with a view to concluding a bilateral agreement establishing a free trade area consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT GATT 1994). Kosovo shall start negotiations as soon as possible with a view to having the above mentioned agreements entering into force as quickly as possible.

(b) whose products do not benefit from the tariff concessions under this Agreement,

In this context, the parties note that Kosovo shall start negotiations with those countries which:

The European Union (hereinafter referred to as the “EU”) recalls the obligation of those countries that have established a customs union with the EU to align their trade regime to the one of the EU, and for some of them, to conclude preferential agreements with trade partners having preferential trade agreements with the EU.

2. The SAC shall, no later than six months after the entry into force of this Protocol, complement the Rules of Procedure with a Code of Conduct guaranteeing the independence and impartiality of arbitrators.

1. The SAC shall, no later than six months after the entry into force of this Protocol, adopt the Rules of Procedure for the conduct of the arbitration panel proceedings.

3. Any deadline referred to in this Protocol may also be extended by the chairperson of the arbitration panel, on a reasoned request of either of the Parties or upon his own initiative.

2. Any timelimit referred to in this Protocol may be extended by mutual agreement of the Parties.

1. All timelimits laid down in this Protocol shall be counted in calendar days from the day following the act or fact to which they refer.

(c) This Protocol shall not preclude a Party from implementing the suspension of obligations authorised by a WTO Dispute Settlement Body.

(b) The right of eiter Party to have recourse to the dispute settlement provisions of this Protocol shall be without prejudice to any action in the WTO framework, including dispute settlement action. However, where a Party has, with regard to a particular measure, instituted a dispute settlement proceeding, either under Article 3(1) of this Protocol or under the WTO Agreement, it may not institute a dispute settlement proceeding regarding the same measure in the other forum until the first proceeding has ended. For the purposes of this paragraph, dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO;

(a) Arbitration panels set up under this Protocol shall not adjudicate disputes on each Party's rights and obligations under the Agreement establishing the World Trade Organisation;

In the event of the accession of Kosovo to the World Trade Organisation (WTO), should objective circumstances so permit, the following shall apply:

2. Arbitrators should have specialised knowledge and experience of law, including international law, Union law and/or international trade. They shall be independent, serve in their individual capacities and not be affiliated with, or take instructions from any organisation or government, and shall comply with the Code of Conduct referred to in Article 18.

1. The Stabilisation and Association Committee shall, no later than six months after the entry into force of this Protocol, establish a list of 15 persons who are willing and able to serve as arbitrators. Each of the Parties shall select five persons to serve as arbitrators. The Parties shall also agree on five persons which shall act as chairperson to the arbitration panel. The Stabilisation and Association Committee will ensure that the list is always maintained at this level.

2. All rulings of the arbitration panel shall be binding on the Parties. They shall be notified to the Parties and to the Stabilisation and Association Committee, which shall make them publicly available unless it decides by consensus not to do so.

1. All decisions of the arbitration panel, including the adoption of the ruling, shall be taken by majority vote.

The arbitration panel shall apply and interpret this Agreement in accordance with customary rules of interpretation of public international law, including the Vienna Convention on the Law of Treaties. The arbitration panel shall not provide any interpretation of the EU acquis. The fact that a provision is identical in substance to a provision of the Treaty on European Union and the Treaty on the Functioning of the European Union shall not be decisive in the interpretation of that provision.

Interested parties shall be authorised to submit amicus curiae briefs to the arbitration panel under the conditions laid down in the Rules of Procedure referred to in Article 18.

At the request of a Party, or upon its own initiative, the panel may seek information from any source it deems appropriate for the panel proceeding. The panel shall also have the right to seek the opinion of experts as it deems appropriate. Any information obtained in this manner shall be disclosed to both Parties and shall be open for comments by both of them.

The meetings of the arbitration panel shall be open to the public under the conditions laid down in the Rules of Procedure referred to in Article 18, unless the arbitration panel decides otherwise on its own initiative or at the request of the Parties.

3. In the event of the original arbitration panel, or some of its members, being unable to reconvene, the procedures laid down in Article 4 shall apply. The period for notifying the ruling remains 45 days from the date of the panel’s establishment.

2. If the Parties do not reach an agreement on the compatibility of the notified measure with this Agreement within 30 days of the date of the submission of the notification, the complaining Party may request, in writing, that the chairperson of the original arbitration panel rule on the matter. Such request shall be notified simultaneously to the other Party and to the Stabilisation and Association Committee. The arbitration panel ruling shall be notified within 45 days of the date of the submission of the request. If the arbitration panel rules that any measure taken to comply is not in conformity with this Agreement, the arbitration panel will determine whether the complaining party can continue the suspension of benefits at the original or at a different level. If the arbitration panel rules that any measure taken to comply is in conformity with this Agreement, the suspension of benefits shall be terminated.

1. The Party complained against shall notify the other Party and the Stabilisation and Association Committee of any measure it has taken to comply with the ruling of the arbitration panel and of its request for an end to the suspension of benefits applied by the complaining Party.

Review of any measure taken to comply after the suspension of benefits

4. The suspension of benefits shall be temporary and shall be applied only until any measure found to violate this Agreement has been withdrawn or amended so as to bring it into conformity with this Agreement, or until the Parties have agreed to settle the dispute.

3. If the Party complained against considers that the level of suspension is not equivalent to the adverse economic impact caused by the violation, it may request, in writing and before the expiry of the tenday period referred to in paragraph 2, that the chairperson of the original arbitration panel reconvene the original arbitration panel. The arbitration panel shall notify its ruling on the level of the suspension of benefits to the Parties and to the Stabilisation and Association Committee within 30 days of the date of the submission of the request. Benefits shall not be suspended until the arbitration panel has issued its ruling, and any suspension shall be consistent with the ruling of the arbitration panel.

2. If no agreement on compensation is reached within 30 days of the end of the reasonable period of time, or of the arbitration panel ruling under Article 8 that a measure taken to comply is not in conformity with this Agreement, the complaining Party shall be entitled, upon notification to the other Party and to the Stabilisation and Association Committee, to suspend the application of benefits granted under the provisions referred to in Article 2 of this Protocol at a level equivalent to the adverse economic impact caused by the violation. The complaining Party may implement the suspension ten days after the date of the notification, unless the Party complained against has requested arbitration under paragraph 3.

1. If the Party complained against fails to notify any measure taken to comply with the arbitration panel ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that the measure notified under Article 8(1) is not in conformity with that Party's obligations under this Agreement, the Party complained against shall, if so requested by the complaining Party, present an offer for temporary compensation.

3. In the event of the original arbitration panel, or some of its members, being unable to reconvene, the procedures laid down in Article 4 shall apply. The timelimit for notifying the ruling remains 45 days from the date of the panel’s establishment.

2. In the event that there is disagreement between the Parties concerning the compatibility of any measure notified under paragraph 1 of this Article, with the provisions referred to in Article 2, the complaining Party may request the original arbitration panel to rule on the matter. Such request shall explain why the measure is not in conformity with this Agreement. Once reconvened, the arbitration panel shall issue its ruling within 45 days of the date of its reestablishment.

1. The Party complained against shall notify the other Party and the Stabilisation and Association Committee before the end of the reasonable period of time of any measure that it has taken to comply with the arbitration panel ruling.

Review of any measure taken to comply with the arbitration panel ruling

3. In the event of the original panel, or some of its members, being unable to reconvene, the procedures set out in Article 4 shall apply. The timelimit for notifying the ruling remains 20 days from the date of the panel’s establishment.

2. If there is disagreement between the Parties on the reasonable period of time to comply with the arbitration panel ruling, the complaining Party may request the Stabilisation and Association Committee, within 20 days of the notification made under paragraph 1, to reconvene the original arbitration panel to determine the length of the reasonable period of time. The arbitration panel shall notify its ruling within 20 days from the date of the submission of the request.

1. No later than 30 days after the notification of the arbitration panel ruling to the Parties, the Party complained against shall notify the complaining Party of the time it will require for compliance (hereinafter referred to as “reasonable period of time”). Both parties shall endeavour to agree on the reasonable period of time.

Each Party shall take any measure necessary to comply with the arbitration panel ruling, and the Parties will endeavour to agree on the reasonable period of time to comply with the ruling.

