G/C/W/731  
 
12 October 2016  
(16-5511) Page: 1/5 
Council  for Trade in Goods  Original: English  
 
 REQUEST FOR AN EXTEN SION OF THE WAIVER ( WT/L/380, WT/L/654, WT/L/836)  
FOR THE APPLICATION OF AUTONOMOUS PREFER ENTIAL  
TREATMENT TO THE WES TERN BALKANS  
COMMUNICATION FROM T HE EUROPEAN UNION  
The following communication, dated 30  September  2016, is being circu lated at the request of the 
delegation of the European Union.  
 
_______________  
 
 
Pursuant to Article  IX:3 of the Marrakesh Agreement Establishing the World Trade Organization 
(WTO  Agreement), the European Union (EU) hereby submits to the consideration of t he Council for 
Trade in Goods a request for an extension of the waiver of its obligations under paragraph  1 of 
Article  I, as well as an extension of the waiver to Article  XIII of the GATT  1994, concerning 
autonomous preferential treatment to the Western Ba lkans, the text of which is enclosed herewith  
(Annex) . 
 
1  PURPOSE OF THE REQUE ST 
1.1.  On 8  December  2000, the EU was granted a waiver (WT/L/380) of its obligations under 
paragraph  1 of Article  I of the GATT  1994 to the extent necessary to permit the EU to afford 
duty-free or preferential treatment to products originating in the Western Balkans (Albania, Bosnia 
and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Kosovo1, Montenegro and 
Serbia). This waiver was granted by the WTO  General Council for  the period through 
31 December  2006.  
1.2.  On 4 May 2006, the EU submitted a request to the WTO  General Council to extend the period 
of application of the existing preferential regime for a further period of five  years (G/C/W/552). On 
28 July 2006, the WTO  General Council adopted a decision to extend the waiver until 
31 December  2011 (WT/L/654).  
1.3.  On 26  October  2011, the EU submitted a request to the WTO  General Council to extend the 
period of application of the existing preferential regime for a further period of  five years 
(G/C/W/658). On 5  December  2011, the WTO  General Council adopted a decision to extend the 
waiver until 31  December  2016 (WT/L/836).  
1.4.  The EU requests the extension of the existing waiver for an additional time -period of 
five years because the rea sons justifying the waiver continue to exist. The EU has adopted a 
Regulation2 that renews the autonomous preferential regime for the Western Balkans until 
31 December  2020 and introduces some technical amendments to the use of the individual wine 
quota fo r Montenegro applicable as from 1  January  2016.  
                                                
1 Under United Nations Security Council Resolution  1244/99.  
2 Regulation (EU) N o. 2423/2015 of the European Parliament and of the Council of 16  December  2015 
amending Council Regulation (EC) No . 1215/2009 introducing exceptional trade measures for countries and 
territories participating in or linked to the European Union's stabilisat ion and association process and 
suspending its application with regard to Bosnia and Herzegovina (EU O.J. L 341, 24.12.2015) . G/C/W/731  
 
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  1.5.  In order to permit the EU to continue providing preferential treatment for the application of 
autonomous preferential regime to the Western Balkans, without being required to extend the 
same preferential trea tment to the like products of any other Member of the WTO, the EU presents 
this request for the extension of the waiver from the provisions of Article  I:1 and Article  XIII of the 
GATT 1994 until 31  December  2021.  
2  DESCRIPTION OF THE M EASURES FOR WHICH AN  EXTENSION OF THE WAIVER I S 
REQUESTED  
2.1.  The preferential treatment is provided on the basis of Council Regulation (EC) 
No. 1215/2009, as amended. As a general rule, most products originating in the Western Balkans 
continue to be admitted into the EU  duty-free, without quantitative restrictions or measures having 
equivalent effect and with exemption from customs duties and charges having equivalent effect.  
2.2.  The following exceptions apply:  
• For certain wine products (heading  2204) from the Western Balkans the custom s 
duties applicable to imports into the EU shall be suspended during the periods of 
validity of the measures in question, within the limits of the EU  tariff quotas and under 
specific conditions indicated in Regulation  EC No. 1215/2009.  
 
