WORLD TRADE  
ORGANIZATION  WT/REG187/1 
18 February 2005 
 
 (05-0684) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN MOLDOVA AND BOSNIA AND HERZEGOVINA 
  
  The following communication, dated 14 January 2 005, is being circulated at the request of the 
Delegation of Moldova. 
 
_______________ 
 
 
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF 
MOLDOVA AND THE GOVERNMENT OF BOSNIA AND HERZEGOVINA
* 
 
PREAMBLE  
   Bosnia and Herzegovina  and the Government of the Republic of Moldova  (hereinafter referred 
to as “the Parties”),  
  Reaffirming  their desire to actively participate in the process of economic integration in 
Europe;  
 Admitting  that Parties are willing to consolidate these relations and to establish strong and 
durable relationships of coopera tion and economic integration; 
  Reaffirming  their commitment to pluralist democracy based on observance of the rules, rights 
and basic human liberties of the state governed by the rule of law;  
 Firmly convinced  that this Agreement will promote intensification of commercial mutually 
advantageous exchange leading to creation of a wi de zone of free trade, and contributing to the 
process of European integration;   Resolved  for this purpose to progressively eliminate th e barriers in mutual trade in general, in 
conformity with the General Agreement on Tari ffs and Trade 1994 (GATT 1994) and the Agreement 
establishing the World Trade Organization (WTO),  Bosnia and Herzegovina having objective to 
become WTO member;   Considering  that no provision of this Agreement may be interpreted as exempting the Parties 
from their obligations under ot her international agreements, 
  Have agreed  as follows: 
  
                                                     
 
* The associated Annexes have been submitted to  the Secretariat for consultation by interested 
Members (office 1174). WT/REG187/1 
Page 2  
 
 Article 1 
 
Objectives
 
 1. The Parties shall gradually establish a free trade area on substantially all their bilateral trade 
in a transitional period ending on 31 December 2 005, in accordance with the provisions of this 
Agreement and in conformity with Article XXIV of the GATT 1994 and the WTO. 
2. The objectives of this Agreement are: 
(a) to promote, through the expansion of mutu al trade, of harmonious development of 
economic relations between the Parties,  improvement of living standards and 
conditions of work, raising productivity  and enhancing financial stability; 
(b) to provide fair conditions for carrying out  loyal competition for trade between the 
Parties; 
(c) to gradually eliminate difficulties and restri ctions on trade in goods, including also 
the agricultural products; 
(d) to create conditions for further encouragemen t of investments, particularly for the 
development of joint investments in both countries; 
(e) to contribute in this way, by the removal of barriers to trade, to the harmonious 
development and expansion of world trade. 
 
 
CHAPTER I: INDUSTRIAL PRODUCTS 
 
Article 2 
 
Scope
 
 
1. The provisions of this Chapter shall apply to industrial products originating in the Parties. 
2. The term “industrial products” means for the purpose of this Agreement the products falling 
within Chapters 25 to 97 of the Harmonized Co mmodity Description and Coding System with the 
exception of the products listed in Annex 1 to this Agreement. 
Article 3 
 
Basic Duties  
 1. For commercial exchanges covered by this Agre ement, the Customs Tariffs of the Parties 
shall be applied to the classificati on of goods for imports into them. 
2. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the MFN duty in force on the date of entry into force of this Agreement. 
3. If after the date of entry into force of this Agreement, any tariff reduction is applied on an 
erga omnes  basis, in particular, reductions resulting from the tariff agreement concluded as a result of  WT/REG187/1 
 Page 3 
 
 
 the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 
2 of this Article as from that date when such reductions are applied. 
4. The reduced duties, calculated in accordance w ith paragraph 3 of this Article, shall be 
rounded off to the first decimal place.  
5. The Parties shall mutually exchange their basic duties. 
Article 4 
 
Customs Duties On Import And Charges Having Equivalent Effect  
 1. From the date of entry into force of this  Agreement no new customs duties on imports or 
charges having equivalent effect shall be introduced , nor shall those already applied be increased in 
trade between the Parties. 
2. Customs duties on imports and charges having equivalent effect shall be progressively 
reduced in accordance with  the following timetable: 
 - From July 1, 2003   to 60% of the basic duty; 
 - From January 1, 2004   to 50% of the basic duty; 
 - From January 1, 2005   to 40% of the basic duty;  - From January 1, 2006   the remaining duties shall be abolished.  
Article 5 
 
