WORLD TRADE  
ORGANIZATION   
WT/REG226/3  
1 July 2011 
 (11-3257) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Economic Integration Agreement  
between the  
European Union and Albania 
(Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the services Agreement between the 
European Union and Albania has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with th e Parties.  The report has been drawn up 
in accordance with the rul es and procedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Ms Juneyoung Lee (tel.: +41 22 739 6791).  WT/REG226/3 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 6  
A.  BACKGROUND INFORMATION  6  
III.  PROVISIONS ON TRADE IN SERVICES 7  
A.  SCOPE AND DEFINITIONS  7  
B.  DENIAL OF BENEFITS  9  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  9  
1.  Market access  9  
2.  National and MFN treatment  9  
3.  Cross-border trade in services  9  
4.  Establishment  10  
5.  Movement of natural persons  10  
D.  LIBERALIZATION COMMITMENTS  12  
1.  General Overview  12  
(a)  EU's GATS commitments 12  
(b)  Albania's GATS commitments 13  
2.  Sector-specific commitments  13  
(a)  Business services 13  
(b)  Communication services 14  
(c)  Construction and related engineering services, and distribution 
services 15  
(d)  Educational services 15  
(e)  Environmental services 16  
(f)  Financial services 16  
(g)  Health related and social services 17  
(h)  Tourism and travel related services and recreational, cultural and sporting services 17
 
(i)  Transport services 18  
(j)  Other services 19  
E.  REGULATORY PROVISIONS  19  
1.  Domestic regulation  19  
2.  Recognition  19  
3.  Subsidies  20  
4.  Safeguards  20  
5.  Payments and capital movements  20  
6.  Approximation of laws  21  
IV.  GENERAL PROVISIONS OF THE AGREEMENT 21  
A.  EXCEPTIONS  21  
B.  INSTITUTIONAL FRAMEWORK  21  
C.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  21  
D.  COOPERATION  23  
 
  WT/REG226/3 
 Page 1 
 
 
   
Key Facts 
 
Parties to the Agreement:  
The European Union (Austria; Belgium; Bulgaria; Cyprus; Czech 
Republic; Denmark; Estonia; Finland; France; Germany; Greece; 
Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; 
Netherlands; Poland; Portugal; Roma nia; Slovak Republic; Slovenia; 
Spain; Sweden; United Kingdom), and Albania.  Date of Signature:  12 June 2006 
 
Date of Entry into Force: 1 April 2009 
 Date of Notification:  7  October 2009 
 
 I. TRADE ENVIRONMENT 
1. The Stabilisation and Association Agreement (her einafter referred to as "the Agreement") 
between the 27 Member States of the European Union (hereinafter "EU") and Albania contains 
provisions on both goods and services.  This Factual Presentation deals with the services aspects of the Agreement as the goods aspects of  it have been considered in April 2008 under the Committee on 
Regional Trade Agreements.
1  Therefore, in this Factual Presenta tion, those subjects that have been 
dealt with in the consideration of the goods aspect of  the Agreement, and that could be related to the 
services aspect of the Agreement (such as compe tition, government procurement, intellectual 
property, accession, and disput e settlement) are excluded. 
2. In 2008, EU(27) ranked as the world's largest trader in commercial services, accounting for 
26.8% of world exports and 23.5% of world imports , while Albania ranked 57th and 67th in terms of 
global exports and imports, acc ounting for 0.06% and 0.07% of  global exports and imports.2  
Economic indicators of the Parties are shown in Table I.1. 
Table I.1 Selected indicators, 2008   
Country / entity Area ('000 km 2) Population 2008 (million) GDP (2008) 
Total Per capita € billiona 
EC (27)                    4,187                                     496.8           12,462      25,086 
EC (25)                    3,848                                     467.6           12,291      26,285 
Albania 27 3.1                8  2,670 
Austria                         82                                         8.3                284      34,065 
Belgium                         30                                       10.7                340      31,735 
Bulgaria                       109                                         7.6                  34        4,469 
Croatia 55.9 4.4 47 10,674 
Cyprus b                           9                                         0.9                  15      16,819 
Czech Republic                         77                                       10.4                148      14,173 
Denmark                         42                                         5.5                234      42,553 
Estonia                         42                                         1.3                  16      11,758 
Finland                       305                                         5.3                185      34,859 
France                       550                                       62.0             1,948      31,390 
Former Yugoslav Republic of  Macedonia 25 2.0 7 3,190 
Germany                       349                                       82.1             2,494      30,359 
Greece                       129                                       11.2                244      21,674 
Hungary                         90                                       10.0                106      10,519 
Table I.1 (Cont'd) 
                                                      
1 WT/REG226/1/Rev.1. 
2 WTO Statistics Database, Trade Profile (March 2010). WT/REG226/3 
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  Country / entity Area ('000 km 2) Population 2008 (million) GDP (2008) 
Total Per capita € billiona 
Ireland                         69                                         4.5                192      43,135 
Italy                       294                                       59.9             1,565      26,153 
Latvia                         62                                         2.3                  23      10,178 
Lithuania                         63                                         3.4                  32        9,623 
Luxembourg                           3                                         0.5                  37      75,941 
Maltab                          0.3                                         0.4                    5      12,359 
Montenegro 14 0.6 3 4,960 
Netherlands                         34                                       16.4                587      35,719 
Poland                       306                                       38.1                360        9,436 
Portugal                         92                                       10.6                166      15,594 
Romania                       230                                       21.5                137        6,349 
Slovak Republic                         48                                         5.4                  65      11,991 
Slovenia                         20                                         2.0                  37      18,281 
Spain                       499                                       45.6             1,095      24,033 
Sweden                       410                                         9.2                328      35,538 
United Kingdom                       242                                       61.4             1,806      29,415 
 
a Exchange rate: Euros per US dollar in 2008: 0.68. 
b  GDP is based on 2007 data. 
 
Source:  WTO estimates based on World Bank. 
 
3. Chart I.1 shows the breakdown of commercial serv ices trade for the EU with the world in 
2000-2008.  The EU was a net exporter of commercial services over the period surveyed, running an increasing surplus.  Other business services, travel and transportation services account for the largest 
share of both imports and exports. 
0100200300400500600
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
 Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2008 is for EU(27).
Source: Eurostat database.Chart I.1
European Union, total co mmercial services trade with world, 2000-2008
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
  WT/REG226/3 
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  4. Chart I.2 shows the breakdown of global commerc ial services trade for Albania in 2000-2008.  
Its exports and imports of commercial services were  relatively stable over the period surveyed with 
consistent increase in both export and import va lues annually, resulting in about €1.6 billion of 
exports or imports in 2008.  Travel  services accounted for the biggest contributors to both exports and 
imports of services during this period. 
0.00.51.01.52.0
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: IMF, BOP CD-Rom.Chart I.2
Albania, total commercial servi ces trade with world, 2000-2008
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
5. The EU's global investment position is depicted  in Chart I.3.  Both inward and outward 
foreign investment stock has shown a growing tre nd consistently since 2003 for inward investment, 
and 2004 for outward investment, although the value of its outward investment remains higher than 
inward investment. WT/REG226/3 
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  05001,0001,5002,0002,5003,0003,500
2000 2001 2002 2003 2004 2005 2006 2007 200805001,0001,5002,0002,5003,0003,500
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.3
European Union, inward and outward foreign investment stock with world, 2000-2008
Inward Outward€ billion € billion
 Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2008 is for EU(27).
Source: Eurostat database.
 
 
6. Chart I.4 shows the EU's investment position with Albania over the period of 2000-2007.  
While inward investment from Albania has remain ed relatively low over this period at between 
€5 million and €144 million, the EU is an important inv estor in Albania.  Its FDI stock in Albania was 
€1.5 billion in 2005 though decr eased to €946 million in 2007.  WT/REG226/3 
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  0.00.40.81.21.6
2000 2001 2002 2003 2004 2005 2006 20070.00.40.81.21.6
2000 2001 2002 2003 2004 2005 2006 2007Chart I.4
European Union, inward and outward forei gn investment stock with Albania, 
2000-2007
Inward Outward€ billion € billion
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007 is for EU(27).  
            No data on inward stock in 2003.
Source: Eurostat database.
 
