WORLD TRADE  
ORGANIZATION  WT/REG142/5  
15 April 2011 
 (11-1930) 
Committee on Regional Trade Agreements  
 
 
 
 
  
 
 
FACTUAL PRESENTATION 
 
Economic Integration Agreement 
between the  
European Union and Croatia 
(Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Stabilization and Association 
Agreement between the European Union and Croatia has been drawn up by the 
WTO Secretariat on its own responsibility and in full consultation with the Parties.  
The report has been drawn up in accordance with the rules and procedures contained 
in the Decision for a Transparency M echanism for Regional Trade Agreements 
(WT/L/671).  
 Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel: +41 22 739 5422).  WT/REG142/5 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
II. CHARACTERISTIC ELEMENTS  OF THE AGREEMENT 8  
A. BACKGROUND INFORMATION  8  
III. PROVISIONS ON TRADE IN SERVICES 9  
A. SCOPE AND DEFINITIONS  9  
B. DENIAL OF BENEFITS  11  
C. GENERAL PROVISIONS  11  
1. Market access 11  
2. National and MFN treatment 11  
3. Cross-Border Trade in Services 11  
4. Establishment 12  
5. Movement of natural persons 12  
D. LIBERALIZATION COMMITMENTS  14  
1. General Overview 15  
(a) The European Union 15  
(b) Croatia 15  
2. Sector-Specific Commitments 16  
(a) Business Services 16  
(b) Communication Services 17  
(c) Construction and Distribution Services 17  
(d) Educational Services 18  
(e) Environmental Services 18  
(f) Financial Services 19  
(g) Health Related and Social Services 19  
(h) Tourism and Travel Services and Recreational, Cultural and 
Sporting Services 20  
(i) Transport Services 20  
(j) Other Services 22  
E. REGULATORY PROVISIONS  22  
1. Domestic regulation 22  
2. Recognition 22  
3. Approximation of Laws 23  WT/REG142/5 
Page iv 
 
 
  4. Subsidies and State Aid 23  
5. The Agreement has no specific provi sions on subsidies in trade in 
services. 23  
6. Safeguards 23  
7. Payments and capital movements 23  
8. Competition 24  
9. Government Procurement 24  
10. Intellectual Property 25  
IV. GENERAL PROVISIONS OF THE AGREEMENT 25  
A. EXCEPTIONS  25  
B. ACCESSION  25  
C. COOPERATION POLICIES  25  
D. INSTITUTIONAL FRAMEWORK  26  
E. DISPUTE SETTLEMENT  26  
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  26  
ANNEX 29 
 
  WT/REG142/5 
 Page 1 
 
 
  Key Facts 
 
Parties to the Agreement:  
The European Union (Austria; Belgiu m; Bulgaria; Cyprus; Czech Republic; 
Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; 
Latvia; Lithuania; Luxembourg; Malta; Netherlands; Poland; Portugal; Romania; 
Slovak Republic; Slovenia; Spain; Sweden; United Kingdom), and Croatia. 
 Date of Signature:   29 October 2001 
Date of Entry into Force: 1 February 2005 
Date of Notification:  12 October 2009 
 
 
I. TRADE ENVIRONMENT 
1. The Stabilization and Association Agreement (her einafter referred to as "the Agreement") 
between the 27 Member States of the European Union (hereinafter "EU") and Croatia contains 
provisions on both goods and services.  This Factua l Presentation deals with the services aspects and 
those parts of the Agreement which are applicable  to both goods and services.  The Agreement is 
Croatia's first RTA with a services component notifie d to the WTO.  The EU has notified seven other 
RTAs which contain provisions on trade in services. 
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 Croatia ranked 26th and 47th in terms of 
global exports and imports, accounti ng for 0.4% and 0.1% of global  exports and imports.  Economic 
indicators of the Parties are shown in Table I.1. 
Table I.1  Selected indicators, 2008 
GDP (2008) Country / entity Area ('000 km2) Population 2008 (million) 
Total (€ billion)a Per capita 
EC (27)                    4,187                                     496.8           12,462      25,086 
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 
Cyprusb                           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 
Germany                       349                                       82.1             2,494      30,359 
Greece                       129                                       11.2                244      21,674 
Hungary                         90                                       10.0                106      10,519 
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 
Malta                           0.3                                         0.4                    5      12,359 
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. WT/REG142/5 
Page 2 
 
 
  3. Chart I.1 shows the breakdown of commercial serv ices trade for the EU with the world in 
2000-2009.  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
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
Source: Eurostat database.Chart I.1
European Union, total commercial se rvices trade with  world, 2000-2009
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
4. Chart I.2 shows the breakdown of the EU's commercial services trade with Croatia in 
2002-2009.  Over the period surveyed, the EU has run a growing services deficit with Croatia which 
accelerated following the Agreement's entry into force in 2005.  Travel services account for the 
largest share of EU imports of commercial services from Croatia followed by other business services 
and transportation services.  The EU's exports of servi ces to Croatia consist mainly of travel services, 
followed by other business services and transportation services.  WT/REG142/5 
 Page 3 
 
 
  01,0002,0003,0004,0005,0006,000
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2002 2003 2004 2005 2006 2007 2008 2009
Note:   Data for 2002-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
Source: Eurostat database.Chart I.2
European Union, bilateral commercial services trade with Croatia, 2002-2009
€ million
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 for the period 2000-2009 is depicted in Chart I.3.  Over 
the period surveyed, the EU is an increasing net pr ovider of foreign investment to the world.  WT/REG142/5 
Page 4 
 
 
  05001,0001,5002,0002,5003,0003,5004,000
2000
2001200220032004200520062007
2008
200905001,0001,5002,0002,5003,0003,5004,000
2000
20012002200320042005
2006
200720082009Chart I.3
European Union , inward and outward foreign investment stock with world, 
2000-2009
Inward Outward€ billion € billion
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
Source: Eurostat database. 
 
6. The EU's investment position with Croatia is depict ed in Chart I.4.  Since the entry into force 
of the Agreement in 2005, the EU's stock of FDI in Croatia has almost doubled.  The EU's inward 
stock of investment from Croatia has remained mostly steady over the period.  WT/REG142/5 
 Page 5 
 
 
  0369121518
2000
2001200220032004200520062007
2008
20090369121518
2000
2001
20022003
2004
20052006
2007
2008
2009Chart I.4
European Union , inward and outward foreign investment stock with Croatia, 
2000-2009
Inward Outward€ billion € billion
Note:   Data for 2000-2003 is for EC(15); 2004-2006 is for EC(25) and 2007-2009 is for EU(27).
Source: Eurostat database . 
 
 7. Chart I.5 shows the breakdown of global comme rcial services trade for Croatia in 2002-2009.  
Croatia was a net exporter of commercial services ov er the period surveyed, running a considerable 
and growing surplus.  Travel services accounts for the lion's share of exports, while other business 
services account for the largest share of imports of commercial services. WT/REG142/5 
Page 6 
 
 
  051015
Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import
2002 2003 2004 2005 2006 2007 2008 2009
Note: no trade data on travel from 2000-2002; no trade data of comnunications services in 2000 and no import data in 2006; no 
trade data of insurance services in 2000-2001 and no data on imports in 2006; no 2006 import data of transportation,constructio n, 
financial, computer and information, royalties and license fees, other business, and personal, cultural, and recreational servi ces.
Source: Croatian authorities and Eurostat (2009 data).Chart I.5
Croatia, total commercial servic es trade with world, 2002-2009
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
 
8. Chart I.6 shows the breakdown of Croatia's commercial services trade with the EU in 
2002-2009.  Over the period surveyed, Croatia has run a growing services surplus with the EU which 
accelerated following the Agreement's entry into force in 2005.  Travel services account for the 
largest share of Croatia's exports of commercial services followed by other business services and 
transportation services.  Croatia's imports of services from the EU c onsist mainly of other business 
services, followed by travel and transportation services.   WT/REG142/5 
 Page 7 
 
 
  0246810
Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import
2002 2003 2004 2005 2006 2007 2008 2009
Note: no import data on transportation in 2006; no trade data of travel in 2000; no import data in 2006 of communications; 
construction; insurance; financial; computer and information services; royalties and license fees; other business and personal,  
cultural and recreational services .
Source: Croatian authorities and Eurostat (2009 data).Chart I.6
Croatia, bilateral commercial se rvices trade with EU, 2002-2009
€ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
 
9. Croatia's global investment position is depicted in Chart I.7.  Croatia remains a net recipient 
of FDI with the stock of inward FDI growing si gnificantly over the period;  outward investment 
remains relatively small in comparison. WT/REG142/5 
Page 8 
 
 
  0.00.51.01.52.02.53.03.54.04.5
2000 2001 2002 2003 2004 2005 2006 2007 20080.00.51.01.52.02.53.03.54.04.5
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.7
Croatia , inward and outward foreign inve stment stock with world, 2000-2008
Inward Outward€ billion € billion
Note: data on outward stock in 2000 is € 5 million.
Source: Croatian authorities. 
 