Customs Duties On Export, Charges Having Equivalent Effect
 
And Other Export Duties Of A Fiscal Nature  
 1. No new customs duties on exports, charges havi ng equivalent effect to customs duties, and 
other export duties of a fiscal nature shall be intr oduced in trade between the Parties, as from the date 
of entry into force of this Agreement. 
2. The Parties shall abolish all customs duties on exports, charges having equivalent effect to 
custom duties, and other export duties of a fiscal na ture on the date of entry into force of this 
Agreement. 
Article 6 
 
Quantitative Restrictions On Imports And Ex ports And Measures Having Equivalent Effect
 
 1. No new quantitative restrictions on imports and exports or measures having equivalent effect 
shall be introduced in trade between the Parties as fro m the date of entry into force of this Agreement. 
2. All quantitative restrictions on imports and ex ports and measures having equivalent effect 
shall be abolished on the date of en try into force of this Agreement. WT/REG187/1 
Page 4  
 
 Article 7 
 
Elimination Of Technical Barriers To Trade
 
 1. The rights and obligations of the Parties relati ng to standards or technical regulations and 
related measures shall be governed in accordance w ith the WTO Agreement on Technical Barriers to 
Trade. 
2. The Parties shall co-operate and exchange in formation in the field of standardization, 
metrology, conformity assessment and accreditation with the aim of eliminating technical barriers to trade. 
3. Each Party, upon a request of the other Part y, shall provide information on particular 
individual cases of standards, technical norms or related measures. 
4. The Parties shall aim to reduce and/or eliminate technical barriers to trade. To this end the 
Parties will enter, where appropriate, into negotiatio ns for the conclusion of the Agreements for the 
mutual recognition in the field of conformity assessment, for the products subject to mutual trade 
between the Parties. 
 
CHAPTER II: AGRICULTURAL PRODUCTS 
 
Article 8 
 
Scope
 
 1. The provisions of this Chapter shall apply to ag ricultural products originating in the Parties. 
2. The term "agricultural products " means for the purpose of this Agreement the products falling 
within Chapters 1 to 24 of the Harmonized Co mmodity Description and Coding System and the 
products listed in Annex 1 to this Agreement. 
Article 9 
 
Basic Duties
 
 1. For commercial exchanges covered by this Agre ement, the Customs Tariffs of the Parties 
shall be applied to the classificati on of goods for imports into them. 
2. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the MFN duty in force on the date of entry into force of this Agreement. 
3. If after the date of entry into force of this Agreement, any tariff reduction is applied on an 
erga omnes  basis, in particular, reductions resulting from the tariff agreement concluded as a result of 
the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 
2 of this Article as from that date when such reductions are applied. 
4. The reduced duties, calculated in accordance w ith paragraph 3 of this Article, shall be 
rounded off to the first decimal place.  
5. The Parties shall mutually exchange their basic duties.  WT/REG187/1 
 Page 5 
 
 
 Article 10 
 
Customs Duties On Import And Charges Having Equivalent Effect  
 1. From the date of entry into force of this  Agreement no new customs duties on imports or 
charges having equivalent effect shall be introduced , nor shall those already applied be increased in 
trade between the Parties. 
2. Customs duties on imports and charges having equivalent effect shall be progressively 
reduced in accordance with  the following timetable: 
 - From July 1, 2003   to 60% of the basic duty; 
 - From January 1, 2004   to 50% of the basic duty; 
 - From January 1, 2005   to 40% of the basic duty;  - From January 1, 2006   the remaining duties shall be abolished.  
Article 11 
 
Customs Duties On Export, Charges Having Equivalent Effect 
 
And Other Export Duties Of A Fiscal Nature  
 1. No new customs duties on exports, charges havi ng equivalent effect to customs duties, and 
other export duties of a fiscal nature shall be intr oduced in trade between the Parties, as from the date 
of entry into force of this Agreement. 
2. The Parties shall abolish all customs duties on exports, charges having equivalent effect to 
custom duties, and other export duties of a fiscal na ture on the date of entry into force of this 
Agreement. 
Article 12 
 
Quantitative Restrictions On Imports And Ex ports And Measures Having Equivalent Effect
 
 1. No new quantitative restrictions on imports and exports or measures having equivalent effect 
shall be introduced in trade between the Parties as fro m the date of entry into force of this Agreement. 
2. All quantitative restrictions on imports and ex ports and measures having equivalent effect 
shall be abolished on the date of en try into force of this Agreement. 
Article 13 
 
