Trade preferences for Western Balkans by 5 more years
Brussel (26 June) - The European Commission has today adopted a proposal for a Regulation extending autonomous trade preferences for countries and territories participating in or linked to the EU's Stabilisation and Association process. The autonomous trade measures provide for asymmetrical trade liberalization giving the participants preferential access to the EU market. Today´s proposal means extending the tariff liberalization introduced in 2009 for five more years. Extending the preferences until 2020 should give the beneficiaries of the exceptional trade measures and the EU sufficient time to align, where appropriate, preferences granted in 2009 with those provided for under the Stabilisation and Association Agreements.
Since the launch of the Stabilisation and Association Process, Stabilisation and Association Agreements (SAA) have been concluded between the Union and all concerned Western Balkan countries, with the exception of Kosovo, which is currently negotiating an SAA.
Bosnia and Herzegovina signed a Stabilisation and Association Agreement in 2008. Pending its full entry into force, an Interim Agreement on trade and trade-related matters with Bosnia and Herzegovina applies.
Unfortunately, the Commission could not at this stage propose an automatic extension of autonomous trade preferences for Bosnia and Herzegovina. Following the enlargement of the EU on 1 July 2013, Bosnia and Herzegovina has not yet accepted to adapt trade concessions granted under its Interim Agreement of the SAA with the EU, in order to take into account the preferential traditional trade between Croatia and Bosnia and Herzegovina prior to the accession of Croatia to the EU.
Under the Commission proposal, autonomous trade preferences granted to Bosnia and Herzegovina would be suspended as of 1 January 2016, unless Bosnia and Herzegovina and the EU have found an agreement on the adaptation of trade concessions by the end of next year.
Once Bosnia and Herzegovina and the EU have signed and applied provisionally an agreement on the adaptation of trade concessions in the Interim Agreement, these autonomous trade preferences will be re-established. The Commission expects that Bosnia and Herzegovina promptly re-engages constructively in negotiations with the EU on the adaptation of the Interim Agreement, so that there will be no interruption in trade preferences. This Commission proposal needs to be endorsed by the Council of the European Union and by the European Parliament in order to enter into force.