WT/REG337/1  
27 January 2014  
(14-0428)  Page: 1/41  
Committee on Regional Trade Agreements   
 
 
 FACTUAL PRESENTATION 
ENLARGEMENT OF THE EUROPEAN UNION TO 28 MEMBER STATES - ACCESSION OF CROATIA 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the consideration of the Enlargement of the European Union 
to 28 Member States - Accession of Croatia - 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 Maria Donner 
Abreu (tel: +41 22 739 5244). Any statistical questions arising from this report may 
be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185).  
 
 
 
 WT/REG337/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 7  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 10  
2.1   Background  Information ............................................................................................ 10 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 13  
3.1   Trade liberalizatio n between th e Parties ....................................................................... 13 
3.2   Trade with  third pa rties ............................................................................................. 15 
3.2.1   Tariff rate quotas ................................................................................................... 16 
3.3   Rules of origin .......................................................................................................... 16 
3.4   Export duties and charges,  and quantitative  restrictions ................................................. 16 
3.5   Regulatory provisions on trade in goods ....................................................................... 17 
3.5.1   Standards ............................................................................................................. 17 
3.5.2   Safeguard mechanisms ........................................................................................... 17 
3.5.2.1   Intra-Pa rty safegu ards ......................................................................................... 17 
3.5.2.2   Safeguards towards thir d parties ........................................................................... 18 
3.5.3   Anti-dumping and countervailing measures ............................................................... 18 
3.5.4   Subsidie s and State-aid .......................................................................................... 20 
3.5.5   Customs-re lated procedures .................................................................................... 20 
3.6   Sector-specific provis ions on trad e in goods ................................................................. 21 
3.6.1   Agriculture ............................................................................................................ 21 
3.6.1.1   Domestic support measures: rural development ...................................................... 21 
3.6.1.2   Domestic support measures: di rect payments and market measures .......................... 22 
3.6.1.3   Other ............................................................................................................... . 23 
3.6.2   Fisheries ............................................................................................................... 23 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 24  
4.1   General provisions on trade in services ........................................................................ 24 
4.2   General overview of the Parties' GATS schedules ........................................................... 24 
4.2.1   Euro pean Union ..................................................................................................... 24 
4.2.2   Croati a ............................................................................................................... .. 25 
4.3   Liberalization commit ments between the Parties ........................................................... 25 
4.3.1   Restrictions regardin g the movement of workers ........................................................ 26 
4.3.2   Restrictions regarding investment in agricultural land .................................................. 27 
4.4   Regulatory provisions ................................................................................................ 27 
4.4.1   Domestic regulation ............................................................................................... 27 
4.4.2   Recognition ........................................................................................................... 28 
4.4.3   Subsidies .............................................................................................................. 28 
4.4.4   Safeguards ........................................................................................................... 28 WT/REG337/1 
 
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  5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 28  
5.1   Tran sparency ........................................................................................................... 28 
5.2   Current payments and capital movements .................................................................... 28 
5.3   Exceptions ............................................................................................................... 29 
5.4   Accession and Withdrawal .......................................................................................... 29 
5.5   Institutio nal framework ............................................................................................. 29 
5.6   Disput e settlement ................................................................................................... 30 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 31 
5.8   Government  procurement .......................................................................................... 33 
5.9   Intellectual property rights ......................................................................................... 33 
5.10   Other .................................................................................................................. .. 34 
ANNEX 1 ....................................................................................................................... . 35 
ANNEX 2 ....................................................................................................................... . 36 
ANNEX 3 ....................................................................................................................... . 40 
ANNEX 4 ....................................................................................................................... . 41 
 WT/REG337/1 
 
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Key Facts 
 
Parties to the Agreement:  EU(27) and Croatia  
 
Date of Signature:   9 December 2011   
 
Date of Entry into Force:  1 July 2013   
 
Date of Notification:   25 April 2013  
 
Full implementation:   30 June 2023  
 
 
1  TRADE ENVIRONMENT 
1.1.  The Enlargement of the European Union to 28 Member States - Accession of Croatia - is the 
seventh enlargement of the European Union (f ormerly European Communities), following the 
enlargements of 1973, 1981, 1986, 1995, 2004 and 2007 (to 9, 10, 12, 15, 25 and 27 Member 
States, respectively).  
1.2.  With 4.4 million inhabitants, Croatia is  among the smaller EU countries. In 2012, its per 
capita GDP (in current prices) reached €10,300; the corresponding figure for EU(27) was €25,600. 
For world trade in goods in 2012, Croatia is ranked 60th as regards exports and 53rd as regards 
imports; for trade in services, it ranked 32nd and 60th (all excluding intra-EU trade). In the same 
year, EU(27) was first in all of these rankings, except on imports of goods where it ranked 2nd.1  
1.3.  Manufactures dominate trade of both Croatia and EU(27), at a similar rate for imports and 
exports in Croatia (around 62%), but with a higher  representation in EU exports (79% of exports 
and 54% in imports). 
1.1  Merchandise trade2 
1.4.  The late 2008-2009 world crisis has reduced significantly the Parties' trade with the world. 
While EU trade with the world has as of 2011 bypa ssed its 2008 level, that is not the case with 
Croatia: 2012 global figures show that exports are generally at the same level, but imports are still 
significantly lower. Both EU and Croatia are net importers vis-à-vis  the world since 2008, however, 
Croatia has reduced such deficit in relative terms. 
1.5.  In general, as pictured in Chart 1.1, tr ade between the Parties has grown steadily over the 
past 10 years, with two major exceptions - 2009 and 2012 - a year in which many European 
countries faced difficult economic conditions. In 2012, the EU was Croatia's first import and export market, while Croatia ranked as the EU's 30
th and 47th export and import market, respectively.3 
Throughout the period analysed, Croatia has run a tr ade deficit with the EU. In relative terms, this 
deficit has decreased from 2008 up to 2010, before rising from 2011.  
                                               
1 Trade statistics from the WTO trade pr ofile; other statistics from Eurostat.  
2 Throughout this Factual Presentation, EU data is EU(15) for 2000-2003; EU(25) for 2004-2006 and 
EU(27) for 2007-2012. 
3 UNSD, Comtrade Database, excluding intra-EU trade. WT/REG337/1 
 
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  Chart 1.1 EU and Croatia: Merchandise bilateral trade and with world 
0510152025303540
05001,0001,5002,0002,500
2000 2002 2004 2006 2008 2010 2012A. EU 2000-2012
(€ billions)
Imports from Croatia (Right Axis)
Exports to Croatia (Right Axis)
Total Imports
Total Exports
0510152025303540
0510152025
2000 2002 2004 2006 2008 2010 2012B. Croatia 2000-2012 
(€ billions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
 
 
Source: Eurostat and UN SD Comtrade database. 
 
1.6.  Chart 1.2 shows the composition of global and bilateral trade between the Parties during the 
three year period 2008-2010 by HS section. The first two categories of EU's imports from Croatia correspond to Croatia's global exports profile (machinery and minerals), while vehicles, the third 
category of Croatia's global exports (12%), only re presents 6% of the EU's bilateral imports. There 
is a difference however in the profile of Croatia' s imports from EU and EU global exports; while 
machinery is the largest category in both cases, the penetration of EU exports of minerals in 
Croatia market is twice that of in the world mark et (15 % of Croatia imports but only 7% of EU 
global exports). The third category of products - chemicals - represents a similar percentage in 
both bilateral imports and global exports (13% and 15%). WT/REG337/1 
 
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  Chart 1.2 EU(27) and Croatia: Product co mposition of merchandise trade, annual 
average (2010-2012) 
20
13
11
8 6666543338EU imports from Croatia (%)
30
21
86654333227EU's Global Imports (%)
17
14
12
997553315Croatia's Global Exports (%)
17
15
13
1097644439Croatia's imports from EU (%)
22
17
119765533310Croatia's Global Imports(%)
27
15
15775444211EU's Global Exports(%)Total: €5.4 billion Total: €1,682 billion
Total: €15.9 billionTotal: €1,534 billionTotal:  €9.4 billion
Total:  €9.8 billion
Animal 
products
Vegetables
Prepared 
foodsChemicals
PlasticsRaw hides & 
skins
Wood& articles 
of wood
Wood pulpPrecious 
stonesBase metals
VehiclesOptical
OtherMiscellaneousMinerals
Machinery FootwearTextiles
 
 
Source: Eurostat and UNSD, Comtrade database. 
 WT/REG337/1 
 
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  1.2  Trade in services and investment 
1.7.  Chart 1.3 shows EU(27) total services trade during 2000-2012; Chart 1.4 only includes 
Croatia data for 2010-2012. The EU's bilateral imports have constantly increased throughout this period, while its exports to Croatia peaked in 2008 before falling slightly. Travel represents the 
bulk of EU imports from Croatia; in its bilateral exports, the main sectors are travel and other 
business sectors. The profile of the EU's imports from Croatia is similar to Croatia's world export profile, and the same applies as regards Croatia's bilateral imports and EU global exports.  
Chart 1.3 EU(27) trade in services data with Croatia and world, 2000-2012 
0246810
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011A. EU Imports from Croatia
2002-2011
(€ Billion) 
0246810
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011B. EU exports to Croatia
2002-2011
(€ Billion) 
0100200300400500600700
2000 2002 2004 2006 2008 2010 2012C. EU imports from extra-EU
2000-2012
(€ Billion) 
0100200300400500600700
2000 2002 2004 2006 2008 2010 2012D.EU exports  to extra-EU
2000-2012
(€ Billion) 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and 
recreational servicesInsurance servicesNote: no bilateral trade in services data for 2000, 2001 and 2012.
 
 
Source: Eurostat database. WT/REG337/1 
 
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  Chart 1.4 Croatia trade in services data with EU(27) and world, 2010-2012 
02468
2010 2011 2012A. Croatia imports from EU
(€ Billion) 
02468
2010 2011 2012B. Croatia exports to EU
(€ Billion) 
0246810
2010 2011 2012C. Croatia imports from world
(€ Billion) 
0246810
2010 2011 2012D.Croatia exports  to world
(€ Billion) 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information 
servicesRoyalties and license fees
Other business services
Personal, cultural and 
recreational servicesInsurance services
 
 
Source: Croatia authorities.  
1.8.  Charts 1.5 and 1.6 present trends in foreign direct investment ("FDI") in 2000-2011. During 
this period, the EU stock of FDI in Croatia has increased constantly, with the exception of a minor fall in 2008. Flows of outward FDI from the EU to Croatia have however generally faced a 
downward trend from 2006 up to 2010, before becoming reinvigorated in 2011. Croatia's outward 
FDI to the EU are more limited, and have fluctuated since 2006. WT/REG337/1 
 
- 9 - 
 
  Chart 1.5 EU(27): FDI stock and flow with Croatia and extra-EU, 2000-2011 
01,0002,0003,0004,0005,000
2000
20012002
2003
20042005200620072008
2009
20102011FDI stock with extra-EU
(€ Billion) 
Outward Inward
051015202530
2000
200120022003
2004
2005200620072008
2009
20102011FDI stock with Croatia
(€ Billion) 
Outward Inward
0100200300400500600
2000
20012002
2003
20042005
2006
200720082009
2010
2011FDI flow with extra-EU
(€ Billion) 
Outward Inward
-2.0-1.00.01.02.03.04.05.06.0
2000
2001
2002
20032004
2005
20062007
2008
20092010
2011FDI flow with Croatia
(€ Billion) 
Outward Inward
 
Source: Eurostat. 
 
Chart 1.6 Croatia: FDI stock and flow  with EU(27) and extra-EU, 2000-2011 
012345
2000
20012002
2003
20042005200620072008
2009
20102011FDI stock with extra-EU
(€ Billion) 
Outward Inward
-5051015202530
2000
20012002200320042005200620072008200920102011FDI stock with EU
(€ Billion) 
Outward Inward
-2.0-1.5-1.0-0.50.00.51.01.52.0
2000
20012002
2003
20042005
2006
200720082009
2010
2011FDI flow with extra-EU
(€ Billion) 
Outward Inward
-1.00.01.02.03.04.05.0
2000
2001
2002
20032004
2005
20062007
2008
20092010
2011FDI flow with EU
(€ Billion) 
Outward Inward
 
Source: Eurostat and Croatia authorities. 
 WT/REG337/1 
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  Croatia applied for EU membership in 2003; accession negotiations were opened in October 
2005 and concluded in June 2011. Pending accession, trade relations between the EU and Croatia 
have been regulated on the basis of the 2001 EU -Croatia Stabilization and Association Agreement 
(SAA);
4 both the goods and the services aspects of the SAA were notified to the WTO and 
considered in the Committee on Regional Trade Agreements (CRTA).5 The EU-Croatia SAA has 
lapsed as of the date of Croatia's accession to the EU. 
2.2.  The Treaty concerning the Accession of Croatia to the EU (hereafter, "the Treaty") was signed 
on 9 December 2011. It was ratified by all of the 27 Member States (France being the first in January 2012 and Germany the last in May 2013);
6 following completion of these procedures, 
Croatia became the 28th EU Member State on 1 July 2013. Through the Treaty, Croatia has also 
acceded to the Treaty on the European Union (T EU) and the Treaty on the Functioning of the 
European Union (TFEU).7  
2.3.  The Agreement was notified to the WTO under Article XXIV:7(a) and Article V:7(a) of the 
GATS on 25 April 2013.8 The text and related legislation are available at: 
http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=OJ:L:2012:112:0095:0110:EN:PDF   
2.4.  In terms of WTO legal instruments and procedures, Article XXIV:6 procedures for the 
modification of the EU's Schedule and the withdr awal of Croatia's Schedule on 1 July 2013 were 
initiated in April 2013;9 in particular, this involved the circulation of data necessary for the 
purposes of applying Article XXIV:6 of the GATT 1994. Proposed modifications or compensatory 
adjustments will be circulated and communicated separately by the EU. As for services, as of end 
October 2013, no communication had been made concerning any modification or withdrawal of Schedules of Croatia, nor of the European Union and its Member States. 
2.5.  The Treaty provides for the integration of  Croatia into the EU single market, with the 
corollary of the application by, and to, Croati a of the EU's "four freedoms" – namely free 
movement of goods, services (including right of  establishment and freedom to provide services), 
people (including workers) and capital. In that process, the EU acquis communautaire will be 
applied by Croatia, and Croatia's participation in th e single market will be subject to transitional 
arrangements of a maximum duration of 10 years (see paragraph 4.19.   below). The conditions of Croatia's accession, and the required adjustments to existing Treaties, are set out in the Act 
concerning the conditions of accession (hereafter, "the Act"), which is Annexed to the Treaty.  
2.6.   Article 40 of the Act states that the en forcement of transition periods provided for in 
Annex V shall not lead to border controls between Member States. 
                                               