The entitlement to benefit from the preferential arrangements is subject to the 
following conditions:  
 
(a) Compliance with the definition of the concept of "originating products" provided 
for in Title  IV, Chapter  2, section  2 of Regulation (EEC) No . 2454/933; 
 
(b) abstention  of the beneficiaries from introducing new duties or charges having 
equivalent effect and new quantitative restrictions or measures having 
equivalent effect from imports originating in the EU or from increasing existing 
levels of duties or charges or from introducing any other restrictions from the 
day of the entry into force of the preferential regime;  
 
(c) involvement of the beneficiaries in effective administrative co -operation with the 
EU in order to prevent any risk of fraud.  
 
2.3.  In addition, the entitlem ent to the preferential arrangement is subject to the readiness of the 
beneficiaries to engage in effective economic reforms and in regional co -operation with other 
parties concerned by the EU's Stabilisation and Association process, in particular through the 
establishment of free trade areas in conformity with Article  XXIV of the GATT  1994 and other 
relevant WTO  provisions.  
3  CIRC UMSTANCES JUSTIFYING  THE WAIVER  
3.1.  The EU is by far the first trading partner of the Western Balkans, accounting for, overall, 
some 7 6% of their total trade. At the same time, the level of imports from the region into the 
EU remains very low, around 1% of the total EU  imports and it is concentrated primarily on 
machinery and transport equipment, manufacturing and in fuels and mining pro ducts. Detailed 
statistics on trade between the EU and the Western Balkans have been provided annually to the 
General Council under the reports  required by the current waiver .4 
3.2.  The Stabilisation and Association Agreements (SAAs), which the EU  has progressi vely 
concluded with the countries and territories of the Western Balkans, are tools which provide, much 
as the Europe Agreements did for the candidate countries in Central Europe, for the economic 
development and political stabilisation of the countries in  the region, and to establish a close, 
long-term association between the EU and the Western Balkans.  
                                                
3 EU O.J. L 253, 11.10.1993 . 
4 WT/L/435, WT/L/503, WT/L/551, WT/L/596, WT/L/635 WT/L/668, WT/L/731, WT/L/763, WT/L/799, 
WT/L/814, WT/L/870, WT/L/896, WT/L/935 and WT/L/962.  G/C/W/731  
 
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  3.3.  The EU concluded six  SAAs with the countries and territories of the Western Balkans. The 
Stabilisation and Association Agreement with the former Yugoslav R epublic of Macedonia entered 
into force on 1  April 2004, the one with Albania on 1  April 2009, with Montenegro on 1  May 2010, 
with the Republic of Serbia on 1  September  2013, with Bosnia and Herzegovina on 1  June 2015 
and with Kosovo on 1  April 2016.  
3.4.  The S AAs establish a free trade area with the concerned country or territory, in line with the 
obligations foreseen in Article  XXIV of the GATT  1994, and with the aim to booster the economic 
development and the political stabilization of the region, while estab lishing a close, long -term 
association between the EU and the Western Balkans.  
3.5.  At the same time, the SAAs allow the continuation of the autonomous preferences where 
these provide more favourable conditions for the export of the goods originating in the for mer 
Yugoslav Republic of Macedonia, Albania, Bosnia and Herzegovina,  Montenegro, Serbia and 
Kosovo.  
3.6.  This approach has proven to offer a concrete and important support to the economic 
development efforts undertaken by the Western Balkans thereby fostering a  deeper t rade 
integration of the region.  
4  CONCLUSIONS  
4.1.  The EU requests on the basis of Article  IX:3 of the Marrakech Agreement Establishing the 
World Trade Organi zation the extension of the waiver of its obligations under Article  I:1 and  
Article  XIII of the General Agreement on Tariffs and Trade  1994 to the extent necessary to permit 
the EU  to a preferential treatment to products originating in the Western Balkans until 
31 December  2021, without being required to extend the same preferential treatment to like  
products of any other WTO  Member. A draft waiver Decision is attached for consideration.  
4.2.  The European Union requests that the Council for Trade in Goods give its application for a 
waiver expeditious and favourable consideration. In the meantime, the Europ ean Union is prepared 
to give full consideration to representations made to it by other WTO  Members and to engage in 
consultations with them as may be necessary.  
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 G/C/W/731  
 
