WORLD TRADE  
ORGANIZATION   
WT/REG236/3 
27 July 2011  
 
(11-3808) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN THE EUROPEAN UNION  
AND MONTENEGRO (GOODS AND SERVICES) 
 
Questions and Replies 
 
 
 The following communication, dated 26 July 2011, is being circulated at the request of the delegations of the European Union and Montenegro.   This document reproduces the follow-up questi ons addressed to the Parties following the 
61st Session of the CRTA and the responses submitted. 
 
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Questions from the Delegation of Japan 
1. With regard to paragraph 86, page 33 of Ch apter IV provisions on  Trade in Services, 
C. General provisions on trade in services, Japan recognizes that the implication of paragraph 86 is not clear.  Specifically, how can MFN treatment and National Treatment be 
ensured for establishment without a corresp onding provision in the Agreement.  
 According to GATS Article XVII, in the sectors inscribed in its Schedule, and subject to any 
conditions and qualifications set out therein,  each Member shall accord to services and service 
suppliers of any other Member, in respect of all measures affecting the suppl y of services, treatment 
no less favourable than that it accords to its own like services and service suppliers.
  A Member may 
meet this requirement by according to services a nd service suppliers of any other Member, either 
formally identical treatment or formally different  treatment to that it accords to its own like services 
and service suppliers. 
 
 The SAA does not include specific schedules of  commitments.  However, national treatment 
is committed in a different way.  Firstly, Chapter I eliminates discrimination for workers.  Secondly, 
Chapter II provides for an unqualified national tr eatment obligation for establishment (mode 3). 
Article 59 also provides for access and national treatment for mode 4 (ICT).  Finally, as indicated 
above, the Agreement provides for a progressive openi ng of cross border services trade in line with 
the progress made towards the approximation of laws to those of the EU, hence providing for the elimination of any discrimination.  
2. With regard to paragraph 102, page 36, of Chapter IV provisions on Trade in Services, 
D. Liberalization commitments, how many services sectors have b een committed by the EU in 
this Agreement?  According to paragraph 102, the EU did not commit postal and audiovisual services and space transport services.  Could the EU explain the consistency of its commitments 
under Article 5 of the GATS? 
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   With regard to the requirements of GA TS Article V (1), the SAA agreement has: 
  - Substantial sectoral coverage, since all sectors are included, with the exception of air 
 transport services, inland waterways transport services and maritime cabotage  services.  However, these sectors can be added upon a recommendation of the 
 Stabilisation and Association Council; 
  -  covers all modes of supply (the re is no a priori exclusion) and; 
  - provides for the absence or elimination of substantially all discrimination.  
 
3. With regard to paragraph 133, page 41, of Chapter IV provisions on Trade in Services, 
E. Regulatory provisions on trade in services, as  for Approximation of Montenegro's existing 
legislation, to what extent does the EU require Mo ntenegro to make its existing and future laws 
compatible with the EU acquis?  Has each  EU Member country already accomplished the 
approximation of its Laws to the EU aquis? 
 The approximation of law is a unique obligation of membership in the European Union.  It 
means that countries aspiring to join the European  Union must align their national laws, rules and 
procedures in order to give effect to th e entire body of EU law contained in the 
acquis communautaire.   
 The progress of the SAA country or candidate c ountry in adapting its national legislation to 
the EU's acquis communautaire is monitored and ch ecked by the EU in cooperation with Montenegro 
on a regular basis.  It is discussed in the various fora created by the SAA (subcommittees, association 
committee and association council).  The European  Commission assesses the progress made in annual 
progress reports, which are detailed by  EU accession negotiating chapter. 
 
 In case of the EU Member States, each one is responsible for the implementation of new 
EU law (adoption of implementing measures before  a specified deadline, conformity and correct 
application) within its own legal system.  U nder the EU Treaty, the European Commission is 
responsible for ensuring that EU law is correctly a pplied.  Consequently, where a Member State fails 
to comply with EU law, the European Commissi on has powers of its own to try to bring the 
infringement to an end and, where necessary, may re fer the case to the European Court of Justice.  
 
4. With regard to paragraph 132, page 41 of Chapter  IV. Provisions on Trade in Services, 
E. Regulatory provisions on trade in services, 2.  Recognition, what are the steps expected for 
mutual recognition of qualifications?  Please indicate what kinds of qualifications are under 
consideration, if any. 
 The system of the mutual recognition of qualification in the EU is based on the 
Directive 2005/36/EC on the recognition of professiona l qualifications that came into force in 2007. 
  This Directive establishes rules according to which a Member State which makes access to or 
pursuit of a regulated profession in its territory  contingent upon possession of specific professional 
qualifications shall recognise professional qualifications  obtained in one or more other Member States 
and which allow the holder of the said qualifications to pursue the same profession there, for access to and pursuit of that profession.   According to the Directive, 'regulated pr ofession' is a professional activity or group of 
professional activities, access to which, the pursuit of which, or one of the modes of pursuit of which 
is subject, directly or indirectly, by virtue of legi slative, regulatory or administrative provisions to the 
possession of specific professional qualifications; in pa rticular, the use of a professional title limited  WT/REG236/3 
 Page 3 
 
 
  by legislative, regulatory or administrative provi sions to holders of a gi ven professional qualification 
shall constitute a mode of pursuit.    At the same time 'professional qualifications' are understood as qualifications attested by:  
 - evidence of formal qualifications (diplo mas, certificates and other evidence issued by 
 an authority in a Member State designat ed pursuant to legislative, regulatory or 
 administrative provisions of that Member State and certifying successful completion  of professional training obtained mainly in the Community);  
 
 - an attestation of competence issued by  a competent authority in the home Member 
 State designated pursuant to legislative, regulatory or administrative provisions of 
 that Member State, on the basis either a training course not forming part of a  certificate or diploma of or a specific examination without prior training, or full-time  pursuit of the profession in a Member Stat e for three consecutive years or for an 
 equivalent duration on a part-time basis during the previous ten years,
 and/or;  
  - professional experience.   The EU approach of mutual recognition of prof essional qualifications is demand-driven.  This 
means that it is based on the interest expressed by the professions.  Schematically, the EU approach is 
based on a two-step process.  In a first step, th e competent authorities check if there is a clear 
economic interest from suppliers a nd users of professional services.  This may entail contacts between 
the professional bodies of the two parties.  As a second step, if the professions express an interest on an agreement on mutual recognition, the Pa rties review the situation and the possible 
recommendations from the professions and can take  a decision on the launching of negotiations. 
 
 The EU has also its database of the regulat ed professions that can be checked under the 
following link:  http://ec.europa.eu/internal_mar ket/qualifications/index_en.htm . 
 
 The full text of the directive can be found under the following link:   
http://eur-lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CONSLEG:2005L0036:20090427:EN:PDF . 
 
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