WORLD TRADE  
ORGANIZATION  WT/REG200/1 
3 June 2005 
 (05-2284) 
Committee on Regional Trade Agreements Original:   English 
  
FREE TRADE AGREEMENT BETWEEN THE FORMER YUGOSLAV REPUBLIC OF 
MACEDONIA AND BOSNIA AND HERZEGOVINA 
  
 The following communication, dated 24 February 2005, is being circulated at the request of 
the Delegation of the Former Yugoslav Republic of Macedonia. 
_______________ 
 
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF MACEDONIA AND 
BOSNIA AND HERZEGOVINA
* 
 
PREAMBLE  
 
 
Desirous  to develop and strengthen friendly relations , especially in the fields of economic co-
operation and trade, with an aim to contribute to  the progress of economic co-operation between the 
two countries and to increase the scope of mutual trade exchange;   
The Republic of Macedonia  and Bosnia and Herzegovina  (hereinafter referred to as "the 
Contracting Parties");   
Confirming  their intention to participate actively in the process of regional economic 
integration in Southeastern Euro pe and in the process of Europ ean integration, expressing their 
preparedness to co-operate in seeking ways and means to strengthen this process;   
Declaring  their readiness to undertake activities  with a view of promoting harmonious 
development of their trade, as well  as of expanding and diversifying their mutual co-operation in the 
fields of joint interest, including fields not covere d by this Agreement, thus creating a framework and 
supportive environment based on equa lity, non-discriminati on, and a balance of righ ts and obligations;   
Resolved  to the above mentioned, as well as to eliminate progressively the obstacles to 
substantially all their mutual trade in accordance with the provisions of the General Agreement on 
Tariffs and Trade (hereinafter referred to  as “GATT 1994”) and the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as “WTO”), having in mind the 
objective of both Contracting Parties for membership in WTO;   
Determined  for this objective to determine the provisi ons directed towards gradual abolish of 
obstacles in trade exchange among Contracting Par ties in accordance with the provisions of this 
instruments;   
                                                      
* The associated Annexes have been submitted to  the Secretariat for consultation by interested 
Members (office 1174). WT/REG200/1 
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 Considering  that no provision of this Agreemen t may be interpreted as exempting the 
Contracting Parties from their obligations under other international agreements;   
Have decided , in pursuance of these objectives, to  conclude the following Agreement 
(hereinafter referred to as "this Agreement"):   
Article 1 
Objectives
 
1. The Contracting Parties shall gradually establish a free trade area in a transitional period 
ending on 31/12/2004, in accordance with the provisi ons of this Agreement and in conformity with 
the definition, set out in Article XXIV of the GATT 1994 and the WTO.  
2. The objectives of this Agreement are: 
(a) to increase the economic co-operation and raise the standard of living of the 
population of the two countries; 
(b) to gradually eliminate difficulties and restri ctions on trade in goods, including also 
the agricultural products; 
(c) to promote, through the expansion of reci procal trade, the harmonious development 
of the economic relations between the Contracting Parties; 
(d) to provide fair conditions of competition fo r trade between the Contracting Parties; 
(e) to contribute by the removal of barriers to  trade, to the harmonious development and 
expansion of world trade; 
(f) to enhance co-operation between the Contracting Parties;  
(g) to create conditions for further encouragemen t of investments, particularly for the 
development of joint investments in both countries; 
(h) to promote trade and co-operation between the Contracting Parties in third country 
markets. 
CHAPTER I:  INDUSTRIAL PRODUCTS 
Article 2 
Scope  
 
