2. From the date of entry into force of this Agreement, no new quantitative restriction on imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in trade between the Community and Bosnia and Herzegovina.

3. Without prejudice to the concessions granted under Articles 25, 26, 27 and 28, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuit of the respective agricultural and fishery policies of Bosnia and Herzegovina and of the Community and the taking of any measures under those policies in so far as the import regime in Annexes III to V and Protocol 1 is not affected.

Article 35. Prohibition of Fiscal Discrimination

1. The Community and Bosnia and Herzegovina shall refrain from, and abolish where existing, any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.

2. Products exported to the territory of one of the Parties may not benefit from repayment of internal indirect taxation in excess of the amount of indirect taxation imposed on them.

Article 36. Customs Duties of a Fiscal Nature

The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

Article 37. Customs Unions, Free Trade Areas, Crossborder Arrangements

1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement.

2. During the transitional period specified in Article 18, this Agreement shall not affect the implementation of the specific preferential arrangements governing the movement of goods either laid down in frontier agreements previously concluded between one or more Member States and Bosnia and Herzegovina or resulting from the bilateral agreements specified in Title III concluded by Bosnia and Herzegovina in order to promote regional trade.

3. Consultations between the Parties shall take place within the Stabilisation and Association Council concerning the Agreements described in paragraphs 1 and 2 of this Article and, where requested, on other major issues related to their respective trade policies towards third countries. In particular in the event of a third country acceding to the Union, such consultations shall take place so as to ensure that account is taken of the mutual interests of the Community and Bosnia and Herzegovina stated in this Agreement.

Article 38. Dumping and Subsidy

1. None of the provisions in this Agreement shall prevent any Party from taking trade defence action in accordance with paragraph 2 of this Article and Article 39.

2. If one of the Parties finds that dumping and/or countervailable subsidisation is taking place in trade with the other Party, that Party may take appropriate measures against this practice in accordance with the WTO Agreement on Implementation of Article VI of the GATT 1994 or the WTO Agreement on Subsidies and Countervailing Measures and the respective related internal legislation.

Article 39. General Safeguard Clause

1. The provisions of Article XIX GATT 1994 and the WTO Agreement on Safeguards are applicable between the Parties. 

2. Notwithstanding paragraph 1 of this Article, where any product of one Party is being imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause: (a) serious injury to the domestic industry of like or directly competitive products in the territory of the importing Party, or (b) serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region of the importing Party, the importing Party may take appropriate bilateral safeguard measures under the conditions and in accordance with the procedures laid down in this Article. 

3. Bilateral safeguard measures directed at imports from the other Party shall not exceed what is necessary to remedy the problems, as defined in paragraph 2, which have arisen as a result of application of this Agreement. The safeguard measure adopted should consist of a suspension in the increase or in the reduction of the margins of preferences provided for under this Agreement for the product concerned up to a maximum limit corresponding to the basic duty referred to in Article 18(4)(a) and (b) and (6) for the same product. Such measures shall contain clear elements progressively leading to their elimination at the end of the set period, at the latest, and shall not be taken for a period exceeding two years. In very exceptional circumstances, measures may be extended for a further period of a maximum of two years. No bilateral safeguard measure shall be applied to the import of a product that has previously been subject to such a measure for a period of, at least, four years since the expiry of the measure. 

4. In the cases specified in this Article, before taking the measures provided for therein or, in the cases to which paragraph 5(b) of this Article applies, as soon as possible, the Community on the one part or Bosnia and Herzegovina on the other part, as the case may be, shall supply the Stabilisation and Association Council with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the two Parties concerned. 

5. For the implementation of paragraphs 1, 2, 3 and 4, the following provisions shall apply: (a) the problems arising from the situation referred to in this Article shall be immediately referred for examination to the Stabilisation and Association Council, which may take any decisions needed to put an end to such problems. If the Stabilisation and Association Council or the exporting Party has not taken a decision putting an end to the problems, or no other satisfactory solution has been reached within 30 days of the matter being referred to the Stabilisation and Association Council, the importing Party may adopt the appropriate measures to remedy the problem in accordance with this Article. In the selection of safeguard measures, priority must be given to those which least disturb the functioning of the arrangements established in this Agreement. Safeguard measures applied in accordance with Article XIX GATT 1994 and the WTO Agreement on Safeguards shall preserve the level/margin of preference granted under this Agreement. (b) where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Party concerned may, in the situations specified in this Article, apply forth with provisional measures necessary to deal with the situation and shall inform the other Party immediately thereof. The safeguard measures shall be notified immediately to the Stabilisation and Association Council and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit. 6. In the event of the Community or Bosnia and Herzegovina subjecting imports of products liable to give rise to the problems referred to in this Article to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.

Article 40. Shortage Clause

1. Where compliance with the provisions of this Title leads to: (a) a critical shortage, or threat thereof, of foodstuffs or other products essential to the exporting Party; or (b) reexport to a third country of a product against which the exporting Party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect, and where the situations referred to above give rise, or are likely to give rise to major difficulties for the exporting Party that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in this Article.

2. In the selection of measures, priority must be given to those which least disturb the functioning of the arrangements in this Agreement. Such measures shall not be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail, or a disguised restriction on trade and shall be eliminated when the conditions no longer justify their maintenance.

3. Before taking the measures provided for in paragraph 1 or, as soon as possible in cases to which paragraph 4 applies the Community or Bosnia and Herzegovina, as the case may be, shall supply the Stabilisation and Association Council with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties within the Stabilisation and Association Council may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Stabilisation and Association Council, the exporting Party may apply measures under this Article on the exportation of the product concerned. 

4. Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Bosnia and Herzegovina, whichever is concerned, may apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.

5. Any measures applied pursuant to this Article shall be immediately notified to the Stabilisation and Association Council and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their elimination as soon as circumstances permit.