Agricultural Policy
 
 
1. Without prejudice to the provisions under Article 9 of this Agreement, the provisions of the 
Chapter II of this Agreement shall not restrict in  any way the pursuance of the respective agricultural 
policies of the Parties or the taking of any measu res under such policies, including the implementation 
of the provisions of the WTO Agreement on Agriculture. 
2. The Parties shall notify to the Joint Committe e changes in their respective agricultural 
policies pursued or measures which may affect th e conditions of trade in agricultural products 
between them. On the request of either Party, prom pt consultations shall be held within the Joint 
Committee, to examine the situation. WT/REG187/1 
Page 6  
 
 Article 14 
 
Specific Safeguards
 
  Notwithstanding other provisions of this Agre ement, in particular Article 29 of this 
Agreement, given the particular sensitivity of th e agricultural products, if imports of products 
originating in one Party, which are subject of  concessions, granted under this Agreement, cause 
serious disturbances to the market of the other Party, the Party concerned shall enter into prompt consultations to find an appropria te solution. Pending such solution, the Party concerned may take 
appropriate measures it deems necessary.  
 
Article 15 
 
Sanitary And Phytosanitary Measures
 
 
1. The Parties shall apply their national regulati ons in veterinary, phytosanitary and sanitary 
matters, in particular in the exchange of info rmation on infectious diseases of domestic animals, 
quarantine diseases, plant pests and weed, in a way that complies to the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measures. 
2. The Parties shall apply their regulations in vete rinary, phytosanitary and sanitary matters in a 
non-discriminatory way and shall not introduce new measures that may have the effect of unduly 
obstructing trade. 
3. The Parties undertake the obligations to exchange  information on the level of the sanitary and 
phytosanitary protection of animals, plants and products.  
Article 16 
 
Elimination Of Technical Barriers To Trade  
 1. The rights and obligations of the Parties relati ng to standards or technical regulations and 
related measures shall be governed in accordance w ith the WTO Agreement on Technical Barriers to 
Trade. 
2. The Parties shall co-operate and exchange in formation in the field of standardization, 
metrology, conformity assessment and accreditation with the aim of eliminating technical barriers to 
trade. 
3. Each Party, upon a request of the other Part y, shall provide information on particular 
individual cases of standards, technical norms or related measures. 
4. The Parties shall aim to reduce and/or eliminate technical barriers to trade. To this end the 
Parties will enter, where appropriate, into negotiatio ns for the conclusion of the Agreements for the 
mutual recognition in the field of conformity assessment, for the products subject to mutual trade between the Parties. 
  WT/REG187/1 
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 CHAPTER III: GENERAL PROVISIONS 
 
Article 17 
 
Internal Taxation  
 
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, 
whether directly or indirectly, discrimination be tween the products originating in the Parties. 
2. Products exported to the territory of one of the Parties may not benefit from repayment of 
internal taxation in excess of the amount of direct or indirect taxation imposed on them. 
Article 18 
 
Rules Of Origin And Co-Operation In Customs Administration  
 1. The Parties agree to apply the harmonized European  preferential rules of origin in the mutual 
trade including all existing and further amendments th ereto. In case the European rules of origin are 
amended, the Joint Committee shall make  a decision on amending rules of origin. 
2. Protocol A to this Agreement (hereinafter refe rred to as “Protocol A”) la ys down the rules of 
origin and related methods of administrative co-operation. 
3. The Parties shall take appropriate measures, in cluding regular reviews by the Joint Committee 
and arrangements for administrative co-operation, to  ensure that the provisions of Protocol A and 
Articles 3 to 7, 9 to 13, 17, 29, 30 and 31 of this  Agreement are effectively and harmoniously applied, 
and to reduce, as far as possible, the formaliti es imposed on trade, and to achieve mutually 
satisfactory solutions to any difficulties arising from the operation of those provisions. 
4. The Parties shall conclude separate Agreem ent for co-operation between their Customs 
Administration, as soon as possible.  
Article 19 
 
