Title
STABILISATION AND ASSOCIATION AGREEMENT BETWEEN THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND KOSOVO, OF THE OTHER PART
Preamble
THE EUROPEAN UNION, hereinafter referred to as "the Union" or "the EU", and THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as "Euratom", of the one part, and KOSOVO, of the other part, hereinafter jointly referred to as "the Parties",
CONSIDERING the strong links between the Parties and the values that they share, their desire to strengthen those links and establish a close and lasting relationship based on reciprocity and mutual interest, which should allow Kosovo to further strengthen and extend its relations with the EU;
CONSIDERING the importance of this Agreement, in the framework of the Stabilisation and Association Process (SAP) with the Western Balkans, in the establishment and consolidation of a stable European order based on cooperation, of which the EU is a mainstay;
CONSIDERING the EU's readiness to take concrete steps to realise Kosovo's European perspective and rapprochement with the EU in line with the perspective of the region by integrating Kosovo towards the political and economic mainstream of Europe, through Kosovo's on-going participation in the SAP with the aim to fulfil the relevant criteria and SAP conditionalities, subject to the successful implementation of this Agreement, notably regarding regional cooperation; this process will lead to progress in Kosovo's European perspective and rapprochement with the EU, should objective circumstances so permit and Kosovo fulfil the criteria defined by the European Council in Copenhagen on 21-22 June 1993 and the aforementioned conditionalities;
CONSIDERING the commitment of the Parties to contribute by appropriate means to the political, economic and institutional stabilisation in Kosovo as well as in the region, through the development of civil society and democratisation, institution building and public administration reform, regional trade integration and enhanced economic cooperation, wide ranging cooperation, including in justice and home affairs, and the strengthening of security;
CONSIDERING the commitment of the Parties to increasing political and economic freedoms as the very basis of this Agreement, as well as their commitment to respect human rights, including the rights of persons belonging to minorities and vulnerable groups,
CONSIDERING the commitment of the Parties to institutions based on the rule of law, to good governance and democratic principles through a multi-party system with free and fair elections;
CONSIDERING the commitment of the Parties to respect the principles of the Charter of the United Nations, of the Organisation for Security and Cooperation in Europe (OSCE), notably those of t he Final Act of the Conference on Security and Cooperation in Europe of 1975 (hereinafter referred to as "the Helsinki Final Act") and the Charter of Paris for a New Europe of 1990;
REAFFIRMING the attachment of the Parties to the implementation of international obligations, in particular but not only, related to the protection of human rights and the protection of persons belonging to minorities and vulnerable groups and in this respect noting the commitment of Kosovo to abide by the relevant international instruments;
REAFFIRMING the right of return for all refugees and internally displaced persons and to the protection of their property and other related human rights;
CONSIDERING the commitment of the Parties to the principles of the free market economy and to sustainable development as well as the readiness of the EU to contribute to the economic reforms in Kosovo;
CONSIDERING the commitment of the Parties to free trade, consistent with the relevant principles of the World Trade Organisation (hereinafter referred to as "WTO") which are to be applied in a transparent and non-discriminatory manner;
CONSIDERING the commitment of the Parties to further develop regular political dialogue on issues of mutual interest, including regional aspects;
CONSIDERING the importance the Parties attach to combating organised crime, corruption and to strengthening cooperation in the fight against terrorism in line with the EU acquis, and to preventing irregular migration while supporting mobility in a legal and secure environment;
CONVINCED that this Agreement will create a new climate for economic relations between the Parties and, above all, for the development of trade and investment, factors crucial to economic restructuring and modernisation;
BEARING in mind the commitment by Kosovo to approximate its legislation in the relevant sectors to that of the EU, and to effectively implement it;
TAKING ACCOUNT of the EU's willingness to provide decisive support for the implementation of reform and to use all available instruments of cooperation and technical, financial and economic assistance on a comprehensive indicative multiannual basis to this endeavour, should objective circumstances so permit;
NOTING that this Agreement is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence;
Noting that the commitments and cooperation to be entered into by the Union under this Agreement relate only to the areas covered by the EU acquis or existing Union policies;
NOTING that the internal procedures of the Member States of the European Union (hereinafter referred to as the "Member States") may apply when receiving documents issued by Kosovo authorities under this Agreement;
NOTING that negotiations are ongoing for the establishment of a Transport Community with the Western Balkans;
RECALLING the Zagreb Summit of 2000, which called for further consolidation of relations through the SAP as well as enhanced regional cooperation;
RECALLING that the European Council in Thessaloniki on 19 and 20 June 2003 reinforced the SAP as the policy framework for the EU's relations with the Western Balkans and underlined the prospect of integration with the EU on the basis of their individual reform progress and merit;
