WORLD TRADE  
ORGANIZATION  WT/REG192/1 
18 February 2005 
 
 (05-0691) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN ROMANIA AND SERBIA AND MONTENEGRO 
  
  The following communication, dated 4 February 20 05, is being circulated at the request of the 
Delegation of Romania. 
 
_______________ 
 
 
FREE TRADE AGREEMENT BETWEEN ROMANIA AND SERBIA АND MONTENEGRO
* 
 
PREAMBLE  
  Romania  and Serbia and Montenegro  (hereinafter called "the Parties"), 
  Reaffirming  their commitment to pluralistic democracy based on the rule of law, human rights 
and fundamental freedoms, 
  Recalling  their intention to participate actively in the process of economic integration in 
Europe as an important dimension of the stabilit y on the European continent and expressing their 
preparedness to co-operate in seeking ways  and means to strengthen this process, 
 
 Reaffirming  their commitment to the principles of a market economy, which constitutes the 
basis for their relations,   Recalling  their firm commitment to the Final Act of the Conference on Security and Co-
operation in Europe, the Paris Charter, and in partic ular the principles contained in the final document 
of the Bonn Conference on Economic Co-operation in Europe, 
  Resolved  to this end to eliminate progressively the obstacles to substantially all their mutual 
trade, in accordance with the provisions of the General Agreement on Tariffs and Trade 1994 
(hereinafter called "GATT 1994") and the Agreem ent establishing the World Trade Organization 
(hereinafter called "Agreement establishing the WTO"), having in mind that the Serbia and 
Montenegro has the priority to become a member of the WTO. 
  Firmly convinced  that this Agreement will foster the intensification of mutually beneficial 
trade relations among them and contribute to the process of integration in Europe, 
 
 Determined  to implement this Free Trade Agreem ent with the objective to preserve and 
protect the environment and to ensure an optimal use of natural resources in accordance with the 
principle of sustainable growth, 
                                                     
 
* The associated Annexes have been submitted to  the Secretariat for consultation by interested 
Members (office 1174). WT/REG192/1 
Page 2  
 
  Considering  that no provision of this Agreement may be interpreted as exempting the Parties 
from their obligations under other international agre ements, in particular the Agreement establishing 
the WTO,   Have agreed  as follows: 
 
Article 1 
 
Objectives
 
 
1. The Parties shall gradually establish a free trade area on substantially all their bilateral trade 
during a transitional period ending on December, 31 2006, in accordance with the provisions of this 
Agreement and in conformity with those of the GATT 1994, in particular Ar ticle XXIV and of the 
Agreement establishing the WTO, especially the U nderstanding on the Interpretation of Article XXIV 
of the GATT 1994.  
2. The objectives of this Agreement are: 
− to promote through the expansion of trad e, the harmonious development of economic 
relations between the Parties and thus to fo ster the advance of their economic activity; 
 
− to provide fair conditions of compe tition in trade between the Parties;  
 
− to contribute by the removal of barriers to  trade, to the harmonious development and 
expansion of the world trade; 
 
− to enhance co-operation between the Parties. 
  
CHAPTER I - INDUSTRIAL PRODUCTS 
 
Article 2 
 
Scope
 
 1. The provisions of this Chapter shall apply to in dustrial products originating in the Parties.  
2. For the purpose of this Agreement the term “industrial products“ means 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 I to this Agreement.  
Article 3 
 
Basic Duties
 
 
1. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the Most Favored Nation ra te of duty in force on the date of entry into force 
of this Agreement. 
2. If, after the date of entry into force of this  Agreement, any tariff reduction is applied on an 
erga omnes  basis, in particular reductions r esulting from the GATT 1994 and the Agreement 
establishing the WTO, such reduced duties shall repla ce the basic duties referred to in paragraph 1 as 
from the date when such reductions are applied.   WT/REG192/1 
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 3. If a reduction of duties is effected by way of a suspension of duties made for a   particular 
period of time, such reduced duties shall replac e the basic duties only for the period of such 
suspension. 
4. The reduced duties, calculated in  accordance with paragraph 2,  shall be applied rounded to 
the first decimal place.  
5. The Parties shall communicate to each ot her their respective customs duties. 
Article 4 
 
Customs Duties On Imports And Charges Having Equivalent Effect  
 
1. No new customs duties on imports or charges havi ng equivalent effect shall be introduced in 
trade between the Parties as from the date of  the entry into force of this Agreement. 
2. All customs duties and charges having equivalent effect on imports of products originating in 
the Parties shall be abolished in accordance with the provisions laid down in Protocol 1 of this 
Agreement. 
Article 5 
 
