WORLD TRADE  
ORGANIZATION   
G/C/W/658 
28 October 2011  
 
(11-5407) 
Council for Trade in Goods Original:   English 
  
 
EUROPEAN UNION - REQUEST FOR AN EX TENSION OF THE WAIVER (WT/L/380 AND 
WT/L/654) FOR THE APPLICATION OF AUTONOMOUS PREFERENTIAL 
TREATMENT TO THE WESTERN BALKANS 
 
Communication from the European Union 
 
 
The following communication, dated 26 October 2011, is being circulated at the request of 
the delegation of the European Union. 
 
 
_______________ 
 
 Pursuant to Article IX:3 of the Marrak esh Agreement Establishing the World Trade 
Organization (WTO Agreement), the European Union (E U) hereby submits to th e consideration of the 
Council for Trade in Goods a request for a extensi on of the waiver from obligations under paragraph 1 
of Article I of the GATT 1994, concerning autonomous  preferential treatment to the Western Balkans.  
 
A. I
NTRODUCTION  
In 2000, the EU adopted an autonomous pr eferential regime for the Western Balkans 
(Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Kosovo1, 
Montenegro and Serbia).  These autonomous trade preferences were granted for an initial period of 
five years, until 31 December 2005 and covered by a specific waiver (WT/L/380) from the obligations under paragraph 1 of Article I of the GA TT 1994, valid until 31 December 2006.  
  On 14 November 2005, the EU extended the peri od of application of the existing preferential 
regime for a further period of five years, namely  until 31 December 2010.  On 28 July 2006 the WTO 
General Council extended the waiver  until 31 December 2011 (WT/L/654).  
 
The EU has launched the process of renewing the autonomous preferential regime for the 
Western Balkans for five more years.  Currently, th e necessary legislation is in the final stage of the 
adoption process under the EU's ordinary legislativ e procedure, which requires the endorsement both 
of the European Parliament and of the Council.  This process is likely to be finished soon. 
 To permit the EU to provide preferential tr eatment for the application of autonomous 
preferential regime to the Western Balkans, wit hout being required to extend the same preferential 
treatment to the like products of any other Member of the WTO, the EU presents this request for the 
extension of the waiver from the provisions GATT 1994 Article I:1 until 31 December 2016.  
 
 
                                                      
1 Under United Nations Security Council Resolution 1244/99. G/C/W/658 
Page 2  
 
  B. T
HE EU'S TRADE RELATIONS WITH THE WESTERN BALKANS  
 The EU trade regime vis-à-vis the Western Balk ans is currently regulat ed by the Stabilisation 
and Association Agreements and Interim Agre ements on Trade and Trade-related Matters.  
 
The Stabilisation and Association Agreements (SAAs), which the EU has progressively 
concluded with the Western Balkans, are tools which provide for the economic development and 
political stabilisation of the region, much as the Eur ope Agreements did for the candidate countries in 
Central Europe, and to establish a close, long- term association between the EU and the Western 
Balkans.  
Four SAAs of this kind have been concluded so far: with the former Yugoslav Republic of 
Macedonia (in force since 1 April 2004), with Croatia (in force since 1 February 2005), with Albania (in force since 1 April 2009) and with Montenegro (in force since 1 May 2010).  Pending the entry 
into force of the SAAs, the trade and trade relate d provisions of these agreements entered into force 
by means of Interim Agreements (I As), for Bosnia and Herzegovina on 1 July 2008 and for Serbia on 
1 February 2010.  The agreements establish a free tr ade area with the country concerned in line with 
the obligations foreseen in Article XXIV of the GATT 1994. At the same time they allow the 
continuation of the autonomous pr eferential regime where this pr ovides more favourable conditions 
for the export of certain goods.  However, no such agreements (SAA or IA) apply to Kosovo.  It is 
therefore essential for Kosovo that the EU renews the preferential regime.   
 
The EU is by far the first trading partner of  the Western Balkans, accounting for, overall, 
some 64% of their total trade.  At the same time , the level of imports from the region into the EU 
remains very low, not exceeding 1% of the total EU imports and it is concentrated on agricultural 
products, fuel and mining products and on machinery.   However, the trade balance for the region 
remains negative for all sectors. The EU total trad e with the Western Balkans also remains low, at 
0.9% of the total EU imports and at 2% of the to tal EU exports.  The stabilisation of the region and 
the new export opportunities should help the Western Balkans to diversify their economies and to ameliorate such a trade balance.  Detailed statis tics on trade between the EU and the Western Balkans 
have been provided annually to the General Counc il under the reports required by the current waiver
2. 
 
C. GENERAL CHARACTERISTICS OF THE EU AUTONOMOUS TRADE MEASURES  APPLIED TO THE 
WESTERN BALKANS  
As a general rule, all products originating in the Western Balkans shall be admitted for import 
into the EU without quantitative restrictions or me asures having equivalent e ffect and with exemption 
from customs duties and charges having equivalent effect.   The following exceptions apply: 
 
 The customs duties applicable to imports into  the EU of "baby-beef" products (falling under 
headings 0102, 0201 and 0202 of the Combined Nomenclature) and originating in Kosovo, 
shall be 20% of the ad valorem  duty and 20% of the specific duty as laid down in the 
Common Customs Tariff, within the limit of an  annual tariff quota of 475 tonnes expressed in 
carcase weight. 
 
 For certain fishery products (headings 0301, 0302, 0303, 0304, 0305 and 1604) and wine 
(heading 2204), the customs duti es applicable to imports into  the EU shall be suspended 
                                                      
2 WT/L/435, WT/L/503, WT/L/551, WT/L/596, WT/L/635 WT/L/668, WT/L/731, WT/L/763, 
WT/L/799 and WT/L/814.  G/C/W/658 
 Page 3 
 
 
  during the periods of validity of the measures in question, within the limits of the EU tariff 
quotas and under specific conditions. 
 The entitlement to benefit from the preferentia l arrangements is subject to the following 
conditions: 
(a) compliance with the definition of the c oncept of "originating products" provided for 
in Title IV, Chapter 2, section 2 of Regulation (EEC) No 2454/933; 
(b) abstention of the beneficiaries from introducing new duties or charges having 
equivalent effect and new quantitative rest rictions or measures having equivalent 
effect from imports originating in the EU or from increasing existing levels of duties or charges or from introducing any other rest rictions from the day of the entry into 
force of the preferential regime; 
(c) involvement of the beneficiaries in effe ctive administrative co-operation with the EU 
in order to prevent any risk of fraud. 
 In addition, the entitlement to the preferential arrangement is subject to the readiness of the 
beneficiaries to engage in effective economic refo rms and in regional co-ope ration with other parties 
concerned by the EU's Stabilisation and Associati on process, in particular through the establishment 
of free trade areas in conformity with Article XXIV of the GATT 1994 and other relevant WTO provisions. 
D. C
ONCLUSIONS  
 This approach has proven to offer a conc rete and important support to the economic 
development efforts undertaken by the Western Balkans.   Yet, the region continues to need help in its 
efforts to achieve a sustainable socio-economic development.  Moreover, the worldwide economic 
slowdown and its negative impact on the region have re-confirmed th e need to further support its 
economic recovery.  For these reasons, the EU cons iders it appropriate to request the WTO General 
Council that the provisions of paragraph 1 of Ar ticle I of the GATT 1994 should be waived for a 
further period until 31 December 2016 to the extent necessary to permit the EU to afford duty-free or 
preferential treatment to eligible products origina ting in the Western Balkans, without being required 
to extend the same duty-free or preferential treatme nt to like products of any other WTO Member. 
  
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3 OJ L 253, 11.10.1993