II. CHARACTERISTIC ELEMEN TS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
10. The stabilization and association (SAA) process launched at the Zagreb Summit in November 
2000 is the framework for EU negotiations with the countries of the Western Balkans.  One of its 
objective is for SAA countries to align their legisl ative framework with the regulatory framework of 
the EU as a precursor to eventual EU membership .  Croatia and FYROM are candidate countries for 
EU accession, while other potential candidates in th e Western Balkans include Albania, Bosnia and 
Herzegovina, Montenegro, Serbia and Kosovo.   
11. The SAA Agreement between the EU and Cr oatia was signed on 29 October 2001.  The 
goods aspects of the Interim Agreement entered into  force on 1 March 2002 and were notified to the 
WTO on 17 December 2002.1  The services aspects of the Agreem ent, which entered into force on 
1 February 2005, were notified to the WTO on 12 October 2009 under Article V:7(a) of the 
GATS (document S/C/N/517).  The text of the Agreem ent is available, together with its related 
Annexes, on the following official website: 
 http://eur-lex.europa.eu/LexUriServ/LexUr iServ.do?uri=OJ:L:2005:026:0003:0220:EN:PDF  
                                                      
1 The goods aspects of the Agreement were examined in the CRTA in March 2004 and February 2005.  
See documents WT/REG/142/M/1-2.  WT/REG142/5 
 Page 9 
 
 
  12. 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 
Preamble 
Title I:  General Principles  
Title II: Political Dialogue  
Title III: Regional Cooperation 
Title IV: Free Movement of Goods   
Chapter 1: Industrial Goods 
Chapter II: Agriculture and Fisheries  
Chapter III: Common Provisions 
Title V :  Movement of Workers, Establish ment, Supply of Services, Capital  
Chapter I: Movement of Workers 
Chapter II: Establishment   
Chapter III: Supply of Services  
Chapter IV: Current Payments and Movement of Capital   
Chapter V: General Provisions   
Title VI: Approximation of laws, Law Enforcement and Competition Rules 
Title VII: Justice and Home Affairs 
Title VIII: Cooperation Policies 
Title IX Financial Cooperation 
Title X  Institutional, General and Final Provisions  
Protocols 
  Protocol 1 On Textile and Clothing Products  
  Protocol 2 On Steel Products  
  Protocol On Trade between the Community and Croatia in processed agricultural products 
  Protocol 4 Concerning the definition of the concept of originating products and methods of 
administrative cooperation 
  Protocol 5 On mutual administ rative assistance in customs matters 
Protocol 6 On Land Transport  
 
Source : Text of the Agreement. 
 
13. The relevant aspects of the Agreement for the lib eralization of trade in services are contained 
in Title V (Movement of Workers, Establishment, S upply of Services, Capital) .  Annex VI contains a 
list of financial services, and Protocol 6 contai ns rules applicable to inland transport services. 
14. Article 5 provides for the Agreement to be implemented progressively at the latest within 
six years after its entry into force, i.e. by February 2011.  Certain provisions of Title V applicable to Croatia are subject to a transition period which is described more fully below. 
III. PROVISIONS ON TRADE IN SERVICES 
A. S
COPE AND DEFINITIONS  
15. In addition to governing relations between th e Parties on trade in services, the Agreement 
includes provisions on trade in goods (already implemented as per the Interim Agreement), 
approximation of laws, law enforcement and comp etition, justice and home affairs, cooperation 
policies, and financial cooperation. WT/REG142/5 
Page 10 
 
 
  16. 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 supply of services;  Chapter IV deals with 
current payments and movement of capital;  and Chapter V sets out general provisions.  
17. The provisions of Title V do not apply to activiti es that in the territory of either Party are 
connected, even occasionally, with the exercise of of ficial authority (Article 62.2).  This provision is 
connected to Article 45 of the EC Treaty that stat es that the provisions of the right of establishment 
chapter shall not apply, so far as any given Member  State is concerned, to activities which in that 
State are connected, 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 ("the ECJ") in this 
respect.  There is also Article 39(4) of the Treaty that provides for an exemption from the freedom of 
movement for workers regarding employment in the public service.  In addition, the Parties remain 
free to apply their laws and regulations regardi ng entry and stay, employment, working conditions, 
establishment of natural persons and supply of servi ces, provided that, in so doing, they do not apply 
them in such a manner as to nullify or impair th e benefits accruing to any Party under the terms of 
Agreement (Article 63). 
18. Under the Agreement, a "company" is define d as an EU or Croatian company set up in 
accordance with the laws of an EU member state or Croatia, respectively and having its registered 
office or central administration or principal place of business in the territory of the EU or Croatia 
respectively.2  Companies which are controlled and exclus ively owned jointly by Croatian companies 
or nationals and EU companies or na tionals are covered by the provisi ons of Title V (Article 64).  An 
EU or Croatian national is defined as a natural pers on who is a national of an EU member state or 
Croatia.  Thus, unlike in the GATS, the definition of natural persons does not extend to permanent 
residents. 
19. The structure of Agreement follows neither a ty pical "negative" nor "positive" approach.  Its 
structure reflects one of its main objectives, that is the approximation of Croatia's  legislation to that of 
the EU, taking into account Croatia's formal request for EU membership.  Thus, certain parts of the 
Agreement, such as Title V, mirror some  elements of the EU's primary law.3   
20. Chapters II and III of Title V address different m odes of supply.  Chapter II, on establishment, 
covers mode 3 but also applies to trade in goods .  Through Article 48, it provides for full MFN and 
national treatments upon entry into force, while also maintaining some exceptions and/or restrictions 
in Articles 49 to 51.  In particular, the Agreem ent's provisions on establishment do not apply to air 
transport services, 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 51).4  Chapter III, on the supply of services covering modes 1, 2 
                                                      
2 A "subsidiary" of a company is one which is effectively controlled by the first company 
(Article 48(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,  although 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 48(c)). 
3 i.e. the Treaty establishing the European Commun ity (TEC), as amended, and notably the Internal 
Market freedoms.  The freedom of establishment and 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 b ilateral and preferential rela tions between the EU and 
Croatia in trade in services is ther efore influenced by these Articles as  well as by the principles that the 
European Court of Justice (ECJ) has developed on the basis of their application. 
4 According to the Parties, the Stabilization and Association Council has not made any 
recommendations towards improving establishment and operations.    WT/REG142/5 
 Page 11 
 
 
  and 4, contains a standstill obligation.  It does not  provide for immediate liberalisation of services but 
rather establishes a progressive process.  
B. DENIAL OF BENEFITS  
21. A Party may deny the benefits of Title V to a company having only its registered office in the 
EU or Croatia unless its operations possess "a real and continuous link" with the economy of one of 
the EU Member States or of Croatia (Article 48(a)).   
C. GENERAL PROVISIONS  
1. Market access 
22. Title V does not contain any explicit market ac cess limitation comparable to the provisions in 
GATS Article XVI.  However, as regards establishment, services may be provided as from the entry 
into force of the Agreement for EU and Croatian comp anies (Article 49).  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 56).5  
2. National and MFN treatment  
23. As of the entry into force of the Agreement,  the Parties agree to grant MFN and national 
treatment as regards the establishment of EU a nd Croatian companies and the operation of their 
subsidiaries and branches (Article 49).  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 
24. The Parties agree to take the necessary steps to allow progressively the supply of services by 
EU or Croatian companies or their nationals which are established in a Party other than that of the 
person for whom the services are intended (Article 56 .1).  The supply of services therefore essentially 
covers modes 1 and 2, and 4. 
25. As from four years after the entry into force of the Agreement (i.e. by February 2009), the 
Stabilization and Association Council shall take the measures necessary to implement progressively 
this liberalization of trade in services between the Par ties.  In that context, account shall be taken of 
the progress achieved by the Parties in the approximation of their laws (Article 56.3).6  
26. According to Croatia, liberalization of trade in  services will be regulated by the provisions of 
the new Services Act which will transpose basic provi sions of the Services Directive into Croatian 
legislation.  The Act has gone through the first read ing and is still in the parliamentary procedure.   
27. The Agreement contains a standstill clause in which the Parties commit not to take any 
measures or actions which render the conditions for the supply of services by EU and Croatian 
nationals or companies significantly more restric tive as compared to the situation existing on the day 
                                                      