Fiscal Duties  
  The provisions of Article 4 shall also apply to customs duties of a fiscal nature.  
Article 6 
 
Customs Duties On Exports And Charges Having Equivalent Effect
 
 1. No new customs duties on exports or charges havi ng equivalent effect shall be introduced in 
trade between the Parties as from the date of entry into force of this Agreement. 
2. All existing customs duties on exports and any charges having equivalent effect shall be 
abolished on the date of entry into force of this Agreement. 
Article 7 
 
Quantitative Restrictions On Imports And Measures Having Equivalent Effect
 
 
 No quantitative restrictions on imports or measures having equivalent effect shall be 
maintained or introduced in trade between the Parties as from the date of entry into force of this 
Agreement.  
Article 8 
 
Quantitative Restrictions On Exports And Measures Having Equivalent Effect
 
  No quantitative restrictions on exports or measures having equivalent effect shall be 
maintained or introduced in trade between the Parties as from the date of entry into force of this 
Agreement. 
 WT/REG192/1 
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 Article 9 
 
Elimination Of Technical Barriers To Trade
 
 1. The rights and obligations of the Parties rela ting to technical barriers to trade shall be 
governed taking into account the WTO Agreement on Technical Barriers to Trade. 
2. The Parties shall co-operate and exchange in formation in the field of standardization, 
metrology, conformity assessment and accreditation with the aim of reducing technical barriers to trade. 
 
CHAPTER II - AGRICULTURAL PRODUCTS 
 
Article 10 
 
Scope
 
 
1. The provisions of this Chapter shall apply to ag ricultural products originating in the Parties. 
2. For the purpose of this Agreement the term “a gricultural products“ means the products falling 
within Chapters 1 to 24 of the Harmonized Commodity Description and Coding System, including the products listed in Annex I to this Agreement. 
Article 11 
 
Exchange Of Concessions
 
 1. The Parties shall grant each other the concessions specified in Protocol 2 to this Agreement 
(hereinafter called “Protocol 2”) as laid down in th at Protocol and in accordance with the provisions 
of this Chapter. 
2. Taking account of: 
− the role of agriculture in their economies, 
 
− the development of trade in agricu ltural products between the Parties, 
 
− the particular sensitivity of the agricultural products, 
 
− the rules of their agricultural policies, 
 
− the results of the multilateral trade negotiations under the WTO, 
 the Parties shall examine within the framework of the Joint Committee referred in Article 34 of this 
Agreement (hereinafter called “Joint Committee”) the possibilities of granting each other further 
concessions in trade in agricultural products. 
  WT/REG192/1 
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 Article 12 
 
Concessions And Agricultural Policies  
 1. Without prejudice to the concessions granted under Article 11 of this Agreement the 
provisions of this Chapter shall not restrict in any way the pursuance of th e respective agricultural 
policies of the Parties or the taking of any measu res under such policies, including the implementation 
of the respective provisions under the WTO. 
2. The Parties shall notify to the Joint Committe e changes in their respective agricultural 
policies pursued or measures applied, which may aff ect the conditions of trade in agricultural products 
between them as provided for in this Agreement. On  the request of any Party, prompt consultations 
shall be held to examine the situation. 
Article 13 
 
Specific Safeguards
 
 
 Notwithstanding other provisions of this Agreem ent, and in particular Article 26 of this 
Agreement, and given the particular sensitivity of  the agricultural products, if imports of products 
originating in a Party, which are subject to con cessions granted under this Agreement, cause serious 
disturbances to the markets of the other Party, the Pa rties shall immediately enter into consultations to 
find an appropriate soluti on. Pending such solution, the Party concerned may take the measures it 
deems necessary. The type and duration of th e measures should not go beyond what is strictly 
necessary to remedy the situation.  
Article 14 
 
Sanitary And Phytosanitary Measures
 
  The Parties shall apply their regulations in  sanitary and phytosanitary matters in a way 
corresponding to the WTO Agreement on the Applica tion of Sanitary and Phytosanitary Measures. 
  
