WT/REG285/3  
27 June 2014  
(14-3719)  Page: 1/25  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
ECONOMIC INTEGRATION AGREEMENT BETWEEN  
THE EUROPEAN UNION AND SERBIA 
(SERVICES) 
Report by the Secretariat 
This report, prepared for the consideration of the Stabilisation and Association 
Agreement between the European Union and Serbia 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 
Mr. Peter Milthorp (tel: +41 22 739 5016). Any statistical questions arising from this 
report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG285/3 
 
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 TABLE OF CONTENTS 
 
Page 
 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Trade in servic es and inve stment ................................................................................. 4  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 9  
2.1   Background  Information ............................................................................................. 9  
3   PROVISIONS ON TRADE IN SERVICES ....................................................................... 10  
3.1   Scope and Definitions ................................................................................................ 10 
3.2   Denial of Benefits ..................................................................................................... 11 
3.3   General Provisions on Trade in Services ....................................................................... 11 
3.3.1   Mark et acce ss ....................................................................................................... 11 
3.3.2   National and MFN tr eatment .................................................................................... 11 
3.3.3   Commercial presence ............................................................................................. 11 
3.3.4   Movement of  natural persons .................................................................................. 12 
3.4   Liberalizat ion Commitments ....................................................................................... 13 
3.4.1   General Overview .................................................................................................. 13 
3.4.1.1   EU's GA TS commit ments ...................................................................................... 14 
3.4.1.2   Serbia's GATS commi tments ................................................................................. 14 
3.4.1.3   The Parties liberalization  commitments unde r the Agreement .................................... 14 
3.4.1.4   Sector-spe cific commitments ................................................................................ 15 
3.4.1.5   Construction and related engin eering services, and distribution services ...................... 15 
3.4.1.6   Educat ional serv ices ............................................................................................ 16 
3.4.1.7   Environm ental services ........................................................................................ 16 
3.4.1.8   Financial services ................................................................................................ 16 
3.4.1.9   Health relate d and social servic es .......................................................................... 17 
3.4.1.10   Tourism and travel related servic es and recreational, cultural and sporting 
services .......................................................................................................................... 17 
3.4.1.11   Transp ort serv ices ............................................................................................. 17 
3.5   Regulatory Provisions ................................................................................................ 18 
3.5.1   Domestic regulation ............................................................................................... 18 
3.5.2   Recognition ........................................................................................................... 18 
3.5.3   Subsidies .............................................................................................................. 18 
3.5.4   Safeguards ........................................................................................................... 18 
3.5.5   Other ................................................................................................................. .. 19 
3.6   Sector-Speci fic Provisions .......................................................................................... 19 
3.6.1   Financial services ................................................................................................... 19 
3.6.2   Transp ort services ................................................................................................. 19 
3.6.2.1   General provisions .............................................................................................. 19 
3.6.2.2   Land transport .................................................................................................... 19 WT/REG285/3 
 
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 3.6.2.3   Internationa l maritime transp ort ........................................................................... 20 
3.6.2.4   Air transport ....................................................................................................... 20 
4   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 20  
4.1   Tran sparency ........................................................................................................... 20 
4.2   Payments and capital mo vements ............................................................................... 20 
4.3   Exceptions ............................................................................................................... 21 
4.4   A ccession  ............................................................................................................... . 21 
4.5   Institutio nal framework ............................................................................................. 21 
4.6   Government  Procurement .......................................................................................... 21 
4.7   Intellectu al property ................................................................................................. 22 
4.8   Dispute Settlement ................................................................................................... 22 
4.9   Relationship with other agr eements concluded by the Parties .......................................... 24 
 
 WT/REG285/3 
 
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Key Facts 
 
Parties to the Agreement:  EU(27) and Serbia  
 
Date of Signature:   29 April 2008   
 
Date of Entry into Force:  1 September 2013   
 
Date of Notification:   20 December 2013  
 
Full implementation:   1 September 20181  
 
 
1  TRADE ENVIRONMENT 
1.1.  The Stabilisation and Association Agreement (hereinafter referred to as the Agreement) 
between the European Union and its 27 Member St ates (hereinafter "EU") on the one part and 
Serbia on the other part, contains provisions on goods and services. This Factual Presentation 
deals with the services aspects of the Agreement as  the goods aspects of it have been considered 
in the Factual Presentation on the Interim Agreement on Goods in WT/REG285/1 and Corr.1, 
considered by the CRTA on 28 June 2011, in WT/REG285/M/1.2 Therefore, in this Factual 
Presentation, those subjects that have been dealt with in the consideration of the goods aspect of 
the Agreement are excluded. 
1.1  Trade in services and investment 
1.2.  Charts 1.1-1.4 below show the breakdown of commercial services trade between Serbia and 
the EU and the rest of the world from 2010-2012.  Transport, travel and communications are the 
EU's largest exports and imports. The EU's imports from Serbia stayed relatively constant, while 
exports from the EU to Serbia have trended upwards over the period.  
                                               
1 Article 76.4 of the Agreement provides that a five year transition period granted to Serbia by the end 
of which Serbia shall abolish preferences to domestic bidders. That period ends on 1 September 2018. 
2 WT/REG285/1 and Corr.1. WT/REG285/3 
 
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 Chart 1.1 EU, trade in commercial se rvices with Serbia and extra-EU  
0.01.02.03.04.0
2010 2011 2012A. EU imports from Serbia
2010-2012
(€ Billion)
0.01.02.03.04.0
2010 2011 2012B. EU exports to Serbia
2010-2012
(€ Billion)
0100200300400500600
2006 2007 2008 2009 2010 2011 2012C. EU imports from extra-EU
2006-2012
(€ Billion)
0100200300400500600700
2006 2007 2008 2009 2010 2011 2012D. EU exports to extra-EU
2006-2012
(€ Billion)
 
 
 
Note: Data for 2006 is EU (25) and 2007-2012 is EU (27).  Source: EU authorities and Eurostat.  
1.3.  Chart 1.2 below sets out Serbia's trade in commercial services with the EU and the rest of the 
world during the period 2010-2012. Transport, travel and communications are Serbia's largest 
imports and exports. Serbia's services exports and import of services trade with the EU (and the 
rest of the world) has steadily increased since 2011.  WT/REG285/3 
 
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 Chart 1.2 Serbia, trade in commercial services with EU and world, 2010-2012 
050100150200250300350
2010 2011 2012C. Serbia imports from world
2010-2012
(€ Billion)
050100150200250300350400
2010 2011 2012D. Serbia exports to world
2010-2012
(€ Billion)050100150200250
2010 2011 2012A. Serbia imports from EU
2010-2012
(€ Billion)
050100150200250
2010 2011 2012B. Serbia exports to EU
2010-2012
(€ Billion)
 
 
Exchange rate used: Euro per US Dollar = 0.755(2010), 0.719(2011), and 0.778 (2012). 
 Source: Serbian authorities.  
1.4.  Chart 1.3 below plots the EU FDI stock with Serbia and the rest of the world. Over the period 
2007-2012 the EU's inward and outward FDI stocks have increased steadily although it remains a 
net outward investor both with Serbia and with th e rest of the world. FDI import and export flows 
have remained roughly constant and close to balanced.  WT/REG285/3 
 
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 Chart 1.3 EU, FDI stock and flow with Serbia and world  
05101520
2007 2008 2009 2010 2011 2012A. EU FDI stock with Serbia
2007-2012
(€ Billion) 
Outward Inward
-505101520
2007 2008 2009 2010 2011 2012B. EU FDI flow with Serbia
2007-2012
(€ Billion) 
Outward Inward
01,0002,0003,0004,0005,0006,000
2000 2002 2004 2006 2008 2010 2012C. EU FDI stock with extra-EU
2000-2012
(€ Billion) 
Outward Inward
01,0002,0003,0004,0005,0006,000
2000 2002 2004 2006 2008 2010 2012D. EU FDI flow with extra-EU
2000-2012
(€ Billion) 
Outward Inward
 