5 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 Croatia is completed, this  would become applicable to Croatian companies and 
nationals, in the context of eventual Croatian membership of the EU.   
6 According to Croatia, in 2007, the Act on Provision of Tourism Services was changed with 
appropriate adjustments following the EU acquis (some minor amendments followed, the last being in 2010). WT/REG142/5 
Page 12 
 
 
  preceding the date of entry into force of the Agre ement (Article 57).  If one Party believes that the 
other Party has introduced such restrictive measures it  may request consultations with the other Party. 
28. Special provisions apply to the supply of transpor t services, in particular inland transport and 
international maritime transport, as described below.7 
4. Establishment 
29. Chapter II of Title V contains the disciplines gr anting the right of establishment.  As regards 
EU or Croatian companies, establishment means the right to take up economic activities by means of 
the setting up of subsidiaries and branches in the other Party (Article 48(d)(ii)).   As regards nationals 
from EU Member States and Croatia, establishment m eans the right to take up economic activities as 
self-employed persons, and to set up undertakings, in  particular companies, which they effectively 
control (Article 48(d)(i)).  Self-employment and business undertakings by nationals shall not extend 
to seeking 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 
exclusively self-employed.  The Agreement's provisions on establishment go beyond the GATS 
definition of mode 3, as it also covers the establishment of companies producing goods.    
30. Four years after the entry into force of the Agreement (i.e. by February 2009), the 
Stabilization and Association Council was 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 49.4).8  
31. The Agreement contains a standstill clause in wh ich the Parties commit not to adopt any new 
regulations or measures which introduce discriminat ion against the establishment of EU or Croatian 
companies on their territory or in respect of their operation (Article 49.2). 
32. Notwithstanding these commitments on establishmen t, a Party may apply particular 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 52). 
5. Movement of natural persons 
33. Chapter I of Title V contains provisions on the movement of workers.9  The provisions of 
Chapter I provide for non-discrimination based on nationality for EU or Cr oatian nationals legally 
employed in the other Party, as regards working co nditions, remuneration or di smissal (Article 45).  
The provisions also provide for access to the labou r markets for the legally resident spouse and 
children of a worker legally employed in the othe r Party.  Existing facilities for access to employment 
for Croatian workers accorded by EU Member Stat es under bilateral agreements should be preserved 
and if possible improved (Article 46).  Other EU Member States shall examine the possibility of 
concluding such bilateral agreements.  The Agreemen t also provides for rules to be laid down for the 
coordination of social security systems for Croatian workers and their family members adding 
together all periods of insurance, employment or  residence completed in various EU Member States 
                                                      
7 Within the EU internal legal framework, the freedom to provide transport services is governed by 
specific provisions.  See Title VI of TFU (ex Articles 70-80 of TEC). 
8 According to Croatia, the right of self-employed persons to take up economic activities will be 
regulated by the provisions of the new Services Act. 
9 Such provisions are distinct from the GATS provisions on the movement of natural persons supplying 
services.  WT/REG142/5 
 Page 13 
 
 
  are added together for the purpose of  pensions and annuities in respect of old age, invalidity and death 
and for the purpose of medical care for workers a nd family members and that pensions and annuities 
are to be freely transferable. 
34. Chapter II of Title V on establishment contains  provisions (akin to the GATS) on the right 
granted to EU and Croatian companies established in  the territory of the other Party to employ, or 
have employed by one of its subsidiaries or branches,  in accordance with the legi slation in force in the 
host country of establishment, employees who are EU and Croatian nationals (Article 54).  To be 
eligible, employees must be "key personnel" excl usively employed by companies, subsidiaries or 
branches.  The residence and work permits of su ch employees shall only cover the period of such 
employment.  No time limits on residence and work permits are laid down in the Agreement.  Key 
personnel 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 transfer.  The covere d intra-corporate transferees are persons working 
in a senior position within an organization, who prim arily direct the management of the establishment, 
receive general supervision or direction principa lly from the board of directors or stockholders11, as 
well as the persons working within a compan y who possess uncommon knowledge essential to the 
establishment's service, research equipment, techniques or management.  
35. According to Croatia, pursuant to provisions of the Aliens Act (Official Gazette 79/07 and 
36/09), work permits may be issued to key personnel whose status is regulated by the Agreement out 
of the annual work permit quota.  An operating licen ce shall be issued to:  founders of companies in 
Croatia or aliens having a majority share in a co mpany of at least 51% who execute business activities 
in Croatia;  craftsmen who have registered their busi ness activity in Croatia or to one of the co-owners 
of the joint craft business;  persons engaging in free professions in accordance with regulations in 
Croatia;  and aliens providing services on behalf of a foreign employer.  Citizens of EU member states 
may be issued a business permit without the consent of the Croatian Chamber of the Economy. 
36. The entry into and the temporary presence, within the territory of the EU or Croatia, of EU or 
Croatian nationals, is permitted fo r 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 Croatia and has 
no other representative office, branch or  subsidiary in the EU or Croatia. 
37. 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 direct  sales to the general 
public or in supplying services themselves (Article 56. 2).  The measures necessary to implement such 
provisions are to be taken by the Stabilization and Association Council four years after the entry into 
                                                     
 
10 An "intra-corporate transferee" is defined as a natural person working within an organization in the 
territory of a Party, and being temporarily transferred in  the context of pursuit 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 (branch, subsidiary) of that organization, effectively pursuing 
like economic activities in the territory of the other Party.   
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/REG142/5 
Page 14 
 
 
  force of the Agreement, i.e. by February 2009. A ccount shall be taken of the progress achieved by the 
Parties in the approximation of their laws.12 
38. In its horizontal commitments in its GATS sche dule, the EU has made commitments for intra-
corporate transfers (ICTs), business visitors (BV) and contractual service suppliers (CSS) subject to 
conditions which vary for individual EU Member Stat es.  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 WT O Member and have been employed or been a 
partner in it for at least the year immediately preced ing the date of admission.  The natural person is 
temporarily transferred to provide a service throug h 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 sellers seeking temporary entry to negotiate the sale of services 
and ii)  those in a senior position, within a juri dical person, responsible for the setting up of a 
commercial presence of a service provider (but no t engaged in making direct sales or supplying 
services).  The duration of temporary stay of BVs is defined by individual EU Member States.  
Seventeen EU Member States have scheduled horiz ontal commitments on CSS which apply to natural 
persons engaged in the supply of a service on a te mporary 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 period (in the case of most EU Member States which have 
scheduled commitments on CSS).  The services contr act has to be obtained in a predefined list of 
activities.13   
39. In its GATS schedule, Croatia has scheduled horizontal commitments on the temporary 
presence of intra-corporate transferees (ICTs), the defi nition of which mirrors those in the Agreement.  
Such ICTs may be granted work and residence perm its with a validity of two years (or shorter, if 
requested), which are renewable with no limitation providing the ICTs have a valid work contract 
with their employers.  Croatia also makes pr ovision in its GATS schedule for business visitors.14  The 
duration of temporary stay is limited to 90 days or with a 90 days visa, when required. 
40. Croatia has provided detailed st atistics on business licenses issued  to EU citizens, and work 
permits and length of stay issued to EU citizens fo r internal transfers and key personnel, both in and 
out of quota which are reproduced in Tables 1-3 of the Annex.  
D. LIBERALIZATION COMMITMENTS  
41. The approach taken in this section is to compar e the sector-specific commitments taken by the 
EU and Croatia in their GATS schedules with the liberalization offered under the Agreement.   
 
                                                      
12 According to Croatia, the free movement of natural pe rsons providing services in such situations will 
be regulated by the provisions of the new Services Act. 
13 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  services;  entertainment services;  services related to the 
sale of equipment or to the assignment of a patent. 
14 Defined as natural persons who stay temporarily in Croatia without acquiring remuneration from or 
within Croatia and without seeking employment in Croatia.  WT/REG142/5 
 Page 15 
 
 
  1. General Overview 
(a) The European Union 
42. In its GATS schedule, the EU has made co mmitments in 115 of 155 services sectors. 15  It has 
scheduled extensive commitments, including on fina ncial services, telecommunications, transport, 
tourism and professional services, subject to individual EU member state limitations.  The EU did not 
commit postal and audiovisual services and space transport services.  The EU scheduled MFN 
exemptions in a number of sectors including audiovisual services, transport services, and publishing.16  
43. 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 62.2).   
44. Individual EU Member States maintain a number of horizontal reservations concerning 
conditions for commercial presence (mode 3) in the EU 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 fr om the EU may be limited to juridical persons 
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.    
45. With regard to investment, horizontal limitati ons are listed by about half the EU Member 
States in their EU GATS services sched ule.  Such reservations are not indicated under the Agreement.   
46. In the EU GATS schedule, a number of Member States have scheduled reservations on real 
estate purchases.  Under the Agreement, EU members have not registered any particular reservation 
on real estate.  However, under a Joint Declaratio n related to current payments and movement of 
capital, the Parties agree that the acquisition of real estate by Croatian nationals is allowed in EU Member States in accordance with applicable EU la w, subject to specific exceptions and applied in 
conformity with the applicable national legislations of the EU Member States. 
(b) Croatia 
47. In its GATS Schedule, Croatia has made commitm ents in 126 of 155 services sectors.  Croatia 
scheduled extensive commitments, including on fina ncial services, telecommunications, transport, 
tourism, and professional services. Croatia also accepted the Reference Paper on basic 
telecommunications services.
17  It maintains MFN exemptions under Article II of the GATS in some 
areas of road transport and audiovisual services.  In its GATS horizontal commitments, Croatia limits the eligibility for subsidies to legal persons establishe d within Croatia.  Branches can perform all kind 
of business activities but are not considered to be in dependent legal entities.  The acquisition of real 
estate by services suppliers not established and incorp orated in Croatia is not bound, but is permitted 
for companies established and incorporated in Croa tia as legal persons.  Acquisition by branches 
requires the approval of the Ministry of Foreign Affairs.  
                                                     