 
 7. Albania's global investment position is depicted in  Chart I.5.  Albania's stock of inward FDI 
grew significantly over the period reaching €1.9 bill ion in 2008.  In contrast, its outward FDI stock 
has remained relatively low although its value has been increased, resulting in around €100 million in 
2008.  WT/REG226/3 
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  0.00.51.01.52.0
2000 2001 2002 2003 2004 2005 2006 2007 20080.00.51.01.52.0
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.5
Albania , inward and outward foreign investm ent stock with world, 2000-2008
Inward Outward€ billion € billion
Note: No data on outward stock from years 2000-2003.
Source:  UNCTAD, Foreign Direct Investment database.
 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
8. The stabilization and association process (SAP) launched at the Zagreb Summit in 
November 2000 is the framework for EU negotiations w ith the countries of the Western Balkans.  The 
objective is for SAP countries to align their legisl ative framework with the regulatory framework of 
the EU as a precursor to eventual EU membership.  Albania is a potential candidate in the Western 
Balkans together with Bosnia and Herzegovina, Serbia and Kosovo.  While Croatia, the Former 
Yugoslav Republic of Macedonia, and Montenegro  are candidate countries for EU accession.   
9. The Stabilization and Association Agreement between the EU and Albania was signed on 
12 June 2006.  The goods aspects of the Interim Agreement entered into force on 1 December 2006, 
were notified to the WTO on 7 March 2007, and were considered in the Committee on Regional 
Trade Agreement on 21 April 2008.  The services aspect s of the Agreement, which entered into force 
on 1 April 2009, were notified to the WTO on 7 October 2009 under Article V:7(a) of the 
GATS (document S/C/N/515).  The text of the Agreem ent is available, together with its related 
Annexes, on the following official websites: 
 European Union: 
 http://ec.europa.eu/enlargement/pdf/albania/st08164.06_en.pdf  
 
 Albania: 
 http://mete.gov.al  
  WT/REG226/3 
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  10. The Agreement is composed of a Preamble and ten main parts (called "Titles" in the 
Agreement), as follows: 
Box II.1:  Composition of the Agreement 
Titles and 
Chapters Description 
Preamble  
TITLE I General principles 
TITLE II Political dialogue 
TITLE III Regional cooperation 
TITLE IV Free movement of goods 
TITLE V Movement of workers, estab lishment, supply of services, curr ent payments and movement of 
capital  
Chapter I Movement of workers 
Chapter II Establishment 
 Annex IV Establishmen t: Financial Services 
Chapter III Supply of services 
Chapter IV Current payments and movement of capital 
Chapter V General provisions 
TITLE VI Approximation of laws, la w enforcement and competition rules 
TITLE VII Justice, freedom and security 
TITLE VIII Cooperation policies 
TITLE IX Financial cooperation 
TITLE X Institutional, general and final provisions 
 Protocol 5 Land Transport  
 
Source : Stabilization and Association Agreement.  
11. The relevant aspects of the Agreement for the lib eralization of trade in services are contained 
in Title V (Movement of Workers, Establishmen t, Supply of Services, Current Payments and 
Movement of Capital).  Annex IV c ontains a list of financial services,  and Protocol 5 details the rules 
applicable to land transport services. 
12. Article 6 provides for the Agreement to be  implemented progressively and fully over a 
transitional period of a maximum of ten years, (i.e. by March 2019 for the services aspects of the Agreement ).  Certain provisions of Title V applicable to Albania are subject to a transition period 
which is described more fully below. 
III. PROVISIONS ON TRADE IN SERVICES 
A. S
COPE AND DEFINITIONS  
13. In addition to governing relations between th e Parties on trade in services, the Agreement 
includes provisions on: free movement of goods (alr eady implemented as per the Interim Agreement);   
approximation of laws;  law enforcement and compe tition rules;  justice, freedom and security;   
cooperation policies;  and financial cooperation.  
14. The aspects of the Agreement related to trade in  services are contained in Title V, which is 
divided into five chapters.  Chapter I contains di sciplines on movement of workers;  Chapter II relates 
to establishment;  Chapter III compri ses specific rules on the supply of services;  Chapter IV deals 
with current payments and movement of capita l;  and Chapter V sets out general provisions.  
15. The provisions of Title V do not apply to activities that in the territory of either Party are 
connected, even occasionally, with the exercise of official authority (Article 63.2).  The Parties 
explain that this provision is connected to Article 45 of the EC Treaty and states that the provisions of WT/REG226/3 
Page 8    
 
  the right of establishment chapter shall not apply, in so far as any given Member State is concerned, to 
activities which in that state are c onnected, even occasionally, with the exercise of official authority.  
"Official authority" is not defined in the Treaty, but  there is case law of the European Court of Justice 
in this respect.  There is also Article 39(4) of the Treaty that provides for exemptions with regard to 
official authority regarding employment in the public  service.  "Official authority" is not defined in 
Albanian legislation either.  In addition, the Par ties remain free to apply their laws and regulations 
regarding entry and stay, employment, working conditions, establishment of  natural persons and 
supply of services, provided that, in so doing, they do not apply them in such a manner as to nullify or 
impair the benefits accruing to any Party under the terms of the Agreement (Article 64).   
16. Under the Agreement, a "company" is defined as an EU or Albanian company set up in 
accordance with the laws of an EU Member State or  Albania, respectively and having its registered 
office or central administration or principal place of  business in the territory of the EU or Albania 
respectively (Article 49).
3  Companies which are controlled and exclusively owned jointly by 
Albanian companies or nationals and EU companies or nationals are covered by the provisions of 
Title V (Article 65).  An EU or Albanian national is defined as a natural pe rson who is a national of 
an EU Member State or Albania (Article 49).  T hus, unlike in the GATS, the definition of natural 
persons does not extend to permanent residents. 
17. The structure of the Agreement follows neither  a typical "negative" nor "positive" list 
approach.  Its structure reflects one of its main objectives, that is, the approximation of Albania's 
legislation to that of the EU.  Thus, certain part s of the Agreement, such as Title V, mirror some 
elements of the EU's primary law.4   
18. Chapters II and III of Title V address different modes of supply.  Chapter II on establishment 
covers mode 3 but also applies to trade in goods .  Through Article 50, it provides for full MFN and 
national treatment upon entry into force, while also ma intaining some exceptions and/or restrictions in 
Articles 51 to 53.  In particular, the provisions on establishment (Chapter II) do not apply to air 
transport services (without prejudice to the Euro pean Common Aviation Area Agreement which 
Albania ratified in 2006), inland waterways transport services, and maritime cabotage services.  The 
Stabilization and Association Council may make  recommendations for improving establishment and 
operations of these sectors (Article 52).  The Par ties indicate that the Stabilization and Association 
Council has not yet made any concrete recommenda tions for improving establishment and operations 
of these sectors, but full liberalization has b een negotiated in the framework of EU accession 
negotiations.  Chapter III on the supply of services does not provide for immediate liberalization but 
rather establishes a progressive process.  Coveri ng essentially modes 1, 2 and 4, the Chapter also 
contains a standstill obligation (Article 58).  More details are provided below. 
                                                      