 
Note: Bilateral FDI data are only available for the period 2007-2012. Data for 2000-2003 is EU(15); 
2004-2006 is EU(25); and 2007-2012 is EU (27). 
 Source: Eurostat.  
1.5.  Chart 1.4 below shows Serbia's FDI stock an d flows with the EU and the rest of the world. 
Over the period Serbia's inward FDI stock with the EU remained constant. Inward flows of FDI 
from the EU, which peaked in 2011 have declined sharply, below 2010 levels. FDI stock with the world have increased over the period. Except a brie f uptick in 2011, FDI flows with the rest of the 
world have declined to well below their 2008 levels.  WT/REG285/3 
 
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 Chart 1.4 Serbia, FDI stock and flow with EU and world, 2008-2012 
0510152025
2008 2009 2010 2011 2012A. Serbia FDI stock with world
2008-2012
(€ Billion) 
Outward Inward
012345
2008 2009 2010 2011 2012B. Serbia FDI flow with world
2008-2012
(€ Billion) 
Outward Inward
 
 
Note: The earliest available data with the world is 2008. 
 Source: UNCTAD.  
1.6.  Table 1.1 below provides detail on Serbia's FDI flows between Serbia and the EU by sector. 
Inward investment by the EU is concentrated mainly in manufacturing, real estate, financial 
intermediation and wholesale and retail trade, wh ile Serbia's FDI flows to the EU are mainly in 
construction, and in 2012 in financial intermediation and manufacturing. 
Table 1.1 Serbia's FDI Flows with the EU by sector, 2010-2012  
Sector 2010 2011 2012 
Inflows  Outflows  Inflows Outflows  Inflows Outflows  
(€ million) 
Total (all sectors) 778.804 -32.627 1,693.307 -84.295 -24.415 -19.491 
Agriculture, hunt ing and forestry 1.5 0.3 4.4 -0.1 0.4 -0.4 
Fishing 0.7 0.0 0.0 0.0 0.0 0.0 
Mining and quarrying 3.1 0.0 11.3 0.0 17.0 0.0 
Manufacturing 252.8 -3.3 349.2 -33.0 146.3 15.1 
Electricity, gas and water supply 2.6 0.0 8.4 0.0 6.9 0.0 
Construction 28.6 0.4 51.1 -2.9 64.4 -1.1 
Wholesale and retail trade; repair 
of motor vehicles, motorcycles 
and personal and household 
goods 78.5 -17.3 747.9 -4.3 98.6 -21.0 
Hotels and restaurants 0.9 0.0 12.5 0.0 -6.4 0.0 
Transport, storage and 
communications 54.6 -6.3 60.9 -0.1 -580.9 -1.4 
Financial intermediation 232.3 -6.5 342.7 -38.6 76.9 0.3 
Real estate, renting and business 
activities 100.5 -0.7 89.9 -2.1 103.2 -9.2 
Public administration and 
defence; compulsory social 
security 0.0 0.0 0.0 0.0 0.0 -1.6 
Education 0.0 0.0 0.1 -0.2 0.3 0.0 
Health and social work -0.3 0.0 0.0 0.0 0.0 0.0 
Other community, social and 
personal service activities 1.0 0.0 0.6 0.0 3.4 0.1 WT/REG285/3 
 
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 Sector 2010 2011 2012 
Inflows  Outflows  Inflows Outflows  Inflows Outflows  
(€ million) 
Private households with employed 
persons 5.9 0.0 2.2 0.0 3.2 0.0 
Extra-territorial organizations and 
bodies       
Unallocated 16.1 0.9 12.1 -2.9 42.3 -0.3 
Note: Breakdown by country and industry is on net basi s. Inflows-flows in the table are net FDI in Serbia 
from EU-27 countries, and outflow-flows ne t FDI from Serbia in EU-27 countries.  
 Source: National Bank of Serbia.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Stabilisation and Association Agreement (hereinafter "the Agreement") between the EU 
and Serbia was notified to the WTO pursuant to Article V of the GATS in document S/C/N/716 on 20 December 2013. This Agreement succeeds the Interim Agreement on Trade and Trade Related 
Matters which entered into force on 1 February  2010. The Interim Agreement implemented the 
provisions on trade in goods as well as other provisions (notably competition rules and intellectual property of the Agreement).
3  
2.2.  The text of the Agreement is available, to gether with its related Annexes on the following 
official websites: 
European Union:  
http://eur-lex.europa.eu/legal-content/E N/TXT/PDF/?uri=OJ:L:2013:278:FULL&from=EN  
Serbia: 
http://www.selo.gov.rs/documents/agreements-with-eu.216.html  
2.3.  The Agreement is composed of a Preamble and ten parts ("Titles") as well as Annexes and 
Protocols on Land Transport and Dispute Se ttlement as indicated in Box 2.1 below. 
Box 2.1 
Titles and Annexes Title/description 
Title I General Principles 
Title II Political dialogue 
Title III Regional Cooperation 
Title IV Free Movement of Goods 
Title V Trade in Services  
Chapter I  Movement of Workers 
Chapter II  Establishment 
Chapter III Supply of Services 
Chapter IV Current Payments and Movement of Capital 
Chapter V General Provisions 
Title VI  Approximation of Laws, Law enforcement and Competition Rules 
Title VII Justice, Freedom and Security 
                                               
3 See S/C/N/716, at 7. WT/REG285/3 
 
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 Titles and Annexes Title/description 
Title VIII Cooperation policies 
Title IX  Financial Cooperation 
Title X Institutional, General and Final Provisions 
Annexes Title 
Annex I Schedules of Tariff Concessions 
Annex II Definition of "Baby Beef" Products 
Annex III(a-d) Serbian Tariff Concessions for Comm unity Agricultural Products  
Annex IV Community Concessions for Serbian Fishery Products 
Annex V Serbian Concessions for Community Fishery Products 
Annex VI Establishment: Financial Services 
Annex VII Intellectual, Industrial and Commercial Property Rights 
Protocol 4 Land Transport 
Protocol 7 Dispute Settlement 
Source: The Agreement and related annexes. 
 
3  PROVISIONS ON TRADE IN SERVICES 
3.1  Scope and Definitions 3.1.  The relevant aspects of the Agreement for the liberalization of trade in services are contained 
in Title V (Movement of Workers, Establishmen t, Supply of Services, Current Payments and 
Movement of Capital). Chapter I concerns the mo vement of workers, Chapter II Establishment, 
Chapter III Supply of Services, Chapter IV Current payments and movement of capital and Chapter V General provisions. Annex VI contains a li st of financial services, and Protocol 4 details 
the rules applicable to land transport services . Article 55.1 provides that the provisions of 
Chapter II shall not apply to air transport services, inland waterways and maritime cabotage services.  
3.2.  Chapters II and III of Title V address di fferent modes of supply, with Chapter II on 
Establishment covering mode 3 (also covering esta blishment to trade in goods). Article 52 sets out 
the definitions used in the Agreement relating to, inter alia , Community companies and Serbian 
companies, branches, establishment and Financia l services. Through Article 53.1, the Agreement 
provides for full MFN and national treatment upon entry into force, while also maintaining some 
exceptions or restrictions contained in Article 51 (coordination of social security systems) and in certain provisions of Articles 54-56. Chapter III on the supply of services does not provide for 
immediate liberalization but rather establishes a progressive process (Article 59.1). Covering 
essentially modes 1, 2 and 4, Chapter III the Chapter also contains a standstill obligation (Article 60.2). The Stabilization and Association Council may make recommendations for improving 
establishment and operations of these sectors (Article 55). The Stabilization and Association 
Council has not yet made any concrete recommendations for improving establishment and operations of these sectors.. The Parties advised that EU accession negotiations are at the stage of bilateral screenings of the relevant chapters and full liberalization had not yet been achieved.  
3.3.  The provisions of Title V do not apply to ac tivities in the territory of either Party that are 
connected, even occasionally, with the exercise of official authority (Article 65.2). This provision is connected to Article 51 of the Treaty on the Functi oning of the EU; and states that the provisions 
on right of establishment shall not apply, insofar as in any given Member state is concerned, to 
activities which in that state are connected, even occasionally, with the exercise of official authority. The Parties are free to apply their laws and regulations regarding entry and stay, 
employment, working conditions, establishment of natural persons and supply of services, 
provided that, in so doing, they do not apply th em in such a manner as to nullify or impair the 
benefits accruing to any Party under the terms of the Agreement (Article 66).  WT/REG285/3 
 
