WORLD TRADE  
ORGANIZATION  WT/REG285/1 
18 April 2011 
 (11-1984) 
Committee on Regional Trade Agreements  
 
 
 
 
 
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement between the 
European Union and Serbia 
(Goods) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considerati on of the Free Trade Agreement between the 
European Union and Serbia has been dr awn up by the WTO Secretariat on its own 
responsibility and in full consultation with th e Parties.  The report has been drawn up 
in accordance with the rul es and procedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this re port may be addressed to Rohini Acharya 
(tel: +41 22 739 5874).  WT/REG285/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 4  
A. BACKGROUND INFORMATION  4  
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  5  
1. Import duties and charges, and quantitative restrictions 5  
(a) General provisions 5  
(b) Liberalization of trade and tariff lines 7  
(c) Liberalization by the EU 8  
(d) Liberalization by Serbia 9  
(e) Tariff rate quotas 11  
2. Import restrictions and prohibitions 12  
3. Rules of origin 12  
4. Export duties and charges, and quantitative restrictions 15  
C. REGULATORY PROVISIONS OF THE AGREEMENT  15  
1. Standards 15  
(a) Sanitary and phytosanitary measures 15  
(b) Technical barriers to trade 15  
2. Safeguard mechanisms 15  
(a) Global safeguards 15  
(b) Bilateral safeguards 15  
(c) Special safeguards 16  
(d) Balance of payments 16  
3. Anti-dumping and coun tervailing measures 17  
4. Subsidies and State-aid 17  
5. Other regulations 18  
(a) Customs-related procedures 18  
(b) Other 19  
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  21  
1. Steel 21  
E. GENERAL PROVISIONS OF THE AGREEMENT  22  
1. Transparency 22  
2. Current payments and capital movements 23  
3. Exceptions 23  
4. Accession and termination 23  
5. Institutional framework 23  
6. Dispute settlement 23  
7. Relationship with other agreements concluded by the Parties 25  
ANNEX I 28 
ANNEX II 31 
  WT/REG285/1 
 Page 1 
 
 
  Key Facts 
 
Parties to the Agreement:  
The European Union (Austria;  Belgium;  Bulgaria;  Cyprus;  Czech Republic;  
Denmark;  Estonia; Finland;  France;  Germany;  Greece;  Hungary;  Ireland;  
Italy;  Latvia;  Lithuania;  Luxembourg; Malta;  Netherlands;  Poland;  
Portugal;  Romania;  Slovak Republic;  Slovenia;  Spain;  Sweden; United 
Kingdom), and Serbia.  
Date of Signature:  29 April 2008 
 Date of Entry into Force: 1 February 2010 
 
Date of Notification:   27 May 2010 (goods)  
 
 
 I. TRADE ENVIRONMENT 
1. The Interim Agreement on trade and trade-relate d matters (hereinafter referred to as "the 
Agreement") between the European Community (hereinafter referred to as "the EU") and the Republic 
of Serbia (hereinafter referred to as "Serbia") is related to the series of Stabilization and Association 
processes engaged by the EU with its partners from the Balkan region.  The Agreement covers trade 
in goods only. 
2. As the world's largest exporter and importer of merchandise (16.2% of world exports and 
17.4% of imports in 2009), the EU repr esents a substantial market for Serbia.
1  Serbia's rankings in 
world trade are relatively more modest, as the world's 60th largest exporter and 52nd largest importer 
of merchandise in 2009 (excluding intra-EU trade), accounting for 0.1% of world exports and 0.12% 
of imports.  Serbia's economy and trade are closely linked with that of the EU, with over 50% of its 
exports and imports destined fo r and originating from the EU.2 
3. Charts I.1 and I.2 show global and bilateral tr ends in trade in goods between the Parties 
during 2000 to 2010.  Data from the EU's Eurost at database on bilateral merchandise trade between 
the parties are available only since June 2005.  Between 2003 and 2008 the EU's trade deficit with the 
world continued to widen with import growth outp acing that of exports;  since 2008 the deficit has 
remained steady.  However, it maintains a trade surp lus in its bilateral trade with Serbia, a surplus 
which widened between 2006 and 2008,  before narrowing slightly in 2009 and 2010 (Chart I.1).  Like 
its trade position with the EU, Serbia maintained a steady deficit in its overall balance of trade during 
this period.   
4. Chart I.3 below shows the  annual average struct ure of merchandise trad e between the Parties 
according to broad HS Sections during the period 2007-2009.  Serbia's imports from the EU closely 
reflect the pattern of the EU's global exports, with  machinery, chemicals, vehicles and base metals 
forming the main import categories (accounting togeth er for 55.5% of its imports from the EU and for 
65.7% of the EU's global exports).  Of the 4 largest  categories of imports by the EU from Serbia (base 
metals, machinery, vegetables and plastics) which ac counted for 60.9% of its imports from Serbia in 
this period, base metals, machinery and plastics are also among Serbia's largest global exports 
(45.3%), with prepared foods and vegetables also significant exports. 
                                                      
1 WTO Statistics Database - Trade Profiles (October 2010). 
2 These are 54% of its exports and 57% of its im ports (WTO Statistics Database - Trade Profiles, 
October 2010). WT/REG285/1 
Page 2 
 
 
   
024681012141618
02004006008001,0001,2001,4001,6001,800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010€ billion € billionChart I.1 - EU: Merchandise imports from and exports to world and 
Note:  Trade with world excludes intra-EU27 trade;  no trade data with Serbia prior to June 2005.
Source: EU authorities based on Eurostat (Comext, Statistical regime 4).Imports from S erbia
Exports to S erbiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
024681012141618
024681012141618
2004 2005 2006 2007 2008 2009€ billion € billionChart I.2 - Serbia: Merchandise imports from and exports to world and 
EU, 2004-2009
Note: No trade data with Serbia prior to 2004.
Source : EU authorities based on UNSD, Comtrade database.Imports from EU
Exports to EUTotal imports
Total exportsLeft hand scale: Right hand scale:
  WT/REG285/1 
 Page 3 
 
 
  Chart I.3
EU and Serbia: product composition of  merchandise trade,  annual average 
(2007-2009)
EU's imports from Serbia Serbia's imports from EU
Source:  EU authorities based on Eurostat database and UNSD, Comtrade database.Per cent
Total:  €3.6 billion Total:  €7.4 billion
Total:  €1,401 billion Total: €13.5 billion
Total:  €1,216 billion Total:  €6.6 billionEU's global exportsSerbia's global exportsEU's global imports Serbia's global importsOther
8.4
Base metals
29.8Minerals 2.9 Machinery
20.5Other 12.7
Textiles 4.5
Plastics 7.0
Other 
7.6Minerals
19.6
Vegetables 2.3Other 13.2
Chemicals
7.8Vehicles 6.8Minerals
27.6Vegetables 2.6
Optical 3.3Precious stones 2.3
Textiles 4.4Miscellaneous 2.6
Wood pulp 3.1
Other 
7.6 Other 7.1
Optical 4.5Plastics 3.8
Base metals 7.4Minerals 6.0
Vegetables 8.0Wood pulp 2.9
Plastics 8.5Vehicles
8.0Prepared foods 3.1Articles of stone, plaster, cement 1.9
Base metals 
6.9
Vehicles 13.8Machinery
29.8 Textiles 2.8
Prepared foods 3.3Vehicles 3.9Precious stones 2.4Wood pulp 2.2Wood 1.7
Prepared foods 2.7
Optical 1.9Articles of wood 2.1
Machinery 17.9
Base metals 
Chemicals 10.1
Base metals
24.0
Textiles 6.4Minerals 4.2Machinery 
22.0Textiles 5.6Plastics 2.6Prepared foods 2.3
Chemicals 14.7Optical 1.9
Plastics 5.6Chemicals
12.1
Vehicles
11.9
Base metals 11.0Wood pulp 4.3
Chemicals 6.7Machinery 
12.9
Vegetables 9.4Plastics 
8.8Textiles 8.3Chemicals 
5.4Prepared foods 
5.0Vehicles 3.8Footwear 3.3
Minerals 7.9
Miscellaneous 1.7
Machinery
12.8
Prepared foods
8.8Miscellaneous 2.3Footwear 2.3Articles of wood 
 
 WT/REG285/1 
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  II. CHARACTERISTIC ELEMEN TS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
5. As part of the stabilization and association process launched by the EU with the Balkan 
countries in November 2000 at the Zagreb summi t, the Interim Agreement on Trade and Trade 
Related Matters (henceforth "the Agreement") was signed between the European Union and Serbia on 
29 April 2008 and entered into force for both Parties on 1 February 2010.3  The Agreement was 
intended to implement provisions of the Stabiliza tion and Association Agreement (SSA) on Trade and 
Trade Related Matters between the Parties, subject to its conclusion at a later date.4  
6. The Agreement was notified by the Europ ean Union to the WTO on 27 May 2010 under 
Article XXIV of the GATT 1994 and the Understa nding on the Interpretation of Article XXIV of 
GATT 1994 (WT/REG285/N/1).  The text of the Agre ement, along with its schedules, annexes and 
protocols is available on the Website of the EU at:   
 http://ec.europa.eu/enlargement/pdf/serbia/ key_document/interim_agreement_trade_en.pdf  
 7. The Agreement is composed of four titles, a nd six Annexes and Protocols each as described 
in Box II.1 below.  The Annexes and Protocols are an integral part of the Agreement. 
Box II.1 Structure of the Agreement  
Title I General Principles 
Title II Free Movement of Goods 
Chapter 1 Industrial products 
Chapter 2 Agriculture and fisheries 
Chapter 3 Common provisions 
Title III Other Trade and Trade-Related Provisions 
Title IV Institutional, General and Final Provisions 
Annex I (Article 6) Serbian tariff concessions for Community Industrial products 
Annex II (Article 11) Definition of "baby beef" products 
Annex III (Article 12) Serbian tariff conc essions for Community Industrial products 
Annex IV (Article 14) Community concessions for Serbian Fishery Products 
Annex V (Article 15) Serbian concessions for Community Fishery Products 
Annex VI (Article 40) Intellectual, Industrial and Commercial Property Rights 
Protocol 1 (Article 10) On trade between the Community and Serbia, in processed agricultural 
products 
Protocol 2 (Article 13) Wine and spirit drinks 
Protocol 3 (Article 29) Definition of the concept of originating products and methods of 
administrative cooperation 
Protocol 4 (Article 38) On St ate aid to the steel industry 
Protocol 5 (Article 41) Mutual administrative assistance in customs matters 
Protocol 6 (Article 50) Dispute settlement 
 
                                                      
3 Serbia started implementation of the Agreement as of 1 January 2009. 
4 Stabilization and Association Agreements (S AAs) aim to promote economic development and 
political stabilization of, and to establish a close and long-term association between the EU and the 
Western Balkan nations.  There are cu rrently four SAAs in force:  with  the Former Yugoslav Republic of 
Montenegro (FYROM), Croatia, Albania and Montenegro.  In addition, Interim Agreements covering just trade 
in goods at present are in  force for Serbia and Bosnia and Herzegovina, pending the completion of a SAA 
(http://ec.europa.eu/trade/crea ting-opportunities/bilateral-relations/regions/balkans/ ).  The Agreement between 
the EU and Serbia does not apply to Kosovo which is at  present under international administration pursuant to 
UN Security Council Resolution 1244 of 10 June 1999.  This is without prejudice to the current status of 
Kosovo or the determination of its final status under that Resolution (Article 135).  WT/REG285/1 
 Page 5 
 