CHAPTER III - GENERAL PROVISIONS 
 
Article 15 
 
Rules Of Origin And Co-Operation In Customs Administration
 
 
1. Protocol 3 (hereinafter called “Protocol 3”) to this Agreement lays down the rules of origin 
and related methods of administrative co-operation. 
2. The Parties shall take appropriate measures, in cluding regular reviews by the Joint Committee 
and arrangements for administrative co-operation, to  ensure that the provisions of Protocol 3 and 
Articles 3 to 8, 11, 16 and 27 of this Agreement are effectively and harmoniously applied, and to 
reduce, as far as possible, the fo rmalities imposed on trade, and to achieve mutually satisfactory 
solutions to any difficulties arising fro m the operation of those provisions.  WT/REG192/1 
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 Article 16 
 
Internal Taxation
 
 1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, 
whether directly or indirectly, discrimination be tween the products originating in the Parties. 
2. Producers and exporters may not benefit from repa yment of internal taxation in excess of the 
amount of direct or indirect taxation imposed on pr oducts exported to the territory of one of the 
Parties. 
Article 17 
 
General Exceptions
 
  This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in 
transit justified on grounds of: public morality, pub lic policy or public security; of the protection of 
health and life of humans, animals or plants; the protection of environment, of the protection of 
national treasures possessing artistic, historic or archaeo logical value; of the protection of intellectual 
property or of the rules relating to gold or silv er or to the conservation of exhaustible natural 
resources, if such measures are made effective in  conjunction with restrictions on domestic production 
or consumption. Such prohibitions or restrictions  shall not, however, constitute a means of arbitrary 
discrimination or a disguised restriction on trade between the Parties. 
 
Article 18 
 
Security Exceptions
 
 
 Nothing in this Agreement shall prevent a Party from taking any measure 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: 
− relating to the traffic in arms, ammuni tion and implements of war, provided 
that such measures do not impair the conditions of competition in respect of products not intended for specifically milita ry purposes, and to such traffic in 
other goods, materials and services as is ca rried on directly or indirectly for the 
purpose of supplying a military establishment; or  
 
− relating to the non-proliferation of bi ological and chemical weapons, nuclear 
weapons or other nuclear explosive devices; or 
 
− taken in time of war or other serious international tension. 
 
Article 19 
 
State Monopolies
 
 1. The 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  WT/REG192/1 
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 discrimination regarding the conditions under which goods are procured and marketed exists between 
nationals of the Parties. The 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 Parties, in law or in fact, either  directly or indirectly supervise, determine or 
appreciably influence imports or exports between th e Parties. These provisions shall likewise apply to 
monopolies delegated by the State to other bodies. 
Article 20 
 
Payments  
 
1. Payments in freely convertible currencies relati ng to trade in goods between the Parties and 
the transfer of such payments to the territory of the Party, where the creditor resides, shall be free 
from any restrictions. 
2. The Parties shall refrain from any exchange or administrative restrictions on the grant, 
repayment or acceptance of short term internationa l trade credits or financial credits in which a 
resident of a Party participates. 
3. Notwithstanding the provisions of paragraph 2, 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 Articles of the Agreement of the International Monetary Fund. 
Article 21 
 
Rules Of Competition Concerning Undertakings  
 1. The following are incompatible with the proper functioning of this Agreement in so far as 
they may affect trade between the 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 
Parties as a whole or in substantial part thereof. 
2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public 
undertakings and undertakings to which the 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 monopoly, shall be subject to provisi ons of paragraph 1 in so far 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 products referred to in Chapte r II of this Agreement the provisions stipulated 
in paragraph 1 (a) shall not apply to such agreemen ts, decisions and practices which form an integral 
part of a national market organization. 
4. If a Party considers that a given practice is inco mpatible with paragraphs 1, 2 and 3 of this 
Article and if such practice causes or threatens to ca use serious prejudice to the interest of that Party WT/REG192/1 
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 or material injury to its domestic industry, th e Party concerned may take appropriate measures under 
the conditions and in accordance with the procedur e laid down in Article 30 of this Agreement. 
Article 22 
 
State Aid
 
 
1. Any aid granted by a Party or through state res ources in any form whatsoever which distorts 
or threatens to distort competition by favoring certain  undertakings or the pr oduction of certain goods 
shall, in so far as it may affect trade between the Parties, be incompatible with the proper functioning 
of this Agreement. 
2. The provisions of paragraph 1 shall not apply to products covered by Chapter II of this 
Agreement. 
3. The Parties shall ensure transparen cy in the area of state aid, inter alia , by reporting annually 
to the Joint Committee on the total amount and the di stribution of the aid given and by providing to 
the other Party, upon request, information on aid schemes and on particular individual cases of state 
aid. 
4. If a Party considers that a particular pr actice, including that in agriculture: 
− is incompatible with the terms of  paragraph 1of this Article, and 
− causes or threatens to cause serious prejudice to  the interest of that Party or material 
injury to its domestic industry or agriculture, 
 it may take appropriate measures under the conditions  of and in accordance with the provisions laid 
down in Article 30 of this Agreement.  
 