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 3.2  Denial of Benefits 
3.4.  Article 52(a) provides that a Party may deny the benefits of Title V to a company having only 
its registered office in the EU or Serbia unless "its operations possess a real and continuous link with the economy of one of the EU Member States or Serbia."  
3.3  General Provisions on Trade in Services 
3.3.1  Market access 3.5.  Title V does not contain any explicit market access limitation, comparable to the provisions of 
GATS Article XVI. However, as regards establishment, services may be provided as from the entry 
into force of the Agreement for EU and Serbian companies (Article 53.2).  
3.6.  There are no schedules of concessions on services in the Agreement. The Parties' market 
access liberalization commitments are found in the provisions of Title V, which also contemplate 
discussions on additional liberalization after entry into force of the Agreement (under the auspices 
of the Stabilisation and Association Council).  
3.7.  Article 54 of the Agreement provides that with the exception of financial services described in 
Annex VI, the Parties may regulate the establishment and operation of companies and nationals in 
their territory, insofar as those regulations do not discriminate against companies and nationals of the other Parties in comparison with its own companies and nationals. In respect of financial 
services a Party shall not be prevented from taking measures for prudential reasons, including for 
the protection of investors, depositors, policy hold ers or persons to whom a fiduciary duty is owed 
by a financial service provider, or to ensure the integrity and stability of the financial system (Article 54.2). Article 56.1 provides that the provisions of Articles 53 and 54 do not preclude the 
application by a Party of particular rules concerning the establishment and operation of companies 
in its territory, which are justified by legal or technical differences between such branches, or for prudential reasons in respect of financial services. As noted above, Chapter II on establishment 
covers mode 3 for supply of services, but also applies to establishment to trade in goods.  
3.8.  On cross border supply, Article 59.1 notes that the Parties undertake to take steps to 
progressively allow the cross border supply of services by companies of the Parties established in 
the territory of a Party other than that of the person for whom the services are intended. This 
liberalization process is further described in Article 59.2. 
3.3.2  National and MFN treatment 3.9.  Article 53.1 provides that Serbia shall facilitate the setting up of operations in its territory by 
Community companies and nationals. From the date  of entry into force of the Agreement Serbia 
shall, in respect of the establishment of Co mmunity companies on its territory, provide (a) 
treatment no less favourable than that accorded to its own companies or to any third country 
company, whichever is better, and (b) in relation to the operation of subsidiaries and branches of 
Community companies on the territory of Serbia, once established, treatment no less favourable 
than that accorded to its own companies and branches, whichever is the better. 
3.10.  Article 53.2 provides that from the date of  entry into force of the Agreement the Community 
and its Member States shall grant (a) as regard s establishment of Serbian companies, treatment 
no less favourable than that accorded by Member States to their own companies, or to any company of any third country, whichever is better, and (b) as regards the operation of subsidiaries 
and branches of Serbian companies established in its territory, treatment no less favourable than 
that accorded to their own companies and branches, or to any subsidiary and branch of any third country company, established in their territory, whichever is the better.  
3.3.3  Commercial presence 
3.11.  Chapter II of Title V, Articles 52-58 concern Establishment under Title V of the Agreement. 
Article 53.5 provides that (a) subsidiaries and branches of Community companies shall have the 
right to use and rent real property in Serbia, (b) subsidiaries of Community companies shall have WT/REG285/3 
 
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 the same right to acquire and enjoy ownership rights over real property as Serbian companies and 
as regards public goods and goods of common in terest, the same rights as Serbian companies 
where those rights are necessary for the conduct of the economic activities for which they are 
established. Per Article 53.5(c), four years af ter entry into force of the Agreement, the 
Stabilisation and Association Council shall examine the possibility of extending the rights 
mentioned in Article 53.5(b) to branches of Community companies.  
3.3.4  Movement of natural persons 
3.12.  Chapter I of Title V, Articles 49-51, concerns the Movement of Workers. Article 49.1 
provides that subject to the conditions and modalities applicable in each Member State, (a) treatment accorded to workers of Serbian na tionality and who are legally employed in the 
territory of a Member State shall be free of any discrimination based on nationality as regards 
working conditions, remuneration or dismissal, co mpared to nationals of that Member state, and 
(b) the legally resident spouse and children of a worker legally employed in the territory of a Member State (excepting seasonal workers and workers subject to bilateral treaties per Article 50) 
shall have access to the labour market of that Member state, during the period of that worker's 
authorised stay of employment. Article 49.2 prov ides that Serbia shall accord the treatment 
referred to in Article 49.1 to workers who are nationals of an EU Member State as well as to their 
spouses and children who are legally resident in Serbia.  
3.13.  Article 50.1 provides that taking into account the situation in the labour market in EU 
Member States, and subject to their legislation and compliance with the rules in force in relation to mobility of workers, (a) the existing facilities for employment for Serbian workers accorded by EU 
Member States under bilateral Agreements (between those Member States and Serbia) should be 
preserved, and if possible improved, and (b) other EU Member States shall examine the possibility 
of concluding similar arrangements. Article 50.2 provides that after three years the Stabilisation 
and Association Council shall examine the granting of other improvements, including facilities for 
access to professional training, in accordance with the rules and procedures in force in the EU Member States, and taking into account the situation in the labour market in the EU and its 
Member States.  
3.14.  Article 53.4 provides that four years from entry into force of the Agreement the Stabilisation 
and Association Council shall establish detailed arrang ements to extend the provisions of Article 53 
(right of establishment of companies, subsidiaries and branches) to the movement of natural 
persons of EU Member States and Serbia so that they can take up economic activity as 
self-employed persons.  
3.15.  Article 58.1 provides that a company of one Party (Serbia or EU) established in the territory 
of the other Party shall be entitled to employ its own nationals in the company provided that they 
are key personnel as defined in Article 58.2. Work permits shall cover only the period of such employment. Article 58.2 defines the "key personnel" as "intra-corporate transferees". The 
employing organization (as defined in Article 58.2( c)) shall be a legal person and those personnel 
must have been in its employ for at least one year. Article 58.2 describes the categories of natural persons, senior officers, experts and intra-corporate transferees which both Parties have agreed to permit to enter and remain in their respective territories during the period of employment.  
Table 3.1 Movement of natural persons (Article 58) Serbia and Community 
Category Migratory Condition Length of Stay 
Senior officer Senior position in organization, 
primarily management, receiving 
general supervision or direction from Board of Directors or shareholders (Article 58.2(a) and 58.3 apply) non sales work, company headquartered in home territory Period of employment 
Expert 
 Natural person with "uncommon 
knowledge" essential to the 
establishment's business, may include 
high level of qualifications or 
experience (Art icle 58.2(b))  Period of employment WT/REG285/3 
 
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 Category Migratory Condition Length of Stay 
Intra-Corporate transferee/Key 
personnel 
 Natural person working within an organization pursuing economic activities in the te rritory of the other 
Party on a temporary basis, organization to be headquartered in its 
home territory Period of employment 
 
3.16.  The Parties are required to permit the temporary movement of natural persons providing 
the services or who are employed as key personnel as defined in Article 58, including natural persons who are representatives of a company or national of a Party and are seeking temporary 
entry for the purpose of negotiating the sale of services for that service provider, where those 
representatives will not be engaged in making dire ct sales to the general public or in supplying 
services themselves. Article 59.3 provides that afte r 4 years of entry into force of the Agreement, 
the Stabilisation and Association Council shall take the measures necessary to progressively 
implement the provisions of Article 59.1.  
3.17.  In respect of its commitments under the GATS, under its horizontal commitments in the 
EU's GATS schedule, the EU has made commitments  for intra-corporate transfers (ICTs), business 
visitors (BVs) and contractual service suppliers ("CSSs") subject to conditions which vary for 
individual EU Member States. For a majority of EU Member States, in the case of ICTs, the natural person must work within a juridical person, other than a non-profit making organization, 
established in the territory of a WTO Member and have been employed or been a partner in it for 
at least the year immediately preceding the date of admission. The natural person is temporarily transferred to provide a service through commercia l presence in the territory of the EU Member 
State concerned. For three EU Member States an economic needs test is required.  
3.18.  The duration of temporary stay for ICTs is defined by individual EU Member States. The 
category of business visitor applies to i) servic e sellers seeking temporary entry to negotiate the 
sale of services and ii) those in a senior position, within a juridical person, responsible for the 
setting up of a commercial presence of a service provider (but not engaged in making direct sales 
or supplying services). The duration of temporary stay of BVs is defined by individual EU Member 
States. Seventeen EU Member States have sched uled horizontal commitments on CSSs which 
apply to natural persons engaged in the supply of a service on a temporary basis as employees of 
a juridical person, who has no commercial presence  in any EU Member State. The temporary entry 
and stay is for a period of three months in any 12 month period (in the case of most EU Member 
States which have scheduled commitments on CSSs). The services contract has to be obtained in a 
predefined list of activities.
4 
3.19.  As a non-WTO Member, Se rbia has no GATS Schedule.  
3.4  Liberalization Commitments 
3.4.1  General Overview 
3.20.  The structure of the Agreement follows neither a typical "negative" nor "positive" list 
approach. As a non-WTO Member, Serbia has no  GATS Schedule. The comparison below is 
therefore made between the EU's GATS commitm ents and the commitments entered into under 
the Agreement by both the EU and Serbia.  
                                               
