G/C/W/794  
 
25 June 2021  
(21-5157) Page: 1/5 
Council for Trade in Goods  Original: English   
 
REQUEST FOR AN EXTENSION OF THE WAIVER (WT/L/380, WT/L/654, WT/L/836, 
WT/L/1002) FOR THE APPLICATION OF AUTONOMOUS PREFERENTIAL  
TREATMENT TO THE WESTERN BALKANS  
COMMUNICATION FROM THE EUROPEAN UNION  
The following communication, dated 22  June 2021, is being circulated 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 the Council 
for Trade in Goods a request for an extension of the waiver from its obligations under Article  I(1) of 
the General Agreement on Tariffs and Trade  1994 ( 'GATT  1994'), as well as an extension o f the 
waiver to Article  XIII of the GATT  1994, concerning autonomous preferential treatment to the 
Western Balkans, the text of which is enclosed herewith (Annex).  
 
1  PURPOSE OF THE REQUEST  
1.1.  On 8 December  2000, the EU was granted a waiver (WT/L/380) from its obligations under 
Article  I(1) 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. 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.  On 1 September  2016, the EU submitted a request to the WTO  General Council to extend the 
period of application of the existi ng preferential regime for a further period of five  years 
(G/C/W/731). On 12  December  2016, the WTO  General Council adopted a decision to extend the 
waiver until 31  December  2021 (WT/L/1002).  
1.5.  The EU requests the extension of the existing waiver for an addi tional time -period of five  years 
because the reasons justifying the waiver continue to exist. The EU has adopted a Regulation1 that 
 
1 Regulation (EU)  2020/2172 of the European Parliament and of the Council of 16  December  2020 
amending Council Regulation (EC)  No. 1215/2009 introducing exceptional trade measures for countries and 
territories participating in or linked to the European Union' s Stabilisation and Association process (OJ  L 432, 
21.12.2020, p.  7). G/C/W/794  
 
- 2 - 
 
  renews the autonomous preferential regime for the Western Balkans (Albania, Bosnia and 
Herzegovina, Kosovo *, Montenegro, N orth Macedonia, and Serbia) until 31  December  2025.  
1.6.  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 treatment 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  2026.  
2  DESCRIPTION OF THE MEASURES FOR WHICH AN EXTENSION OF THE WAIVER IS 
REQUESTED  
2.1.  The preferential treatment was initially granted on the basis of Council Regulation (EC) 
No 1215/20092, amended and extended several times thereafter. As a rule, most products 
originating in the Western Balkans cont inue 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 (headin g 2204) from the Western Balkans the customs 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 for each product and origin in Council 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 provided for in Title  II, Chapter  1, Section  2, Subsections  4 and 5 of 
Commission Delegated Regulation (EU)  2015/24463, and Title  II, Chapter  2, 
Section  2, Subsections  10 and 11 of Commission Implementing Regulation 
(EU) 2015/24474; 
 
(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 i ntroducing any other restrictions from the day of the 
entry into force of the preferential regime;  
 
(c) involvement of the beneficiaries in effective administrative cooperation with the 
EU in order to prevent any risk of fraud; and  
 
(d) abstention of the beneficiaries from engaging in serious and systematic violations 
of human rights, including core labour rights, of fundamental principles of 
democracy and of the rule of law.  
 
2.3.  In addition, the entitlement to the preferential arrangement i s subject to the readiness of the 
beneficiaries to engage in effective economic reforms and in regional cooperation with other parties 
concerned by the EU 's Stabilisation and Association process, in particular through the establishment 
 
* This designation is without prejudice to positions on status, and is in line with UNSCR  1244/1999 and 
the International Court of Justice Opinion on the Kosovo declaration.  
2 OJ L 240, 23.9.2000, p.  1. Regulation as l ast amended by Regulation (EC)  No. 530/2007 (OJ  L 125, 
15.5.2007, p.  1), as codified by Council Regulation (EC)  No. 1215/2009 of 30  November  2009 (OJ  L 328, 
15.12.2009, p.  1). 
3 Commission Delegated Regulation (EU)  2015/2446 of 28  July 2015 supplementing Regulation 
(EU) No. 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain 
provisions of the Union Customs Code (OJ  L 343, 29.12.2015, p.  1). 
4 Commission Implementing Regulation (EU)  2015/2447 of 24 November  2015 laying down detailed 
rules for implementing certain provisions of Regulation (EU)  No. 952/2013 of the European Parliament and of 
the Council laying down the Union Customs Code (OJ  L 343, 29.12.2015, p.  558).  G/C/W/794  
 