5. The arbitration panel shall, at the request of both Parties, suspend its work at any time for a period not exceeding 12 months. Once the period of 12 months has been exceeded, the authority for the establishment of the panel will lapse, without prejudice to the right of the complaining Party to request at a later stage the establishment of a panel on the same measure.

4. The complaining Party may withdraw its complaint by written notification to the chairperson of the arbitration panel, the Party complained against and the Stabilisation and Association Committee, at any time before the ruling is notified to the Parties and the Stabilisation and Association Committee. Such withdrawal is without prejudice to the complaining Party’s right to introduce a new complaint regarding the same measure at a later point in time.

3. The ruling shall set out the findings of fact, the applicability of the relevant provisions of this Agreement and the basic rationale behind any findings and conclusions that it makes. The ruling may contain recommendations on the measures to be adopted for compliance with it.

2. In cases of urgency, including those involving perishable goods, the arbitration panel shall make every effort to issue its ruling within 45 days from the date of the establishment of the panel. Under no circumstance should it take longer than 100 days from the date of the establishment of the panel. The arbitration panel may give a preliminary ruling within ten days of its establishment on whether it deems the case to be urgent.

1. The arbitration panel shall notify its ruling to the Parties and to the Stabilisation and Association Committee within 90 days from the date of the establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the panel must notify the Parties and the Stabilisation and Association Committee in writing, stating the reasons for the delay. Under no circumstances should the ruling be issued later than 120 days from the date of the establishment of the panel.

7. If an arbitrator is unable to participate in the proceeding, withdraws or is replaced pursuant to paragraph 6, a replacement shall be selected within five days in accordance with the selection procedures followed to select the original arbitrator. The panel proceedings will be suspended for the period taken to carry out this procedure.

Where a Party considers that the chairperson of the arbitration panel does not comply with the Code of Conduct referred to in Article 18, the matter shall be referred to one of the remaining members of the pool of arbitrators selected to act as chairperson, his name being drawn by lot by the chairperson of the Stabilisation and Association Committee, or his delegate, in the presence of a representative of each Party, unless otherwise agreed between the Parties.

6. Where a Party considers that an arbitrator does not comply with the requirements of the Code of Conduct referred to in Article 18, the Parties shall consult and, if they so agree, replace the arbitrator and select a replacement pursuant to paragraph 7. Where the Parties fail to agree on the need to replace an arbitrator, the matter shall be referred to the chairperson of the arbitration panel, whose decision will be final.

5. The date of establishment of the arbitration panel shall be the date on which the chairperson of the panel is informed of the appointment in common agreement between the Parties of the three arbitrators or, as the case may be, the date of their selection in accordance with paragraph 3.

4. The selection of the arbitrators by the chairperson of the Stabilisation and Association Committee, or his delegate, shall be done in the presence of a representative of each Party.

In case the Parties agree on one or more of the members of the arbitration panel, any remaining members shall be appointed in accordance with the same procedure.

3. In the event that the Parties are unable to agree on the composition of the arbitration panel within the time frame referred to in paragraph 2, either Party may request the chairperson of the Stabilisation and Association Committee, or his delegate, to select all three members by lot from the list established under Article 15, one among the individuals proposed by the complaining Party, one among the individuals proposed by the Party complained against and one among the arbitrators selected by the Parties to act as chairperson.

2. Within ten days of the date of the submission of the request for the establishment of an arbitration panel to the Stabilisation and Association Committee, the Parties shall consult in order to reach an agreement on the composition of the arbitration panel.

2. The complaining Party shall state in its request the subjectmatter of the dispute and, as the case may be, the measure adopted by the other Party, or the failure to act, which it considers to be in breach of the provisions referred to in Article 2.

1. Where the Parties have failed to resolve the dispute, the complaining Party may under the conditions of Article 137 of this Agreement, submit a request in writing for the establishment of an arbitration panel to the Party complained against as well as to the Stabilisation and Association Committee.

Articles 78(1) (Traderelated aspects of intellectual property) and Article 79(1), the first subparagraph of paragraph 2 and paragraphs 3 to 5 and 8 (public procurement).

(a) Title IV (Free movement of goods), except Articles 35, 42, 43(1), (4) and (5) (insofar as these concern measures adopted under Article 43(1) and Article 49;

This Protocol shall only apply with respect to any differences concerning the interpretation and application of the following provisions, including where a Party considers that a measure adopted by the other Party, or a failure of the other Party to act, is in breach of its obligations under these provisions:

The objective of this Protocol is to avoid and settle disputes between the Parties with a view to arriving at mutually acceptable solutions.

3. In respect of questions relating to the applicability of this Protocol, the Parties shall consult each other to resolve the matter in the framework of the Stabilisation and Association Committee set up under Article 129 of this Agreement.

2. Notwithstanding paragraph 1, this Protocol shall take precedence over any bilateral Agreement on mutual assistance which has been or may be concluded between individual Member States and Kosovo insofar as the latter is incompatible with this Protocol.

(c) not affect the EU provisions governing the communication between the competent services of the European Commission and the customs authorities of the Member States of any information obtained under this Protocol which could be of interest to the EU.

(b) be deemed complementary to Agreements on mutual assistance which have been or may be concluded between individual Member States and Kosovo;

(a) not affect the obligations of the Parties under any other international Agreement or Convention;

1. Taking into account the respective competencies of the EU and the Member States, this Protocol shall:

2. The Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Protocol.

1. The implementation of this Protocol shall be entrusted, on the one hand, to the customs authorities of Kosovo and, on the other hand, to the competent services of the European Commission and the customs authorities of the Member States as appropriate. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration the rules in force in particular in the field of data protection. They may recommend to the competent bodies amendments which they consider should be made to this Protocol.

The Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses, and those to interpreters and translators who are not public service employees.

An official of a requested authority may be authorised to appear, within the limitations of the authorisation granted, as an expert or witness in administrative or related proceedings regarding the matters covered by this Protocol, and produce such objects, documents or certified copies thereof, as may be needed for the proceedings. The request for appearance must indicate specifically before which authority the official will have to appear, on what matters and by virtue of what title or qualification the official will be questioned.

4. Information obtained shall be used solely for the purposes of this Protocol. Where one of the Parties wishes to use such information for other purposes, it shall obtain the prior written consent of the authority which provided the information. Such use shall then be subject to any restrictions laid down by that authority.

3. The use, in administrative and related proceedings instituted in respect of operations in breach of customs legislation, of information obtained under this Protocol, is considered to be for the purposes of this Protocol. Therefore, the Parties may, in their records of evidence, reports, testimonies and charges brought in the context of administrative and related proceedings, use as evidence information obtained and documents consulted in accordance with this Protocol. The competent authority which supplied that information or gave access to those documents shall be notified of such use.

2. Personal data may be exchanged only where the Party which may receive them undertakes to protect such data in a manner that is considered adequate by the Party that may supply them.

1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a confidential or restricted nature, depending on the rules applicable in each of the Parties. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to similar information under the relevant laws of the Party that received it.

4. For the cases referred to in paragraphs 1 and 2, the decision of the requested authority and the reasons therefor must be communicated to the applicant authority without delay.

3. Where the applicant authority seeks assistance which it would itself be unable to provide if so requested, it shall draw attention to that fact in its request. It shall then be for the requested authority to decide how to respond to such a request.

2. Assistance may be postponed by the requested authority on the ground that it will interfere with an ongoing investigation, prosecution or proceeding. In such a case, the requested authority shall consult with the applicant authority to determine if assistance can be given subject to such terms or conditions as the requested authority may require.

(a) be likely to prejudice public policy, security or other essential interests, in particular in the cases referred to under Article 10(2); or

1. Assistance may be refused or may be subject to the satisfaction of certain conditions or requirements, in cases where a Party is of the opinion that assistance under this Protocol would:

3. Original documents shall be transmitted only upon request in cases where certified copies would be insufficient. These originals shall be returned at the earliest opportunity.

1. The requested authority shall communicate results of inquiries to the applicant authority in writing together with relevant documents, certified copies or other items.

4. Duly authorised officials of a Party involved may, with the agreement of the other Party, be involved and subject to the conditions laid down by the latter, be present at inquiries carried out in the latter’s territory.