1. The provisions of this Chapter sh all apply to industrial products originating in the Contracting 
Parties. 
2. The term “industrial products” means for the purpose of this Agreement the products falling 
within Chapters 25 to 97 of the Harmonized Co mmodity Description and Coding System with the 
exception of the products listed in Annex 1 to this Agreement.  WT/REG200/1 
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 Article 3 
Basic Duties  
1. For commercial exchanges covered by this Agreement, the Customs Tariffs of the 
Contracting Parties shall be applied to the classification of goods for imports into them. 
2. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the MFN duty in force on the date of application of this Agreement. 
3. If after the date of application of this Agre ement, any tariff reduction is applied on an 
erga omnes  basis, in particular, reductions resulting from the tariff agreement concluded as a result of 
the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 
2 of this Article as from that date when such reductions are applied. 
4. The reduced duties, calculated in accordance w ith paragraph 2 of this Article, shall be 
rounded off to the second decimal place.  
5. The Contracting Parties shall mutually exchange their basic duties. 
Article 4 
Customs Duties On Imports And Charges Having Equivalent Effect  
1. No new customs duties on imports, charges having an effect equivalent to customs duties and 
other import duties of a fiscal nature shall be intr oduced in trade between the Contracting Parties. 
2. Custom duties on imports and charges having equiva lent effect, applicable in the Republic of 
Macedonia on industrial products originating in Bosn ia and Herzegovina sha ll be abolished on the 
date of application of this Agreement, except for products specified in Annex 2 to this Agreement.  
Customs duties on imports and charges having equivale nt effect of the products specified in Annex 2 
of this Agreement, shall be abolishe d as it is specified in this Annex. 
3. Customs duties on imports and charges having equi valent effect, applicable in Bosnia and 
Herzegovina on industrial products  originating in the Republic of  Macedonia shall be progressively 
reduced in accordance with  the following timetable: 
- From July 1, 2002  to 60% of the basic duty; 
- From January 1, 2003  to 50% of the basic duty; 
- From January 1, 2004  to 40% of the basic duty; 
- From January 1, 2005  the remaining duties shall be abolished. 
Article 5 
Customs Duties On Exports And Charges Having Equivalent Effect  
1. No new custom duties on exports, charges havi ng equivalent effect to customs duties, and 
other export duties of a fiscal nature shall be intr oduced in trade between the Contracting Parties. 
2. The Contracting Parties shall abolish all customs duties on exports or charges having 
equivalent effect to custom duties, and other export duties of a fiscal nature on the date of application 
of this Agreement. WT/REG200/1 
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 Article 6 
Quantitative Restrictions On Imports And Measures Having Equivalent Effect
 
1. No new quantitative restrictions on imports or measures having equivalent effect shall 
be introduced in trade between the Contractin g Parties on the date of application of this 
Agreement. 
2. All quantitative restrictions on imports and measures having equivalent effect shall be 
abolished on the date of app lication of this Agreement. 
Article 7 
Quantitative Restrictions On Exports And Measures Having Equivalent Effect  
1. No new quantitative restrictions on exports or measures having equivalent effect shall be 
introduced in trade between the Contracting Parties on the date of application of this Agreement. 
2. All quantitative restrictions on exports and me asures having equivalent effect shall be 
abolished on the date of app lication of this Agreement. 
Article 8 
Elimination Of Technical Barriers To Trade  
1. The rights and obligations of the Contracting Parties relating to standards or technical 
regulations and related measures shall be gove rned in accordance with the WTO Agreement on 
Technical Barriers to Trade. 
2. The Contracting Parties shall co-operate a nd exchange information in the field of 
standardization, metrology, conformity assessment and accreditation with the aim of eliminating technical barriers to trade. 
3. Each Contacting Party, upon a request of the other Contracting Party, shall provide 
information on particular individual cases of standards, technical norms or related measures. 
4. The Contracting Parties shall aim to reduce tec hnical barriers to trade.  To this end the 
Contracting Parties will enter, where appropriate , into negotiations for the conclusion of the 
Agreements for the mutual recognition in the fiel d of conformity assessment, for the products subject 
to mutual trade between the Contracting Parties. 
CHAPTER II:  AGRICULTURAL PRODUCTS 
Article 9 
Scope
 
