WT/REG 242/M/2 
 
21 October 2016 
(16-5735) Page: 1/4 
Committee on Regional Trade Agreements  
Eighty -second Session   
 
 THE STABILISATION AND AS SOCIATION AGREEMENT (SAA) BETWEEN THE 
EUROPEAN  UNION AND BOSNIA AND HERZEGOVI NA 
(SERVICES ) 
NOTE ON THE MEETING OF 27 SEPTEMBER 2016  
Chairman: Ambassador Daniel BLOCKERT (Sweden)  
1.1.  The 82nd Session of the Committee on Regional Trade Ag reements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/7 /Rev.1  dated 16 September  2016.  
1.2.  Under Agenda Item C.I of the session, the CRTA considered the  Stabilisation and Association 
Agreement (SAA) between the European Union and Bosnia and Herzegovina, services, (hereinafter 
"the Agreement").  
1.3.  The Chairman  recall ed that during the CRTA meeting of 4 March 2009, Members had agreed 
to consider RTAs involving non -Members under the Transparency Mechanism's procedures and had 
agreed tha t those RTAs notified since 14 December 2006, including future notifications, should be 
taken up before the others. Members had made it clear that consideration of such agreements by 
the Committee did not have any implication for the views or positions of any Member with respect 
to the consistency of that RTA with WTO rules and would be without prejudice to the rights and 
obligations of Members under the WTO Agreements, as clearly stated in paragraphs 1 and 5 of the 
Transparency Mechanism Decision. Members had also agreed that the consideration of such 
agreements in the CRTA would be organized under a separate agenda item.   
1.4.  The Agreement had entered into force on 1 June 2015 and had been notified to the WTO by 
the European Union  on 12 January 2016 under Arti cle V:7(a) of the GATS as an Agreement 
providing for the liberalization of trade in services within the meaning of Article V of the GATS 
(document S/C/N/856). The text of the Agreement was available, together with its Annexes, on 
the Parties' official webs ites. 
1.5.  The Factual Presentation on the services aspect (document WT/REG242/2 dated 7 July 2016) 
had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, 
in accordance with paragraph 7(b) of the Transparency Mecha nism for Regional Trade Agreements 
(document WT/L/671). In addition, written questions and replies on th e Agreement had been 
distributed in document WT/REG242/3 dated 14 September 2016.  
1.6.  He proposed to organize the consideration of the Agreement by first as king the Parties and 
then other Members to give any general comments, following which the Committee would turn to 
the specifics of the Agreement.  
1.7.  The representative of the European Union  welcome d the CRTA 's consideration of the 
EU-Bosnia and Herzegovina St abilisation and Association Agreement. She thanked  the Secretariat 
for the preparation of the Factual Presentation and Bosnia and Herzegovina for its fruitful 
cooperation in th e exercise. She thank ed delegations for their questions and the interest showed in 
the consideration of th e Agreement.  
1.8.  Before introducing the Agreement's commitments and disciplines, she made  some general 
remarks, recalling the broader economic and political context within which the Agreement was 
situated . From an economic point of vi ew, the level of Bosnia and Herzegovina's trade integration WT/REG 242/M/2 
 
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  with the EU was high. The EU remain ed Bosnia and Herzegovina 's main trading partner, 
accounting for over 70% of its total exports and 60% of its imports in 2015. The share of net FDI 
inflows from the EU in total net FDI inflows st ood at nearly 63%.  
1.9.  Bosnia and Herzegovina  had a European perspective , as had all countries of the Western 
Balkans , as recognised during the Feira European Council in 2000 and confirmed by the 
Thessaloniki European Council  in 2003. Th e European perspective was integrated into the 
Stabilisation and Association Process, which was  the EU's policy in relation to the countries of the 
Western Balkans.  
1.10.   The SAA wa s the EU 's response to the future prospect of EU accession and it ha d served as 
the framework for EU negotiations with all countries of the Western Balkans. Therefore, while 
establishing a free trade area between the EU and Bosnia and Herzegovina, it wa s also designed to 
prepare the country to accede to the EU and participa te in its internal market, identifying common 
political and economic objectives and encouraging  regional cooperation.  
1.11.   The SAA had succeed ed the Interim Agreement on Trade and Trade Related Matters which 
had entered into force on 1 July 2008 implementing th e provisions on trade in go ods as well as 
other provisions,  notably competition rules and intellectual property rights.  The day's  discussion 
would  focus only on the services aspects of the Agreement as the provisions already implemented 
by the Interim Agre ement had been considered by the CRTA  at its 72nd Session  on 8 April 2014.  
1.12.   She present ed the main elements of the services aspects of the Agreement contained in 
Title V.  Overall, it provide d for substantial sectoral coverage, since all sectors were includ ed, with 
the only exceptions of air transport services, inland waterways transport services, and maritime 
cabotage services.  However, she stress ed that the Stabilisation and Association Council might  
make recommendations for improving establishment and ope rations in those areas. Furthermore, 
the Agreement cover ed all modes of supply (cross -border, establishment and temporary 
movement of persons), with no a priori exclusions. Additionally, the Agreement establishe d the 
elimination of existing discriminatory measures based on nationality and require d that Parties 
grant national treatment for the establishment and operation of companies and nationals from the 
entry into force of the Agreement.  The Agreement provide d also for the temporary movement of 
service su ppliers.  
1.13.   The Agreement provide d for the progressive liberalisation of the supply of services between 
the Parties, in accordance with the progress achieved by the Parties in the approximation of law. 
Bosnia and Herzegovina was at an early stage regarding it s approximation with the EU acquis. The 
EU was aware that a number of reforms and important legislative changes were still required but 
were still within the transitional period foreseen for the realisation of the A greement, which had 
entered into force on  1 June 2015.  The EU would  continue to accompany these efforts through 
technical and financial assistance.  
1.14.   The entry into force of the Agreement ha d to be considered an important achievement , first 
of all for enhancing bilateral trade relations but also, from a broader point of view, as a further 
step to further tighten the economic and political relationship between the Parties as Bosnia and 
Herzegovina was a potential candidate for EU membership.  
1.15.   She seized the  opportunity to point out that Bosnia and He rzegovina's accession to the WTO 
would represent a milestone in its integration into the international economic setting, and would 
foster further  economic and trade reforms. The EU strongly supported the  accession process, 
which was at an advanced stage, a nd firmly believe d that other WTO Members would benefit from 
a closer trade relationship with Bosnia and Herzegovina once it had accede d to the WTO.  The EU 
was looking forward to a fruitful discussion and would endeavour to answer all Members' 
questions.  
1.16.   The representative  of Bosnia and Herzegovina  welcomed  the consideration of the services 
part of the FTA between the Bosnia and Herzegovina and the European Union. The negotiations 
between the EU and Bosnia and Herzegovina had officially started on 25 Novemb er 2005 and had 
been concluded in November 2007. The Agreement had been initialled on 4 December, and after 
certain political preconditions had been met by Bosnia and Herzegovina, it had been signed on 16 
June 2008 in Luxembourg.  WT/REG 242/M/2 
 