Article 41. State Monopolies

Bosnia and Herzegovina shall adjust any state monopolies of a commercial character so as to ensure that, following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of Bosnia and Herzegovina.

Article 42. Rules of Origin

Except if otherwise stipulated in this Agreement, Protocol 2 lays down the rules of origin for the application of the provisions of this Agreement.

Article 43. Restrictions Authorised

This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property, or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 44. Failure to Provide Administrative Cooperation

1. The Parties agree that administrative cooperation is essential for the implementation and the control of the preferential treatment granted under this Title and underline their commitment to combat irregularities and fraud in customs and related matters.  2. Where a Party has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud under this Title, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned in accordance with this Article.  3. For the purpose of this Article a failure to provide administrative cooperation shall mean, inter alia: (a) a repeated failure to respect the obligations to verify the originating status of the product(s) concerned; (b) a repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin; (c) a repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question.  For the purpose of this Article a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without satisfactory explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party, that is linked to objective information concerning irregularities or fraud.  4.  The application of a temporary suspension shall be subject to the following conditions: (a) the Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud shall without undue delay notify the Stabilisation and Association Committee of its finding together with the objective information and enter into consultations within the Stabilisation and Association Committee, on the basis of all relevant information and objective findings, with a view to reaching a solution acceptable to both Parties; (b) where the Parties have entered into consultations within the Stabilisation and Association Committee as above and have failed to agree on an acceptable solution within three months following the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned.  A temporary suspension shall be notified to the Stabilisation and Association Committee without undue delay; (c) temporary suspensions under this Article shall be limited to the minimum necessary to protect the financial interests of the Party concerned.  They shall not exceed a period of six months, which may be renewed.  Temporary suspensions shall be notified immediately after their adoption to the Stabilisation and Association Committee.  They shall be subject to periodic consultations within the Stabilisation and Association Committee in particular with a view to their termination as soon as the conditions for their application no longer prevail.  5. At the same time as the notification to the Stabilisation and Association Committee under paragraph 4(a) of this Article, the Party concerned should publish a notice to importers in its Official Journal.  The notice to importers should indicate for the product concerned that there is a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud.

Article 45. Financial Responsibility

In case of error by the competent authorities in the proper management of the preferential system at export, and in particular in the application of the provisions of Protocol 2, where this error leads to consequences in terms of import duties, the Party facing such consequences may request the Stabilisation and Association Council to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.

Article 46.

The application of this Agreement shall be without prejudice to the application of the provisions of Community law to the Canary Islands. 

Title V. MOVEMENT OF WORKERS, ESTABLISHMENT,   SUPPLY OF SERVICES, MOVEMENT OF CAPITAL

Section CHAPTER I. Movement of Workers

Article 47.

1.  Subject to the conditions and modalities applicable in each Member State: (a) treatment accorded to workers who are nationals of Bosnia and Herzegovina and who are legally employed in the territory of a Member State shall be free of any discrimination based on nationality, as regards working conditions, remuneration or dismissal, compared to nationals of that Member State; (b) the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers covered by bilateral agreements within the meaning of Article 48, unless otherwise provided by such agreements, shall have access to the labour market of that Member State, during the period of that worker's authorised stay of employment.  2. Bosnia and Herzegovina shall, subject to the conditions and modalities applicable in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in Bosnia and Herzegovina.

Article 48.

1. Taking into account the situation in the labour market in the Member States, and subject to their legislation and to compliance with the rules in force in the Member States in the area of mobility of workers:

(a) the existing facilities of access to employment for workers of Bosnia and Herzegovina accorded by Member States under bilateral agreements should be preserved and if possible improved;

(b) the other Member States shall examine the possibility of concluding similar agreements. 

2. After three years, the Stabilisation and Association Council shall examine the granting of other improvements, including facilities for access to professional training, in accordance with the rules and procedures in force in the Member States, and taking into account the situation in the labour market in the Member States and in the Community.

Article 49.

1. Rules shall be laid down for the coordination of social security systems for workers with nationality of Bosnia and Herzegovina, legally employed in the territory of a Member State, and for the members of their families legally resident there. To that effect, a decision of the Stabilisation and Association Council, which should not affect any rights or obligations arising from bilateral agreements where the latter provide for more favourable treatment, shall put the following provisions in place:
(a) all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members;
(b) any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of noncontributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States;
(c) the workers in question shall receive family allowances for the members of their families as defined above.

2. Bosnia and Herzegovina shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in points (b) and (c) of paragraph 1.

Section CHAPTER II. Establishment

Article 50. Definitions

For the purposes of this Agreement:
(a) "Community company" or "company of Bosnia and Herzegovina" shall mean, respectively, a company set up in accordance with the laws of a Member State or of Bosnia and Herzegovina and having its registered office or central administration or principal place of business in the territory of the Community or of Bosnia and Herzegovina. However, should the company, set up in accordance with the laws of a Member State or of Bosnia and Herzegovina, have only its registered office in the territory of the Community or of Bosnia and Herzegovina respectively, the company shall be considered a Community company or a company of Bosnia and Herzegovina, as the case may be, if its operations possess a real and continuous link with the economy of one of the Member States or of Bosnia and Herzegovina;
(b) "Subsidiary" of a company shall mean a company which is effectively controlled by another company;
(c) "Branch" of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;
(d) "Establishment" shall mean: (i) as regards nationals, the right to take up economic activities as selfemployed persons, and to set up undertakings, in particular companies, which they effectively control. Selfemployment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market or confer a right of access to the labour market of another Party. The provisions of this Chapter do not apply to persons who are not exclusively selfemployed; (ii) as regards Community companies and companies of Bosnia and Herzegovina, the right to take up economic activities by means of the setting up of subsidiaries and branches in Bosnia and Herzegovina, or in the Community respectively;
(e) "Operations" shall mean the pursuit of economic activities;
(f) "Economic activities" shall in principle include activities of an industrial, commercial and professional character and activities of craftsmen;
(g) "Community national" and "national of Bosnia and Herzegovina" shall mean respectively a natural person who is a national of a Member State or of Bosnia and Herzegovina; With regard to international maritime transport, including intermodal operations involving a sea leg, Community nationals or nationals of Bosnia and Herzegovina established outside the Community or Bosnia and Herzegovina, and shipping companies established outside the Community or Bosnia and Herzegovina and controlled by Community nationals or nationals of Bosnia and Herzegovina, shall also be beneficiaries of the provisions of this Chapter and Chapter III, if their vessels are registered in that Member State or in Bosnia and Herzegovina, in accordance with their respective legislation;
(h) "Financial services" shall mean those activities described in Annex VI. The Stabilisation and Association Council may extend or modify the scope of that Annex.