1. The provisions of this Chapter shall apply to agricultural products originating in the 
Contracting Parties.  WT/REG200/1 
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 2. The term "agricultural products " means for the purpose of this Agreement the products falling 
within Chapters 1 to 24 of the Harmonized Co mmodity Description and Coding System and the 
products listed in Annex 1 to this Agreement. 
Article 10 
Basic Duties  
1. For commercial exchanges covered by this Agreement, the Customs Tariffs of the 
Contracting Parties shall be applied to the classification of goods for imports into them. 
2. For each product the basic duty to which the successive reductions set out in this 
Agreement are to be applied shall be the MFN duty  in force on the date of application of this 
Agreement. 
3. If after the date of application of this Agre ement, any tariff reduction is applied on an 
erga omnes basis, in particular, reductions resulting from the tariff agreement concluded as a result of 
the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 
2 of this Article as from that date when such reductions are applied. 
4. The reduced duties, calculated in accordance w ith paragraph 2 of this Article, shall be 
rounded off to the second decimal place.  
5. The Contracting Parties shall mutually exchange their basic duties. 
Article 11 
Customs Duties On Imports And Charges Having Equivalent Effect  
1. No new customs duties on imports, charges having an effect equivalent to customs duties and 
other import duties of a fiscal nature shall be intr oduced in trade between the Contracting Parties. 
2. Custom duties on imports and charges having equiva lent effect, applicable in the Republic of 
Macedonia on agricultural products originating in Bo snia and Herzegovina shall be abolished on the 
date of application of this Agreement, except for products specified in Annex 3 to this Agreement.  
Customs duties on imports and charges having equivale nt effect of the products specified in Annex 3 
of this Agreement, shall be abolishe d as it is specified in this Annex. 
3. Customs duties on imports and charges having equi valent effect, applicable in Bosnia and 
Herzegovina on agricultural products originating in  the Republic of Macedonia shall be progressively 
reduced in accordance with  the following timetable: 
- From July 1, 2002  to 60% of their value; 
- From January 1, 2003  to 50% of their value; 
- From January 1, 2004  to 40% of their value; 
- From January 1, 2005  the remaining duties shall be abolished. 
Article 12 
Agricultural Policy  
1. Without prejudice to the provisions under Article 10 of this Agreement, the provisions of the 
Chapter II of this Agreement shall not restrict in  any way the pursuance of the respective agricultural WT/REG200/1 
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 policies of the Contracting Parties or the taking of any measures under such policies, including the 
implementation of the provisions of  the WTO Agreement on Agriculture. 
2. The Contracting Parties shall notify to the Joint Committee changes in their respective 
agricultural policies pursued or measures which may affect the conditions of trade in agricultural 
products between them.  On the request of either Cont racting Party, prompt cons ultations shall be held 
within the Joint Committee, to examine the situation. 
Article 13 
Specific Safeguards
 
Notwithstanding other provisions of this Agreem ent, in particular Article 20 of this 
Agreement, given the particular sensitivity of the agricultural products, if imports of products 
originating in one Contracting Party, which are subject of concessi ons, granted under this 
Agreement, cause serious disturbances to the market of the other Contracting Party, the Contracting Party concerned shall enter into prompt consultations to find an appropriate solution.  
Pending such solution, the Contracting Party conc erned may take appropri ate measures it deems 
necessary.  
Article 14 
Sanitary And Phytosanitary Measures
 
1. The Contracting Parties shall apply their nationa l regulations in veterinary, phytosanitary and 
sanitary matters, in particular in the exchange of information on infectious diseases of domestic 
animals, quarantine diseases, plant pests and weed, in a way that complies to the WTO Agreement on 
the Application of Sanitary and Phytosanitary Measures. 
2. The Contracting Parties shall apply their regula tions in veterinary, phytosanitary and sanitary 
matters in a non-discriminatory way and shall not in troduce new measures that may have the effect of 
unduly obstructing trade. 
3. The measures, concerning veterinary and ph ytosanitary control among the Contracting 
Parties, shall be harmonized in accordance with the European Union (hereinafter referred to as “EU”) 
legislation. 
4. The Contracting Parties undertake the obligations to exchange information on the level of the 
sanitary and phytosanitary protection of  animals, plants and products.  
5. The Contracting Parties shall conclude Agreemen t for mutual co-operation in veterinary and 
phytosanitary matters and plants protection. 
Article 15 
Elimination Of Technical Barriers To Trade  
1. The rights and obligations of the Contracting Parties relating to standards or technical 
regulations and related measures shall be gove rned in accordance with the WTO Agreement on 
Technical Barriers to Trade.  WT/REG200/1 
 Page 7 
 
 
 2. The Contracting Parties shall co-operate a nd exchange information in the field of 
standardization, metrology, conformity assessment and accreditation with the aim of eliminating technical barriers to trade. 
3. Each Contacting Party, upon a request of the other Contracting Party, shall provide 
information on particular individual cases of standards, technical norms or related measures. 
4. The Contracting Parties shall aim to reduce tec hnical barriers to trade.  To this end the 
Contracting Parties will enter, where appropriate , into negotiations for the conclusion of the 
Agreements for the mutual recognition in the fiel d of conformity assessment, for the products subject 
to mutual trade between the Contracting Parties. WT/REG200/1 
Page 8  
 