3. Duly authorised officials of a Party may, with the agreement of the other Party, be involved and subject to the conditions laid down by the latter, be present to obtain in the offices of the requested authority or any other authority concerned in accordance with paragraph 1, information relating to activities that are or may be operations in breach of customs legislation which the applicant authority needs for the purposes of this Protocol.

2. Requests for assistance shall be executed in accordance with the legal or regulatory provisions of the requested Party.

1. In order to comply with a request for assistance, the requested authority shall proceed, within the limits of its competence and available resources, as though it were acting on its own account or at the request of other authorities of that same Party, by supplying information already possessed, by carrying out appropriate inquiries or by arranging for them to be carried out. This provision shall also apply to any other authority to which the request has been addressed by the requested authority when the latter cannot act on its own.

4. If a request does not meet the formal requirements set out above, the requested authority may request its correction or completion. Pending such correction or completion, precautionary measures may be ordered.

3. Requests shall be submitted in an official language of the requested authority or in a language acceptable to that authority. This requirement shall not apply to any documents that accompany the request under paragraph 1.

(f) a summary of the relevant facts and of the inquiries already carried out.

(e) indications as exact and comprehensive as possible on the natural or legal persons who are the target of the investigations;

(c) the object of and the reason for the request;

1. Requests pursuant to this Protocol shall be made in writing. They shall be accompanied by the documents necessary to enable compliance with the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

Requests for delivery of documents or notification of decisions shall be made in writing in an official language of the requested authority or in a language acceptable to that authority.

emanating from the applicant authority and falling within the scope of this Protocol, to an addressee residing or established in the territory of the requested authority.

At the request of the applicant authority, the requested authority shall, in accordance with legal or regulatory provisions applicable to the latter, take all necessary measures in order:

(e) means of transport in respect of which there are reasonable grounds for believing that they have been, are, or may be used in operations in breach of customs legislation.

(d) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been involved in operations in breach of customs legislation;

(c) goods known to be subject to operations in breach of customs legislation;

(b) new means or methods employed in carrying out operations in breach of customs legislation;

(a) activities which are or appear to be operations in breach of customs legislation and which may be of interest to the other Party;

The Parties shall assist each other, at their own initiative and in accordance with their legal or regulatory provisions, if they consider such assistance to be necessary for the correct application of customs legislation, particularly by providing information obtained pertaining to:

(d) means of transport that are or may be used in such a way that there are reasonable grounds for believing that they are intended to be used in operations in breach of customs legislation.

(c) goods that are or may be transported in such a way that there are reasonable grounds for believing that they are intended to be used in operations in breach of customs legislation;

(b) places where stocks of goods have been or may be assembled in such a way that there are reasonable grounds for believing that these goods are intended to be used in operations in breach of customs legislation;

(a) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been involved in operations in breach of customs legislation;

3. At the request of the applicant authority, the requested authority shall, within the framework of its legal or regulatory provisions, take the necessary steps to ensure special surveillance of:

(b) whether goods imported into the territory of one of the Parties have been properly exported from the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.

(a) whether goods exported from the territory of one of the Parties have been properly imported into the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods;

2. At the request of the applicant authority, the requested authority shall inform it:

1. At the request of the applicant authority, the requested authority shall provide it with all relevant information which may enable it to ensure that customs legislation is correctly applied, including information regarding activities noted or planned which are or could be operations in breach of customs legislation.

3. Assistance to recover duties, taxes or fines is not covered by this Protocol.

2. Assistance in customs matters, as provided for in this Protocol, shall apply to any administrative authority of the Parties which is competent for the application of this Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover information obtained under powers exercised at the request of a judicial authority, except where communication of such information is authorised by that authority.

1. The Parties shall assist each other, in the areas within their competence, in the manner and under the conditions laid down in this Protocol, to ensure the correct application of the customs legislation, in particular by preventing, investigating and combating operations in breach of that legislation.

(c) “requested authority” means a competent administrative authority which has been designated by a Party for this purpose and which receives a request for assistance on the basis of this Protocol;

(b) “applicant authority” means a competent administrative authority which has been designated by a Party for this purpose and which makes a request for assistance on the basis of this Protocol;

(a) “customs legislation” means any legal or regulatory provisions applicable in the territories of the Parties, governing the import, export and transit of goods and their placing under any other customs regime or procedure, including measures of prohibition, restriction and control;

2. Until the beginning of the application of such newly negotiated rules of origin, the rules of origin contained in Appendix I to the Regional Convention and, where appropriate, the relevant provisions of Appendix II to the Regional Convention, applicable at the moment of withdrawal, shall continue to apply to this Agreement. However, as of the moment of withdrawal, the rules of origin contained in Appendix I to the Regional Convention and, where appropriate, the relevant provisions of Appendix II to the Regional Convention shall be construed so as to allow bilateral cumulation between the EU and Kosovo only.

1. Should either the EU or Kosovo give notice in writing to the depositary of the Regional Convention of their intention to withdraw from the Regional Convention in accordance with Article 9 thereof, the EU and Kosovo shall immediately enter into negotiations on rules of origin for the purpose of implementing the Agreement.

In all cases the settlement of disputes between the importer and the customs authorities of the place of import shall take place under the legislation of the latter.

Where disputes arise in relation to the verification procedures of Article 32 of Appendix I to the Regional Convention which cannot be settled between the customs authorities requesting the verification and the customs authorities responsible for carrying out this verification, they shall be submitted to the SAC.

Notwithstanding Articles 16(5) and 21(3) of Appendix I to the Regional Convention, where cumulation involves only EFTA States, the Faroe Islands, the EU, Turkey and the participants in the SAP, the proof of origin may be a movement certificate EUR.1 or an origin declaration.

All references to the “relevant agreement” in Appendix I to the Regional Convention and in the relevant provisions of Appendix II to the Regional Convention shall be construed so as to mean this Agreement.

For the purpose of implementing this Agreement, Appendix I and the relevant provisions of Appendix II to the Regional Convention on panEuroMediterranean preferential rules of origin (hereinafter referred to as “the Regional Convention”), shall apply.

As referred to in Article 12 of Annex II of this Protocol

výber … putňový, (the space marked by the dots is to be completed by the numbers 36)

aszú … puttonyos, (the space marked by the dots is to be completed by the numbers 36

As referred to in Articles 4 and 7 of Annex II of this Protocol

(as referred to in Articles 4 and 6 of Annex II of this Protocol)

2. Except where provisions to the contrary are adopted by the Parties, wines, spirit drinks or aromatised wines which have been produced, prepared, described and presented in compliance with this Agreement but whose production, preparation, description and presentation cease to comply with this Agreement as a result of an amendment thereto may continue to be marketed until stocks run out.

1. Wines, spirit drinks or aromatised wines which, at the time of the entry into force of this Agreement, have been produced, prepared, described and presented in compliance with the internal laws and regulations of the Parties but are prohibited by this Agreement may be sold until stocks run out.

The case of exemption referred to in point a shall not be combined with one or more of the cases of exemption referred to in point b.

(v) quantities which are imported for diplomatic, consular or similar establishments as part of their dutyfree allowance;

(iv) quantities which are imported for the purpose of scientific or technical experiments, subject to a maximum of 1 hectolitre;

(iii) quantities which are forming part of the belongings of private individuals who are moving house;

(ii) quantities which are sent in consignments from one private individual to another in quantities not exceeding 30 litres;

(b) (i) quantities which are contained in the personal luggage of travellers in quantities not exceeding 30 litres;

(a) quantities in labelled containers of not more than 5 litres fitted with a nonreusable closing device where the total quantity transported, whether or not made up of separate consignments, does not exceed 50 litres;

2. The following products referred to wines, spirit drinks and aromatised wines shall be considered to be small quantities:

(b) originate in the territory of one of the Parties and which are consigned in small quantities between those Parties under the conditions and according to the procedures provided for in paragraph II.

(a) pass in transit through the territory of one of the Parties, or

1. This Agreement shall not apply to wines, spirit drinks and aromatised wines, which:

4. If, following the consultations provided for in paragraphs 1 and 3, the Parties have not reached agreement, the Party which requested the consultations or which took the measures referred to in paragraph 3 may take appropriate measures in accordance with Article 136 of the Stabilisation and Association Agreement so as to permit the proper application of the Agreement in this Annex.

3. In cases where any delay could endanger human health or impair the effectiveness of measures to control fraud, appropriate interim protective measures may be taken, without prior consultation, provided that consultations are held immediately after the taking of these measures.