 Such appropriate measures may only be taken in conformity with the procedures and under 
the conditions laid down by the Agreement on Subsidies and Countervailing Measures, the GATT 
1994 and by the Agreement establishing the WTO and any other relevant inst rument negotiated under 
their auspices, which are app licable between the Parties. 
 
Article 23 
 
Public Procurement
 
 
1. The Parties consider the liberalization of th eir respective public procurement markets as an 
objective of this Agreement. 
2. The Parties shall progressively adjust their resp ective rules, conditions and practices in the 
field of public procurement with a view to grant suppliers of the other Party access to contract award 
procedures on their respective public procurement markets. 
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 so as to ensure free access, transparency, full ba lance of rights and obligations and mutual opening 
of their respective public procurement markets.  WT/REG192/1 
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 Article 24 
 
Protection Of Intellectual Property  
 1. The Parties shall grant and ensure the prot ection of intellectual property rights on a non-
discriminatory basis, including measures for granti ng and enforcing such rights. The protection shall 
be improved to a level corresponding to the substa ntive standards of the multilateral agreements 
which are specified in Annex II to this Agreemen t by the end of the transitional period of this 
Agreement. 
2. For the purpose of this Agreement the term "int ellectual property protection" includes, in 
particular, protection of copyright and related ri ghts including computer programs and data bases, 
trade marks for goods and services, geographical indi cations, patents, industria l designs, new varieties 
of plants, topographies of integrated circuits , as well as undisclosed information on know-how. 
3. The Parties shall co-operate in matters of inte llectual property. They shall hold, upon request 
of any Party, expert consultations on these matters , in particular, on activities relating to the existing 
or future international conventi ons on harmonization, administration and enforcement of intellectual 
property and on activities in international organiza tions, such as the World Trade Organization and 
the World Intellectual Property Organization, as well as relations of the Parties with any third country 
on matters concerning intellectual property. 
Article 25 
 
Dumping
 
  If a Party finds that dumping within the meaning of Article VI of the GATT 1994 is taking place in trade relations governed by this Agreemen t, it may take appropriate measures against that 
practice in accordance with Article VI of  the GATT 1994 and with the WTO Agreement on 
Implementation of Article VI of the GATT 1994 unde r the conditions and in accordance with the 
procedure laid down in Article 30 of this Agreement.  
Article 26 
 
General Safeguards
 
 
 Where any product is being imported in such increased quantities and under such conditions 
as to cause or threaten to cause:  
(a) serious injury to domestic producers of lik e or directly competitive products in the 
territory of the importing 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 region, 
the Party concerned may take appropriate measur es under the conditions and in accordance with the 
procedure laid down in Article 30 of this Agreement.  WT/REG192/1 
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 Article 27 
 
Structural Adjustment
 
 1. Exceptional measures of limited duration, which de rogate from the provisions of Article 4 of 
this Agreement, may be taken by any of the Pa rties 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 the Pa rty concerned to products originating in the 
other Party, introduced by these measures may not exceed 25% ad valorem  and shall maintain the 
element of preference for products originating in the Parties. 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 Party, as defined in Chapter I during the last year for which statistics are available. 
4. The measures may be applied for a period not exceeding five years unless a longer duration is 
authorised by the Joint Committee.  They shall cease to apply at the expiration of the transitional 
period. 
5. No such measures may be introdu ced in respect of a product if more than three years elapsed 
since the elimination of all customs duties and quan titative restrictions or charges or measures having 
an equivalent effect concerning that product. 
6. The Party concerned shall inform the other Pa rty of any exceptional measures it intends to 
take and, at the request of the other Party, consu ltations shall be held in the Joint Committee on such 
measures and the sectors to which they apply before they are applied. When taking such measures the 
Party concerned shall provide the Joint Committee w ith a schedule for the elimination of the customs 
duties introduced under this Article. This schedul e shall provide for a phasing out of these duties 
starting at the latest two years after their introductio n, at equal annual rates. The Joint Committee may 
decide on a different schedule. 
Article 28 
 