 CHAPTER III:  GENERAL PROVISIONS 
Article 16 
Internal Taxation
 
1. The Contracting Parties shall refrain from any meas ure or practice of an internal fiscal nature 
establishing, whether directly or indirectly, discr imination between the products originating in the 
Contracting Parties. 
2. Products exported to one of th e Contracting Parties may not benefit from repayment of 
internal taxes in excess of the amount of indirect taxes imposed on them. 
Article 17 
Customs Unions, Free Trade Areas And Frontier Trade  
1. This Agreement shall not prevent the mainte nance or establishment of customs unions, free 
trade areas or arrangements for frontier trade to the extent that these do not negatively affect the trade 
regime between the Contracting Par ties and in particular the provisions concerning rules of origin 
provided for by this Agreement. 
2. Exchange of information shall take place, upon re quest of either Contracting Party, within the 
Joint Committee concerning agreements establishi ng such custom unions or free trade areas. 
Article 18 
Structural Adjustment  
1. Exceptional measures of limited duration which are not in accordance with the provisions of 
Article 4 of this Agreement may be taken by any of  the Contracting Parties in the form of increased 
customs duties. 
2. These measures may only concern infant i ndustries, or certain sectors undergoing 
restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 
3. Customs duties on imports applicable in one of th e Contracting Parties to products originating 
in the other Contracting Party introduced in accord ance with the paragraphs 1 and 2 of this Article 
may not exceed 25% ad valorem and shall maintain an element of preference in customs duties for 
products originating in the other C ontracting Party.  The total value of imports of the products which 
are subject to these measures may not exceed 15% of  total imports of industrial products from the 
other Contracting Party as defined in Chapter I of this Agreement, during the last year for which 
statistics are available. 
4. These measures shall be applied for a period not exceeding five successive years unless a 
longer duration is authorized by the Joint Committee.  
5. The Contracting Party concerned shall inform the other Contracting Party of any exceptional 
measures it intends to take and, at the request of the other Contracting Party, consultations shall be 
held immediately within the Joint Committee on such  measures and the sectors to which they apply.  
When taking such measures the Contracting Party c oncerned shall provide the Joint Committee with a  WT/REG200/1 
 Page 9 
 
 
 schedule for the elimination of the customs duties in troduced under this Article.  This schedule shall 
provide for a phasing out of these duties starting at the latest two years after their introduction, at equal annual rates.  The Joint Committee  may decide on a different schedule. 
Article 19 
Dumping
 
If one of the Contracting Parties finds that dum ping within the meaning of Article VI of the 
GATT 1994 is taking place in trade relations governed  by this Agreement, it may take appropriate 
measures against those practices in accordance with the WTO Agreement on Implementation of 
Article VI of the GATT 1994 under the conditions an d in accordance with the procedure laid down in 
Article 23 of this Agreement. 
Article 20 
General Safeguards  
Where any product is being imported in such increased quantities and under conditions as to 
cause or threaten to cause: 
(a) serious injuries to domestic producers of like or directly competitive products in the 
territory of the importing Contracting Party, or 
(b) serious disturbances in any related sector of the economy or difficulties which could 
bring about serious deterioration in the economic situation of a certain region, 
the Contracting Party concerned may take a ppropriate measures under the conditions and in 
accordance with the procedure laid down in Article 23 of this Agreement. 
Article 21 
Re-Export And Serious Shortage  
Where compliance with the provisions of Articles 5 and 7 is related to: (a) re-export towards a third country against which the exporting Contracting Party to 
this Agreement maintains for the product concerned quantitative export restrictions, 
export duties or measures or charges having equivalent effect;  or 
(b) a serious shortage, or threat thereof,  of a product essential to the exporting 
Contracting Party;  
and where the situations referred to above give rise or are likely to give rise to major difficulties for 
the exporting Contracting Party, that Contracti ng Party may take appropriate measures under the 
conditions and in accordance with the procedures laid  down in Article 23 of this Agreement.  The 
measures shall be non-discriminatory and be elim inated when conditions no longer justify their 
maintenance. 
  WT/REG200/1 
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 Article 22 
State Monopolies
 