2. The Party which requests the consultations shall provide the other Party with all the information necessary for a detailed examination of the case in question.

1. The Parties shall enter into consultations if one of them considers that the other has failed to fulfil an obligation under this Agreement.

4. The information to be provided in accordance with paragraph 3 shall include details of the noncompliance with the rules governing the wine, spirit drink and aromatised wine sector of the Party and/or this Agreement and shall be accompanied by official, commercial or other appropriate documents, with details of any administrative measures or legal proceedings that may, if necessary, be taken.

it shall immediately inform the representative body of the other Party.

(b) this noncompliance is of particular interest to the other Party and could result in administrative measures and/or legal proceedings being taken,

(a) a wine, spirit drink or aromatised wine as defined in Article 2 of this Protocol, being or having been traded in the EU and Kosovo , does not comply with rules governing the wine, spirit drink or aromatised wine sector in the EU or in Kosovo or with this Agreement; and

3. If one of the Parties has reason to suspect that:

(b) where containers are used which are misleading as to the origin of the wine.

(a) where descriptions or translation of description, names, inscriptions or illustrations relating to wine, spirit or aromatised wine drinks whose names are protected under this Agreement are used, directly or indirectly, which give false or misleading information as to the origin, nature or quality of the wine, spirit drink or aromatised wine;

2. The measures and proceedings referred to in paragraph 1 shall be taken in particular:

1. If the description, presentation or labelling of a wine, spirit drink or aromatised wine is in breach of this Agreement, the Parties shall apply the necessary administrative measures and/or shall initiate legal proceedings with a view to combating unfair competition or preventing the wrongful use of the protected name in any other way.

1. The Parties designate the contact points set out in Appendix 3 to be responsible for the application and operation of this Agreement.

(e) notify each other of any legislative, administrative and judicial decisions concerning the implementation of this Agreement and inform each other of measures adopted on the basis of such decisions.

(d) inform each other of the intention to decide new regulations or amendments of existing regulations of public policy concern, such as health or consumer protection, with implications for the wine, spirit and aromatised wine sector;

(b) mutually decide, by decision of the Stabilisation and Association Committee, that the Appendices to this Agreement should be modified. The Appendices shall be deemed to be modified from the date recorded in an exchange of letters between the Parties, or the date of the Working Group decision, as the case requires;

(a) establish and amend by decision of the Stabilisation and Association Committee the lists referred to in Article 4, to take account of any amendments to the laws and regulations of the Parties;

3. The representative body shall ensure the coordination of the activities of all the bodies responsible for ensuring the enforcement of this Agreement.

2. Kosovo designates the Ministry of Agriculture and Rural Development as its representative body. The EU designates the DirectorateGeneral Agriculture and Rural Development of the European Commission, as its representative body. A Party shall notify the other Party if it changes its representative body.

1. The Parties shall either directly or through the Working Group referred to in Article 10 maintain contact on all matters relating to the implementation and functioning of this Agreement.

3. The Working Group may make recommendations, discuss and put forward suggestions on any matter of mutual interest in the wine, spirit drink and aromatised wine sector which would contribute to the attainment of the objectives of this Agreement. It shall meet at the request of either of the Parties, alternatively in the EU and in Kosovo, at time and a place and in a manner mutually determined by the Parties.

2. The Working Group shall see to the proper functioning of this Agreement and shall examine all questions which may arise in implementing it.

1. A Working Group functioning under the auspices of the SubCommittee on Agriculture to be created in accordance with Article 130 of the Stabilisation and Association Agreement between the EU and Kosovo shall be established.

The Parties shall take all steps necessary to ensure that, where wines, spirit drinks and aromatised wines originating in a Party are exported and marketed outside that Party, the protected geographical indications referred to in Article 4(a), second indent, and 4(b) and in the case of wines, the traditional terms of that Party referred to in Article 4(a)(iii) are not used to describe and present such products which originate in the other Party.

3. Kosovo shall adopt the necessary measures to amend all trade marks so as to fully remove all reference to EU geographical indications protected under Article 4 of Title I of this Agreement. All said references shall be removed upon the entry into force of this Agreement.

2. The responsible offices of the Parties shall refuse the registration of a trade mark for a wine which contains or consists of a traditional term protected under this Agreement if the wine in question is not one for which the traditional term is reserved as indicated in Appendix 2.

1. The responsible offices of the Parties shall refuse the registration of a trade mark for a wine, spirit drink or aromatised wine which is identical with, or similar to, or contains or consists of a reference to a geographical indication protected under Article 4 of Title I of this Agreement if its use would lead to any of the situations referred to in Article 6(5).

4. The protection provided for in paragraph 3 of this Article is without prejudice to Article 4.

(b) for a category of product in relation to which it is protected for the EU as set out in Appendix 2.

(a) to the language or languages in which it appear(s) in Appendix 2 and not in translation; and

2. Kosovo shall take the measures necessary, in accordance with this Agreement, for the protection of the traditional terms referred to in Article 4 and used for the description and presentation of wines originating in the territory of the EU. To that end, Kosovo shall provide appropriate legal means to ensure an effective protection and prevent traditional terms from being used to describe wine not entitled to those traditional terms, even where the traditional terms used are accompanied by expressions such as “kind”, “type”, “style”, “imitation”, “method” or the like.

(b) shall not be used for the description or presentation of wine originating in the EU otherwise than in relation to the wines of the origin and the category and in the language as listed in Appendix 2 and under the conditions provided for by the laws and regulations of the EU.

(a) shall not be used for the description or presentation of wine originating in Kosovo; and

10. On the entry into force of this Agreement, the Parties shall no longer deem that the protected geographical names listed in Appendix 1 are customary in the common language of the Parties as a common name for wines, spirit drinks and aromatised wines as provided for in Article 24(6) of the TRIPS Agreement.

9. Nothing in this Agreement shall oblige a Party to protect a geographical indication of the other Party listed in Appendix 1 which is not or ceases to be protected in its country of origin or which has fallen into disuse in that country.

8. This Agreement shall in no way prejudice the right of any person to use, in the course of trade, that person’s name or the name of that person’s predecessor in business, except where such name is used in such a manner as to mislead consumers.

7. If a geographical indication listed in Appendix 1 is homonymous with a geographical indication for a third country, Article 23(3) of the TRIPS Agreement applies.

6. If geographical indications listed in Appendix 1 are homonymous, protection shall be granted to each indication provided that it has been used in good faith. The Parties shall mutually decide the practical conditions of use under which the homonymous geographical indications will be differentiated from each other, taking into account the need to ensure equitable treatment of the producers concerned and that consumers are not misled.

(d) any other practice liable to mislead the consumer as to the true origin of the product.

(c) any other false or misleading indication as to the provenance, origin, nature or essential qualities on the description, presentation, or labelling of the product liable to convey a false impression as to its origin;

(b) any misuse, imitation or evocation, even if the true origin of the product or service is indicated or if the protected name is translated or accompanied by an expression such as “style”, “type”, “method”, “as produced in”, “imitation”, “flavour”, “like” or similar;

– in so far as such use exploits the reputation of a geographical indication;

– for comparable products not compliant with the product specification of the protected name, or

5. The geographical indications referred to in Article 4 shall be protected against:

4. The geographical indications referred to in Article 4 shall be reserved exclusively for the products originating in the territory of the Party to which they apply and may be used only under the conditions laid down in the laws and regulations of that Party.

3. The Parties shall take all measures necessary, in accordance with this Agreement, for the reciprocal protection of the names referred to in Article 4(a), second indent, and 4(b) , which are used for the description, labelling and presentation of wines, spirit drinks and aromatised wines originating in the territory of the Parties. To that end, each Party shall make use of the appropriate legal means referred to in Article 23 of the TRIPS Agreement to ensure an effective protection and prevent geographical indications from being used to identify wines, spirit drinks and aromatised wines not covered by the indications or the descriptions concerned.

(b) shall not be used otherwise than under the conditions provided for by the laws and regulations of Kosovo.

