WORLD TRADE  
ORGANIZATION  WT/REG191/1 
18 February 2005 
 
 (05-0689) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN ROMANIA AND BOSNIA AND HERZEGOVINA 
  
  The following communication, dated 4 February 20 05, is being circulated at the request of the 
Delegation of Romania. 
 
_______________ 
 
 
FREE TRADE AGREEMENT BETWEEN ROMANI A AND BOSNIA AND HERZEGOVINA
* 
 
PREAMBLE  
  Romania  and Bosnia and Herzegovina  (hereinafter called “the Parties”),  
  Reaffirming  their commitment to pluralistic democracy based on the rule of law, human rights 
and fundamental freedoms; 
  Recalling  their intention to participate actively in the process of economic integration in 
Europe as an important dimension of the stabilit y on the European continent and expressing their 
preparedness to co-operate in seeking ways  and means to strengthen this process; 
 
 Reaffirming  their commitment to the principles of a market economy, which constitutes the 
basis for their relations;    Convinced  that this Agreement will create a new climate for economic relations between the 
Parties and above all for the development of trade and investment; 
 
 Resolved  to this end to eliminate progressively the obstacles to substantially all their mutual 
trade, in accordance with the provisions of the General Agreement on Tariffs and Trade 1994 
(hereinafter called “GATT 1994”) and the Agreem ent establishing the World Trade Organisation 
(hereinafter called “WTO”), having in mind that Bosn ia and Herzegovina has the priority to become a 
member of the WTO; 
  Considering  that no provision of this Agreement may be interpreted as exempting the Parties 
from their obligations under other internationa l agreements, especially the GATT 1994 and WTO 
Agreement; 
 
 Firmly convinced  that this Agreement will foster the development of mutually beneficial trade 
relations between the Parties and contribute to the process of integration in Europe; 
  Have agreed  as follows: 
                                                     
 
* The associated Annexes have been submitted to  the Secretariat for consultation by interested 
Members (office 1174). WT/REG191/1 
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 Article 1 
 
Objectives
 
 1. The Parties shall gradually establish a free trade area on substantially all their bilateral trade 
in a transitional period ending on 1st January 20 05, in accordance with the provisions of this 
Agreement and in conformity with Article XXIV of the GATT 1994 and the WTO Agreement. 
2. The objectives of this Agreement are: 
(a) to promote through the expansion of mutual trade the harmonious development of 
economic relations between the Pa rties and thus to foster in the Parties the advance of 
economic activity, the improvement of living and employment conditions and 
financial stability; 
(b) to provide fair conditions of competition for trade between the Parties; 
(c) to contribute by the removal of barriers to  trade, to the harmonious development and 
expansion of world trade. 
(d) to enhance co-operation between the Parties. 
 
CHAPTER I: INDUSTRIAL PRODUCTS 
 
Article 2 
 
Scope
 
 1. The provisions of this Chapter shall apply to industrial products originating in the Parties. 
2. For the purpose of this Agreement, the term  “industrial products” shall mean products falling 
within Chapters 25 to 97 of the Harmonized Commodity Description and Coding System with 
exception of products listed in Annex I to this Agreement. 
Article 3 
 
Basic Duties
 
 1. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the Most Favoured Nation rate of duty in force on the date of entry into 
force of this Agreement. 
2. If, after the date of entry into force of this  Agreement, any tariff reduction is applied on an 
erga omnes  basis, in particular reductions resulting fro m the tariff negotiations in the WTO, such 
reduced duties shall replace the basic duty referred to  in paragraph 1 of this Article as from the date 
when such reductions are applied. 
 If a reduction of duties is effected by way of a suspension of duties made for a particular 
period of time, such reduced duties shall replac e the basic duties only for the period of such 
suspension.   WT/REG191/1 
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 3. The reduced duties calculated in accordance with paragraph 1 and 2 of this Article shall be 
applied rounded to the first decimal place. 
4. The Parties shall communicate to each other their respective basic duties. 
Article 4 
 