Re-Export And Serious Shortage
 
 
 Where compliance with the provisions of Ar ticles 6 and 8 of this Agreement leads to: 
 
(a) re-export towards a third country against wh ich the exporting Party maintains for the 
product concerned quantitative export restri ctions, export duties or measures or 
charges having equivalent effect, or 
(b) a serious shortage, or threat thereof, of a product essential to the exporting Party, 
and where the situations referred to above give rise or are likely to give rise to major difficulties for 
the exporting Party, that Party may take appropr iate measures under the c onditions and in accordance 
with the procedures laid down in Article 30 of this Agreement.   WT/REG192/1 
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 Article 29 
 
Fulfillment Of Obligations  
 1. The Parties shall take any gene ral or specific measures require d to fulfill their obligations 
under this Agreement. They shall ensure to it th at the objectives set out in this Agreement are 
achieved. 
2. If a Party considers that the other Party has failed to fulfill an obligation under this 
Agreement, the Party concerned may take a ppropriate measures under the conditions and in 
accordance with the procedure laid down in Article 30 of this Agreement. 
Article 30 
 
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 Parties shall endeavour to solve any differences between 
them through direct consultations. 
2. In the event of a Party subjecting imports of products liable to give rise to the situation 
referred to in Article 26 of this Agreement to an  administrative procedure having as its purpose the 
rapid provision of information on the trend of trade flows, it shall inform the other Party. 
3. Without prejudice to paragraph 7 of this Ar ticle, a Party which considers resorting to 
safeguard measures shall promptly notify the other Pa rty thereof and supply all relevant information. 
Consultations between the Parties shall take plac e without delay but not later than 30 days after 
requesting such consultations in the Joint Committ ee with a view to finding a solution acceptable to 
the Parties. 
4. With regard to:  
− Articles 25, 26 and 28 of this Agreement,  the Joint Committee sh all examine the case 
or the situation and may take any decision needed to put an end to the difficulties 
notified by the Party concerned. In case of ab sence of such decision within thirty days 
of the matter being referred to the Joint Co mmittee, the Party concerned may adopt the 
measures necessary in order to remedy the situation.  
 
− Article 29 of this Agreement, the 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 notification to the other Party. 
 
− Articles 21 and 22 of this Agreement, th e Party concerned shall give the Joint 
Committee all the assistance required in or der to examine the case and, where 
appropriate to eliminate the practice objected to . If the other Party 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 agreement within  thirty working days of the matter being 
referred to it, the Party concerned may adopt  appropriate measures to deal with the 
difficulties resulting from the practice in question.  
 5. The safeguard measures taken shall be immediatel y notified to the other Party. They shall be 
limited with regard to their extent and to their dura tion to what is strictly necessary in order to rectify 
the situation giving rise to their application and sh all not be in excess of th e injury caused by the WT/REG192/1 
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 practice or the difficulty in question. Priority shall be given to such measures as will least disturb the 
functioning of this Agreement. 
6. 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. 
7. Where exceptional circumstances requiring immediate action make prior examination 
impossible, the Party concerned may, in the cases of Articles 25, 26 and 28 of  this Agreement, apply 
forthwith the provisional measures strictly necessar y to remedy the situation. The measures taken 
shall be notified without delay a nd consultations between the Parti es shall take place as soon as 
possible within the Joint Committee. 
Article 31 
 
Balance Of Payments Difficulties
 
 
1. The Parties shall endeavour to avoid the im position of restrictive measures including 
measures relating to imports for balance of payments purposes. 
2. Where one of the Parties is in serious balan ce of payments difficulties, or under imminent 
threat thereof, the Party concerned may, in accordance with the conditions established under the 
GATT 1994 and the WTO adopt restrictive measures,  including measures related to imports, which 
shall be of limited duration and may not go beyond what is necessary to remedy the balance of 
payments situation. The measures shall be progressi vely relaxed as balance of payments conditions 
improve and they shall be eliminated when conditio ns no longer justify their maintenance. The Party 
concerned shall inform the other Party forthwith of  their introduction and, whenever practicable, of a 
time schedule for their removal. 
Article 32 
 