 
15 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.   
16 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.  
17 WTO document GATS/SC/ 130, 22 December 2000. WT/REG142/5 
Page 16 
 
 
  48. 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 pr operty in Croatia (Article 49).  
Subsidiaries of EU companies have the right to ac quire real estate in Croatia where such rights are 
necessary for the conduct of economic activities for which they are established excluding natural 
resources, agricultural land, forests and forestry land.   Four years after the entry into force of the 
Agreement, the SAA Council shall establish the modalities for extending such rights to excluded 
sectors and to branches of EU companies. 
49. Croatia authorizes as from the entry into force of the Agreement the acquisition of real estate 
in Croatia by EU nationals, except for agricultura l land and areas protected under the Environmental 
Protection Act (Article 60.2).  Within four years, Croatia shall progressively adjust its legislation to 
offer national treatment to EU nationals;  the St abilization and Association Council shall examine 
modalities for extending such treatment to the excluded areas. 
2. Sector-Specific Commitments 
(a) Business Services 
50. The EU's GATS schedule contains commitments in all 11 sub-sectors of the professional 
services category.18  In legal services, more than half of EU Member States have reservations, 
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 dent al 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 nati onality requirements or ac cess is restricted to 
natural persons.  Computer and Related Services is  for the most part fully committed for modes 1-3 
under the GATS for all EU Member States (except Cyprus, Malta, Poland and the Slovak Republic).  
Research and development on natural sciences a nd interdisciplinary R&D services are uncommitted 
for most EU Member States in modes 1-3, while real estate services is unbound in modes 1-3 for 
about half EU Member States.  For rental/l easing 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 BV s (where not unbound), is 
subject to nationality and residency requirement s, prescribed minimum professional qualifications, 
(and, particularly for medical personnel, quotas) in a number of EU Member States.  For a number of 
sub-sectors, CSS is unbound (except for those sub-sect ors positively listed in the EU's horizontal 
commitments). 
51. In its GATS schedule, Croatia has made exte nsive commitments in business services and 
liberalized modes 1-3 for the majority of sub-sector s listed.  Exceptions include a reservation taken 
for the practising of Croatian law,19 registration requirements for architects and lawyers, investment in 
the public health network is not permitted, and cross-border provision of real estate services and 
services incidental to energy distribution requires a commercial presence.  The placement and supply 
services of personnel is not committed except for a sub set of professions listed in its schedule.  For 
                                                      
18 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. 
19 According to Croatia, once Croatia accedes to the EU, attorneys from EU member states will be 
permitted to practise Croatian law in Croatia.  WT/REG142/5 
 Page 17 
 
 
  mode 4, Croatia has made no additional commitment s except for those indicated in the horizontal 
section of its GATS schedule.20 
52. Under the Agreement, there are no national treatment restrictions on professional services for 
mode 3 ("establishment" under in the Agreement).  Further, the provision of such services through 
other modes of supply was bound at the existing le vel of restrictiveness and will be progressively 
liberalized within the prescribed transition period.   
(b) Communication Services 
53. Postal and audiovisual services are uncommitted under the EU GATS schedule.  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 "all services consisting of the transmission 
and reception of signals by any electromagnetic m eans, excluding broadcasting".  Telecommunication 
services is, for the most part, fully committed by the majority of EU Member States;  mode 1 is 
unbound for Cyprus and Malta and eq uity ceilings on mode 3 exist fo r a small number of EU Member 
States.  The EU GATS schedule also incorporat es the Reference Paper obligations for basic 
telecommunications services. For mode 4, ICT and BV are, for most EU Member States, unbound 
except as indicated in the horizontal section of the EU's schedule.  CSS is unbound for all EU 
Member States in communications services. 
54. Postal and audiovisual services are uncommitted in Croatia's GATS schedule.  Croatia has 
fully committed modes 1-3 of courier services.  In  telecommunications services, Croatia liberalized 
modes 1-3 of basic telecommunications services as of 1 January 2003 and enhanced telecommunications and mobile services as of 1 January 2001.  Croatia has made no additional 
commitments in mode 4 of communication services other than those listed in the horizontal section of 
its GATS schedule. 
55. Under the Agreement, there are no national treatment restrictions on communication services 
for mode 3 ("establishment" under the Agreement).  Further, the provision of such services through 
other modes of supply was bound at the existing le vel of restrictiveness and will be progressively 
liberalized within the prescribed transition period.  
(c) Construction and Distribution Services 
56. 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 5 18), Latvia (excludes 511) , and Slovenia (excludes 
518).
21  In the GATS schedule, five newly acceded EU Member States have no commitments in 
mode 3.  Commission agents' services is uncommitt ed in modes 1-3 for the majority of the newly 
acceded EU members in the EU's GATS schedule including mode 1 limitations for France and Italy.  For wholesale trade services, market 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 Me mber States and remains subject to an economic 
needs test in some EU Member States, while fra nchising is unbound in modes 1-3 for three newly 
acceded EU Member States and Sweden.  For m ode 4, ICTs and BVs are unbound except as indicated 
                                                     
 
20 An exception is the placement an d supply services of personnel for which Croatia has scheduled 
minimum qualifications and work experience. 
21 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/REG142/5 
Page 18 
 
 
  in the horizontal part of the EU's schedule with additional commercial presence or nationality 
conditions for a few EU Member States.  For CSS,  defined professional qualif ications and experience 
are required in the case of construction services in so me EU Member States.  In distribution services, 
CSS is unbound for all EU Member States. 
57. Apart from the sub-sector of other distribution services, Croatia has fully committed 
modes 1-3 of construction and distribution servi ces under its GATS schedule.  For mode 4 of 
construction services, for the site manager, recogn ition of technical and professional qualification is 
required to be in accordance with Croatian regulations. 
58. Under the Agreement, there are no national treatme nt restrictions on construction and related 
engineering services, and distribution services for mode 3 ("establishment" under the Agreement).  
Further, the provision of such services through ot her modes of supply was bound at the existing level 
of restrictiveness and will be progressively libe ralized in accordance with  the defined transition 
period.   
(d) Educational Services 
59. 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.  CSS is uncommitted for the majority of EU 
Member States in higher education services.   
60. Croatia has not scheduled primary education services in its GATS schedule but has fully 
committed modes 1-3 of all other sub-sectors except  mode 1 of secondary educational services which 
is unbound.  No additional commitments have been ma de in mode 4 other than those in the horizontal 
section.  
61. Under the Agreement, there are no national treatment restrictions on educational services for 
mode 3 ("establishment" under the Agreement).  Furt her, the provision of such services through other 
modes of supply was bound at the existing level of restrictiveness and will be progressively 
liberalized in accordance with  the transition period.   
(e) Environmental Services 
62. In the EU GATS schedule, modes 2-3 of all sub-sectors of environmental services are 
unbound for a handful of EU Member States, princi pally 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).  CSS is unbound for all EU Member States. 
63. In Croatia's GATS schedule, sewage, refuse disposal, and sanitation and similar services are 
legally considered as municipal services, provided primarily by entities owned by local authorities, 
but may be subject to a concession granted by local authorities.  All other sub-sectors of environmental services (with the exception of cro ss-border supply of nature and landscape services 
and other environmental services which require commercial presence) are fully liberalized for 
modes 1-3.  Mode 4 is unbound except as indicated in the horizontal section. 
 
  WT/REG142/5 
 Page 19 
 
 
  64. There are no national treatment restrictions  on environmental services for mode 3 
("establishment" under the Agreement).  Further, the provision of such services through other modes 
of supply was bound at the existing level of restri ctiveness and will be progressively liberalized in 
accordance with the transition period.   
(f) Financial Services 
65. 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 est ablished 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.  CSS is unbound for those 18 EU Member States under the Understanding.    
66. In its GATS schedule, Croatia has scheduled so me limitations in modes 1-2 of life and non-
life insurance services.  In banking and other financial services, certain sub-sectors including acceptance of deposits, trading for own account and pa rticipation in issues of all kinds of securities 
are unbound for mode 1.  In mode 2, Croatia has sche duled some limitations, e.g. authorization issued 
by the Croatian National Bank is required for opening an account abroad by Croatian non/bank 
residents,
22 and capital payments abroad are generally r estricted except in certain cases.  Mode 4 is 
unbound except as indicated in the horizontal section. 
67. 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 owned by a 
financial service supplier, or to ensure the integrity and stability of the financial system (Article 50.2). 
(g) Health Related and Social Services 
68. In the EU's GATS schedule, mode 3 for hospital services is unbound for six EU Member 
States and subject to authorization or economic need s tests in a number of other EU Member States.  
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 subj ect to nationality condition or prior authorization 
in others.  CSS is unbound in all EU Member States. 
69. In its GATS schedule, Croatia has scheduled onl y hospital and other health and social care 
facilities services with the proviso that under mode 3 investment in the existing obligatory public 
health and social care network is not allowed.  Establishment of some social care facilities may be 
subject to needs based limits in particular geogra phical areas.   Mode 4 is unbound except as indicated 
in the horizontal section.  
70. Under the Agreement, there are no national treatme nt restrictions on health related and social 
services for mode 3 ("establishment" under the Agreem ent).  Further, the provision of such services 
through other modes of supply was bound at the existing level of restrictiveness and will be 
progressively liberalized in accordan ce with the transition period.   
                                                      
