WORLD TRADE  
ORGANIZATION   
WT/REG285/M/1 
7 July 2011  
 
(11-3347) 
Committee on Regional Trade Agreements 
Sixty-first Session  
 
 
 
CONSIDERATION OF THE FREE TRADE AGREEMENT  
BETWEEN EUROPEAN UNION AND SERBIA,  
GOODS  
 
Note on the Meeting of 28 June 2011 
 
Chairman:  Mr. F. Riegert (France) 
 
 
1. The 61th Session of the Committee on Regional Trad e Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/ AIR/3754, and corrigendum 1 dated 17 May and 
21 June 2011.  
2. Under Agenda Item C.I of this session, th e CRTA considered the Free Trade Agreement 
(FTA) between the European Union and Serb ia (hereinafter the 'Agreement'), goods.  
3. The Chairman said that the Agreement had en tered into force on 1 February 2010 and had 
been notified by the European Union (EU) on 27 May 2010 to the WTO under Article XXIV:7(a) of 
the GATT 1994 and the Understanding on the Interp retation of Article XXIV of GATT 1994 as an 
Agreement establishing a free trade area (documen t WT/REG285/N/1).  The text of the Agreement 
was available, together with its Annexes, on the Pa rties' official websites.  The Factual Presentation 
on the goods aspects (document WT/REG285/1 dated 18 April 2011) and its corrigendum (document 
WT/REG285/1/Corr.1 dated 27 June 2011) had been  prepared by the Secretariat on its own 
responsibility in full consultation with the Parti es, in accordance with paragraph 7(b) of the 
Transparency Mechanism (TM) for Regional Trade Agreements (document WT/L/671).  
Additionally, he informed Members that written questions and replies on the Agreement had been 
distributed in document WT/REG285/2, dated 16 June 2011.  He suggested to organize the 
consideration of the Agreement by first asking the Parties and then other Members for general 
comments.  The Committee would then turn to th e specifics of the Agreement using the Factual 
Presentation to guide the debate.  He proposed to go through the Factual Presentation section by 
section, and then look at the questions and replies document. 
4. The representative of the European Union thanke d the WTO Secretariat for its work.  Before 
presenting the Agreement's commitments and disciplines,  he made some general remarks with respect 
to the political and economic set-up that had led to  the negotiation of the Agreement with Serbia, a 
potential candidate country to join the EU.  Th e Agreement covered goods and formed part of a 
broader policy that aimed at deepening trade rela tions with the Western Balkan countries.  The 
Agreement implemented the trade related provision s of a wider agreement - the Stabilisation and 
Association Agreement (SAA) with Serbia - which was currently under ratification and expected to 
enter into force next year.  He said that the S AA was the prime instrument of the EU overall policy 
towards the Western Balkan countries' stabilisation and association process.  Under this process, all 
Western Balkans countries, including Serbia, had a common future as EU Member States.  The SAA 
intended to establish a close and lasting relationshi p based on reciprocity and mutual interest.  The 
Agreement between the EU and Serbia had therefore to be seen in the light of the wider, ambitious, WT/REG285/M/1 
Page 2  
 