1. The Contracting Parties shall adjust progressively any State monopoly of a commercial 
character so as to ensure that by the end of the transitional period laid down in Article 1 of this 
Agreement, no discrimination regarding the conditio ns under which goods are procured and marketed, 
exists between natural and legal persons of the C ontracting Parties.  The Contracting Parties shall 
inform each other about the measures adopted to implement this objective. 
2. The provisions of this Article shall apply to any body through which the competent 
authorities of the Contracting Parties, in law or in  fact, either directly or indirectly supervise, 
determine or appreciably influence imports or e xports between the Contracting Parties.  These 
provisions shall likewise apply to monopolies delegated by the State to other bodies. 
Article 23 
Procedure For The Application Of Safeguard Measures  
1. Before initiating the procedure for the appli cation of safeguard measures set out in the 
following paragraphs of this Article , the Contracting Parties shall endeavor to solve any differences 
between them through direct consultations. 
2. In the event of either Contracting Party subjec ting imports of products liable to give rise to 
the situation referred to in Article 20 of this Ag reement to an administrative procedure having as its 
purpose the rapid provision of information on the tr ade flows, it shall inform the other Contracting 
Party. 
3. (a) With regard to Articles 19, 20 and 21 of this Agreement, the Joint Committee shall 
examine the case or the situation and may take any decision needed to put an end to 
the difficulties notified by the Contracting Pa rty concerned.  In the case of the absence 
of such decision within 30 days from the da te of the matter being referred to the Joint 
Committee, the Contracting Party concerned may adopt the necessary measures in order to remedy the situation. 
(b) As regards Article 34 of this Agreement, the Contracting Party concerned may take 
appropriate measures after the consultations have been concluded or a period of three 
months has elapsed from the date of the first written notification to the other Contracting Party. 
(c) With regard to Articles 26 and 27 of this Agreement, the Contracting Party concerned 
shall give the Joint Committee all the assist ance required in order to examine the case 
and, where appropriate, eliminate the practi ce objected to.  If the Contracting Party in 
question fails to put an end to the practice objected to within the period fixed by the Joint Committee, or if the Joint Committee fails to reach an agr eement within thirty 
working days of the matter being referred to  it, the Contracting Party concerned may 
adopt the appropriate measures to deal w ith the difficulties resulting from the practice 
in question. 
4. The safeguard measures taken sh all be immediately notified to the other Contracting Party.  
With regard to their extent and to their duration, me asures shall be limited to what is strictly necessary 
in order to rectify the situation giving rise to their application and shall not be in excess of the injury 
caused by the practice or the difficulty in question.  Priority shall be given to measures which will  WT/REG200/1 
 Page 11 
 
 
 least disturb the functioning of this Agreement.  The measures taken by a Contracting Party against an 
action or an omission of the other Contracting Part y may only affect the trade with that Contracting 
Party. 
5. The safeguard measures taken shall be the object  of periodic consultations within the Joint 
Committee with a view to their relaxation as soon as possible, or abolition when conditions no longer 
justify their maintenance. 
6. Where exceptional circumstances requiring immediate action make prior examination 
impossible, the Contracting Party concerned may, in the cases of Articles 19, 20 and 21 of this Agreement, apply forthwith the provisional measu res necessary to remedy the situation.  The 
measures taken shall be notified to the other Cont racting Party without de lay, and consultations 
between the Contracting Parties shall take  place as soon as possible within the Joint 
Committee. 
7. Without prejudice to paragraph 6 of this Ar ticle, a Contracting Party which considers 
resorting to safeguard measures shall promptly no tify in writing the other Contracting Party thereof 
and supply all relevant in formation.  Consultations between the Contracting Parties shall take place 
without delay within the Joint Committee with a view to finding a solution acceptable to both 
Contracting Parties. 
Article 24 
Rules Of Origin And Co-Operation In Customs Administration
 