22 According to Croatia, since 1 January 2011 authorization issued by the Croatian National Bank to 
open an account abroad is no longer required, in accordance with Article 4 of the Regulation on Amendments of 
the Foreign Exchange Act (OG 153/09). WT/REG142/5 
Page 20 
 
 
  (h) Tourism and Travel Services and Recrea tional, Cultural and Sporting Services 
71. 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., requi ring authorization in order 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 gui des services is unbound in modes 1-3 for a majority 
of the newly acceded EU Member States, while mod es 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 CSS is unbound for a ll EU Member States except  for travel agencies 
and tour operators services which has been committ ed by a number of EU Member States subject to 
limitations indicated in the horizontal section.   
72. 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 publications  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 CSS are unbound for a number of EU Member States.    
73. In its GATS schedule, Croatia has fully comm itted modes 1-3 of all sub-sectors of tourism 
and recreational services except libraries, archives, mu seums and other cultural services.  Mode 4 is 
unbound except as indicated in the horizontal section.  
74. Under the Agreement, there are no national tr eatment restrictions on tourism and travel 
services, and recreational, cultural and sporting services for mode 3 ("establishment" under the 
Agreement).
23  Further, the provision of such services through other modes of supply was bound at the 
existing level of restrictiveness and will be progressi vely liberalized in accordance with the transition 
period.24   
(i) Transport Services 
75. In the EU's GATS schedule, maritime transport and inland waterways transport services are 
uncommitted in modes 1-3 for most EU Member St ates (exceptions are some of the newly acceded 
EU Member States which have in some cases, with th e exception of rental of vessels with crew which 
is not listed in the EU's schedule, made full commitmen ts in this subsector).  In air transport services, 
rental of aircraft with crew is unbound in mod es 1-3 for all EU Member States except Poland. 
Maintenance and repair of aircraft and parts thereo f, 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-sect ors).  Space transport is not committed in the 
EU GATS schedule.  For rail transport services, pass enger and freight transportation and rail freight 
                                                     
 
23 According to Croatia, in accordance with special laws in the cultural field, foreign natural and legal 
persons will not be entitled to  establish libraries, archives and museum s in Croatia until Croatia accedes to the 
EU (Law on libraries ( Official Gazette, 105/97, 5/98, 69/09 i 104/00) , Law on museums (Official Gazette 
142/98, 65/09), Law on archive materials and arch ives (Official Gazette 105/97, 64/00 i 65/09)). 
24 According to Croatia, legislation referring to the provision of tourism/hospitality services has been 
adjusted to the EU acquis an d will enter into force when Croatia accedes to the EU.  At  that time, citizens of the 
EU or the European Economic Area will be permitted to  provide guide services in Croatia under the same 
conditions as national guides;  this will not, however, apply to third country nationals.  WT/REG142/5 
 Page 21 
 
 
  agency and forwarding services are not committed for most EU Member States.  Modes 2-3 of 
maintenance and repair of rail tran sport equipment is fully committed for the majority of EU Member 
States, while pushing and towing services under rail tr ansport services has not been scheduled.  In 
road transport services, mode 3 of passenger and frei ght transportation is either unbound or subject to 
reservations in the form of authorization or econom ic needs tests, while maintenance and repair of 
road transport equipment 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 unbound for all EU Member States.  Serv ices auxiliary to all modes of transport and other 
transport services are uncommitted for a number of EU Member States.  For mode 4, ICTs, BVs and 
CSS are for the most part unbound for most EU Me mber States except some  of the newly acceded 
Member States which have made commitments subject to horizontal limitations. 
76. In its GATS schedule, Croatia has, for the most  part, fully committed modes 1-3 of maritime 
transport services (except for mode 1 cabotage and the requirement of establishment in mode 3 for 
towing and pushing services and supporting services for maritime transport).  Croatia has not 
scheduled internal waterways transport or space tran sport services.  In air transport services, Croatia 
has fully committed modes 1-3 of supporting services for air transport and computer reservation systems.  Rental of aircraft with operator and main tenance and repair of aircraft are fully committed in 
modes 2-3.  In rail transport services, Croatia h as not scheduled passenger and freight transportation 
and pushing and towing services.  Other subsectors of rail transport services are fully committed in 
modes 2-3.  In road transport services, all subsec tors (except rental of commercial vehicles with 
operator which is not scheduled) are fully committe d in modes 2-3.  Pipeline transport is fully 
committed in modes 1-3, while for services auxiliary to  all modes of transport, in the subsectors listed 
mode 3 is subject to an establishment condition.   Mode 4 is unbound except as indicated in the 
horizontal section. 
77. Under the Agreement, Article 51 specifies that  the provisions on establishment do not apply 
to air transport services, inland waterways transport services and maritime cabotage services.  The 
supply of inland transport services is governed by Pr otocol 6 which seeks to ensure unrestricted road 
transit traffic across Croatia and the Commun ity, the application of the principle of 
non-discrimination and progressive harmonization of Cr oatian transport legislation with that of the 
EU.  Protocol 6 applies to road, rail and combined tr ansport including infrastructure.  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 Cr oatia is performed under 
more environmentally-friendly conditions (Art. 7 of Prot ocol 6).  In road transport, the Parties agree 
to grant unrestricted access to Community transit tra ffic through Croatia (defined as the carriage, by a 
carrier established in the Community , of goods in transit through Croa tian territory en route to or from 
an EC member state) and to Croatian transit traffic (d efined at the carriage, by  a carrier established in 
Croatia, of goods in transit from Croatia though Comm unity territory and destined for a third country 
or of goods from a third country destined for Croa tia) through the Community from the date of entry 
into force of the Agreement.  In Annex II of Prot ocol 6 Croatia expressed its interest in opening, as 
soon as possible, negotiations on future coopera tion in the field of waterways transport.
25  Under the 
Agreement there are no reservations listed for sp ace and pipeline transport, thereby effectively 
liberalizing establishment in these sectors.   
                                                      
25 According to Croatia, since the entry into force of the Agreement Croatia has fully harmonized its 
inland waterway legislation with that of the EU an d has effectively implemented it, thus establishing a 
comprehensive legal framework as well as preconditions for further inland waterway development.  Thus, 
special negotiations on further co-operation in the field of inland waterways are no longer necessary. WT/REG142/5 
Page 22 
 
 
  78. With regard to international maritime transpor t the Parties under take to apply effectively the 
principle of unrestricted access to the market and traffic on a commercial basis (Article 58.2).  This 
does not prejudice the rights and obligations under the United Nations Code of Conduct for Liner 
Conferences as applied by one or other Party to the Agreement.  The Parties are committed to a freely 
competitive environment as being an essential feature of the dry and liquid bulk trade.  In applying 
this principle they agree not to introduce cargo-sh aring clauses in future bilateral agreements with 
third countries, shall prohibit cargo-sharing arrangeme nts in future bilateral agreements concerning 
dry and liquid bulk trade, and shall abolish, upon entry into force of the Agreement 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 58.3).  
79. The Parties agreed that mutual  market access in air transport will be dealt with by special 
agreements to be negotiated between the Partie s after the entry into force of the Agreement 
(Article 58.4).  Following the entry into force of  the Agreement, the Parties negotiated the ECAA 
Agreement.26  The ECAA Agreement was signed in June 2006 but has not yet entered into force due 
to the on-going process of ratification in some part ies to the agreement.  Croatia has notified the 
depositary of the ECAA Agreement that it is ready to apply it on a provisional basis mutually with all 
ECAA parties willing to do the same.  Prior to th e conclusion of the ECAA Agreement, the Parties 
agreed not to take any measures or actions which are more restrictive or discriminatory as compared 
with the situation prior to the entry into force of the Agreement.  Croatia agrees to adapt its 
legislation, including administrative, technical and ot her rules, to that of the Community existing at 
any time in the field of air and inland transpor t insofar as it services liberalization purposes and 
mutual access to markets of the Parties and fa cilitates the movement of passengers and goods 
(Article 58.6). 
(j) Other Services 
80. Under its GATS schedule, the EU has listed so me beauty related services (i.e. hairdressing 
services, cosmetic treatment, manicure and pedicu re services, other beauty treatment services, and 
services related to the sale of equipment or to th e assignment of a patent) though with many unbound 
commitments in the four modes for most EU Member States.  Under the Agreement, no limitations on these sub-sectors have been listed. 
E. R
EGULATORY PROVISIONS  
1. Domestic regulation 
81. There is no provision per se  in the Agreement on domestic regulation in line with GATS 
Article VI.  However, the approximation process al so covers measures governed by GATS Article VI. 
2. Recognition 
82. In order to make it easier for EU and Croa tian nationals to take up regulated professional 
activities in the territory of the Parties, the Stab ilization and Association Council shall examine and 
take the steps necessary for the mutual re cognition of qualifications (Article 53).27   
                                                      
