Title
Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Albania, of the other part
Preamble
THE KINGDOM OF BELGIUM,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
IRELAND,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
THE REPUBLIC OF HUNGARY,
THE REPUBLIC OF MALTA,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the European Community, the Treaty establishing the European Atomic Energy Community and the Treaty on European Union,
Hereinafter referred to as the ‘Member States', and
THE EUROPEAN COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY,
Hereinafter referred to as the ‘Community',
Of the one part, and
THE REPUBLIC OF ALBANIA, hereinafter referred to as ‘Albania',
Of the other part,
CONSIDERING the strong links between the Parties and the values that they share and their desire to strengthen those links and establish a close and lasting relationship based on reciprocity and mutual interest, which should allow Albania to further strengthen and extend the relations with the Community and its Member States, as previously established with the Community through the Agreement on Trade and Commercial and Economic Cooperation of 1992;
CONSIDERING the importance of this Agreement in the framework of the Stabilisation and Association process with the countries of south-eastern Europe, in the establishment and consolidation of a stable European order based on cooperation, of which the European Union is a mainstay, as well as in the framework of the Stability Pact;
CONSIDERING the commitment of the Parties to contribute by all means to the political, economic and institutional stabilisation in Albania 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, as well as through cooperation in a wide range of areas, particularly in justice and home affairs, and the strengthening of national and regional 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 and the rule of law, including the rights of persons belonging to national minorities, and democratic principles through a multi-party system with free and fair elections;
CONSIDERING the commitment of the Parties to the full implementation of all principles and provisions of the UN Charter, of the OSCE, notably those of the Helsinki Final Act, the concluding documents of the Madrid and Vienna Conferences, the Charter of Paris for a New Europe, and of the Stability Pact for south-eastern Europe, so as to contribute to regional stability and cooperation among the countries of the region;
CONSIDERING the commitment of the Parties to the principles of free market economy and the readiness of the Community to contribute to the economic reforms in Albania;
CONSIDERING the commitment of the Parties to free trade, in compliance with the rights and obligations arising out of the WTO;
CONSIDERING the wish of the Parties to further develop regular political dialogue on bilateral and international issues of mutual interest, including regional aspects, taking into account the Common Foreign and Security Policy of the European Union;
CONSIDERING the commitment of the Parties to combat organised crime and to strengthen cooperation in the fight against terrorism on the basis of the Declaration issued by the European Conference on 20 October 2001;
CONVINCED that this Agreement will create a new climate for economic relations between them and, above all, for the development of trade and investment, factors crucial to economic restructuring and modernisation;
BEARING IN MIND the commitment by Albania to approximate its legislation in the relevant sectors to that of the Community, and to effectively implement it;
TAKING ACCOUNT of the Community'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;
CONFIRMING that the provisions of this Agreement that fall within the scope of the Third Part, Title IV of the Treaty establishing the European Community bind the United Kingdom and Ireland as separate Contracting Parties, and not as a part of the European Community, until the United Kingdom or Ireland (as the case may be) notifies Albania that it has become bound as part of the European Community in accordance with the Protocol on the position of the United Kingdom and Ireland annexed to the Treaty on European Union and the Treaty establishing the European Community. The same applies to Denmark, in accordance with the Protocol on the position of Denmark annexed to those Treaties;
RECALLING the Zagreb Summit which called for further consolidation of relations between the countries of the Stabilisation and Association process and the European Union, as well as enhanced regional cooperation;
RECALLING that the Thessaloniki Summit reinforced the Stabilisation and Association process as the policy framework for the European Union's relations with the western Balkan countries and underlined the prospect of their integration with the European Union on the basis of their individual reform progress and merit;
RECALLING the Memorandum of Understanding on Trade Facilitation and Liberalisation, signed in Brussels on 27 June 2001, by which Albania, together with other countries of the region, committed itself to negotiate a network of bilateral free trade agreements so as to enhance the region's ability to attract investments and the prospects of its integration into the global economy;
RECALLING the European Union's readiness to integrate to the fullest possible extent Albania into the political and economic mainstream of Europe and its status as a potential candidate for European Union membership on the basis of the Treaty on European Union and fulfilment of the criteria defined by the European Council in June 1993, subject to the successful implementation of this Agreement, notably regarding regional cooperation,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An Association is hereby established between the Community and its Member States, of the one part; and Albania, of the other part.
2. The aims of this Association are:
- To support the efforts of Albania to strengthen democracy and the rule of law;
- To contribute to political, economic and institutional stability in Albania, as well as to the stabilisation of the region;
- To provide an appropriate framework for political dialogue, allowing the development of close political relations between the Parties;
- To support the efforts of Albania to develop its economic and international cooperation, also through the approximation of its legislation to that of the Community;
- To support the efforts of Albania to complete the transition into a functioning market economy, to promote harmonious economic relations and develop gradually a free trade area between the Community and Albania;
- To foster regional cooperation in all the fields covered by this Agreement.
Title I. General Principles
Article 2.