General Exceptions
 
 1. The provisions of this Agreement shall not preven t from applying prohibitions or restrictions 
on import, export, or goods in transit justified on grounds of public morality, public policy or public 
security; the protection health and human life, animals or plants as well as environment protection; 
protection of national treasures possessing artistic, histor ical or archaeological value; the protection of 
intellectual property; regulations relating to gold or silver, or the conservation of exhaustible natural 
resources, if such measures are effectively appl ied in relation with do mestic consumption or 
production restrictions. 
2. Such prohibitions or restrictions shall not , however, constitute a means of arbitrary 
discrimination or disguised restriction on trade between the Parties. 
Article 20 
 
Security Exceptions
 
 
 Nothing in this Agreement shall prevent a Party from taking any appropriate measures which 
it considers necessary: WT/REG187/1 
Page 8  
 
  
(a) to prevent the disclosure of information c ontrary to its essential security interests; 
(b) for the protection of its essential security interests or for the implementation of 
international obligations  or national policies: 
(i) relating to the traffic in arms, ammun ition and implements of war, provided 
that such measures do not impair the c onditions of competition in respect of 
products not intended for specifically military purposes, and to such traffic in other goods, materials and services as is carried on directly or indirectly for 
the purpose of supplying a military establishment; or 
(ii) relating to the non-proliferation of biological and chemical weapons, nuclear 
weapons or other nuclear explosive devices; or 
(iii) in time of war or other serious interna tional tension constituting the threat of 
war. 
Article 21 
 
State Monopoly
 
 1. The Parties shall adjust progressively any State monopoly of a commercial character so as to 
ensure that by the end of the transitional period  laid down in Article 1 of this Agreement, no 
discrimination regarding the cond itions under which goods are procured  and marketed, exists between 
natural and legal persons of the Parties. The Pa rties shall inform each other about the measures 
adopted to implement this objective. 
2. The provisions of this Article shall apply to any body through which the competent 
authorities of the Parties, in law or in fact, either  directly or indirectly supervise, determine or 
appreciably influence imports or exports between th e Parties. These provisions shall likewise apply to 
monopolies delegated by the State to other bodies. 
Article 22 
 
Payments
 
 1. Payments in freely convertible currencies relati ng to trade in goods between the Parties and 
the transfer of such payments to the territory of the Party where th e creditor resides shall be free from 
any restrictions. 
2. The Parties shall refrain from any exchange or administrative restrictions on the grant, 
repayment or acceptance of short a nd medium term credits to trade in goods in which person residing 
in one of the Parties participates.  
3. Notwithstanding the provisions of paragraph 2 of this Article, all measures concerning current 
payments connected with the movement of goods sha ll be in conformity with the conditions stipulated 
in Article VIII of the Articles of Agreement of In ternational Monetary Fund and shall be applied on a 
non-discriminatory basis.  WT/REG187/1 
 Page 9 
 
 
 Article 23 
 
Rules Of Competition Between Undertakings  
 1. The following are incompatible with the proper functioning of this Agreement insofar as they 
can affect trade between the Parties: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings whic h have as their objective or effect the 
prevention, restriction or distortion of competition; 
(b) abuse by one or more undertakings of a dominant position in the territories of the 
Parties, as a whole or in substantial part thereof.  
2. If one Party considers that a certain practice is incompatible with the provisions of paragraph 
1 of this Article, and if such a practice causes or th reatens to cause serious prejudice to the interests of 
that Party or material injury to its domestic industry, it may take appropriate measures, upon 
consultations within the Joint Committee or after 30  days after a request for such consultations is 
made, under the conditions and in accordance with th e procedure laid down in Article 26 of this 
Agreement. 
Article 24 
 
State Aid
 
 
1. Any aid granted by one Party or through State resources in any form whatsoever, distorting or 
threatening to distort competition by favoring certain  undertakings or the production of certain goods 
shall be incompatible with the proper functioning of this Agreement, insofar as it may affect trade 
between the Parties.  
2. The Joint Committee, within two years since th e date of the entry into force of this 
Agreement, shall set out the basic cr iteria to verify any practices cont rary to this Article, as well as 
rules for their implementation.  
3. The Parties shall ensure transp arency of state aid measures, inter alia  also through annual 
reporting to the Joint Committee on the total amount  of the state aid and its distribution and will 
provide, on the other Party’s request, information on the schemes in specific cases. 
4. If one Party considers that a given practice is in compatible with the provisions of this Article, 
it may take appropriate measures against this practice, which shall not be in excess of the injury 
caused, under the conditions and in accordance with th e procedures laid down in Article 26 of this 
Agreement. Such measures may be taken only in  accordance with the procedures and conditions set 
up by the GATT 1994 and WTO and any other negotiat ed instrument applicable between Parties. 
Article 25 
 