4 T h e  S A A  p r o c e s s ,  l a u n c h e d  a t  t h e  Z a g r e b  S u m m i t  i n  N o v e m b e r  2 0 0 0 ,  i s  t h e  f r a m e w o r k  f o r  E U  
negotiations with the countries of th e Western Balkans. One of its objectiv e is for SAA countries to align their 
legislative framework with the regulatory framework of  the EU as a precursor to eventual EU membership. 
Pending ratification of the SAA, its trade-related provisions were implemented through an interim agreement which entered into force in March 2002. 
5 See WT/REG142/ series. The goods aspect of th e Agreement was implemented through an Interim 
Agreement, notified in 2002 and reviewed under the old CRTA procedures. The services aspects entered into 
force in 2005; a notification was made in 2009 and the ag reement was considered under the provisions of the 
2006 Transparency Mechanism for RTAs. 
6 Details on ratification procedures can be found in: 
http://www.delhrv.ec.europa.eu/?lang=en&content=3935#course  
7 The 1957 Treaty of Rome was examined under the GATT 1947 provisions; the report on the 
examination can be found in GATT document L/778 (BIS D 6S). Examination of the services aspects of the 
European Union took place under the WTO provisions, but still under the old CRTA  procedures (see WT/REG39 
series. All the enlargements of the EU have also been examined/considered, additional details can be found in 
the WTO RTA database, http://rtais.wto.org . 
8 WT/REG337/N/1 and S/C/N/693, 25 April 2013. 
9 G/SECRET/35. WT/REG337/1 
 
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  Box 2.1 Structure of the Treaty 
A Treaty between the Member States of the Eu ropean Union and the Republic of Croatia 
concerning the accession of the Republic  of Croatia to the European Union  
B Act concerning the conditions of access ion of the Republic of Croatia and the 
adjustments to the Treaty on European Union, the Treaty on the Functioning of the 
European Union and to the Treaty establishing the European Atomic Energy Community  
 Part One  Principles  
 Part Two  Adjustments to the Treaties  
 Title I  Institutional provisions  
 Title II  Other adjustments  
 Part Three  Permanent provisions  
 Part Four  Temporary provisions  
 Title I  Transitional measures  
 Title II  Institutional provisions  
 Title III  Financial provisions  
 Title IV  Other provisions  
 Part Five  Provisions relating to the implementation of this Act  
 Title I  Adaptations to the rules of procedure of the institutions and to the rules and rules of 
procedure of the committees  
 Title II  Applicability of the acts of the institutions  
 Title III  Final provisions  
ANNEXES  
Annex I  List of conventions and protocols to which the Republic of Croatia accedes upon 
accession (referred to in Article 3(4) of the Act of Accession)  
Annex II  List of provisions of the Schengen acquis as integrated into the framework of the 
European Union and the acts building upon  it or otherwise related to it, to be 
binding on, and applicable in, the Republic of Croatia as of a ccession (referred to 
in Article 4(1) of the Act of Accession)  
Annex III  List referred to in Article 15 of the Act of Accession: adaptations to acts adopted 
by the institutions 
1. Freedom to provide services 
2. Intellectual property law 
 I. Community trade mark  
 II. Supplementary prot ection certificates  
 III. Community designs 
3. Financial services 
4. Agriculture 
5. Fisheries 
6. Taxation  
7. Regional policy and coordinati on of structural instruments  
8. Environment  
Annex IV  List referred to in Article 16 of the Act of Accession: other permanent provisions 
1. Intellectual property law  
2. Competition policy 
3. Agriculture  
4. Fisheries  
5. Customs union 
Appendix to Annex IV  
Annex V  List referred to in Article 18 of the Ac t of Accession: transitional measures 
1. Free movement of goods  
2. Free movement of persons  
3. Free movement of capital 
4. Agriculture  WT/REG337/1 
 
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   I. Transitional measures for Croatia 
 II. Transitional tariff quota fo r raw cane sugar for refining  
 III. Temporary direct payments measures for Croatia 
5. Food safety, veterinary and phytosanitary policy  
 I. Laying hens 
 II. Establishments (meat, milk, fish and animal by-products) 
 III. Marketing of seeds 
 IV. Neum 
6. Fisheries  
7. Transport policy  
8. Taxation  
9. Freedom, security and justice 
10. Environment 
 I. Horizontal legislation 
 II. Air quality 
 III. Waste management  
 IV. Water quality 
 V. Integrated pollution prev ention and control (IPPC)  
 VI. Chemicals 
Appendix to Annex V  
Annex VI Rural development (referred to in Ar ticle 35(2) of the Act of Accession) 
Annex VII Specific commitments undertaken by the Republic of Croati a in the accession 
negotiations (referred to in Article 36(1), se cond subparagraph, of the Act of Accession) 
Annex VIII Commitments undertaken by the Republic of Croatia on the restructuring of the Croatian 
shipbuilding industry (referred to in Articl e 36(1), third subparagraph, of the Act of 
Accession) 
Annex IX Commitments undertaken by the Republic of Croatia on the restructuring of the steel 
sector (referred to in Article 36(1), thir d subparagraph, of the Act of Accession) 
Protocol 
 Protocol on certain arrangements concerning  a possible one-off transfer of assigned 
amount units issued under the Kyoto Prot ocol to the United Nations Framework 
Convention on Climate Change to the Repu blic of Croatia, as well as the related 
compensation 
FINAL ACT  
I Text of the Final Act 
II Declarations 
A. Joint Declaration by the present Member States 
 Joint Declaration on the full application of the provisions of the 
 Schengen acquis  
B. Joint Declaration by various present Member States  
 Joint Declaration by the Federal Republic of Germany and the 
 Republic of Austria on the fre e movement of workers: Croatia 
C. Joint Declaration by the present Memb er States and the Republic of Croatia 
 Joint Declaration on the European Development Fund 
D. Declaration by the Republic of Croatia  
 Declaration by the Republic of Cr oatia concerning the transitional 
 arrangement for the liberalization of the Croatian agricultural land market 
III Exchange of Letters between the European Union and the Republic of Croatia on an 
information and consultation procedure for th e adoption of certain decisions and other 
measures to be taken during the period preceding accession 
 
Source: Official Journal of the European Union, L 112/97 of 24.4.2012.10 
 
2.7.  Article 4 of the Act deals with the Schengen acquis,  which entails the lifting of internal border 
controls in the EU.11 Some of the Schengen acquis  will be binding on, and applicable in, Croatia 
                                               
10 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:112:0095:0110:EN:PDF  
11 The Schengen area and cooperation are founded on the Schengen Agreement of 1985. The Schengen 
area represents a territory where the free movement of persons is guaranteed. The signatory states to the agreement have abolished all internal borders in lieu of a single external border. Here common rules and 
procedures are applied with regard to visas for sh ort stays, asylum reques ts and border controls. 
Simultaneously, to guarantee security within the Sche ngen area, cooperation and coordination between police 
services and judicial authorities have been stepped up. Schengen cooperation has been incorporated into the WT/REG337/1 
 
- 13 - 
 
  from the date of accession, while for substantial parts of it, the binding nature will be as of the 
date of accession but application will take place later, following a separate Council Decision to be taken after accession. Croatia is expected to join the Schengen area by 2015. 
2.8.  Though Croatia participates in the EU's Ec onomic and Monetary Union as from the date of 
accession, it is a "Member State with a derogation" from Article 139 of the TFEU - resulting in 
particular on the non-adoption of the E uro as its official currency (Article 5 of the Act). That 
derogation will apply until such time as the Council decides that Croatia fulfils the necessary 
conditions on inflation, public finance, exchange-rate stability and interest rates. 
3  PROVISIONS ON TRADE IN GOODS 3.1.  The EU's free movement of goods (TFEU, Part Three, Title II, Chapter 1) applies to Croatia as 
from its date of accession.  
3.2.  Given that the enlargement of the EU to 28 Members States constitutes, in terms of the WTO 
legal provisions, a customs union, the analysis of changes made to import duties and charges comprises comparing duties, charges and quantitative restrictions (QRs) pre- and 
post-enlargement tariffs with respect to (i) tr ade between the Parties to this newly enlarged 
customs union, and (b) trade by each of the Parties with third parties. Thus, the Common External Tariff (CET) applied as from 1 July 2013
12 by the newly enlarged EU(28) is compared with the 
preferential tariffs applied by both Parties in the context of their bilateral SAA as regards intra-
trade, and the MFN tariffs as regards extra-trade. 
3.1  Trade liberalization between the Parties 3.3.  Upon the accession of Croatia to the EU, trade in goods between all of the 28 EU Member 
States is fully liberalized, in accordance with the EU single market.
13 Table 3.1 shows that prior to 
its accession, Croatia benefitted from duty-free tr eatment in the EU(27) as regards 97.5% of the 
tariff lines and an average 97% of imports by the EU from Croatia during 2010-2012, under either 
MFN or the SAA preferential treatment. Follow ing accession, all the remaining dutiable lines 
became duty-free in 2013. The details provided in Ta ble 3.3 show that all additional liberalization 
granted by the EU to Croatia concerned agricultural  products of HS Sections I, II and IV; trade in 
all other HS Sections were already duty-free under  MFN only (wood and paper; and works of arts 
of Sections X and XXI, respectively) or under MFN and the SAA. 
Table 3.1 EU(27): Tariff elimination towards Croatia following its accession to the EU 
and corresponding average trade 
Duty phase-out period Number 
of lines % of total lines 
in EU's Tariff 
Schedule Value of EU's 
imports from 
Croatia  
(€ million)  
2010-2012 % of total 
EU's imports 
from Croatia 
2010-2012 
MFN (2013) 2,312 24.7 1,807.2 37.6 
Liberalized under SAA (1.1.13) 6,828 72.8 2,856.4 59.4 
Liberalized under EU(28) 236 2.5 142.1 3.0 
Total 9,376 100.0 4,805.6 100.0 
 
Note:  Based on HS 2012 nomenclature at the HS 8-digit tariff line level.  Source:  WTO Secretariat estimates based on the WTO-IDB and Eurostat (2012 value of imports).  
                                                                                                                                               
European Union (EU) legal framework by the Treaty of  Amsterdam of 1997. However, all countries cooperating 
in Schengen are not parties to the Schengen area. This is  either because they do not wish to eliminate border 
controls or because they do not yet fulfill the required conditions for the application of the Schengen acquis , 
(extracted from the EU website, available at: 
http://europa.eu/legislation_summaries/justice_freedom_security/free_movement_of_persons_asylumi
mmigration/l33020_en.htm ). 
12 The CET of 1 July 2013 is the same as that of 1 January 2013. 
13 In 2013 the EU's applied MFN tariff consisted of 9,376 lines at the HS 8-digit level, of which 89.27% 
had ad valorem  rates of duty. Of the remainder, 576 had specific duties, 201 compound rates, 59 had mixed 
rates of duty and 170 had other rates. WT/REG337/1 
 
- 14 - 
 
  3.4.  Table 3.2 indicates the additional intra-trad e liberalization that EU(27) Member States will 
benefit from in Croatia's market from accession. Compared to duty-free treatment under both the MFN and SAA preferential regimes, ac cession will bring an additional liberalization of 17.8% of the 
tariff lines which correspond to 6.9% of EU(27) imports from Croatia during 2010-2012.
14 Table 
3.3 shows that all additional liberalization gr anted by Croatia to the EU concerned mainly 
agricultural products of HS Sections I-IV; however, trade in chemicals; hides and skins and travel goods; and textiles (HS Sections VI, VIII and XI, respectively) also benefitted from additional 
liberalization through the enlargement, as compared to the previous MFN and SAA import regime. 
Table 3.2 Croatia: Tariff elimination toward s the EU(27) following its accession and 
corresponding average trade 
Duty phase-out period Number of 
lines % of total lines in 
Croatia's Tariff 
Schedule Value of Croatia's 
imports from EU  
(€ million)  
2010-2012 % of total 
Croatia's imports 
from EU 
2010-2012 
MFN (2013) 4,345 40.8 4,379.9 44.9 
Liberalized under  
SAA (1.1.13) 4,401 41.4 4,704.7 48.2 
liberalized under EU(28) 1,893 17.8 678.4 6.9 
Total 10,639 100.0 9,763.0 100.0 
 
Note:  Based on HS 2012 nomenclature at the HS 10-digit tariff line level.  Source:  WTO Secretariat estimates based on the WTO-IDB. 
Table 3.3 Tariff elimination between the Partie s following Croatia's Accession to the EU, 
by HS Section 
EU(27) tariff elimination 
HS 
Section  Croatia tariff elimination 
MFN 
average 
% MFN 
2013 Liberalized 
under SAA 
(1.1.13) Liberalized 
under 
 EU(28) MFN 
average 
% MFN 
2013 Liberalized 
under SAA 
(1.1.13) Liberalized 
under  
EU(28) 
16.6 107 755 68 I 14.8 72 459 592 
9.7 140 410 2 II 9.9 94 243 368 
10.1 23 105  III 7.2 60 32 64 
16.7 93 571 166 IV 17.3 139 255 836 
0.9 164 71  V 4.8 132 129  
4.5 289 862  VI 1.2 1,030 259 19 
4.6 60 241  VII 2.9 164 148  
3.2 38 92  VIII 4.9 59 63 11 
2.4 98 114  IX 2.0 207 77  
0.0 195   X 0.7 170 34  
8.0 39 1,120  XI 8.3 172 985 3 
8.2 2 104  XII 9.5 3 105  
4.0 32 206  XIII 6.6 77 175  
0.6 45 11  XIV 5.8 14 42  
1.8 498 455  XV 2.9 641 368  
2.3 304 1,069  XVI 3.2 872 557  
4.9 30 234  XVII 6.1 83 238  
2.4 89 233  XVIII 0.9 264 62  
2.2 4 18  XIX 8.2 5 20  
2.7 55 157  XX 5.9 80 150  
0.0 7   XXI 0.0 7   
6.5 2,312 6,828 236 Total 7.0 4,345  4,401 1,893 
 
Note:  Based on HS 2012 nomenclature at the HS 8-digit tariff line level for EU(27) and 10-digit tariff line 
level for Croatia. 
 Source:  WTO Secretariat estimates based on the WT O-IDB, and Eurostat for the EU(27) 2012 value of 
imports. 
                                               
14 In 2013, before acceding to the EU, Croatia's applied MFN tariff consisted of 10,639 tariff lines at the 
HS 10-digit level. Of these, 93.53% had ad valorem  rates of duty; 478 lines had mixed rates of duty, while 152 
and 58 respectively had compound and specific rates of duty. WT/REG337/1 
 