 
  8. The Parties agree to gradually implement a bila teral free trade area over a maximum period of 
six years from the entry into force of the Agreement (Article 3) (by 2015).  
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
9. The Combined Nomenclature (CN) is applied to  the classification of goods by the Parties. 
The Agreement covers agriculture and fishery produc ts (Chapters 1-24 and products in Annex 1.1(ii) 
of the WTO Agreement on Agriculture as well as fi sh and fish products) and industrial products 
(Chapters 25-97 except those in Annex I.1 (ii) of the WTO Agreement on Agriculture).5  T h e  
Agreement defines customs duties and charges having equivalent effect to customs duties as any duty 
or charge (including any surtax or surcharge) im posed in connection with the import or export of a 
good except charges equivalent to an internal tax (i ncluding duties and measures of an internal fiscal 
nature) imposed consistently with the provisions of Article III.2 of the GATT 1994, antidumping or 
countervailing measures and fees or charges comme nsurate with the costs of services rendered 
(Article 18).   
10. The basic duty on which successive tariff re ductions are based is the Community Common 
Customs Tariff, established pursuant to C ouncil Regulation (EEC) No. 2658/87 applied erga omnes  
on the day the Agreement was signed for the EU, a nd the Serbian applied tariff as in the Official 
Gazette of Serbia No. 62/2005 , 61/2007 and 5/2009 .  If after the Agreement was signed, any tariff 
reduction is applied erga omnes , especially resulting from WTO negotiations, or the accession of 
Serbia to the WTO or from reductions after Serbia 's accession to the WTO, the reduced duties will 
replace the basic duty from the date on which they ar e applied.  Serbia will also reduce its customs 
duties in trade with the EU more rapidly if its general economic situation and of the economic sector 
concerned permit (Article 23).  The Interim Comm ittee shall analyse the situation and make any 
recommendations.  A standstill clause (Article 36), ensures that no new customs duties or quantitative 
measures on imports or exports or charges or measu res having equivalent effect shall be introduced, 
nor those already applied between the Parties be  increased or made more restrictive once the 
Agreement has entered into force.  However, this  commitment will in no way restrict the pursuit of 
the respective agricultural and fishery policies of th e Parties or the application of any measures under 
these policies insofar as the import regime in Anne xes II-V (agriculture and fishery products) and 
Protocol 1 (processed agricultural products) is not  affected.  Details of tariff liberalization 
commitments in the Agreement are provided in Table II.1 below.   
 
  
 
  
 
  
 
 
 
                                                     
 
5 Bilateral trade in products covered by the Tr eaty establishing the European Atomic Energy 
Community shall be conducted in  accordance with the provisions of that Treaty (Article 19). WT/REG285/1 
Page 6 
 
 
  Table II.1 
EU-Serbia:  Liberalization Schedule  
 EU Serbia 
Industrial products Immediate liberalization Immediate lib eralization except for products in: 
Annex I (a) which will be reduced to 70% of the basic duty on the 
date of entry into force of the Agreement (i.e. 1 January 2009 for 
Serbia) , to 40% of the basic duty on 1 January of the following year and abolished on 1 January of 2010; 
Annex I (b) which will be reduced to 80% of the basic duty on the 
date of entry into fo rce of the Agreement,  to 60% of the basic duty 
on 1 January of the following year, to 40% of the basic duty on 1 
January of the second year, to 20% of the basic duty on 1 January of 
the third year  and abolished on 1 January of 2013;   
Annex I(c) which will be reduced to 85% of the basic duty on the 
date of entry into fo rce of the Agreement,  to 70% of the basic duty 
on 1 January of the following year, to 55% of the basic duty on 1 January of the second year, to 40 % of the basic duty on 1 January of the third year, to 20 % of the basic duty on 1 January of the fourth 
year and abolished on 1 January of 2014  . 
Agriculture (except 
processed agriculture and fisheries) Immediate liberalization except for 
baby beef, sugar and wines which are subject to TRQs Immediate liberalization for products in Annex IIIa.  Duties on 
products in Annex IIIb and IIIc ar e to be reduced annually and 
eliminated (including a seasonal duty of 20% if applicable) in Year 
6 (2014 ) following the Agreem ent's entry into force.  Duties for 
products in Annex IIIc (vegetable and fruit) are also to be progressively phased out by 2014, except tomatoes and capsicum which will continue to have dutie s of 20% and 30% respectively of 
the applied rate in 2014 and in the years following (as well as the 
seasonal duty of 20%).  Duties for products in Annex IIId are to be 
progressively reduced but not eliminated at the end of the transition period, although any seasonal duty (20%) is to be eliminated immediately. 
Fish and fish products Immediate liberalization except for 
carp and trout (listed in Annex IV) 
which are subject to TRQs Immediate liberalization except for products in Annex V whose 
duties are to be liberalized gradua lly and eliminated in 2013 (except 
for 03019300 and 19022010 which will remain subject to duties of 
60% and 15% of the applied rate, respectively). 
Processed agricultural 
products Mutual imports of such products, as 
listed in Annex I of Protocol 1 are 
to be liberalized immediately Mutual imports of products listed in Annex I of Protocol 1 are to be 
liberalized immediately.  Tariffs on  products in Annex II of Protocol 
1 are to be either eliminated immediately or gradually by 2013 or reduced gradually and remain subjec t to a margin of preference of  
30, 40 or 100% of the MFN rate as of 2013 and onwards. 
 
Source:  WTO Secretariat, based on the Agreement. 
 
11. For fish and fish products, a review clause ca lls for further concessions, taking into account 
the volume of bilateral trade in agricultural and fi sh products and their partic ular sensitivities, of the 
Parties' agriculture and fisheries policies, of the role of agriculture and fisheries in the Serbian 
economy, of the consequences of WTO negotiations, and the accession of Serbia to the WTO.  The 
Parties shall examine in the Interim Committee, no la ter than three years from the entry into force of 
the Agreement, opportunities for granting each othe r further concessions with a view to greater 
liberalization of trade in these products, on a prod uct by product and orderly and reciprocal basis. 
12. Duties on imports of processed agricultural prod ucts are to be liberalized according to 
Article 25 of the Agreement and Prot ocol 1.  Changes to these schedul es or amendments to the duties, 
and the addition of products to these lists can be  made by the Interim Committee.  The Committee 
will also determine any increases in or abolition of tariff rate quotas and may replace duties in the 
Protocol by a regime based on the respective market prices in the Parties of agricultural products used 
in the manufacture of processed agricultural products s ubject to the Protocol.  It may also decide to 
reduce tariffs for processed agricultural products when duties on basic agricultural products are  WT/REG285/1 
 Page 7 
 
 
  reduced in bilateral trade6 or in response to reductions resulti ng from mutual concessions in processed 
agricultural products.  Products in Protocol 1 are s ubject to administrative arrangements to be adopted 
by the Parties and are to ensure equal treatment for all interested parties and be as simple and flexible 
as possible. 
(b) Liberalization of trade and tariff lines  
13. Tariff and trade liberalization for both Parties is  detailed in Tables II.2A and II.2B below.  
The EU's applied tariff in 2010 consisted of 9,443 lin es at the CN 8-digit level.  Of these, 89.7% 
(8,470) were subject to ad valorem  rates.  Of the remaining 973 lines, 551 were subject to specific 
duties, 247 compound duties and 59 mixed duties.  In addition, 116 lines are subject to other forms of 
duty.  For lines with mixed or compound duties, the Secretariat has used the ad valorem  part of the 
duty in its calculations.  In 2010, when the Agre ement entered into force, 2,337 lines or around a 
quarter of the EU's tariff, were already subject to duty free treatment on an MFN basis.  As a result of 
the Agreement an additional 6,870 lines (72.8% of the total), corresponding to 57.2% of the EU's 
imports from Serbia during 2007-09, became duty fr ee for imports from Serbia in 2010;  236 tariff 
lines, or 2.5% of the EU's tariff will continue  to be subject to duty for imports from Serbia, 
corresponding to 4% of its imports from Serbia during 2007-09. 
14. In 2009, when Serbia began to apply the Agreem ent, its applied tariff contained 9,975 tariff 
lines at the national 10-digit level.  Of these,  9,561 lines or 95.8% of the tariff was ad valorem , while 
391 and 1 lines respectively had compound and mixed rates.   In addition, 22 lines are subject to other 
forms of duty (seasonal duties).  For lines with mixe d or compound duties, the Secretariat has used the 
ad valorem  part of the duty in its calculations.  At the time when the Agreement entered into force for 
Serbia, around 1.1% or 109 lines were free of duties.  As a result of the Agreement, Serbia removed 
duties on 5,759 tariff lines for imports from the EU corresponding to an additional 57.7% of the tariff and 49.4% of its imports from the EU during 2007-09.  Further tariff liberalization is due to take place 
on an annual basis up to 2014.  At the end of im plementation Serbia would have removed duties on 
9,485 tariff lines (95.1% of the tariff), corres ponding to 99.2% of its imports from the EU during 
2007-09.   
Table II.2 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. EU 
Duty phase-out 
period Number of lines % of total lines in EU's 
tariff schedule Value of EU's imports from 
Serbia  
(2007-2009) 
in million Euros % of EU's total 
imports from Serbia 
2007-2009 
MFN duty free 
(2010) 2,337 24.7 1,466.8 38.7 
2010 6,870 72.8 2,165.8 57.2 
Remain dutiable 236 2.5 153.2 4.0 
Total 9,443 100.0 3,785.8 100.0 
 
Note: Based on HS 2007 nomenclature.  
Source :  WTO estimates based on data provided by EU. 
 
  
 
 
                                                      
6 Calculated on the part of the duty designated as the agricultural component, which corresponds to the 
agricultural products actually used in the manufacture of the processed agricultural product in question and 
deducted from the duties applied to  these basic agricultural products. WT/REG285/1 
Page 8 
 
 
  Table II.2 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Serbia 
Duty phase-out 
period Number of lines % of total lines in 
Serbia's tariff schedule Value of Serbia's imports from 
EU  
(2007-2009) in million Euros % of Serbia's total 
imports from EU 
2007-2009 
Applied duty free 
(2009) 109 1.1 215.5 1.8 
2009 5,759 57.7 5,947.2 49.4 
2010 3 0.0 0.0 0.0 
2011 733 7.3 1,307.0 10.8 
2012 6 0.1 9.3 0.1 
2013 1,319 13.2 2,847.1 23.6 
2014 1,556 15.6 1,618.2 13.4 
Remain dutiable 490 4.9 101.9 0.8 
Total 9,975 100.0 12,046.1 a 100.0 
a Value of imports excludes tariff lines beyond HS chapter 97. 
Note: Based on HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Serbia. 
 