(a) shall be protected for wines, spirit drinks and aromatised wines originating in Kosovo, and

2. In the EU, the geographical indications for Kosovo, which are to be established and listed in Appendix 1, Part B:

(b) shall not be used otherwise than under the conditions provided for by the laws and regulations of the EU;

(a) shall be protected for wines, spirit drinks and aromatised wines originating in the EU, and

1. In Kosovo, the geographical indications for the EU which are listed in Appendix 1, Part A:

(b) shall not be used by Kosovo otherwise than under the conditions provided for by the laws and regulations of Kosovo.

(a) shall be reserved for wines, spirit drinks and aromatised wines originating in Kosovo, and

2. In the EU, references to Kosovo, and other names used to indicate Kosovo (whether or not followed by the name of a vine variety), for the purpose of identifying origin of the wine, spirit drink and aromatised wine:

(b) shall not be used by the EU otherwise than under the conditions provided for by the laws and regulations of the EU.

(a) shall be reserved for wines, spirit drinks and aromatised wines originating in the Member State concerned, and

1. In Kosovo, references to the Member States, and other names used to indicate a Member State, for the purpose of identifying origin of the wine, spirit drink and aromatised wine:

(b) as regards wines, spirit drinks or aromatised wines originating in Kosovo, the geographical indications to be established in accordance with Article 11(4) (a)

the geographical indications, listed in Appendix 1, Part A, points (a) for wines (b) for spirit drinks and (c) for aromatised wines,

references to the name of the Member State in which the wine, spirit drink and aromatised wine originates or other names to indicate the Member State,

Without prejudice to Articles 5, 6 and 7, the following shall be protected:

Unless otherwise provided for in this Agreement, importation and marketing of the products referred to in Article 2 shall be conducted in accordance with the laws and regulations applying in the territory of the Party.

(11) “vine varieties” means varieties of plants of Vitis Vinifera without prejudice to any legislation which a Party may have in respect of the use of different vine varieties in wine produced in that Party;

(10) “wine” means solely the beverage resulting from full or partial alcoholic fermentation of fresh grapes of the vine varieties, referred to in this Agreement whether or not crushed, or of its must;

(8) “packaging” means the protective wrappings, such as papers, envelopes of all kinds, cartons and cases, used in the transport and/or sale of one or more containers;

(7) “presentation” means the entirety of terms, allusions and the like referring to a wine, spirit drink or aromatised wine used on the labelling, on the packaging; on the containers, the closure, in advertising and/or sales promotion of any kind;

(6) “labelling” means all descriptions and other references, signs, designs, geographical indications or trade marks which distinguish wines, spirit drinks or aromatised wines and which appear on the same container, including its sealing device or the tag attached to the container and the sheathing covering the neck of bottles;

(5) “description” means the terms used on the labelling, presentation and packaging on the documents accompanying the transport of a drink; on the commercial documents, particularly invoices and delivery notes, and in its advertising;

(4) “homonymous” means the same geographical indication or same traditional term, or such a term so similar as to be likely to cause confusion, to denote different places, procedures or things;

(3) “traditional term” means a traditionally used name, as specified in Appendix 2, referring in particular to the method of production or to the quality, colour, type or place, or a particular event linked to the history of the wine concerned and recognised by the laws and regulations of a Party for the purpose of describing and presenting of such a wine originating in the territory of that Party;

(2) “geographical indication” as listed in Appendix 1 means an indication as defined in Article 22(1) of the Agreement on Trade Related Aspects of Intellectual Property Rights (hereinafter referred to as “the TRIPS Agreement”);

– a wine is produced entirely within the Party concerned solely from grapes which have been wholly harvested in that Party,

(1) “originating”, when used in relation to the name of a Party, means that:

For the purposes of this Agreement and except where otherwise expressly provided herein:

2. The Parties shall take all general and specific measures necessary to ensure that the obligations laid down by this Annex are fulfilled and that the objectives set out in this Annex are attained.

1. The Parties shall, on the basis of nondiscrimination and reciprocity, recognise, protect and control names of the products referred to in Article 2 of this Protocol in accordance with the conditions provided for in this Annex.

9. Consultations shall take place at the request of either Party on any problem relating to the way this Agreement is applied.

8. The Parties shall ensure that the benefits granted reciprocally are not called into question by other measures.

7. The Parties shall examine the opportunities for granting each other further concessions taking into account the development of wine trade between the Parties no later than three years after the entry into force of this Agreement.

6. Imports of wine under the concessions provided for in this Agreement shall be subject to the presentation of a certificate and an accompanying document in accordance with Commission Regulation (EC) No 436/2009 and Commission Regulation (EC) No 555/2008 to the effect that the wine in question complies with Article 2(1) of this Protocol. The certificate and an accompanying document shall be issued by a mutually recognised official body appearing on the lists drawn up jointly.

5. The rules of origin applicable under this Agreement shall be as set out in Protocol III.

4. Kosovo shall grant preferential zeroduty treatment as determined in point 3, subject to the condition that no export subsidies shall be paid for exports by the EU.

(iii) Upon entry into force of the Agreement, duties are set to zero for imports into Kosovo of wines originating in the EU as listed hereinafter.

In fermentation or with fermentation arrested otherwise than by the addition of alcohol

(e) on 1 January of the fourth year following the date of entry into force of this Agreement, the remaining import duties will be abolished.

(d) on 1 January of the third year following the date of entry into force of this Agreement, the import duty will be reduced to 20 % of basic duty, i.e. 2 %;

(c) on 1 January of the second year following the date of entry into force of this Agreement, the import duty will be reduced to 40 % of basic duty i.e. 4 %;

(b) on 1 January of the first year following the date of entry into force of this Agreement, the import duty will be reduced to 60 % of basic duty, i.e. 6 %;

(a) Upon entry into force of this Agreement, the import duty will be reduced to 80 % of basic duty, i.e. 8 %;

(ii) The basic duty to which the successive tariff reductions set out under this point are to be applied shall be the basic duty of 10 % applied in Kosovo as of 31 December 2013. Duty rates shall be reduced and eliminated as follows for each product listed under this point:

Wine, other than that referred to in subheading 2204 10, in bottles with “mushroom” stoppers held in place by ties or fastenings; wine, otherwise put up, with an excess pressure due to carbon dioxide in solution of not less than 1 bar but less than 3 bar, measured at a temperature of 20 °C

(g) on 1 January of the sixth year following the date of entry into force of this Agreement, the remaining import duties will be abolished.

(f) on 1 January of the fifth year following the date of entry into force of this Agreement, the import duty will be reduced to 10 of basic duty, i.e. 1 %;

(e) on 1 January of the fourth year following the date of entry into force of this Agreement, the import duty will be reduced to 30 % of basic duty, i.e. 3 %;

(d) on 1 January of the third year following the date of entry into force of this Agreement, the import duty will be reduced to 50 % of basic duty, i.e. 5 %;

(c) on 1 January of the second year following the date of entry into force of this Agreement, the import duty will be reduced to 70 % of basic duty i.e. 7 %;

(b) on 1 January of the first year following the date of entry into force of this Agreement, the import duty will be reduced to 80 % of basic duty, i.e. 8 %;

(a) Upon entry into force of this Agreement, the import duty will be reduced to 90 % of basic duty, i.e. 9 %;

(i) The basic duty to which the successive tariff reductions set out under this point are to be applied shall be the basic duty of 10 % applied in Kosovo as of 31 December 2013. Duty rates shall be reduced and eliminated as follows for each product listed under this point:

3. Imports into Kosovo of the following wines referred to in Article 2 of this Protocol shall be subject to the concessions set out below:

2. The EU shall grant a preferential zeroduty within the tariff quotas determined in point 1, subject to the condition that no export subsidies shall be paid for exports of these quantities by Kosovo.

1. Imports into the EU of the following wines referred to in Article 2 of this Protocol shall be subject to the concessions set out below:

(b) originate in Kosovo, and have been produced in conformity with the law of Kosovo which shall be in conformity with EU legislation.

(b) originate in Kosovo, and have been produced in conformity with the law of Kosovo which shall be in conformity with EU legislation.

(b) originate in Kosovo and have been produced in accordance with the rules governing the oenological practices and processes in conformity with the law of Kosovo. These rules governing the oenological practices and processes shall be in conformity with EU legislation.