Article 51.

1. Bosnia and Herzegovina shall facilitate the settingup of operations on its territory by Community companies and nationals. To that end, Bosnia and Herzegovina shall grant, upon entry into force of this Agreement:
(a) as regards the establishment of Community companies on the territory of Bosnia and Herzegovina, treatment no less favourable than that accorded to its own companies or to any third country company, whichever is the better, and;
(b) as regards the operation of subsidiaries and branches of Community companies in Bosnia and Herzegovina once established, treatment no less favourable than that accorded to its own companies and branches or to any subsidiary and branch of any third country company, whichever is the better. 

2. The Community and its Member States shall grant, from the entry into force of this Agreement:

(a) as regards the establishment of companies of Bosnia and Herzegovina treatment no less favourable than that accorded by Member States to their own companies or to any company of any third country, whichever is the better;

(b)as regards the operation of subsidiaries and branches of companies of Bosnia and Herzegovina, established in its territory, treatment no less favourable than that accorded by Member States to their own companies and branches, or to any subsidiary and branch of any third country company, established in their territory, whichever is the better.

3. The Parties shall not adopt any new regulations or measures which introduce discrimination as regards the establishment of any other Party's companies on their territory or in respect of their operation, once established, by comparison with their own companies.

4. Four years after the entry into force of this Agreement, the Stabilisation and Association Council shall establish the detailed arrangements to extend the above provisions to the establishment of Community nationals and nationals of Bosnia and Herzegovina to take up economic activities as selfemployed persons.

5. Notwithstanding the provisions of this Article:
(a) Subsidiaries and branches of Community companies shall have, from the entry into force of this Agreement, the right to use and rent real property in Bosnia and Herzegovina;
(b) Subsidiaries of Community companies shall, from the entry into force of this Agreement, have the same rights to acquire and enjoy ownership rights over real property as companies of Bosnia and Herzegovina and as regards public goods/goods of common interest, the same rights as enjoyed by companies of Bosnia and Herzegovina where these rights are necessary for the conduct of the economic activities for which they are established. This point shall apply without prejudice to Article 63.
(c) Four years after the entry into force of this Agreement, the Stabilisation and Association Council shall examine the possibility of extending the rights referred to in point (b) to branches of Community companies.

Article 52.

1. Subject to the provisions of Article 51, with the exception of financial services described in Annex VI, the Parties may regulate the establishment and operation of companies and nationals on their territory, insofar as these regulations do not discriminate against companies and nationals of the other Parties in comparison with its own companies and nationals.

2. In respect of financial services, notwithstanding any other provisions of this Agreement, a Party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Such measures shall not be used as a means of avoiding the Party's obligations under this Agreement.

3. Nothing in this Agreement shall be construed as requiring a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.

Article 53.

1. Without prejudice to any provision to the contrary contained in the Multilateral Agreement on the Establishment of a European Common Aviation Area 1 (hereinafter referred to as "ECAA"), the provisions of this Chapter shall not apply to air transport services, inland waterways transport services and maritime cabotage services.

2. The Stabilisation and Association Council may make recommendations for improving establishment and operations in the areas covered by paragraph 1.

Article 54.

1. The provisions of Articles 51 and 52 do not preclude the application by a Party of particular rules concerning the establishment and operation in its territory of branches of companies of another Party not incorporated in the territory of the first Party, which are justified by legal or technical differences between such branches as compared to branches of companies incorporated in its territory or, as regards financial services, for prudential reasons. Multilateral Agreement between the European Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the former Yugoslav Republic of Macedonia, the Republic of Iceland, the Republic of Montenegro, the Kingdom of Norway, Romania, the Republic of Serbia and the United Nations Interim Administration Mission in Kosovo on the establishment of a European Common Aviation Area (OJ L 285, 16.10.2006, p. 3).

2. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences or, as regards financial services, for prudential reasons.

Article 55.

In order to make it easier for Community nationals and nationals of Bosnia and Herzegovina to take up and pursue regulated professional activities in Bosnia and Herzegovina and in the Community respectively, the Stabilisation and Association Council shall examine which steps are necessary for the mutual recognition of qualifications. It may take all necessary measures to that end.

Article 56.

1. A Community company established in the territory of Bosnia and Herzegovina or a company of Bosnia and Herzegovina established in the Community shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host territory of establishment, in the territory of Bosnia and Herzegovina and the Community respectively, employees who are nationals of the Member States or nationals of Bosnia and Herzegovina respectively, provided that such employees are key personnel as defined in paragraph 2 and that they are employed exclusively by companies, subsidiaries or branches. The residence and work permits of such employees shall only cover the period of such employment.

