. /.   WORLD TRADE  
ORGANIZATION  G/C/W/556 
4 July 2006 
 (06-3227) 
Council for Trade in Goods  
  
 
 
EUROPEAN COMMUNITIES' PREFERENCES FOR ALBANIA,  
BOSNIA AND HERZEGOVINA, CROATIA, SERBIA AND MONTENEGRO, AND THE 
FORMER YUGOSLAV REPUBLIC OF MACEDONIA  
 
Draft Decision of ... 2006
1 
 
 The General Council,   Having regard to paragraphs 3 and 4 of Article IX of the Marrakesh Agreement Establishing 
the World Trade Organization ("WTO Agreement");  
  Conducting the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;   Taking note  of the request of the European Comm unities for a waiver from its obligations 
under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the European 
Communities to afford duty-free or preferential treatme nt to eligible products originating in Albania, 
Bosnia and Herzegovina, Croatia, Montenegro, Serbia and the customs territory of Kosovo
2, and the 
former Yugoslav Republic of Macedonia, without be ing required to extend the same duty-free or 
preferential treatment to like products of any other WTO Member; 
 
 Recalling the 1979 Decision of Differential and More  Favourable Treatment, Reciprocity and 
Fuller Participation of Developing Countries a nd the 1994 Decision on Measures in favour of Least-
Developed Countries;   Recalling that the General Council, in a Decision of 8 December 2000
3, granted a waiver to 
the European Communities from obligations under pa ragraph 1 Article I of the GATT 1994 that will 
expire on 31 December 2006;   Considering  the exceptional situation in Albania, Bosnia and Herzegovina, Croatia, Serbia 
and Montenegro and the former Yugoslav Republic of Macedonia that continues to exist and the 
efforts being made by WTO Members to provide for the preservation of peace and for economic 
reconstruction;   Considering  that the duty-free and preferential treatme nt to eligible products the European 
Communities affords to these countries is intended to  promote economic expansion and recovery in a 
manner consistent with the objectives of the GATT 1994 and not to create barriers to the trade of 
other WTO Members;  
                                                     
 
1 Adopted in accordance with the Procedures on WTO Decision-Making under Articles IX and XII of 
the WTO Agreement agreed by the General Council (WT/L/93). 
2 "Kosovo" as defined by the United Nations Security Council Resolution N° 1244. 
3 WT/L/380 and Corr.1. G/C/W/556 
Page 2  
 
   Noting  that Albania, Croatia and the former  Yugoslav Republic of Macedonia are WTO 
Members, whilst Bosnia and Herzegovina, Montenegro  and Serbia have yet to accede to the WTO;  
  Decides , in view of the exceptional circumstances set out above, that : 
 
1. Subject to the conditions set out in this Decisi on, the provisions of paragraph 1 of Article I of 
the GATT 1994 shall be waived until 31 December  2011 to the extent necessary to permit the 
European Communities to afford duty-free or preferen tial treatment to eligible products originating in 
Albania, Bosnia and Herzegovina, Croatia, Monteneg ro, Serbia and the customs territory of Kosovo 
and the former Yugoslav Republic of Macedonia, wi thout being required to extend the same duty-free 
or preferential treatment to like products of any other WTO Member. 
 2. Such duty-free or preferential treatment sha ll not raise new barriers to the trade of other 
members.  The European Communities shall consult promptly with any member on the operation of 
its preferential or duty-free concessions in respect of the countries listed in paragraph 1 of this 
Decision, or on any other matter arising in respect of  this Decision.  Where a Member considers that 
its benefits under the GATT 1994 are or may be im paired unduly as a result of measures put in place 
by the European Communities and covered by th is Decision, the European Communities shall 
examine the possibility of a satisfactory adjustment  of the matter.  This Decision does not affect 
Members' rights as set out in the Understanding in  Respect of Waivers of Obligations under the 
GATT 1994. 
 
3. The European Communities shall report annuall y to the General Council on the preferences 
and duty-free treatment afforded to products from the countries listed in paragraph 1, including the 
extent to which such preferences and duty-free treatment differ from the European Communities' 
MFN and GSP concessions, with a view to facilitati ng the annual review provided for in paragraph 4 
of Article IX of the WTO Agreement. 
 4. Accession to the WTO by Bosnia and Herzegovi na, Montenegro or Serbia will not affect the 
application of this Decision.   
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