  overall policy of the EU towards Serbia.  Furthe rmore, the Agreement aimed at strengthening the 
development of trade links and,  more generally, sought to contribute to political, economic and 
institutional stability in Serbia.  It established a free trade area over a maximum transitional period of 
six years.  As mentioned in the Factual Presentati on, the Parties had made substantial commitments.  
In 2010, 97.5% of EU tariff lines were already duty-free, representing 96% of the value of imports 
from Serbia.  By 2014, Serbia was to liberalise 95. 1% of tariff lines for imports from the EU.  The 
Agreement covered products in all chapters of  the Harmonised System.  Only a few exceptions, 
concerning few agricultural and fishery products, woul d not be fully liberalized, and would be subject 
to preferential quantitative concessions.  He noted however, that a review clause called for further 
commitments on these products if considered n ecessary by the Parties after three years of 
implementation of the Agreement.  
5. He said that the Agreement was not limited to the elimination of duties and non-tariff 
restrictions on bilateral trade, important though th at was.  It also included provisions concerning 
competition matters, a high level of protection of intellectual property rights and strengthened co-
operation in customs matters.  Once the SAA ente red into force, it would also include additional 
disciplines concerning, notably, government proc urement, legislative approximation in many areas 
including standardisation, as well as provisions rega rding services and establishment.  Overall, the EU 
was confident that the Agreement would significantly contribute to the growth and enhancement of its 
strong trade and economic relationshi p with Serbia.  He also pointed out that other WTO Members 
would also be able to benefit from a closer trade relationship with Serbia once it acceded to the WTO.  
He recalled that Serbia was at a very advanced stage of accession and was strongly supported by the 
EU, which had already concluded a bilateral deal in  early 2011.  In view of the outstanding progress 
Serbia had made regarding its accession commitmen ts, he hoped that all Members would favour its 
accession without unnecessary delay.  Accession to th e WTO would represent a milestone in Serbia's 
integration into the internationa l economic setting, and would cert ainly be conducive to fostering 
economic and trade reforms.  Finally, he said he  looked forward for a fruitful discussion and would 
endeavour to answer Members' questions. 
6. The representative of Serbia said she was happy to be present for the consideration of the 
Agreement between the European Un ion and Serbia.  She said that negotiations between the EU and 
Serbia on the conclusion of the Agreement ha d commenced on 10 October 2001, and had been 
concluded on 10 September 2007.  The Agreemen t had been signed on 29 April 2008 in Luxembourg 
and had come into effect for both Parties on 1 Februa ry 2010 after an exchange of diplomatic notes.  
Both Parties had entered the third year of implem entation on 1 January 2011.  It was the first all-
inclusive Agreement signed by Serbia with the EU  and its Member States and regulated almost all 
aspects of mutual relations:  first of all, mutual  economic and trade relations, which, prior to the 
signing of the Agreement, had been based on unilate ral statements of good will on both sides.  This 
represented a preferential agreement on free trade, whic h was, also institutionally, the basis for further 
processes of association with the EU , ultimately leading to full membership.  The Agreement was of 
the utmost importance for Serbia both economically and institutionally, bearing in mind that the EU 
was Serbia's main trading partner with a 55% share in total Serbian trade.  After a decline in trade 
flows in 2009 due to the world economic crisis, in  2010 the positive impacts of the Agreement had 
been visible through an increase in Serbian exports to the EU by 32.5% and by 8.2% in the case of 
imports.  The coverage of imports by exports accounted for 59.9% which was significantly higher 
than in 2009.  In the first four months of 2011, the positive trend had conti nued, and Serbian exports 
recorded a growth rate of 36.1%, while imports grew  by 16.5% compared to the same period in 2010.  
The coverage of imports by exports in the firs t four months of 2011 was 66.3%, which was the 
highest amount recorded in the last decade.  Serbia  had started its inclusion into international trade 
through accession to the WTO in parallel with the lib eralization of trade with its main partners 
including the EU, which Serbia considered to be the overall setting for conducting trade.  Finally, she 
said she was at Members disposal if additional comments or answers were needed.  WT/REG285/M/1 
 Page 3 
 
 
  7. The representative of the United States expre ssed his appreciation to the Parties for the 
information that they had provided, as well as for their statements and the responses to the written 
questions posed.  
8. The Chairman said that the consideration of the goods aspects of the FTA between the 
European Union and Serbia had allowed the Comm ittee to clarify a number of questions and oral 
discussion of the Agreement could be concluded in accordance with paragraph 11 of the Transparency 
Mechanism.  If any delegations wished to ask fo llow-up questions they were invited to forward 
submissions in writing to the Secretariat by 6 July 2011  and the Parties were asked to submit replies  
in writing by no later than 20 July 2011.  In accordance with paragraph 13 of the Transparency 
Mechanism all written submissions, as well as minutes of  the meeting would be circulated promptly, 
in all WTO official languages, and would be made available on the WTO website. 
9. The Committee took note of the comments made. 
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