(c) Liberalization by the EU 
15. Further details of tariff liberalization by the EU under the Agreement according to HS Section 
is given in Table II.3.  Following implementation of  the Agreement in 2010, the tariff lines which will 
continue to remain dutiable are all related to agri cultural and food products in  Sections IV (prepared 
foods), I (live animals and animal products) and II (vegetable products).  In Sections I and IV, the 
average preferential duty applying to those lines wher e tariffs are to remain will be lower than the 
corresponding MFN average (9.9% compared to 11.3% in Section I and 12.8% compared to 17.9% in 
Section IV). 
Table II.3 
EU: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section  MFN 
avg.%  Total No of 
lines  MFN 
2010  Preferential 
2010 Remain 
dutiable  Avg. Final 
Tariff 
(Dutiable)  
I Live animals and animal products 9.0 787 95 642 50 9.9 a 
II Vegetable products 5.8 526 123 375 28 b 
III Animal or vegetable fats and oils 6.0 124 21 103   
IV Prepared foods etc. 13.6 814 94 562 158 12.8 a 
V Minerals 0.8 234 172 62   
VI Chemicals and chemical products 4.3 1,170 293 877   
VII Plastics and rubber 4.6 300 60 240   
VIII Hides and skins 3.0 150 43 107   
IX Wood and articles 2.4 216 99 117   
X Pulp, paper etc. 0.0 210 210    
XI Textiles and textiles ar ticles 8.0 1,170 39 1,131   
XII Footwear, headgear 8.0 110 2 108   
XIII Articles of stone 3.9 257 34 223   
XIV Precious stones, etc. 0.7 63 48 15   
XV Base metals and base me tal products 1.9 1,003 509 494   
XVI Machinery 2.5 1,432 305 1,127   
XVII Transport equipment 4.8 286 31 255   
XVIII Precision equipment 2.5 339 92 247   
XIX Arms and ammunition 2.2 27 5 22   
XX Misc. manufactured articles 2.6 218 55 163   
XXI Works of art, etc. 0.0 7 7    
Total 4.9 9,443 2,337 6,870 236 11.2 
a Combination of ad valorem  and non ad valorem  duties 
b Contain non ad valorem  duties 
Note: For tariff lines subject to TRQs only  the out-of-quota duty is included in th e tariff-related  calculations; for tariffs with 
non ad valorem  components, only the ad valorem  part of the rate was included in th e calculation of the tariff averages.   
Based on the HS 2007 nomenclature. 
Source:  WTO estimates based on data provided by EU.  WT/REG285/1 
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  16. Chart II.1 shows the average of dutiable rates remaining once implementation is completed by 
HS Chapter.  The comparison is made with MFN duties corresponding to those lines with preferential 
rates of duty.  Once implementation is completed, th e EU will maintain preferential tariffs for imports 
from Serbia in HS Chapters 1-3, 7-8, 16-17 and 22.  In HS Chapters 1, 2 and 17, the average 
preferential duty will be lower than the corresponding  MFN average.  For HS Chapters 7, 8 and 22, 
the Agreement eliminates only the ad valorem  part of duties.  As ad valorem  equivalents are not 
available for the non ad valorem  part of the duty, it is not possible to assess the average remaining 
preferential duties for these Chapters. 
0 5 10 15 2022*171608*07*030201Chart II.1
EU:  Average of dutiable rates, by HS Chapter
HS Chapter  
Average rate of duty (%)
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations; for tariffs w ith non  
ad valorem components, only the ad valorem part of the rate was included in the calculation of the tariff averages.
* Preferential rates for HS chapters 7, 8 and 22 only contain non ad valorem duties.
Source : WTO Secretariat estimates, based on data provided by EU.MFN Preferential
 
 
(d) Liberalization by Serbia 
17. Further details of tariff liberalization by Serb ia under the Agreement according to HS Section 
are given in Table II.4 below.  At the end of implementation in 2014, the 490 tariff lines that are to 
remain dutiable are all in agriculture (Sections I-IV) with most lines remaining dutiable falling under 
Sections IV and I (prepared foods  and live animals and animal pr oducts, respectively).  The overall 
average duty for imports will be lower than the corresponding MFN average and ranges from 9.3% in 
Section II to 19% in Section IV. WT/REG285/1 
Page 10 
 
 
  Table II.4 
Serbia: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section  Applied 
rate 
avg.%  Total 
No of 
lines  Applied 
rate 
2009  
2009 
2010 
2011 
2012 
2013 
2014 
Remain 
dutiable  
Avg. Final 
Tariff 
(Dutiable)  
I Live animals and animal 
products 17.0 818 1 217    1 390 209 10.7 a 
II Vegetable products 13.2 563  330    1 179 53 9.3 a 
III Animal or vegetable 
fats and oils 6.8 124  97     23 4 12.2 a 
IV Prepared foods etc. 21.5 826  258   6  338 224 19.0 a 
V Minerals 1.8 241 11 201  29      
VI Chemicals and 
chemical products 2.8 1,216 13 964  146  65 28   
VII Plastics and rubber 5.4 314  139  71  83 21   
VIII Hides and skins 6.6 152  86  3  37 26   
IX Wood and articles 3.5 227  168  18  28 13   
X Pulp, paper etc. 4.7 221  128  42  17 34   
XI Textiles and textiles 
articles 12.3 1,174 38 1,133 3       
XII Footwear, headgear 14.3 111    25  36 50   
XIII Articles of stone 9.4 266  56  59  90 61   
XIV Precious stones, etc. 9.7 63  7  47  3 6   
XV Base metals and base 
metals products 4.8 1,047 34 556  98  241 118   
XVI Machinery 5.4 1,669 1 927  129  461 151   
XVII Transport equipment 5.5 337 11 177  22  82 45   
XVIII Precision equipment 2.7 352  309  6  37    
XIX Arms and ammunition 24.1 27       27   
XX Misc. manufactured 
articles 9.6 220  6  38  130 46   
XXI Works of art, etc. 5.0 7      7    
Total 8.7 9,975 109 5,759 3 733 6 1,319 1,556 490 14.3 
 
a Combination of ad valorem  and non ad valorem  duties 
 Note: For tariff lines subject to TRQs only the out-of-quota dut y is included in the tariff-related calculations; for tariffs w ith 
non ad valorem  components, only the ad valorem  part of the rate was included in th e calculation of the tariff averages.   
Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data provided by Serbia. 
 
18. Chart II.2 shows the average of dutiable rates remaining once implementation is completed by 
HS Chapter.  The comparison is made with MFN duties corresponding to those lines with preferential 
rates of duty.  At the end of implementation Serb ia will maintain duties for imports from the EU for 
products in HS Chapters 1-11, 15-17, 19-22 and 24.  With the exception of Chapter 24, where the average preferential tariff will be the same as the average MFN rate, the average preferential duty will 
be lower than the corresponding MFN average for all the other chapters with the greatest margins of 
preference found in Chapters 16, 19, 21, 1 and 2.  WT/REG285/1 
 Page 11 
 
 
  0 5 10 15 20 25 30 3524222120191716151110090807060504030201Chart II.2
Serbia:  Average of dutiable rates, by HS Chapter
HS Chapter  
Average rate of duty (%)
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations; for tariffs w ith non 
ad valorem components, only the ad valorem part of the rate was included in the calculation of the tariff averages.
Source : WTO Secretariat estimates, based on data provided by Serbia.Applied rate Preferential
 
 
(e) Tariff rate quotas 
19. The EU applies tariff rate quotas on imports from Serbia for "baby beef" products, fish 
(trout and carp), sugar and sugar pr oducts and wine.  Imports of baby beef products within an annual 
quota of 8,700 metric tonnes (MT) enter the EU mark et at a preferential duty rate of 20% of the MFN 
rate (both of the ad valorem  and non- ad valorem  parts of the duty).  Trout and carp are subject to a 
duty free tariff rate quota of, respectively, 15 and 60 MT annually.  Above these quantities, imports 
are charged 90% of the MFN duty in the first year of entry into force of the Agreement (2010), 
followed by 80% in 2011 and 70% for every year th ereafter.  Imports of sugar and sugar products 
within an annual quota of 180,000 MT enter duty free; imports above this quantity are subject to the 
MFN rate.  The annual quota limits for duty free imports of wine under HS 220410 and HS 220421 is 
53,000 Hl and for HS 220429 up to 10,000 Hl .  The MFN rate applies above these annual quota 
amounts (Annex Table AII.1 gives more detail on the EU's TRQs .  Serbia allows duty free imports 
(HS 220410 and 220421) of wine from the EU within an annual quota of 25,000 Hl.  Imports above 
this quota enter Serbia at the MFN rate (see Table AII.2). 
 
  WT/REG285/1 
Page 12 
 
 
  2. Import restrictions and prohibitions 
20. The Parties agree to abolish quantitative restri ctions on their mutual imports and measures 
having equivalent effect on industrial, agricultural and fishery products as at the entry into force of the 
Agreement (Article 20(2) and 21(4) respectively fo r industrial products, Articles 26(1) and 27(1) for 
agricultural products and 29(1) and 30(1) for fishery products).  According to the Parties, although the 
commitment to abolish quantitative restrictions for processed agricultural products is not explicitly 
mentioned in the Agreement, quantitative restri ctions have already been abolished under the 
Agreement for agricultural and industrial products. 
3. Rules of origin 
21. Protocol 3 of the Agreement lays down the rules of origin for the application of its provisions 
to mutual trade between the Parties.  Products are cons idered to be originating in the EU or Serbia if 
they are wholly obtained in the EU or Serbia7;  or if they are obtained in the EU or Serbia 
incorporating materials which have not been wholly obtained there, provided that such materials have 
undergone sufficient working or processing in the EU.8  If a product acquires originating status by 
fulfilling these conditions, the conditions applicable to the product in which it is incorporated do not 
apply to it, and no account shall be taken of the non- originating materials which may have been used 
in its manufacture.  Notwithstanding these conditions , non-originating materials which are not to be 
used in the manufacture of a product according to these conditions, may be used provided that their 
total value does not exceed 10% of the ex-works pr ice of the product;  and any of the percentages 
listed for the maximum value of non-originating ma terials are not exceeded.  This exception to the 
conditions does not apply to prod ucts in HS Chapters 50-63. 
22. Operations considered to be insufficient working or processing are listed in Article 7 of 
Protocol 3 and include operations to ensure that  products remain in good condition during transport 
and storage;  breaking up and assembly of packages;   washing, cleaning and removal of dust, oxide 
oil, paint or other coverings.  All such operations carried out in either of the Parties on a given product 
shall be considered together when determining wh ether the working or processing undergone by that 
product is to be regarded as insufficient. 
23. Articles 3 and 4 of Protocol 3 permit diagona l cumulation between the EU, Serbia or any 
country or territory participating in the EU's St abilization and Association process and Turkey for the 
materials to which Decision 1/95 of the EU-T urkey Association Council of 22 December 1995 
applies, provided that the working or processing ca rried out in the Parties goes beyond the operations 
referred to in Article 7 of Protoc ol 3 above.  In cases where the working or processing carried out in 
                                                      
7 Products that are considered to be wholly obtained in the territory of either the EU or Serbia are:  
mineral products extracted from their soil or from their seabed;  vegetable products harvested there;  live 
animals born and raised there and products from these animals;  products obtained by hunting or fishing there;  
products of sea fishing and other products taken from the sea outside the territorial waters of the Parties by their 
vessels and products made aboard their factory ships exclusively from such products;  used articles corrected 
there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;  
waste and scrap resulting from manufacturing operations conducted there;  products extracted from marine soil 
or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;  and 
goods produced there exclusively from the products mentioned above (Article 5 of Protocol 3). 
8 Sufficient working or processing is considered to have been achieved when the conditions set out in 
Annex II to Protocol 3 are fulfilled. Anne x II contains the List of  working or processing, necessary to be carried 
out on all non-originating materials in order to obtain an originating status of the final product.  There are 
several groups of rules in the List, such as: change of tariff heading rule, percentage rule (the percentage of 
value for non-originating materials used in the manufacture goes between  30% and 50% of the ex-works price 
of the final product) requirement that the value of all the materials used in the manufacture of the product do not 
exceed between), production ru le and combination of above mentioned rules.    WT/REG285/1 
 Page 13 
 
 
  the EU/Serbia does not go beyond the operations referre d to in Article 7, the product obtained is 
considered as originating in the EU/Serbia only wher e the value added there is greater than the value 
of the materials used originating in any one of th e other countries or territories referred to above with 
which cumulation is permitted.  If not, the product ob tained shall be considered as originating in the 
country which accounts for the highest value of originating materials used in the manufacture of the 
product in the EU/Serbia.  Products, originating in one of the countries or territories with which 
cumulation is permitted, which do not undergo any working or processing in the Community, retain 
their origin if exported to one of these countries or territories. 
24. Cumulation only applies if a preferential trade ag reement in accordance with Article XXIV of 
the GATT is applicable between the countries or  territories involved in the acquisition of the 
originating status and country of destination;  ma terials and products have acquired originating status 
by the application of rules of origin that are identical to those in the Agreement;  and notices 
indicating the fulfilment of the necessary require ments to apply cumulation have been published in 
the Official Journal of the EU (C series) and in Serbia according to its procedures.9  The Agreement 
excludes products in Annex V of Protocol 3 (10 tariff lines in Chapters 17, 18, 19, 21 and 33) 
from cumulation.  Under Joint Declarations by the Parties, Serbia will accept products in 
HS Chapters 25-97 originating in Andorra and all products originating in San Marino as originating in 
the EU. 
25. In accordance with the principle of territoriality  (Article 12 of Protocol 3), the conditions for 
acquiring originating status must be fulfilled wit hout interruption in the EU or in Serbia. Where 
originating goods exported from the EU or from Serbia to another country (non-Party) are 
re-imported, they must be considered as non-orig inating, unless it can be demonstrated to the 
satisfaction of the customs authorities that reim ported goods from a non-Party are the same as goods 
that were exported and have not  undergone any operation beyond that necessary to preserve them in 
good condition while in that country or while bei ng exported.  The originating status under the 
Protocol will not be affected by working or pr ocessing outside the Parties on materials exported by 
the Parties and subsequently reimported, provided that  the materials are wholly obtained in the Parties 
or have undergone working or processing beyond the ope rations referred to in Article 7 above before 
being exported;  it can be demonstrated to the satisfaction of the customs authorities that the 
reimported goods have been obtained by working or processing the exported materials;  and the total 
value added acquired outside the Parties does not exceed 10% of the ex-works price of the end 
product for which originating status is being claimed.10  Any working or processing of the kind 
covered by the provisions of Article 12 and done outside the EU or Serbia shall be done under the 
outward processing arrangements, or similar arrangeme nts.  The provisions of paragraphs 3 and 4 of 
Article 12 applying to the originating status of re imported goods do not apply to HS Chapters 50-63. 
26. In accordance with the principle of direct tran sport (Article 13 of Protocol 3), preferences 
provided under the Agreement only apply to goods di rectly shipped between the Parties or through the 
territories of the other countries and territories to  which cumulation applies (see above).  However, 
transhipment and warehousing in other territories is  permitted for products th at constitute one single 
consignment, subject to the surveillance of the customs authorities in the country of transit or 
warehousing and do not under go operations other than unloading, re loading or any operation to keep 
                                                      