Customs Duties On Imports, Charges Having Equivalent Effect  
And Import Duties Of A Fiscal Nature  
 1. The Parties shall not introduce new customs duties on imports, charges having an effect 
equivalent to customs duties on imports and import du ties of a fiscal nature in trade between them as 
from the date of entry into force of this Agreement. 
2. The Parties shall grant, on mutual basis, the most favourable import treatment as provided to 
the suppliers from third countries with whic h the Parties apply Free Trade Agreements. 
3. Customs duties on imports applicable in Romania to industrial products originating in Bosnia 
and Herzegovina shall be abolis hed on the date of entry into force of this Agreement. 
4. Customs duties on imports, charges having equiva lent effect and import duties of a fiscal 
nature applicable in Bosnia and Herzegovina on th e date of entry into force of this Agreement to 
industrial products originating in Romania sha ll be progressively reduced in accordance with the 
following timetable, except for the products  listed in Annex II of the Agreement: 
- on the date of entry into force of th is Agreement - to 50% of their value, 
- on 1 January 2004    - to 40% of their value, 
- on 1 January 2005    - the remaining duties shall be abolished. 
 5. Customs duties on imports, charges having equiva lent effect and import duties of a fiscal 
nature applicable in Bosnia and Herzegovina on th e date of entry into force of this Agreement to 
industrial products originating in Romania, for the products listed in Annex II of the Agreement, shall 
be progressively reduced in accord ance with the following timetable: 
- on the date of entry into force of th is Agreement - to 40% of their value, 
- on 1 January 2004    - the remaining duties sall be abolished.      
Article 5 
 
Customs Duties On Exports, Charges Having Equivalent Effect 
 
And Export Duties Of A Fiscal Nature  
 1. The Parties shall not introduce new customs duties on exports, charg es having equivalent 
effect and export duties of a fiscal nature in trade be tween them as from the date of entry into force of 
this Agreement. 
2. The Parties shall abolish all customs duties on exports, charges having equivalent effect and 
export duties of a fiscal nature on the date of entry into force of this Agreement. WT/REG191/1 
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 Article 6 
 
Quantitative Restrictions On Imports And Ex ports And Measures Having Equivalent Effect
 
 1. The Parties shall not introduce new quantitativ e restrictions on imports and exports or 
measures having equivalent effect in trade between th em as from the date of entry into force of this 
Agreement. 
2. All quantitative restrictions on imports and ex ports and measures having equivalent effect 
shall be abolished on the date of en try into force of this Agreement. 
Article 7 
 
Technical Barriers To Trade
 
 1. The rights and obligations of the Parties relati ng to technical regulations or standards and 
related measures shall be governed by the WTO Agreement on Technical Barriers to Trade.  
2. The Parties shall co-operate and exchange inform ation in the field of conformity assessment, 
standardisation, metrology and accreditation with the aim of reducing and eliminating technical 
barriers to trade. 
3. Each Party, upon request of the other Party, shall provide information on particular individual 
cases of technical norms, standards and related measures. 
4. For the purpose of reducing and eliminating technical barriers, and when the practical 
conditions are met, the relevant authorities of th e Parties shall conclude agreements on mutual 
recognition of test reports, certificates of conformity and other documents directly  or indirectly related 
to conformity assessment of the products which are the subject of trade between the Parties. 
 
CHAPTER II – AGRICULTURAL PRODUCTS 
 
Article 8 
 
Scope
 
 1. The provisions of this Chapter shall apply to ag ricultural products originating in the Parties. 
2. For the purpose of this Agreement, the term  “agricultural products” shall mean products 
falling within Chapters 1 to 24 of the Harmoni zed Commodity Description and Coding System 
including products listed in Annex I to this Agreement. 
Article 9 
 
Basic Duties
 
 1. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the Most Favoured Nation rate of duty in force on the date of entry into 
force of this Agreement. 
2. If, after the date of entry into force of this  Agreement, any tariff reduction is applied on an 
erga omnes  basis, in particular reductions resulting fro m the tariff negotiations in the WTO, such  WT/REG191/1 
 Page 5 
 
 
 reduced duties shall replace the basic duty referred to  in paragraph 1 of this Article as from the date 
when such reductions are applied. 
 If a reduction of duties is effected by way of a suspension of duties made for a particular 
period of time, such reduced duties shall replac e the basic duties only for the period of such 
suspension. 
 