- 15 - 
 
  3.2  Trade with third parties 
3.5.  The EU CET is applied by Croatia as of it s date of accession; Croatia's previous schedule of 
concessions was withdrawn on 1 July 2013 and renegotiations under Article XXVIII for a modification of the schedule of concessions were initiated (see paragraph 2.4.   above). On 
17 October 2013 the EU notified its intention to extend the deadline for Members' compensatory 
withdrawals by six months, so that claiming WTO Members may withdraw concessions until 1 July 2014;
15 at its meeting of 27 November 2013, the Council for Trade in Goods agreed to such an 
extension.  
3.6.  On the basis of the notification by the EU regarding Article XXIV:6,16 the Secretariat 
estimates that around 21% of Croatia's pre-enlargement tariff lines would be breaching their bindings (see below). This calculation is based on Croatia's applied tariff at the HS 10-digit level 
(2007 nomenclature), and only for ad valorem  tariff lines.  
Table 3.4 Break of Binding in Croatia's Sche dule Predating its Accession to the EU  
No. of tariff lines breaching bindings* 1,718 
Total no. of lines 8,094 
Share of lines breaching bindings 21.2% 
 
Note:  * Includes ad valorem  lines only. 
 Based on HS 2007 nomenclature at the HS 10-digit tariff line level.   Source:  WTO Secretariat on the basis of Annex to the WTO document G\SECRET\35.   
3.7.  Table 3.5 indicates Croatia's pre- and post-enlargement applied MFN tariff rates – the latter 
being, in fact, the EU CET.17 A comparison of these two tariff profiles shows a reduction in Croatia's 
percentage of duty-free lines (from 40.8% to 24.7% ) but also a reduction in its average MFN rate, 
and an increase in the number of lines with spec ific rates for which no ad-valorem equivalents are 
available. In terms of HS Sections, average MFN rates were reduced with respect to Sections II, 
IV, V, VIII, X-XVII, XIX-XX; no change took pl ace with respect to Section XXI, while for the 
remaining Sections, the MFN average has increased. 
Table 3.5 Croatia: MFN tariffs before and after accession to the EU, by HS Section  
HS 
Section MFN 2013, Pre-EU(28) MFN 2013, EU(28) MFN average 
(%) Value of 
imports 
million €  
Average 
2010-
2012 
from 
EU(27) No. of 
lines Duty-
free Dutiable No. 
of 
lines  Duty
-free  Dutiable 2013 
Ad 
val. NAV Ad 
val. NAV Pre- 
EU(28) EU 
(28) 
I 1,123 72 688 363 930 107 444 379 14.8 16.6 366.0 
II 705 94 552 59 552 140 243 169 9.9 9.7 215.6 
III 156 60 87 9 128 23 94 11 7.2 10.1 44.9 
IV 1,230 139 834 257 830 93 348 389 17.3 16.7 610.7 
V 261 132 129  235 164 68 3 4.8 0.9 1,416.9 
VI 1,308 1,030 278  1,151  289 835 27 1.2 4.5 1,300.4 
VII 312 164 148  301 60 241  2.9 4.6 645.8 
VIII 133 59 74  130 38 92  4.9 3.2 59.4 
IX 284 207 77  212 98 114  2.0 2.4 124.3 
X 204 170 34  195 195   0.7 0.0 337.3 
XI 1,160 172 988  1,159  39 1,119  1 8.3 8.0 398.0 
XII 108 3 105  106 2 104  9.5 8.2 73.2 
XIII 252 77 175  238 32 199 7 6.6 4.0 206.2 
XIV 56 14 42  56 45 11  5.8 0.6 20.4 
XV 1,009 641 368  953 498 455  2.9 1.8 982.9 
XVI 1,429 872 557  1,373  304 1,069   3.2 2.3 1,616.9 
XVII 321 83 238  264 30 234  6.1 4.9 888.2 
XVIII 326 264 62  322 89 213 20 0.9 2.4 151.4 
                                               
15 G/L/1051 of 22 October 2013. 
16 Supra , footnote 9. 
17 No equivalent table is done for EU  given that the accession has not yet resulted in modification of the 
CET; that will take place only once Article XXIV:6 renegotiations will be completed. WT/REG337/1 
 
- 16 - 
 
  HS 
Section MFN 2013, Pre-EU(28) MFN 2013, EU(28) MFN average 
(%) Value of 
imports 
million €  
Average 
2010-
2012 
from 
EU(27) No. of 
lines Duty-
free Dutiable No. 
of 
lines  Duty
-free  Dutiable 2013 
Ad 
val. NAV Ad 
val. NAV Pre- 
EU(28) EU 
(28) 
XIX 25 5 20  22 4 18  8.2 2.2 3.0 
XX 230 80 150  212 55 157  5.9 2.7 301.0 
XXI 7 7   7 7   0.0 0.0 0.4 
Total 10,639 4,345 5,606 688 9,376  2,312  6,058  1,006 7.0 6.5 9,763.0 
 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  equivalents or ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2012 nomenclature.  Source:  WTO estimates based on the WTO-IDB and TPR databases. 
 
3.8.  In accordance with the requirements of Article XXIV:5 of the GATT 1994 and paragraph 2 of 
the Understanding on the Interpretation of Ar ticle XXIV of the GATT 1994, the Secretariat has 
circulated in document WT/REG337/2 the general incidence calculation of the Enlargement of the EU to 28 Members States. It is worth underlining that  given the timing of this exercise, it does not 
reflect any results that might be agreed under Article XXIV:6 renegotiations.  
3.2.1  Tariff rate quotas 3.9.  All of Croatia's WTO tariff quotas were withdrawn on 1 July 2013 and the relevant 
Article XXIV:6 renegotiations have commenced. Th e EU has however authorized Croatia, as of 
1 July 2013, to apply a three year autonomous import tariff rate quota (TRQ) of 40,000 tonnes of 
raw cane sugar for refining (1701.11), at an import duty of €98 per tonne.
18 Prior to accession, 
Croatia's corresponding bound tariff was €10+17.7/100kg,19 while for the EU the bound rate for 
1701.11.10 (for refining) is €33.9/100kg/net. If Article XXIV:6 renegotiations are concluded prior 
to the termination of this three-year period, and if the result includes equivalent TRQs, that quota shall be terminated, wholly or partially (Annex V, Section 4.II) 
3.3  Rules of origin 
3.10.  Given the EU single market, no rules of origin apply on trade among EU Member State; once 
a good has undergone import or export formalities within one of the EU countries, it benefits from free circulation within the Union.
20  
3.11.  If trade is being carried out by one of th e EU Member States and a third-country, including 
in the context of the EU-Turkey customs union, the relevant EU rules of origin apply.21 
3.4  Export duties and charges,  and quantitative restrictions 
3.12.  The EU single market rules also apply for export regulations.  
                                               
18 Croatia's imports under 1701.11 were 30,357 tonnes in 2010; 95,895 tonnes in 2011 and 
177,090 tonnes in 2012 - it being said that with the new HS 2012 nomenclature, the HS Subheading equivalent of 1701.11 is 1701.13 and 1701.14. 
19 Besides, a WTO TRQ of 2,500 tonnes with an in-quota rate of 5% was also bound. 
20 A number of provisions have been elaborated to ensu re that such principle applies also in relation to 
trade carried out in a period close to the da te of accession (Section 5 of Annex IV). 
21 For information on EU rules of origin of non-prefer ential or preferential nature, or applying in the 
context of the EU customs unions, see respectively: 
http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/non-
preferential/article_410_en.htm  
http://ec.europa.eu/taxation_customs/customs/custo ms_duties/rules_origin/preferential/index_en.htm  
http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/customs_unions/index_en.
htm WT/REG337/1 
 
- 17 - 
 
  3.5  Regulatory provisions on trade in goods 
3.5.1  Standards 3.13.  The EU single market requires that st andards have general application. Moreover, in 
accordance with the "Cassis de Dijon Principle", mutual recognition applies so that products 
meeting the requirements of one country within the EU can freely move between Member States, 
even when the product does not fully comply with the technical rules of the Member State of destination. There is one exception to this principle: the latter may refuse the marketing of a 
product in its current form only where it can show that this is strictly necessary for the protection 
of, for example, public safety, health or envi ronment. In that case, the Member State of 
destination must also demonstrate that its measure is the least trade-restrictive. 
3.14.  Transition periods - of a maximum duration  of two and a half years (up to end 2015) - have 
been granted to Croatia (Article 42 of the Act, and Section 5 of Annex V) regarding the complete 
fulfilment of EU food safety, veterinary (as rega rds upgrading of establishments dealing with food 
of animal origin) and phytosanitary policies for various agricultural products and/or animals. 
Croatia is to monitor continuously these questions and to submit annually a progress report to the 
Commission. Any other transitional measure n eeded for Croatia's application of the EU's 
veterinary, phytosanitary and food safety rules may be adopted by the Commission and 
implemented within three years from Croatia's accession, in accordance with conditions spelled out 
in Article 42 of the Act; as of end-November 2013, this had not taken place. 
3.15.  In accordance with Article 43 of the Act and Sections 5 and 6 of Annex V, derogations have 
also been provided allowing (i) delayed marketing in Croatia of certain EU authorized seeds; (ii) 
the exemption of veterinary checks for products transiting through the "Neum corridor" in 
Bosnia-Herzegovina;
22 and (iii) on a temporary basis and subject to conditions and limitations, 
certain fishing activities that derogate from the Mediterranean regulation EC 1967/2006.23 
3.16.  By way of derogation from the EU acquis , Croatia has been granted a maximum four year 
transition period to continue marketing domestically certain medicinal products for human application without abiding by the EU requirements of quality, safety and efficacy (Section 1 of 
Annex V and list in the Appendix, circulated as Council Notice on the Official Journal 2012/C 
119 E/01). Other medicinal products not included in the list shall comply with the acquis  from the 
date of accession.
24 
3.5.2  Safeguard mechanisms 
3.5.2.1  Intra-Party safeguards 
3.17.  Accession of Croatia to the EU is accompanied by three temporary safeguard measures: a 
general economic safeguard clause - that can be invoked by either Croatia or any Member State 
vis-à-vis Croatia -, and two specific safeguard clauses - on internal market and home affairs - 
which can only be applied by EU Member States towards Croatia. 
3.18.  Article 37 of the Act of Accession - the general economic clause - allows safeguard 
measures to be taken up to three years from accession (June 2016) in cases where difficulties 
"serious and liable to persist in any sector of the economy or which could bring about serious deterioration in the economic situation of a given area", as follows: 
a. an ex-ante authorization to take protective measures shall be requested; 
b. the Commission shall determine the protective measures and specify the conditions and 
arrangements applicable: 
                                               
22 Neum corridor is a part of the territory of Bosnia  and Herzegovina accessing the coast of the Adriatic 
Sea which divides the land territory of Croatia in two parts, separating the area surrounding the city of Dubrovnik from the rest of th e territory of the country. 
23 These refer to the use of bottom trawls by vessels until 30 June 2014 and the use of gillnets by 
subsistence fishermen up to 31 December 2014. 
24 More specifically with Directive 2001/83/EC. WT/REG337/1 
 
- 18 - 
 
  i. In cases of urgency (expressly requested), this shall be done within five working 
days of the receipt of the request; the authorized measures shall not entail border controls and shall be applicable forthwith; and 
ii. in otherwise normal cases, authorized measures may involve derogations from the 
rules of the TEU, the TFEU and the Accessi on Act to such an extent and for such 
periods as are strictly necessary in order to attain the objectives of this safeguard; priority shall be given to measures which least disturb the functioning of the internal 
market. 
3.19.  The internal market safeguard clause in Ar ticle 38, could be applied in cases of Croatia's 
failure to fulfil its accession commitments in all sectoral policies involving economic activities that take place across borders, thus causing a serious breach in the functioning of the internal market, 
or a threat to the Union's financial interests, or an imminent risk of such a breach or threat. The 
measure can be applied up to three years from accession, but it can be maintained for a longer period as long as the relevant commitments have not been fulfilled. It can be initiated by either 
the Commission or on the basis of a Member State's request.
25 Any measure taken shall be 
proportionate and priority shall be given to measures which least disturb the functioning of the internal market and, where appropriate, to the application of the existing sectoral safeguard 
mechanisms. The safeguard measures under this Article shall not be invoked as a means of 
arbitrary discrimination or a disguised restriction on trade between Member States, and shall be maintained no longer than strictly necessary and, in any case, shall be lifted when the relevant commitment has been fulfilled. The Commission shall inform the Council in good time before 
revoking the measure. 
3.20.  Finally, the serious shortcomings or any eminent risk of shortcomings regarding 
transposition or implementation of justice and home affairs related issues (Article 39) may lead to 
the imposition of safeguard measures; its application and conditions attached are similar to that of 
the internal market safeguard.  
3.21.  As of November 2013, no safeguard measure has been imposed.  
3.5.2.2  Safeguards towards third parties 
3.22.  The EU-wide regime on safeguard measures applied in accordance with the WTO Agreement 
on Safeguards took effect in Croatia on 1 July 2013, and Croatia's relevant existing national legislation lapsed on that date.
26 These changes were notified to WTO on 18 November 2013.27 
3.23.  Neither Croatia nor the EU(27) had safeguard measures in place at the time of the 
Enlargement.  
3.24.  "Special Safeguard Measures" (SSGs) on specified agricultural products applied in 
accordance with Article 5 of the WTO Agreement on  Agriculture, were also extended to Croatia, 
who had not, prior to that date, made use of the WTO SSG mechanism.  
3.5.3  Anti-dumping and countervailing measures 
3.25.  At the time of accession, Croatia repealed its national anti-dumping and countervailing duty 
legislation, and adopted the common EU legislation for anti-dumping and countervailing measures on imports from third countries. These changes were notified to WTO on 18 November 2013.
28 This 
legislation applies only to third parties, as anti-dumping or countervailing duty measures are not 
applicable in intra-EU trade. 
                                               
25 No use was made of the possibility to invoke such safeguard measures even prior to accession.  
26 EU Regulations on the imposition of safeguards against WTO members are contained in Regulation 
(EC) 260/2009; a transitional product-specific safeguards mechanism for imports from the People's Republic of China (Regulation (EC) No 427/2003) also applies, but measures imposed under the latter shall at the latest 
expire on 11 December 2013. 
27 Forthcoming. 
28 Ibid. WT/REG337/1 
 
- 19 - 
 
  3.26.  As of 30 June 2013, Croatia did not apply anti-dumping or countervailing measures. The EU, 
however, applied 109 definitive anti-dumping duti es, six price undertakings and four provisional 
duties on imports from 25 countries/customs territories, but none affecting Croatia (see Table 3.6 below and Annex 2). Upon accession, these measures  were automatically extended to Croatia; no 
notification has however been made to the relevant WTO body.  
Table 3.6 Provisional and Definitive Anti-D umping Measures applied by EU(27) on 
30 June 2013, by Country Affected 
Country/Customs Territory Cases Duties Undertakings 
Provisional Measures 
Argentina 1 1  
China  1 1  
India 1 1  
Indonesia 1 1  
Definitive Measures 
Armenia 1 1  
Belarus 1 1  
Bosnia and Herzegovina 1 1 1 
Brazil 1 1 1 
Canada 1 1  
China 52 52 2 
Chinese Taipei 4 4  
India 5 5 1 
Indonesia 4 4  
Korea, Rep. of 3 3  
Lao, PDR 1 1  
Malaysia 6 6  
Moldova, Republic of 1 1  
Morocco 1 1  
Philippines 2 2  
Russian Federation 6 6 1 
South Africa 1 1  
Sri Lanka 2 2  
Thailand 7 7  
Tunisia 1 1  
Turkey 1 1  
Ukraine 4 4  
United States  2 2  
Viet Nam 1 1  
 
Source: G/ADP/N/244/EU and http://trade.ec.europa.eu/tdi/completed.cfm . 
 
