WORLD TRADE  
ORGANIZATION   
WT/REG142/M/3 
7 July 2011 
 (11-3346) 
Committee on Regional Trade Agreements 
Sixty-first Session  
 
 
 
CONSIDERATION OF THE ECONOMIC INTEGRATION AGREEMENT  
BETWEEN THE EUROPEAN UNION AND CROATIA,  
SERVICES  
 
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 B.V of this session, th e CRTA considered the Economic Integration 
Agreement between the European Union and Croatia  (hereinafter the 'Agreement'), services.  
3. The Chairman said that the Agreement had ente red into force on 1 February 2005.  It had 
been notified by the Parties on 12 October 2009 to the WTO under GATS Article V:7(a) as an 
Agreement providing for the liberalization of trade in services within the meaning of Article V of the 
GATS (document S/C/N/517).  The text of the Agreem ent was available, together with its Annexes, 
on the Parties' official websites. The Factual Presentation on the services aspects 
(document WT/REG142/5 dated 15 April 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) fo r Regional Trade Agreements (doc ument WT/L/671).  In addition, 
he informed Members that written questions and re plies on the Agreement had been distributed in 
document WT/REG142/6, dated 21 June 2011.  He pr oposed to organize the consideration of the 
Agreement by first asking the Parties and then ot her Members for general comments.  The Committee 
would then turn to the specifics of the Agreement using the Factual Presentation to guide the debate.  
He proposed to go through the Factual Presentation se ction by section, and then through the questions 
and replies document. 
4. The representative of Croatia was pleased to have the opportunity to present the Agreement 
(Stabilisation and Association Agreement) between  Croatia and the European Union (EU) to the 
WTO at this very important and crucial moment of  the conclusion of the Croatia – EU membership 
negotiations.  The European Council had agreed th at the accession negotiations with Croatia should 
be closed by the end of June 2011.  The remain ing four policy chapters in Croatia's EU accession 
negotiations were envisaged to be conclude d on 30 June 2011, thus concluding the accession 
negotiations and paving the way for Croatia to beco me the 28th Member of the EU on 1 July 2013.  
As a European partner and not yet a Member State, Croatia was in a position to emphasise the significance of the Agreement for the development and lib eralisation of trade in services in Croatia.     
5. She noted that the Agreement was Croatia's only Free Trade Agreement (FTA) with specific 
provisions on the liberalisation of trade in services.   Croatia had four FTAs with 39 trading partners 
(the EU, CEFTA, EFTA and Turkey).  Croatia's me mbership in the WTO was a precondition for the WT/REG142/M/3 
Page 2  
 