3. The reduced duties calculated in accordance with paragraph 1 and 2 of this Article shall be 
applied rounded to the first decimal place. 
4. The Parties shall communicate to each other their respective basic duties. 
Article 10 
 
Exchange Of Concessions  
 1. The Parties shall grant each other the concessions specified in Annex III of the Agreement, in 
accordance with the provisions of this Chap ter and those laid down in that Annex. 
2. Taking into account: 
− the role of agriculture in their economies, 
 
− the development of trade in agricu ltural products between the Parties, 
 
− the particular sensitivity of the agricultural products, 
 
− the rules of their agricultural policies, 
 
− the results of the multilateral trade negotiations under WTO, 
 the Parties shall examine the possibilities of granting each other further concessions. 
 
Article 11 
 
Customs Duties On Exports, Charges Having Equivalent Effect 
 
And Export Duties Of A Fiscal Nature  
 1. The Parties shall not introduce new customs duties on exports, charg es having equivalent 
effect and export duties of fiscal nature in trade betw een them as from the date of entry into force of 
this Agreement. 
2. The Parties shall abolish all customs duties on export, charges having equivalent effect and 
export duties of a fiscal nature on the date of entry into force of this Agreement. 
Article 12 
 
Quantitative Restrictions On Imports And Ex ports And Measures Having Equivalent Effect
 
 
1. The Parties shall not introduce new quantitativ e restrictions on imports and exports or 
measures having equivalent effect in trade between th em as from the date of entry into force of this 
Agreement. WT/REG191/1 
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 2. All quantitative restrictions on imports and ex ports and measures having equivalent effect 
shall be abolished on the date of en try into force of this Agreement. 
Article 13 
 
Agricultural Policy
 
 
1. Without prejudice to the concessions granted under Article 10 of this Agreement, the 
provisions of this Chapter shall not restrict in any way the pursuance of th e respective agricultural 
policies of the Parties or the taking of any measu res under such policies, including the implementation 
of the provisions of the WTO Agreement on Agriculture. 
2. The Parties shall notify each other the changes in their respective agricultural policies pursued 
or measures applied which may affect the conditions  of trade in agricultural products between them. 
Upon request of a Party, prompt consultations  shall be held to examine the situation. 
Article 14 
 
Specific Safeguards  
  Notwithstanding other provisions of this Agreem ent, and in particular Article 28, given the 
particular sensitivity of the agricultural market, if impor ts of products originating in one of the Parties, 
which are the subject of concessions granted under th is Agreement, cause serious disturbance to the 
market of the other Party, both Parties shall en ter into consultations immediately to find an 
appropriate solution. Pending such solution, the Party concerned may take appropriate measures it 
deems necessary in accordance with the provisions of the GATT 1994 and other relevant WTO agreements.  
Article 15 
 
Sanitary And Phytosanitary Measures
 
  The Parties shall apply their regulations in ve terinary, sanitary and phytosanitary matters, in a 
way corresponding to the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. 
 
Article 16 
 
Technical Barriers To Trade
 
 
1. The rights and obligations of the Parties relati ng to technical regulations or standards and 
related measures shall be governed by the WTO Agreement on Technical Barriers to Trade.  
2. The Parties shall co-operate and exchange inform ation in the field of conformity assessment, 
standardisation, metrology and accreditation with the aim of reducing and eliminating technical 
barriers to trade. 
3. Each Party, upon request of the other Party, shall provide information on particular individual 
cases of technical norms, standards and related measures. 
4. For the purpose of reducing and eliminating technical barriers, and when the practical 
conditions are met, the relevant authorities of th e Parties shall conclude agreements on mutual  WT/REG191/1 
 Page 7 
 
 
 recognition of test reports, certificates of conformity and other documents directly  or indirectly related 
to conformity assessment of the products which are the subject of trade between the Parties. 
 