Public Procurement  
 1. The Parties consider the liberalization of th eir respective public procurement markets as an 
objective of this Agreement. WT/REG187/1 
Page 10  
 
 2. The Parties shall progressively develop regulati ons on public procurement for the purpose of 
ensuring mutual access to bidding based contracting on their public procurement markets, at the latest 
to the end of transitional period from Article 1 of this Agreement. 
3. The Joint Committee will examine the evolution of  regulations in this area, aiming to meet 
the objectives of this Article, and shall recomme nd concrete ways to implement its provisions. 
4. During the time of examination indicted in pa ragraph 3 of this Article, the Joint Committee 
may take into consideration, in particular, w ithin the framework of international relations 
development, the possibility of extending the c overage or/and degree of openness of the market 
mentioned in paragraph 2 of this Article. 
Article 26 
 
Procedure For The Application Of Safeguard Measures
 
 1. Before initiating the procedure for the appli cation of safeguard measures set out in the 
following paragraphs of this Article, the Parties sha ll endeavor to solve any differences between them 
through direct consultations. 
2. Without prejudice to paragraph 6 of this Artic le, each Party, which considers resorting to 
safeguard measures, shall promptly notify the ot her Party in writing and shall supply all relevant 
information. Consultations between the Parties shall take place without delay with a view to finding a 
solution. 
3. (a) As regards Articles 23 and 24, the Parti es shall give the Joint Committee all required 
assistance required in order to examine the ca se. If the Party fails to stop the practice 
objected to, within the period fixed by the Joint Committee, or if the Joint Committee 
fails to reach an agreement after consultati ons, or after 30 days following the referral 
for such consultations, the Party concerne d may adopt the appropriate measures to 
deal with the difficulties resulting from the disputed practice. 
(b) As regards Articles 28, 29 and 31, the Jo int Committee shall ex amine the case or 
situation and may take any decision needed to put an end to the difficulties notified by the Party concerned. In absence of su ch a decision during 30 days of the matter 
being referred to the Joint Committee, th e Party concerned may adopt the necessary 
measures in order to remedy the situation. 
(c) As regards Article 33 the Party concerned shall supply to the Joint Committee with 
all relevant information required for a thor ough examination of the situation with a 
view to seeking a mutually acceptable solu tion. If the Joint Committee fails to reach 
an agreement or if a period of three mont hs has elapsed from the date of notification 
to the Joint Committee, the Party con cerned may take appropriate measures. 
 
4. The safeguard measures taken shall be immediatel y notified to the other Party. They will be 
restricted with regard to their ex tent and to their duration to what  is strictly necessary in order to 
rectify the situation-giving rise to their applicati on and shall not be in excess of the injury caused by 
the practice or the difficulty in qu estion. Priority shall be given to  such measures as will least disturb 
the functioning of the Agreement. 
5. The safeguard measures taken shall be the subject  of regular consultations within the Joint 
Committee with a view of their re-applying, substitution or abolition as soon as possible.   WT/REG187/1 
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 6. When exceptional circumstances requiring immediate action make prior examination 
impossible, the Party concerned may, in the case s of Articles 28, 29 and 31, apply forthwith the 
precautionary and provisional measures strictly nec essary to remedy the respective situation. The 
measures shall be notified without delay and consultations between th e Parties shall take place as soon 
as possible within th e Joint Committee. 
Article 27 
 
Intellectual Property Protection  
 1. The Parties shall grant and ensure adequate, effective and non-discriminatory protection of 
intellectual property rights, including measures  for the enforcement of such rights against 
infringement, counterfe iting and piracy.  
2. For the purposes of this Agreement, the protection of intellectual property rights includes 
mainly the protection of copyright, computer progr ams, databases and related rights, trademarks, 
geographic indications, industrial pr ojects, patents, integrated circuits and drawings, as well as 
unpublished know-how information. 
3. The Parties shall co-operate in intellectual pr operty rights protection matters and, at the 
request of any Party, consultations on expert leve l regarding these problems shall be held, mainly in 
areas dealing with the existing and future interna tional treaties on harmonization, administration and 
enforcement of intellectual property rights and inte rnational specialized organizations such as the 
WTO and World Organization on Intellectual Property,  as well as the relationships of the Parties with 
any other third country on the of intellectual property matter. 
Article 28 
 