1. The Contracting Parties agree to apply the harmoni zed European preferential rules of origin in 
the mutual trade including all existing and further am endments thereto.  In case the European rules of 
origin are amended, the Joint Committee sha ll make a decision on amending rules of origin. 
2. Protocol A to this Agreement (hereinafter refe rred to as “Protocol A”) la ys down the rules of 
origin and related methods of administrative co-operation. 
3. The Contracting Parties shall take appropriate  measures, including regular reviews by the 
Joint Committee and arrangements for administrative co -operation, to ensure that the provisions of 
Protocol A and Articles 3 to 8, 10, 11, 12, 16, 18,  20 and 21 of this Agreement are effectively and 
harmoniously applied, and to reduce, as far as pos sible, the formalities imposed on trade, and to 
achieve mutually satisfactory solutions to an y difficulties arising from the operation of those 
provisions. 
4. The Contracting Parties shall conclude separate Agreement for co-operation between their 
Customs Administration, as soon as possible.  
Article 25 
Payments  
1. Any payment arising from trade of goods, services and rights to non material goods between 
the Contracting Parties shall be made in convertible currency. 
2. Payments in freely convertible currencies rela ting to trade in goods between the Contracting 
Parties and the transfer of such payments to the territory of the Contracting Party where the creditor 
resides shall be free from any restrictions. WT/REG200/1 
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 3. The Contracting Parties shall refrain from any exchange or administrative restrictions on the 
grant, repayment or acceptance of short or medium  term credits to trade in goods in which person 
residing in one of the Contracting Parties participates. 
4. Notwithstanding the provisions of paragraph 3 of this Article, any measures concerning 
current payments connected with the movement of goods shall be in conformity with the conditions 
laid down under Article VIII of the Agreement of the International Monetary Fund and shall be 
applied on a non-discriminatory basis. 
Article 26 
Rules Of Competition Concerning Undertakings
 
1. The following are incompatible with the proper functioning of this Agreement insofar as they 
may affect trade between the Contracting Parties: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings which have as their object or effect the 
prevention, restriction or distortion of competition; 
(b) abuse by one or more undertakings of a dominant position in the territories of the 
Contracting Parties as a whole or in a substantial part thereof. 
2. The provisions of paragraph 1 of this Article shall apply to the activities of all undertakings 
including public undertakings and undertakings to which the Contracting Parties grant special or exclusive rights.  Undertakings entrusted with the operation of services of general economic interest 
or having the character of a revenue-producing mono poly, shall be subject to provisions of paragraph 
1 of this Article insofar as the application of these provisions does not obstruct the performance, in 
law or in fact, of the particular public tasks assigned to them. 
3. With regard to agricultural products the provision s of paragraph 1 a. of this Article shall not 
apply to such agreements, decisions and practices wh ich form an integral part of a national market 
organization. 
4. If a Contracting Party considers that a given practice is incompatible with paragraphs 1, 2 
and 3 of this Article and if such practice causes  or threatens to cause serious prejudice to the 
interest of that Contracting Party or material injury  to its domestic industry, it may take appropriate 
measures under the conditions and in  accordance with the procedure laid  down in Article 23 of this 
Agreement. 
Article 27 
State Aid
 
1. Any aid granted by a State being Contracting Party to this Agreement or through State 
resources in any form whatsoever which distorts  or threatens to distort competition by favoring 
certain undertakings or the production of certain goods  shall, insofar as it ma y affect trade between 
the Contracting Parties, be incompatible with  the proper functioning of this Agreement. 
2. For agricultural products the provisions of paragr aph 1 of this Article shall comply with the 
relevant WTO Agreements.  WT/REG200/1 
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 3. The Joint Committee shall, within  three years from the entry into force of this Agreement, 
adopt the criteria on the basis of which the practices contrary to paragraph 1 of this Article shall be 
assessed, as well as the rules for their implementation. 
4. The Contracting Parties shall ensure tran sparency in the area of state aid, inter alia by 
reporting annually to the Joint Committee on the total amount and the distribution of the aid given and 
by providing to the other Contracting Party, upon request, information on aid schemes and on 
particular individual cases of state aid. 
5. If a Contracting Party considers that a particular practice: 
- is incompatible with the terms of paragraph 1 of this Article, and is not adequately 
dealt with under the implemen ting rules referred to in pa ragraph 3 of this Article, 
or 
- in the absence of rules, referred to in paragr aph 3 of this Article, causes or threatens to 
cause serious prejudice to the interest of that Contracting Party or material injury to its domestic industry, 
it may take appropriate measures under the conditions  of and in accordance with the provisions laid 
down in Article 23 of this Agreement. 
6. Such appropriate measures may only be taken in conformity with the procedures and 
under the conditions laid down by the GATT 1994 and the WTO, and any other relevant 
instruments negotiated under their auspices, which are applicable between the Contracting Parties concerned. 
Article 28 
Public Procurement
 