CHAPTER III – GENERAL PROVISIONS 
 
Article 17 
 
Rules Of Origin And Co-Operation In Customs Administration  
 1. The Parties agree to apply the harmonized Eur opean preferential rules of origin, based on 
bilateral cumulation, in the mutual trade including al l existing and further amendments thereto. In the 
case of amendments of the European rules of or igin, the Joint Committee shall make a decision on 
amending them, accordingly. 
2. Protocol 1 to this Agreement (hereinafter "P rotocol 1") lays down the rules of origin and 
related methods of administrative co-operation. 
3. The Parties shall take appropriate measures, in cluding regular reviews by the Joint Committee 
and arrangements for administrative co-operation, to  ensure that the provisions of Protocol 1 and 
Articles 3 to 8, 9 to 13, 18, 28 and 30 of this Agre ement are effectively and harmoniously applied, and 
to reduce, as far as possible, the formalities imposed  on trade, and to achieve mutually satisfactory 
solutions to any difficulties arising fro m the operation of those provisions. 
Article 18 
 
Internal Taxation
 
 1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, 
whether directly or indirectly, discrimination be tween the products originating in the Parties. 
2. Exporters from the Parties may not benefit from repayment of internal taxation in excess of 
the amount of indirect taxation imposed on products exported to the territory of one of the Parties. 
Article 19 
 
General Exceptions
 
 
 This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in 
transit justified on grounds of public morality, public policy or public security; the protection of 
health and life of humans, animals or plants; the pr otection of national treasures of artistic, historic or 
archaeological value; the protection of intellectual pr operty; the rules relating to gold and silver, or the 
protection of environment or the conservation of ex haustible natural resources, if such measures are 
made effective in conjunction with restricti ons on domestic production or consumption. Such 
prohibitions or restrictions shall not, however, c onstitute a means of arbitrary discrimination or a 
disguised restriction on trade between the Parties.  WT/REG191/1 
Page 8  
 
 Article 20 
 
Security Exceptions
 
  Nothing in this Agreement shall prevent a Party from taking any appropriate measure, which 
it considers necessary: 
 
(a) to prevent the disclosure of information c ontrary to its essential security interests; 
(b) for the protection of its essential security interests or for the implementation of 
international obligations  or national policies: 
(i) relating to the traffic in arms, ammun ition and implements of war, provided 
that such measures do not impair the c onditions of competition in respect of 
products not intended for specifically military purposes, and to such traffic in other goods, materials and services as is carried on directly or indirectly for 
the purpose of supplying a military establishment; or 
(ii) relating to the non proliferation of biol ogical and chemical weapons, nuclear 
weapons or other nuclear explosive devices; or 
(iii) taken in time of war or other serious international tension. 
Article 21 
 
State Monopolies
 
 
1. The Parties shall adjust progressively any State monopoly of a commercial character so as to 
ensure that by the end of the transitional period  laid down in Article 1 of this Agreement, no 
discrimination regarding the conditions under which goods are procured and marketed exists between 
nationals of the Parties. The Parties shall inform  each other about the measures adopted to implement 
this objective. 
2. The provisions of this Article shall apply to any body through which the competent 
authorities of the Parties, in law or in fact, either  directly or indirectly supervise, determine or 
appreciably influence imports or exports between th e Parties. These provisions shall likewise apply to 
monopolies delegated by the State to other bodies. 
Article 22 
 
Payments  
 1. Payments in freely convertible currencies relati ng to trade in goods between the Parties and 
the transfer of such payments to the territory of the Party where th e creditor resides shall be free from 
any restrictions. 
2. The Parties shall refrain from any exchange or administrative restrictions on the grant, 
repayment or acceptance of short and medium term cred its to trade in goods in which a resident of a 
Party participates. 
3. Notwithstanding the provisions of paragraph 2 of this Article, any measures concerning 
current payments connected with the movement of goods shall be in conformity with the conditions 
laid down under Article VIII of the Agreem ent of the International Monetary Fund.  WT/REG191/1 
 Page 9 
 
