WT/REG323/2  
 
5 August 2013  
(13-4184)  Page: 1/2  
Committee on Regional Trade Agreements  Original: English  
 
 FREE TRADE AGREEMENT MONTENEGRO AND THE EFTA STATES 
(GOODS) 
QUESTIONS AND REPLIES 
 The following communication, dated 30 July 2013,  is being circulated at the request of the 
delegations of Montenegro and the EFTA States.  
 This document reproduces the questions addressed to the Parties and the responses 
submitted. 
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Questions from the Delegation of the European Union 
 
Characteristic Elements of the Agreement 
Background Information  
 
1.1.  According to paragraph 2.2 of the Factual Presentation, in addition to the 
Agreement, the Parties have signed three Agreements on Agriculture (between 
Montenegro and Switzerland and Liechten stein; Montenegro and Iceland; and 
Montenegro and Norway) which also form part of the Agreement. 
 Could the Parties clarify the level of lib eralization of those bilateral agreements? 
 
 The bilateral agreements on agriculture cover basic agricultural products and form an 
integral part of the Free Trade Agreement. These agreements provide for substantial tariff 
concessions by both sides while taking into account the respective sensitivities of the Parties, with 
due consideration given to the requirements of GATT Article XXIV. Tables 3.2-3.7 and 
Annex Tables A1.1-A1.4 of the Factual Presenta tion provide an overview of the level of 
liberalization in the area of agriculture resulting from the FTA.  
 
Reference is made to Article 1.2 b of the Agreement. 
 1.2.  The Agreement under discussion covers only trade in goods but, among the list of 
the objectives pursued, there is also th e aim "to mutually increase investment 
opportunities and create an environment co nducive to enhanced trade in services" 
(Article 1.2 b).  
a. Could the parties clarify how they will proceed? 
b. Article 25 of the Agreement states that  "the Parties shall aim at gradually 
liberalizing and opening their markets for trade in services in accordance with 
the provisions of the GATS, taking in to account on-going work under the 
auspices of the WTO.". Does it mean that  the Parties will in the future extend 
the scope of this Agreement so as to liber alize trade in services in accordance 
with Article V of the GATS? 
 The provision on investment (Article 24) principally refers to investment promotion with 
particular emphasis placed on the exchange of information. The Parties have agreed to review issues relating to investment in the Joint Committee within five years of the entry into force of the 
Agreement. WT/REG323/2 
 
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   Concerning services (Article 25), the Parties have undertaken to keep this area under review 
in the Joint Committee with a view to establishing an agreement liberalizing trade in services in accordance with Article V of the GATS.  
Reference is made to Article 26 of the Agreement 
 
1.3.  Article 26 of the Agreement states th at "The Parties shall enhance their mutual 
understanding of their government procurem ent laws and regulations with a view to 
progressively liberalizing th eir respective procurement markets on the basis of 
non-discrimination and reciprocity". 
 Do the Parties envisage to extend in the future the scope of the Agreement in 
order to also cover rules on public procurement? 
 
 The Agreement’s provisions on public proc urement are principally aimed at ensuring 
transparency and avoiding discrimination. Any possible future extension of the scope of the 
Agreement with regard to public procurement ru les would need to be considered by the Joint 
Committee, which oversees the further development of the Agreement. 
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