the agreement for Norway's 
top 25 exports to the world
 
Norway's top export products in 2009-2011 Access Conditions to Montenegro's 
import markets 
MFN (2012) Duty-
free in 
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff lines 
2012 
2018 Duty-
free Dutiable 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 36.2 0.0 2       
271121 -- natural gas 20.5 1.0   1 1   
760120 - aluminium alloys 2.4 3.0   3 3   
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 
preparations not elsewhere specified or 
included, containing by weight 70 % or more of 
petroleum oils or of oils obtained from 
bituminous minerals, thes e oils being the basic 
constituents of the preparations, containing 
biodiesel, other than waste oils 2.4 1.0 4 4 4   
750210 - nickel, not alloyed 1.3 0.0 1       
271012 -- light oils and preparations 1.3 1.7 3 9 9   
030213 -- pacific salmon (oncorhynchus nerka, 
oncorhynchus gorbuscha, oncorhynchus keta, oncorhynchus tschawytscha, oncorhynchus kisutch, oncorhynchus masou and oncorhynchus rhodurus) 1.3 30.0   1   1 WT/REG323/1 
 
- 39 - 
 
  Norway's top export products in 2009-2011 Access Conditions to Montenegro's 
import markets 
MFN (2012) Duty-
free in 
HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff lines 
2012 
2018 Duty-
free Dutiable 
030214 -- atlantic salmon (salmo salar) and danube 
salmon (hucho hucho) 1.3 30.0   1   1 
271112 -- propane 1.2 4.5   6 6   
271019 -- other 1.0 1.3 7 18 18   
271113 -- butanes 0.9 4.3   4 4   
381800 Chemical elements doped for use in 
electronics, in the form of discs, wafers or 
similar forms; chemical compounds doped for 
use in electronics. 0.8 0.0 2       
271111 -- natural gas 0.7 4.0   1 1   
890190 - other vessels for the transport of goods and 
other vessels for the transport of both persons 
and goods 0.6 0.0 2       
843143 -- parts for boring or sinking machinery of 
subheading 8430.41 or 8430.49 0.6 0.0 1       
271600 Electrical energy. (optional heading) 0.5 0.0 1       
292429 -- other 0.4 0.5 1 1 1   
030354 -- mackerel (scomber scombrus, scomber 
australasicus, scomber japonicus) 0.3 10.0   2 2   
851762 -- machines for the reception, conversion and 
transmission or regenera tion of voice, images 
or other data, including switching and routing 
apparatus 0.3 0.0 1       
841370 - other centrifugal pumps 0.3 4.0   11 11   
280469 -- other 0.3 1.0   1 1   
480261 -- in rolls 0.3 0.0 2       
730890 - other 0.3 0.0 3       
890120 -tankers 0.3 0.0 2       
030351 -- herrings (clupea harengus, clupea pallasii) 0.3 5.0   1 1   
Total of above 75.8   32 64 62 2 
 
Source: WTO estimates based on data provided by  Montenegro and the UNSD, Comtrade database. 
 
8. Table A1.10 shows market access for Switzerland's top 25 exports which accounted in 
2009-11 for 47% of its exports, to Montenegro's  market under the Agreement. In 2012, these 
exports were covered by 46 tariff lines in Montenegro of which 26 were duty free on an MFN basis. 
In 2012 Montenegro liberalized 15 of the remaining 20 lines followed by further liberalization of 
one line in 2015; at the end of liberalization fo ur lines (non-alcoholic beverages) are to remain 
dutiable.  
Table A1.9 Montenegro: Market access opportunities under the Agreement for 
Switzerland's top 25 exports to the world 
Switzerland's top export products in 2009-2011 Access Conditions to Montenegro's 
import markets 
Remain dutiable MFN (2012) Duty-
free in 
HS number and description of the 
product Share in 
global 
exports (%) Average 
MFN 
applied 
rate (%) No. of tariff 
lines 
2012 
2015 Duty
-free Dutiable 
300490 - other 12.0 0.0 1         
300210 - antisera, other blood fractions 
and immunological products, 
whether or not modified or 
obtained by means of 
biotechnological processes 4.5 0.0 4         WT/REG323/1 
 
- 40 - 
 
  Switzerland's top export products in 2009-2011 Access Conditions to Montenegro's 
import markets 
Remain dutiable MFN (2012) Duty-
free in 
HS number and description of the 
product Share in 
global 
exports (%) Average 
MFN 
applied 
rate (%) No. of tariff 
lines 
2012 
2015 Duty
-free Dutiable 
300290 - other 4.2 0.0 4         
910221 -- with automatic winding 3.2 4.5   1 1     
711319 -- of other precious metal, 
whether or not plated or clad with precious metal 2.6 7.0   1 1     
271600 Electrical energy. (optional 
heading) 2.6 0.0 1         
293399 -- other 1.9 1.0   3 3     
910211 -- with mechanical display only 1.6 4.5   1 1     
910121 -- with automatic winding 1.5 4.5   1 1     
711011 -- unwrought or in powder form 1.4 3.0   1 1     
292429 -- other 1.1 1.0 1 1 1     
293719 -- other 1.0 0.0 1         
300420 - containing other antibiotics 1.0 0.0 1         
841199 -- other 0.9 1.0   1 1     
294190 - other 0.8 0.0 1         
902110 - orthopaedic or fracture 
appliances 0.8 0.0 2         
300439 -- other 0.8 0.0 1         
710239 -- other 0.7 3.0   1 1     
910129 -- other 0.7 4.5   1 1     
220290 - other 0.7 30.0   4     4 
711419 -- of other precious metal, 
whether or not plated or clad with 
precious metal 0.6 20.0   1 1     
710813 -- other semi-manufactured 
forms 0.6 3.0   2 2     
901890 - other instruments and 
appliances 0.6 0.0 8         
902150 - pacemakers for stimulating 
heart muscles, excluding parts 
and accessories 0.6 0.0 1         
090121 -- not decaffeinated 0.6 15.0   1   1    
Total of above 47.0   26 20 15 1 4 
 
Source: WTO estimates based on data provided by  Montenegro and the UNSD, Comtrade database. 
 
__________