 
 Article 23 
 
Rules Of Competition Concerning Undertakings  
 1. The following are incompatible with the proper functioning of this Agreement insofar as they 
may affect trade between the Parties: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings which have as their object or effect the 
prevention, restriction or distortion of competition; 
(b) abuse by one or more undertakings of a dominant position in the territories of the 
Parties as a whole or in a substantial part thereof. 
2. The provisions of paragraph 1 of this Article shall apply to the activities of all undertakings 
including public undertakings and undertakings to whic h the Parties grant special or exclusive rights. 
Undertakings entrusted with the operation of ser vices of general economic interest or having the 
character of a revenue-producing monopoly, shall be subject to provisions of paragraph 1 of this 
Article insofar as the application of these provisions  does not obstruct the performance, in law or in 
fact, of the particular public tasks assigned to them. 
3. With regard to agricultural products the provision s of paragraph 1 a) of this Article shall not 
apply to such agreements, decisions and practices wh ich form an integral part of a national market 
organisation. 
4. If a Party considers that a given practice is in compatible with paragr aphs 1 and 2 of this 
Article and if such practice causes or threatens to ca use serious prejudice to the interest of that Party 
or material injury to its domestic industry, it may take appropriate meas ures under the conditions and 
in accordance with the procedure laid do wn in Article 32 of this Agreement. 
Article 24 
 
State Aid
 
 1. Any aid granted by a Party or through State res ources in any form whatsoever which distorts 
or threatens to distort competition by favouring certain undertakings or the production of certain 
goods shall, insofar as it may affect trade between the Parties, be incompatible with the proper 
functioning of this Agreement. 
2. For agricultural products the provisions of paragr aph 1 of this Article shall comply with the 
relevant WTO Agreements. 
3. The Joint Committee shall, within  three years from the entry into force of this Agreement, 
adopt the criteria on the basis of which the practi ces derogating from paragraph 1 of this Article shall 
be assessed, as well as the rules for their implementation. 
4. The Parties shall ensure transparen cy in the area of state aid, inter alia  by reporting annually 
to the Joint Committee on the total amount and the di stribution of the aid given and by providing to 
the other Party, upon request, information on aid schemes and on particular individual cases of state 
aid. 
5. If a Party considers that a particular pr actice, including that in agriculture: WT/REG191/1 
Page 10  
 
 − is incompatible with the terms of paragraph 1 of this Article, and is not adequately dealt 
with under the implementing rules referred to  in paragraph 3 of this Article, and 
 
− in the absence of rules, referred to in paragr aph 3 of this Article, causes or threatens to 
cause serious prejudice to the interest of that Party or material injury to its domestic 
industry or agriculture. 
 
it may take appropriate measures under the conditions  of and in accordance with the provisions laid 
down in Article 32 of this Agreement.  6. Such appropriate measures may only be taken in conformity with the procedures and under 
the conditions laid down by the GATT 1994 and the WTO, and any other relevant instruments 
negotiated under their auspices, which are a pplicable between the Parties concerned. 
Article 25 
 
Public Procurement
 
 
1. The Parties consider the liberalization of th eir respective public procurement markets as an 
objective of this Agreement. 
2. The Parties shall progressively adjust their resp ective rules, conditions and practices with a 
view to grant suppliers of the other Party access to contract award procedures on their respective public procurement markets. 
3. The Joint Committee shall examine developments related to the achievement of the objectives 
of this Article and may recommend practical modalit ies of implementing the provisions of paragraph 
2 of this Article so as to ensure free access, tr ansparency and mutual opening of their respective 
public procurement markets. 
Article 26 
 
Protection Of Intellectual Property
 
 1. The Parties shall grant and ensure the adequa te and effective protection of intellectual 
property rights on a non-discriminatory basis, incl uding measures for granting and enforcing such 
rights. The protection shall be improved to a leve l corresponding to the substantive standards of the 
multilateral agreements, which are specified  in Annex IV to this Agreement. 
2. For the purpose of this Agreement the term "int ellectual property protection" includes, in 
particular, protection of copyright and related ri ghts including computer programs and data bases, 
trade marks for goods and services, geographical indi cations, patents, industria l designs, new varieties 
of plants, topographies of integrated circuits , as well as undisclosed information on know-how. 
3. The Parties shall co-operate in matters of inte llectual property. They shall hold, upon request 
of any Party, expert consultations on these matters , in particular, on activities relating to the existing 
or future international conventi ons on harmonization, administration and enforcement of intellectual 
property and on activities in international organiza tions, such as the World Trade Organization and 
the World Intellectual Property Organization, as well as relations of the Parties with any third country 
on matters concerning intellectual property.  WT/REG191/1 
 Page 11 
 