Respect for the democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the European Convention on Human Rights, in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for international law principles and the rule of law as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Economic Cooperation, shall form the basis of the domestic and external policies of the Parties and constitute essential elements of this Agreement.
Article 3.
International and regional peace and stability and the development of good neighbourly relations are central to the Stabilisation and Association Process referred to in the conclusions of the Council of the European Union of 21 June 1999. The conclusion and the implementation of this Agreement come within the framework of the conclusions of the Council of the European Union of 29 April 1997, and are based on the individual merits of Albania.
Article 4.
Albania commits itself to continue and foster cooperation and good neighbourly relations with the other countries of 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, notably those related to combating organised crime, corruption, money laundering, illegal migration and trafficking, including in particular in human beings and illicit drugs. This commitment constitutes a key factor in the development of the relations and cooperation between the Parties and thus contributes to regional stability.
Article 5.
The Parties reaffirm the importance that they attach to the fight against terrorism and the implementation of international obligations in this area.
Article 6.
The Association shall be implemented progressively and shall be fully realised over a transitional period of a maximum of ten years, divided into two successive stages.
The two stages shall not apply to Title IV, for which a specific schedule is laid down under that Title.
The purpose of this division into successive stages is to make a thorough mid-term review of the implementation of this Agreement. In the field of legal approximation and law enforcement, the aim shall be for Albania to concentrate in the first stage on the fundamental elements, with specific benchmarks, of the acquis as described under Title VI.
The Stabilisation and Association Council established under Article 116 shall regularly review the application of this Agreement and the accomplishment by Albania of legal, administrative, institutional and economic reforms in the light of the Preamble and in accordance with the general principles laid down in this Agreement.
The first stage shall start upon the date of entry into force of this Agreement. During the fifth year after the date of entry into force of this Agreement, the Stabilisation and Association Council shall evaluate the progress made by Albania, and shall decide whether this progress has been sufficient for the passage into the second stage in order to achieve full Association. It shall also decide on any specific provisions deemed necessary to govern the second stage.
Article 7.
This Agreement shall be fully compatible with and implemented in a manner consistent with the relevant WTO provisions, in particular Article XXIV of the GATT 1994 and Article V of the GATS.
Title II. Political Dialogue
Article 8.
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 European Union and Albania 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:
- Albania's full integration into the community of democratic nations and gradual rapprochement with the European Union;
- An increasing convergence of positions of the Parties on international issues, also through the exchange of information as appropriate, and, in particular, on those issues likely to have substantial effects on the Parties;
- Regional cooperation and the development of good neighbourly relations;
- Common views on security and stability in Europe, including cooperation in the areas covered by the Common Foreign and Security Policy of the European Union.
3. The Parties consider that the proliferation of weapons of mass destruction and their means of delivery, both to state and non-state actors, represents one of the most serious threats to international stability and security. The Parties therefore agree to cooperate and to contribute to countering the proliferation of weapons of mass destruction and their means of delivery through full compliance with and national implementation of their existing obligations under international disarmament and non-proliferation Treaties and Agreements and other relevant international obligations. The Parties agree that this provision constitutes an essential element of this Agreement and shall be part of the political dialogue that shall accompany and consolidate these elements.
The Parties furthermore agree to cooperate and to contribute to countering the proliferation of weapons of mass destruction and their means of delivery by:
- Taking steps to sign, ratify, or accede to, as appropriate, and fully implement all other relevant international instruments;
- The establishment of an effective system of national export controls, controlling the export as well as the transit of WMD-related goods, including a WMD end-use control on dual use technologies and containing effective sanctions for breaches of export controls.
Political dialogue on this matter may take place on a regional basis.
Article 9.
1. Political dialogue shall take place within the Stabilisation and Association Council, which shall have the general responsibility for any matter which the Parties might wish to put to it.
2. At the request of the Parties, political dialogue may also take place in the following formats:
- Meetings, where necessary, of senior officials representing Albania, on the one hand, and the Presidency of the Council of the European Union and the Commission, on the other;
- Taking full advantage of all diplomatic channels between the Parties, including appropriate contacts in third countries and within the United Nations, the OSCE, the Council of Europe and other international fora;
- Any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.
Article 10.
Political dialogue at parliamentary level shall take place within the framework of the Stabilisation and Association Parliamentary Committee established under Article 122.
Article 11.
Political dialogue may take place within a multilateral framework, and as a regional dialogue including other countries of the region.
Title III. Regional Cooperation
Article 12.
In conformity with its commitment to international and regional peace and stability, and to the development of good neighbourly relations, Albania shall actively promote regional cooperation. The Community assistance programmes may support projects having a regional or cross-border dimension through its technical assistance programmes.
Whenever Albania foresees to reinforce its cooperation with one of the countries mentioned in Articles 13, 14 and 15, it shall inform and consult the Community and its Member States according to the provisions laid down in Title X.
Albania shall review existing bilateral Agreements with all relevant countries, or will conclude new ones, in order to ensure that they are compatible with the principles set out in the Memorandum of Understanding on Trade Facilitation and Liberalisation signed in Brussels on 27 June 2001.