2. Key personnel of the abovementioned companies herein referred to as "organisations" are "intracorporate transferees" as defined in point (c) of this paragraph in the following categories, provided that the organisation is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement:
(a) Persons working in a senior position with an organisation, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent including:
(i) directing the establishment of a department or subdivision of the establishment;
(ii) supervising and controlling the work of other supervisory, professional or managerial employees;
(iii) having the authority personally to recruit and dismiss or recommend recruiting, dismissing or other personnel actions;
(b) Persons working within an organisation who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession;
(c) An "intracorporate transferee" is defined as a natural person working within an organisation in the territory of a Party, and being temporarily transferred in the context of pursuit of economic activities in the territory of the other Party; the organisation concerned must have its principal place of business in the territory of a Party and the transfer be to an establishment (branch, subsidiary) of that organisation, effectively pursuing like economic activities in the territory of the other Party.

3. The entry into and the temporary presence within the territory of the Community or in Bosnia and Herzegovina of Bosnia and Herzegovina and Community nationals respectively shall be permitted, when these representatives of companies are persons working in a senior position, as defined in paragraph 2(a), within a company, and are responsible for the setting up of a Community subsidiary or branch of a company of Bosnia and Herzegovina or of a subsidiary or branch of Bosnia and Herzegovina of a Community company in a Member State or in Bosnia and Herzegovina respectively, when: (a) those representatives are not engaged in making direct sales or supplying services, and do not receive remuneration from a source located within the host territory of establishment, and; (b) the company has its principal place of business outside the Community or Bosnia and Herzegovina, respectively, and has no other representative, office, branch or subsidiary in that Member State or in Bosnia and Herzegovina respectively.

Section CHAPTER III. Supply of Services

Article 57.

1. The Community and Bosnia and Herzegovina undertake, in accordance with the following provisions, to take the necessary steps to allow progressively the supply of services by Community companies or companies of Bosnia and Herzegovina or by Community nationals or nationals of Bosnia and Herzegovina which are established in the territory of a Party other than that of the person for whom the services are intended.

2. In step with the liberalisation process mentioned in paragraph 1, the Parties shall permit the temporary movement of natural persons providing the service or who are employed by the service provider as key personnel as defined in Article 56(2), including natural persons who are representatives of a Community company or national or a company or national of Bosnia and Herzegovina and are seeking temporary entry for the purpose of negotiating for the sale of services or entering into agreements to sell services for that service provider, where those representatives will not be engaged in making direct sales to the general public or in supplying services themselves.

3. Four years after the entry into force of this Agreement, the Stabilisation and Association Council shall take the measures necessary to implement progressively the provisions of paragraph 1. Account shall be taken of the progress achieved by the Parties in the approximation of their laws.

Article 58.

1. The Parties shall not take any measures or actions which render the conditions for the supply of services by Community and nationals or companies of Bosnia and Herzegovina which are established in a Party other than that of the person for whom the services are intended significantly more restrictive as compared to the situation existing on the day preceding the day of entry into force of this Agreement.

2. If one Party is of the view that measures introduced by the other Party since the entry into force of this Agreement result in a situation which is significantly more restrictive in respect of supply of services as compared with the situation existing at the date of entry into force of this Agreement, such first Party may request the other Party to enter into consultations.

Article 59.

With regard to supply of transport services between the Community and Bosnia and Herzegovina, the following provisions shall apply:
1) With regard to land transport, Protocol 3 lays down the rules applicable to the relationship between the Parties in order to ensure, particularly, unrestricted road transit traffic across Bosnia and Herzegovina and the Community as a whole, the effective application of the principle of non discrimination and progressive harmonisation of the transport legislation of Bosnia and Herzegovina with that of the Community.
 2) With regard to international maritime transport, the Parties undertake to apply effectively the principle of unrestricted access to international markets and trades on a commercial basis, and to respect international and European obligations in the field of safety, security and environmental standards. The Parties affirm their commitment to a freely competitive environment as an essential feature of international maritime transport.
 3) In applying the principles of paragraph 2, the Parties shall:
(a) not introduce cargosharing clauses in future bilateral Agreements with third countries;
(b) abolish, upon the entry into force of this Agreement, all unilateral measures and administrative, technical and other obstacles that could have restrictive or discriminatory effects on the free supply of services in international maritime transport;
(c) each Party shall grant, inter alia, no less favourable treatment for the ships operated by nationals or companies of the other Party than that accorded to a Party's own ships with regard to access to ports open to international trade, the use of infrastructure and auxiliary maritime services of the ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.
4) With a view to ensuring a coordinated development and progressive liberalisation of transport between the Parties adapted to their reciprocal commercial needs, the conditions of mutual market access in air transport shall be dealt with by the ECAA.
5) Prior to the conclusion of the ECAA, the Parties shall not take any measures or actions which are more restrictive or discriminatory as compared with the situation existing prior to the entry into force of this Agreement.
6) Bosnia and Herzegovina shall adapt its legislation, including administrative, technical and other rules, to that of the Community existing at any time in the field of air, maritime, inland waterways and land transport insofar as it serves liberalisation purposes and mutual access to markets of the Parties and facilitates the movement of passengers and of goods.
7) In step with the common progress in the achievement of the objectives of this Chapter, the Stabilisation and Association Council shall examine ways of creating the conditions necessary for improving freedom to provide air and land transport services.

Chapter IV. Current Payments and Movement of Capital

Article 60.

The Parties undertake to authorise, in freely convertible currency, in accordance with the provisions of Article VIII of the Articles of Agreement of the International Monetary Fund, any payments and transfers on the current account of balance of payments between the Community and Bosnia and Herzegovina.

Article 61.

1. With regard to transactions on the capital and financial account of balance of payments, from the entry into force of this Agreement, the Parties shall ensure the free movement of capital relating to direct investments made in companies formed in accordance with the laws of the host country and investments made in accordance with the provisions of Chapter II of Title V, and the liquidation or repatriation of these investments and of any profit stemming there from.