 
 4. The implementation of this Article shall be re gularly assessed by the Parties. Upon difficulties 
in trade in relations with the rights intellectual in cluding industrial property, either Party may request 
urgent consultations for findi ng mutually acceptable solution. 
Article 27 
 
Dumping  
  If a Party finds that dumping within the meaning of Article VI of the GATT 1994 is taking place in trade relations governed by this Agreemen t, it may take appropriate measures against that 
practice in accordance with the WTO Agreement on Implementation of Article VI of the GATT 1994 
under the conditions and in accordance with the procedur e laid down in Article 32 of this Agreement. 
 
Article 28 
 
General Safeguards
 
 
 Where any product is being imported in such increased quantities and under such conditions 
as to cause or threaten to cause:  
(a) serious injury to domestic producers of lik e or directly competitive products in the 
territory of the importing Party, or 
(b) serious disturbances in any related sector of the economy or difficulties, which could 
bring about serious deterioration in the economic situation of a region, 
the Party concerned may take appropriate meas ures under the conditions and in accordance with 
WTO Agreement on Safeguards and Countervailing Meas ures and the procedure laid down in Article 
32 of this Agreement. 
 
Article 29 
 
Structural Adjustment
 
 1. Exceptional measures of limited duration, which de rogate from the provisions of Article 4 of 
this Agreement, may be taken for industrial products by any of the Parties in the form of increased 
customs duties. 
2. These measures may only concern infant i ndustries, or certain sectors undergoing 
restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 
3. Customs duties on imports applicable in the Pa rty concerned to products originating in the 
other Party introduced in accordance with paragra phs 1 and 2 of this Article may not exceed 25 % ad 
valorem  and shall maintain an element of preference in  customs duties for products originating in the 
other Party. The total value of imports of the pr oducts, which are subject to these measures, may not 
exceed 15 % of total imports of industrial products fro m the other Party as defined in Chapter I of this 
Agreement, during the last year for which statistics are available. 
4. These measures shall be applied for a period not exceeding the transitional period determined 
in paragraph 1 of Article 1 of this Agreement. WT/REG191/1 
Page 12  
 
 5. No such measures can be introduced in respect to a product if more than three years have 
elapsed since the elimination of all duties and qua ntitative restrictions, charges or measures having 
equivalent effect concerning that product. 
6. The Party concerned shall inform the other Pa rty of any exceptional measures it intends to 
take and, at the request of the other Party, consu ltations shall be held immediately within the Joint 
Committee on such measures and the sectors to whic h they apply prior to their introduction. When 
taking such measures the Party concerned shall pr ovide the Joint Committee with a schedule for the 
elimination of the customs duties introduced under this Article. This schedule shall provide for a 
phasing out of these duties starting at the latest tw o years after their introduction, at equal annual 
rates. The Joint Committee may decide on a different schedule. 
Article 30 
 
Re Export And Serious Shortage
 
  Where compliance with the provisions of Ar ticles 5 and 6 of this Agreement leads to: 
 
(a) re-export towards a third country against wh ich the exporting Party maintains for the 
product concerned quantitative export restri ctions, export duties or measures or 
charges having equivalent effect; or 
(b) a serious shortage, or threat thereof, of a product essential to the exporting Party; 
and where the situations referred to above give rise or are likely to give rise to major difficulties for 
the exporting Party, that Party may take appropr iate measures under the c onditions and in accordance 
with the procedures laid down in Article 32 of this Agreement.  
Article 31 
 
Fulfilment Of Obligations
 
 1. The Parties shall take any measures required to fulfil their obligations under this Agreement. 
They shall ensure that the objectives set  out in this Agreement are attained. 
2. If a Party considers that the other Party has faile d to fulfil an obligation under this Agreement, 
the Party concerned may take appropriate measur es under the conditions and in accordance with the 
procedure laid down in Article 32 of this Agreement. 
Article 32 
 