26 Multilateral Agreement between the European Union, Albania, Bosnia and Herzegovina, Bulgaria, 
Croatia, FYROM, Iceland, Monten egro, Norway, Romania, Serbia, and the United Nations Interim 
Administration Mission in Kosovo on the establishment of a European Common Aviation Area. 
27 In order to enable mutual recognition of qualifications, Croatia adopted a List of Regulated 
Professions on 1 July 2010.  Based on this List, the Croatian ENIC/NARIC Office of the Agency for Science 
and Higher Education began creating a database of all regulated professions in Croatia.  The Croatian  WT/REG142/5 
 Page 23 
 
 
  3. Approximation of Laws 
83. The Parties recognize the importance of the a pproximation of Croatia's existing legislation 
with that of the EU.  Croatia will gradually make its existing laws and future legislation compatible 
with the EU acquis.  Approximation was to begin on the date of signature of the Agreement and 
extend to all elements of the EU acquis mentioned in  the Agreement by six years after the entry into 
force of the Agreement, i.e. by February 2011 (Article 69).28   
4. Subsidies and State Aid 
5. The Agreement has no specific provision s on subsidies in trade in services. 
6.  Safeguards 
84. During the first three years following the entry into  force of the Agreement, i.e. until February 
2008, Croatia could introduce measures which derogate from the provisions of the chapter on establishment in case of industries undergoing restructuring, or facing serious difficulties, particularly 
where these entail serious social problems in Croa tia, or which faced the elimination or drastic 
reduction of the total market share held by Croa tian companies or nationals in a given sector or 
industry in Croatia or to protect newly emerging i ndustries in Croatia (Article 55).  Such measures 
were to cease to apply at the latest five years af ter the entry into force of the Agreement, i.e. by 
February 2010.
29  While applying such measures, Croatia agreed to grant preferential treatment 
wherever possible to Community companies and na tionals, and in no case treatment less favourable 
than that accorded to companies or  nationals from any third country. 
85. The Parties agree to avoid the imposition of restrictive measures for balance of payments 
purposes.  Where one or more EU Member States is in serious balance of payments difficulties or 
under imminent threat thereof, it may adopt restri ctive measures in accord ance with the conditions 
established under the WTO Agreement.  Such meas ures 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 66). 
7. Payments and capital movements 
86. Chapter IV of Title V of the Agreement deals with current payments and the 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 in accordance with the provisions of  the Agreement's chapter on establishment are 
permitted.  The free movement of capital extends to the liquidation and repatriation of capitals and 
profits;  to credits related to commercial transac tions or to the provision of services in which a 
resident of one of the Parties is participating;  a nd to financial loans and credits with maturity longer 
than a year.   
                                                                                                                                                                     
ENIC/NARIC Office was appointed as the national contact point for professional qualifications by the Act on 
Regulated Professions and the Recognition of Fo reign Professional Qualifications (OG 124/09). 
28 According to Croatia, from the date of signature of the Agreement, Croatia has started gradually to 
approximate its legislation with the EU acquis.  The pr iority areas for the approximation process are competition 
and state aid, intellectual property, consumer protection, public procurement, technical legislation, land 
transport, equal opportunities, health and safety at work, financial services, e-commerce, data protection, 
accounting, and electronic communications .  Gradually, the approximation pr ocess has been ex tended to all 
chapters of the EU acquis, on the basis of the yearly adopted Government programme for legal alignment. With 
the EU accession negotiations in the final phase, Croatia ha s reached a high level of alignment with EU rules. 
29 According to Croatia, such measures have not been used. WT/REG142/5 
Page 24 
 
 
  87. According to Article 60.4, the Parties may ta ke safeguard measures with regard to capital 
movement when payments and capital movements between the Parties threaten to cause serious 
difficulties for the operation of monetary or exchange rate policy.   
88. During the first four years following the entry into  force of the Agreement, i.e. until February 
2009, the Parties shall take measures permitting the creation of necessary conditions for the further 
gradual application of EU rules on the free moveme nt of capital.  The Stabilization and Association 
Council is responsible for determ ining the modalities for the full a pplication of EU rules on the 
movement of capital (Article 61). 
8. Competition 
89. Article 70 sets out the provisions governing co mpetition policies.  Three kinds of activities 
are defined as contrary to the proper functioni ng of the Agreement: i) agreements between 
undertakings, decisions by associations of undertakin gs and concerted practic es between undertakings 
which have as their object or effect, the prevention, restriction or distortion of competition;  ii) abuse 
by one or more undertakings of a dominant position in  the territories of the EU or Croatia as a whole 
or in a substantial part thereof;  iii) any State-aid which distorts or threatens to distort competition by 
favouring certain undertakings or cer tain products (Article 70.1).  Articles 81-82, and 86-87 of the 
TEC and interpretative instruments adopted by EU institutions are used as assessment tools for any 
incompatible competition practices (Article 70.2). 
90. The Parties shall ensure that an operationally independent public body is delegated with the 
powers necessary for the full application of cate gories i) and ii), regarding private and public 
undertakings and undertakings to which special rights have been granted (Artic le 70.3).  Croatia shall 
establish an operationally independe nt authority entrusted with the powers necessary for the full 
application of category iii) within one year from the date of entry into force of the Agreement.  This 
authority has, inter alia , the powers to authorize State-aid schemes and individual aid grants based on 
Articles 81-82, and 86-87 of the TEC and interpreta tive instruments adopted by EU institutions.  It 
also has the power to order the recovery of unlawfu lly granted State-aid (Article 70.4).  Croatia must 
establish a comprehensive inventory of aid schemes before establishing an operationally independent 
authority within four years from the date of entr y into force of the Agreement (Article 70.6).   
9. Government Procurement 
91. Article 72 establishes a regulatory framework fo r government procurement (referred to in the 
Agreement as public contracts) and considers the opening-up of the award of public contracts on the 
basis of non-discrimination and reciprocity, in par ticular in the WTO context, to be a desirable 
objective  (Article 72.1). 
92. Whether Croatian companies are established in the EU or not, they shall be granted access to 
contract award procedures in the EU according to EU procurement rules that are no less favourable 
than that accorded to EU companies from the date of entry into force of the Ag reement.  For contracts 
in utilities, once Croatia has adopted legislation intr oducing EU rules, Croatian utility companies shall 
be granted access to contract award procedures under  the same conditions as above.  The EU shall 
conduct periodic examinations to determine whet her Croatia has introduced such legislation 
(Article 72.2). 
93. EU companies not established in Croatia shall have access to contract award procedures in 
Croatia under treatment no less favourable than that a ccorded to Croatian companies at the latest three 
years after the entry into force of the Agreement (A rticle 70.2).  EU companies established in Croatia 
are granted immediate access on the same terms as Croatian companies.  WT/REG142/5 
 Page 25 
 
 
  10. Intellectual Property 
94. In Article 71 and its related Anne x VIII, the Parties confirm the importance that they attach to 
ensuring adequate and effective protection and enfo rcement of intellectual, industrial and commercial 
property rights.  
95. Croatia shall take the necessary measures to gua rantee, no later than three years after entry 
into force of the Agreement (i.e. by 2008), a leve l of protection for intellectual, industrial and 
commercial property rights similar to that existing in  the EU, including effective means of enforcing 
such rights.  From the entry into force of the Ag reement, Croatia grants EU companies and nationals, 
in respect of the recognition and protection of intellectual, industrial and commercial property, 
treatment no less favourable than that granted by it to any third country under bilateral agreements.  If 
problems in the area of intellectual, industrial a nd commercial property aff ecting trading conditions 
occur, they shall be referred urgently to the St abilization and Association Council, with a view to 
reaching mutually satisfactory solutions.   
IV. GENERAL PROVISIONS OF THE AGREEMENT 
A. EXCEPTIONS  
96. Article 62 contains an exception in case of li mitations justified on grounds of public policy, 
public security or public health.  Article 118 contains an exception for security exceptions. 
97. Under Article 65 MFN treatment does not apply to tax advantages provided by the Parties on 
the basis of double taxation or other agreements.  The Parties may also adopt or enforce any measure 
aimed at preventing the avoidance or evasion of ta xes and apply relevant provisions of their fiscal 
legislation.   
98. The Parties may take any measure necessary to prevent the circumvention of their measures 
concerning third-country access to their markets unde r the provisions of the Agreement (Article 68). 
B. ACCESSION  
99. The Agreement does not contain any specific accession provisions for third parties. 
C. COOPERATION POLICIES  
100. Title VIII of the Agreement addresses coope ration policies. It establishes cooperation 
mechanisms and establishes topics for cooperation in areas such as economic policy (Article 82); 
statistical cooperation (Article 83);  banking, in surance and other financial services (Article 84); 
investment promotion and protection (Article 85);  industrial cooperation (A rticle 86),; small and 
medium-sized enterprises (Article 87); touris m (Article 88); customs (Article 89); taxation 
(Article 90); social cooperation (Article 91);  agricu lture and the agro-industrial sector (Article 92);  
fisheries (Article 93);  education and training (Article 94); cultural cooperation (Article 95);  
information and communication (Ar ticle 96); cooperation in the audi o-visual field (Article 97); 
electronic communications infrastructure and associat ed services (Article 98);  information society 
(Article 99);  transport (Article 100);  energy  (Article 101);  nuclear safety (Article 102);  
environment (Article 103);  cooperation in research and technological developm ent (Article 104);  and 
regional and local deve lopment (Article 105). WT/REG142/5 
Page 26 
 