1. The Contracting Parties consider the liberalization of their respective public procurement 
markets as an objective of this Agreement. 
2. The Contracting Parties shall progressively adjust  their rules, conditions and practices with a 
view to grant suppliers of the other Contracting Party, access to contract award procedures on their 
public procurement markets, at the latest to the end of transitional period from Article 1 of this 
Agreement.  
3. The Joint Committee shall examine developments related to the achievement of the objectives 
of this Article and may recommend practical modalit ies of implementing the provisions of paragraph 
2 of this Article so as to ensure free access, tr ansparency and mutual opening of their respective 
public procurement markets in the Contracting Parties. 
4. The Contracting Parties shall endeavor to accede to the relevant Agreements on public 
procurements negotiated under the auspices of the GATT 1994 and WTO. 
Article 29 
Balance Of Payments Difficulties  
1. The Contracting Parties shall endeavor to avoid the imposition of restrictive measures 
including measures relating to imports for balance of payments difficulties. WT/REG200/1 
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 2. Where either Contracting Party is in a serious  balance of payment’s difficulties or under the 
threat thereof, the Contracting Party concerne d may in accordance with the conditions laid down 
within the framework of WTO and in accordance with  Article VIII of the Agreement of International 
Monetary Fund, adopt restrictive measures, which shall be of limited duration and may not go beyond 
what is necessary to remedy the balance of paymen ts situation.  The Cont racting Party concerned 
shall inform the other Contracting Party forthwith  of their introduction and present to the other 
Contracting Party, as soon as possible, a time schedule of their removal. 
Article 30 
Intellectual Property Rights
 
1. The Contracting Parties confirm th eir readiness for co-operation rega rding the questions related to 
intellectual property righ ts connected with the trade, and if it is  necessary to use the measures constituting 
Annex I C to the Marrakesh Agreement, establishing the WTO, as well as other conventions on questions 
related to intellectual property protection, to which both Contacting Parties are parties. 
2. For the purpose of this Agreement the term "inte llectual property" refers to all categories of 
intellectual property such as:  copyrights a nd neighboring rights, trademarks, geographical 
indications, topographies of integrated circuits, i ndustrial designs, patents, undisclosed information 
including know-how. 
3. In fulfillment of their commitments under international agreements and legislation in the field of 
intellectual property rights, the Contracting Parties sha ll not grant to nationals of the state of the other 
Contracting Party treatment less favora ble than that accorded to its own na tionals or nationa ls of any third 
state. 
4. The Contracting Parties shall co-operate in matters  of intellectual property.  Upon request of a 
Contracting Party, they shall hold consultations of experts on these matte rs, in particular with respect 
to activities relating the existing or to future international conventions  on the harmonization, 
administration and vindication of intellectual property rights and on activities in international 
organizations, such as the WTO, World Intellectua l Property Organization, as well as concerning the 
relations of the Contracting Parties with third co untries with respect to the intellectual property 
matters. 
5. The implementation of this Article shall be regularly assessed by the Contracting Parties.  
Upon difficulties in trade in relation with the rights of intellectual including industrial property, any of 
the Contracting Parties may request urgent consu ltations for finding mutually acceptable solution. 
Article 31 
The Joint Committee  
1. A Joint Committee is hereby established and shall be composed of the representatives of the 
Contracting Parties. 
2. The implementation of this Agreement shall be supe rvised and administered by the Joint Committee. 
3. For the purpose of the proper implementation of this Agreement, the Contracting Parties shall 
exchange information and, at the request of either  Contracting Party, shall hold consultations within 
the Joint Committee.  The Committee shall keep under review the possibility of further removal of the 
obstacles to trade between the Contracting Parties.  WT/REG200/1 
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 4. The Joint Committee may take d ecisions in the cases provided fo r in this Agreement.  On 
other matters the Committee may make recommendations. 
Article 32 
Procedures Of The Joint Committee  
1. For the proper implementation of this Agreemen t, the Joint Committee shall meet whenever 
necessary, but at least once a year.  Either Contracting Party may request a meeting to be held. 
2. The Joint Committee shall take decisi ons and recommendations by consensus. 
3. If a representative of a Contracting Party in the Joint Committee, has accepted a decision 
subject to the fulfillment of constitutional and other legislative requirements the decision shall enter into force, if no later date is contained th erein, on the day the lifting of the reservation is 
notified. 
4. The Joint Committee shall adopt its rules of procedure which shall, inter alia , contain 
provisions for convening meetings and for the de signation of the Chairman  and his/her term of 
office. 
5. The Joint Committee may decide to set up su ch sub-committees and working groups as it 
considers necessary to assist it in accomplishing its tasks. 
Article 33 
Security Exceptions
 