Procedure For The Application Of Safeguard Measures
 
 
1. Before initiating the procedure for the appli cation of safeguard measures set out in the 
following paragraphs, the Parties shall endeavour to solve any differences between them through 
direct consultations. 
2. In the event of a Party subjecting imports of products liable to give rise to the situation 
referred to in Article 28 of this Agreement to an  administrative procedure having as its purpose the 
rapid provision of information on the trade flows, it shall inform the other Party. 
3. Without prejudice to paragraph 7 of this Ar ticle, a Party which considers resorting to 
safeguard measures shall promptly notify the other Pa rty thereof and supply all relevant information.  WT/REG191/1 
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 Consultations between the Parties shall take place  without delay within the Joint Committee with a 
view to finding a solution acceptable to the Parties. 
4. (a) With regard to Articles 27, 28 and 30 of  this Agreement, the Joint Committee shall 
examine the case or the situation and may take any decision needed to put an end to the difficulties notified by the Party concer ned. In the case of the absence of such 
decision within thirty days of the matter being referred to the Joint Committee, the 
Party concerned may adopt the measures necess ary in order to remedy the situation. 
(b) As regards Article 31 of this Agreement, the Party concerned may take appropriate 
measures after the consultations have been concluded or a period of three months has 
elapsed from the date of the notification to the other Party. 
(c) With regard to Articles 23 and 24 of this Agreement, the Party concerned shall give 
the Joint Committee all the assistance requi red in order to examine the case and, 
where appropriate, eliminate the practice object ed to. If the Party in question fails to 
put an end to the practice objected to within  the period fixed by the Joint Committee, 
or if the Joint Committee fails to reach an agreement within thirty working days of 
the matter being referred to it, the Pa rty concerned may adopt the appropriate 
measures to deal with the difficulties resulting from the practice in question. 
5. The safeguard measures taken shall be immediatel y notified to the other Party. They shall be 
limited with regard to their extent and to their dura tion to what is strictly necessary in order to rectify 
the situation giving rise to their application and sh all not be in excess of th e injury caused by the 
practice or the difficulty in question. Priority shall be given to such measures, which will least disturb 
the functioning of this Agreement. 
6. The safeguard measures taken shall be the subj ect of periodic consultations within the Joint 
Committee with a view to their relaxation as soon as possible, or abolition when conditions no longer 
justify their maintenance. 
7. Where exceptional circumstances requiring immediate action make prior examination 
impossible, the Party concerned may, in the cases of Articles 27, 28 and 30 of  this Agreement, apply 
forthwith the provisional measures strictly necessar y to remedy the situation. The measures taken 
shall be notified without delay a nd consultations between the Parti es shall take place as soon as 
possible within the Joint Committee. 
Article 33 
 
Balance Of Payments Difficulties
 
 1. The Parties shall endeavour to avoid the im position of restrictive measures including 
measures relating to imports for balance of payments difficulties. 
2. Where one of the Parties is in serious balan ce of payments difficulties, or under imminent 
threat thereof, the Party concerned may, in accordance with the conditions established under the 
GATT 1994 and the WTO, adopt restrictive measures,  including measures related to imports, which 
shall be of limited duration and may not go beyond what is necessary to remedy the balance of 
payments situation. The measures shall be progressi vely relaxed as balance of payments conditions 
improve and they shall be eliminated when conditio ns no longer justify their maintenance. The Party 
concerned shall inform the other Party forthwith of  their introduction and, whenever practicable, of a 
time schedule for their removal. WT/REG191/1 
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 Article 34 
 
Services And Investments
 
 1. The Parties recognise the growing importance of certain areas, su ch as services and 
investments. In their efforts to gradually develop an d broaden their co-operation, in particular in the 
context of the European integrati on, they will co-operate with the aim of achieving a progressive 
liberalisation and mutual opening of their markets fo r investments and trade in services, taking into 
account relevant provisions of the Genera l Agreement on Trade in Services (GATS). 
2. The Parties will discuss in the Joint Committee th is cooperation with the aim of developing 
and deepening of their relations  governed in this Article. 
Article 35 
 