(a) originate in the EU and have been produced in accordance with the rules governing the oenological practices and processes referred to in Regulation (EU) No 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products, in particular production rules in the wine sector, in accordance with Articles 75, 80, 81, 83 and 91 and annex VIII, Part I and II of that Regulation, and Commission Regulation (EC) No 606/2009 and Commission Regulation (EC) No 607/2009, in particular Articles 7, 57, 58, 64 and 66 and Annexes XIII, XIV and XVI of that Regulation;

(1) wines falling under heading 22.04 of the Harmonised System of the International Convention on the Harmonised Commodity Description and Coding System (hereinafter referred to as the “Harmonised System”), done at Brussels on 14 June 1983, which have been produced from fresh grapes, which:

The Agreements referred to in Article 1 of this Protocol shall apply to:

The lists referred to in Article 4(b) of the Agreement mentioned in point 2 of this Article shall be established at a later stage and approved in accordance with the procedure laid down in Article 11 of the Agreement.

(2) an Agreement on reciprocal recognition, protection and control of wine, spirits drinks and aromatised wine names (Annex II to this Protocol).

(1) an Agreement on reciprocal preferential trade concessions for certain wines (Annex I to this Protocol),

- - - Containing 2 % or less by weight of Dmannitol, calculated on the Dglucitol content

- - - Containing 2 % or less by weight of Dmannitol, calculated on the Dglucitol content

Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included:

- - Containing by weight of such substances 83 % or more

- - Containing by weight of such substances 70 % or more but less than 83 %

- - Containing by weight of such substances 55 % or more but less than 70 %

- - Containing by weight of such substances less than 55 %

Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included:

Dextrins and other modified starches (for example, pregelatinised or esterified starches); glues based on starches, or on dextrins or other modified starches:

- - - - - Containing no milkfats, sucrose, isoglucose, glucose, or starch or containing, by weight, less than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch

Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages:

Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted oleoresins; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic byproducts of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils:

- Smoking tobacco, whether or not containing tobacco substitutes in any proportion:

- - Of an alcoholic strength by volume of more than 45,4 % vol in containers holding:

- - Of an alcoholic strength by volume of 45,4 % vol or less in containers holding:

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages:

Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol or higher; ethyl alcohol and other spirits, denatured, of any strength

Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 2009:

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow:

- - - Containing no milkfats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch

- - Compound alcoholic preparations, other than those based on odoriferous substances, of a kind used for the manufacture of beverages

Ice cream and other edible ice, whether or not containing cocoa

- - - In tablet, cube or similar form, or in immediate packings of a net content not exceeding 1 kg

- Extracts, essences and concentrates, of tea or maté, and preparations with a basis of these extracts, essences and concentrates or with a basis of tea or maté:

- - Preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

- Extracts, essences and concentrates of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof

- - - - - Yams, sweet potatoes and similar edible parts of plants, containing 5 % or more by weight of starch

- Nuts, groundnuts and other seeds, whether or not mixed together:

Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006:

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006:

- - Yams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight of starch

Vegetables, fruits, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid:

- - - Completely or partially coated or covered with chocolate or other preparations containing cocoa:

Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products:

- Prepared foods obtained from unroasted cereal flakes or from mixtures of unroasted cereal flakes and roasted cereal flakes or swelled cereals

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, cornflakes); cereals (other than maize (corn)), in grain form, or in the form of flakes or other worked grains (except flour, groats and meal), precooked, or otherwise prepared, not elsewhere specified or included:

Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or similar forms

Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared:

- - - Containing no milkfats, sucrose, isoglucose, glucose or starch or containing less than 1,5 % milkfat, 5 % sucrose (including invert sugar) or isoglucose, 5 % glucose or starch, excluding food preparations in powder form of goods of headings 0401 to 0404

Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of headings 0401 to 0404, not containing cocoa or containing less than 5 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included:

- Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg:

- - Pastes, including marzipan, in immediate packings of a net content of 1 kg or more

- - Liquorice extract containing more than 10 % by weight of sucrose but not containing other added substances

- Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 % by weight of fructose:

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured

- - - Inedible mixtures or preparations of animal or of animal and vegetable fats and oils and their fractions

- - Animal or vegetable fats and oils and their fractions, boiled, soxidised, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516

Animal or vegetable fats and oils and their fractions, boiled, soxidised, dehydrated, sulphurised, blown, spolymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified or included:

- - Containing, by weight more than 10 % but not more than 15 % of milkfats

- - Containing, by weight more than 10 % but not more than 15 % of milkfats

Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of heading 1516:

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, reesterified or elaidinised, whether or not refined, but not further prepared:

Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified:

Other animal fats and oils and their fractions, whether or not refined, but not chemically modified

Vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds, rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark)

- - Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds:

Vegetable saps and extracts; pectic substances, pectinates and pectates; agaragar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

- Other (Seaweeds and other algae unfit for human consumption, other than used in pharmacy)

Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included:

Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption:

Animal products not elsewhere specified or included; dead animals of Chapter 1 or 3, unfit for human consumption:

Ambergris, castoreum, civet and musk; cantharides; bile, whether or not dried; glands and other animal products used in the preparation of pharmaceutical products, fresh chilled, frozen or otherwise provisionally preserved

Coral and similar materials, unworked or simply prepared but not otherwise worked; shells of molluscs, crustaceans or echinoderms and cuttlebone, unworked or simply prepared but not cut to shape, powder and waste thereof

Ivory, tortoiseshell, whalebone and whalebone hair, horns, antlers, hooves, nails, claws and beaks, unworked or simply prepared but not cut to shape; powder and waste of these products

Bones and horncores, unworked, defatted, simply prepared (but not cut to shape), treated with acid or degelatinised; powder and waste of these products

Skins and other parts of birds, with their feathers or down, feathers and parts of feathers (whether or not with trimmed edges) and down, not further worked than cleaned, disinfected or treated for preservation; powder and waste of feathers or parts of feathers

Pigs’, hogs’ or boars’ bristles and hair; badger hair and other brush making hair; waste of such bristles or hair

- - Of a fat content, by weight, of 60 % or more but not exceeding 75 %

- - Of a fat content, by weight, of 39 % or more but less than 60 %

Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

The basic duty to which the successive tariff reductions set out in this Annex are to be applied shall be the basic duty of 10 % applied in Kosovo as of 31 December 2013. Duty rates shall be reduced as follows.

- - - Containing 2 % or less by weight of Dmannitol, calculated on the Dglucitol content

- - - Containing 2 % or less by weight of Dmannitol, calculated on the Dglucitol content

Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included:

- - Containing by weight of such substances 83 % or more

- - Containing by weight of such substances 70 % or more but less than 83 %

- - Containing by weight of such substances 55 % or more but less than 70 %

- - Containing by weight of such substances less than 55 %

Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included:

- - Containing by weight 80 % or more of starches or dextrins or other modified starches

- - Containing, by weight, 55 % or more but less than 80 % of starches or dextrins or other modified starches

- - Containing, by weight, 25 % or more but less than 55 % of starches or dextrins or other modified starches

- - Containing, by weight, less than 25 % of starches or dextrins or other modified starches

Dextrins and other modified starches (for example, pregelatinised or esterified starches); glues based on starches, or on dextrins or other modified starches:

- - For industrial uses other than the manufacture of foodstuffs or fodder

- - - - - Containing no milkfats, sucrose, isoglucose, glucose, or starch or containing, by weight, less than 1,5 % milkfat, 5 %sucrose or isoglucose, 5 % glucose or starch

Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages:

Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted oleoresins; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic byproducts of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils:

- - - - Containing 2 % or less by weight of Dmannitol, calculated on the Dglucitol content

- - - - Containing 2 % or less by weight of Dmannitol, calculated on the Dglucitol content

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages:

Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol. or higher; ethyl alcohol and other spirits, denatured, of any strength:

Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 2009:

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow:

- - - Containing no milkfats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch:

- - Compound alcoholic preparations, other than those based on odoriferous substances, of a kind used for the manufacture of beverages

- - Containing no milkfats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch

Ice cream and other edible ice, whether or not containing cocoa:

Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof:

- - - - - Yams, sweet potatoes and similar edible parts of plants, containing 5 % or more by weight of starch

- Nuts, groundnuts and other seeds, whether or not mixed together:

Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006

- - Yams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight of starch

Vegetables, fruits, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid:

Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products:

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, cornflakes); cereals (other than maize (corn)), in grain form, or in the form of flakes or other worked grains (except flour, groats and meal), precooked, or otherwise prepared, not elsewhere specified or included:

Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or similar forms

Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared:

Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of headings 0401 to 0404, not containing cocoa or containing less than 5 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included:

- Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 % by weight of fructose

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured:

- - - Inedible mixtures or preparations of animal or of animal and vegetable fats and oils and their fractions

- - Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading1516

Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified or included:

- - Containing, by weight more than 10 % but not more than 15 % of milkfats

- - Containing, by weight more than 10 % but not more than 15 % of milkfats

Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of heading 1516:

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, reesterified or elaidinised, whether or not refined, but not further prepared:

Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified:

Other animal fats and oils and their fractions, whether or not refined, but not chemically modified

Vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds, rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark):

- - Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or sugar seeds:

Vegetable saps and extracts; pectic substances, pectinates and pectates; agaragar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

- - Other (Seaweeds and other algae unfit for human consumption, other than used in pharmacy)

Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included:

Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption:

Animal products not elsewhere specified or included; dead animals of Chapter 1 or 3, unfit for human consumption:

Ambergris, castoreum, civet and musk; cantharides; bile, whether or not dried; glands and other animal products used in the preparation of pharmaceutical products, fresh chilled, frozen or otherwise provisionally preserved

Coral and similar materials, unworked or simply prepared but not otherwise worked; shells of molluscs, crustaceans or echinoderms and cuttlebone, unworked or simply prepared but not cut to shape, powder and waste thereof

Ivory, tortoiseshell, whalebone and whalebone hair, horns, antlers, hooves, nails, claws and beaks, unworked or simply prepared but not cut to shape; powder and waste of these products

Bones and horncores, unworked, defatted, simply prepared (but not cut to shape), treated with acid or degelatinised; powder and waste of these products

Skins and other parts of birds, with their feathers or down, feathers and parts of feathers (whether or not with trimmed edges) and down, not further worked than cleaned, disinfected or treated for preservation; powder and waste of feathers or parts of feathers

Pigs’, hogs’ or boars’ bristles and hair; badger hair and other brush making hair; waste of such bristles or hair

- - Of a fat content, by weight, of 60 % or more but not exceeding 75 %

- - Of a fat content, by weight, of 39 % or more but less than 60 %

Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

Duties are set to zero for imports into the EU of processed agricultural products originating in Kosovo as listed hereinafter.

The EU and Kosovo shall inform each other of the administrative arrangements adopted for the products covered by this Protocol. These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

The reductions provided for under point (a) shall be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deducted from the duties applied to these basic agricultural products.

(a) when in trade between the EU and Kosovo the duties applied to the basic products are reduced, or

The duties applied pursuant to Article 1 of this Protocol may be reduced by decision of the SAC:

3. The SAC may replace the duties established by this Protocol by a regime established on the basis of the respective market prices of the EU and Kosovo of agricultural products actually used in the manufacture of processed agricultural products subject to this Protocol.

(b) amendments to the duties referred to in Annexes I and II to this Protocol,

1. The EU and Kosovo shall apply to processed agricultural products the duties listed in Annexes I and II to this Protocol respectively in accordance with the conditions mentioned therein, whether limited by a tariff quota or not.

on the signing, on behalf of the European Union, of the Stabilisation and Association Agreement between the European Union and the European Atomic Energy Community, of the one part, and of Kosovo*, of the other part

EUROPEAN COMMISSION Brussels, 30.4.2015 COM(2015) 183 final ANNEX

to the Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, of the Stabilisation and Association Agreement between the European Union and the European Atomic Energy Community, of the one part, and of Kosovo*, of the other part



STABILISATION AND ASSOCIATION AGREEMENT BETWEEN THE EUROPEAN UNION, OF THE ONE PART, AND KOSOVO, OF THE OTHER PART THE EUROPEAN UNION, hereinafter referred to as “the Union” or “the EU”, and THE EUROPEAN ATOMIC ENERGY COMMUNITY, of the one part, and KOSOVO,

of the other part, hereinafter jointly referred to as “the Parties”, CONSIDERING the strong links between the Parties and the values that they share, their desire to strengthen those links and establish a close and lasting relationship based on reciprocity and mutual interest, which should allow Kosovo to further strengthen and extend its relations with the EU; CONSIDERING the importance of this Agreement, in the framework of the Stabilisation and Association Process (SAP) with the Western Balkans, in the establishment and consolidation of a stable European order based on cooperation, of which the EU is a mainstay;

CONSIDERING the EU’s readiness to take concrete steps to realise Kosovo’s European perspective and rapprochement with the EU in line with the perspective of the region by integrating Kosovo towards the political and economic mainstream of Europe, through Kosovo’s ongoing participation in the SAP with the aim to fulfil the relevant criteria and SAP conditionalities, subject to the successful implementation of this Agreement, notably regarding regional cooperation; this process will lead to progress in Kosovo’s European perspective and rapprochement with the EU, should objective circumstances so permit and Kosovo fulfil the criteria defined by the European Council in Copenhagen on 2122 June 1993 and the aforementioned conditionalities; CONSIDERING the commitment of the Parties to contribute by appropriate means to the political, economic and institutional stabilisation in Kosovo as well as in the region, through the development of civil society and democratisation, institution building and public administration reform, regional trade integration and enhanced economic cooperation, wide ranging cooperation, including in justice and home affairs, and the strengthening of security; CONSIDERING the commitment of the Parties to increasing political and economic freedoms as the very basis of this Agreement, as well as their commitment to respect human rights, including the rights of persons belonging to minorities and vulnerable groups, CONSIDERING the commitment of the Parties to institutions based on the rule of law, to good governance and democratic principles through a multiparty system with free and fair elections;

CONSIDERING the commitment of the Parties to respect the principles of the Charter of the United Nations, of the Organisation for Security and Cooperation in Europe (OSCE), notably those of t he Final Act of the Conference on Security and Cooperation in Europe of 1975 (hereinafter referred to as “the Helsinki Final Act”) and the Charter of Paris for a New Europe of 1990; REAFFIRMING the attachment of the Parties to the implementation of international obligations, in particular but not only, related to the protection of human rights and the protection of persons belonging to minorities and vulnerable groups and in this respect noting the commitment of Kosovo to abide by the relevant international instruments;

REAFFIRMING the right of return for all refugees and internally displaced persons and to the protection of their property and other related human rights; CONSIDERING the commitment of the Parties to the principles of the free market economy and to sustainable development as well as the readiness of the EU to contribute to the economic reforms in Kosovo; CONSIDERING the commitment of the Parties to free trade, consistent with the relevant principles of the World Trade Organisation (hereinafter referred to as “WTO”) which are to be applied in a transparent and nondiscriminatory manner;

CONSIDERING the commitment of the Parties to further develop regular political dialogue on issues of mutual interest, including regional aspects; CONSIDERING the importance the Parties attach to combating organised crime, corruption and to strengthening cooperation in the fight against terrorism in line with the EU acquis, and to preventing irregular migration while supporting mobility in a legal and secure environment; 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, factors crucial to economic restructuring and modernisation; BEARING in mind the commitment by Kosovo to approximate its legislation in the relevant sectors to that of the EU, and to effectively implement it; TAKING ACCOUNT of the EU’s willingness to provide decisive support for the implementation of reform and to use all available instruments of cooperation and technical, financial and economic assistance on a comprehensive indicative multiannual basis to this endeavour, should objective circumstances so permit; NOTING that this Agreement is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence;

NOTING that the internal procedures of the Member States of the European Union (hereinafter referred to as the “Member States”) may apply when receiving documents issued by Kosovo authorities under this Agreement; NOTING that negotiations are ongoing for the establishment of a Transport Community with the Western Balkans;

RECALLING the Zagreb Summit of 2000, which called for further consolidation of relations through the SAP as well as enhanced regional cooperation; RECALLING that the European Council in Thessaloniki on 19 and 20 June 2003 reinforced the SAP as the policy framework for the EU’s relations with the Western Balkans and underlined the prospect of integration with the EU on the basis of their individual reform progress and merit; RECALLING Kosovo’s commitments in the context of the Central European Free Trade Agreement, signed in Bucharest on 19.12.2006, concluded with the aim to enhance the region’s ability to attract investments and the prospects of its integration into the global economy, should objective circumstances so permit; DESIROUS of establishing closer cultural cooperation and developing exchanges of information,