2. With regard to transactions on the capital and financial account of balance of payments, from the entry into force of this Agreement, the Parties shall ensure the free movement of capital relating to credits related to commercial transactions or to the provision of services in which a resident of one of the Parties is participating, and to financial loans and credits, with maturity longer than a year.

3. As from the entry into force of this Agreement, Bosnia and Herzegovina shall authorise, by making full and expedient use of its existing rules and procedures, the acquisition of real estate in Bosnia and Herzegovina by nationals of Member States. Within six years from the entry into force of this Agreement, Bosnia and Herzegovina shall progressively adjust its legislation concerning the acquisition of real estate in Bosnia and Herzegovina by nationals of the Member States to ensure the same treatment as compared to its nationals. The Parties shall also ensure, from the fifth year after the entry into force of this Agreement, free movement of capital relating to portfolio investment and financial loans and credits with maturity shorter than a year.

4. Without prejudice to paragraph 1, the Parties shall not introduce any new restrictions on the movement of capital and current payments between residents of the Community and Bosnia and Herzegovina and shall not make the existing arrangements more restrictive.

5. Without prejudice to the provisions of Article 60 and of this Article, where, in exceptional circumstances, movements of capital between the Community and Bosnia and Herzegovina cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or Bosnia and Herzegovina, the Community and Bosnia and Herzegovina, respectively, may take safeguard measures with regard to movements of capital between the Community and Bosnia and Herzegovina for a period not exceeding six months if such measures are strictly necessary.

6. Nothing in the above provisions shall be taken to limit the rights of economic operators of the Parties from benefiting from any more favourable treatment that may be provided for in any existing bilateral or multilateral agreement involving Parties to this Agreement.

7. The Parties shall consult each other with a view to facilitating the movement of capital between the Community and Bosnia and Herzegovina in order to promote the objectives of this Agreement.

Article 62.

1. During the first five years following the date of entry into force of this Agreement, the Parties shall take measures permitting the creation of the necessary conditions for the further gradual application of Community rules on the free movement of capital. 

2. By the end of the fifth year following the date of entry into force of this Agreement, the Stabilisation and Association Council shall determine the detailed arrangements for full application of Community rules on the movement of capital.

Section CHAPTER V. General Provisions

Article 63.

1. The provisions of this Title shall be applied subject to limitations justified on grounds of public policy, public security or public health.  2. They shall not apply to activities that in the territory of any of the Parties are connected, even occasionally, with the exercise of official authority.

Article 64.

For the purpose of this Title, nothing in this Agreement shall prevent the Parties from applying their laws and regulations regarding entry and stay, employment, working conditions, establishment of natural persons and supply of services, notably insofar as the granting, renewal, or refusal of a residence permit is concerned, provided that, in so doing, they do not apply them in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of this Agreement. This provision shall be without prejudice to the application of Article 63.

Article 65.

Companies which are controlled and exclusively owned jointly by companies or nationals of Bosnia and Herzegovina and Community companies or nationals shall also be covered by the provisions of this Title.

Article 66.

1. The MostFavouredNation treatment granted in accordance with the provisions of this Title shall not apply to the tax advantages that the Parties are providing or will provide in the future on the basis of agreements designed to avoid double taxation or other tax arrangements.

2. None of the provisions of this Title shall be construed to prevent the adoption or enforcement by the Parties of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation and other tax arrangements or domestic fiscal legislation. 3. None of the provisions of this Title shall be construed to prevent Member States or Bosnia and Herzegovina from applying the relevant provisions of their fiscal legislation, from distinguishing between taxpayers who are not in identical situations, in particular as regards their place of residence.

Article 67.

1. The Parties shall endeavour wherever possible to avoid the imposition of restrictive measures, including measures relating to imports, for balance of payments purposes. A Party adopting such measures shall present as soon as possible to the other Party a timetable for their removal.

2. Where one or more Member States or Bosnia and Herzegovina is in serious balance of payments difficulties, or under imminent threat thereof, the Community or Bosnia and Herzegovina, as the case may be, may, in accordance with the conditions established under the WTO Agreement, adopt restrictive measures, including measures relating to imports, which shall be of limited duration and may not go beyond what is strictly necessary to remedy the balance of payments situation. The Community or Bosnia and Herzegovina, as the case may be, shall inform the other Party forthwith.

3. Any restrictive measures shall not apply to transfers related to investment and in particular to the repatriation of amounts invested or reinvested or any kind of revenues stemming therefrom.

Article 68.

The provisions of this Title shall be progressively adjusted, notably in the light of requirements arising from Article V of the GATS.

Article 69.

The provisions of this Agreement shall not prejudice the application by any Party of any measure necessary to prevent the circumvention of its measures concerning thirdcountry access to its market through the provisions of this Agreement. 

Section VI. Approximation of Laws, Law Enforcement and Competition Rules

Article 70.

1. The Parties recognise the importance of the approximation of the existing legislation of Bosnia and Herzegovina to that of the Community and of its effective implementation. Bosnia and Herzegovina shall endeavour to ensure that its existing laws and future legislation will be gradually made compatible with the Community acquis. Bosnia and Herzegovina shall ensure that existing and future legislation will be properly implemented and enforced.

2. This approximation shall start on the date of signing of this Agreement, and shall gradually extend to all the elements of the Community acquis referred to in this Agreement by the end of the transitional period defined in Article 8 of this Agreement.

3. Approximation shall, at an early stage, focus on fundamental elements of the Internal Market acquis as well as on other traderelated areas. At a further stage Bosnia and Herzegovina shall focus on the remaining parts of the acquis. Approximation shall be carried out on the basis of a programme to be agreed between the European Commission and Bosnia and Herzegovina.

4. Bosnia and Herzegovina shall also define, in agreement with the European Commission, the detailed arrangements for the monitoring of the implementation of approximation of legislation and law enforcement actions to be taken.