Evolutionary Clause
 
 
 Where a Party considers that it would be useful in the interests of the economies of the Parties 
to develop and deepen the relations  established by this Agreement by extending them to fields not 
covered thereby, it shall submit a reasoned request  to the other Party. The Joint Committee may 
examine such request and, where appropriate, ma y make recommendations, particularly with a view 
to opening negotiations.  
Article 36 
 
Joint Committee
 
 1. A Joint Committee is hereby established and shall be composed of the representatives of the 
Parties. 
2. The implementation of this Agreement shall be  supervised and administered by the Joint 
Committee. 
3. For the purpose of the proper implementation of this Agreement, the Parties shall exchange 
information and, upon request of a Party, shall ho ld consultations within the Joint Committee. The 
Joint Committee shall keep under review the possibilit y of further removal of the obstacles to trade 
between the Parties. 
4. The Joint Committee may take decisions in th e cases provided for in this Agreement. On 
other matters the Joint Committee may make recommendations. 
Article 37 
 
Procedures Of The Joint Committee
 
 1. For the proper implementation of this Agreem ent the Joint Committee shall meet whenever 
necessary. Each Party may request that a meeting be held. 
2. The Joint Committee shal l act by consensus. 
3. If the representative of a Party in the Joint Co mmittee has accepted a decision subject to the 
fulfilment of internal legal require ments, the decision shall enter in to force, if no later date is  WT/REG191/1 
 Page 15 
 
 
 contained therein, on the date of the receipt of a written notification as to the fulfilment of such 
requirements. 
4. The Joint Committee may decide to set up sub-committees and working groups, as it 
considers necessary to assist it in accomplishing its tasks. 
Article 38 
 
Customs Unions, Free Trade Areas And Frontier Trade  
 1. This Agreement shall not prevent the mainte nance or establishment of customs unions, free 
trade areas or arrangements for frontier trade to the extent that these do not negatively affect the trade 
regime of the Parties and in particular the provisi ons concerning rules of origin provided for by this 
Agreement. 
2. Upon request, the Parties shall inform each other on any agreement establishing customs 
unions or free trade areas concluded with other states. 
Article 39 
 
Territorial Application
 
  This Agreement shall apply to the custom territory of each Party.  
Article 40 
 
Annexes And Protocols
 
 1. Annexes and Protocols to this Agreem ent are an integral part of it.  
2. The Joint Committee may decide to amend the An nexes and Protocols of this Agreement in 
accordance with the national legislation of the Parties. 
Article 41 
 
Amendments
 
  Amendments to this Agreement shall enter into  force in accordance with the procedure laid 
down in Article 42 of this Agreement. 
 
Article 42 
 
Entry Into Force
 
 
 This Agreement shall enter into force on the first day of the second month following the date 
of the receipt of the last written notification by which Parties inform each other through diplomatic channels that the internal legal procedures for th e entry into force of this Agreement have been 
fulfilled.  WT/REG191/1 
Page 16  
 
 Article 43 
 
Validity And Termination
 
 1. This Agreement is concluded for an indefinite period of time. 
2. Each Party may denounce it through diplomatic ch annels by a written notification to the other 
Party. In such case the Agreement shall be terminat ed on the first day of the seventh month after the 
date on which the other Party received the notification.  3. The Parties agreed, that in case of accession of one of the Parties to the European Union, the 
Agreement will be terminated without any compensa tion for the other Party, on the day before the 
date of the accession to the EU. In that case, the Pa rty acceding to the EU shall inform the other Party 
of such accession within a reasonable period of time. 
 IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorized thereto, 
have signed this Agreement. 
 
 DONE at ______________this ____ _day of __________ 200_, in two original copies, each 
of them in the Romanian, Bosnian/Croatian/Serbia n and English languages, all texts being equally 
authentic. In case of divergence of interpre tation, the English text shall prevail. 
  
FOR ROMANIA FOR BOSNIA AND HERZEGOVINA 
  
__________