- 3 - 
 
  of free trade areas in conformity with Article  XXIV of the GATT  1994 and other relevant 
WTO provisions.  
3  CIRCUMSTANCES JUSTIFYING THE WAIVER  
3.1.  The request to extend the WTO  waiver permitting autonomous trade preferences to the 
Western Balkans is justified considering the persist ent difficult economic situation in the region and 
that the preferential treatment to eligible products the Union affords to these countries is intended 
to promote economic development in a manner consistent with the objectives of GATT  1994 and not 
to crea te barriers for the trade of other WTO  Members. Therefore, the exceptional circumstances 
justifying the extension of the waiver from Article  I(1) and from Article  XIII of GATT  1994 still 
applies.  
3.2.  Fully liberalised access to the markets of the EU is foresee n as part of the process put in place 
by the Stabilization and Association Agreements ( "SAAs"). The SAAs, which the EU has progressively 
concluded with the countries and territories of the Western Balkans, establish a free trade area with 
the concerned cou ntry or territory, in line with the obligations foreseen in Article  XXIV of the 
GATT  1994. Their aim is to boost the economic development and the political stabilization of the 
region, while establishing a close, long -term association between the EU and th e Western Balkans, 
much as the Europe Agreements did for the candidate countries in Central Europe.  
3.3.  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 o riginating in the Western Balkans.  
3.4.  The EU has now concluded six  SAAs. The SAA with North 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.  
3.5.  This approach has proven to offer concrete and significant support to the economic 
development efforts undertaken by the Western Balkans, thereby fostering deeper trade integ ration 
of the region.  
3.6.  The EU is by far the first  trading partner of the Western Balkans, accounting for, overall, some 
70% of their total trade. At the same time, the level of imports from the region into the EU remains 
very low, around 1.4% of the total E U imports and it is concentrated primarily on machinery and 
transport equipment, miscellaneous manufactured articles and manufactured goods. Detailed 
statistics on trade between the EU and the Western Balkans have been provided annually to the 
General Coun cil under the reports required by the current waiver.5 
4  CONCLUSIONS  
4.1.  The EU requests on the basis of Article  IX(3) of the WTO  Agreement the extension of the waiver 
of its obligations under Article  I(1) and Article  XIII of the GATT  1994 to the extent necessa ry to 
permit the EU to afford preferential treatment to products originating in Western Balkans until 
31 December  2026, without being required to extend the same preferential treatment to like 
products of any other WTO  Member. A draft waiver Decision is at tached (Annex) for consideration.  
4.2.  The EU requests that the Council for Trade in Goods give its application for a waiver expeditious 
and favourable consideration. In the meantime, the EU is prepared to give full consideration to 
representations made to it b y other WTO  Members and to engage in consultations with them as may 
be necessary.  
_______________  
 
  
 
5 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, WT/L/1019, WT/L/1044, WT/L/1077, WT/L/1103 . G/C/W/794  
 
- 4 - 
 
   
ANNEX  
EUROPEAN UNION REQUEST FOR AN EXTENSION OF THE WAIVER  
FOR THE APPLICATION OF AUTONOMOUS PREFERENTIAL  
TREATMENT TO THE WESTERN BALKANS  
Decision of … 20211 
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 waivers adopted on 1  November 1956, and 
the Understanding in respect of Obligations under the General Agreement of Tariffs and Trade  1994 
(the "GATT  1994"); 
 
 Taking into account  the Decision of the General Council of 8  December  20002 by which 
WTO Members granted 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, the Decision of the Gene ral 
Council of 5  December  20114, extending this waiver until 31  December  2016, and the Decision of 
the General Council of 7  December  20165, extending this waiver until 31  December  2021;  
 
Noting  that the existing waiver is due to expire on 31  December  2021; 
 
Taking note  of the request of the European Union, pursuant to paragraph  3 of Article  IX of the 
WTO 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 t o 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 di fficult 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 the GATT  1994 and not to create barriers for the trade of other WTO  Members;  
 
 Noting  that, in light of the foregoing, the exceptional circumstances justify ing 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  2026 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, North Macedonia, Kosovo *, Montenegro and 
Serbia) without being required to extend the same preferential treatment to like products of any 
other WTO  Member.  
 
2. Such preferential treatment shall not raise new barriers for the trade of other Members.  
 
 
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 WT/L/1002.  
* This designation is without prejudice to positions on status, and is in line with UNSCR  1244/1999 and 
the International Court of Justice Opinion o n the Kosovo declaration.  G/C/W/794  
 
- 5 - 
 
  3. The European Union shall con sult promptly with any Member on the operation of its 
preferential or duty -free concessions 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 that 
its benefits under the GATT  1994 are or may be impaired unduly as a result of measures put in place 
by the European Union and covered by this Decision, the European Union shall examine the 
possibility of a satisfactory adjustment of the matter.  
 
4. This Deci sion 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 beneficiarie s listed in paragraph  1, including the extent to which such 
preferences are different from the European Union 's Most Favoured Nation and Generalized  System 
of Preferences concessions, with a view to facilitating the annual review provided for in paragraph  4 
of Article  IX of the WTO  Agreement.  
 
__________