 
  101. In addition, cooperation mechanisms in the ar eas of justice and home affairs (Title VII)30 and  
financial cooperation, which may take the form of financial assistance from the EU, are addressed in 
Title IX. 
D. INSTITUTIONAL FRAMEWORK  
102. Title X deals with institutional, general and fi nal provisions.  It establishes and defines the 
functions of the Stabilization a nd Association Council (Article 110)31.  The Council's functions are to, 
inter alia , supervise the application and implementation of  the Agreement.  It establishes its rules of 
procedures and has the power to take decisions that  are binding on the Parties within the scope of the 
Agreement.  It may also make appropriate reco mmendations by agreement between the Parties.  
103. The Council is assisted in its duties by a Stabilization and Association Committee 
(Article 114) which may create subcommittees.  Provision is also made for the establishment of a Stabilization and Association Parliamentary Committee that functions as a forum for members of 
parliaments of the Parties to meet and exchange views (Article 116).   
E. D
ISPUTE SETTLEMENT  
104. The Agreement does not contain a fully-fledged dispute settlement mechanism, but rather 
includes a number of provisions which allow the Parties to address matters concerning the 
interpretation or implementation of the Agreement.  In particular, Article 120 provides that if either 
Party considers that the other Party has failed to fulfil an obligation under the Agreement, it may take 
appropriate measures.  Before do doing, except in cases of special urgency, it shall supply the 
Stabilization and Association Council with all releva nt information with a view to seeking a solution 
acceptable to the Parties.  The Parties also agree to  consult promptly through appropriate channels at 
the request of either Party to discuss such matters.32  The clause on consultation shall in no way affect 
and is without prejudice to consultation provisions in  Articles 31 (agricultural and fisheries products), 
38 (general safeguard clause), 39 (shortage clause) and 43 (fraud) (Article 121).  
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
105. Article 12 provides for Croatia to begin negotia tions, after the signature of the Agreement 
with countries involved in the SAA process with a view to concluding bilateral conventions on 
regional cooperation.  Such conventions are to be concluded within two years after the date of entry 
into force of the Agreement.  One of the main el ements when Croatia concl udes bilateral conventions 
on regional cooperation with other countries having signed a Stabilisa tion and Association Agreement 
is mutual concessions concerning the movement of workers, establishment, supply of services, current 
payments and movement of capital as well as othe r polices related to movement of persons at an 
equivalent level to that of the Agreement (Ar ticle 12).  In addition, Croatia may conclude a 
convention on regional cooperation with any country candidate for accession to the EU in any of the 
fields of cooperation covered by the Agreement.  The convention should aim at gradual alignment of 
bilateral relations between Croatia and that candidate country to the relevant part of the relations 
between the EU and its Member States and th at candidate country (Article 14).     
                                                      
30 This Title covers cooperation in the following areas:  the reinforcement of institutions and rule of law 
(Article 75), visa, border control, asylum and migr ation (Article 76), preven tion and control of illegal 
immigration, and readmission (Article  77), money laundering (Article 78), cooperation on illicit drugs (Article 
79), and preventing and combating crime and other illegal activities (Article 80). 
31 The Stabilization 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 Croatia, on the other. 
32 According to the Parties, all open issues on im plementation and fulfilment of obligations under the 
Agreement have been discussed in the framework of the relevant subcommittee or the SAA Committee, without 
launching separate consultation mechanisms.  WT/REG142/5 
 Page 27 
 
 
  106. The regional trade agreements in force for the Par ties are listed in Table IV.1.  With regard to 
the Agreement with Papua New Guinea, which ente red into force on 20 December 2009, the EU has 
indicated that the Parties are currently completi ng procedures to make a notification to the WTO. 
Table IV.1:  EU and Croatia:  Particip ation in other RTAs (notified and non- notified in force), as of 14 April 2011  
GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement 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 
Albania  01.04.09 Services 2009 GATS Art. V 
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 
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 
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  WT/REG142/5 
Page 28 
 
 
  GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
CROATIA  
CEFTA 01.05.07 Goods 2007 GATT Art. XXIV 
Turkey 01.07.03 Goods 2003 GATT Art. XXIV 
European Communities 01.03.02 Goods 2002 GATT Art. XXIV 
EFTA 01.01.02 Goods 2002 GATT Art. XXIV 
 
Source: WTO Secretariat.  
 
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). 
EFTA: European Free Trade Association. Members ar e Iceland, Liechtenstein, Norway, Switzerland. 
 
 
    
   WT/REG142/5
 Page 29ANNEX  
 
 
Table 1.a. Business licences issued by Croatia to EU citizens 
Issuance based on providing services on  behalf of foreign employer (2007-2009) 
Citizenship Year 
Shipbuilding 
Agriculture 
Water 
management 
Construction 
Traffic and 
communicatio
n 
Transport and 
communicatio
ns 
Trade 
Catering and 
tourism 
Finance 
Crafts and 
personal 
services 
Health 
Local 
administration 
Industry 
IT 
Others 
Total 
Austria 2007-
2009 6   44  1 6 36     16  9 118 
Belgium 2007-
2009 4  2   2  7     2 1  18 
Bulgaria 2007-
2009 61     1  2 1      2 67 
Czech 
Republic 2007-
2009       2 135     32  1 170 
Denmark 2007-
2008 2       6     19   27 
Finland 2007-
2009 2       13     1  1 17 
France 2007-
2009      2 1 108 20    9   140 
Germany 2007-
2009 4   12 12 4 19 26  1   15  4 97 
Greece 2007-
2009 8            2   10 
Hungary 2007-
2009    11   1 10     17  1 40 
Ireland 2007      1          1 
Italy 2007-
2009 8 5  50   8 14     41  49 175 
Latvia 2007-
2008 2        2         4  
Lithuania 2007        1        1 
Malta             2007-
2009        6         6  
Netherlands 2007-
2009 4     5  3     5 3  20 
Poland 2007-
2009 4   2 1   19     5   31 
Portugal         2008-
2009 2       8          1 0  
Romania 2007-
2008       1 9       8 18 
Slovak 
Republic 2007-
2009 166   17    67     6   256 
Slovenia 2007-
2009 10 1  1  4 8 49  1 4  29  13 120  
  WT/REG142/5 
Page 30 
Citizenship Year 
Shipbuilding 
Agriculture 
Water 
management 
Construction 
Traffic and 
communicatio
n 
Transport and 
communicatio
ns 
Trade 
Catering and 
tourism 
Finance 
Crafts and 
personal 
services 
Health 
Local 
administration 
Industry 
IT 
Others 
Total 
Spain 2007-
2008      2 2 5     2  2 13 
Sweden 2007-
2009 7     2  36     1   46 
United 
Kingdom 2007-
2009 3    1 1 1 48     1  3 58 
 
Source: Croatia authorities. 
 
Table 1.b. Business licences issued to EU citizens, Issuing based on  providing services on behalf of foreign employer, by Key p ersonnel 
Citizenship Year Up to 4 months 4-6 months 1 year Up to 2 years Over 2 years Total 
Austria 2007-2009 15 27 43 27 6 118 
Belgium 2007-2009 4 6 3 1 4 18 
Bulgaria 2007-2009 6  33 25 3 67 
Czech Republic 2007-2009 79 31 55 5  170 
Denmark 2007-2008 6 6 4 11  27 
Finland 2007-2009 10 1 5  1 17 
France 2007-2009 57 15 57 10 1 140 
Germany 2007-2009 30 22 24 13 8 97 
Greece 2007-2009 1 2  7  10 
Hungary 2007-2009 13 1 20 5 1 40 
Ireland 2007-2007  1    1 
Italy 2007-2009 24 17 88 33 13 175 
Latvia 2007-2008 2  1 1  4 
Lithuania 2007-2007   1   1 
Malta                 2007-2009   2 2 2 6 
Netherlands 2007-2009 3 7 8 2  20 
Poland 2007-2009 14 1 10 4 2 31 
Portugal              2008-2009  7 3   10 
Romania 2007-2008 2 4 4 3 5 18 
Slovak Republic 2007-2009 57 10 62 89 38 256 
Slovenia             2007-2009 26 18 49 19 8 120 
Spain 2007-2008 4 1 5 3  13 
Sweden 2007-2009 30 8 5 2 1 46 
United Kingdom 2007-2009 26 5 20 5 2 58 
 