9 Cumulation under the Agreement will apply from the date indicated in the notice in the Official 
Journal of the EU.  In this regard, th e Parties shall provide each other with details of the preferential agreements, 
including their dates of entry into force and the corresponding rules of origin. 
10 While the general conditions for acquiring originatin g status do not apply to working or processing 
outside the Parties, where in the list in Annex II to the Protocol, a rule setting a maximum value for all the non-
originating materials incorporated determines the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the Party concerned, taken together with the total value 
added outside the Parties by applying the provisions of Article 12 of Protocol 3 shall not exceed the stated 
percentage (Article 12(4)). WT/REG285/1 
Page 14 
 
 
  them in good condition (Article 13(1) of Protocol 3).11  Originating products may be transported by 
pipeline across the territories of third parties.  Orig inating products that are u sed for exhibitions in a 
third country and sold subsequently for import into the Parties or the other countries or territories in Articles 3 and 4 of the Agreement may also bene fit from the Agreement provided that the exporter 
demonstrates the products have been sent from one of  the Parties to the third country and have been 
consigned in that country during the exhibition and no t used for any other purpose;  and that they have 
been sold or otherwise disposed by the exporter to a person in one of the Parties (Article 14). 
27. Non-originating materials used in the manufactur e of products originating in the Parties or 
any of the other countries or territories referred to  in Articles 3 and 4 of the Agreement  are not 
entitled to drawback or exemption from customs duty of any kind (Article 15). 
28. Products originating in the EU, on import into Serbia, and products originating in Serbia, on 
import into the EU, shall benefit from the Agr eement upon submission of either a movement 
certificate EUR.1 or "invoice declaration" (authorized exporter - without value limit or any other 
exporter- for goods whose value does not exceed €6,0 00).  Details about the information to be 
provided to prove origin, including procedures to i ssue a movement certificate EUR.1, validity of and 
exemptions from, proof of origin as well as othe r supporting documents required are provided under 
Title V (Articles 16-31).
12  The Parties will provide mutual assistance through their competent 
customs administrations in checking the authenticity  of the movement certificates EUR.1 or the 
invoice declarations and verifying the information provided. 
29. Proof of origin is to be verified at random or when the customs authorities of the importing 
Party have reasonable doubts about the authenticity of the origin of the imported products or other 
requirements of the Protocol (Article 33 of Protoc ol 3).  They will have the right to call for any 
evidence required for verification and to inspect the exporter's accounts or any other relevant 
information.  The verification result shall be give n to the customs authorities requesting it as soon as 
possible and must indicate clearly whether the documen ts are authentic and if the products are to be 
considered as originating in the Parties or anot her country or territory with which cumulation is 
permitted and fulfil other requirements of the Protoc ol.  If there is no response within 10 months of 
the request for verification or if the information in the response is insufficient to determine the 
authenticity of the document or the origin of th e products, the requesting customs authorities shall 
refuse entitlement to preferences, ex cept in exceptional circumstances (Article 33).  Any disputes on 
the verification procedures under the Protocol whic h cannot be settled between the Parties' customs 
authorities shall be referred to the Interim Comm ittee.  The settlement of disputes between the 
importer and the customs authorities of the importing country shall be resolved under the legislation 
of the importing country (Article 34).  Those who provide documents that contain incorrect 
information are subject to penalti es under the Agreement (Article 35). 
30. Administrative cooperation is considered to be essential for the implementation and control of 
preferential treatment provided for the free movement  of goods, and failure to do so could lead to 
temporary suspension (up to six months, renewabl e) of relevant preferential treatment of the 
product(s) concerned in accordance with Article 46.   
31. Special conditions apply to products traded w ith the EU territories of Ceuta and Melilla to 
qualify for preferential treatment (Article 38).  
                                                      
11 Documents supporting these conditions must be supplied to the customs authorities of the importing 
country as described in paragraph 2 of Article 13 of Protocol 3. 
12 The customs authorities will facilitate this by pr oviding each other with specimen impressions of 
official stamps and addresses of the customs authoritie s responsible for verifying certifications and invoice 
declarations.  WT/REG285/1 
 Page 15 
 
 
  4. Export duties and charges, and quantitative restrictions 
32. Any customs duties or quantitative restrictions  on exports and charges or measures having 
equivalent effect in trade between the Parties will be abolished by the parties upon the entry into force 
of the Agreement (Article 22).  Pr oducts exported to the territory of one of the Parties may not benefit 
from repayment of internal indirect tax in excess of  the amount of indirect tax already imposed on 
them (Article 37). 
C. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Sanitary and phytosanitary measures 
33. The Agreement has no provisions on sanitary and phytosanitary measures. 
(b) Technical barriers to trade 
34. The Agreement has no provisions on technical barriers to trade. 
2. Safeguard mechanisms 
(a) Global safeguards 
35. Safeguard actions are permitted in accordan ce with the provisions of Article XIX of 
GATT 1994 and the WTO Agreement on Safeguards (Article 41.1). 
(b) Bilateral safeguards 
36. Notwithstanding the provisions above, if any product of one Party is imported into the 
territory of the other Party in such increased quantities and under such conditions as to cause or 
threaten to cause serious injury to the domestic i ndustry of like or directly competitive products in the 
territory of the importing Party;  or serious disturbances in any sector of the economy or difficulties 
which could bring about serious distortions in th e economic situation of a region of the importing 
Party, the importing Party may take appropriate bila teral safeguard action which shall not exceed that 
strictly necessary to remedy the economic problems ar ising from the application of the Agreement.  
The measure should suspend the increase or the reduc tion of the margins of preference provided for 
by the Agreement for the product concerned, and not be higher than the basic duty for that product.  
The safeguard should also contain elements progressiv ely leading to its elimination at the end of the 
set period at the latest, and in any case not exceeding two years extendable in very exceptional circumstances by two years.  Bilateral safeguard s cannot be applied on a product that has been 
previously subject to a bilateral safeguard for a time equal to that during which such a measure had 
been previously applied, provided that the period of non-application is at least two years since the 
expiry of the measure. 
37. In most cases, except under exceptional circumstances, before imposing a safeguard, the 
Parties must supply the Interim Committee with a ll relevant information required for a thorough 
examination of the situation, with a view to seeki ng a solution acceptable to the Parties.  If the Interim 
Committee or the exporting Party have not resolved the problems or no other satisfactory solution has 
been reached within 30 days of the matter bei ng referred to the Committee, the importing Party may 
take the appropriate measures to remedy the probl em in accordance with the Agreement.  When 
selecting the safeguard, priority must be given to those which least disturb the functioning of the WT/REG285/1 
Page 16 
 
 
  arrangements laid out in the Agreement.13  Any safeguards taken in accordance with Article XIX of 
the GATT 1994 and the WTO Agreement on Safeguards must preserve the margin of preference 
between the Parties.  In exceptional and critical circumstances, which make  prior information or 
examination impossible, the Party may, take provisional measures as necessary, and must inform the 
other Party immediately thereof.  All safeguard s must be notified immediately to the Interim 
Committee and be subject to periodic consultations in  the Committee with a view to establishing a 
timetable for removing them as soon as circumstances permit.  
(c) Special safeguards 
38. Notwithstanding other provisions of the Agreem ent, in particular on safeguards, given the 
particular sensitivity of the agriculture and fisheri es markets, if products orig inating in one Party and 
subject to liberalization commitments under the Agre ement cause serious disturbance to the market or 
domestic regulatory mechanisms in the other Party,  the Parties shall consult immediately to find an 
appropriate solution (Article 32).  Pending a solu tion the Party concerned may take the appropriate 
measures it deems necessary.  More specifically, if  imports originating in Serbia of products in 
Annex V of Protocol 3 (products excluded from cumulation under Articles 18 and 19) cumulatively 
reach 115% of the average volume of imports over the three previous calendar years, the Parties shall 
within five working days, consult to analyse and ev aluate the trade patterns of the products into the 
EU and where necessary find appropriate solutions to avoid trade distortion caused by these imports.  
If the volume of imports originating in Serbia of  these products cumulatively increase by over 30% 
during a calendar year, compared to the average of  the three previous calendar years, the EU may 
suspend preferential treatment for the products concerned.  In such cases, the EU will notify the 
suspension to the Interim Committee w ithin five working days and sha ll consult with Serbia to agree 
on measures to avoid trade distortions in trade of  the products listed in Annex V of Protocol 3. 
39. Safeguards are also permitted in the event of a critical shortage, or threat thereof, of 
foodstuffs or other products essential to the exporti ng party;  or re-export to a third country of a 
product against which the exporting Party maintains quantitative export restrictions, export duties or 
measures or charges having equivalent effect, which give rise or are likely to give rise to major 
difficulties for the exporting Party (Article 42).  In th e selection of measures to be taken, priority must 
be given to those which least disturb the functioni ng of the Agreement.  The measures shall not be 
applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where 
the same conditions prevail, or a disguised restri ction on trade and shall be eliminated when the 
conditions no longer justify them. 
(d) Balance of payments 
40. Under Article 69, while endeavouring, where po ssible to avoid the imposition of restrictions 
for balance of payments purposes, where there are serious balance of payments difficulties, any Party 
may, in accordance with the conditions establishe d under the WTO Agreement, adopt restrictive 
measures, including on imports, which shall be of limited duration and may not go beyond that strictly 
necessary to remedy the balance of payments situat ion.  A Party adopting such measures shall inform 
the other Party forthwith and present a timetable fo r their removal.  The safeguard provision does not 
apply to transfers related to investment and in particular to the repatriation of investment or 
re-investment or any kind of revenues resulting therefrom. 
 
