WORLD TRADE  
ORGANIZATION   
WT/REG236/M/1 
7 July 2011 
 (11-3352) 
Committee on Regional Trade Agreements 
Sixty-first Session   
 
 
 
CONSIDERATION OF THE FREE TRADE AGREEMENT BETWEEN THE 
EUROPEAN UNION AND MONTENEGRO,  
GOODS AND 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 C.II of this session, th e CRTA considered the Free Trade Agreement 
(FTA) between the European Union (EU) and Monten egro (hereinafter the 'Agreement'), goods and 
services.  
3. The Chairman said that the Agreement had ente red into force on 1 January 2008 (goods part) 
and 1 May 2010 (services part).  It had been notifie d by the European Union on 16 January 2008 to 
the WTO under Article XXIV:7(a) of the GATT 1994 and the Understanding on the Interpretation of 
Article XXIV of GATT 1994 as an Agreement establishing a free trade area (document WT/REG236/N/1) and under GATS Arti cle V:7(a) on 18 June 2010 as an Agreement 
providing for the liberalization of trade in services within the meaning of Article V of the 
GATS (document S/C/N/557).  The text of the Agreem ent was available, together with its Annexes, 
on the Parties' official websites.  The Factual Presentation on the goods and services aspects (document WT/REG236/1 dated 15 April 2011) had b een prepared by the Secretariat on its own 
responsibility in full consultation with the Parti es, in accordance with paragraph 7(b) of the 
Transparency Mechanism (TM) for Regional Trade Agreements (document WT/L/671).  
Additionally, he informed Members that written questions and replies on the Agreement had been 
distributed in document WT/REG236/2, dated 22 June 2011.  He suggested to organize the 
consideration of the Agreement by first asking the Parties and then other Members for general 
comments.  The Committee would then turn to th e specifics of the Agreement using the Factual 
Presentation to guide the debate.  He proposed to go through the Factual Presentation section by 
section, and then through the questions and replies document. 
4. The representative of the European Union said he would present the Agreement on behalf of 
both the EU and Montenegro, and hoped that its consideration would serve  to better understand its 
main elements.  The Agreement (S tabilisation and Association Agre ement (SAA)), covered goods and 
services, and formed part of a broader policy that ai med at deepening trade relations with the Western 
Balkan countries.  The SAA was the prime instrume nt of the EU's overall policy towards the Western 
Balkan countries' stabilisation and association pr ocess and aimed to establish a close and lasting 
relationship based on reciprocity and mutual interest.  He pointed out that Montenegro was officially a 
candidate to EU membership since December 2010 and that the Agreement had therefore to be seen in 
the light of the wider, ambitious, overall policy of  the EU towards Montenegro.  The Agreement had WT/REG236/M/1 
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  been signed in Luxembourg in October 2007.  The goods aspects had entered into force on 
1 January 2008, and the services aspects on 1 May 2010.  As regards the goods aspects, the 
Agreement provided for a gradual liberalization pro cess over a maximum transitional period of five 
years from its entry into force and both Parties had made substantial commitments in all sectors.  As calculated by the WTO Secretariat, Montenegro would liberalize 95% of its tariff lines by 2013, 
representing 99% of EU imports during the three pr eceding years of the entry into force of the 
Agreement.  As of 2008, the EU had granted perman ent liberalization of 97.3% of tariff lines, which 
represented duty-free treatment to almost all imports from Montenegro.  The coverage of the Agreement was therefore very comprehensive, wh ereby only few items, concerning few agricultural 
and fishery products, would not be fully liberalized, and would be subject to preferential concessions.  
He added that the Parties had abolished all custom s duties and quantitative restrictions on exports and 
charges or measures having equivalent effect in trade upon entry into force of the Agreement. 
5. With regard to services, the Agreement provided for substantial sectoral coverage, since all 
sectors were included, with the only exception of air transport, inland waterways transport, and 
maritime cabotage services.  However, the Stabilisation and Association Council could make 
recommendations for improving establishments and ope rations in those areas.  Furthermore, the 
Agreement covered all modes of supply (cross-bor der, establishment and temporary movement of 
persons), with no a priori exclusions.  Additi onally, it established the elimination of existing 
discriminatory measures based on nationality (Artic le 49) and required Parties to grant national 
treatment for the establishment and operation of comp anies and nationals (Article 53) from its entry 
into force.  The Agreement also provided for the liberalisation of the supply of services between the 
Parties and the temporary movement of services suppliers (Article 58).  He pointed out that 
Montenegro had achieved good progress in im plementing the obligations deriving from the 
Agreement and towards the fulfilment of the criteri a for EU membership in the area of freedom of 
movement of workers as well as freedom of estab lishment.  He said that they were aware that a 
number of reforms and important legislative changes were still required but that they were still under 
the transitional period foreseen for the completion of the Agreement (which only had entered into 
force one year ago).  The EU would continue to accompany Montenegro in its efforts through 
technical and financial assistance.   
6. In addition, the Agreement included substan tial provisions concerning competition matters, 
intellectual property rights and cooperation in cust oms matters and government procurement, as well 
as legislative approximation, including standardisati on.  Overall, it was significantly contributing to 
growth and the enhancement of a strong trade and economic relationship with Montenegro.  The trade 
between the Parties had rebound strongly after the ec onomic crisis with an increase in the imports 
from Montenegro into the EU of 37% between 2009 and 2010.  The treads in 2011 were also so far positive.  
7. He recalled that other WTO Members would also be able to benefit from a closer trade 
relationship with Montenegro once it acceded to the WTO.  Montenegro was already at a very 
advanced stage of accession.  The EU had been a strong supporter of Montenegro's entry into the 
WTO, and was proud to have been the first WTO Member to conclude bilateral accession talks 
already in 2008.  In view of the remarkable pr ogress Montenegro had made while preparing for its 
WTO entry, he hoped that all Members would favou r its accession without unnecessary delays.  He 
added that the accession to the WTO would make a positive and lasting contribution to the process of 
economic reform and sustainable development in Monten egro.  Finally, on behalf of both Parties, he 
thanked Members for their interest and questions.  The Parties had provided Members with written 
replies to all questions received so far and would endeavour to clarify further issues if needed and 
answer any additional questions.  He looked forward to a fruitful discussion. 
  WT/REG236/M/1 
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  8. The representative of the United States expre ssed his appreciation to the Parties for the 
information that they have provided, in particular  to the replies to the qu estions they had posed.  
9. The Chairman said that the consideration of the goods and services aspects of the FTA 
between the European Union and Montenegro ha d allowed the Committee to clarify a number of 
questions and oral discussion of the Agreement coul d be concluded in accordance with paragraph 11 
of the Transparency Mechanism.  If any delegations  wished to ask follow-up  questions they were 
invited to forward submissions in wr iting to the Secretariat by 6 July 2011  and the Parties were asked 
to submit replies  in writing by no later than 20 July 2011.  In accordance with paragraph 13 of the 
Transparency Mechanism all written submissions , as well as minutes of the meeting would be 
circulated promptly, in all WTO official la nguages, and would be made available on the 
WTO website. 
10. The Committee took note of the comments made. 
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