Source: Croatia authorities.  
   WT/REG142/5
 Page 31Table 2.  Work Permits Issued by Croatia to EU Citizens, Le ngth of Stay for Internal tran sfer and Key personnel (2004-2009) 
Citizenship  Year Up to 4 months 4 to 6 mo nths 1 year Up to 2 years Over 2 years TOTAL 
Internal transfer 2005-2009 65 12 230 176 21 504 Austria 
Key personnel 2004-2009 17 3 266 163 40 489 
Internal transfer 2005-2009 1  14 5 2 22 Belgium 
Key personnel 2004-2009 1  12 7 1 21 
Internal transfer 2005-2009 5  31 5 1 42 Bulgaria 
Key personnel 2004-2009 2 1 14 10 2 29 
Cyprus Key personnel 2009   1   1 
Internal transfer 2005-2009 42 24 221 80 3 370 Czech Republic 
Key personnel 2004-2009 14 2 55 27 2 100 
Internal transfer 2006-2009   7 4 1 12 Denmark 
Key personnel 2004-2009 2  20 5 3 30 
Estonia Key personnel 2005-2009 1  4 1  6 
Internal transfer 2009   1   1 Finland 
Key personnel 2004-2009   4 1 1 6 
Internal transfer 2005-2009 34 7 74 60 16 191 France 
Key personnel 2004-2009 5 2 89 51 4 151 
Internal transfer 2005-2009 90 13 143 83 22 351 Germany 
Key personnel 2004-2009 20 4 200 125 30 379 
Internal transfer 2005-2009 2  1 3 2 8 Greece 
Key personnel 2004-2009  5 8 2  15 
Internal transfer 2005-2009 28 2 45 38 9 122 Hungary 
Key personnel 2004-2009 18  109 56 5 188 
Internal transfer 2005-2009 2  5 2  9 Ireland 
Key personnel 2004-2009   17 10 1 28 
Internal transfer 2005-2009 28 3 251 156 7 445 Italy 
Key personnel 2004-2009 21  238 124 19 402 
Internal transfer 2007-2009   2 1  3 Latvia 
Key personnel 2006-2009   4 2  6 
Internal transfer 2006 1     1 Lithuania 
Key personnel 2006-2008   2 2  4 
Luxembourg Key personnel 2004-2009   4 1  5 
Internal transfer 2009   1   1 Malta 
Key personnel 2008-2009   1 2  3 
Internal transfer 2005-2009 3  12 6 3 24 Netherlands 
Key personnel 2004-2009 9 1 40 16 3 69  
  WT/REG142/5 
Page 32 Citizenship  Year Up to 4 months 4 to 6 mo nths 1 year Up to 2 years Over 2 years TOTAL 
Internal transfer 2005-2009 16 7 42 15 1 81 Poland 
Key personnel 2004-2009 1 1 31 18 4 55 
Internal transfer 2006-2009 2  1 1  4 Portugal 
Key personnel 2004-2009   5 2  7 
Internal transfer 2005-2009 1  21 13  35 Romania 
Key personnel 2004-2009 5 3 42 23 1 74 
Russia Internal transfer 2009   1   1 
Internal transfer 2005-2009 9 5 26 9 2 51 Slovakia 
Key personnel 2004-2009 9  37 22 3 71 
Internal transfer 2005-2009 64 17 95 55 8 239 Slovenia 
Key personnel 2004-2009 20 2 194 101 16 333 
Internal transfer 2005-2009   7 4  11 Spain 
Key personnel 2004-2009 1  17 7 1 26 
Internal transfer 2005-2009 6  14 9 2 31 
Key personnel 2004-2009 1  30 19 1 51 Sweden 
Internal transfer 2005-2009 35 5 57 20 1 118 
 Key personnel 2004-2009 11 2 89 51 14 167 
 
Source: Croatia authorities. 
  
   WT/REG142/5
 Page 33Table 3.  Work permits issued by Croatia to EU citizens out of quota for Internal transfer and Key personnel (2004-2009) 
Citizenship Class Year 
Agriculture 
Shipbuilding 
Water management 
Construction 
Transport and 
communications 
Trade 
Catering and 
tourism 
Crafts and personal 
services 
Housing utilities 
Finances 
Education and 
science 
Health 
Industry 
Sport 
Culture 
IT 
Others 
Total 
Internal 
transfer 2004-
2009   3 285 11 56 8 1 1 31   38   1 69 504 
Austria   Key 
personnel 2004-
2009  1  43 13 106 62  1 53   47 2 1  160 489 
Internal transfer 2004-
2009    3 3 6 2   3       5 22 
Belgium   Key 
personnel 2004-
2009     2 1 11   2   1    4 21 
Internal transfer 2005-
2009     8 21    4   5    4 42 
Bulgaria   Key 
personnel 2004-
2009  2  2  12 7 1  1       4 29 
Cyprus Key 
personnel 2009      1            1 
Internal transfer 2004-
2009    329  7 5   3   10   3 13 370 
Czech Republic 
  Key 
personnel 2004-
2009 2   6 1 27 47      4    13 100 
Internal transfer 2006-
2009       2      10     12 
Denmark   Key 
personnel 2004-
2009     2 10 13   2   1    2 30 
Estonia Key 
personnel 2005-
2009    1  3    1       1 6 
Internal transfer 2009       1           1 
Finland   Key 
personnel 2004-
2009      2    2   2     6 
Internal transfer 2004-
2009 1 1  54 2 43 25   32   11   1 21 191 
France   Key 
personnel 2004-
2009    3 5 60 24   13   1  4  41 151 
Internal 
transfer 2004-
2009  1 1 74 97 67 10  2 3   27  3 3 63 351  Germany    Key 
personnel 2004-
2009 1   33 27 103 88   10 1  33 6  1 76 379 
                      
  WT/REG142/5 
Page 34 
Citizenship Class Year 
Agriculture 
Shipbuilding 
Water management 
Construction 
Transport and 
communications 
Trade 
Catering and 
tourism 
Crafts and personal 
services 
Housing utilities 
Finances 
Education and 
science 
Health 
Industry 
Sport 
Culture 
IT 
Others 
Total 
Internal 
transfer 2004-
2009      4           4 8 
 Greece  Key 
personnel 2004-
2009      3 3      5    4 15 
Internal transfer 2004-
2009    2 5 19 3   1   77   1 14 122 
Hungary   Key 
personnel 2004-
2009    7 4 80 44 1  15   7    30 188 
Internal 
transfer 2005-
2009     1 2 1      5     9 
Ireland   Key 
personnel 2004-
2009      11 6          11 28 
Internal transfer 2004-
2009 1   63  101 6 6  13 1  131    123 445 
Italy   Key 
personnel 2004-
2009 1 2  33  105 67 28  16   104 1   45 402 
Internal 
transfer 2007-
2009      3             3  
Latvia 
  Key 
personnel 2006-
2009      5           1 6 
Internal transfer 2006      1            1 
Lithuania   Key 
personnel 2006-
2008      2       2     4 
Luxembourg Key 
personnel 2004-
2009       5           5 
Internal 
transfer 2009                 1 1 
Malta 
  Key 
personnel 2008-
2009      1 2           3 
Internal transfer 2004-
2009    2 4 5 1   2   6    4 24 
Netherlands   Key 
personnel 2004-
2009     2 29 28    1      9 69 
Internal transfer 2005-
2009    9 1 3 6   1   50   5 6 81 
Poland   Key 
personnel 2004-
2009      22 7   1 1  13    11 55  
   WT/REG142/5
 Page 35Citizenship Class Year 
Agriculture 
Shipbuilding 
Water management 
Construction 
Transport and 
communications 
Trade 
Catering and 
tourism 
Crafts and personal 
services 
Housing utilities 
Finances 
Education and 
science 
Health 
Industry 
Sport 
Culture 
IT 
Others 
Total 
Internal 
transfer 2006-
2009      1       1   2  4 
Portugal  Key 
personnel 2004-
2009      2       4    1 7 
Internal transfer 2004-
2009    3  7       4    21 35 
Romania   Key 
personnel 2004-
2009 1   1  65 1      3    3 74 
Internal 
transfer 2004-
2009  1  16  8    3   12   2 9 51 
Slovak Republic  Key 
personnel 2004-
2009     1 22 35   2   4   1 6 71 
Internal transfer 2004-
2009    18 3 113 19 7  2  2 17    17 198 
Slovenia  Key 
personnel 2004-
2009  1  15 2 151 35 6  7  2 38 2  1 73 333 
Internal 
transfer 2005-
2009     5  1      3    2 11 
Spain  Key 
personnel 2004-
2009     5 5 4      4    8 26 
Internal transfer 2004-
2009     9 5       12    5 31 
Sweden  Key 
personnel 2004-
2009  2  2 15 9 7      3    13 51 
Internal transfer 2004-
2009    4 6 21 67   1   5    14 118 
United Kingdom  Key 
personnel 2004-
2009    11  78 35 1  4   5   3 30 167 
 
Source: Croatia authorities. 
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