1. Nothing in this Agreement shall prevent a C ontracting Party from taking any appropriate 
measures which it considers necessary: 
(a) to prevent the disclosure of information c ontrary to its essential security interests; 
(b) for the protection of its essential security interests or for the implementation of 
international obligations  or national policies: 
(i) relating to the traffic in arms, ammun ition and implements of war, provided 
that such measures do not impair the c onditions of competition in respect of 
products not intended for specifically military purposes, and to such traffic in 
other goods, materials and services as is carried on directly or indirectly for 
the purpose of supplying a military establishment;  or 
(ii) relating to the non-proliferation of biological and chemical weapons, nuclear 
weapons or other nuclear explosive devices;  or 
(iii) in time of war or other serious intern ational tension constituting the threat of 
war. 
2. In accordance with the regulations in force in the Contracting Parties, the competent 
authorities shall issue import and export licenses fo r those products to which, in import-export, 
applies licenses regime compulsory by the international agreemen ts and conventions. WT/REG200/1 
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 3. To mutual goods exchange originating in th e Contracting Parties which contaminate human 
environment, the Contracting Parties shall apply provisions of the regulatio ns in accordance to the 
international agreemen ts and conventions. 
Article 34 
General Exceptions
 
Nothing in this Agreement shall be constr ued as to prevent any Contracting Party from 
adopting or enforcing any measure a llowed in Article XX of the GATT 1994. 
Article 35 
Fulfillment Of Obligations  
1. The Contracting Parties shall take all necessar y measures to ensure the achievement of the 
objectives of this Agreement and the fulfillment of their obligations under this Agreement. 
2. If either Contracting Party considers that the other Contracting Party has failed to fulfill an 
obligation under this Agreement, the Contracting Pa rty concerned may take th e appropriate measures 
under the conditions and in accordance with the procedures laid down in Article 23 of this Agreement. 
Article 36 
Evolutionary Clause  
1. Where either Contracting Party considers that it would be useful in the interest of the 
economies of the Contracting Parties to develop the relations established by this Agreement by 
extending them to fields not covered thereby, it shall submit a reasoned request to the other 
Contracting Party.  The Contracting Parties may in struct the Joint Committee to examine this request 
and, where appropriate, to make recommendations to  them, particularly with a view to opening 
negotiations. 
2. Agreements resulting from the pro cedure referred to in paragraph 1 of this Article will be 
subject to ratification of approval by the Contrac ting Parties to this Agreement in accordance with 
their internal legal procedures. 
Article 37 
Amendments  
Amendments to this Agreement, including Annex es and Protocol, may be proposed by either 
Contracting Party and shall enter into force on the date of receipt of the last notification, through 
diplomatic channels, confirming that all internal le gal procedures required by either Contracting Party 
for their entry into force have been fulfilled. 
Article 38 
Protocols And Annexes  
Annexes and Protocol concerning the definition of the concept of “originating products” and 
methods of administrative co-operation to this Agreem ent shall form an integral part thereof.  The  WT/REG200/1 
 Page 17 
 
 
 Joint Committee may decide to amend them subject  to the domestic procedures of the Contracting 
Parties. 
Article 39 
Validity And Denouncement  
1. This Agreement is concluded for an indefinite period of time. 
2. Each Contracting Party may denounce this Ag reement through diplom atic channels by a 
written notification to the other Cont racting Party.  In such case the Agreement shall be denounced on 
the first day of the seventh month after the date when the other Contracting Party has received the 
written notification. 
3. The Contracting Parties agreed, that in case of accession of one of the Contracting Parties to 
the European Union, the Agreement will be term inated without successive compensations for the 
other Contracting Party, on the day before the da te of the accession to the EU, and in accordance with 
the procedure laid down in pa ragraph 2 of this Article. 
Article 40 
Entry Into Force  
This Agreement shall enter into force on the fi rst day of the month following the date when 
the Contracting Parties have notified each other th rough diplomatic channels that their respective 
internal requirements for the entry into for ce of this Agreement have been fulfilled. 
Article 41 
Provisional Application  
This Agreement shall be applie d provisionally from 1 July 2002. 
IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorized thereto, 
have signed this Agreement. 
DONE at _______ this ___ day of ______________ 20 02 in two originals, in English 
language, each being equally authentic. 
FOR THE REPUBLIC OF MACEDONIA FOR BOSNIA AND HERZEGOVINA 
__________