4 These are legal services; accounting services; taxati on advisory services; arch itectural services, urban 
planning and landscape architectural services; engineerin g services, integrated engineering services: computer 
and related services; research and development services; ad vertising; management consulting services; 
services related to management consulting; technical testing and analysis services; related scientific and 
technical consulting services; translation services; co nstruction services, site investigation work; higher 
education services; travel agencies and tour operator services; entertainment services; services related to the sale of equipment or to the assignment of a patent. WT/REG285/3 
 
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 3.4.1.1  EU's GATS commitments 
3.21.  In its GATS schedule, the EU has made commitments in 115 of 155 services sectors. 5 It has 
scheduled extensive commitments, including on fina ncial services, telecommunications, transport, 
tourism and professional services, subject to individual EU Member State limitations. The EU did 
not commit postal and audiovisual services and space transport services and scheduled MFN 
exemptions in a number of sectors including audiovisual services, transport services, and publishing.
6 
3.22.  In its GATS schedule the EU maintains a horizontal "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 65.2).  
3.23.  Individual EU Member States maintain a number of horizontal reservations concerning 
conditions for commercial presence (mode 3) in th e EU's GATS schedule, particularly with regard 
to the composition of the board of directors or pe rmitted 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. Such reservations have not been scheduled under the Agreement.  
3.24.  With regard to investment, horizontal limitations are listed by about half of the EU's Member 
States in their GATS services schedule. Such reservations are not indicated under the Agreement. Accordingly the access granted is more liberal. Though the Agreement does not contain a specific section on investment, the provisions related to mode 3, particularly in the context of Chapter II of 
Title V (Establishment), partially covers investment-related measures.  
3.25.  In the GATS schedule, a number of Member States have scheduled reservations on real 
estate purchases. Under the Agreement, there is no particular reservation on real estate, and 
accordingly the access granted under the Agreement is more liberal.  
3.4.1.2  Serbia's GATS commitments 3.26.  Serbia is not a WTO Member and accordingly has no GATS schedule. 
3.4.1.3  The Parties liberalizatio n commitments under the Agreement 
3.27.  Under the Agreement, subsidiaries and branches of EU companies have the right, as from 
the date of entry into force of the Agreement to us e and rent real property in Serbia (Article 53.5). 
Subsidiaries and branches of EU companies have the right to acquire and own real estate in Serbia 
where such rights are necessary for the conduc t of economic activities for which they are 
established excluding natural resources, agricultural land, forests and forestry land. Four years after the entry into force of the Agreement, the St abilization and Association Council shall establish 
the modalities for extending such rights to excluded sectors. 
3.28.  Serbia has authorized (as from the entry into force of the Agreement) the acquisition of real 
estate in Serbia by EU nationals, except for its scheduled limitations in the GATS. Within four years 
from the entry into force of the Agreement, Serbia shall progressively adjust its legislation to offer 
national treatment to EU nationals in this regard (Article 63.3). Commitments under the Agreement are defined along the lines of GATS definitions.  
                                               
5 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. 
6 Based on the EU(12) list of MFN exemptions. MF N exemptions have also been scheduled by the 
15 countries which acceded to the EU since 1995.  WT/REG285/3 
 
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 3.4.1.4  Sector-specific commitments 
3.4.1.4.1  Business services 
3.29.  The EU's GATS schedule contains commitmen ts in all 11 sub-sectors of the professional 
services category.7  
3.30.  In legal services, more than half of the EU Member States have reservations, particularly for 
mode 3 in the form of type of legal entity or nationality requirements. Accounting, auditing and 
bookkeeping services are also subject to reservatio ns in the EU GATS schedule, again for mode 3. 
Architectural services are subject to nationality and residence requirements in some EU Member 
States under the GATS. Medical and dental services , veterinary services and services provided by 
midwives, nurses, physiotherapists and para-medical personnel are in some cases unbound for mode 3 under the GATS, are subject to nationality requirements, or access is restricted to natural 
persons.  
3.31.  Computer and Related Services are for the most part fully committed for modes 1-3 under 
the GATS for all EU Member States (except Cypr us, Malta, Poland, and Slovak Republic). No 
commitments were made in research and development on natural sciences and interdisciplinary 
R&D services by most EU Member States in modes 1-3, while real estate services is unbound in modes 1-3 for about half EU Member States. For rental/leasing services without operators, modes 
1-3 are unbound for some EU Member States, principally in the case of the recently acceded 
members. Under other business services, all sub-sectors are committed by the majority of EU Member States, though restrictions remain, in particular, in services incidental to manufacturing, placement and supply, investigation and security services, where modes 1-3 remain unbound for a 
number of EU Member States. The provision of bu siness services through mode 4 for ICTs and BVs 
(where not unbound), is subject to nationality and residency requirements in a number of EU 
Member States. For a number of sub-sectors, CSSs are unbound (except for those sub-sectors 
positively listed in the EU's horizontal commitments). 
3.32.  Under the Agreement, there are no national treatment restrictions on professional services 
in relation to mode 3 (or "establishment" more broadly, as defined under the Agreement). Further, 
the provision of such services through other modes of supply was bound at the existing level of 
restrictiveness.  
3.4.1.4.2  Communication services 3.33.  The EU has no GATS commitments in postal  and audiovisual services. For courier services, 
modes 1-3 remain unbound for the majority of  EU Member States. For telecommunication 
services, the EU's commitments under the GATS include "all services consisting of the transmission and reception of signals by any electrom agnetic means, excluding broadcasting". 
Telecommunication services is, for the most part, subject to full commitments by the majority of 
EU Member States; mode 1 is unbound for Cyprus and Malta and equity ceilings on mode 3 exist for a small number of EU Member States. The EU  GATS schedule also incorporates the Reference 
Paper obligations for basic telecommunications services. For mode 4, ICTs and BVs are, for most 
EU Member States, unbound except as indicated in the horizontal section of the EU's schedule. CSSs are unbound for all EU Member States in communication services. 
3.34.  Under the Agreement, there are no national treatment restrictions on communication 
services in relation to mode 3 (or "establishment" more broadly, as defined under the Agreement). 
Further, the provision of such services through other modes of supply was bound at the existing 
level of restrictiveness.  
3.4.1.5  Construction and related engineer ing services, and distribution services 
3.35.  The EU GATS schedule shows variations in the sector scope for the Czech Republic, the 
Slovak Republic, and Sweden (which exclude CPC 515 and 518 from their GATS commitments), 
                                               
7 The EC schedule contains 13 specific entries; archit ecture and engineering servic es, as well as auditing 
and bookkeeping services have been sp lit into separate categories; the schedule includes "related scientific and 
technical consulting services" as an "other" professional service. WT/REG285/3 
 