3.27.  In terms of countervailing measures, th e EU applied 11 definitive duties, two price 
undertakings and one provisional duty affecting imports from seven countries, but none affecting 
Croatia (see Table 3.7 below and Annex 3). Upon accession, these measures were automatically 
extended to Croatia; no notification has however been made to the relevant WTO body.  
Table 3.7 Provisional and Definitive Count ervailing Measures app lied by EU(27) on 
30 June 2013, by Country Affected 
Country/Customs Territory Cases Duties Undertakings 
Provisional Measures 
India 1 1  
Definitive Measures 
Canada 1 1  
China 2 2  
India 4 4 2 
Iran 1 1  
Pakistan 1 1  
United Arab Emirates 1 1  
United States  1 1  
 
Source: G/SCM/N/259/EU. WT/REG337/1 
 
- 20 - 
 
  3.5.4  Subsidies and State-aid 
3.28.  The Act provides criteria to distinguish between Croatian State-aid considered as "existing 
aid" and "new aid", within the meaning of Arti cle 108 of the TFEU. Aid granted to products 
benefitting from the Common Agricultural Policy (CAP) and the Common Fishery Policy are not 
bound by these general criteria; rather, two sets of specific criteria apply vis-à-vis aid granted to 
(i) fish and products thereof, and (ii) other agricu ltural products (Annex IV to the Act, sections 2 
on competition policy, 4 on fisheries and 3 on agriculture). 
3.29.  Article 36 of the Act deals with the mo nitoring by the Commission of all commitments 
undertaken by Croatia, including sector-specific State-aid and commitments to restructuring the shipbuilding industry and the steel sector , as defined in its Annexes VIII and IX.  
3.30.  As regards the shipbuilding industry, Croatia committed itself to the privatization of five 
shipbuilding companies on the basis of a competit ive tendering process by the date of accession. 
The restructuring plans, accepted by the Commission  prior to the signature of the Accession Act, 
included a financial contribution from the companies themselves free of State aid reaching at least 
40% of the total restructuring costs, the reduct ion and subsequent freeze of the maximum annual 
production per company for 10 years, as of 2011, wi th the possibility of trading such production 
quotas. Changes proposed by Croatia to the origin al restructuring plans as regards three of the 
five companies - an increase in the amount of restructuring aid, compensated mainly by the 
withdrawal of the possibility to trade production quotas with other companies - were accepted by the Commission in 2013. Two other disciplines of Annex VIII prohibit any new rescue or restructuring aid for the ten years following the signature of the privatization contract and require 
Croatia to recover all rescue or restructuring aid granted since 1 March 2006 to a particular 
company if certain conditions have not been met. 
3.31.  As regards restructuring of the steel sector, Croatia has informed the Commission of the 
r e c o g n i t i o n  o f  d e b t  o f  a  s t e e l  c o m p a n y ;  i f  b y  t h e  t i m e  o f  i t s  a c c e s s i o n ,  t h e  a m o u n t  d u e  i s  n o t  
reimbursed, Annex IX recognizes the right of the Commission to order Croatia to recover rescue and restructuring aid granted since 1 March 2006, with compound interest. An agreement on the 
amount (with compound interest) has been reached between Croatia and the legal successor of 
the steel company before accession. 
3.5.5  Customs-related procedures 3.32.  As from the date of accession, Croatia wi ll abide by the EU regulations concerning customs 
procedures.
29 However, in order to ensure that trade between Croatia and its former RTA partners 
around the date of accession are not disrupted by these new regulations applying from the date of 
accession, a number of provisions were adopted, inter alia (Section 5 of Annex IV to the Act):  
a. proof of origin under those RTAs is accepted  for four months from Croatia's accession; 
b. "approved exporters" under those RTAs retain such status during one year; 
c. verification of origin is conducted in accordance with the provisions in those RTAs; 
requests for verification shall be accepted up to three years from the issuance of the 
proof of origin;  
d. specific rules relating to imports of industrial products under the Croatia-Turkey RTA and 
their free circulation in the context of the EU-Turkey customs union; 
e. a list of cases where Croatian procedures (governing e.g. inward- and outward 
processing, and temporary entry) apply instead of those of the EU; and 
f. authorizations granted by Croatia relating to inward- and outward- processing, 
processing under customs control, as well as the status of "Authorized Economic 
                                               
29 Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code 
and Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code. WT/REG337/1 
 
- 21 - 
 
  Operator", shall be valid until the end of their validity or up to end-June 2014, whichever 
is the earlier. 
3.6  Sector-specific provisions on trade in goods 3.6.1  Agriculture 
3.33.  From the date of accession, Croatia will apply and benefit from the EU acquis  as regards the 
CAP, for aids under both "Pillar I" - i.e. direct payments to farmers and market-related measures and "Pillar II" - i.e. investment aids aimed at the rural community and co-financed by the Member 
States. Croatia has been entitled to benefit from EU direct payments for the whole year 2013, 
despite the accession date of 1 July 2013. The Chapter on agriculture has required a number of adaptations, in particular transition periods allowing Croatian farmers to cope and comply with EU regulations.
30 Any other transitional measure needed may be adopted by the Commission and 
implemented within three years from Croatia's accession, in accordance with conditions spelled out 
in Article 41 of the Act.  
3.34.  As regards WTO commitments limiting subsidization of agricultural products under the WTO, 
Croatia had bound its aggregate measure of support (AMS) at €134.1 million as of 2004; export 
subsidies were bound at zero. As of November 2013, the EU commitments in force are those of EU(15) Schedule CXL; it bounds EU(15) AMS at €67,159 million and export subsidies at 
€7,448 million. The certification of EU(25) and afterward EU(27) Schedule is still pending.
31 
Following the withdrawal of Croatia's Schedule, the EU intends to consolidate into the EU(28) Schedule Croatia's AMS commitment at €72,378 million. 
3.35.  Croatia's tariff commitments, including its sugar TRQ, are being renegotiated 
(see paragraphs 2.4.  3.6.  3.9.   above).  
3.6.1.1  Domestic support measures: rural development 3.36.  As from 2014, Croatia will benefit from the rural development measures available under 
European Agricultural Fund for Rural Development (EAFRD).
32 In addition, to facilitate transition, 
Article 35 and Annex VI of the Accession Act provide the disciplines regarding temporary support measures granted to Croatia for rural development. While in 2013 Croatia cannot benefit from 
EAFRD,
33 it does benefit from rural development funds granted in the context of the Instrument for 
Pre-Accession Assistance in Rural Development (IPARD), which provides assistance for the 
implementation of the CAP acquis  and contributes to the sustainable adaptation of the agricultural 
sector and rural areas in the candidate countries.  
3.37.  In the framework of the EU 2014-2020 ru ral development programme, the following has 
been agreed: 
a. Croatia has been assured of benefitting from additional rural development measures for 
the support of semi-subsistence farms undergoing restructuring and for the setting-up or 
administration of producer groups, unless similar measures/support are foreseen in the new 2014-2020 EAFRD;  
b. specific conditions will be applied to Croatia in relation to the LEADER programme, which 
grants aid to support implementation of local development strategies through 
                                               
30 Reimbursement of direct payments made in 2013 to Croatian farmers is conditional on the application 
by Croatia, before its accession, of rules identical to those applied by the EU with  respect to direct support 
schemes for farmers, as per Section 4.III of Annex V of the Act. 
31 In November 2013, the EU has indicated that it would soon proceed with the certification of the 
EU(25) Schedule, with an AMS at €71,724 million and export subsidies at €7,963 million. It also indicated that afterward it will proceed with the certification of the EU(27) Schedule, with an AMS at €72,244 million and 
export subsidies of EU(2 7) to be consolidated. 
32 This EU instrument aims at improving the competitiveness of agriculture and forestry, the 
environment and the countryside and the quality of life and the management of economic activity in rural 
areas. Its current programming period for the fund is 2007-2013. 
33 To avoid that Croatia had to prepare a rural de velopment programme for only 6 months in 2013. WT/REG337/1 
 
- 22 - 
 
  public-private partnerships (including with more than one country) in clearly designated 
rural territories;  
c. Croatia is allowed to partly use its rural development allocation (maximum: 20%) to 
complement its direct payments during the three years following its accession as defined 
in Section D of Annex VI;  
d. until June 2017, aid up to 75% of the investment required may be provided for Croatia 
to comply with the 1991 EU nitrates directives; 
e. the granting of a transition period up to January 2014, 2016 or 2018, depending on the 
requirement waived, for complying with CAP statutory management requirements (SMRs);
34  
f. after accession, Croatia may continue using IP ARD pending its readiness to make use of 
rural develop instruments common to all Member States.  
3.6.1.2  Domestic support measures: di rect payments and market measures 
3.38.  Croatia is subject to the progressive introd uction of direct payments over a 10-year period 
(2013-2022) to ease restructuring process and adaptation of its agricultural sector.  
3.39.  A fundamental mechanism used in the CAP is "cross-compliance" - i.e. tying EU support for 
farmers to compliance with standards of environmental care and public/animal/plant health and 
animal welfare - and which covers direct payments and certain rural development and wine sector 
payments. Cross-compliance combines SMRs and a set of rules on good agricultural and environmental conditions (GEAC).
35 Croatia has been granted transition periods for SMRs: 
6 months for SMRs on environment and identification and registration of animals, two and a half 
years for SMRs on public, animal and plant health and four and a half years for animal welfare 
(Annex V of the Act, Section 4.I, paragraph 4).  
3.40.  Section 4 of Annex III of the Act specifies mo difications to the following elements related to 
the EU's legislation in the agricultural sector: 
a. For the common organization of agricultural markets (Annex III, Section 4, 
paragraph 2):36  
i. regarding milk and milk products, it sets Croatia's yearly quota for the period 
1 April-31 March up to the 2014/2015 marketing year (765,000 MT), as well its additional milk quota restructuring reserve (15,000 MT) that can be released as of 1 
April 2014 (upon a decision by the Commission) to the extent that its on-farm 
consumption of milk and milk products has decreased in the period 2008-2012. It 
also specifies Croatia's reference fat content to be applied in the context of milk quotas;  
ii. regarding sugar, it sets Croatia's quota for the production of sugar up to 2014/2015 
marketing year (192,877 MT) and sets 2007/2008 as the reference year used in the definition of a "full-time refiner"; 
iii. regarding wine, it requires Croatia to submit to the Commission a draft five-year 
wine support programme for the 2014-2018 period, and fixes the EU's budget 
                                               
34 SMRs require farmers to respect established Comm unity legislation in areas of public, animal and 
plant health, environment and animal welfare. 
35 GAEC applies to protection of soil from erosion, maintenance of soil organic matter and soil structure, 
a minimum level of maintenance of agricultural land in cluding preservation of ha bitats, and protection and 
management of water. 
36 The EU's common organization of agricultural markets, specified in a 2007 Council Regulation, 
provides common rules  for managing certain agricultural markets (cereals, rice, sugar, wine, milk and milk 
products, meat, etc.) and standards for marketing agricultural pr oducts, as well as for importing and exporting 
them to/from the European Union; it also specifies na tional production quotas fo r sugar and milk. See Council 
Regulation (EC) No 1234/2007 of 22 October 2007. WT/REG337/1 
 
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  allocation for such support programme (zero in 2013, €11,885 thousand per year in 
2014-2016, and €10,832 thousand from 2017 onwards). It also incorporates particular regions of Croatia's into wine-growing areas into the EU. 
b. As regards direct support schemes for Croatian farmers under the CAP (Act, Annex III, 
Section 4, paragraph 4):
37 
i. Croatia's yearly ceiling of direct payments is progressively increased from 
€93.25 million in 2013 to €373 million in 2022; 
ii. Croatia must ensure that land which was under permanent pasture on 1 July 2013 is 
maintained under permanent pasture, in line with the GAEC; 
iii. a special national de-mining reserve, available for up to ten years after accession, is 
established; it shall be used for allocating payment entitlements under the single 
payment scheme to farmers with de-mined land returning to use for agricultural 
activities. The maximum amount allocated to this reserve is to increase progressively from €2.4 to €9.6 million in the 2013-2022 pe riod. Detailed rules are also provided 
for; 
iv. Croatia has decided to apply the single payment scheme (SPS).
38 Given that Croatia 
has also decided to avail itself of the payments available for the sheepmeat and 
goatmeat sector, beef and veal sector, and also specific support measures aimed at 
improving the quality of the milk in the dairy sector, these payments will be deducted from its overall direct payment ceiling.
39 Croatia's national ceilings have 
been set at 542,651 heads for the sheepmeat and goatmeat sector, and 
105,270 heads for suckler cow premium; 
v. in the context of the SPS, Croatia (as other Member States applying the SPS) shall 
constitute a national reserve in order to allocate payment entitlements to farmers 
finding themselves in specific situations, e.g. to farmers in specific sectors placed in 
a special situation due to the transition to the SPS, whereby the Commission's authorization is required for this particular use in 2013. When establishing the 
national reserve in first year of SPS, the amount has been established as linear 
percentage reduction of up to 20% of the national SPS ceiling; 
vi. direct payments will be introduced progressively (with annual increments) from 25% 
of the applicable level of such payments for 2013, reaching 50% for 2017 and 100% 
as of 2022; and 
vii. Croatia may, subject to authorization by the EU Commission, complement direct 
payment in the level corresponding to th e difference between the level of such a 
payment in 2022 and the level of introduction of such a payment in the year in 
question (as per Article 121 of Regulation 73/2009). 
3.6.1.3  Other 
3.41.  Other provisions also address inter alia  the takeover by the EU of Croatia's public stocks 
(Annex IV of the Act). 
3.6.2  Fisheries
40 
3.42.  The Common Fisheries Policy is addressed in Section 5 of Annex III of the Act, as follows: 
                                               
37 See Council Regulation (EC) No 73/2009 of 19 January 2009. 
38 Under the SPS, aid is no longer linked to production. As a general rule, the "Single Payment", is paid 
in the form of a single annual payment based on the value of the payment entitlements hold by the farmer. Payment entitlements are allocated to active farmers by the competent national authorities; they give no automatic right to the single payment - rather, a farmer must "activate" his payment entitlements and declare 
an equivalent number of eligible hectares in a yearly application in order to claim the single payment. 
39 Payments ceilings for these sect ors are determined differently fro m those of other Member States. 
40 While the WTO definition of agricultural products  exclude fish, this is not the case in the EU. WT/REG337/1 
 