 
 
                                                      
13 According to the Parties "least disturb" in this context is having the lowest possible effect on bilateral 
trade.  WT/REG285/1 
 Page 17 
 
 
  3. Anti-dumping and countervailing measures 
41. Trade defence actions may be taken under the Ag reement.  If one of the Parties finds that 
dumping and/or countervailable subsid ization is taking place in trade with the other Party, it may take 
appropriate action against these practices in acco rdance with the WTO Agreement on Implementation 
of Article VI of the GATT 1994 or the WTO Agreement on Subsidies and Countervailing Measures 
and its respective internal legislation. 
4. Subsidies and State-aid 
42. Article 43 of the Agreement calls for Serbia to  progressively adjust any state monopolies of a 
commercial character to ensure that three years after the entry into force of the Agreement, no 
discrimination remains regarding the conditions under which goods are procured and marketed 
between nationals of the Parties.  By the end of the third year following entry into force of the Agreement, Serbia will apply to public undertakings  to which special and exclusive rights have been 
granted (which do not include the possibility of im posing quantitative restrictions or measures having 
equivalent effect on imports from the EU), the principles set out in the EC Treaty, with particular reference to Article 86 (Article 74). 
43. Furthermore any State aid which distorts or threatens to distort competition by favouring 
certain undertakings or certain products is incompa tible with the proper functioning of the Agreement 
(Article 73(1)(iii)).  This does not however apply to agriculture and fisheries (Chapter II of the 
Agreement) including products in HS Chapters 1-24 and Annex I, paragr aph I, (ii) of the 
WTO Agreement on Agriculture.  Protocol 4 estab lishes rules on State aid for the steel industry 
(see below). 
44. To implement Article 73(1)(iii), Serbia must establish an operationally independent authority 
with the necessary powers within one year of entry in to force of the Agreement (Article 74(4)).  In 
accordance with its Law on State Aid,  which entered into force on 1 January 2010 Serbia established, 
in March 2010, the State Aid Control Commission.  The Authority will have inter alia  the powers to 
authorize State aid schemes and individual aid grants in conformity with EU competition rules as 
detailed in Article 73(2) and to or der the recovery of State aid that has been granted unlawfully.  
During the first five years after entry into force of  the Agreement, any public aid granted by Serbia 
shall be assessed taking into account the fact that Serbia shall be rega rded as identical to those areas 
of the EU described in Artic le 87(3)(a) of the EC Treaty.
14  Within four years of the Agreement's 
entry into force the Serbian Authority and th e European Commission will jointly evaluate the 
eligibility of the regions of Serbia and the maximu m aid intensities in relation thereto to draw up the 
regional aid map on the basis of the relevant Community guidelines. 
45. Both Parties will ensure transp arency in State aid, including through a regular annual report 
(the Serbian Commission adopted the report for 200 9) or equivalent, based on the methodology and 
the presentation of the Community Survey on State aid and upon request, information on particular 
individual cases of State aid (Article 73(6)).  If one of  the Parties considers that a particular practice is 
incompatible with the terms of 73(1), it may take appropriate measures after consultation within the 
Interim Committee or after 30 working days follow ing the referral for consultations.  Nothing in 
Article 73 shall prejudice or affect the taki ng of countervailing measures in accordance with 
GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures and the respective 
internal legislation of the Parties. 
                                                      
14 Article 87(3)(a) of the EC Tr eaty (ex Article 92(3)(a)) lists the following as compatible with the 
common market:  aid to promote the economic development of areas where the standard of living is abnormally 
low or where there is serious underemployment. WT/REG285/1 
Page 18 
 
 
  5. Other regulations 
(a) Customs-related procedures 
46. Administrative cooperation is considered essen tial for the implementation and control of 
preferential treatment in goods and the Parties unde rline their commitment to combat irregularities 
and fraud in customs and related ma tters (Article 46).  Under Article  99 they establish cooperation on 
customs matters with a view to guaranteeing complia nce with the trade provisions to be adopted and 
to achieve the approximation of Serbia's customs sy stem with that of the EU thereby ensuring the 
liberalization foreseen by the Agreement and the gradual approximation of Serbian customs legislation with the acquis Communautaire .  
47. Protocol 5 on mutual administrative assistance in  customs matters covers assistance to any 
administrative authority having competence to apply the Protocol and in the areas of the Parties' competence, in the manner and under the conditions sp ecified in the Protocol to ensure the correct 
application of customs legislation, especially by pr eventing, investigating and combating operations in 
breach of that legislation.  It shall not prejudice the rules governing mutual assistance in criminal 
matters or cover information obtained under powers ex ercised at the request of a judicial authority, 
except where communication of such information is au thorized or to recover duties, taxes or fines. 
48. At the request of the designated administrative au thority ("applicant authority"), the requested 
authority must provide all relevant information to enable it to ensure that customs legislation is 
correctly applied.  The requested authority may also  be required to ensure surveillance of natural or 
legal persons, places where goods are stocked, goods being transported, or means of transport, if there 
are reasonable grounds to believe that they are bein g used to, or are involved in, operations in breach 
of customs legislation.  Spontaneous assistance can also be provided on the Parties' own initiatives if 
they believe that they have information on a breach in customs legislation.
15  The results of the 
enquiry by the requested authority are to be provi ded in writing, with rele vant documents, certified 
copies or other items.  Any information between th e authorities on the investigation is to remain 
confidential, depending on the rules applied by the Pa rties.  Where there are judicial or administrative 
proceedings in cases of a breach of customs legislation, information obtained and documents 
consulted may be used upon notifying the informa tion providing authority.  Under Article 9, 
assistance may be refused or provid ed under certain conditions where a Party believes that it is likely 
to prejudice the sovereignty of Serbia or the EU Member State that has been requested to provide 
assistance; or be likely to prejudice public policy, s ecurity or other essential interests, in particular 
those involving the provision of personal data;  or violate an industrial, commercial or professional 
secret.  Assistance may also be postponed on the grounds that it would interfere with an ongoing 
investigation, prosecution or proceeding.  
49. The Protocol is to be implemented by the Parties' respective customs authorities who will 
decide on all practical measures and arrangements necessary for its application, taking into 
consideration the rules in force, particularly for data protection.  The Par ties will consult and keep 
each other informed of the detailed rules and impl ementation procedures adopted.  The provisions of 
the Protocol will not affect their obligations under any other international ag reement or convention;  
be deemed complementary to any mutual assistance ag reements that have been or may be concluded 
between Serbia and individual EU Member States although in cases of incompatibility of provisions, 
the Protocol will take precedence;  and not a ffect EU provisions on the communication of any 
information under the Protocol, which could be of in terest to the EU, between the competent services 
                                                      
15 The information to be provided includes any documents or decisions emanating from the applicant 
authority and falling within the scope of the Protocol, to an  addressee residing or esta blished in the territory of 
the requested authority.  WT/REG285/1 
 Page 19 
 
 
  of the European Commission and Member States.  Any questions relating to the applicability of the 
Protocol will be discussed and reso lved in the Interim Committee. 
(b) Other 
(i) Intellectual property rights 
50. The Agreement's provisions on intellectual prope rty rights are in Articles 75 which confirms 
the importance of adequate and effective protecti on and enforcement of intellectual, industrial and 
commercial property rights;  33 which provides pr otection of geographical indications (GIs) for 
agricultural and fishery products and foodstuffs othe r than wine and spirit drinks;  and Annex II to 
Protocol 2 on the reciprocal recognition, protection and control of wine, sprit drinks and aromatised 
wine names. 
51. Under Article 75 the Parties agree to grant to each others' companies and nationals, in respect 
of the recognition and protection of intellectual, i ndustrial and commercial property, treatment no less 
favourable than that granted by them to any third pa rty under a bilateral agreement.  Serbia shall take 
the necessary measures to guarantee no later than five years after the Agreement enters into force, a 
level of protection of intellectual, industrial and co mmercial property rights, similar to that existing in 
the EU including effective means of enforcing these ri ghts.  It will also accede during this period to 
the multilateral conventions under Annex VI of th e Agreement.  The Inte rim Committee may also 
oblige Serbia to accede to specific multilateral Conventi ons in this area.  Any problems in intellectual, 
industrial or commercial property ri ghts affecting trade shall be re ferred urgently to the Interim 
Committee at the request of either Party, with a view to reaching a mutually satisfactory solution. 
52. Under Article 33 (1), Serbia sh all provide protection for the GIs of the EU registered under 
Council Regulation (EC) No 510/2006 of 20 March 2 006 on the protection of GIs and designations of 
origin for agricultural products and foodstuffs, in accordance with the terms of Article 33 of the 
Agreement.  Serbia shall prohibit any use in its terr itory of names protected in the EU for comparable 
products not complying with the specifications of th e GI even where the true geographical origin of 
the product is indicated, the GI in question is used in translation, the name is accompanied by terms 
such as "kind", "type", "style", "imitation", "method", or other similar expression (Article 33(2)). 
53. GIs registered in Serbia shall be eligible for registration in the EU under the conditions in the 
Council Regulation.  Serbia shall refuse registra tion of trademarks whose use corresponds to the 
situations in Article 33(2).  Trademarks, the use of  which corresponds to the situation referred to in  
Article 33(2) that have been registered in Serb ia or established by use, shall no longer be used 
five years after the entry into force of the Agreemen t.  However, this shall not apply to trademarks 
registered in Serbia and trademarks establishe d by use which are owned by nationals of third 
countries, provided that they are not of a nature to deceive in any way the public of the quality, 
specification and the geographical origin of the goods.   Serbia shall ensure that any use of the GIs 
protected under Article 33(1) as terms customary in co mmon language as the common names for such 
goods in Serbia shall cease at the latest five years af ter the entry into force of the Agreement.  It shall 
also ensure that goods exported from its territory five  years after the entry into force of the Agreement 
do not infringe the provisions of Article 33 and ensu re the protection provided by paragraphs 1-6 of 
Article 33 on its own initiative at the request of an interested party. 
54. Annex II to Protocol 2 provides for mutual non- discriminatory and reciprocal recognition, 
protection and control of names refe rred to in Article 2 of the Protoc ol under the terms of Annex II.  
The Parties commit to take all general and specifi c measures necessary to meet the obligations and 
objectives laid down in the Annex.  Article 4 protects  references to the name of the Member State of 
the EU in which the wine, spirit drink and aromatized  wine originates, or other names to indicate the WT/REG285/1 
Page 20 
 
 
  Member States and the GIs and traditional expr essions listed in Appendices 1 and 2 respectively.16 
With respect to wines, spirit drinks and aromatiz ed wines originating from Serbia, article 4 protects 
references to the name "Serbia", or other name indica ting that country, as well as GIs listed in Part B 
of Appendix 1 and 2.17  The Parties are to take all measures necessary, for the reciprocal protection of 
the names referred to in article 4 (a) and (b),  and shall use the appropriate legal means as in 
Article 23 of the TRIPS Agreement to ensure effec tive protection and prevent GIs from being used to 
identify wines, spirit drinks and aromatized wines not covered by the indications or the descriptions 
concerned (Article 6(3) of Annex II of Protocol 2).  The protection shall prohibit any use of protected 
names for wines, spirit drinks and aromatized wi nes which do not originate in the geographical area 
indicated, even when the true origin  of the wine, spirit drink or aromatized wine is indicated, the GI in 
question is used in translation, the name is acco mpanied by terms such as "kind", "type", "style", 
"imitation", "method", or other similar expressions, or when the protected name is used in any way for 
products under HS 20.09 (Article 6(5)).  Fo r GIs homonymous with those in Appendix 1 the 
provisions are identical to those under Article 23.3 of  the TRIPS Agreement (Articles 6(6) and 6(7)). 
55. The Agreement does not oblige a Party to protect a GI of the other Party listed in Appendix 1 
which is not, or ceases to be, protected, or has fallen into  disuse, in its country of origin (Article 6(9)).  
As foreseen by Article 24(6) of the TRIPS Agreem ent, once the Agreement enters into force, the 
Parties shall no longer deem that the protected GI  names in Appendix 1 are customary in the common 
languages of the Parties as a common name for wines, spirit drinks and aromatised wines 
(Article 6(10)). 
56. Article 7 of the Protocol ensures that the trad itional expressions in Appendix II to the Protocol 
shall not be used for the description or presentation of wine in the EU or Serbia;  or for the description 
or presentation of wine originating in the EU or Serbia  other than in relation to wines of the origin and 
the category and in the language listed in Appendi x 2 and under the conditions provided for by the 
laws and regulations of the Parties.  The Parties shall take necessary measures to protect traditional 
expressions in Article 4 of the Protocol and u sed for the description and presentation of wines 
originating in the Parties.  To that end they sha ll provide appropriate legal means to ensure effective 
protection and prevent traditional expressions from bei ng used to describe wine s not so entitled, even 
where accompanied by expressions su ch as "kind", "type", "style", "imitation", "method" or the like. 
57. As in Article 22.3 of the TRIPS Agreement, Artic le 8 of the Protocol permits the Parties to 
refuse the registration of a trademark for a wine, spirit  drink or aromatised wine which is identical or 
similar to or contains or consists of a reference to  a GI protected under Article 4 of the Protocol, with 
wine, spirit drink or aromatised wine not having this  origin and not complying with the relevant rules 
governing its use.  The Parties may also refuse th e registration of a trademark for a wine which 
contains or consists of a traditional expression prot ected under the Agreement, if the wine is not one 
to which the traditional expression is reserved as indicat ed in Appendix 2.  The Parties will also take 
the necessary steps to ensure that for exports of wines spirit drinks and aromatised wines originating 
in the Party, the protected GIs and traditional expressi ons referred to in Articles 4(a) and 4(b) are not 
used to describe and present such products whic h originate in the other Party (Article 9). 
58. To ensure the proper functioning of these pr ovisions, the Agreement will establish a Working 
Group under the auspices of the Sub-Committee on Agri culture in accordance with Article 123 of the 
Agreement.  At the first  meeting of the EU-Serbia joint subcommittee and Enhanced Permanent 
Dialogue sector meeting on Agriculture and Fisheri es on 16/17 September 2010, the Parties agreed to 
forgo the immediate setting up of a working group,  opting instead, that all matters concerning the 
                                                      