3 A "subsidiary" of a company is one which is effectively controlled by the first company 
(Article 49(b)).  A "branch" of a company is a place of  business not having legal personality which has the 
appearance of permanency, such as the extension of a parent body, has management and is materially equipped 
to negotiate business with third parties so that the latter, altho ugh knowing that there will if necessary be a legal 
link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body 
but may transact business at the place of busi ness constituting the extension (Article 49(c)). 
4 i.e. the Treaty establishing the European Community (TEC ), as amended, and notably the internal 
market freedoms.  The freedom of establishment a nd the freedom to provide services across border are 
enshrined in Articles 43 and 49 of the TEC (Articles 49 and 56 of the Treaty on the Functioning of the 
EU - TFU).  The Agreement's approach  to regulating bilateral and prefer ential relations between the EU and 
Albania in trade in services is ther efore influenced by these Articles as well as by the principles that the 
European Court of Justice has developed on the basis of their application.  WT/REG226/3 
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  B. DENIAL OF BENEFITS  
19. A Party may deny the benefits of Title V to a company having only its registered office in the 
EU or Albania unless its operations possess "a real a nd continuous link" with the economy of one of 
the EU Member States or of Albania (Article 49(a)).  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
20. Title V does not contain any explicit market access limitation, comparable to the provisions of 
GATS Article XVI.  However, as regards establishment, services may be provided as from the entry into force of the Agreement for EU and Albanian companies (Article 50).
5  In relation to the supply of 
services (covering modes 1, 2 and, to a certain extent , mode 4), the right to provide services is granted 
progressively in accordance with the provisions  of Chapter III of Title V (Article 57).6  
2. National and MFN treatment 
21. As of the entry into force of the Agreement,  the Parties agree to grant MFN and national 
treatment as regards the establishment of EU and Albanian companies and the operation of their 
subsidiaries and branches (Article 50).7  There is no corresponding provision in the Agreement to 
grant MFN and national treatment for the supply of services. 
3. Cross-border trade in services 
22. The Parties, in Chapter III of Title V, agree to  take the necessary steps to allow progressively 
the supply of services by EU or Albanian companies or nationals which are established in a Party other than that of the person for whom the services are intended (Article 57.1).  The supply of services 
therefore essentially covers modes 1, 2, and 4.  The Stabilization and Association Council will within 
five years from the entry into force of the Agreem ent (i.e. by 31 March 2014), take the measures 
necessary to implement progressively this liberaliza tion of trade in services between the Parties. 
According to the Parties, no steps have been taken to date in this regard.  In that context, account shall 
be taken of the progress achieved by the Parties in  the approximation of their laws (Article 57.3).  
23. The Agreement contains a standstill clause in which the Parties commit not to take any 
measures or actions which render the conditions fo r the supply of services by EU and Albanian 
nationals or companies significantly more restri ctive as compared to the situation on the day 
preceding the day of entry into force of the Agreemen t (Article 58).  If one Party is of the view that 
the other has introduced such restrictive measures it may request consultations with the other Party. 
                                                      
5 This is not applicable in relation with the establis hment of companies for air transport services, inland 
waterways transport services and mariti me cabotage services (Article 52.1). 
6 The concept of mode 2 (supply of a service in the territory of one Member to the consumer of any 
other Member) does not as such exist in the TCU.  However, insofar as EU citizens (i.e. nationals of one 
member state)  have the right to move and reside freel y within the territory of the EU (Article 18 of the TEC) 
nationals may not be prohibited from consuming services in any EU member state.  Once the approximation of 
laws between the EU and Albania is completed, this would become applicable to Albanian companies and 
nationals, in the context of eventual Albanian membership of the EU.   
7 This is not applicable in relation with the establis hment of companies for air transport services, inland 
waterways transport services and mariti me cabotage services (Article 52.1). WT/REG226/3 
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  24. Special provisions apply to the supply of transpor t services, in particular inland transport and 
international maritime transport, as described below in Section D (transport services commitments).
8 
4. Establishment 
25. Chapter II of Title V contains disciplines granti ng the right of establishment.  As regards EU 
or Albanian companies, establishment means th e right to take up economic activities through 
subsidiaries and branches in the other Party (Article  49(d)(ii)).  As regards nationals, establishment 
means the right to take up economic activities as self- employed persons, and to set up undertakings, in 
companies, which they effectively control (A rticle 49(d)(i)). Self-employment and business 
undertakings by nationals shall not extend to seeki ng or taking up employment in the labour market or 
confer a right of access to the labour market of another Party.  The provisions on establishment do not 
apply to those who are not exclus ively self-employed.  The Agreem ent's provisions on establishment 
go beyond the GATS definition of mode 3, as it also  covers the establishment of companies producing 
goods. 
26. Five years after the entry into force of the Agreement (i.e. by 31 March 2014), the 
Stabilization and Association Council is to estab lish the modalities to extend the provisions on 
establishment to nationals of both Parties to ta ke up economic activities as self-employed persons 
(Article 50.4). 
27. The Agreement contains a standstill clause in wh ich the Parties commit not to adopt any new 
regulations or measures which introduce discrimina tion against the establishment of EU or Albanian 
companies in their territory or in respect of thei r operation once established, by comparison with their 
own companies (Article 50.2).   
28. Notwithstanding these commitments on establis hment, a Party may apply specific rules 
concerning the establishment and operation in its resp ective territory of branches of companies of the 
other Party not incorporated in the territory of the fi rst Party, if such rules are justified by legal or 
technical differences between such branches compared  to branches of companies incorporated in its 
territory or, as regards financial services, for pr udential reasons.  The difference in treatment shall 
however not go beyond what is strictly necessary (Article 53). 
5. Movement of natural persons 
29. Chapter I of Title V contains provisions on the movement of workers.9  These provisions 
provide for non-discrimination based on nationality for EU or Albanian nationals legally employed in 
the other Party, as regards working conditions, remune ration or dismissal (Artic le 46).  The provisions 
also provide for access to the labour market for the legally resident spouse and children of a worker 
legally employed in the other Party.  Existin g facilities for access to employment for Albanian 
workers accorded by EU Member States under bila teral agreements shoul d be preserved and if 
possible improved (Article 47).  Other EU Member States shall examine the possibility of concluding 
such bilateral agreements.  The Agreement also prov ides for rules to be laid down for the coordination 
of social security systems for Albanian workers and their family members adding together all periods 
of insurance, employment or residence complete d in various EU Member States for the purpose of 
pensions and annuities in respect of  old age, invalidity and death and for medical care for workers and 
family members and that pensions and annuities are to be freely transferable. 
                                                      
8 Within the EU internal legal framework, the freed om to provide transport services is governed by 
specific provisions.  See Title VI of TFU (ex Articles 70-80 of TEC). 
9 Such provisions are unrelated to the GATS provisions on the movement of natural persons supplying 
services.  WT/REG226/3 
 Page 11 
 
 
  30. Chapter II of Title V on "Establishment" contains provisions (akin to the GATS) on the right 
of EU and Albanian companies (or a subsidiary or  branch) established in the territory of the other 
Party to employ, in accordance with the legislati on in force in the host country of establishment, 
employees who are EU and Albanian nationals (Article 55).  To be eligible, employees must be "key personnel" exclusively employed by companies, subs idiaries or branches.  Their residence and work 
permits shall only cover the period of such employ ment.  No time limits on residence and work 
permits are laid down in the Agreement.  Key pe rsonnel are considered eligible "intra-corporate 
transferees"
10 as long as the organization employing them is a legal person and they have been 
employed by it or have been partners in it for at least the year immediately preceding the movement.  The covered intra-corporate transferees are pe rsons working in a senior position within an 
organization, who primarily direct the management of the establishment, receive general supervision 
or direction principally from the board of directors or stockholders
11, as well as the persons working 
within a company who possess uncommon knowledge  essential to the establishment's service, 
research equipment, techniques or management.  
31. The entry into and the temporary presence, within th e territory of the EU or Albania, of EU or 
Albanian nationals, is permitted for persons working in a senior position and responsible for the 
setting up of a subsidiary or a branch of a company in one of the Parties.  Such permission is subject to the condition that those representatives are not  engaged in making direct sales or supplying 
services, and in case the company has its principal place of business outside the EU or Albania and has no other representative office, branch or subs idiary in the EU or Albania (Article 55.3). 
32. Chapter III of Title V on "supply of services" contains provisions permitting the temporary 
movement of natural persons providing the service or who are employed by the service provider as 
key personnel and who seek temporary entry for the purpose of negotiating the sale of services or 
entering into agreements to sell services, but are not engaged in making dire ct sales to the general 
public or in supplying services themselves (Article 57. 2).  The measures necessary to implement such 
provisions are to be taken by the Stabilization and Association Council within five years from the 
entry into force of the Agreement (i.e., by 31 Ma rch 2014).  Account shall be taken of the progress 
achieved by the Parties in the approximation of thei r laws.  According to the Parties, no steps have 
been taken to date. 
33. In its horizontal commitments in its GATS sch edule, the EU has made commitments for 
intra-corporate transfers (ICTs), business visitors (BVs) and contractual service suppliers (CSSs) subject to conditions which vary for individual EU Member States.  For a majority of EU Member 
States, in the case of ICTs, the natural person must  work within a juridical person, other than a 
non-profit making organization, established in the territory of a WTO Member and have been 
employed or been a partner in it for at least the year immediately preceding the date of admission.  The natural person is temporarily transferred to pr ovide a service through commercial presence in the 
territory of the EU Member State concerned.  For three EU Member States an economic needs test is 
required.  The duration of temporary stay for ICTs is defined by individual EU Member States.  The 
category of business visitor applies to i) service selle rs seeking temporary entry to negotiate the sale 
of services and ii) those in a senior position, within a juridical person, responsible for the setting up of 
a commercial presence of a service provider (but not engaged in making direct sales or supplying 
                                                      