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  a. it regulates specified access and fishing rights for Croatia and Slovenia within their 
coastal bands up to 12 nautical miles (paragraph 1), applied as from the full implementation of the arbitration award re sulting from the 2009 arbitration agreement 
concluded between the two countries;  
b. it stipulates that the European Fisheries Fund (EEF) may be used (i) to finance the 
individual fisher premium scheme in 2014 to 2015 or up to the full implementation of the 
above-mentioned award, if that comes first; and (ii) to positively discriminate in favour 
of the Croatian islands Dugi otok, Vis, Mljet and Lastovo and their enterprises as regards 
the availability of funds under the EEF (paragraph 2). 
4  PROVISIONS ON TRADE IN SERVICES 4.1.  The effects of this enlargement as regards trade in services, with respect to both intra-Party 
trade and trade with third parties, derive form the EU's four freedoms and the extension of the 
single market to Croatia. As of November 2013, the EU and Croatia schedules remain in force.  
4.1  General provisions on trade in services  
4.2.  As for the goods aspects of the EU enlargemen t, the full integration of Croatia into the single 
market and the extension of the EU's four freedoms to its territory means that the acquis communautaire will be applied by Croatia, subject to a number of transitional arrangements 
presented in the paragraphs below. Accordingly, third parties will also face the EU's single market 
disciplines being applied to their trade in services with Croatia.  
4.3.  In the absence of transitional arrangemen ts, all of the EU's four freedoms, as currently 
applied by each Member State, are extended to Croatia's investments and services suppliers, and 
vice-versa, subject to exceptions and derogations presented in Section 4.3   
4.2  General overview of th e Parties' GATS schedules 
4.2.1  European Union 
4.4.  In its GATS schedule, the EU has scheduled extensive commitments, including on financial 
services, telecommunications, transport, tourism an d professional services, subject to individual 
EU member state limitations.
41 Subsectors on which the EU did not make commitments include 
postal and audiovisual services and space tran sport services. The EU(12) had scheduled MFN 
exemptions in a number of sectors/subsectors including audiovisual services, direct non-life insurance, transport services including computer reservation services; MFN exemptions have also been scheduled by the 15 countries which acceded to the EU since 1995.  
4.5.  In its GATS schedule the EU maintains a ho rizontal "public utilities carve-out", while under 
the Agreement "activities that in the territory of  either Party are connected, even occasionally, 
with the exercise of official authority" ar e excluded from its scope (Article 62.2).  
4.6.  Individual EU Member States maintain a number of horizontal reservations concerning 
conditions for commercial presence (mode 3) in the EU GATS schedule, particularly with regard to the composition of the board of directors or permitte d type of legal entity. In all EU Member States 
except Hungary and Poland, eligibility for subsidies from the EU may be limited to juridical persons 
established within the territory of an EU Member State or a particular geographical sub-division 
thereof. Subsidies for research and development are unbound.  
4.7.  With regard to investment, horizontal limi tations are listed by about half the EU Member 
States in their EU GATS services schedule. A number of Member States have also scheduled 
reservations on real estate purchases.  
                                               
41 The GATS EU(25) schedule was certified on 18 December 2006 (S/L/286) and is contained in 
document S/C/W/273, and Add.1 and Suppl.1. For ease of reference, comparisons made between the EU's 
commitments under the Enlargement and its GATS schedule are based on the EU(25) GATS schedule. This 
consolidated schedule has not yet entered into force beca use the ratification process has not been completed in 
a number of EU Member States. The GATS EU(27)  schedule has not yet been certified.   WT/REG337/1 
 
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  4.2.2  Croatia 
4.8.  In its GATS Schedule, Croatia has made commitments in 126 of 155 services sectors. It 
scheduled extensive commitments, including on financial services, telecommunications,42 
transport, tourism, and professional services. Like the EU, Croatia has not made commitments in 
postal and audiovisual services, nor space transport services. It maintains MFN exemptions under 
Article II of the GATS in some areas of road transport and audiovisual services. In its GATS 
horizontal commitments, Croatia limits the eligibility for subsidies to legal persons established 
within Croatia. Branches can perform all kind of business activities but are not considered to be 
independent legal entities. The acquisition of real estate by services suppliers not established and incorporated in Croatia is not bound, but is permitted for companies established and incorporated in Croatia as legal persons, subject to th e approval of the Ministry of Justice.  
4.3  Liberalization commitments between the Parties 
4.9.  The EU's four freedoms apply to trade betw een the 28 Member States, subject to derogations 
and exceptions incorporated in the Treaty and Act,  as presented this Section. These apply to the 
movement of workers, acquisition of agricultural land in Croatia, maritime cabotage and 
cabotage/freight transport by road.  
4.10.  Beyond the Parties' WTO Schedules of commitments, services trade between them 
benefitted from the preferential treatment gran ted under the SAA. The liberalization under that 
agreement is extensively described in the Factual Presentation that dealt with the services aspects of the SAA (WT/REG142/5).  
4.11.  The acquisition of real estate by Croatian nationals in EU Member States, which under the 
SAA was allowed in accordance with applicable EU  law and subject to specific exceptions and 
applied in conformity with the applicable national legislations of the EU Member States, has been fully liberalized following accessi on. Croatia had reciprocated that liberalization under the SAA by 
authorizing real estate acquisition by subsidiaries of EU companies, except for agricultural land and 
areas protected under the Environmental Protection Act. While the latter restriction has been lifted with the accession of Croatia to the EU, the former remains in force for a transitional period (see 
Section 4.3.2  ).  
4.12.  As regards postal services, not committed under the GATS by both Parties, the acquis  
applies; Croatian postal services were open to se rvices suppliers of the EU, and vice-versa, as of 
1 January 2013. The acquis  opened up this sector to competition in a gradual manner; as of 2011, 
there was full market opening for 16 Member States, representing 95% of the internal postal 
market, and by 2013, that was the case for the remaining Member States (Cyprus, Croatia, 
Czech Republic, Greece, Latvia, Lithuania, Luxe mbourg, Hungary, Malta, Poland, Romania, and 
Slovak Republic).  
4.13.  As regards telecommunications, the acquis  aims to eliminate obstacles to the effective 
operation of the internal market in telecommunications services and networks, to promote 
competition and to safeguard consumer interests in the sector, including universal availability of 
modern services. As regards audiovisual, not committed under the GATS by both Parties, the acquis  requires legislative alignment with the Audiovisual Media Services Directive, which creates 
the conditions for the free movement of audiovisual media services, both traditional TV broadcasts 
and on-demand services, within the EU ("single Eu ropean TV market") and the establishment of a 
transparent, predictable and effective regulatory  framework for public and private audiovisual 
m e d i a  s e r v i c e s  p r o v i d e r  i n  l i n e  w i t h  E u r o p e a n  s t a n d a r d s .  M e m b e r  S t a t e s  m u s t  e n s u r e  t h e  
prevention of any acts which may prove detrimental to freedom of movement and trade in 
audiovisual media services or which may promote the creation of dominant positions which would  
lead to restrictions on media freedom and pluralism. Croatia will take over and implement the 
acquis  as from the date of accession. 
                                               
42 Croatia has also accepted the Reference Paper on  Basic Telecommunications Services, WTO document 
GATS/SC/130, 22 December 2000. WT/REG337/1 
 
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  4.14.  The EU acquis  on maritime transportation43 grants freedom to provide maritime cabotage 
within a Member State for Community shipowners operating ships registered in a Member State and flying its flag. The following derogations have been temporarily granted to Croatia in the Accession Act (Section 7, Annex V of the Act): 
a. until 31 December 2016, public service contracts to and between Croatian islands 
concluded prior to its date of accession may continue to apply; and 
b. until 31 December 2014, exclusive rights are granted to ships registered in, and flying 
the flag of Croatia for cruise services between Croatian ports by ships weighing less than 
650 gross tonnes. During that period, the rights of these ships to carry out cruises in ports of certain Member States may however be limited. 
4.15.  Certain temporary derogations also apply with respect to road haulage market 
(cabotage/freight transport by road): 
a. during two years, enterprises established in Croatia are excluded from cabotage in other 
Member States. During that period, upon notification of a Member State, exclusion may 
be prolonged by two years; while Member St ates may also notify their intention to 
provide full access to Croatian enterprises, that has not been the case and as of November 2013 all Member States apply these restrictions on Croatian carriers; 
b. cabotage in Croatia is only open to other Member States on a reciprocal basis - thus 
being accordingly not open to the 27 Member States; and 
c. safeguard measures may be used by those Member States which have decided to open 
their cabotage market to Croatian enterprises. Conversely, if the exclusion clause has 
been used, restrictions may be progressively reduced through the exchange of bilateral 
cabotage authorizations on the basis of a stand-still. 
4.16.  In the area of financial services, the EU acquis  and the 2006 Directive of the European 
Parliament and of the Council,
44 apply. The Directive lays down the rules on the taking-up and 
pursuit of the business of credit institutions and on the prudential supervision of such institutions, as well as provisions on freedom of establishment and freedom to provide services, relations with 
third countries and the principles of and technical instruments for prudential supervision. The 
central banks of the Member States, post office giro institutions and other bodies specific to certain Member States are excluded from the scope of th e Directive. In accordance with that, and as 
specified in Section 3 of Annex III of the Accession Act, two types of Croatian financial 
institutions
45 are excluded from the scope of the Directive.  
4.3.1  Restrictions regardin g the movement of workers 
4.17.  Section 2 of Annex V of the Act states the rights and obligations regarding the movement of 
workers. Full and free movement of Croatian workers in all the 27 Member States will take place at 
the latest on 1 July 2020. In the meantime, deroga tions from the free movement of workers in the 
EU apply as follows: 
a. from the date of accession up to 30 June 2015: 13 Member States choose to restrict the 
right of Croatian nationals to work in their territory - Austria, Belgium, Cyprus, France, Germany (except professionals with a university degree and seasonal workers), Greece, Italy, Luxembourg, Malta, Netherlands, Slovenia, Spain and the United Kingdom.
46 
Besides, Austria and Germany have the right to limit the movement of workers in case of 
                                               
43 See Council Regulation No 3577/92/EEC of 7 December 1992 applying the principle of freedom to 
provide services to maritime transport within Member States (maritime cabotage). 
44 Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006, as amended by 
Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013. 
45 They are the credit unions ("kreditne unije")  and the Croatian Bank for Reconstruction and 
Development ("Hrvatska banka za obnovu i razvitak"). In  Croatia, Credit Unions have a long tradition of 
providing banking services to cr aftsmen and other individuals.  
46 Croatian nationals employed in a member State for an uninterrupted period of at least 12 months 
enjoy free access to the labour market of that co untry but not to that of other member States. WT/REG337/1 
 
- 27 - 
 
  disruption to specific sensitive service sect ors where there is cross-border provision of 
services from Croatian-established companies in "certain regions" - which may, where appropriate, also comprise the entire territory of each of these countries, as specified in a joint declaration included in an exchange of letters annexed to the Treaty;
47 
b. from 1 July 2015 to 30 June 2018, or 30 June 2020: after a review of the restrictions 
imposed, Member States are allowed to extend restrictions for a further period. While the Council is to review the report by the Commission, the decision to extend the 
restriction rests with the Member State; upon  Croatia's request, an additional review 
may be held. The transitional arrangement should in principle come to an end in 2018, but may be extended - upon notification to the Commission - for a further two years in those Member States facing serious disturbances in the labor market or a threat thereof; 
c. as from 1 July 2020, freedom of movement will be complete; and 
d. finally, during the time any of the above-mentioned measures are applied: (i) a stand-
still clause prevents the access conditions of Croatian workers to the EU Member States 
f r o m  b e c o m i n g  m o r e  r e s t r i c t i v e  t h a n  t h a t  p r e v a i l i n g  o n  t h e  d a t e  o f  s i g n a t u r e  o f  t h e  
Accession Treaty (i.e. December 2011), and (i i) Croatian workers shall be preferred over 
workers of third countries as regards access to labor markets of Member States. 
4.18.  Croatia may apply restrictions to other EU workers that are equivalent to the national 
measures applied by the respective Member State. The Croatian Government has enacted the temporary application of the rules of employment of  citizens of EU Member States and their family 
members, which came into force on 1st of July 2013,
48 with respect to the 13 Member States 
which apply national measures on the work of Croatian citizens and their family members, or 
measures resulting from bilateral agreements (see the list of countries in 4.17.   above).  
4.3.2  Restrictions regarding in vestment in agricultural land 
4.19.  Restrictions which existed on 31 December 2002 under Croatia's national law (Article 12 of 
the Act) limiting direct investment by certain third parties is however authorized vis-à-vis other 
Member States. In particular, this restriction limits for seven years (up to mid-2020) the 
acquisition of agricultural land by nationals of other Member States, of a party to the European 
Economic Area (EEA) or by legal persons formed in  accordance with the law of a Member State or 
an EEA party, while also (i) providing a stand-still as regards the date of signature of the Treaty of Accession, and (ii) ensuring at least equal treatment between nationals/legal persons of a Member 
State and of a third country (Section 3 of Annex V of the Act). A review of this transitional 
measure is to be held around mid-2016, which may lead to it being shortened or terminated. Conversely, the 7 year transition period may, upon a Croatian request and a Commission decision, 
be extended (to selected areas) by an extra three years in cases of serious disturbances or threat 
thereof. Croatia commits itself, in a declaration included in an exchange of letters annexed to the Treaty, that in case such an extension is granted, it will "endeavour to carry out the necessary 
steps to liberalize the acquisition of agricultural land in the specific areas before the expiry of the 
three-year period".  
4.4  Regulatory provisions  4.4.1  Domestic regulation 
4.20.  No specific mention is made to issues related to domestic regulation in the Accession 
Treaty; thus, the acquis  applies in full.  
                                               
47 In Germany, construction and related branches, indust rial cleaning and services of interior decorators. 
In Austria, horticultural service activities, cutting, shaping and finishing of stone, manufacture of metal 
structures and parts of structure, Construction, including related branches, security activities, industrial 
cleaning, home nursing, social work an d activities without accommodation. 
48 Official Gazette of the Republic of Croatia, No. 79/13. WT/REG337/1 
 