16 Appendix 1 Part A(a) wine, (b) spirit drinks and (c) aromatised wines;  and Appendix 2 traditional 
expressions. 
17 Appendix 1 Part B (a) wine, (b) spirit drinks and (c) aromatized wines;  and Appendix 2 traditional 
expressions.  WT/REG285/1 
 Page 21 
 
 
  implementation and functioning of th e Wine Protocol be discussed directly in the framework of the 
sub-committee on Agriculture and Fisheries.  The Pa rties under Article 11 will also maintain contact 
on all matters concerning the implementation of the Agreement, mutually decide on any changes to 
the Appendices and inform each other of any planned ch anges in regulations with implications for the 
wine, spirit and aromatized wine sector.18  Article 14 authorizes the Parties to consult if one of them 
considers that the other has failed to fulfil an obligation under the Annex. 
(ii) Competition policy 
59. Article 73 recognizes that the following are inco mpatible with the proper functioning of the 
Agreement:  (i) all agreements be tween undertakings, decisions by associations of undertakings and 
concerted practices between undert akings, which have as their object or effect, the prevention, 
restriction or distortion of competition;  (ii) abu se by one or more undertakings of a dominant position 
in the territories of the Parties as a whole or in a subs tantial part thereof;  and (iii) any State aid which 
distorts or threatens to distort competition by favouring certain undertakings or products.  Such 
practices are to be assessed on the basis of EU competition criteria, particularly Articles 81, 82, 86 
and 87 of the EC Treaty and interpretive in struments adopted by the EU institutions. 
60. The Parties are to establish an operationally inde pendent authority with the powers needed to 
fully apply (i) and (ii) above, regarding private a nd public undertakings to which special rights have 
been granted.  The operationally independent author ity in Serbia is the Commission for the Protection 
of Competition  established  pursuant to the Law on Protection of  Competition (`Official Gazette of 
RS`, nos. 79/05 and 51/09 ).  Article 74 further requires that follo wing three years of entry into force 
of the Agreement, Serbia shall apply to such undert akings the principles set out in the EC Treaty with 
particular reference to Article 86.  During the fi rst three years following the Agreement's entry into 
force, these special rights for public undertakin gs will not include the possibility to impose 
quantitative restrictions or measures having an equiva lent effect on imports from the EU by Serbia.  
These special rights include exclusive rights to perfo rm particular activities of general interest 
including in the following fields: production, transmission, and distribution of electricity;  coal 
production and processing; exploratio n, production, processing, transport and distribution of oil and 
natural and liquid gas; trade in oil and petrol eum products; railway, postal and air traffic; 
telecommunications; publication of the Official Gaze tte of the Republic of Serbia;  publication of 
textbooks;  using, managing, prot ecting and developing goods of ge neral interest (water, roads, 
mineral raw materials, forests, navigable rivers, lakes, coasts, spas, wildlife), and communal activities.  Regarding trade privileges, the Oil Industry of Se rbia (NIS) was the only company with the right to 
import basic oil derivatives until 31 December 2010.  The application of (iii) is discussed in 
Section C.4. above. 
D. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
1. Steel 
61. In addition to Article 73 (1)(iii), which prohibits any State aid which distorts or threatens to 
distort competition by favouring certain undertakin gs or products, under Pr otocol 4 the Parties 
recognize that Serbia needs to address promptly an y structural weaknesses in its steel industry to 
ensure its global competitiveness and permit it to ex ceptionally grant State aid for restructuring to 
steel producing firms during the first five years fo llowing the entry into force of the Agreement.  
Under Paragraph 3 of Protocol 4 su ch aid may be provided if it leads to the long-term viability of the 
benefiting firms under normal market conditions at th e end of the restructuring period;  the amount 
and intensity of such aid are strictly limited to th at absolutely necessary to restore viability and aid is, 
                                                      
18 The relevant designated bodies are the Ministry of Agriculture, Forestry and Water Management for 
Serbia and the Directorate-Genera l Agriculture and Rural Development for the European Commission. WT/REG285/1 
Page 22 
 
 
  where appropriate, progressively reduced;  and Se rbia presents restructuring programmes that are 
linked to global rationalization including the closin g down of inefficient capacity.  In addition, every 
steel firm benefiting from restructuring aid sha ll, as far as possible, provide for compensatory 
measures balancing the distortion of competition caused by the aid.  
62. Serbia must submit to the European Commission a National Restructuring Programme and 
individual business plans for each company receiving restructuring aid which demonstrates that the 
conditions above are being met.  According to the Parties Serbian steel companies had already been 
restructured before the Agreement entered into fo rce.  Therefore Serbia did not submit a National 
Restructuring Programme to the EC and Serbian stee l companies do not receive restructuring aid.  
Also, the largest and most important metallurgical complex in Serbia has been privatized and the 
owner of "U.S. Steel Serbia" operates according to  market demands and popul ar contemporary trends. 
The individual business plans should have been assess ed and agreed by the State aid monitoring 
authority of Serbia while the National Restructuri ng Programme should be confirmed by the European 
Commission as both complying with paragraph 3.  The European Commission in close cooperation with the competent national authorities, in particul ar Serbia's State aid monitoring authority will 
monitor implementation of the plans.  The Serbian State aid monitoring authority shall reimburse any 
aid granted once the Agreement was signed which is not approved by the National Restructuring Programme or any restructuring to firms not identified in the Programme. 
63. The Protocol also ensures that the EU will pr ovide Serbia technical support upon request, for 
the preparation of the National Restructuring Pr ogramme and the individual business plans.  The 
Parties will ensure full transparency with respect  to State aid, including a full and continuous 
exchange of information on State aid granted to Se rbia's steel industry and the implementation of the 
Restructuring Programme and business plans.  Implem entation of the requirements in Protocol 4 will 
be monitored by the Interim Committee, which may draft implementing rules.  If one of the Parties 
considers that a particular practice by the other Part y is incompatible with the terms of the Protocol, 
and if that practice causes or threatens to cause pr ejudice to its interests or material injury to its 
domestic industry, it may take appr opriate measures after consultati ons in the Sub-Committee dealing 
with competition matters or after 30 working days following the referral for consultations 
(Protocol 4(9)). 
E. G
ENERAL PROVISIONS OF THE AGREEMENT  
1. Transparency 
64. There are no provisions per se  on transparency.  However, several chapters call for closer 
cooperation and information exchange between the Parties:  Article 46 refers to the consequences of a 
failure to provide administrative cooperation to pr event fraud and irregularities in customs and related 
matters.  Administrative cooperation issues including transparency and mutual assistance are provided 
for by Protocol 5 on customs issues.  Efforts to ensu re transparency in the area of State Aid are also 
specified in Article 73 inter alia  by providing the other Party with a regular annual report or 
equivalent based on the methodology and presentation of the Community survey on State Aid.  In 
addition, upon request by the other Party, a Party must provide information on particular individual 
cases of public aid (Article 73(5)).  With respect to State aid to the steel industry by Serbia, moreover, 
Protocol 4 to the Agreement calls for assessment of  Serbia's National Restructuring Programme and 
individual business plans for each company benefiti ng from state aid to ensure that they are in 
compliance with paragraph 3 of the Protocol.  Each Party will ensure full transparency with respect to 
State aid and a continuous exchange of informati on will take place on the implementation of Serbia's 
restructuring plan and the individual business plans. 
 
  WT/REG285/1 
 Page 23 
 
 
  2. Current payments and capital movements 
65. Article 62 authorizes the Parties to permit any payments and transfers in the current account 
of the balance of payments between themselves in  freely convertible currency and in accordance with 
the provisions of Article VIII of the Articles of Agreement of the IMF. 
3. Exceptions 
66. The Agreement permits the use of prohibitions or  restrictions on imports , exports or goods in 
transit justified on grounds of public morality, pub lic policy or public security;  the protection of 
health and human, animal or plant life;  the prot ection of national treasures of artistic, historic or 
archaeological value or the protection of intellect ual, industrial and commerc ial property, or rules 
relating to gold and silver (Article 45).  Such prohibitions and restrictions shall not, however, 
constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties. 
4. Accession and termination 
67. There is no provision for third parties acceding to the Agreement.  The Agreement can be 
terminated by either Party denou ncing it; termination shall take effect six months from such a 
notification.  The Agreement can also be suspended by either Party, with immediate effect, in the 
event of non-compliance by the other Party with one of the essential elements (obligations listed in 
Articles 2 and 3) of the Agreement (Article 133).  
5. Institutional framework 
68. Under Title V an Interim Committee is establishe d to supervise the Agreement's application 
and implementation.  The Committee will meet at an  appropriate level at regular intervals and as 
circumstances require and will examine any major i ssues in the framework of the Agreement and any 
other bilateral or international issues of mutual inte rest (Article 119).  It will consist of members of 
the Council of the European Union, of the Europ ean Commission and of the Government of Serbia 
and be chaired in turn by representatives of the Par ties.  It will draw up its rules of procedure. The 
Interim Committee was establishe d on 2 March 2010 and adopted its rules of procedure.  The 
European Investment Bank shall take part as an obser ver in the work of the Committee in matters that 
concern it. 
69. The Committee has the power to take decisions within the scope of the Agreement in the 
cases provided for therein and make appropr iate recommendations.  Its decisions and 
recommendations are drawn up by agreement between the Parties.  Its decisions are binding on the 
Parties which shall take the measures necessary to implement the decisions taken by the Committee.  
The Interim Committee may also create subcomm ittees.  Five such subcommittees have been 
established on:  Trade, Industry, Customs, Taxation and Cooperation with other candidate countries;  
Agriculture and Fisheries, Food Safety, Veterinary  and phytosanitary matters;  Internal Market and 
Competition;  Economic and Financial I ssues and Statistics;  and Transport. 
6. Dispute settlement 
70. Under Article 129(2), the Parties will consult pr omptly through appropria te channels at the 
request of either Party, to discuss any matter conc erning the interpretation or implementation of the 
Agreement and other relevant aspects of their bilatera l relations.  Article 129(3)  requires them to refer 
any dispute relating to the application or interp retation of the Agreement to the Interim Committee 
which may settle the dispute through a binding decisi on.  Article 130 describes the procedures to be 
followed for dispute settlement whereas Protocol 6 deta ils procedures to be followed for arbitration.   WT/REG285/1 
Page 24 
 