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 Finland (which excludes CPC 511, 515, 517, an d 518), Latvia (excludes 511), and Slovenia 
(excludes 518).8 I n  t h e  G A T S  s c h e d u l e ,  f i v e  n e w l y  a c c e d e d  E U  M e m b e r  S t a t e s  h a v e  n o  
commitments in mode 3. There are no commitments in commission agents' services in modes 1-3 for the majority of the newly acceded EU Members in the GATS schedule including mode 1 
limitations for France and Italy. For wholesale trade services, market access limitations in certain 
products are registered in France (for pharmacies, tobacco and matches), and Estonia, Italy, and Portugal (for tobacco) for modes 1 and 3. Retailing is limited in scope for some EU Member States 
and remains subject to an economic needs test in  some EU Member States, while franchising is 
unbound in modes 1-3 for three newly acceded EU Member States and Sweden. For mode 4, ICTs and BVs are unbound except as indicated in the horizontal part of the EU's schedule with additional commercial presence or nationality conditions for a few EU Member States. For CSSs, defined 
professional qualifications and experience are required in the case of construction services in some 
EU Member States. In distribution services, CSSs are unbound for all EU Member States. 
3.36.  Under the Agreement, there are no national treatment restrictions on construction, related 
engineering services, and distribution services in relation to mode 3 (or "establishment" more 
broadly, as defined under the Agreement). Further,  the provision of such services through other 
modes of supply was bound at the existing level of restrictiveness.  
3.4.1.6  Educational services 
3.37.  In the EU's GATS schedule, the provision of educational services is limited to privately 
funded services. In some EU Member States, th e provision of such services is dependent on 
n a t i o n a l i t y  o r  l i c e n s i n g  a p p r o v a l ,  m a i n l y  f o r  m o d e  3 .  F o r  I C T s  a n d  B V s  u n d e r  m o d e  4 ,  t h e  
nationality condition is applied by some EU Member States. The majority of EU Member States 
have no commitments for CSSs in higher education services.  
3.38.  Under the Agreement, there are no national treatment restrictions on educational services in 
relation to mode 3 (or "establishment" more broa dly, as defined under the Agreement). Further, 
the provision of such services through other modes of supply was bound at the existing level of restrictiveness  
3.4.1.7  Environmental services 
3.39.  In the EU GATS schedule, modes 2-3 of all sub-sectors of environmental services are 
unbound for a handful of EU Member States, prin cipally the recently acceded members. For mode 
1 in all sub-sectors, some of the recently acceded EU Member States have not registered 
limitations, particularly Estonia, which has consistently scheduled no limitations in all sub-sectors. 
Mode 4 for ICTs and BVs is unbound except as indicated in the horizontal section for most EU Member States (and unbound for the rest). C SSs are unbound for all EU Member States.  
3.40.  Under the Agreement, there are no national treatment restrictions on environmental 
services in relation to mode 3 (or "establishment" more broadly, as defined under the Agreement). Further, the provision of such services through other modes of supply was bound at the existing 
level of restrictiveness.  
3.4.1.8  Financial services 3.41.  In the EU GATS schedule, 18 Member States took commitments in accordance with the 
provisions of the "Understanding on Commitments in Financial Services" (hereinafter the 
Understanding), while the remaining Member States made commitments on the basis of the 
traditional scheduling approach. For those EU Member States which scheduled their GATS commitments in accordance with the Understanding, in insurance and insurance-related services, a 
number of countries scheduled reservations allo wing only EU established companies to offer 
insurance services or requiring a specific legal form. In banking and other financial services, mode 
                                               
8 Specifications of the services activities are: CPC 511 - pre-erection work at construction sites; CPC 512 
- construction work for buildings; CPC 513 - construction  work for civil engineering; CPC 514 - assembly and 
erection of pre-fabricated constructions; CPC 515 - special trade construction work; CPC 516 - installation 
work; CPC 517 – building completion and finishing work ; CPC 518 - renting services related to equipment for 
construction or demolition of buildings or  civil engineering works, with operator. WT/REG285/3 
 
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 3 in particular is subject to a number of reservations, regarding forms of establishment or licensing 
requirements. For ICTs and BVs under mode 4, nationality and/or residency conditions are applied 
by some EU Member States. CSSs are unbound for those 18 Member States under the Understanding.  
3.42.  Under the Agreement, the Parties may take measures for prudential reasons, including for 
the protection of investors, depositors, policy hold ers or persons to whom a fiduciary duty is owed 
by a financial service supplier, or to ensure the integrity and stability of the financial system 
(Article 54.2).  
3.4.1.9  Health related and social services 3.43.  In the EU's GATS schedule, mode 3 for hospital services is unbound for six EU Member 
States and subject to authorization or economic needs tests in a number of others. Modes 1-3 of 
other human health and other health related services are unbound for most EU Member States. 
For social services, mode 3 is unbound for eight EU Member States. Mode 4 is unbound for some EU Member States for ICTs and BVs and subject to  nationality condition or prior authorization in 
others. CSSs are unbound in all EU Member States. 
3.44.  Under the Agreement, there are no national treatment restrictions on health related and 
social services in relation to mode 3 (or "establishment" more broadly, as defined under the 
Agreement). Further, the provision of such services through other modes of supply was bound at 
the existing level of restrictiveness  
3.4.1.10  Tourism and travel related services  and recreational, cultural and sporting 
services 
3.45.  In the EU's GATS schedule, for hotels, restaurants and catering, mode 1 is unbound except 
for catering for a number of EU Member States . For mode 3, seven EU Member States have 
scheduled reservations on market access, e.g., requiring authorization in order to protect areas of 
particular historic and artistic interest. For travel agencies and tour operators services, mode 1 is 
unbound for a handful of EU Member States, while mode 3 is subject to licensing or economic needs tests for five EU Member States. In addi tion, for a few EU Member States, cross-border 
provision of such services requires establishment. Tourist guide services is unbound in modes 1-3 
for a majority of the newly acceded EU Member States, while modes 1-3 of other tourism and travel related services are unbound for all EU Member States except Latvia. For mode 4, ICTs and BVs are unbound for some EU Member States, whil e CSSs are unbound for all EU Member States 
except for travel agencies and tour operators services in which a number of EU Members have 
made commitments subject to limitations indicated in the horizontal section.  
3.46.  In the EU's GATS schedule, for entertainment services, mode 1 is unbound for all but three 
EU Member States, while mode 3 is unbound for seven. Modes 1-3 of news and press agency 
services is unbound for most recently acceded EU Member States, while in France, Italy and Portugal foreign participation in companies publishing publications is subject to an equity ceiling. 
For almost all EU Member States, modes 1-3 of libraries, archives, museums and other cultural 
services is uncommitted. In the case of sporting and other recreational services, modes 1-3 are uncommitted for a number of the recently acceded EU Member States. As regards mode 4, ICTs, 
BVs and CSSs are unbound for a number of EU Member States.  
3.47.  Under the Agreement, there are no national  treatment restrictions on tourism and travel 
services, and recreational, cultural and sporting services in relation to mode 3 (or "establishment" more broadly, as defined under the Agreement). Further, the provision of such services through 
other modes of supply was bound at the existing level of restrictiveness  
3.4.1.11  Transport services 3.48.  In its GATS schedule most EU Member States have no commitments in modes 1-3 in 
maritime transport and inland waterways transport services (exceptions are some of the newly 
acceded EU Member States which have in some cases, with the exception of rental of vessels with crew which is not listed in the EU's schedule, made full commitments in this sub sector). In air WT/REG285/3 
 