10 An "intra-corporate transferee" is defined as a natural person working within an organization in the 
territory of a Party, and being tempor arily transferred in the context of pu rsuit of economic activities in the 
territory of the other Party;  the or ganization concerned must have its prin cipal place of business in the territory 
of a Party and the transfer be to an establishment (branc h, subsidiary) of that organization, effectively pursuing 
like economic activities in the territory of the other Party (Article 55.2.(c)).   
11 Including directing the establishment of a departme nt or sub-division; supervising and controlling the 
work of other supervisory, professional or managerial employees;  and having the authority personally to recruit 
and dismiss staff. WT/REG226/3 
Page 12    
 
  services).  The duration of temporary stay of BVs is defined by individual EU Member States.  
Seventeen EU Member States have scheduled ho rizontal commitments on CSSs which apply to 
natural persons engaged in the supply of a service on a temporary basis as employees of a juridical person, who has no commercial presence in any EU Member State.  The temporary entry and stay is for a period of three months in any 12 month peri od (in the case of most EU Member States which 
have scheduled commitments on CSSs).  The services contract has to be obtained in a predefined list 
of activities.
12   
34. In the GATS, Albania has scheduled horizontal  commitments on the entry and temporary stay 
of foreign natural persons limited to intra-corporate transferees (ICTs)13;  service sellers ;  and persons 
responsible for the setting up a commercial presence.  The definition of ICTs is broader in its GATS 
schedule which includes not only branches and subsidiari es, but also affiliates, than in the Agreement. 
D. LIBERALIZATION COMMITMENTS  
35. The approach taken in this section is to compar e the sector-specific commitments taken by the 
EU and Albania in their GATS schedules with the liberalization offered under the Agreement.    
1. General Overview 
(a) EU's GATS commitments 
36. In its GATS schedule, the EU has made co mmitments in 115 of 155 services sectors. 14  It has 
scheduled extensive commitments, including on fina ncial services, telecommunications, transport, 
tourism and professional services, subject to indivi dual EU Member State limitations.  The EU did not 
commit postal and audiovisual services and space tr ansport services and scheduled MFN exemptions 
in a number of sectors including audiovisual services, transport services, and publishing.15 
37. In its GATS schedule the EU maintains a horiz ontal "public utilities carve-out", while under 
the Agreement "activities that in the territory of either Party are connected, even occasionally, with 
the exercise of official authority" are excluded from its scope (Article 63.2).   
38. Individual EU Member States maintain a number of horizontal reservations concerning 
conditions for commercial presence (mode 3) in the EU 's GATS schedule, particularly with regard to 
the composition of the board of directors or permitted type of legal entity.  In all EU Member States 
except Hungary and Poland, eligibility for subsidies from the EU may be limited to juridical persons 
                                                      
12 These are legal services;  accounting services;  taxa tion advisory services;  architectural services,  
urban planning and landscape architectural services;  en gineering services, integrated engineering services:  
computer and related services;  research and developm ent services;  advertising;  management consulting 
services;  services related to management consulting;  te chnical testing and analysis services;  related scientific 
and technical consulting services;  translation services;  construction services, site investigation work;  higher 
education services;  travel agencies and tour operator  se rvices;  entertainment services;  services related to the 
sale of equipment or to the assignment of a patent. 
13 ICTs in Albania's GATS schedule are essential persons (executives and senior managers, specialists) 
who are employees of a business or company providing se rvices in Albania through a branch, subsidiary or 
affiliate established in Albania.  Entr y is limited to a period of five years. 
14 The GATS EU(25) schedule was certified on 18 December 2006 (S/L/286) and is contained in 
document S/C/W/273, and Add.1 and Suppl.1.  For ease of reference, comparisons made between the EU's commitments under the Agreement and its GATS schedule  are based on the EU(25) GATS schedule.  This 
consolidated schedule has not yet entered into force because the ratification process has not been completed in a 
number of EU Member States.  The GATS EU(27) schedule has not yet been certified.   
15 Based on the EU(12) list of MFN exemptions.  MFN exemptions have also been scheduled by the 15 
countries which acceded to  the EU since 1995.   WT/REG226/3 
 Page 13 
 
 
  established within the territory of an EU Member State or a particular geographical sub-division 
thereof.  Subsidies for research and developmen t are unbound.  Such reservations have not been 
scheduled under the Agreement.    
39. With regard to investment, horizontal limitations  are listed by about half EU Member States 
in their GATS services schedule.  Such reservations are not indi cated under the Agreement.  Though 
the Agreement does not contain a specific section on investment, the provisions related to mode 3, 
particularly in the context of Chapter II of Title V (Establishment), partially covers investment-related 
measures.   
40. In the GATS schedule, a number of Member States have scheduled reservations on real estate 
purchases.  Under the Agreement, there is no particul ar reservation on real estate.  However, a joint 
declaration (concerning Article 61 of the Agreement) specifies that the acquisition of real estate by 
Albanian nationals is allowed in the Member St ates of the EU in accordan ce with the applicable 
Community law, subject to specific exceptions permitted thereby and applied in conformity with the applicable national legislations of the EU Member States. 
(b) Albania's GATS commitments 
41. In its GATS schedule, Albania has made commitments in 108 of 155 services sectors.  In its 
horizontal commitments, the main limitations are in real estate and entry and temporary stay of foreign natural persons (intra-corporate transferees,  service sellers, and pers ons responsible for setting 
up a commercial presence).  Albania maintains MFN ex emptions under Article II of the GATS in road 
transport services (passengers and freight), sale and marketing of air transport services and computer 
reservation systems (CRS), audiovisual services (production and distribution of: audiovisual works 
through broadcasting or other forms of transmis sion to the public, and television programmes and 
cinematographic works). 
42. Under the Agreement, subsidiaries and branches of EU companies have the right, as from the 
date of entry into force of the Agreement to use and rent real property in Albania (Article 50.5).  
Subsidiaries and branches of EU companies have the right to acquire and own real estate in Albania 
where such rights are necessary for the conduct of economic activities for which they are established 
excluding natural resources, agricultural land, forest s and forestry land.  Seven years after the entry 
into force of the Agreement (i.e. by 31 March 2016) , the Stabilization and Association Council shall 
establish the modalities for extending such rights to excluded sectors. 
43. Albania authorizes as from the entry into force of the Agreement the acquisition of real estate 
in Albania by EU nationals, except for its scheduled limitations in the GATS.  Within seven years 
from the entry into force of the Agreement (i.e ., by 31 March 2016), Albania shall progressively 
adjust its legislation to offer national treatment to EU nationals in this regard.  Five years after the 
entry into force of the Agreement (i.e., by 31 March 2014), the Stabilization and Association Council 
shall examine the modalities for the progressive el imination of such limitations (Article 61.2). 
2. Sector-specific commitments 
(a) Business services 
44. The EU's GATS schedule contains commitments in all 11 sub-sectors of the professional 
services category.
16  In legal services, more than half of the EU Member States have reservations, 
                                                      