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  1.17.   Bosnia and Herzegovina had ratified the Agreement in November 2008  and it had  entered 
into force on 1 June 2015 . It had been notified by the European Union on 12 January 2016 under 
GATS Article V:7(a).  The Agreement was  the first all -inclusive Agreement signed by Bosnia and 
Herzego vina with the EU and its Member States.  It regulate d almost all aspects of mutual relations 
between the EU and Bosnia and Herzegovina and, as such, should ultimately lead to full 
membership of Bosnia and Herzegovina in the EU.  
1.18.   From the trade aspect, the Ag reement  aimed to support the efforts of Bosnia and 
Herzegovina to complete its transition into a functioning market economy, as well as to promote 
harmonious economic relations between the Parties  and to gradually develop free trade between 
them, in compli ance with, and implemented in a manner consistent with the relevant WTO 
provisions, in particular GATS Article V . 
1.19.   Bearing in mind that the EU was Bosnia and Herzegovina's major trading partner, as well as 
the fact that the Agreement contain ed specific prov isions on future sectoral liberalization of trade 
in services, the FTA was of the utmost importance for Bosnia and Herzegovina, both economically 
and institutionally.  In this context, the services part of the SAA provided for substantial sectoral 
coverage in line with GATS Article V 1.(a) requirements. It covered all modes of supply, for 
example,  cross–border, establishment and temporary movement of persons, with no a priori  
exclusions. Additionally, the A greement provided for the elimination of existing di scriminatory 
measures based on nationality and required that the Parties grant national treatment for the 
establishment and operation of their companies and nationals from its entry into force.  
1.20.   The Agreement also provided for the liberalization of the supp ly of services between the 
Parties and the temporary movement of services suppliers, where important reforms and 
legislative changes were required by Bosnia and Herzegovina, within the transitional period. In this 
regard, the Parties recognised the importa nce of the approximation of the existing legislation of 
Bosnia and Herzegovina to that of the Community which was a precondition for Bosnia and 
Herzegovina joining  the EU internal market.  
1.21.   Having that said, it was also important to emphasise that, since its  signing, the Agreement  
had significantly contributed to the overall reform process in Bosnia and Herzegovina, as well as to 
progress with its  WTO accession process.  Based on the progress in the legislative reform process, 
Bosnia and Herzegovina was now in  the final stage of its WTO  accession, with a few outstanding 
issues . No less important, on 20 September 2016, the European Union Council had given  a positive 
opinion on the application of Bosnia and Herzegovina for EU membership.  Bosnia and Herzegovina 
was confident that the Agreement would  continue to create a favourable framework for boosting 
trade and investment between the P arties, contributing to the further and deeper integration of 
Bosnia and Herzegovina into both regional and global market s. 
1.22.   She th anked  EU colleagues in Brussels for the excellent cooperation and WTO Members who 
had submitted written questions ahead of th e meeting. Her delegation remain ed at the disposal of 
Members if additional comments or clarifications were needed.  
1.23.   The representat ive of Thailand  thanked the Parties for the replies to its written questions on 
denial of benefits provisions. Her delegation had no further questions at this point, but would 
submit any further questions in writing, if necessary.  
1.24.   The representative of Canada thanked the Parties for their written responses.  Canada had 
no further questions.  
1.25.   The representative of Peru thanked the Parties thanked the Parties for their written 
responses and wished Bosnia and Herzegovina all the best in its accession process.  
1.26.   The Chairman  said that the consideration of the services aspects of the Stabilisation and 
Association Agreement between the European Union and Bosnia and Herzegovina ha d allowed the 
Committee  to clarify a number of questions and it could now  conclude oral di scussion of th e RTA in 
accordance with paragraph  11 of the Transparency Mechanism. If any delegations wish ed to ask 
follow -up questions they were invited to forward submissions in writing to the Secretariat by 4 
October 2016 and Parties were asked to submi t replies in writing by no later than 18 October 
2016. In accordance with paragraph  13 of the Transparency Mechanism all written submissions,  as WT/REG 242/M/2 
 
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  well as minutes of this meeting would  be circulated promptly, in all WTO  official languages, and 
would  be made available on the WTO website.  
1.27.   The Committee took note  of the comments made.  
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