Article 71. Competition and other Economic Provisions

1. The following are incompatible with the proper functioning of this Agreement, insofar as they may affect trade between the Community and Bosnia and Herzegovina:
(a) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the Community or of Bosnia and Herzegovina as a whole or in a substantial part thereof; (c) any State aid which distorts or threatens to distort competition by favouring certain undertakings or certain products.

 2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the competition rules applicable in the Community, in particular from Articles 81, 82, 86 and 87 of the EC Treaty and interpretative instruments adopted by the Community institutions.

3. The Parties shall ensure that an operationally independent public authority is entrusted with the powers necessary for the full application of paragraph 1(a) and (b), regarding private and public undertakings and undertakings to which special rights have been granted.
4. Bosnia and Herzegovina shall establish an operationally independent public authority, which is entrusted with the powers necessary for the full application of paragraph 1(c) within two years from the date of entry into force of this Agreement. This authority shall have, inter alia, the powers to authorise State aid schemes and individual aid grants in conformity with paragraph 2, as well as the powers to order the recovery of State aid that has been unlawfully granted.

5. Each Party shall ensure transparency in the area of State aid, inter alia by providing to the other Party a regular annual report, or equivalent, following the methodology and the presentation of the Community survey on State aid. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid. 6. Bosnia and Herzegovina shall establish a comprehensive inventory of aid schemes instituted before the establishment of the authority referred to in paragraph 4 and shall align such aid schemes with the criteria referred to in paragraph 2 within a period of no more than four years from the entry into force of this Agreement.

7. (a) For the purposes of applying the provisions of paragraph 1(c), the Parties recognise that during the first six years after the entry into force of this Agreement, any public aid granted by Bosnia and Herzegovina shall be assessed taking into account the fact that Bosnia and Herzegovina shall be regarded as an area identical to those areas of the Community described in Article 87(3)(a) of the EC Treaty.
(b) By the end of the fifth year from the entry into force of this Agreement, Bosnia and Herzegovina shall submit to the European Commission its GDP per capita figures harmonised at NUTS II level. The authority referred to in paragraph 4 and the European Commission shall then jointly evaluate the eligibility of the regions of Bosnia and Herzegovina as well as the maximum aid intensities in relation thereto in order to draw up the regional aid map on the basis of the relevant Community guidelines.

8. Protocol 4 establishes the special rules on State aid applicable to the restructuring of the steel industry.

9. With regard to products referred to in Chapter II of Title IV: (a) paragraph 1(c) shall not apply; (b) any practices contrary to paragraph 1(a) shall be assessed according to the criteria established by the Community on the basis of Articles 36 and 37 of the EC Treaty and specific Community instruments adopted on this basis.

10. If one of the Parties considers that a particular practice is incompatible with the terms of paragraph 1, it may take appropriate measures after consultation within the Stabilisation and Association Council or after 30 working days following referral for such consultation. Nothing in this Article shall prejudice or affect in any way the taking, by either Party, of antidumping or countervailing measures in accordance with the relevant Articles of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures and the respective related internal legislation.

Article 72. Public Undertakings

By the end of the third year following the entry into force of this Agreement, Bosnia and Herzegovina shall apply to public undertakings and undertakings to which special and exclusive rights have been granted the principles set out in the EC Treaty, with particular reference to Article 86. Special rights of public undertakings during the transitional period shall not include the possibility to impose quantitative restrictions or measures having an equivalent effect on imports from the Community into Bosnia and Herzegovina.

Article 73. Intellectual, Industrial and Commercial Property Rights

1. Pursuant to the provisions of this Article and Annex VII, the Parties confirm the importance that they attach to ensuring adequate and effective protection and enforcement of intellectual, industrial and commercial property rights.
2. From entry into force of this Agreement, the Parties shall grant to each others' companies and nationals, in respect of the recognition and protection of intellectual, industrial and commercial property, treatment no less favourable than that granted by them to any third country under bilateral Agreements.
3. Bosnia and Herzegovina shall take all the necessary measures in order to guarantee no later than five years after entry into force of this Agreement a level of protection of intellectual, industrial and commercial property rights similar to that existing in the Community, including effective means of enforcing such rights. 
4. Bosnia and Herzegovina undertakes to accede, within the period referred to above, to the multilateral conventions on intellectual, industrial and commercial property rights referred to in Annex VII. The Parties affirm the importance they attach to the principles of the Agreement on TradeRelated Aspects of Intellectual Property Rights. The Stabilisation and Association Council may decide to oblige Bosnia and Herzegovina to accede to specific multilateral conventions in this area.
5. If problems in the area of intellectual, industrial and commercial property affecting trading conditions occur, they shall be referred urgently to the Stabilisation and Association Council, at the request of either Party, with a view to reaching mutually satisfactory solutions.

Article 74. Public Contracts

1. The Community and Bosnia and Herzegovina consider the openingup of the award of public contracts on the basis of nondiscrimination and reciprocity, following in particular the WTO rules, to be a desirable objective.

2. Companies of Bosnia and Herzegovina, whether established in the Community or not, shall be granted access to contract award procedures in the Community pursuant to Community procurement rules under treatment no less favourable than that accorded to Community companies as from the entry into force of this Agreement. The above provisions shall also apply to contracts in the utilities sector once the government of Bosnia and Herzegovina has adopted the legislation introducing the Community rules in this area. The Community shall examine periodically whether Bosnia and Herzegovina has indeed introduced such legislation. 

3. Community companies established in Bosnia and Herzegovina under the provisions of Chapter II of Title V shall, from the entry into force of this Agreement, be granted access to contract award procedures in Bosnia and Herzegovina under treatment no less favourable than that accorded to companies of Bosnia and Herzegovina.