 
  71. When a Party considers that a measure adopted by the other Party or a failure by that Party to 
act, constitutes a breach of its obligations under the Agreement, it may take appropriate measures but 
before doing so should supply the Interim Committee with all relevant information with a view to 
seeking a solution acceptable to the Parties (Article 49(4 )).  Priority must be given to those measures 
which least disturb the functioning of the Agre ement.  The Interim Co mmittee decides on these 
measures proposed by a Party and adopts the decisi on on the basis of the agreement of the Parties  and 
must be notified immediately to the Interim Committ ee and be subject to consultations upon request 
from the other Party in the Committee or any ot her body set up under Article 46 on administrative 
cooperation.  
72. The Parties shall endeavour to resolve the di spute and reach a mutually acceptable solution 
through good faith c onsultations in the Interim Committee or ot her relevant body.  The dispute will be 
discussed at every meeting of the Committee until it is  resolved or arbitration procedures have been 
initiated under Protocol 6.  The di spute will be deemed to be reso lved once the Interim Committee has 
taken a binding decision or if it declares that there is  no longer a dispute.  If the Parties fail to resolve 
the dispute within two months of the initiation of the dispute settlement procedure, they may submit 
the matter for arbitration under Protocol 6. 
73. Protocol 6, whose objective is to avoid and settle  disputes between the Parties with a view to 
reaching a mutually acceptable solution, covers differe nces in the interpretation and application of the 
following provisions:  Title II (free movement of goods) except Articles 33 (protection of GIs for 
agricultural and fishery products and foodstuffs othe r than wine and spirit drinks), 40 (dumping and 
subsidy), 41 (Safeguards), 33 (GIs), 40 (Dumping) and 41 paragraphs 1, 4 and 5 (insofar as these 
concern measures adopted under paragraph 1 of  Article 41 and Article 47);  and Articles 62 
(payments and transfers on the current account) and 75 (2) (MFN treatment for intellectual, industrial 
and commercial property rights) of Title III. 
74. Where the Parties fail to resolve their dispute, the complaining Party may under the 
conditions of Article 130 of the Agreement, submit  a request in writing for the establishment of an 
arbitration panel to the Party complained against and the Interim Committee.  The Panel will notify its 
ruling to the Parties and the Interim Committee within 90 days and in no case later than 120 days from its establishment (in urgent cases, every effort w ill be made to issue a ruling within 45 up to a 
maximum 100 days).
19  The Panel's ruling shall set out the findings of fact, the applicability of the 
relevant provisions of the Agreement and the rationa le for its findings and conclusions.  It may also 
contain recommendations on the measures to be  adopted to comply with the ruling. 
75. Each Party will take any measure necessary to comply with the ruling of the Panel and the 
Parties will endeavour to agree on the reasonable pe riod of time required to comply with the ruling 
(Article 6), which the Party complained against will notify no later than 30 days after the ruling 
(Article 7).  If the Parties disagree on the reasona ble period of time the complaining Party may request 
the Interim Committee, within 20 days of the notification of the reasonable period of time by the Party complained against, to reconvene the original Arb itral Panel.  The Panel should notify its ruling on the 
reasonable period within 20 days from the submission of this request.  Article 8 requires the Party 
complained against to notify the other Party a nd the Interim Committee before the end of the 
reasonable period of time of any measure it has taken to comply with the Panel ruling.  If there is 
disagreement about the compatibility of any measur e taken and the scope of the Protocol as in 
Article 2 (see above), the complaining Party may requ est the original Panel to rule on the matter.  
Once re-convened the Panel will rule within 45 da ys of the date of its re-establishment.   
                                                     
 
19 The Panel is established on the date on which the chair of the panel is informed of the appointment 
of the panellists as agreed by the Parties, or the date of their selection.  If it cannot meet the 90 day deadline, the 
chairperson of the Panel must notify the Parties and the Interim Committee in writing, stating the reasons for the 
delay (Article 5(1)).  WT/REG285/1 
 Page 25 
 
 
  76. If the Party complained against fails to notif y measures to comply with the Panel's ruling 
before the end of the reasonable period of time, or if  the Panel rules that the measure notified is not in 
conformity with that Party's obligations under the Ag reement, the Party compla ined against shall, if 
requested by the other Party, present an offer for te mporary compensation (Artic le 9).  If there is no 
agreement on compensation within 30 days of the end of the reasonable period of time or if the Panel 
rules under Article 8 that the measure taken to co mply does not conform with the Agreement, the 
complaining Party is entitled, upon notifying the ot her Party and the Interim Committee, to suspend 
the application of benefits granted under the provision s covered by the Protocol at a level equivalent 
to the adverse economic impact of the violation.  The benefits may be su spended 10 days after the 
date of notification, unless the Party complained  against has already requested arbitration under 
paragraph 3.  The re-convene d Panel shall notify its ruling on the leve l of suspension of benefits to the 
Parties and the Interim Committee within 30 days of the date of request, before which benefits cannot 
be suspended.  The benefits suspended shall be:  co nsistent with the ruling of the Panel, temporary, 
and applied only until any measure found to violate th e Agreement is withdrawn or amended so as to 
bring it into conformity with the Agreement or until  the Parties have agreed to settle the dispute. 
77. Compliance with the Panel ruling should be notif ied by the Party complained against.  The 
complaining Party may request that the Panel re-c onvene if there is no agreement on the measures 
taken to comply with the ruling.  If the Panel de cides that compliance has not been sufficient it will 
determine whether the complaining Party can continue  it suspension of benefits at the original or 
different level; if it rules that compliance conforms  with the Agreement, the suspension of benefits 
will be terminated. 
78. Unless it decides otherwise, the meetings of th e Arbitral Panel shall be open to the public 
under rules of procedure (and a complementary code of conduct) established by the Interim 
Committee no later than six months after the entry into force of the Protocol .  The rules of conduct 
have not been established yet .  The Panel may also, at the request of a Party or on its own initiative, 
seek information from any source or the opinion of experts as it believes to be appropriate.  The 
information obtained must be shared with the Pa rties and open to comment.  Interested parties may 
also submit amicus curiae  briefs to the Panel according to rules of procedure established for its 
proceedings (Article 12).20  All Panel decisions will be taken by majority vote and shall be binding on 
the Parties.  They will be notified to the Parti es and to the Council which will make them public 
unless it decides by consensus not to do so (Article 14). 
79. Once Serbia accedes to the WTO, arbitration pa nels under the Agreement shall not adjudicate 
disputes on each Party's rights and obligations unde r the Agreement establishing the WTO (Article 16 
of Protocol 6).  The right of recourse by the Pa rties to the dispute settlement provisions under the 
Agreement shall be without prejudice to any actio n in the WTO, including for dispute settlement.  
However, once a Party has instituted a dispute either  under Article 3(1) of th e Protocol or under the 
WTO Agreement, it may not institute a dispute on th e same measure in the ot her forum until the first 
proceeded has ended.  The Protocol does not preclude a Party from implementing suspension of 
benefits authorized by the WTO Dispute Settlement Body. 
7. Relationship with other agreements concluded by the Parties 
80. The Agreement does not preclude the maintenance or establishment of customs unions, free 
trade areas or arrangements for frontier trade excep t insofar as they alter the trade arrangements 
provided under the Agreement.  During its implemen tation period, the Agreement will not affect the 
implementation of specific preferential arrangement s governing the movement of goods in agreements 
                                                      
20 The Panel shall apply and interpret the provis ions of the Agreement in accordance with the 
customary rules of interpretation of public internationa l law, including the Vienna Convention on the Law of 
Treaties, rather than an interpretation of the acquis Communautaire  (Article 13).   WT/REG285/1 
Page 26 
 
 
  previously concluded between one or more Member States of the EU and Serbia or resulting from 
bilateral agreements specified in Title III (transit traffic) concluded by Serbia to promote regional 
trade (Article 39). 
81. Serbia should also continue to cooperate, a nd conclude a Convention on regional cooperation, 
with any other country that is a candidate for accessi on to the EU in any of the fields for cooperation 
identified in the Agreement.  The Convention shoul d aims gradually to align bilateral relations 
between Serbia and the acceding country with the releva nt part of the relations between the EU and its 
Member States and that country.  Serbia also agre ed to start negotiations with Turkey which has a 
customs union with the EU, with a view to co ncluding a free trade area in accordance with 
Article XXIV of the GATT 1994;  the agreement be tween Serbia and Turkey came into force on 
1 September 2010 and has been notified to the WT O.  This agreement and other notified and 
non-RTAs that the Parties are party to is shown in Table II.6 below.  With regard to the Agreement 
between the EU and Papua New Guinea, the Parties are currently completing procedures to submit the 
required notification. 
Table II.6:  European Union and Serbia:  Participation in othe r RTAs (notified and non-notified in force), as of April 2011  
GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
EUROPEAN UNION  
Montenegro 01.05.10 Services 2010 GATS Art. V 
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 
Croatia 01.02.05 Services 2009 GATS Art. V 
Egypt 01.06.04 Goods 2004 GATT Art. XXIV 
FYROM 01.04.04 Services 2009 GATS Art. V 
Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
Chile 01.02.03 Goods 2004 GATT Art. XXIV 
Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
San Marino 01.04.02 Goods 2010 GATT Art. XXIV 
Croatia 01.03.02 Goods 2002 GATT Art. XXIV 
FYROM 01.06.01 Goods 2001 GATT Art. XXIV 
Mexico 01.10.00 Services 2002 GATS Art. V 
Mexico 01.07.00 Goods 2000 GATT Art. XXIV 
Israel 01.06.00 Goods 2000 GATT Art. XXIV 
Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV 
Faeroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
Turkey 01.01.96 Goods 1995 GATT Art. XXIV  WT/REG285/1 
 Page 27 
 
 
  GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
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 20.12.2009 Goods Not notified 
SERBIA 
EFTA 01.10.10 Goods 2010 GATT Art. XXIV 
Turkey 01.09.10 Goods 2010 GATT Art. XXIV 
CEFTA 01.05.07 Goods 2007 GATT Art. XXIV 
PTN 11.02.73 Goods 1971 Enabling Clause 
Source: WTO Secretariat.  
 
CEFTA: Central European Free Trade Agreement.  Members are Alba nia, Bosnia and Herzegovina, Cr oatia, Former Yugoslav Republic 
of Macedonia (FYROM), Moldova, Montenegro, Serbia and the United Nations Interim Administration in Kosovo (UNMIK). 
EFTA: European Free Trade Association. Members ar e Iceland, Liechtenstein, Norway, Switzerland. 
PTN: Protocol on Trade Negotiations.  
 WT/REG285/1 
Page 28 
 
 
  ANNEX I 
 
 1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the overall rates applied by the EU and Serbia respectively, is shown in Tables AI.1 (EU) 
and AI.2 (Serbia), by total products, agricultura l products and non-agricultural products.  In 2010 
when the Agreement entered into force, around a qua rter of the EU tariff was already duty free on an 
MFN basis.  As a result of the Agreement, in 20 10 the share of duty free lines for imports from Serbia 
increased to 97.5% overall of which 99.2% for non- agricultural products and 91.9% for agricultural 
products.  The average margin of preference for Serb ian exporters to the EU as a result was 97.9% in 
2010 for all goods, of which 97.8% for agricu lture and 97.6% for non-agricultural products. 
Table AI.1 
EU: Indicators of Applied rates and pref erential rates for imports from Serbia 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2010 4.9 6.6 24.7 8.9 12.1 18.0 4.2 5.7 26.5 
Serbia 2010 0.1 13.1 97.5 0.2 11.7 91.1 0.1 13.8 99.2 
 2011 0.1 12.1 97.5 0.2 11.7 91.1 0.1 12.3 99.2 
 2012 0.1 11.2 97.5 0.2 11.7 91.1 0.1 10.9 99.2 
 a WTO Definition.  
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations; for tariffs w ith 
non ad valorem  components, only the ad valorem  part of the rate was included in th e calculation of the tariff averages.   
 
Based on HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by EU. 
 