  signing of these agreements and re presented a basis for building an open and strong market integrated 
into the European and global market.  When Cr oatia acceded to the WTO, among other commitments, 
it had undertaken comprehensive and extensive commi tments on trade in services that had made an 
important contribution to the Croatian economy's development.  Croatia was a net exporter of 
commercial services with a growing trade surplus.  The EU was Croatia's largest trading partner.  
Travel services accounted for the largest share of  EU imports of commercial services from Croatia, 
followed by other business and transportation services.   These figures for travel services were to be 
expected , knowing the importance of the tourism  sector in Croatia.  The most numerous tourist 
arrivals (around 9 million last year) were registered  from the EU and neighbouring countries making 
Croatia an attractive tourist destination with its ove r 150 years of tradition.  On the other hand, more 
than two-thirds of investment related to th e EU, whose FDI stock in Croatia had increased 
significantly since the entry into force of the Agreement in 2005. 
6. She added that the EU remained the main and th e most significant partner in trade in goods as 
well as in services.  Among the objectives of the SAA had been the harmonisation of Croatian legislation to that of the EU, an objective which ha d now been fulfilled.  The SAA had contributed to 
the overall reform process in Croatia and had special  importance not only for the Croatia's accession 
to the EU but also for its better and deeper inte gration into the multilateral trading system.  She 
thanked the WTO Secretariat for putting the Agreem ent on the Agenda and for the cooperation in the 
preparation of the Factual Presentation.  
7. The representative of the European Union tha nked the WTO Secretariat for having prepared 
the Factual Presentation and for their support throug hout the process.  The SAA between the EU and 
Croatia was signed on 29 Oc tober 2001.  He recalled that goods as pects of the Agreement had been 
examined in the CRTA in 2004.  Now it was the turn  of the services aspects, which had subsequently 
entered into force in February 2005.  8. Before turning to the details of the Parties'  services commitments, he highlighted the real 
nature of the SAAs, and their importance for both Parties.  The SAA provided the framework for 
political dialogue, promotion of trade and eco nomic relations, and a mechanism for the 
implementation, management and monitoring of socio-economic policies.  It was an essential 
contractual framework to strengthe n relations with the EU, and to ultimately prepare Croatia for EU 
membership.  When the CRTA ha d examined the goods aspects of the Agreement, Croatia was not 
yet an official candidate for EU Accession.  Toda y, Croatia was not only a candidate, but its accession 
to the EU was relatively close.  Therefore, thanks to the implementation of the SAA, and to Croatia's 
remarkable efforts in pursuing reforms and approximating its laws to the EU acquis,  accession to the 
EU could take place in the near future. 
9. Turning to the key elements of the services aspect s of the Agreement, he highlighted that it 
provided for substantial sectoral coverage, since a ll sectors were included, with the exception of air 
transport, inland waterways transport, and maritime  cabotage services.  However, he stressed that 
commitments in these sectors could be made, if the Stabilisation and Association Council so decided.  
Furthermore, the Agreement covere d all modes of supply, with no a priori exclusions.  It also 
eliminated existing discriminatory measures, such  as those based on nationality (Article 45) and 
required the Parties to grant national treatment fo r the establishment and operation of each other's 
companies and nationals (Article 49) from the date  of entry into force of the Agreement.  The 
Agreement also provided for the lib eralization of the supply of serv ices between the Parties and the 
temporary movement of service suppliers (Article 56).  With regards to Croatia's progress in liberalization, the overall alignment with the EU acquis  had been satisfactory.  He had the pleasure of 
informing the Committee that the European Council had invited the Council to take all necessary 
decisions to finalize the accession negotiations by th e end of June 2011, with a view to signing the 
Accession Treaty by the end of the year.  All 35 negotiating chapters including the right of 
establishment and freedom to provide services, freedom of movement for workers and of capital, as  WT/REG142/M/3 
 Page 3 
 
 
  well as other specific chapters such as financial services or transport polic y had been provisionally 
closed.  Closure of the chapter meant that Croatia had reached a satisfactory level of compliance with 
the EU acquis  in the specific area.  The EU would of course continue to monitor, advise and support 
Croatia all the way to accession.  The Parties had provided Members with written replies to all 
questions received so far and would endea vour to clarify further issues if needed. 
 
10. The representative of the United States expressed his appreciation to the EU, Croatia and the 
Secretariat for the information provided with respect  to the Agreement.  He had a question regarding 
the Parties written response to question 2b.  Accord ing to the Parties, Article V of the Agreement 
foresaw the realisation of the SAA within a maxi mum transitional period of six years from the entry 
into force of the Agreement.  The Agreement had entered into force in February 2005 and he asked 
whether they could confirm that, as of today, thei r obligations under the Agreement with respect to 
services had been fully realized.  11. The representative of the European Union conf irmed that the obligations had been fully 
realized.   
 12. The Chairman said that the consideration of the services aspects of the Economic Integration 
Agreement between the European Union and Croatia  had allowed the Committee 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 delega tions wished to ask follow-up questions they were 
invited to forward submissions in writing to the S ecretariat 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 submissi ons, 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. 
13. The Committee took note of the comments made. 
__________