Dumping
 
 
 If one of the Parties finds that dumping, in th e meaning of Article VI of GATT 1994, is taking 
place in the trade relations governed by this Agr eement, the concerned Party may take appropriate 
measures against this practice under the conditions a nd in accordance with the procedure laid down in 
Article 26 of this Agreement, as well as in c onformity with Article VI of GATT 1994 and WTO 
Agreement on Implementation of Article VI of the GATT 1994.  
Article 29 
 
General Safeguards
 
  Where any product is being imported in such  increased quantities and under conditions as to 
cause, or threaten to cause: 
 
(a) serious injuries to domestic producers of like or directly competitive products in the 
territory of the importing Party, or 
(b) serious disturbances in any related sector of the economy or difficulties which could 
bring serious deterioration in the economic situation of a certain region, 
the Party concerned may take appropriate measur es under the conditions and in accordance with the 
procedures laid down in Artic le 26 of this Agreement. 
 WT/REG187/1 
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 Article 30 
 
Structural Adjustment
 
 1. Exceptional measures of limited duration, which de rogate from the provisions of Article 4 of 
this Agreement, may be taken by either Part y in the form of increased customs duties. 
2. These measures may only concern infant i ndustries, or certain sectors undergoing 
restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 
3. Import customs duties applied by one of the Parties for goods originating in other Party 
introduced in accordance with paragraph 1 an d 2 of this Article shall not exceed 25% ad valorem  and 
shall contain a preference element in terms of the ra te of customs duty for goods originating in other 
Party. The total value of imported goods subject to such measures cannot exceed 15% of the total 
amount of imports of industrial goods from the other Pa rty during the last year for which statistic data 
is available. 
4. These measures shall apply for a period that will not exceed three years, otherwise the 
authorization of the Joint Committee is needed. They will seize to be applied, at latest, by the end of 
the transition period. 
5. No measure can be applied to goods if more than two years passed since the removal of all 
customs duties and quantitative restrictions or me asures having equivalent effect for such goods. 
6. The interested Party shall inform the other Part y of any exceptional measure it intends to take 
and, at the request of the other Party, consultations  shall be held within th e Joint Committee regarding 
such measures and sectors to which they apply, even be fore they are put into force. When taking such 
measures, the Party concerned shall provide the Joint Committee a schedule for the elimination of 
customs duties introduced under this Article. 
Article 31 
 
Re-Export And Serious Shortage
 
  Where the compliance with the provis ions of this Agreement leads to: 
 
(a) re-export towards a third country, against wh ich the exporting Party maintains for that 
product quantitative export restrictions, export duties, or measures or charges having 
equivalent effect; or 
(b) a serious shortage, or a threat thereof, of a product essential to the exporting Party,  
and where the situation referred to above gives rise or  is likely to give rise to major difficulties for the 
exporting Party, that Party may take appropriate  measures under the conditions and in accordance 
with the procedure laid down in Article 26 of  this Agreement. The measures shall be non-
discriminatory and be eliminated when c onditions no longer their maintenance.  
  WT/REG187/1 
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 Article 32 
 
Balance-Of-Payments Difficulties  
 1. Where a Party is in serious balance-of-pay ments difficulties, or under imminent threat 
thereof, the Party concerned may adopt, in accord ance with the conditions established by GATT 1994 
and the provisions of this Agreement, trade restri ctive measures, which shall be of limited duration 
and may not go beyond what is necessary to remedy the balance-of-payments situation. The measures 
shall be progressively attenuated, as the balance-of -payments conditions improve, and they shall be 
eliminated when conditions no longer justify their ma intenance. The Party in concerned shall inform 
the other Party and the Joint Committee forthwith th eir introduction and, whenever practicable, of a 
time schedule for their removal.  
2. The Parties shall endeavor to avoid the impos ition of restrictive measures based on balance-
of-payments difficulties. 
Article 33 
 
Fulfillment Of Obligations
 
 1. The Parties shall take all necessary measures to ensure the fulfillment of their obligations 
under the provisions of this Agreement. 
2. If either Party considers that the other Part y has failed to fulfill an obligation under this 
Agreement, the Party concerned may take the appropriate measures under the conditions and in 
accordance with the procedure laid down in Article 26 of this Agreement.  
Article 34 
 