Services And Investment  
  1. The Parties recognize the growing importance of certain areas su ch as services and 
investments. In their efforts to gradually develop an d broaden their co-operation, in particular in the 
context of the European integration, they will  examine the possibility of  achieving a progressive 
liberalization and mutual opening of their markets for investments and trade in services, taking into 
account relevant provisions of the General Agreement on Trade in Services. 
2. The Parties will discuss in the Joint Committee the possibilities to  extend their trade relations 
to the fields of foreign direct investment and trade in services.  
Article 33 
 
Evolutionary Clause
 
 1. Where a Party considers that it would be useful in the interests of the economies of the Parties 
to develop and deepen the relations  established by this Agreement by extending them to fields not 
covered thereby, it shall submit a reasoned request to  the other Party. The Parties may instruct the 
Joint Committee to examine such a request and,  where appropriate, may make recommendations, 
particularly with a view to opening negotiations.  WT/REG192/1 
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 2. Agreements resulting from the procedure referre d to in paragraph 1 will be subject to 
ratification or approval by the Parties in accordance with their internal legislation. 
 
CHAPTER IV - INSTITUTIONAL AND FINAL PROVISIONS 
 
Article 34 
 
The Joint Committee  
 1. A Joint Committee is hereby established and sh all be composed of representatives of the 
Parties. 
2. The implementation of this Agreement shall be  supervised and administrated by the Joint 
Committee. 
3. For the purpose of the proper implementation of this Agreement, the Parties shall exchange 
information and, at the request of any Party, shal l hold consultations within the Joint Committee. The 
Joint Committee shall keep under review the possibilit y of further removal of the obstacles to trade 
between the Parties. 
4. The Joint Committee may take decisions in th e cases provided for in this Agreement. On 
other matters the Joint Committee may make recommendations. 
5. The decisions taken by the Joint Committee will  be subject to approval by the Parties in 
accordance with their internal legislation. 
Article 35 
 
Procedures Of The Joint Committee
 
 1. For the proper implementation of this Agreem ent the Joint Committee shall meet whenever 
necessary. Each Party may request that a meeting be held. 
2. The Joint Committee shal l act by consensus. 
3. If a representative of a Party in the Joint Comm ittee has accepted a decision subject to the 
fulfillment of internal legal requirements, the deci sion shall enter into force, if no later date is 
contained therein, on the day of the receipt of the notification about the fulfillment of such 
requirements. 
4. For the purpose of this Agreement the Joint Committee shall adopt its rules of procedure 
which shall, inter alia , contain provisions for convening mee tings and for the designation of the 
Chairperson and its term of office. 
5. The Joint Committee may decide to set up subc ommittees and working groups to assist it in 
accomplishing its tasks. WT/REG192/1 
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 Article 36 
 
Customs Unions, Free Trade Areas And Frontier Trade
 
  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 of the Parties and in particular the provisi ons concerning rules of origin provided for by this 
Agreement.  
Article 37 
 
Territorial Application
 
  This Agreement shall apply to the customs territories of the Parties.  
 
Article 38 
 
Annexes And Protocols
 
 1. The Annexes and the Protocols to this Ag reement are an integral part of it.  
2. The Joint Committee may decide to amend the A nnexes and Protocols to this Agreement in 
accordance with the provisions of paragraph 2 of the Article 35. 
Article 39 
 
Amendments
 
 
 Amendments to this Agreement shall enter into  force in accordance with  procedure stipulated 
in Article 40 of this Agreement.  
Article 40 
 
Entry Into Force
 
 
 This Agreement shall enter into force on the first day of the second month following the date 
of the receipt of the last notification by which Pa rties inform each other through diplomatic channels 
that the internal legal procedures for the entry in to force of this Agreement have been fulfilled. 
 
Article 41 
 
Validity And Termination  
 1. This Agreement is concluded for an indefinite period of time.  
2. Each Party may denounce it through diplomatic ch annels by a written notification to the other 
Party. In such case this Agreement shall cease to appl y on the first day of the seventh month after the 
date on which the other Party received the notification. 
3. The Parties agree that in case of accession of one of them to the European Union, the 
Agreement will be terminated without successive comp ensation for the other Party, at the latest the 
day before membership takes effect.  WT/REG192/1 
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 IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorized thereto, 
have signed the present Agreement.   DONE at ...………........ this .......………...... day of ....................... .......... in two original 
copies, each of them in Romanian, the Serbian, E nglish languages, all texts being equally authentic. In 
case of divergence in interpretation the English text shall prevail.   FOR ROMANIA  FOR THE SERBIA AND MONTENEGRO  
 
 
__________