4. Community companies not established in Bosnia and Herzegovina shall be granted access to contract award procedures in Bosnia and Herzegovina under treatment no less favourable than that accorded to companies of Bosnia and Herzegovina at the latest five years after the entry into force of this Agreement. In the five year transitional period Bosnia and Herzegovina shall ensure gradual reduction of existing preferences so that the preferential rate upon the entry into force of this Agreement shall amount to a maximum of 15 % in the first and the second year, a maximum of 10 % in the third and the fourth year, and a maximum of 5 % in the fifth year.

5. The Stabilisation and Association Council shall periodically examine the possibility for Bosnia and Herzegovina to introduce access to contract award procedures in Bosnia and Herzegovina for all Community companies. Bosnia and Herzegovina shall report annually to the Stabilisation and Association Council on the measures they have taken to enhance transparency and to provide for effective judicial review of decisions taken in the area of public procurement.

6. As regards establishment, operations, supply of services between the Community and Bosnia and Herzegovina, and also employment and movement of labour linked to the fulfilment of public contracts, the provisions of Articles 47 to 69 are applicable.

Article 75. Standardisation, Metrology, Accreditation and Conformity Assessment

1. Bosnia and Herzegovina shall take the necessary measures in order to gradually achieve conformity with Community technical regulations and European standardisation, metrology, accreditation and conformity assessment procedures.

2. To this end, the Parties shall seek to:
(a) promote the use of Community technical regulations, European standards and conformity assessment procedures;
(b) provide assistance to fostering the development of quality infrastructure: standardisation, metrology, accreditation and conformity assessment;
(c) promote Bosnia and Herzegovina's participation in the work of organisations related to standards, conformity assessment, metrology and similar functions (e.g. CEN, CENELEC, ETSI, EA, WELMEC, EUROMET); (1)
(d) Where appropriate, conclude an Agreement on Conformity Assessment and Acceptance of Industrial Products once the legislative framework and the procedures of Bosnia and Herzegovina are sufficiently aligned on that of the Community and appropriate expertise is available. European Committee for Standardisation, European Committee for Electrotechnical Standardisation, European Telecommunications Standards Institute, European cooperation for Accreditation, European Cooperation in Legal Metrology, European Organisation of Metrology.

Article 76. Consumer Protection

The Parties shall cooperate in order to align the standards of consumer protection in Bosnia and Herzegovina to those of the Community. Effective consumer protection is necessary in order to ensure the proper functioning of the market economy, and this protection will depend on the development of an administrative infrastructure in order to ensure market surveillance and law enforcement in this field. To that end, and in view of their common interests, the Parties shall encourage and ensure:
(a) a policy of active consumer protection, in accordance with Community law, including the increase of information and development of independent organisations;
(b) the harmonisation of legislation of consumer protection in Bosnia and Herzegovina with that in force in the Community;
(c) effective legal protection for consumers in order to improve the quality of consumer goods and maintain appropriate safety standards; (d) monitoring of rules by competent authorities and providing access to justice in case of disputes.

Article 77. Working Conditions and Equal Opportunities

Bosnia and Herzegovina shall progressively harmonise its legislation to that of the Community in the fields of working conditions, notably on health and safety at work, and equal opportunities.

Section VII. Justice, Freedom and Security

Article 78. Reinforcement of Institutions and Rule of Law

In their cooperation on justice and home affairs the Parties shall attach particular importance to the consolidation of the rule of law, and the reinforcement of institutions at all levels in the areas of administration in general and law enforcement and the administration of justice in particular. Cooperation shall notably aim at strengthening the independence of the judiciary and improving its efficiency and institutional capacity, enhancing access to justice, developing adequate structures for the police, customs and other law enforcement bodies, providing adequate training and fighting corruption and organised crime.

Article 79. Protection of Personal Data

Bosnia and Herzegovina shall harmonise its legislation concerning personal data protection with Community law and other European and international legislation on privacy upon the entry into force of this Agreement. Bosnia and Herzegovina shall establish independent supervisory bodies with sufficient financial and human resources in order to efficiently monitor and guarantee the enforcement of national personal data protection legislation. The Parties shall cooperate to achieve this goal.

Article 80. Visa, Border Management, Asylum and Migration

The Parties shall cooperate in the areas of visa, border control, asylum and migration and shall set up a framework for cooperation, including at a regional level, in these fields, taking into account and making full use of other existing initiatives in this area as appropriate. Cooperation in the above matters shall be based on mutual consultations and close coordination between the Parties and should include technical and administrative assistance for:
(a) the exchange of information on legislation and practices;
(b) the drafting of legislation;
(c) enhancing the efficiency of the institutions;
(d) the training of staff;
(e) the security of travel documents and detection of false documents;
(f) border management.

Cooperation shall focus in particular:
(a) on the area of asylum on the implementation of national legislation to meet the standards of the Convention relating to the Status of Refugees done at Geneva on 28 July 1951, and the Protocol relating to the Status of Refugees done at New York on 31 January 1967 so as to ensure that the principle of "nonrefoulement" is respected as well as other rights of asylum seekers and refugees;
(b) on the field of legal migration, on admission rules and rights and status of the person admitted. In relation to migration, the Parties agree to the fair treatment of nationals of other countries who reside legally on their territories and to promote an integration policy aiming at making their rights and obligations comparable to those of their citizens.

Article 81. Prevention and Control of Illegal Immigration; Readmission

1. The Parties shall cooperate in order to prevent and control illegal immigration. To this end Bosnia and Herzegovina and the Member States shall readmit any of their nationals illegally present on their territories and the Parties also agree to conclude and fully implement an Agreement on readmission, including an obligation for the readmission of nationals of other countries and stateless persons. The Member States and Bosnia and Herzegovina shall provide their nationals with appropriate identity documents and shall extend to them the administrative facilities necessary for such purposes. Specific procedures for the purpose of readmission of nationals, third country nationals and stateless persons shall be laid down in the Agreement on readmission. 