16 The EC schedule contains 13 speci fic entries; architecture and en gineering services, as well as 
auditing and bookkeeping services have been split into separate categories; the schedule includes "related 
scientific and technical consulting services " as an "other" professional service. WT/REG226/3 
Page 14    
 
  particularly for mode 3 in the form of type of legal entity or nationality requirements.  Accounting, 
auditing and bookkeeping services are also subject to  reservations in the EU GATS schedule, again 
for mode 3.  Architectural services are subject to nationality and residence requirements in some EU Member States under the GATS.  Medical and dental services, veterinary services and services provided by midwives, nurses, physiotherapists a nd para-medical personnel are in some cases 
unbound for mode 3 under the GATS, are subject to na tionality requirements, or access is restricted to 
natural persons.  Computer and Related Services ar e for the most part fully committed for modes 1-3 
under the GATS for all EU Member States (except Cyprus, Malta, Pola nd, and Slovak Republic).  No 
commitments were made in research and developm ent on natural sciences and interdisciplinary R&D 
services by most EU Member States in modes 1-3,  while real estate servi ces is unbound in modes 1-3 
for about half EU Member States.  For renta l/leasing services without operators, modes 1-3 are 
unbound for some EU Member States, principally in the case of the recently acceded members.  
Under other business services, all sub-sectors are committed by the majority of EU Member States, though restrictions remain, in particular, in services incidental to manufacturing, placement and supply, investigation and security services, where modes 1-3 remain unbound for a number of 
EU Member States.  The provision of business services through mode 4 for ICTs and BVs (where not 
unbound), is subject to nationality and residency requir ements in a number of EU Member States.  For 
a number of sub-sectors, CSSs are unbound (except fo r those sub-sectors positively listed in the EU's 
horizontal commitments). 
45. In its GATS schedule, Albania has made ex tensive commitments in business services and 
liberalized modes 1-3 for the majority of sub-sector s listed.  Exceptions include a reservation taken 
for:  legal services that only Albanian citizens-a ttorneys-at-law and notaries who reside in Albania 
have the right to provide the services;  and me dical and dental services, and services provided by 
midwives nurses, physiotherapists and paramedi cal personnel that licensing is done only in 
cooperation with an Albanian professional whether this  professional is a partner or an employee in the 
foreign company.  There are no mode 4 limitations  on national treatment across all the sub-sectors 
committed except legal services.  Albania has no commitments in research and development services;  
real estate services;  rental/leasing services without ope rators relating to ships, aircraft, other transport 
equipment, and other machinery and equipment;  se rvices incidental to energy distribution;  
placement and supply services of personne l;  and investigation and security. 
46. Under the Agreement, there are no national treatment restrictions on professional services in 
relation to mode 3 (or "establishment" more broa dly, as defined under the Agreement). Further, the 
provision of such services through other modes of supply was bound at the existing level of 
restrictiveness and will be progressively libera lized within the prescrib ed transition period. 
(b) Communication services 
47. The EU has no GATS commitments in postal and audiovisual services.  For courier services, 
modes 1-3 remain unbound for the majority of EU Member States.  For telecommunication services, 
the EU's commitments under the GATS include "a ll services consisting of the transmission and 
reception of signals by any electromagnetic mean s, excluding broadcasting".  Telecommunication 
services is, for the most part, subject to full comm itments by the majority of EU Member States;  
mode 1 is unbound for Cyprus and Malta and equity ceilings on mode  3 exist for a small number of 
EU Member States.  The EU GATS schedule also incorporates the Reference Paper obligations for 
basic telecommunications services.  For mode 4, ICTs and BVs are, for most EU Member States, 
unbound except as indicated in the horizontal section of the EU's schedule.  CSSs are unbound for all 
EU Member States in communication services. 
 
  WT/REG226/3 
 Page 15 
 
 
  48. Albania has no GATS commitments in audiovisu al services although it has full commitments 
in postal services related to parcels, courier services, and some telecommunication services except mode 4 limitations on market a ccess.  The attached reference paper on regulatory principles is 
incorporated as additional commitments by Albania.   
49. Under the Agreement, there are no national treatment restrictions on communication services 
in relation to mode 3 (or "establishment" more broa dly, as defined under the Agreement).  Further, the 
provision of such services through other modes of supply was bound at the existing level of 
restrictiveness and will be progressively libera lized within the prescrib ed transition period. 
(c) Construction and related engineeri ng services, and distribution services 
50. The EU GATS schedule shows variations in the sector scope for the Czech Republic, the 
Slovak Republic, and Sweden (which exclude CPC 515 and 518 from their GATS commitments), 
Finland (which excludes CPC 511, 515, 517, and 518), Latvia (excludes 511), and Slovenia 
(excludes 518).
17  In the GATS schedule, five newly acceded EU Member States have no 
commitments in mode 3.  There are no commitment s in commission agents' services in modes 1-3 for 
the majority of the newly acceded EU Members in the GATS schedule including mode 1 limitations 
for France and Italy.  For wholesale trade services, ma rket access limitations in certain products are 
registered in France (for pharmacies, tobacco and matches), and Estonia, Italy, and Portugal (for 
tobacco) for modes 1 and 3.  Retailing is limited in scope for some EU Member States and remains subject to an economic needs test in some EU Member States, while franchising is unbound in modes 
1-3 for three newly acceded EU Member States and Sweden.  For mode 4, ICTs and BVs are unbound 
except as indicated in the horizontal part of the EU's schedule with additi onal commercial presence or 
nationality conditions for a few EU Member States.  For CSSs, defined professional qualifications and 
experience are required in the case of construction services in some EU Member States.  In distribution services, CSSs are unbound for all EU Member States. 
51. Under its GATS schedule, Albania has made fu ll commitments in construction and related 
engineering services except mode 4 limitations on market access.  Apart from mode 3 limitations on 
national treatment for some sub-sectors of commissi on agent's services, wholesale trade services, and 
retailing services, and mode 4 limitations on market access, Albania also has full commitments in distribution services. 
52. Under the Agreement, there are no national treat ment restrictions on construction, related 
engineering services, and distribution services in rela tion to mode 3 (or "estab lishment" more broadly, 
as defined under the Agreement).  Further, the pr ovision of such services through other modes of 
supply was bound at the existing level of restrictiven ess and will be progressively liberalized within 
the prescribed transition period. 
(d) Educational services 
53. In the EU's GATS schedule, the provision of educational services is limited to privately 
funded services.  In some EU Member States, the provision of such services is dependent on 
nationality or licensing approval, mainly for mode 3.   For ICTs and BVs under mode 4, the nationality 
condition is applied by some EU Member States.  The majority of EU Member States have no 
commitments for CSSs in higher education services.   
                                                      
17 Specifications of the services activities are:  CPC 511 - pre-erecti on work at construction sites; 
CPC 512 - construction work for buildings; CPC 513 - construction work for civil engineering; CPC 514 - 
assembly and erection of pre-fabricated constructions ; CPC 515 - special trade construction work; CPC 516 - 
installation work; CPC 517 – building completion and finishing work;  CPC 518 - renting services related to 
equipment for construction or demolition of buildings  or civil engineering works, with operator. WT/REG226/3 
Page 16    
 