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  4.4.2  Recognition 
4.21.  A 2005 EU Directive provides automatic recognition of training qualifications based on the 
coordination of minimum training conditions for the following professions: doctors, nurses responsible for general care, dental practitioners, veterinary surgeons, midwives, pharmacists and 
architects.
49 The automatic recognition applies as follows:50 
a. either the national of a Member State fulfills the minimum training conditions for each of 
these professions, including the minimum duration of studies. The formal qualifications 
conforming to the directive issued by Member States (listed in Annex V) enable holders 
to practice their profession in any Member State; or 
b. alternatively, even if the formal qualifications for these professional activities held by 
nationals of Member States do not satisfy al l the training requirements described, and 
without prejudice to the specific acquired  rights of the professions concerned - 
particularly of architects - each Member State has to recognize these qualifications as sufficient proof provided the qualifications attest to the successful completion of training 
that began before a reference date and is accompanied by evidence of the holder having 
devoted at least three consecutive years to the activities in question over the preceding five-year period. 
4.22.  The extension of this automatic recognition is dealt with Section 1 of Annex III of the 
Accession Act. With Croatia's accession, recognition of professional qualification of nationals of EU 
Member States is extended for qualifications in the afore mentioned professions if these were issued by the former Yugoslavia, or the training  had commenced in Slovenia before 25 June 1991 
or in Croatia before 8 October 1991. However, acquired rights shall not apply to a number of 
midwifery qualifications obtained in Croatia before 1 July 2013.  
4.4.3  Subsidies 
4.23.  Disciplines on subsidies are those referred to in Section 3.5.4 of this document, as per 
Annex IV, point 2 on competition policy, which refers to state aid policy and transitional arrangements. EU competition policy regulate good and services equally. 
4.4.4  Safeguards 
4.24.  The safeguard rules are those applying in general to all aspects related to the enlargement 
of the EU to 28 Member States, as referred to in paragraphs 3.18.  -3.20.   above. As of November 2013, no safeguard measure has been imposed.  
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 5.1.  Transparency rules are in accordance with the EU acquis . 
5.2  Current payments and capital movements 
5.2.  Restrictions on the movement of capital as well as payments between Member States, and 
between Member States and third countries, shall be  prohibited. In accordance with Article 64.1 of 
the TFEU, a Member State may maintain some pre-existing restrictions applicable to third 
countries. In the case of Croatia (Article 12 of th e Act), restrictions which existed on 31 December 
2002 under its national law in respect of the move ment of capital to or from third countries 
involving direct investment - including in real estate - establishment, the provision of financial 
services or the admission of securities to capital markets remain however authorized.  
                                               
49 Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005, see 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:255:0022:0142:en:PDF . 
50 Information viewed at: 
http://europa.eu/legislation_summaries/internal_market/living_and_working_in_the_internal_market/c11065_
en.htm . WT/REG337/1 
 
- 29 - 
 
  5.3.  No other specific measure is provided for Croatia in respect of capital and payments;51 thus, 
the EU's general objective of achieving to the gr eatest extent possible free movement of capital 
between Member States and third countries applies, as well as the possibility that the Council, acting in accordance with a special legislative procedure and unanimously, may adopt measures 
which constitute a step backwards in Union law as regards the liberalization of the movement of 
capital to or from third countries. 
5.3  Exceptions 
5.4.  The possibility provided in Article 49 of the Act for Croatia to request temporary derogations 
other than those provided for in the 2011 Treaty and Act has not been invoked by Croatia.  
5.4  Accession and Withdrawal 5.5.  Accession to the European Union is regulated by Article 49 of the TEU, which states that any 
European State which respects the European Union values and "is committed to promoting them 
may apply to become a member of the Union". This application, to be addressed to the Council, shall be notified to the European Parliament and national Parliaments. The Council shall act 
unanimously on that, after consulting the Commission and after receiving the consent of the 
European Parliament, which shall act by a majority  of its component members. The conditions of 
admission and any adjustments to the EU Treaties  shall be the subject of  an agreement between 
the Member States and the applicant State, which shall be submitted for ratification by all the 
contracting States in accordance with their respective constitutional requirements. 
5.6.  Any possible withdrawal from the European Union is not regulated by the Accession Treaty; 
the normal EU disciplines of Article 50 of the TEU a pply. Disciplines provide for a notification to be 
made to the Council, and the negotiation of a withdrawal agreement between the EU and that 
Member State, that is to be approved by the Co uncil acting by qualified majority, after obtaining 
the consent of the European Parliament. The EU Tr eaties would cease to be applicable to that 
State from the date of the agreement or, failing that, within two years of the notification unless 
the State and the Council both agree to extend this period. A former Member State seeking to rejoin the European Union would be subject to the same conditions as any other applicant country. 
5.5  Institutional framework 
5.7.  Throughout the interim period between the signature of the Treaty until its accession, 
Croatia, as an acceding country, had active observer status in the European Institutions with the established purpose of allowing it "to become familiar with the working methods of the EU 
institutions and to be involved in the decision-making process." 
5.8.  Through the Treaty, the rights and obligations  of EU Member States, as well as the powers 
and jurisdiction of the institutions of the Union, are extended to Croatia (Article 2).  
5.9.  Adjustments to the TEU, TFEU and EAEC Treaties are addressed in Articles 9-11 of the Act, 
providing for the following: 
a. one Judge from Croatia will participate in the EU's Court of Justice and another in the 
General Court, bringing the total number of Judges to 28; they were both appointed on 1 
July 2013;  
b. the Board of Directors of the European Investment Bank is enlarged to 29 directors and 
19 alternate directors, with one director nominated by Croatia and four alternates 
nominated by common accord of Bulgaria, the Czech Republic, Croatia, Cyprus, 
Hungary, Malta, Poland, Slovenia and the Slov ak Republic. Croatia's contribution to the 
Bank's capital was set at €854.4 million; and 
c. the EAEC Scientific and Technical Committee will be enlarged to include representatives 
from Croatia. 
                                               
51 The Parties have indicated that "on the basis of the information collected before the accession, no 
other restrictions authorized under Article 64.1 of the TFEU should exist." WT/REG337/1 
 
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  5.10.  Specific institutional provisions are also provided for in Articles 19-26 of the Act. In practical 
terms, and at the highest political level, Croati a accedes to the decisions and agreements of the 
Heads of State or Government of the Member States, or their representatives, meeting within the European Council, under a new weighting of votes. The current order in which the presidency of 
the Council is held remains unchanged, with a review foreseen in 2017; no Croatian presidency is 
scheduled at least up to the first half of 2020.  
5.11.  Croatia representation in EU bodies is as follows: 
a. a temporary allowance of 12 seats for Croatia in the current European Parliament (EP) 
term, up to 2014. For the 2014-2019 term, the Council decided in June 2013 on an EP composition in line with the TEU - i.e. a maximum of 750 Members of the European Parliament (MEPs), plus the President; Croatia has been granted a total of 11 MEPs. This 
decision will be revised again before the 2019-2024 term upon an initiative of the 
European Parliament to be presented before the end of 2016.
52  
b. one Croatian national will join the EU Commission - on 1 July 2013, the EU appointed 
Mr. Neven Mimica as Commissi oner of Consumer Policy;53  
c. a Croatian national will join the Court of Auditors; the appointment was made by the 
Council on 9 July;54 
d. enlargement of the Economic and Social Co mmittee and the Committee of the Regions to 
include Croatian nationals; 
5.12.  As regards the allocation of votes among Member States (Article 20): 
a. as of 1 July 2013:55  
i. where the Council acts on the basis of a Co mmission proposal, the qualified majority 
is cast by at least 15 Member States representing at least 62% of the population of the EU; 
ii. where the Council does not act on the basis of a Commission proposal, the qualified 
majority threshold is the same except that the votes in favour shall be cast by at least 19 Member States;  
b. as from November 2014, the qualified majority  is modified to 16 and 21 Member States 
under a. and b. respectively, representing at least 65% of the EU population. 
5.13.  Croatia's financial contribution to different EU bodies, institutions and funds, and the 
management and implementation of budgetary co mmitments granted by, or in the benefit of, 
Croatia are dealt with in Articles 27-35 of the Act. 
5.6  Dispute settlement 5.14.  Neither the Treaty nor the Act of Accession provide for dispute settlement procedures 
specific to the Enlargement; rather, any disputes involving Croatia and EU Member States 
collectively or individually are to be settled in accordance with the relevant EU provisions. 
                                               
52 See EUCO 110/1/13 REV 1 in  
http://register.consilium.europa.eu/pdf/en/13/st00/st00110-re01.en13.pdf . 
53 See http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/genaff/137680.pdf . 
54 See http://eca.europa.eu/portal/pls/portal/docs/1/22846906.PDF . 
55 As of 1 July 2013, votes in the Council is set at 260 votes in favour of the act out of a total of 352. 
Croatia has 7 votes, like Denmark, Ir eland, Lithuania, Slovakia and Finl and; Germany, France, Italy and the 
United Kingdom have 29 votes; Spain and Poland have  27 votes; Romania has 14 votes and Netherlands 13; 
Belgium, Czech Republic, Greece, Hungary and Portugal have 12 votes; Austria, Sweden and Bulgaria have 
10 votes; Cyprus, Estonia, Latvia, Luxembourg and Slov enia have 4 votes and finally Malta has 3 votes. See 
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/genaff/137537.pdf . WT/REG337/1 
 
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  5.7  Relationship with other agreements concluded by the Parties 
5.15.  As per Article 6 of the Act, all RTAs conclu ded by the EU become binding on Croatia as from 
1 July 2013. Croatia will become, or is in the process of becoming, party to the European Union’s trade agreements with third parties, as listed in Table 5.1 below. As of November 2013, no such 
Protocols had yet been concluded; the EU has indicated that the most advanced are the Protocols 
to the SAA with the Western Balkan countries (see Annex 4 for detailed information). For all of them with the exception of Bosnia Herzegovin a (i.e. Albania, Montenegro, Former Yugoslav 
Republic of Macedonia and Serbia), an agreement on the adaptation was found and the 
Enlargement Protocols have been drafted. Pendin g the conclusion of all Enlargement Protocols, 
Croatia will apply the provisions of the relevant agreements (with some adjustments),
56 with the 
exception of the EU-Switzerland bilateral ag reement on the free movement of persons.  
5.16.  In the EU-Switzerland bilateral agreement on the free movement of persons, each Member 
State is also a party alongside the European Union, thus, it has to be adapted to each new party through additional negotiations. These negotiations were concluded in August 2013 and  transition 
periods have been granted enabling Switzerland, under certain conditions, to enforce quantitative 
limits in respect of Croatian workers.
57 The results of the negotiations are yet to be adopted by the 
Swiss Parliament, following which they may be subject to popular referendum. The time-frame 
involved may be up to two years pending which, as of the date of signing, Switzerland will provide 
provisional access to its labour market for Croatian citizens based on its national legislation, before the entry into force of the transitional arrangements contained in the Protocol.   
5.17.  Croatia has also acceded to the EU-ACP Cotonou Partnership Agreement, as indicated in the 
same Article 6 of the Act. The process of Croa tia's accession to the EEA is ongoing. Precise 
measures on free movement of workers that might be applied vis-à-vis Croatia in the context of 
the EEA are yet to be defined, within the general framework of possible restrictions during a 
transitional period of seven years ending on 30 June 2020.  
5.18.  The new member of the EU is also obliged to terminate all of its free trade agreements with 
third parties as of 1 July 2013 at latest. Thus, at the time of the accession of Croatia to the EU, 
three RTAs ceased to exist (EU-Croatia, goods and services; EFTA-Croatia and Turkey-Croatia, 
both goods only) and Croatia will withdrew fr om the 2006 Central European Free Trade Agreement 
(CEFTA), now composed of Albania, Bosnia and Herzegovina, Moldova, Montenegro, Serbia, the 
Former Yugoslav Republic of Macedonia and UNMIK/Kosovo. WTO Members were informed of the 
above by the EU on 29 April 2013 (WT/REG/GEN/N/6).  
Table 5.1 EU(28): Participation in other regional trade agreements (notified and 
non-notified, in force), as of 20 December 2013 
RTA Name Date of 
entry into 
force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
EU - Central America * Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
EU - Colombia and Peru 01.03.13** Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
EU - Eastern and Southern 
Africa States Interim EPA 14.05.12 Goods 2012 GATT Art. XXIV 
EU - Republic of Korea 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
EU - Serbia 01.02.10 
01.09.13 Goods 
Services 2010 
2013 GATT Art. XXIV & GATS Art. V 
EU - Papua New Guinea / Fiji 20.12.09 Goods 2011 GATT Art. XXIV 
EU - Cameroon 01.10.09 Goods 2009 GATT Art. XXIV 
EU - Côte d'Ivoire 01.01.09 Goods 2008 GATT Art. XXIV 
EU - CARIFORUM States EPA 01.11.08 Goods & Se rvices 2008 GATT Art. XXIV & GATS Art. V 
EU - Bosnia and Herzegovina 01.07.08 Goods 2008 GATT Art. XXIV 
                                               
56 Mainly modifications relate to the increase or creation of new TRQs for agricultural products, 
processed agricultural products and fi sh and fisheries products; the addition of the Croatian commitments for 
services and Croatian entities for Go vernment Procurement; ru les of origin and other technical adjustments. 
57 See  
https://www.bfm.admin.ch/content /bfm/fr/home/dokumentation/med ienmitteilungen/2013/ref_2013-08-
28.html  WT/REG337/1 
 
- 32 - 
 
  RTA Name Date of 
entry into 
force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
EU - Montenegro 01.01.08 
01.05.10 Goods 
Services 2008 
2010 GATT Art. XXIV 
GATS Art. V 
EU - Albania 01.12.06 
01.04.09 Goods 
Services 2007 
2009 GATT Art. XXIV 
GATS Art. V 
EU - Algeria 01.09.05 Goods 2006 GATT Art. XXIV 
EU - Egypt 01.06.04 Goods 2004 GATT Art. XXIV 
EU - Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
EU - Chile 01.02.03 
01.03.05 Goods 
Services 2004 
2005 GATT Art. XXIV 
GATS Art. V 
EU - Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
EU - San Marino 01.04.02 Goods 2010 GATT Art. XXIV 
EU - Former Yugoslav Republic of Macedonia 01.06.01 
01.04.04 Goods 
Services 2001 
2009 GATT Art. XXIV 
GATS Art. V 
EU - Mexico 01.07.00 
01.10.00 Goods 
Services 2000 
2002 GATT Art. XXIV  
GATS Art. V 
EU - Israel 01.06.00 Goods 2000 GATT Art. XXIV 
EU - Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
EU - South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
EU - Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
EU - Palestinian Authority 01. 07.97 Goods 1997 GATT Art. XXIV 
EU - Faroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
EU - Turkey 01.01.96 Goods 1995 GATT Art. XXIV 
European Economic Area 
(EEA) 01.01.94 Services 1996 GATS Art. V 
EU - Andorra 01.07.91 Goods 1998 GATT Art. XXIV 
EU - Syria 01.07.77 Goods 1977 GATT Art. XXIV 
EU - Norway 01.07.73 Goods 1973 GATT Art. XXIV 
EU - Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
EU - Switzerland - 
Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
EU – Overseas Countries and 
Territories (OCT) 01.01.71 Goods 1970 GATT Art. XXIV 
EC Treaty 01.01.58 Goods 
Services 1957 
1995 GATT Art. XXIV  
GATS Art. V 
 Source: WTO Secretariat.  
* The notifications made in February 2013 (see WT/R EG332/N/1 and S/C/N/680) stated that: "Provisional 
application of the Agreement by all si gnatory parties is expected in the course of the second quarter 2013"; 
Further notifications to confirm the dates of entry into force between the EU and Central American countries are awaited. 
** Dates of entry into force differ: EU-Peru as indicated in the table, EU-Colombia on 1 August 2013. 
 