2. Bosnia and Herzegovina agrees to conclude readmission Agreements with the other countries of the Stabilisation and Association process and undertakes to take any necessary measures to ensure the flexible and rapid implementation of all readmission Agreements referred to in this Article. 3. The Stabilisation and Association Council shall establish other joint efforts that can be made to prevent and control illegal immigration, including trafficking in human beings and illegal migration networks.

Article 82. Money Laundering and Terrorism Financing

1. The Parties shall cooperate in order to prevent the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular, as well as for the purpose of financing terrorism.

2. Cooperation in this area may include administrative and technical assistance for the purpose of developing the implementation of regulations and the efficient functioning of suitable standards and mechanisms in order to combat money laundering and financing of terrorism equivalent to those adopted by the Community and international fora in this field, in particular the Financial Action Task Force (FATF).

Article 83. Cooperation on Illicit Drugs

1. Within their respective powers and competencies, the Parties shall cooperate to ensure a balanced and integrated approach towards drug issues. Drug policies and actions shall be aimed at reinforcing structures for combating illicit drugs, reducing the supply of, trafficking in and demand for illicit drugs and coping with the health and social consequences of drug abuse as well as at a more effective control of precursors.

2. The Parties shall agree on the necessary methods of cooperation to attain these objectives. Action shall be based on commonly agreed principles along the lines of the EU Drug Control Strategy.

Article 84. Preventing and Combating Organised Crime and other Illegal Activities

The Parties shall cooperate on combating and preventing criminal and illegal activities, organised or otherwise, such as:
(a) smuggling and trafficking in human beings;
(b) illegal economic activities, and in particular counterfeiting of currencies, illegal transactions on products such as industrial waste, radioactive material and transactions involving illegal, counterfeit or pirated products;
(c) corruption, both in the private and public sector, in particular linked to nontransparent administrative practices;
(d) fiscal fraud;
(e) production of, and trafficking in, illicit drugs and psychotropic substances;
(f) smuggling;
(g) illicit arms trafficking;
(h) forging documents;
(i) illicit car trafficking;
(j) cyber crime. Regional cooperation and compliance with recognised international standards in combating organised crime shall be promoted.

Article 85. Combating Terrorism

In compliance with the international conventions to which they are Party and their respective laws and regulations, the Parties agree to cooperate in order to prevent and suppress acts of terrorism and their financing: (a) in the framework of full implementation of United Nations Security Council Resolution 1373 (2001) and other relevant UN resolutions, international conventions and instruments; (b) by exchanging information on terrorist groups and their support networks in accordance with international and national law; (c) by exchanging experiences with regard to means and methods of combating terrorism and in technical areas and training, and by exchanging experience in respect of the prevention of terrorism.

Section VIII. Cooperation Policies

Article 86.

1. The Community and Bosnia and Herzegovina shall establish close cooperation aimed at contributing to the development and growth potential of Bosnia and Herzegovina. Such cooperation shall strengthen existing economic links on the widest possible foundation, to the benefit of both Parties.

2. Policies and other measures shall be designed to bring about sustainable economic and social development of Bosnia and Herzegovina. These policies should ensure that environmental considerations are also fully incorporated from the outset and that they are linked to the requirements of harmonious social development.

3. Cooperation policies shall be integrated into a regional framework of cooperation. Special attention will have to be devoted to measures that can foster cooperation between Bosnia and Herzegovina and its neighbouring countries including Member States, thus contributing to regional stability. The Stabilisation and Association Council may define priorities between and within the cooperation policies described hereinafter, in line with the European Partnership.

Article 87. Economic and Trade Policy

The Community and Bosnia and Herzegovina shall facilitate the process of economic reform by cooperating to improve understanding of the fundamentals of their respective economies and the formulation and implementation of economic policy in market economies. At the request of the authorities of Bosnia and Herzegovina, the Community may provide assistance designed to support Bosnia and Herzegovina's efforts to establish a functioning market economy and to gradually approximate its policies to the stabilityoriented policies of the European Economic and Monetary Union. Cooperation shall also aim at strengthening the rule of law in the business area through a stable and nondiscriminatory traderelated legal framework. Cooperation in this area shall include informal exchange of information concerning the principles and functioning of the European Economic and Monetary Union.

Article 88. Statistical Cooperation

Cooperation between the Parties shall primarily focus on priority areas related to the Community acquis in the field of statistics. It shall notably be aimed at developing efficient and sustainable statistical systems capable of providing comparable, reliable, objective and accurate data needed to plan and monitor the process of transition and reform in Bosnia and Herzegovina. It should also enable the state and entity Statistical Offices to better meet the needs of their national and international customers (both public administration and private sector). The statistical system should respect the fundamental principles of statistics issued by the UN, the European Statistical Code of Practice and the stipulations of the European Statistical law and develop towards the Community acquis.

Article 89. Banking, Insurance and other Financial Services

Cooperation between Bosnia and Herzegovina and the Community shall focus on priority areas related to the Community acquis in the fields of banking, insurance and other financial services. The Parties shall cooperate with the aim of establishing and developing a suitable framework for the encouragement of the banking, insurance and other financial services sectors in Bosnia and Herzegovina.

Article 90. Audit and Financial Control Cooperation

Cooperation between the Parties shall focus on priority areas related to the Community acquis in the field of public internal financial control (PIFC) and external audit. The Parties shall, in particular, cooperate – through elaborating and adopting relevant regulation – with the aim of developing PIFC, including financial management and control and functionally independent internal audit, and independent external audit systems in Bosnia and Herzegovina, in accordance with internationally accepted control and audit standards and methodologies and EU best practices. Cooperation shall also focus on capacity building and training for the institutions with the purpose of developing PIFC as well as external audit (Supreme Audit Institutions) in Bosnia and Herzegovina, which also includes the establishment and strengthening of central harmonisation units for financial management and control and for internal audit systems.