NOTING that in case the Parties decided, within the framework of this Agreement, to enter into specific agreements in the Area of Freedom, Security and Justice which were to be concluded by the EU pursuant to Title V of Part Three of the Treaty on the Functioning of the European Union, the provisions of such future specific agreements would not bind the United Kingdom and/or Ireland unless the EU, simultaneously with the United Kingdom and/or Ireland as regards their respective previous bilateral relations, notifies Kosovo that the United Kingdom and/or Ireland has/have become bound by such future specific agreements as part of the EU in accordance with Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of Freedom, Security and Justice annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union. Likewise, any subsequent EUinternal measures which were to be adopted pursuant to the above mentioned Title V to implement this Agreement would not bind the United Kingdom and/or Ireland unless they have notified their wish to take part in or accept such measures in accordance with Protocol No 21. Also noting that such future specific agreements or such subsequent EUinternal measures would fall within Protocol No 22 on the position of Denmark annexed to those Treaties. HAVE AGREED AS FOLLOWS:

ARTICLE 1 1. An association is hereby established between the EU, of the one part, and Kosovo, of the other part. 2. The aims of this association are: (a) to support the efforts of Kosovo to strengthen democracy and the rule of law; (b) to contribute to political, economic and institutional stability in Kosovo, as well as to the stabilisation of the region;

(c) to provide an appropriate framework for political dialogue, allowing the development of close political relations between the Parties; (d) to support the efforts of Kosovo to develop its economic and international cooperation, should objective circumstances so permit, including through the approximation of its legislation to that of the EU;

(e) to support the efforts of Kosovo to complete the transition into a functioning market economy; (f) to promote harmonious economic relations and gradually develop a free trade area between the EU and Kosovo; (g) to foster regional cooperation in all the fields covered by this Agreement. ARTICLE 2 None of the terms, wording or definitions used in this Agreement, including the Annexes and Protocols thereto, constitute recognition of Kosovo by the EU as an independent State nor does it constitute recognition by individual Member States of Kosovo in that capacity where they have not taken such a step.

TITLE I GENERAL PRINCIPLES ARTICLE 3

Respect for the democratic principles and human rights as proclaimed in the United Nations Universal Declaration of Human Rights of 1948 and as defined in the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950, in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for international law principles, including full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) and its residual mechanism, the International Criminal Court, and respect for the rule of law as well as the principles of market economy as reflected in the Document of the Bonn Conference on Economic Cooperation of the Conference on Security Cooperation in Europe, shall form the basis of the policies of the EU and of Kosovo and constitute essential elements of this Agreement.

ARTICLE 4 Kosovo commits to abide by international law and instruments, in particular, but not only, related to the protection of human and fundamental rights, to the protection of persons belonging to minorities, and without discrimination on any ground. ARTICLE 5 Kosovo commits to continued engagement towards a visible and sustainable improvement in relations with Serbia and to effective cooperation with the Common Security and Defence Policy mission while in place, as further defined in Article 13. These commitments constitute essential principles of this Agreement and shall underpin the development of relations and cooperation between the Parties. In case of the noncompliance by Kosovo with these commitments, the EU may take measures it deems appropriate, including suspending all or part of this Agreement.

ARTICLE 6 The Parties reaffirm that the most serious crimes of concern to the international community as a whole should not go unpunished and that prosecution of these crimes should be ensured by taking measures at domestic and international level. In this respect, Kosovo undertakes, in particular, to fully cooperate with the ICTY and its residual mechanism, and all other investigations and prosecutions conducted under international auspices. Kosovo also undertakes to abide by the Rome Statute of the International Criminal Court and in this respect to take the necessary steps for its implementation at domestic level. ARTICLE 7

The development of regional cooperation and good neighbourly relations as well as respect for human rights, including the rights of persons belonging to minorities, are central to the SAP. The conclusion and the implementation of this Agreement takes place within the framework of the SAP and are based on Kosovo’s own merits .

ARTICLE 8 Kosovo commits to continue to foster cooperation and good neighbourly relations in the region including an appropriate level of mutual concessions concerning the movement of persons, goods, capital and services as well as the development of projects of common interest in a wide range of areas, including the rule of law. This commitment constitutes a key factor in the development of relations and cooperation between the Parties, thus contributing to regional stability. ARTICLE 9 The association shall be progressively and fully realised over a period of ten years. The Stabilisation and Association Council (hereinafter referred to as “SAC”) established under Article 126 shall review, on an annual basis, the implementation of this Agreement and the adoption and implementation by Kosovo of legal, administrative, institutional and economic reforms. This review shall be carried out in the light of the preamble and in accordance with the general principles of this Agreement. It shall be consistent with the mechanisms established under the SAP, notably the progress report on the SAP. On the basis of this review, the SAC will issue recommendations and may take decisions.

Where the review identifies particular difficulties, they may be referred to the dispute settlement mechanisms established under this Agreement. No later than the fifth year after the entry into force of this Agreement, the SAC shall make a thorough review of the implementation of this Agreement. On the basis of this review the SAC shall evaluate progress made by Kosovo and may take decisions governing the ensuing process of association. Similar steps shall be taken by the SAC before the end of the tenth year after the entry into force of this Agreement. If warranted by the results of the review, the SAC may take a decision to extend the period set out in paragraph 1 by not more than five years. In the absence of such decisions by the SAC, this Agreement shall continue to be implemented as agreed herein. The aforementioned review shall not apply to the free movement of goods, for which a specific schedule is provided for in Title IV.

ARTICLE 10 This Agreement shall be fully compatible, and implemented in a manner consistent with the relevant provisions contained in the WTO Agreements, in particular Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article V of the General Agreement on Trade in Services (GATS).

TITLE II POLITICAL DIALOGUE ARTICLE 11 1. Political dialogue between the Parties shall be further developed within the context of this Agreement. It shall accompany and consolidate the rapprochement between the EU and Kosovo and contribute to the establishment of close links of solidarity and new forms of cooperation between the Parties. 2. The political dialogue is intended to promote in particular: (a) Kosovo’s participation in the international democratic community, should objective circumstances so permit; (b) advancement of Kosovo’s European perspective and rapprochement with the EU, in line with the European perspective of the region, based on individual merits and in line with Kosovo’s commitments under Article 5 of this Agreement;

(c) increasing convergence with certain Common Foreign and Security Policy measures, particular restrictive measures taken by the EU against third countries, natural or legal persons or nonState entities also through the exchange of information as appropriate, and, in particular, on those issues likely to have substantial effects on the Parties; (d) effective, inclusive and representative regional cooperation and the development of good neighbourly relations in the Western Balkans.

ARTICLE 12 The Parties shall have a policy dialogue on the other issues covered by this Agreement. ARTICLE 13 1. Political dialogue and policy dialogue, as appropriate, contribute to the process of normalisation of relations between Kosovo and Serbia.

2. As provided for in Article 5, Kosovo commits to continued engagement towards a visible and sustainable improvement in relations with Serbia. This process shall ensure that both can continue on their respective European paths, while avoiding that either can block the other in these efforts, and should gradually lead to the comprehensive normalisation of relations between Kosovo and Serbia, in the form of a legally binding agreement, with the prospect of both being able to fully exercise their rights and fulfil their responsibilities. 3. In the above framework, Kosovo shall continuously: (a) implement in good faith all agreements reached in the dialogue with Serbia; (b) fully respect the principles of inclusive regional cooperation; (c) resolve through dialogue and a spirit of compromise other outstanding issues, on the basis of practical and sustainable solutions and cooperate on the necessary technical and legal matters with Serbia;

(d) cooperate effectively with the Common Security and Defence Policy mission while in place and contribute actively to a full and unhindered execution of its mandate throughout Kosovo.

4. The SAC shall regularly review the progress in this process, and may take decisions and issue recommendations in this regard. The Stabilisation and Association Committee may assist this process in accordance with Article 129. ARTICLE 14 1. Political and policy dialogues shall primarily take place within the SAC, which shall have the general responsibility for any matter which the Parties might wish to put to it. 2. At the request of any of the Parties, these dialogues may also take place in the following formats: (a) meetings, where necessary, of senior officials representing Kosovo, on the one hand, and the High Representative of the Union for Foreign Affairs and Security Policy and/or a representativ