5.19.  Article 6 of the Act also regulates the Parties' existing product-specific import controls 
arrangements. These concern EU arrangements with certain countries that are not WTO Members, and Croatia's fisheries agreement. Thus: 
a. For the bilateral textiles agreements and arrangements - with Belarus and the 
Democratic People's Republic of Korea -
58 the EU has indicated that following an 
examination of the utilization of QRs to take account of the accession of Croatia to the 
EU, it was determined that the amount of the QRs not used is large enough to 
comfortably accommodate Croatian imports from these countries. Therefore, the EU has decided not to increase the textiles QRs; 
b. the QRs applied by the EU on imports of steel and steel products from Kazakhstan shall 
be adjusted on the basis of relevant imports of Croatia from that country; the EU has 
indicated that "according to the information received from the Croatian State Office for Trade Policy, during the last three years Croatia did not have any imports from 
                                               
58 A textile arrangement between the EU and Serbia previously in force has been terminated with the 
entry into force, on 1 Septem ber 2013, of the EU-Serbia SAA.  WT/REG337/1 
 
- 33 - 
 
  Kazakhstan of steel products within the scope of the Council Regulation (EC) 
No1340/2008. Therefore, no modification of the quota level is envisaged"; and  
c. Croatia's fisheries agreements will be managed by the EU pending their expiry, without 
affecting Croatia's rights and obligations thereunder. In accordance with Article 6:8 of 
the Act, it is for Council, acting upon a Commission proposal, to maintain provisionally 
rights and obligations for Croatia, which result from such international fisheries agreements pending their expiry. Croatia shall in particular withdraw from international 
fisheries agreements and organizations to which the EU is also a party, unless its 
membership relates to matters other than fisheries. Accordingly, in July 2013 the Food and Agriculture Organization (FAO) was informed by Croatia of its withdrawal from the International Convention for Atlantic Tunas; as regards the General Fisheries 
Commission for the Mediterranean, where competences are shared between the EU and 
its Member States, Croatia accepted the currently applicable declaration of competences and so informed the FAO. 
5.8  Government procurement 
5.20.  Up to its accession to the EU, Croatia had an observer status in the WTO Government 
Procurement Agreement. As for other aspects, Croatia's accession to the EU has resulted in 
Croatia's adoption of the EU acquis  in this area. On 27 June 2013, the Committee on Government 
Procurement adopted a decision
59 approving a modification to the European Union’s GPA schedules 
to extend the coverage of the Agreement on Government Procurement to Croatia effective 1 July 2013, the date of Croatia’s EU accession.
60  
5.9  Intellectual property rights 
5.21.  Existing EU legislation in the area of intellectual property rights is adapted as follows, as per 
Section 2 of Annex III to the Act of Accession: 
a. the protection of a Community trade mark or design registered, protected or applied for 
before 1 July 2013 is extended to the territory of Croatia;61 and 
b. a supplementary protection certificate (SPC ) will be granted by Croatia for plant 
protection or medicinal products, if these were protected by a valid basic patent at the 
date of accession and the first marketing approval was obtained after 1 January 2003, provided that the application for a certificate is lodged within six months from the date of accession.
62 
5.22.  A specific mechanism is also established to protect the rights of a medicinal product patent 
or SPC holder (or the holder's beneficiary), filed in a Member State but which could not, at that time, be protected in Croatia, even if the product was marketed in Croatia by the holder or with its 
consent. The mechanism aims at preventing parall el imports - from Croatia into EU markets - of 
such products (Section 1 of Annex Iv of the Act). 
5.23.  Geographical designation of one Croatian aromatized drink based on wine products - 
"Samoborski bermet" - is recognized and protected (Section 4, paragraph 1, of Annex III to the 
Act), in accordance with a 1991 Council Regulation  laying down general rules on the definition, 
description and presentation of aromatized wines, aromatized wine-based drinks and aromatized wine-product cocktails.
63 
5.24.  Similarly, six geographical indications (GIs) - three for fruit spirit, and one each for liqueur, 
maraschino and other spirit drinks - are register ed and protected (Section 4, paragraph 3, of 
                                               
59 GPA/118. 
60 GPA/M/52, para. 3.3. See also WT/Let/887.   
61 Trademarks and designs in accordance with Council Regulations (EC) Nos 207/2009 of 26 February 
2009 and 6/2002 of 12 December 2001, respectively. 
62 SPC for plant protection products and for medicinal products in  accordance with Regulations of the 
European Parliament and of the Council (EC) Nos 1610/96 of 23 July 1996 and 469/2009 of 6 May 2009, 
respectively. 
63 Council Regulation (EEC) No 1601/91 of 10 June 1991. WT/REG337/1 
 
- 34 - 
 
  Annex III to the Act), in accordance with a 2008 Co uncil Regulation on the definition, description, 
presentation, labelling and protection of geograph ical indications and repealing Council Regulation 
(EEC) No 1576/89.64  
5.25.  Croatia has been granted a one year transition period to introduce the EU acquis  as regards 
the application for registration of GIs. Besides, GIs and designations of origin existing at the date 
of accession will remain domestically protected for one year (Section 4, title I, paragraph 2 of Annex V of the Act). Other provisions provide an in principle protection in the EU of previously 
announced GIs from Croatia, provided the required information is submitted by Croatia within one 
year from accession; cancellation of GIs cannot take place in respect of existing protected wine names unless the Commission decides by 30 June 2017 to cancel protection in accordance with the provisions and conditions under Articles 195.4 and 118(n) on the EU common organization of 
agricultural markets.
65 
5.10  Other 5.26.  Annex I to the Act specifies the conventions and protocols to which Croatia accedes; they 
refer in particular to elimination of double taxation  of associated enterprises, protection of the EC's 
financial interests, fight against corruption, customs co-operation, diving disqualifications and assistance in criminal matters.  
5.27.  As regards taxation, the EU acquis  addresses both direct and indirect taxation. For the 
latter, it covers the scope, definitions and principl es of value added taxes (VAT), and also excise 
duties on tobacco products, alcoholic beverages and energy products. Croatia will implement the acquis  as from accession; very few derogations, some  of which time-bound, apply with respect to 
VAT. While Croatia has also been granted a transition period up to December 2017 to apply lower 
excise duties on cigarettes than under the acquis , by 1 January 2014 they shall at least reach 
€77 per 1,000 cigarettes (Sections 6 of Annex III and 8 of Annex V to the Act). 
5.28.  The EU's competition policy acquis  applies also to Croatia. 
5.29.  Other issues addressed in the Accession Tr eaty and Act relate to the movement of persons 
across borders, including the Schengen acquis ; and environmental legislation, including trade in 
greenhouse gas emissions allowances, air and water quality, waste management, etc.  
                                               
64 Regulation (EC) No 110/2008 of the European Parliament and the Council of 15 January 2008. 
65 Supra , footnote 36. WT/REG337/1 
 
- 35 - 
 
  ANNEX 1 
 
1. A comparison of MFN and preferential tari ffs applied between the Parties before the 
enlargement from EU(27) to EU(28) and the post  enlargement MFN tariff by total, agricultural 
(WTO definition) and non-agricultural products, is presented in Tables A1.1 and A1.2 below.  
2. Croatia's overall MFN tariff in January 2013 was 7.0%, with the average rate for agricultural 
products being around three and a half times that for non-agricultural products (14.9% and 
4.2%). Lower averages applied as regards imports from EU(27) under the SAA, though the 
difference between tariffs on agri cultural and non-agricultural products remained: the relative 
margins of preference (MOP) under the SAA were 19% and 98% for agricultural and non-agricultural products, respectively. As a resu lt of becoming a Member State of the EU, all 
intra-Party trade was fully liberalized as of 1 July 2013. In terms of trade with third-parties, 
Croatia's overall average MFN tariff fell to 6.5%; taken separately, however, MFN average rates for 
non-agricultural products increased due in particular to the higher number of tariff lines with 
specific rates in the EU tari ff as compared to Croatia's.
1 
Table A1.1 Croatia: Indicators of ta riff rates on imports from EU(27), 2013  
Origin of 
goods 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 (1 Jan) 7.0 11.9 40.8 14.9 17.7 15.8 4.2 8.5 49.8 
EU-Croatia 
SAA (1 Jan)  3.2 18.3 82.2 12.1 18.9 35.7 0.1 6.5 98.8 
EU(28)(1 Jul) 6.5 8.7 24.7 14.7 18.5 18.7 4.3 5.9 26.4 
a WTO Definition. 
 Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  equivalents or ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2012 nomenclature. Croatia's data is on HS 10-digit, while EU(28) data is on 
HS 8-digit. 
 Source:  WTO estimates based on the WTO-IDB and TPR databases. 
 
3. For the EU, no change of MFN tariffs is reflected in the table below as the accession of 
Croatia has not modified the EU MFN tariff. As regards intra-Party trade, the relative MOP during 
the first six months of 2013 under the SAA for Croa tian exports was 92% and 98% for agricultural 
and non-agricultural products, respectively; as from 1 July, all trade is fully liberalized. 
Table A1.2 EU's Indicators of tari ff rates on imports from Croatia  
Origin of 
goods 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 (1 Jan) 6.5 8.7 24.7 14.7 18.5 18.7 4.3 5.9 26.4 
EU-Croatia 
SAA (1 Jan)  0.3 14.1 97.5 1.2 17.2 92.3 0.1 8.4 99.0 
EU(28)(1 Jan) 6.5 8.7 24.7 14.7 18.5 18.7 4.3 5.9 26.4 
a WTO Definition. 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  equivalents or ad valorem  parts of 
alternate rates are included. 
 Based on the HS 2012 nomenclature.  Source:  WTO estimates based on the WTO-IDB and TPR databases. 
                                               
1 Besides, EU data is at the 8-digit level and Croati a at the 10-digit level. WT/REG337/1 
 
- 36 - 
 
  ANNEX 2 
EU(27) ANTI-DUMPING DUTIES IN FORCE AS OF 30 JUNE 2013 
Table A2.1 Provisional Anti-Dumping Measures  in force in EU(27) as of 30 June 2013 
Country/ 
Customs 
Territory Product, 
investigation ID number Provisional measures 
Argentina Biodiesel AD593 AR Duties imposed 28.05.2013  
China  Solar panels (crystalline silicon photovoltaic 
modules and key components) AD590 CN Duties imposed on 05.06.2013  
India Stainless steel wires AD591 IN Duties imposed on 08.05.2013 
Indonesia Biodiesel AD593 ID Duties imposed on 28.05.2013  
Table A2.2 Definitive Anti-Dumping in Measur es in force in EU(27) as of 30 June 2013 
Country/ 
Customs 
Territory Product, 
investigation ID number Measure(s) Date of imposition and publication 
reference 
Original Latest Extension 
Armenia Aluminium Foil 
AD 534 - AR Duties 06.10.09 
L 262, p.1  
Belarus Welded tubes and pipes, of 
iron or non-alloy steel 
AD523BY Duties 19.12.08, 
L 343, p.1  
Bosnia and 
Herzegovina Zeolite A powder 
AD553 BA Duties 
 
Undertakings 14.05.11 
L 125, p. 1 
14.05.11 
L 125, p. 26  
Brazil Aluminium Foil 
AD 534 - BR Duties 
 
Undertakings 06.10.09 
L 262, p.1 
06.10.09 
L 262, p.50  
Canada Biodiesel  
R506 CA Duties (ext.) 11.05.11 
L 122, p. 12  
China Aluminium Foil 
AD 534 CN 
 Duties 
 
Undertakings 06.10.09 
L 262, p.1 
06.10.09 
L 262, p. 50  
Aluminium foil in small rolls 
AD582 CN Duties 13.03.13 
OJ L 69, p. 11  
Aluminium radiators 
AD578 CN Duties 09.11.12 
L 310,p. 1  
Aluminium road wheels 
AD541CN  Duties 28.10.10 
L 282 p. 1  
Barium carbonate 
AD475CN 
 Duties 21.07.05 
L 189, p.15 
corrected by L 181, 
04.07.06, p. 111 19.08.11 
L 214, p. 1 
Bicycles 
AD287CN  Duties 09.09.93 
L 228, p.1 05.06.13 
 L 153 p. 17 
Bicycle parts 
AD287CN AC Duties 18.01.97 
L 16, p.1 28.02.08 
L 55, p.1 
Candles, tapers and the like AD528CN Duties 14.05.09 
L 119, p. 1  
Cargo Scanning Systems 
AD522 CN Duties 16.06.10 
L 150 p.1  
Ceramic tableware and 
kitchenware AD586 CN Duties 15.05.13,  
L 131 p. 1  
Ceramic tiles 
AD560 CN Duties L 238 
15.09.11 p. 1  
Chamois leather 
AD496 CN Duties L 251 
14.09.06, p. 1 06.12.12 
L 334, p. 31 
Citric acid 
AD522CN Duties 
Undertakings 03.12.08 
L 323, p.1  
Citrus fruits (namely mandarins) AD524 CN Duties 22.02.13 
L 49, p. 29  WT/REG337/1 
 