2. In 2009, when Serbia began to implement the Ag reement, 1.1% of its overall tariff was duty 
free.  As a result of the Agreement, 58.8% of its tariff became duty free for imports from the EU, of which 42.9% in agriculture and 62.8% in non-agriculture.  At the end of implementation in 2014, 
95.1% of the tariff will be duty free for imports from the EU;  of this 76.5% will be duty free for 
agricultural imports and 100% for non-agricultural goods.  EU exporters to  Serbia will enjoy an 
average margin of preference of 91.9%, of which 80. 8% in agriculture and 100% in non-agriculture. 
Table AI.2 
Serbia: Indicators of Applied rates and preferential rates for imports from EU 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
Applied rate 2009 8.7 8.8 1.1 17.7 17.9 1.3 6.4 6.5 1.0 
EU 2009 4.7 11.5 58.8 11.6 20.3 42.9 2.9 7.9 62.8 
 2010 3.9 9.4 58.9 10.1 17.7 43.0 2.2 6.0 62.8 
 2011 2.9 8.7 66.2 8.4 14.8 43.0 1.5 5.4 72.1 
 2012 2.1 6.4 66.3 6.8 12.0 43.3 0.9 3.4 72.1 
 2013 1.3 6.6 79.5 5.3 9.3 43.4 0.3 2.8 88.9 
 2014 0.7 14.3 95.1 3.4 14.3 76.5 0.0 18.0 100.0 
 a WTO Definition. 
Note: For tariff lines subject to TRQs only the out-of-quota dut y is included in the tariff-related calculations;  for tariffs with 
 non ad valorem  components, only the ad valorem  part of the rate was included in th e calculation of the tariff averages.   
Based on HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Serbia.  WT/REG285/1 
 Page 29 
 
 
  3. Tables AI.3 and AI.4 show market access opportu nities respectively for Serbia's top 25 global 
exports in the EU and for the EU's  top 25 global exports in the Serbia n market.  Table AI.3 shows that 
of Serbia's top 25 export products to the EU market  which accounted for 30.2% of its overall exports 
covered by 94 tariff lines at the HS 6-digit level,  26 were already duty free before the Agreement 
entered into force.  In 2010, when the Agreemen t entered into force an additional 65 tariff lines 
became duty free;  3 tariff lines (certain fruit a nd refined sugar) will remain subject to duty. 
Table AI.3 – EU: Market access opportunities under the agreement for Serbia's top 25 exports 
Access Conditions to EU's import markets 
MFN (2010) Serbia's top export products in 2007-2009 
Number of tariff 
lines 
HS number and description of the product  Share in global 
exports (%)  Avg. 
MFN 
applied 
rate 
(%) Duty-
free Dutiable  Duty-
free in 
2010 Remain 
dutiable 
081120 - Raspberries, blackberries, mulberries, 
loganberries, black, white or red 
currants and gooseberries 2.1 15.5  7 6 1 
721012 -- Of a thickness of less than 0.5 mm 1.9 0.0 2    
720837 -- Of a thickness of 4.75 mm or more 
but not exceeding 10 mm 1.7 0.0 1    
401110 - Of a kind used on motor cars 
(including station wagons and racing cars) 1.7 4.5  1 1  
271600 Electrical energy (optional heading) 1.6 0.0 1    
850300 Parts suitable for use solely or 
principally with the machines of heading 85.01 or 85.02. 1.6 2.7  3 3  
170199 -- Other 1.6 --  2  2 
100590 - Other 1.5 --  1 1  
760612 -- Of aluminium alloys 1.4 7.5  5 5  
391810 - Of polymers of vinyl chloride 1.3 6.5  2 2  
300490 - Other 1.2 0.0 1    
720449 -- Other 1.1 0.0 3    
720852 -- Of a thickness of 4.75 mm or more 
but not exceeding 10 mm 1.1 0.0 3    
611521 -- Of synthetic fibres, measuring per 
single yarn less than 67 decitex 1.1 12.0  1 1  
481159 -- Other 1.0 0.0 1    
740911 -- In coils 1.0 4.8  1 1  
640610 - Uppers and parts thereof, other than 
stiffeners 0.9 3.0  2 2  
741110 - Of refined copper 0.9 4.8  3 3  
720839 -- Of a thickness of less than 3 mm 0.9 0.0 1    
271019 -- Other 0.9 2.6 8 17 17  
390120 - Polyethylene having a specific gravity 
of 0.94 or more 0.9 3.3 1 1 1  
720838 -- Of a thickness of 3 mm or more but 
less than 4.75 mm 0.8 0.0 1    
220300 Beer made from malt. 0.7 0.0 3    
640399 -- Other 0.7 7.6  11 11  
852872 -- Other, colour 0.7 14.0  11 11  
Total of above  30.2  26 68 65 3 
 
 -- non ad valorem  duties. 
 
Note: Based on HS 2007 nomenclature. 
 
Source : WTO estimates based on data provided by EU and UNSD, Comtrade database. 
 
 
   WT/REG285/1 
Page 30 
 
 
  4. Table AI.4 shows market access opportunities fo r the EU's top 25 exports to the Serbian 
market which account for 24.4% of the EU's global e xports.  Before the Agreem ent entered into force, 
11 out of 128 tariff lines were alread y duty free for imports into Serbia.  As a result of the Agreement, 
which Serbia began implementing in 2009, 81 lines became duty free in 2009.  In 2011, 2013 an 
additional 8 and 25 tariff lines are to become duty fr ee, followed by liberalization of the remaining 
3 lines in 2014. 
Table AI.4 – Serbia:  Market a ccess opportunities under the agree ment for EU's top 25 exports 
Access Conditions to Serbia's import markets 
Applied rate (2009) EU's top export products in 2007-2009 Number of tariff 
lines Duty-free in 
HS number and description of the product  Share in global 
exports (%)  Avg. 
applied 
rate 
(%) Dutiable Duty-
free  
2009 
2011 
2013 
2014 
300490 - Other 3.6 3.7  3 2 1   
271019 -- Other 2.4 1.0 7 23 23    
870323 -- Of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 2.3 9.2  5 1  4  
271011 -- Light oils and preparations 2.2 2.2  13 13    
870324 -- Of a cylinder capacity exceeding 
3,000 cc 1.9 9.0  4 1  1 2 
880240 - Aeroplanes and other aircraft, of an 
unladen weight exceeding 15,000 kg 1.7 1.0  1 1    
841191 -- Of turbo-jets or turbo-propellers 0.8 1.0  1 1    
870899 -- Other 0.8 1.0  4 4    
851712 -- Telephones for cellular networks or 
for other wireless networks 0.8 5.0  2 1 1   
710231 -- Unworked or simply sawn, cleaved 
or bruted 0.7 10.0  1  1   
870332 -- Of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc 0.6 9.2  5 1  4  
848180 - Other appliances 0.6 9.0  17 1 2 14  
851770 - Parts 0.6 7.4  5 4 1   
854231 -- Processors and controllers, whether 
or not combined with memories, converters, logic circuits, amplifiers, 
clock and timing circuits, or other 
circuits 0.6 1.0  2 2    
293499 -- Other 0.5 1.0  2 2    
847330 - Parts and accessories of the machines 
of heading 84.71 0.5 2.3  3 3    
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 0.5 1.0  2 2    
847989 -- Other 0.5 3.0  3 2  1  
293399 -- Other 0.5 1.0  3 3    
711319 -- Of other precious metal, whether or 
not plated or clad with precious metal 0.5 20.0  1    1 
901890 - Other instruments and appliances 0.4 1.4  10 10    
841112 -- Of a thrust exceeding 25 kN 0.4 1.0  3 3    
300210 - Antisera and other blood fractions and 
modified immunological products, 
whether or not obtained by means of 
biotechnological processes 0.4 0.0 4      
851762 -- Machines for the reception, 
conversion and transmission or regeneration of voice, images or other 
data, including switching and routing 
apparatus 0.4 13.3  3  2 1  
840999 -- Other 0.4 1.0  1 1    
Total of above  24.4  117 11 81 8 25 3 
 
Note: Based on HS 2007 nomenclature. 
 
Source : WTO estimates based on data provided by  Serbia and EU Statistical database .  WT/REG285/1 
 Page 31 
 
 
  ANNEX II 
 
Tariff rate quotas under the Agreement  
 
Table AII.1 
Tariff rate quotas for EU  imports from Serbia 
Tariff rate quota 
Product 
Quantity In-quota duty Out of quota duty 
at entry into force 
(2010) Liberalization programme 
Baby beef products 20% of the MFN 
applied rate of duty MFN rate 
HS 01029051, 
01029059, 
01029071, 01029079 2.04% + 
€18.62/100 kg net 10.2% + €93.1/100 
kg net 
HS 02011000, 
02012020,  2.56% + 
€35.36/100 kg net 12.8% +€176.8/100 
kg net 
HS02012030,  2.56% + 
€28.28/100 kg net 12.8% + €141.4/100 
kg net 
HS02012050 8,700 metric 
tonnes per year 
2.56% + 
€42.44/100 kg net 12.8% + €212.2/100 
kg net None 
Fish     
- Trout 15 metric tonnes 
per year zero 90% of MFN rate 
- Carp 60 metric tonnes 
per year zero 90% of MFN rate 
HS 03019110, 
03019300, 03021110, 03026911, 
03037911, 
03041991, 03049921   7.2% 
HS 03032110, 
03041919, 03042919   8.1% 
HS 03019190, 
03021120, 03021180, 03032120, 03032180, 
03041915, 
03041917, 03042915, 03042917, 
03055980, 
03056980   10.8% 
HS 03051000   11.7% 
HS 03054945, 
03054980   12.6% 
HS 03053090   14.4% Duties on out of quota imports to be 
reduced from 90% of MFN rate in 2010, to 80% of the MFN rate in 2011 and 70% of 
the MFN rate in subsequent years. 
Sugar and sugar 
products 180,000 metric 
tonnes (net weight) zero MFN rate  
HS 17011110, 
17011210   €33.9/100 kg net  
HS 17011190, 
17011210, 
17019100, 
17019910, 17019990   €41.9/100 kg net  
HS 17021100, 
17021900   €14/100 kg net  
HS 17011010, 
17026080, 
17026095, 
17029071, 17029080, 17029095   €0.40/100 kg net  WT/REG285/1 
Page 32 
 
 
  Tariff rate quota 
Product 
Quantity In-quota duty Out of quota duty 
at entry into force 
(2010) Liberalization programme 
HS 17022090   8%  
HS 17023010, 
17024010, 
17026010, 
17029030   €50.7/100 kg net  
HS 17023050   €26.8/100 kg net  
HS 17023090, 
17024090, 17029050   €20/100 kg net  
HS 17025000   16% + €50.7/100 kg 
net  
HS 17029010   12.8%  
HS 17029075   €27.7/100 kg net  
HS 17029080   €19.2/100 kg net  
Winea    
HS 220410  €32/Hl 
HS 220421  
53,000 Hl per year zero 
€13.1/Hl 
HS 220429 10,000 Hl per year zero €15.4l/Hl The Parties agree to examine opportunities 
for granting each other further concessions 
taking into account developments in 
bilateral trade in wine no later than within 3 years of the Agreement entering into force. 
 
a Consultations at the request of one of the Parties may be  held to adapt the quotas by transferring quota quantities 
between that for ex 220429 and that applying to ex 220410 and ex 220421. 
 
Source: WTO Secretariat based on Annexes II, IV and Annex I to Protocol 2 of the Agreement. 
 
Table AII.2 
Tariff rate quotas for import s by Serbia from the EU 
Tariff rate quota 
Product 
Quantity In-quota duty Out of quota duty 
at entry into force 
(2008) Liberalization programme 
Wine   
HS 220410  zero 
HS 220421 25,000 Hl  
zero  
30% The Parties agree to examine opportunities 
for granting each other further concessions taking into account developments in bilateral trade in wine no later than within 
3 years of the Agreement entering into 
force. 
 
Source : WTO Secretariat based on Annex I of Protocol 2 of the Agreement. 
 
__________