The Joint Committee
 
 
1. The Parties agree to establish a Joint Co mmittee composed of their representatives. 
2. The implementation of this Agreement shall be  supervised and administrated by the Joint 
Committee. 
3. For the purpose of the proper implementation of this Agreement, the Parties shall exchange 
information and, at the request of any Party, shal l hold consultations within the Joint Committee. The 
Joint Committee shall keep under review the possibilit y of further removal of the obstacles to trade 
between the Parties.  
4. The Joint Committee may take deci sions in the cases provide for in this Agreement. On other 
matters the Joint Committee may take recommendations. 
Article 35 
 
Procedures Of The Joint Committee  
 1. For the proper implementation of this Agreemen t, the Joint Committee shall meet whenever 
necessary but at least once a year. Either Party may request a meeting to be held. 
2. The Joint Committee shall take decisi ons and recommendations by consensus. WT/REG187/1 
Page 14  
 
 3. If the representative of either Party in the Jo int Committee has accepted, under reservation, a 
decision subject to the fulfillment of internal legal re quirements, that decision shall enter into force, if 
no later date is contained therein, on the date of the receipt of a written notification as to the 
fulfillment of such requirements. 
4. For the purpose of this Agreement, the Joint Committee shall adopt its rules of procedure. 
5. The Joint Committee may decide to set up su ch sub-committees and working groups as it 
considers necessary to assist it in accomplishing its tasks. 
Article 36 
 
Trade Relations Governed By Other Agreements
 
 
1. This Agreement shall not prevent the mainte nance or establishment of customs unions, free-
trade areas, economic unions or arrangements fo r frontier trade to the extent that these do not 
negatively affect the trade regime between the Par ties and in particular the provisions concerning 
rules of origin provided for by this Agreement.  
2. Upon request, the Parties shall inform each ot her of any agreement establishing customs 
unions or free trade areas concluded with other countries. 
Article 37 
 
Evolutionary Clause  
 
1. Where either Party considers that it would be u seful in the interest of the economies of the 
Parties to develop the relations established by this Agreement by extending them to fields not covered 
thereby, it shall submit a reasoned request to the other Party. The Parties may instruct the Joint 
Committee to examine this request and, where appropriate, to make recommendations to them, 
particularly with a view to opening negotiations. 
2. Agreements resulting from the pro cedure referred to in paragraph 1 of this Article will be 
subject to ratification of approval by the Parties to  this Agreement in accord ance with their internal 
legal procedures. 
Article 38 
 
Annexes And Protocols  
 
 Annexes and Protocols of this Agreement sha ll form an integral part thereof. The Joint 
Committee may decide to amend Annexes and Protocols.   
Article 39 
 
Amendments
 
  Amendments to this Agreement, including Anne xes and Protocol, may be proposed by either 
Party and shall enter into force on the date of r eceipt of the last notification, through diplomatic 
channels, confirming that all internal legal proced ures required by either Party for their entry into 
force have been fulfilled. 
  WT/REG187/1 
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 Article 40 
 
Entry Into Force, Validity And Denouncement  
  This Agreement is concluded for an indefinite period of time.  
 
 It shall enter into force on the first day of the month following the date when the Parties have 
notified each other through diplomat ic channels that their respective internal requirements for the 
entry into force of this Agreement have been fulfilled.  
 Each Party may denounce it through diplomatic ch annels by a written notification to the other 
Party. In such case the Agreement shall be terminat ed on the first day of the seventh month after the 
date on which the other Party received the notification.   The Parties agreed, that in case of accession of one of the Parties to the EU, the Agreement 
will be terminated without any compensations for th e other Party, on the day before the date of the 
accession to the EU. In that case, the Party acceding to  the EU shall inform the other Party of such 
accession within a reasonable period of time.   After this Agreement becomes ineffective, its provisions will continue to apply to contracts 
between enterprises and organizations of both Part ies that were signed but not fulfilled during the 
period of effectiveness of this Agreement. 
  DONE in Chisinau, on 23 of December 2002 in two original copies, each in the official 
languages of Bosnia and Herzegovina: Bosnian/Croa tian/Serbian, Moldovian and English languages, 
each being equally authentic. In case of different inte rpretation of provisions of this Agreement, the 
text of reference shall be English text. 
  FOR THE GOVERNMENT OF THE FOR BOSNIA AND HERZEGOVINA REPUBLIC OF MOLDOVA   
 
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