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 transport services, rental of aircraft with crew is unbound in modes 1-3 for all EU Member States 
except Poland. Maintenance and repair of aircraft and parts thereof, sales and marketing and 
computer reservations systems are fully committed in modes 2-3 in most EU Member States (for the most part, the newly acceded Member States have not bound these sub-sectors). There are no 
commitments in space transport in the EU GATS  schedule and for most Member States in rail 
transport services, passenger and freight transpor tation and rail freight agency and forwarding 
services. Modes 2-3 of maintenance and repair of rail transport equipment is fully committed for 
the majority of EU Member States, while pushing and towing services under rail transport services 
has not been scheduled.  
3.49.  Under the EU GATS commitments in road  transport services, mode 3 of passenger and 
freight transportation is either unbound or subject to reservations in the form of authorization or 
economic needs tests, while maintenance and repa ir of road transport equipment and supporting 
services for road transport equipment are unbound in modes 1-3 for a number of EU Member States. Rental of commercial vehicles with operator under road transport services has not been 
scheduled. With the exception of Hungary and Lithua nia, pipeline transport is unbound for all EU 
Member States. A number of EU Member States have no commitments in services auxiliary to all modes of transport and other transport services. Fo r mode 4, ICTs, BVs and CSSs are for the most 
part unbound for most EU Member States except some of the newly acceded Member States which 
have made commitments subject to horizontal limitations. 
3.50.  Under the Agreement, Article 55.1 under Chapter II (Establishment) specifies that the 
provisions on establishment do not apply to air transport services, inland waterways transport 
services and maritime cabotage services. The Stabilisation and Association Council may however 
make recommendations for improving establishment and operations in these areas. No recommendations have been made to date. Article 108 of Title VIII also encourages cooperation 
on Transport.  
3.5  Regulatory Provisions 3.5.1  Domestic regulation 
3.51.  The Agreement does not contain any provision equivalent to GATS Article VI, however, 
Title VI on the approximation of Serbian legislation to that of the Community covers measures governed by GATS Article VI.  
3.5.2  Recognition 
3.52.  Article 57 provides that the Stabilisation and Association Council shall examine which steps 
are necessary for mutual recognition of qualifications, in order to make it easier for Community and Serbian nationals to take up and pursue regulated professional activities in the territory of the 
other Party.  
3.5.3  Subsidies 3.53.  The Agreement has no specific provisions on subsidies on trade in services, although the 
Parties noted that the standard provisions on Stat e aid in Article 73 of the Agreement do apply to 
services as well.  
3.5.4  Safeguards 3.54.  Article 63.6 provides that when, in exceptional circumstances, movements of capital 
between the Community and Serbia cause, or threaten  to cause serious difficulties in the operation 
of exchange rate policy or monetary policy in the Community or Serbia, they may respectively take safeguard measures with regard to movements of capital between the Community and Serbia 
for a period not exceeding six months if such measures are strictly necessary.  WT/REG285/3 
 
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 3.5.5  Other  
3.55.  Chapter V of Title V of the Agreement, Arti cles 65-71 set out general provisions on services. 
Under Article 65.1 the provisions of Title V shall be applied except as necessary on the grounds of public policy, public security or public health. Ar ticle 65.2 provides that the provisions of Title V 
shall not apply to activities in the territory of a Party that are connected, even occasionally, to 
exercise of official authority. Article 66 notes that nothing in the Agreement shall prevent the 
Parties from applying their laws and regulation s regarding entry and stay, employment, working 
conditions, establishment of natural persons and supply of services, notably insofar as the 
granting, renewal or refusal of a residence permit is concerned, provided that they are not applied 
in such as manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of this Agreement (without  prejudice to the application of Article 65). 
3.56.  Article 67 provides that companies which are controlled and exclusively owned jointly by 
Serbian companies, or nationals of Serbia and Community companies or nationals shall also be covered by the provisions of Title V.  
3.6  Sector-Specific Provisions 
3.6.1  Financial services 3.57.  Annex VI of the Agreement concerns Financial Services, and sets out definitions to be used 
in Title V, Chapter II. It incorporates most of the definitions found in the GATS Annex on Financial 
Services, Article 5(a)(i)-(xvi). Annex VI of the Agreement specifically excludes (a) activities carried on by central banks or other public institutions in pursuit of monetary and exchange rate policies, (b) activities conducted by central banks, government agencies or departments, or public 
institutions, for the account or with the guarantee of the government, except when those activities 
may be carried out by financial service providers in competition with such public entities, and (c) activities forming part of a statutory system of social security or public retirement plans, except 
when those activities may be carried out by financial providers in competition with public entities 
or private institutions. Article 91 of Title VIII also encourages cooperation between Serbia and the EU related to the Community acquis .  
3.6.2  Transport services 
3.6.2.1  General provisions 3.58.  Article 61.6 provides that Serbia shall adapt its legislation, including administrative, 
technical and other rules to that of the Community existing at any time in the field of air, 
maritime, inland waterway and land transport insofar as it serves liberalization purposes and 
mutual access to markets of the Parties and facilitates the movement of passengers and goods. Article 61.7 notes that the Stabilisation and Association Council shall examine ways of creating the 
conditions necessary for improving freedom to provide air, land and inland waterway transport 
services.  
3.6.2.2  Land transport 
3.59.  Article 61 concerns the supply of transport services between the Parties. It provides that in 
relation to land transport, Protocol 4 to the Agreement lays down the rules applicable between the Parties in order to ensure unrestricted road transit traffic across Serbia and the Community as a whole, the effective principle of non-discriminatio n and progressive harmonization of the transport 
legislation of Serbia with the Community. The broad liberalization across all modes of supply set 
out in Title V appears to be subject to the excl usive provisions of Protocol 4. Article 11.1 of 
Protocol 4 provides that access to road transport markets is regulated by bilateral Agreements 
between each Member State and Serbia.  
3.60.  Protocol 4 seeks to ensure unrestricted road transit traffic across Serbia and the EU and the 
application of the principle of non- discrimination and progressive harmonization of Serbian 
transport legislation with that of the EU, in the context of Article 11.1 of Protocol 4. Protocol 4 
applies to infrastructure, rail and combined transport, and road transport (Article 2). With regard WT/REG285/3 
 
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 to rail and combined transport, the Parties agreed to adopt mutually coordinated measures 
necessary for the development and promotion of rail and combined transport as a means of 
ensuring that in the future a major proportion of their bilateral and transit transport through Serbia takes place under more environmentally-friendly conditions (Article 7 of Protocol 4). In road 
transport, the Parties agree to grant unrestricted access to the EU transit traffic through Serbia 
(defined as the carriage, by a carrier established in the EU, of goods in transit through Serbian territory en route to or from an EU Member State) and to Serbian transit traffic (defined as the 
carriage, by a carrier established in Serbia, of good s in transit from Serbia through the EU territory 
and destined for a third country or of goods from a third country destined for Serbia (Article 11.2)) 
through the EU from the date of entry into forc e of the Agreement. Under the Agreement there are 
no reservations listed for space and pipeline transport, thereby effectively liberalizing 
establishment in these sectors. 
3.6.2.3  International maritime transport 3.61.  On international maritime transport, in Article 61 the Parties have agreed to undertake to 
apply effectively the principle of unrestricted access to the international maritime markets and 
trades on a commercial basis, and to respect international and European obligations in the field of safety, security and environmental standards, and have affirmed their commitment to a freely 
competitive environment as an essential feature of  international maritime transport. Article 61.3 
provides that in applying Article 61.2, the Parties shall (a) not introduce cargo-sharing clauses in future bilateral Agreements with third countries, (b) abolish all unilateral measures and administrative, technical and other obstacles that could have restrictive or discriminatory effects 
on the free supply of services in international maritime transport, and (c) each Party shall grant no 
less favourable treatment for the ships operated by nationals or companies of the other Party than that accorded to a Party's own ships with regard to access to ports, open to international trade, 
the use of infrastructure and auxiliary maritime serv ices of the ports, as well as related fees and 
charges, customs facilities and the assignment of berths and facilities for loading and unloading.  
3.6.2.4  Air transport 
3.62.  Article 61.4 provides that with a view to ensuring coordinated development and progressive 
liberalization of transport between the Parties adapted to their reciprocal commercial needs, the conditions of mutual market access in air transport shall be dealt with by the European Common Aviation Area (ECAA). Article 61.5 provides that until the ECAA is completed the Parties shall not 
take any measures which are more restrictive or discriminatory as compared with the situation 
existing prior to the entry into force of this Agreement.  
4  GENERAL PROVISIONS OF THE AGREEMENT 
4.1  Transparency 
Apart from the general requirements of Title X of the Agreement (Institutional, General and Final 
Provisions), there are no specific provisions on tr ansparency in the Agreement, although Title VIII 
on cooperation policies recommends cooperation in several areas, which implies an information 
exchange, for example Article 90 on Statistical Cooperation.   4.2  Payments and capital movements 
4.1.  Chapter IV of Title V, Articles 62-64 concern current payments and movement of capital. 
Article 62 provides that the Parties undertake to authorise, in freely convertible currency, in accordance with Article VIII of the Articles of the Agreement of the International Monetary Fund, 
any payments and transfers on the current a ccount of balance of payments between the 
Community and Serbia. 
4.2.  Article 63.1 provides that for transactions on the capital and financial account of balance of 
payments, the Parties shall ensure the free movement of capital relating to direct investments 
made in companies formed under the law of the host state and Articles 52-58 of the Agreement and the liquidation or repatriation of those investments and of any profit stemming therefrom. Article 63.2 concerns transactions on the capital and financial account of balance of payments and 
provides that the Parties shall ensure the free movement of capital relating to credits related WT/REG285/3 
 