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ANNEX  
EUROPEAN UNION REQUE ST FOR AN EXTENSION OF THE WAIVER  
FOR THE APPLIC ATION OF AUTONOMOUS PREFERENTIAL  
TREATMENT TO THE WES TERN BALKANS  
Decision of … 20161 
The General Council,  
 
Having regard  to paragraphs  1 and 3 of Article  IX of the WTO  Agreement, the Guiding 
Principles to be followed in considering applications for waiver s adopted on 1  November  1956, and 
the Understanding in respect of Obligations under the General Agreement on Tariffs and 
Trade  1994 (the "GATT  1994");  
 
 Taking into account  the Decision of the General Council of 8  December  20002 by which 
WTO Members grante d the European Communities a waiver of obligations under paragraph  1 
Article  I of the GATT  1994 for the period through 31  December  2006, the Decision of the General 
Council of 28  July 20063, extending this waiver until 31  December  2011 and the Decision of the 
General Council of 5  December  20114, extending this waiver until 31  December  2016;  
 
Noting  that the existing waiver is due to expire on 31  December  2016;  
 
Taking note  of the request of the European Union, pursuant to paragraph  3 of Article  IX of 
the WT O Agreement, for an extension of the waiver from its obligations under paragraph  1 of 
Article  I and Article  XIII of the GATT  1994 to the extent necessary to permit the European Union to 
afford preferential treatment to eligible products originating in the Western Balkans, without being 
required to extend the same preferential treatment to like products of any other WTO  Member;  
 
 Considering  the persistent difficult economic situation in the region and the efforts being 
made by WTO  Members to foster economic  transition and development in the Western Balkans ; 
 
 Considering  that the preferential treatment to eligible products the European Union affords 
to these countries is intended to promote economic development in a manner consistent with the 
objectives of t he GATT  1994 and not to create barriers for the trade of other WTO  Members;  
 
 Noting  that, in light of the foregoing, the exceptional circumstances justifying the extension 
of the waiver from paragraph  1 of Article  I and from Article  XIII of the GATT  1994 exist;  
 
Decides  as follows:  
 
1. Subject to the conditions set out in this Decision, the provisions of paragraph  1 of Article  I 
and of Article  XIII of the GATT  1994 shall be waived until 31  December  2021 to the extent 
necessary to permit the European Union to afford preferential treatment to eligible products 
originating in the Western Balkans (Albania, Bosnia and Herzegovina, the former Yugoslav 
Republic of Macedonia, Kosovo5, Montenegro  and Serbia) without being required to extend the 
same preferential tre atment to like products of any other WTO  Member.  
 
2. Such preferential treatment shall not raise new barriers for the trade of other Members.  
 
3. The European Union shall consult promptly with any Member on the operation of its 
preferential or duty -free co ncessions in respect of the beneficiaries listed in paragraph  1 of this 
Decision, or on any other matter arising in respect of this Decision. Where a Member considers 
                                                
1 Adopted in accordance with the Procedures on WTO  Decision -Making under Articles  IX and XII of the 
WTO Agreement agreed by the General Council (WT/L/93).  
2 WT/L/380.  
3 WT/L/654.  
4 WT/L/836.  
5 Under United Nations  Security Council Resolution  1244/99.  G/C/W/731  
 
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  that its benefits under the GATT  1994 are or may be impaired unduly as a result of measur es put 
in place by the European Union and covered by this Decision, the European Union shall examine 
the possibility of a satisfac tory adjustment of the matter.  
 
4. This Decision does not affect Members ' rights as set out in the Understanding in respect of  
Waivers of Obligations under the GATT  1994.  
 
5. The European Union shall report annually to the General Council on the preferences afforded 
to products from the beneficiaries listed in paragraph  1, including the extent to which such 
preferences is differe nt from the European Union's MFN and GSP  concessions, with a view to 
facilitating the annual review provided for in paragraph  4 of Article  IX of the WTO  Agreement.  
 
 
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