  54. Albania has commitments in the four main educational services (i.e., primary, secondary, 
higher, and adult education).  For primary a nd secondary education, it has no market access 
limitations in modes 2-3.  For higher secondary, higher education, and adult education, it has no 
market access limitations in modes 1-3.  Albani a has no limitations on national treatment across the 
four modes in all education services it has made commitments in.  
55. Under the Agreement, there are no national treatment restrictions on educational services in 
relation to mode 3 (or "establishm ent" more broadly, as defined under the Agreement).  Further, the 
provision of such services through other modes of supply was bound at the existing level of 
restrictiveness and will be progressively libera lized within the prescrib ed transition period. 
(e) Environmental services 
56. In the EU GATS schedule, modes 2-3 of all sub-sectors of environmental services are 
unbound for a handful of EU Member States, principally the recently acceded members.  For mode 1 in all sub-sectors, some of the recently acceded EU Member States have not registered limitations, particularly Estonia, which has consistently sche duled no limitations in all sub-sectors.  Mode 4 for 
ICTs and BVs is unbound except as indicated in the horizontal section for most EU Member States 
(and unbound for the rest).  CSSs are unbound fo r all EU Member States.  Albania in its GATS 
schedule, has full commitments in environmental services except mode 4 limitations on market access. 
57. Under the Agreement, there are no national treat ment restrictions on environmental services 
in relation to mode 3 (or "establishment" more broa dly, as defined under the Agreement).  Further, the 
provision of such services through other modes of supply was bound at the existing level of 
restrictiveness and will be progressively libera lized within the prescrib ed transition period. 
(f) Financial services 
58. In the EU GATS schedule, 18 Member Stat es took commitments in accordance with the 
provisions of the "Understanding on Commitments in Financial Services" (hereinafter the Understanding), while the remaining Member States made commitments on the basis of the traditional 
scheduling approach.  For those EU Member St ates which scheduled their GATS commitments in 
accordance with the Understanding, in insurance and insurance-related services, a number of 
countries scheduled reservations allowing only EU es tablished companies to offer insurance services 
or requiring a specific legal form.  In banking and ot her financial services, mode 3 in particular is 
subject to a number of reservations, regarding form s of establishment or licensing requirements.  For 
ICTs and BVs under mode 4, natio nality and/or residency conditions are applied by some EU 
Member States.  CSSs are unbound for those 18 Member States under the Understanding.    
59. In its GATS schedule, Albania has scheduled so me limitations on national treatment in mode 
3 for some insurance and insurance-related services (i.e., life and non-life insurance services, marine, 
aviation and transport services, reinsurance and retrocession) that commercial presence is restricted to those companies that have exerci sed insurance activities in the home country for at least five years 
and the general representative of such companies mu st reside in Albania.  In banking and other 
financial services, Albania has no limitations on na tional treatment across the four modes, although 
certain sub-sectors
18 are unbound for mode 1 on market access.  In mode 2 on market access, Albania 
has scheduled limitations (up to 2010) for certain banking and other financ ial services that the Bank 
                                                      
18 Including acceptance of deposits and other repayable funds from the public, lending of all types 
(including consumer credit, mortgages credit factoring and financing of commercial transaction), financial leasing, all payment and money transmission services, gu arantees and commitments, m oney market instruments, 
and foreign exchange.  WT/REG226/3 
 Page 17 
 
 
  of Albania reserves the right to maintain capital cont rols on a national treatment basis.  According to 
Albania, this regime ceased upon entry into force of the Regulation no. 70 of the Bank of Albania on 
30 September 2009.  Mode 4 on market access for all financial services sub-sectors scheduled is 
unbound except as indicated in the horizontal section. 
60. Under the Agreement, the Parties may take meas ures for prudential reasons, including for the 
protection of investors, depositors, policy holders or  persons to whom a fiduciary duty is owed by a 
financial service supplier, or to ensure the integrity and stability of the financial system (Article 51.2). 
(g) Health related and social services 
61. In the EU's GATS schedule, mode 3 for hospital services is unbound for six EU Member 
States and subject to authorization or economic needs tests in a number of others.  Modes 1-3 of other 
human health and other health related services are unbound for most EU Member States.  For social 
services, mode 3 is unbound for eight EU Member States.  Mode 4 is unbound for some EU Member States for ICTs and BVs and subject to nationality c ondition or prior authorization in others.  CSSs 
are unbound in all EU Member States. 
62. In its GATS schedule, Albania has made comm itments in hospital and other human health 
services with no limitations except that for comme rcial presence, licensing shall be in cooperation 
with an Albanian professional whether this professi onal is a partner or an employee in the foreign 
company.  Albania has not made any commitments in social services.  Mode 4 is unbound except as 
indicated in the horizontal section.  
63. Under the Agreement, there are no national treatme nt restrictions on health related and social 
services in relation to mode 3 (or "establishment"  more broadly, as defined under the Agreement). 
Further, the provision of such services through othe r modes of supply was bound at the existing level 
of restrictiveness and will be progressively libera lized within the prescribed transition period. 
(h) Tourism and travel related services and r ecreational, cultural and sporting services 
64. In the EU's GATS schedule, for hotels, restaurants and catering, mode 1 is unbound except 
for catering for a number of EU Member States.  For mode 3, seven EU Member States have 
scheduled reservations on market access, e.g., requ iring authorization in or der to protect areas of 
particular historic and artistic interest.  For trav el agencies and tour operators services, mode 1 is 
unbound for a handful of EU Member States, while mode 3 is subject to licensing or economic needs tests for five EU Member States.  In addition, fo r a few EU Member States, cross-border provision of 
such services requires establishment.  Tourist guide  services is unbound in modes 1-3 for a majority 
of the newly acceded EU Member States, while modes 1-3 of other tourism and travel related services 
are unbound for all EU Member States except Latv ia.  For mode 4, ICTs and BVs are unbound for 
some EU Member States, while CSSs are unbound for all EU Member Stat es except for travel 
agencies and tour operators services in which a number of EU Members have made commitments subject to limitations indicated in the horizontal section.   
65. In the EU's GATS schedule, for entertainment services, mode 1 is unbound for all but three 
EU Member States, while mode 3 is unbound for seven.  Modes 1-3 of news and press agency 
services is unbound for most recently acceded EU Member  States, while in France, Italy and Portugal 
foreign participation in companies publishing publicati ons is subject to an equity ceiling.  For almost 
all EU Member States, modes 1-3 of libraries, archives, museums and other cultural services is 
uncommitted.  In the case of sporting and other r ecreational services, modes 1-3 are uncommitted for 
a number of the recently acceded EU Member States.  As regards mode 4, ICTs, BVs and CSSs are 
unbound for a number of EU Member States.    WT/REG226/3 
Page 18    
 
  66. In Albania's GATS schedule, it has fully committed  in hotels and restaurants services, travel 
agencies and tour operators services, tourist guide  services, news agency services, library services, 
and sporting and other recreational services except mode 4 limitations on market access.  For cinema 
theatre operation services, commercial presence is not limited except it is unbound for access to 
subsidies. 
67. Under the Agreement, there are no national tr eatment restrictions on tourism and travel 
services, and recreational, cultural and sporting ser vices in relation to mode 3 (or "establishment" 
more broadly, as defined under the Agreement). Fu rther, the provision of such services through other 
modes of supply was bound at the existing level of restrictiveness and will be progressively 
liberalized within the prescribed transition period.  
(i) Transport services 
68. In its GATS schedule most EU Member States have no commitments in modes 1-3 in 
maritime transport and inland waterways transport services (exceptions are some of the newly acceded EU Member States which have in some cases,  with the exception of rental of vessels with 
crew which is not listed in the EU's schedule, made  full commitments in this sub sector).  In air 
transport services, rental of aircraft with crew is unbound in modes 1-3 for all EU Member States 
except Poland.  Maintenance and repair of aircra ft and parts thereof, sales and marketing and 
computer reservations systems are fully committed in modes 2-3 in most EU Member States (for the most part, the newly acceded Member States have not bound these sub-sectors).  There are no commitments in space transport in the EU GATS schedule and for most Member States in rail transport services, passenger and freight transpor tation and rail freight agency and forwarding 
services.  Modes 2-3 of maintenance and repair of rail transport equipment is fully committed for the 
majority of EU Member States, while pushing and towing services under rail transport services has not been scheduled.  In road transport services, mode 3 of passenger and freight transportation is 
either unbound or subject to reservations in the form  of authorization or economic needs tests, while 
maintenance and repair of road transport e quipment and supporting services for road transport 
equipment are unbound in modes 1-3 for a number of EU Member States.  Rental of commercial 
vehicles with operator under road transport services has not been scheduled.  With the exception of 
Hungary and Lithuania, pipeline transport is unboun d for all EU Member States.  A number of EU 
Member States have no commitments in services auxiliary to all modes of transport and other transport services.  For mode 4, ICTs, BVs and CSSs are for the most part unbound for most EU Member States except some of the newly acceded Member States which have made commitments 
subject to horizontal limitations. 
69. In its GATS schedule, Albania has fully  committed in several transport services
19 except 
mode 4 limitations on market access.  For st orage and warehousing services, limitations on 
commercial presence are not registered.  However, in  case of occupation of the public domain, public 
utility concessions or licensing proce dures may apply.  Internal waterways transport, some of air 
transport services, space transport, rail transport ser vices, and pipeline transport are not scheduled.   
70. Under the Agreement, Article 52 under Chap ter II (Establishment)  specifies that the 
provisions on establishment do not apply to air tran sport services, inland waterways transport services 
and maritime cabotage services.  The Stabilisatio n and Association Council may however make 
recommendations for improving establishment and ope rations in these areas.  According to the 
Parties, no recommendations have been made to date. 
                                                      