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 commercial transactions or to the provision of services in which a resident of one of the Parties in 
participating, and to financial loans and credits of more than one year maturity. 
4.3.  In Article 63.3, Serbia has agreed to authorise the acquisition of real estate by nationals of 
Member states of the EU. Within 4 years of the date of entry into force, Serbia shall progressively 
adjust its legislation concerning acquisition of real estate to grant national treatment to nationals 
o f  E U  M e m b e r  s t a t e s  i n  c o m p a r i s o n  t o  i t s  o w n  nationals. Article 63.4 provides that the Parties 
shall, four years after entry into force of the Agreement, ensure free movement of capital relating 
to portfolio investment and financial loans and credits with a maturity less than one year. 
Article 63.7 provides that none of Article 62 and 63  shall prevent any economic actors from taking 
the benefit of any more favourable treatment that may be provided for in any bilateral or multilateral Agreement involving the Parties. 
4.4.  During the first four years of the Agreemen t the Parties shall take measures permitting the 
creation of the necessary conditions for the further gradual application of Community rules on the free movement of capital (Article 64.1). Four years after the entry into force of the Agreement, the 
Stabilisation and Association Council shall determine detailed arrangements for full application of 
Community rules on the movement of capital in Serbia. 
4.3  Exceptions 
4.5.  Pursuant to Article 65, the provisions of Title V do not apply to limitations justified on the 
grounds of public policy, public security or pu blic health. Article 127 of Title X (Institutional, 
General and Final Provisions) contains a security exception.  
4.6.  Article 68.1 provides that MFN treatmen t granted under Title V shall not apply to tax 
advantages that the Parties are providing or will provide in the future on the basis of agreements 
designed to avoid double taxation or other tax arrangements. Per Article 68.2, nothing in Title V shall prevent the adoption or enforcement of an y measure aimed at preventing the avoidance or 
evasion of taxes pursuant to such agreements.  
4.4  Accession 4.7.  There are no provisions in the Agreemen t on accession to the Agreement. The Agreement 
may be terminated on 6 months' notice by either Party to the other (Article 133). The Parties 
noted that the Agreement is the EU response to the future prospect of EU accession as indicated in 
the preamble to the Agreement paragraphs 5 and 19. 
4.5  Institutional framework 
4.8.  Title X, Articles 119-139 deal with institut ional, general and final provisions. Articles 120-124 
set out the functions of a Stabilisation and Association Council. The Council's tasks are to, inter alia  
supervise the application and implementation of  the Agreement; and have the power to take 
decisions that are binding on the Parties within  the scope of the Agreement (Article 121). The 
Council is assisted in its work by a Stabilisation and Association Committee - to which the Council may delegate any of its powers (Article 122). Per Article 123, the Committee may create 
sub-committees. Per Article 123 a sub-committee on "migration issues" has been created. The 
Parties noted that 7 sub-committees were established by Decision 1/2014 of 4 March 2014 of the Stabilisation and Association Committee, in pa rticular: 1. Subcommittee for Trade, Industry, 
Customs and Taxation; 2. Subcommittee for Agriculture and Fisheries; 3. Subcommittee for 
Internal Market and Competition; 4. Subcommittee for Economic and Financial Issues and 
Statistics; 5. Subcommittee for Justice, Freedom and Security; 6. Subcommittee for Research and 
Innovation, Information society and social policy; 7. Subcommittee for transport, energy, 
environment, climate action and regional development. 
4.6  Government Procurement 4.9.  Article 76 of the Agreement concerns public  procurement. Article 76.1 provides that the EU 
and Serbia consider that the opening up of th e award of public contracts on the basis of 
non-discrimination and reciprocity, following in particular WTO rules is a desirable objective. WT/REG285/3 
 
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 Article 76.2 provides that Serbian companies (whether based in Serbia or the EU) shall be granted 
access to contract award procedures in the EU under treatment no less favourable than that 
accorded to EU companies as from the date of en try into force of the Agreement. This provision 
shall also apply to the utilities sector, once Serbia has introduced EU legislation in the area 
(subject to review by the EU). Article 76.3 provides that EU companies established in Serbia under 
Title V of the Agreement shall be granted access to contract award procedures in Serbia under treatment no less favourable than Serbian companies. Article 76.4 provides that for EU companies 
not based in Serbia, shall be granted access to co ntract award procedures in Serbia pursuant to 
the Serbian Law on Public Procurement no less than 5 years after entry into force of the Agreement. Preferences provided to Serbian comp anies shall be converted into price preferences 
per a timetable set out in Article 76.4.  
4.7  Intellectual property 
4.10.  Under Article 75 and Annex VII of the Agreement, the Parties agree to grant to each others' 
companies and nationals, in respect of the recognition and protection of intellectual, industrial and 
commercial property, treatment no less favourable than that granted by them to any third party 
under a bilateral agreement (Article 75.2). Serbia shall take the necessary measures to guarantee no later than five years after the Agreement enters into force, a level of protection of intellectual, 
industrial and commercial property rights, similar to that existing in the EU including effective 
m e a n s  o f  e n f o r c i n g  t h e s e  r i g h t s  ( A r t i c l e  7 5 . 3 ) .  I t  w i l l  a l s o  a c c e d e  d u r i n g  t h i s  p e r i o d  t o  t h e  multilateral conventions under Annex VI of th e Agreement. The Stabilisation and Association 
Council may also oblige Serbia to accede to specific multilateral Conventions in this area (Article 
75.4). Any problems in intellectual, industrial or commercial property rights affecting trade shall be 
referred urgently to the Stabilisation and Association Committee at the request of either Party, with a view to reaching a mutually satisfactory solution (Article 75.5). 
4.11.  Article 81 concerns the protection of personal data and requires Serbia to harmonize its 
legislation concerning personal data protection with EU law and other European and international 
legislation on privacy. 
4.12.  Article 105 on Information Society, provides that cooperation shall be developed in all areas 
related to the EU acquis  regarding "the information society". It shall mainly support Serbia's 
gradual alignment of policies and legislation with those of the Community. The Parties also agreed to cooperate with a view further developing the Information Society in Serbia. Global objectives 
will be developing society as a whole for the digital age.  
4.8  Dispute Settlement 4.13.  Dispute settlement under the Agreement is dealt with in under Articles 129 and 130 and 
Protocol 7 of the Agreement.  
4.14.  Under Article 129(2), the Parties will consult promptly through appropriate channels at the 
request of either Party, to discuss any matter conc erning the interpretation or implementation of 
the Agreement and other relevant aspects of their bilateral relations. Article 129(3) requires them 
to refer any dispute relating to the applicatio n or interpretation of the Agreement to the 
Stabilisation and Association Committee which ma y settle the dispute through a binding decision. 
Article 130 describes the procedures to be followed for dispute settlement whereas Protocol 7 
details procedures to be followed for arbitration of a dispute.  
4.15.  When a Party considers that a measure adopte d by the other Party or a failure by that Party 
to act, constitutes a breach of its obligations under the Agreement, it may take appropriate 
measures but before doing so should supply the Stabilisation and Association Council with all 
relevant information with a view to seeking a solu tion acceptable to the Parties (Article 129(4)). 
Priority must be given to those measures which least disturb the functioning of the Agreement. 
The Stabilisation and Association Council decide s on these measures proposed by a Party and 
adopts the decision on the basis of the agreement of the Parties  and must be notified immediately 
to the Stabilisation and Association Committee and be subject to consultations upon request from 
the other Party in the Committee or any other body set up under Articles 123 or 124.  WT/REG285/3 
 