Article 13. Cooperation with other Countries Having Signed a Stabilisation and Association Agreement
After the signature of this Agreement, Albania shall start negotiations with the countries which have already signed a Stabilisation and Association Agreement with a view to concluding bilateral Conventions on regional cooperation, the aim of which shall be to enhance the scope of cooperation between the countries concerned.
The main elements of these conventions shall be:
- Political dialogue;
- The establishment of a free trade area between the Parties, consistent with the relevant WTO provisions;
- Mutual concessions concerning the movement of workers, establishment, supply of services, current payments and movement of capital as well as other policies related to movement of persons at an equivalent level to that of this Agreement;
- Provisions on cooperation in other fields whether or not covered by this Agreement, and notably the field of Justice and Home Affairs.
These Conventions shall contain provisions for the creation of the necessary institutional mechanisms, as appropriate.
These Conventions shall be concluded within two years after the date of entry into force of this Agreement. Readiness by Albania to conclude such Conventions will be a condition for the further development of the relations between Albania and the European Union.
Albania shall initiate similar negotiations with the remaining countries of the region once these countries have signed a Stabilisation and Association Agreement.
Article 14. Cooperation with other Countries Concerned by the Stabilisation and Association Process
Albania shall pursue regional cooperation with the other countries concerned by the Stabilisation and Association Process in some or all the fields of cooperation covered by this Agreement, and notably those of common interest. Such cooperation shall be compatible with the principles and objectives of this Agreement.
Article 15. Cooperation with Countries Candidate for Accession to the European Union
1. Albania may foster its cooperation and conclude a Convention on regional cooperation with any country candidate for accession to the European Union in any of the fields of cooperation covered by this Agreement. Such Convention should aim gradually to align bilateral relations between Albania and that country to the relevant part of the relations between the Community and its Member States and that country.
2. Albania shall start negotiations with Turkey with a view to concluding, on a mutually advantageous basis, an Agreement establishing a free trade area between the two Parties in accordance with Article XXIV of the GATT as well as liberalising the establishment and supply of services between them at a level equivalent to this Agreement in accordance with Article V of the GATS.
These negotiations shall be opened as soon as possible, with a view to concluding such an Agreement before the end of the transitional period referred to in Article 16(1).
Title IV. Free Movement of Goods
Article 16.
1. The Community and Albania shall gradually establish a free trade area over a period lasting a maximum of ten years starting from the date of entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the GATT 1994 and the WTO. In so doing they shall take into account the specific requirements laid down hereinafter.
2. The Combined Nomenclature of goods shall be applied to the classification of goods in trade between the two Parties.
3. For each product the basic duty to which the successive reductions set out in this Agreement are to be applied shall be the duty actually applied erga omnes on the day preceding the signature of this Agreement.
4. The reduced duties to be applied by Albania calculated as set out in this Agreement shall be rounded to whole numbers using common arithmetical principles. Therefore, all figures which have less than 50 (included) after the decimal point shall be rounded down to the nearest whole number and all figures which have more than 50 after the decimal point shall be rounded up to the nearest whole number.
5. If, after the signature of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the basic duty referred to in paragraph 3 as from the date when such reductions are applied.
6. The Community and Albania shall communicate to each other their respective basic duties.
Chapter I. Industrial Products
Article 17.
1. The provisions of this Chapter shall apply to products originating in the Community or in Albania listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I. § I, (ii) of the Agreement on agriculture (GATT 1994).
2. Trade between the Parties in products covered by the Treaty establishing the European Atomic Energy Community shall be conducted in accordance with the provisions of that Treaty.
Article 18.
1. Customs duties on imports into the Community of products originating in Albania shall be abolished upon the date of entry into force of this Agreement.
2. Quantitative restrictions on imports into the Community and measures having equivalent effect shall be abolished on the date of entry into force of this Agreement with regard to products originating in Albania.
Article 19.
1. Customs duties on imports into Albania of goods originating in the Community other than those listed in Annex I shall be abolished upon the date of entry into force of this Agreement.
2. Customs duties on imports into Albania of goods originating in the Community which are listed in Annex I shall be progressively reduced in accordance with the following timetable:
- On the date of entry into force of this Agreement, the import duty shall be reduced to 80% of the basic duty;
- On 1 January of the first year following the date of entry into force of this Agreement, the import duty shall be reduced to 60% of the basic duty; – on 1 January of the second year following the date of entry into force of this Agreement, the import duty shall be reduced to 40% of the basic duty;
- On 1 January of the third year following the date of entry into force of this Agreement, the import duty shall be reduced to 20% of the basic duty;
- On 1 January of the fourth year following the date of entry into force of this Agreement, the import duty shall be reduced to 10% of the basic duty;
- On 1 January of the fifth year following the date of entry into force of this Agreement, the remaining import duties shall be abolished.
3. Quantitative restrictions on imports into Albania of goods originating in the Community and measures having equivalent effect shall be abolished upon the date of entry into force of this Agreement.
Article 20.
The Community and Albania shall abolish upon the date of entry into force of this Agreement in trade between themselves any charges having an effect equivalent to customs duties on imports.