19 Such as passenger and freight tran sportation services (less cabotage tr ansport), rental of vessels with 
crew, maintenance and repair of vessels, aircraft and road transport equipment, supporting services for maritime transport and road transpor tation services, rental of commercial vehi cles without operat ors, cargo handling 
services, freight transport agency serv ices, and freight inspection services.  WT/REG226/3 
 Page 19 
 
 
  71. The supply of land transport services is governed by Protocol 5 which seeks to ensure 
unrestricted road transit traffic across Albania and the EU, the application of the principle of 
non discrimination and progressive harmonization of Al banian transport legislation with that of the 
EU.  Protocol 5 applies to infrastructure, rail and comb ined transport, and road transport.  With regard 
to rail and combined transport, the Parties agree to adopt mutually coordinated measures necessary for 
the development and promotion of rail and combined  transport as a means of ensuring that in the 
future a major proportion of their bilateral and tr ansit transport through Albania is performed under 
more environmentally-friendly conditions (Art. 7 of Prot ocol 5).  In road transport, the Parties agree 
to grant unrestricted access to the EU transit tra ffic through Albania (defined as the carriage, by a 
carrier established in the EU, of goods in transit th rough Albanian territory en route to or from an EU 
Member State) and to Albanian transit traffic (d efined as the carriage, by a carrier established in 
Albania, of goods in transit from Albania through th e EU territory and destined for a third country or 
of goods from a third country destined for Albania) through the EU from the date of entry into force 
of the Agreement.  Under the Agreement ther e are no reservations listed for space and pipeline 
transport, thereby effectively liber alizing establishment in these sectors. 
72. With regard to international ma ritime transport the Parties unde rtake to apply effectively the 
principle of unrestricted access to the market and traffic on a commercial basis (Article 59.2).  They 
are committed to a freely competitive environment for in ternational maritime transport.  In applying 
this principle, they shall not introduce cargo-shari ng clauses in future bilateral agreements with third 
countries, and on the date of entry into force of the Agreement shall abolis h all unilateral measures 
and administrative, technical and other obstacles that  could have restrictive or discriminatory effects 
on the free supply of services in international maritime transport (Article 59.3).  The Parties agree that 
mutual market access in air transport will be dea lt with by special agreements to be negotiated 
between them (Article 59.4).  Prior to the conclusion  of such agreements, the Parties agree not to take 
any measures or actions which are more restrictiv e or discriminatory as compared with the situation 
prior to the entry into force of th e Agreement (Article 59.5).  Albania agrees to adapt its legislation, 
including administrative, technical and other rules, to that of the EU existing at any time in air, 
maritime and inland transport insofar as it serves liberalization purposes and mutual access to the 
markets of the Parties and facilitates the move ment of passengers and goods (Article 59.6). 
(j) Other services 
73. Under its GATS schedule, the EU has listed some beauty related services (i.e., hairdressing 
services;  cosmetic treatment, manicure and pedicure services;  other beauty treatment services), and 
services related to the sale of equipment or to the assignment of a patent, though with many unbound 
commitments in the four modes for most of the EU  Member States.  Albania has not listed any other 
services not included elsewhere.  The Agreement lists no limitations in these sub-sectors. 
E. REGULATORY PROVISIONS  
1. Domestic regulation 
74. There is no provision per se  in the Agreement on domestic regulation in line with 
GATS Article VI.  However, the approximation process also covers measures governed by GATS 
Article VI.  
2. Recognition 
75. To help EU and Albanian nationa ls to take up regulated professional activities in the territory 
of the Parties, the Stabilization and Association C ouncil shall examine necess ary steps for the mutual 
recognition of qualifications (Article 54).  According to the Parties, no steps have been taken to date 
at the level of the Stabilization and Association C ouncil in this regard.  However, approximation of WT/REG226/3 
Page 20    
 
  legislation in this field is taking place at the subcommittee level.  Albanian scope and minimum 
training requirements for the regulated professi ons are broadly in li ne with the acquis. 
3. Subsidies 
76. The Agreement has no specific provision s on subsidies in trade in services. 
4. Safeguards 
77. Albania may introduce measures derogating from Chapter III regarding the establishment of 
the EU companies and national of certain industries which: i) are undergoing restructuring, or are facing serious difficulties, particularly where these entail serious social problems in Albania;  ii) face the elimination or a drastic reduction of the tota l market share held by Albanian companies or 
nationals in a given sector or industry in Albania;  or iii) are newly emerging industries in Albania.  
However, the derogation allows the introduction of m easures during the first five years after the entry 
into force of the Agreement (i.e., until 31 March 2014)  and is to cease at the latest seven years after 
the entry into force of the Agreement (i.e., by 31 March 2016).  Upon the expiry of this period, such 
measures are possible only with authorisation of  the Stabilisation and Association Council with 
conditions determined by the Council.  Prior to th e adoption of the measures, consultation with and 
notification to the Stabilisation and Associati on Council is required with one month between 
notification and adoption of measures ex cept urgent situations (Article 56). 
78. The Parties shall endeavour to avoid the imposition of restrictive measures, including 
measures relating to imports, for balance of payments purposes.  Where one or more EU Member States is in serious balance of payments difficulti es or under imminent threat thereof, it may adopt 
restrictive measures in accordan ce with the conditions established under the WTO Agreement.  Such 
measures shall be of limited duration, may not go beyond what is strictly necessary, and shall not 
apply to transfers related to investment  and repatriation of funds (Article 67). 
5. Payments and capital movements 
79. Chapter IV of Title V of the Agreement deal s with current payments and movement of 
capital.  Any current account payments and transfer s between the Parties as well as the free movement 
of capital relating to direct investments in compan ies formed in accordance wi th the laws of the host 
country and investments in accordance with th e provisions of the Agreement's chapter on 
establishment are permitted.  The free movement of capital extends to the liquidation and repatriation 
of capital and profits;  to credit related to commerci al transactions or to the provision of services in 
which a resident of one of the Parties is participati ng;  and to financial loans and credits with maturity 
longer than a year.   
80. According to Article 61.4, the Parties may ta ke safeguard measures with regard to capital 
movement when payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation of monetary or exchange rate policy or monetary policy.  The 
period of the measure shall not exceed one year.   
81. During the first three years following the entry into force of the Agreement, i.e. until 
31 March 2012, the Parties shall take measures perm itting the creation of the necessary conditions for 
the further gradual application of EU rules on th e free movement of capital.  The Stabilization and 
Association Council is responsible for determining the modalities for th e full application of EU rules 
on the movement of capital (Article 62).  WT/REG226/3 
 Page 21 
 