- 37 - 
 
  Country/ 
Customs 
Territory Product, 
investigation ID number Measure(s) Date of imposition and publication 
reference 
Original Latest Extension 
Coated fine paper 
AD552CN Duties 14.05.11 
L 128, p. 1  
Continuous filament glass 
fibre products AD549CN Duties 15.03.11 
L 67, p. 1  
Dicyandiamide 
AD512CN Duties 15.11.2007 
L 296, p.1  
Fasteners, iron or steel 
AD525CN Duties 31.01.09 
L 29, p.1 26.07.11 
L 194 p. 6 
Ferro-silicon 
AD516CN Duties L 55 
28.02.08, p. 6  
Glass fibres (certain open mesh fabrics) AD558CN Duties 09.08.11 
L 204, p.1  
Hand pallet trucks and their 
essential parts  
AD474CN Duties 21.07.05 
L 189, p.1 13.10.11 
L 268 p.1 
Ironing boards 
AD506CN Duties 26.04.2007 
L 109, p.12  
Ironing boards (Since 
Hardware) AD548CN Duties 22.12.10 
L 338 p. 22  
Lever arch mechanisms 
AD491CN Duties 27.07.06 
L 205, p.1 04.09.12 
L 238, p. 5 
China (cont'd) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Melamine 
AD554CN Duties 13.05.11 
L 124, p. 2  
Molybdenum Wires AD540CN Duties 16.06.10 
L 150, p.17 12.01.12 
L 8, p. 22 
Monosodium glutamate 
AD521CN Duties 02.12.08 
L 322, p.1  
Okoumé plywood AD471CN Duties 12.11.04 
L 336, p.4 02.02.11 
L 28, p. 1 
Organic coated steel products 
AD584 CN Duties 15.03.13 
L 73, p. 1  
Oxalic acid AD568 CN Duties 18.04.12 
L 106, p. 1  
Peroxosulphates 
AD511CN Duties 11.10.07 
L 265, p.1  
Polyester high tenacity 
filament yarn AD547CN Duties 01.12.10 
L 315, p. 1  
PET  
AD468CN Duties 19.08.04 
L 271, p.1 L 300 
17.11.10 p. 1 
Powdered activated carbon  
AD325CN Duties 05.06.96 
L 134, p.20 10.07.08 
L 181, p.1 
Ring binder mechanisms 
AD350CN Duties 
 24.01.97 
L 22, p.1 26.02.10 
L 45, p.1 
PSC wires and strands AD529CN Duties 13.05.09 
L 118, p.1  
Seamless pipes and tubes of 
iron and steel AD533CN Duties 06.10.09 
L 262, p.19  
Seamless pipes and tubes of 
stainless steel AD565CN Duties 20.12.11 
L 336, p. 6  
Silicon metal 
AD245CN Duties 28.07.90 
L 198, p.57 29.05.10 
L 131, p.1 
Sodium cyclamate 
AD467CN Duties 11.03.04 
L 72, p.1 08.06.10 
L 140, p.2 
Sodium gluconate 
AD544CN Duties 28.10.10 
L 282, p. 24  
Stainless steel fasteners and parts thereof AD482CN Duties 19.11.05 
L 302, p. 1 07.01.12 
L 5, p. 1 
Steel ropes and cables 
AD384CN Duties 17.08.99 
L 217, p.1 09.02.12 
L 36 ,p. 1 
Sulphanilic acid AD444CN Duties 25.07.02 
L 196, p.11 16.10.08 
L 275, p.1 
Tartaric acid 
AD488CN 
 Duties 27.01.06 
L 23, p.1 24.04.12 
L 110, p. 3 WT/REG337/1 
 
- 38 - 
 
  Country/ 
Customs 
Territory Product, 
investigation ID number Measure(s) Date of imposition and publication 
reference 
Original Latest Extension 
 
 
 
China (cont'd) Threaded tube or pipe cast 
fittings, of malleable cast iron AD585 CN Duties 14.05.13 
L 129, p. 1  
Trichloroisocyanuric acid 
AD480CN Duties 07.10.05 
L 261, p.1 30.12.11 
L 346, p. 6 
Tube and pipe fitting, of iron 
or steel AD323CN Duties 03.04.96 
L 84, p.1 04.09.09 
L 233, p.1 
Tungsten carbide and fused 
tungsten carbide AD238CN Duties 27.09.90 
L 264, p.7 24.03.11 
L 78, p. 1 
Tungsten electrodes AD502CN Duties 13.03.07 
L 72, p.1.  
Welded tubes and pipes, of 
iron or non-alloy steel 
AD523CN Duties 19.12.08 
L 343, p.1  
Wire Rod 
AD530CN Duties 05.08.09 
L 203, p.1  
India 
 Fatty alcohols and their blends 
AD563IN Duties L 293 
11.11.11 p. 1  
Graphite electrode systems 
AD469IN Duties 18.09.04 
L 295, p.10 16.12.10 
L 332, p. 17 
Oxalic acid 
AD568 IN Duties 18.04.12 
L 106, p. 1  
Sulphanilic acid AD444IN Duties 
 
Undertakings 25.07.02 
L 196, p.11 
26.01.06 
L 22, p.52 16.10.08 
L 275, p.1 
 
Synthetic fibre ropes 
AD365IN Duties 26.06.98 
L 183, p.1 22.12.10 
L 338, p. 10 
Indonesia Bicycles (ext)  
AD287 ID AC Duties 05.06.13 
L 153, p. 17  
Fatty alcohols and their blends 
AD563ID Duties L 293 
11.11.11 p. 1  
Sodium cyclamate 
AD467ID Duties 11.03.04 
L 72, p.1 08.06.10 
L 140, p.2 
Tube and pipe fitting, of iron 
or steel AD323 ID Duties 06.06.03 
L 139, p.1 04.09.09 
L 233, p.1 
Korea, Rep. of Silicon metal 
AD245KR Duties  19.01.07 
L 13, p.1  
Steel Ropes and cables 
AD384KR Duties 11.05.10 
L 117, p.1 09.02.12 
L 36 ,p. 1 
Tube and pipe fittings, of iron 
or steel AD442KR Duties 24.08.02 
L 228, p.1 16.10.08 
L 275, p.18 
Lao, PDR Ring binder mechanisms 
AD350LAO Duties 
 12.01.06 
L 7, p.1 26.02.10 
L 49, p.1 
Malaysia Bicycles  
AD287 MY AC Duties 05.06.13 
L 153, p. 17  
Fatty alcohols and their blends 
AD563MY Duties L 293 
11.11.11, p. 1  
Fasteners, iron or steel 
AD525 MY AC Duties L194 
26.07.11, p. 6  
Glass fibres (certain open 
mesh fabrics) AD558 MY AC Duties  24.07.12 
L 196p. 1  
Molybdenum wires AD540MY Duties L 8 
12.01.12, p. 22  
Tube and pipe fittings, of iron 
or steel AD442MY Duties 24.08.02 
L 228, p.1 16.10.08 
L 275, p.18 
Moldova, 
Republic of Steel ropes and cables 
AD384MD Duties  24.04.04 
L 120, p.1 9.2.12 
L 36, p.1  
Morocco Steel ropes and cables  
AD384MOR Duties 30.10.04 
L 328, p.1 9.2.12 
L 36, p.1  
Philippines Stainless steel fasteners and 
parts thereof AD482 PH Duties  12.03.13 
L 68, p. 1  
Tube or pipe fittings, of iron or 
steel AD323PH 5.30.  Duties 29.04.06 
L 116, p.1 04.09.09 
L 233, p.1 WT/REG337/1 
 
- 39 - 
 
  Country/ 
Customs 
Territory Product, 
investigation ID number Measure(s) Date of imposition and publication 
reference 
Original Latest Extension 
Russian 
Federation Ammonium nitrate 
AD330RU Duties 
 
Undertakings 23.08.95 
L 198, p.1 
12.07.07 
L 185, p.43 12.07.08 
L 185, p.1 
Ferro-silicon 
AD516RU Duties 28.02.2008 
L 55, p. 6 25.01.2012 
L 22, p. 1 
Seamless pipes and tubes of iron or steel AD490RU Duties 29.06.06, 
L 175, p.4 04.07.12 
L 174, p. 5 
Steel ropes and cables 
AD384RU Duties 04.08.2001 
L 211, p.1 31.10.2007 
L 285, p.1 
Tube and pipe fittings, of iron or steel AD579 RU Duties 29.01.13 
L 27,p. 1  
Welded tubes and pipes, of 
iron or non-alloy steel 
AD523RU Duties 19.12.08 
L 343, p. 1  
South Africa Manganese dioxides 
AD520ZA Duties 13.03.08 
L 69, p.1  
Sri Lanka Bicycles  
AD287SL AC Duties 05.06.13  
L 153, p. 1  
Tube and pipe fitting, of iron 
or steel AD323SL Duties  01.12.04 
L 355, p.4 04.09.09 
L 233, p.1 
Chinese Taipei Glass fibres (certain open 
mesh fabrics) AD558 TW AC Duties 16.01.13 
L 11, p. 1  
Silicon metal  
AD245 TW AC Duties  05.04.13 
L 95, p. 1  
Stainless steel fasteners and 
parts thereof AD482TW Duties 19.11.05 
L 302, p.1 07.01.12 
L5, p.1 
Tube and pipe fitting, of iron 
or steel AD323TW Duties 14.04.00 
L 94, p.1 04.09.09 
L 233, p.1 
Thailand Hand pallet trucks and their 
essential parts AD474TH Duties 16.06.09 
L 151, p.1 13.10.11 
L268, p.1 
Glass fibres (certain open mesh fabrics) AD558 TH AC Duties 16.01.13 
L 11, p. 1  
Ring binder mechanisms 
AD559THA Duties 09.08.11 
L 204, p. 1  
Sweet corn (prepared or 
preserved, in kernels) AD507TH Duties 20.06.2007 
L 159, p.14  
Threaded tube or pipe cast 
fittings, of malleable cast iron 
AD585 TH Duties 14.05.13 
L 129, p. 1  
Tube and pipe fitting, of iron 
or steel AD323TH Duties 03.04.96 
L 84, p.1 04.09.09 
L 233 p.1 
Welded tubes and pipes, of 
iron or non-alloy steel 
AD443TH Duties 27.09.02 
L 259, p.8 19.12.08  
L 343, p.1 
Tunisia Bicycles  
AD287TU AC Duties 05.06.13 
 L 153, p. 1  
Turkey Tube and pipe fittings, of iron 
or steel AD579 TR Duties 29.01.13 
L 27,p. 1  
Ukraine 
 Ironing boards 
AD506UA Duties 26.04.2007 
L 109, p.12  
Seamless pipes and tubes of 
iron or steel AD490UA Duties 29.06.06 
L 175, p.4 04.07.12 
L 174, p. 5 
Steel ropes and cables 
AD384UA Duties 17.08.99 
L 217, p.1 09.02.12 
L 36, p. 1 
Welded tubes and pipes, of 
iron or non-alloy steel 
AD443UA Duties 27.09.02 
L 259, p.8 19.12.08 
L 343, p.1 
United States  Bioethanol  
AD580 US Duties 22.02.13  
L 49, p. 10  
Biodiesel 
AD531US Duties 10.07.09 
L 179, p.26  
Viet Nam Ring binder mechanisms  
AD350VN Duties 04.12.04 
L 359, p.11 26.02.10 
L 48, p.1 
 WT/REG337/1 
 
- 40 - 
 
  ANNEX 3 
EU(27) COUNTERVAILING MEASURES IN FORCE AS OF 30 JUNE 2013 
Table A3.1 Provisional Countervailing Measures  in force in EU(27) as of 30 June 2013 
Country/ 
Customs 
Territory Product, 
investigation ID number Provisional measures 
India Stainless steel wires (SSW) AS592 IN Duties imposed 08.05.2013  
 
Table A3.2 Definitive Countervailing Measures in force in EU(27) as of 30 June 2013 
Country/ 
Customs 
Territory Product,  
investigation ID number Measure(s) Date of imposition and publication 
reference 
Original Latest 
Extension 
Canada Biodiesel 
AS532CA Duties 11.05.2011 
L 122, p. 1  
China Coated fine paper  
AS557 CN Duties 14.05.2011 
L 128, p.18  
Organic coated steel 
products (certain) AS587 CN Duties 15.03.2013 
 L 73, p. 16 
  
India Graphite electrode systems 
AS470 IN Duties 18.09.2004 16.12.2010 
L 332, p.1 
PET (polyethylene 
terephthalate) 
AS426 IN Duties 
 
Undertakings 
 30.11.2000 
OJ.L.301, p.1 23.05.2013 
OJ L 137 p.1 
27.02.2007 
OJ.L. 59, p34 
Stainless steel bars (certain) AS556 IN Duties 28.04.2011 
L 108, p.3  
Sulphanilic acid  
AS445 IN Duties 
 
Undertakings 
 25.07.2002 
OJ.L.196, p.11 
26.01.2006 
OJ.L. 22, p.52 17.10.2008 
OJ.L. 276, p3 
Iran PET  
AS546 IR Duties 29.09.2010 
L 254, p.10  
Pakistan PET  
AS546 PK Duties 29.09.2010 
L 254, p.10  
United Arab 
Emirates PET  
AS546 AE Duties 29.09.2010 
L 254, p.10  
United States Biodiesel  
AS532 US Duties 10.07.2009 
OJ.L. 179, p.1 11.05.2011 
L 122, p. 1 
 WT/REG337/1 
 
- 41 - 
 
  ANNEX 4 
DETAILS ABOUT THE ENLARGEMENT PROTOCOLS AS OF NOVEMBER 20131  
The Protocol to the SAA with Albania has not b een signed yet. However Albania is already 
applying provisionally the Protocol (which is  not applied provisionally on the EU side. 
 
The Protocol to the SAA with Montenegro has no t been signed yet. The Council Decisions on 
signature, provisional application and conclusion of  the Protocol were adopted by the Council on 22 
October 2013. The Council is waiting for the European Parliament consent for the conclusion. 
Meanwhile, Montenegro shall provide the version in Montenegrin language in order to prepare the ceremony for signature.  
The Protocol to the SAA with FYROM has not been signed yet. The Council Decisions together 
with the Protocol shall be adopted by the Comm ission on 11 November 2013 and then sent to 
Council for its adoption. 
 
The initialling of the draft Protocol to the EU-Korea FTA took place on 8 November 2013, 
during the EU-Korea Summit. Ideally, the draft Protocol with related Decisions on signature and 
provisional application as well as the Decisions on the conclusions shall reach the Council 
beginning of 2014.  
On 4 November 2013, the EU discussed with So uth Africa about the draft Protocol to the 
Trade, Development and Cooperation Agreement during the Trade Cooperation Committee. The 
draft Protocol has already been exchanged and the parties are working on it. South Africa, because of its internal legislation, cannot apply provisionally the protocol, therefore it can only start 
applying preferences to Croatia once the protocol will enter into force. According to South Africa it 
should be during the third quarter of 2014.  
The draft Protocol to the EU-Colombia and Peru Trade Agreement is ready and will be sent in 
the beginning of November. Peru cannot apply prov isionally the Protocols, therefore preferences 
can be granted only after the entry into force, pending confirmation by Colombia. The draft Protocol shall be sent for signature during the first half of 2014. 
 
As regards the draft Protocol to the EU-Central  America Association Agreement, discussion is 
on-going on the request made by Central Americ a for compensation of preferential traditional 
trade; negotiations with Costa Rica will be made also in the framework of the WTO under 
Articles XXIV and XXVIII GATT.  
The Council Decision for the EU-CARIFORUM EPA will be discussed by the EU during the 
CARIFORUM-EU Trade and Development Committee meeting in Grenada on 21 November 2013. 
The main changes consist of the Croatian commitments for services.  
As for other EPAs, work is  on-going for the drafting  of Council Decisions. 
 
The Decision of the Joint Committee for the adap tation of the EU-Switzerland FTA shall be 
adopted (normally) in December. 
 
As regards EU-Russia Wood Agreement, modifications of the Agreement were discussed with 
the Russian Federation during consultations on 27  September; the drafting of the text of the 
Protocol is on-going. 
 
__________  
                                               
1 Information subm itted by the EU.