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 4.16.  The Parties shall endeavour to resolve the dispute and reach a mutually acceptable solution 
through good faith consultations in the Stabilisation and Association Committee or other relevant 
body. Per Article 130.3, the dispute will be discussed at every meeting of the Committee until it is 
resolved or arbitration procedures have been initiated under Protocol 7. The dispute will be 
deemed to be resolved once the Stabilisation and Association Committee has taken a binding 
decision or if it declares that there is no longer a dispute. If the Parties fail to resolve the dispute within two months of the initiation of the dispute settlement procedure, they may submit the 
matter for arbitration under Protocol 7 (Article 130.4). 
4.17.  Protocol 7, provides that the Protocol's objective (Article 1) is to avoid and settle disputes 
between the Parties with a view to reaching a mutually acceptable solution, and covers differences in the interpretation and application of the following provisions (Article 2): Title IV (free movement 
of goods, Title V (Movement of workers, establis hment, supply of services, capital); and Title V 
(approximation of laws, law enforcement and competition rules). 
4.18.  Per Article 3 of Protocol 7, where the Parties fail to resolve their dispute, the complaining 
Party may under the conditions of Article 130 of th e Agreement, submit a request in writing for the 
establishment of an arbitration panel to the Party complained against and the Stabilisation and Association Committee. The Panel will notify its ruling to the Parties and the Stabilisation and 
Association Committee within 90 days and in no case later than 120 days from its establishment 
( i n  u r g e n t  c a s e s ,  e v e r y  e f f o r t  w i l l  b e  m a d e  t o  i s s u e  a  r u l i n g  w i t h i n  4 5  u p  t o  a  m a x i m u m  100 days).
9 The Panel's ruling shall set out the findings of fact, the applicability of the relevant 
provisions of the Agreement and the rationale for its findings and conclusions. It may also contain 
recommendations on the measures to be adopted to comply with the ruling (Article 5.3). 
4.19.  Each Party will take any measure necessary to comply with the ruling of the Panel and the 
Parties will endeavour to agree on the reasonable pe riod of time required to comply with the ruling 
(Article 6), which the Party complained against will notify no later than 30 days after the ruling 
(Article 7.1). If the Parties disagree on the reasonable period of time the complaining Party may request the Stabilisation and Association Committee, within 20 days of the notification of the 
reasonable period of time by the Party complained against, to reconvene the original Arbitral 
Panel. The Panel should notify its ruling on the reasonable period within 20 days from the submission of this request. Article 8 requires the Party complained against to notify the other Party 
and the Stabilisation and Association Committee before  the end of the reasonable period of time of 
any measure it has taken to comply with the Panel ruling. If there is disagreement about the 
compatibility of any measure taken and the scope of  the Protocol as in Article 2 (see above), the 
complaining Party may request the original Panel to rule on the matter. Once re-convened the 
Panel will rule within 45 days of the date of its re-establishment (Article 8.2).  
4.20.  If the Party complained against fails to notify measures to comply with the Panel's ruling 
before the end of the reasonable period of time, or if the Panel rules that the measure notified is 
not in conformity with that Party's obligations under the Agreement, the Party complained against 
shall, if requested by the other Party, present an offer for temporary compensation (Article 9). If there is no agreement on compensation within 30 da ys of the end of the reasonable period of time 
or if the Panel rules under Article 8 that the measure taken to comply does not conform with the 
Agreement, the complaining Party is entitled, upon notifying the other Party and the Stabilisation 
And Association Committee, to suspend the applic ation of benefits granted under the provisions 
covered by the Protocol at a level equivalent to the adverse economic impact of the violation. The 
benefits may be suspended 10 days after the date of notification, unless the Party complained 
against has already requested arbitration under paragraph 3 (Article 9.2). The re-convened Panel shall notify its ruling on the level of suspension of benefits to the Parties and the Stabilisation and 
Association Committee within 30 days of the date of request, before which benefits cannot be 
suspended (Article 9.3). The benefits suspended sh all be: consistent with the ruling of the Panel, 
temporary, and applied only until any measure found to violate the Agreement is withdrawn or amended so as to bring it into conformity with the Agreement or until the Parties have agreed to 
settle the dispute. 
                                               
9 The Panel is established on the date on which the chair of the panel is informed of the appointment of 
the panellists as agreed by the Parties, or the date of their selection. If it cannot meet the 90 day deadline, the 
chairperson of the Panel must notify the Parties and th e Interim Committee in writing, stating the reasons for 
the delay (Article 5(1)). WT/REG285/3 
 
- 24 - 
 
 
 4.21.  Compliance with the Panel ruling should  be notified by the Party complained against 
(Article 10.1). The complaining Party may request that the Panel re-convene if there is no 
agreement on the measures taken to comply with  the ruling (Article 10.2). If the Panel decides 
that compliance has not been sufficient it will determine whether the complaining Party can 
continue it suspension of benefits at the original or different level; if it rules that compliance 
conforms with the Agreement, the suspension of benefits will be terminated (Article 10.2). 
4.22.  Unless it decides otherwise, the meetings of  the Arbitral Panel shall be open to the public 
under rules of procedure (and a complementary code  of conduct) established by the Stabilisation 
and Association Committee no later than six months after the entry into force of the Protocol. The rules of conduct have not been established yet The Panel may also, at the request of a Party or on its own initiative, seek information from any source or the opinion of experts as it believes to be 
appropriate (Article 12), information obtained must be shared with the Parties and open to 
comment and interested parties may also submit amicus curiae  briefs to the Panel according to 
rules of procedure established for its proceedings (Article 12).
10 All Panel decisions will be taken by 
majority vote and shall be binding on the Parties (A rticle 14). They will be notified to the Parties 
and to the Council which will make them public unless it decides by consensus not to do so (Article 14). 
4.23.  Once Serbia accedes to the WTO, arbitration panels under the Agreement shall not 
adjudicate disputes on each Party's rights and obligations under the Agreement establishing the 
WTO (Article 16 of Protocol 7. The right of reco urse by the Parties to the dispute settlement 
provisions under the Agreement shall be without prejudice to any action in the WTO, including for 
dispute settlement. However, once a Party has instituted a dispute either under Article 3(1) of the 
Protocol or under the WTO Agreement, it may not institute a dispute on the same measure in the other forum until the first proceeded has ended. The Protocol does not preclude a Party from 
implementing suspension of benefits auth orized by the WTO Dispute Settlement Body. 
4.9  Relationship with other agreements concluded by the Parties 4.24.  Article 131 provides that the Agreement shall not (until equivalent rights for individuals and 
economic operators have been achieved) affect rights accruing through existing agreements 
binding on one or more Member States on the one hand and Serbia on the other. 
4.25.  Table 4.1 below lists the other regional trade agreements to which the Parties are party.  Table 4.1 European Union and Serbia: Participation in other regional trade agreements 
(notified and non-notified, in force), as of 3 June 2014 
 
RTA Name Date of 
entry into 
force Type of 
Agreement  GATT/WTO Notification  
Year WTO Provision 
European Union 
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 - 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 & Services 2008 GATT Art. XXIV & GATS Art. V 
EU - Bosnia and Herzegovina 01.07.08 Goods 2008 GATT Art. XXIV 
EU - Montenegro 01.01.08 
01.05.10 Goods  
Services 2008 
2010 GATT Art. XXIV 
GATS Art. V 
EU - Serbia 01.02.10 Goods 2007 GATT Art. XXIV 
                                               
10 The Panel shall apply and interpret the provisions of the Agreement in accordance with the customary 
rules of interpretation of public international law, including the Vienna Convention on the Law of Treaties, rather than an interpretation of the acquis Communautaire  (Article 13).  WT/REG285/3 
 
- 25 - 
 
 
 RTA Name Date of 
entry into 
force Type of 
Agreement  GATT/WTO Notification  
Year WTO Provision 
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 
Serbia 
EFTA – Serbia 01.10.10 Goods 2010 GATT Art. XXIV 
Turkey – Serbia 01.09.10 Goods 2010 GATT Art. XXIV 
EU – Serbia 01.02.10 Goods 2010 GATT Art. XXIV 
Central European Free Trade 
Agreement (CEFTA) 2006 01.05.07 Goods 2007 GATT Art. XXIV 
Russian Federation – Serbia 03.06.06 Goods 2012 GATT Art. XXIV 
Kazakhstan-Serbia 01.01.11 Goods - - 
Belarus-Serbia 31.03.09 Goods - - 
Protocol on Trade 
Negotiations (PTN) 11.02.73 Goods 1971 Enabling Clause 
 
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 signatory 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. 
 
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