 
  6. Approximation of laws 
82. The Parties recognize the importance of the a pproximation of Albania's existing legislation 
with that of the EU (Article 70).  Albania will gra dually make its existing laws and future legislations 
compatible with the EU acquis.  Approximation w as to begin on the date of signature of the 
Agreement and gradually extend to all elements of the EU acquis me ntioned in the Agreement by the 
end of the transition period as define d in Article 6 of the Agreement. 
IV. GENERAL PROVISIONS OF THE AGREEMENT 
A. EXCEPTIONS  
83. The provisions of Title V do not apply to limita tions justified on grounds of public policy, 
public security or public health;  exercise of offici al authority (Article 63).  Article 124 contains an 
exception for security of the Parties. 
84. Article 66 provides that MFN treatment does not apply to tax advantages provided by the 
Parties on the basis of agreements designed to av oid double taxation or other arrangements.  The 
Parties may also adopt or enforce any measure aimed at preventing the avoidance or evasion of taxes.  
The Parties may also apply the relevant provisions of their fiscal legislation.   
85. The Parties may take any measure necessary to  prevent the circumvention of its measures 
concerning third-country access to its market thr ough the provisions of the Agreement (Article 69). 
B. INSTITUTIONAL FRAMEWORK  
86. Title X deals with institutional, general and fi nal provisions.  In particular, Articles 116-120 
set out the functions of a Stabilisation and Association Council.20  The Council was established to 
inter alia , to supervise the application and implementati on of the Agreement;  and have the power to 
take decisions that are binding on the Parties with in the scope of the Agreement in the cases provided 
for therein.  It may: also make appropriate r ecommendations;  settle disputes raised by the Parties 
relating to the application or interpretation of the Agreement;  decide to set up other special 
committees or bodies that can assist it in carrying out its duties.  The Council is assisted in its duty by 
a Stabilisation and Association Committee which shall, inter alia , take due account of the importance 
of adequately handling 'migration-related issues' (Article 121).  Provisions are also made for a 
Stabilisation and Association Parliamentary Committee that functions as a forum for members of parliaments of the Parties.  The depository of th e Agreement is the Secretary-General of the Council 
of the European Union (Article 133). 
C. R
ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
87. Title III of the Agreement contains the provi sions on regional cooperation.  Albania shall 
review existing or future bilateral agreements with all relevant countr ies to ensure that the agreements 
are compatible with the princi ples in the Memorandum of Unders tanding on Trade Facilitation and 
Liberalization21 (Article 12).  One of the main elem ents when Albania concludes bilateral 
Conventions on regional coopera tion with other countries having signed a Stabilisation and 
Association Agreement is mutual concessions conc erning the movement of workers, establishment, 
                                                      
20 The Stabilisation and Association Council consis ts of the members of the EU Council and EU 
Commission, on the one hand, and of members of the Government of Albania, on the other. 
21 The Memorandum is signed in Brussels on 27 June 2001, by Albania, together with other countries 
of the region, committed itself to negotiate a network of bilateral Free Trade Agreements so as to enhance the 
region's ability to attract investments and prospects of its integration into the global economy. WT/REG226/3 
Page 22    
 
  supply of services, current payments and movement of capital as well as other polices related to 
movement of persons at an equiva lent level to that of the Agreem ent (Article 13).  In addition, 
Albania may conclude a Convention on regional c ooperation with any country candidate for accession 
to the EU in any of the fields of cooperation c overed by the Agreement.  The Convention should aim 
at gradual alignment of bilateral relations between Albania and that candidate country to the relevant 
part of the relations between the EU and its Member  States and that candidate country (Article 15.1).  
In particular, Albania is directed to start negotia tions with Turkey to liberalize the establishment and 
supply of services between the two at a level e quivalent to the Agreement in accordance with 
Article V of the GATS.  This negotiation aims at being concluded before the end of the transitional 
period referred to in Article 16.1 (A rticle 15.2).  According to the Parties, there are no negotiations 
between Albania and Turkey to date. 
Table IV.1  
European Communities and Albania:  Participation in other RT As (notified and non-notified in force), as of 1 July 2011  
Partner / Agreement Date of entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
EUROPEAN COMMUNITIES  
Montenegro 01.05.10 Services 2010 GATS Art. V 
Serbia 01.02.10 Goods 2010 GATT Art. XXIV 
Cameroon 01.10.09 Goods 2009 GATT Art. XXIV 
Côte d'Ivoire 01.01.09 Goods 2008 GATT Art. XXIV 
CARIFORUM States  01.11.08 Goods & Servi ces 2008 GATT Art. XXIV & GATS Art. V
Bosnia and Herzegovina 01.07.08 Goods 2008 GATT Art. XXIV 
Montenegro 01.01.08 Goods 2008 GATT Art. XXIV 
Albania 01.12.06 Goods 2007 GATT Art. XXIV 
Algeria  01.09.05 Goods 2006 GATT Art. XXIV 
Chile 01.03.05 Services 2005 GATS Art. V 
Croatia 01.02.05 Services 2009 GATS Art. V 
Egypt 01.06.04 Goods 2004 GATT Art. XXIV 
FYROM 01.04.04 Services 2009 GATS Art. V 
Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
Chile 01.02.03 Goods 2004 GATT Art. XXIV 
Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
San Marino 01.04.02 Goods 2010 GATT Art. XXIV 
Croatia 01.03.02 Goods 2002 GATT Art. XXIV 
FYROM 01.06.01 Goods 2001 GATT Art. XXIV 
Mexico 01.10.00 Services 2002 GATS Art. V 
Mexico 01.07.00 Goods 2000 GATT Art. XXIV 
Israel 01.06.00 Goods 2000 GATT Art. XXIV 
Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV 
Faeroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
Turkey 01.01.96 Goods 1995 GATT Art. XXIV 
European Economic Area 01.01.94 Services 1996 GATS Art. V 
Andorra 01.07.91 Goods 1998 GATT Art. XXIV 
Syria 01.07.77 Goods 1977 GATT Art. XXIV 
Table IV.1 (Cont'd) WT/REG226/3 
 Page 23 
 
 
  Partner / Agreement Date of entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Norway 01.07.73 Goods 1973 GATT Art. XXIV 
Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
Switzerland – Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
Overseas Countries and Territories 01.01.71 Goods 1970 GATT Art. XXIV 
Papua New Guinea 20.12.09  Goods Not notified*  
ALBANIA 
EFTA 01.11.10** Goods 2011 GATT Art. XXIV 
Turkey 01.05.08 Goods 2008 GATT Art. XXIV 
CEFTA 01.05.07 Goods 2007 GATT Art. XXIV 
European Communities 01.12.06 Goods 2007 GATT Art. XXIV 
Source: WTO Secretariat.  
 
EFTA: European Free Trade Association 
CEFTA: Central European Free Trade Agreemen t. Members are Albania, Bosnia and Her zegovina, Croatia, Former Yugoslav Republic of  
Macedonia (FYROM), Moldova, Montenegro, Serbia and the Un ited Nations Interim Administration in Kosovo (UNMIK). 
* The Parties are currently finishing the procedures  to submit the required notification to the WTO. 
** For Albania, Liechtenstein, and Switzerland. For Norway a nd Iceland, it will become effec tive after completion of their 
ratification procedures. 
 
D. COOPERATION  
88. Title VIII of the Agreement contains the provi sions on cooperation policies agreed between 
the Parties.  Cooperation policies cover a broad range of activities: including economic and trade 
policy;  statistics;  banking, insurance and other fi nancial services;  audit and financial control;   
investment promotion and protection;  industrial c ooperation;  small and medium-sized enterprises;   
tourism;  agriculture and the agro-industrial sector;  fisheries;  customs;  taxation, social and cultural 
cooperation.  Specific services sectors mentioned in  the Title on Cooperation include education and 
training, audio-visual, electronic communications  networks and services, transport, energy, 
environment, and research and technological development. 
89.  Title IX of the Agreement addressees Fina ncial Cooperation under which Albania may 
receive financial assistance from the EU in the fo rms of grants and loans, including loans from the 
European Investment Bank.  Aid granted to Alba nia is geared towards observed needs, agreed 
priorities, the capacity to absorb and repay, and the measures taken to reform and restructure the 
economy (Article 112).   
__________