RECALLING Kosovo's commitments in the context of the Central European Free Trade Agreement, signed in Bucharest on 19.12.2006, concluded with the aim to enhance the region's ability to attract investments and the prospects of its integration into the global economy, should objective circumstances so permit;
DESIROUS of establishing closer cultural cooperation and developing exchanges of information,
NOTING that in case the Parties decided, within the framework of this Agreement, to enter into specific agreements in the Area of Freedom, Security and Justice which were to be concluded by the EU pursuant to Title V of Part Three of the Treaty on the Functioning of the European Union, the provisions of such future specific agreements would not bind the United Kingdom and/or Ireland unless the EU, simultaneously with the United Kingdom and/or Ireland as regards their respective previous bilateral relations, notifies Kosovo that the United Kingdom and/or Ireland has/have become bound by such future specific agreements as part of the EU in accordance with Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of Freedom, Security and Justice annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union. Likewise, any subsequent EU-internal measures which were to be adopted pursuant to the above mentioned Title V to implement this Agreement would not bind the United Kingdom and/or Ireland unless they have notified their wish to take part in or accept such measures in accordance with Protocol No 21. Also noting that such future specific agreements or such subsequent EU-internal measures would fall within Protocol No 22 on the position of Denmark annexed to those Treaties.
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An association is hereby established between the EU, of the one part, and Kosovo, of the other part.
2. The aims of this association are:
(a) to support the efforts of Kosovo to strengthen democracy and the rule of law;
(b) to contribute to political, economic and institutional stability in Kosovo, as well as to the stabilisation of the region;
(c) to provide an appropriate framework for political dialogue, allowing the development of close political relations between the Parties;
(d) to support the efforts of Kosovo to develop its economic and international cooperation, should objective circumstances so permit, including through the approximation of its legislation to that of the EU;
(e) to support the efforts of Kosovo to complete the transition into a functioning market economy;
(f) to promote harmonious economic relations and gradually develop a free trade area between the EU and Kosovo;
(g) to foster regional cooperation in all the fields covered by this Agreement.
Article 2.
None of the terms, wording or definitions used in this Agreement, including the Annexes and Protocols thereto, constitute recognition of Kosovo by the EU as an independent State nor does it constitute recognition by individual Member States of Kosovo in that capacity where they have not taken such a step.
Title I. GENERAL PRINCIPLES
Article 3.
Respect for the democratic principles and human rights as proclaimed in the United Nations Universal Declaration of Human Rights of 1948 and as defined in the Convention for the Protection of Human Rights and Fundamental Freedoms of 1950, in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for international law principles, including full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) and its residual mechanism, the International Criminal Court, and respect for the rule of law as well as the principles of market economy as reflected in the Document of the Bonn Conference on Economic Cooperation of the Conference on Security Cooperation in Europe, shall form the basis of the policies of the EU and of Kosovo and constitute essential elements of this Agreement.
Article 4.
Kosovo commits to abide by international law and instruments, in particular, but not only, related to the protection of human and fundamental rights, to the protection of persons belonging to minorities, and without discrimination on any ground.
Article 5.
Kosovo commits to continued engagement towards a visible and sustainable improvement in relations with Serbia and to effective cooperation with the Common Security and Defence Policy mission while in place, as further defined in Article 13. These commitments constitute essential principles of this Agreement and shall underpin the development of relations and cooperation between the Parties. In case of the non-compliance by Kosovo with these commitments, the EU may take measures it deems appropriate, including suspending all or part of this Agreement.
Article 6.
The Parties reaffirm that the most serious crimes of concern to the international community as a whole should not go unpunished and that prosecution of these crimes should be ensured by taking measures at domestic and international level.
In this respect, Kosovo undertakes, in particular, to fully cooperate with the ICTY and its residual mechanism, and all other investigations and prosecutions conducted under international auspices.
Kosovo also undertakes to abide by the Rome Statute of the International Criminal Court and in this respect to take the necessary steps for its implementation at domestic level.
Article 7.
The development of regional cooperation and good neighbourly relations as well as respect for human rights, including the rights of persons belonging to minorities, are central to the SAP. The conclusion and the implementation of this Agreement takes place within the framework of the SAP and are based on Kosovo’s own merits.
Article 8.
Kosovo commits to continue to foster cooperation and good neighbourly relations in the region including an appropriate level of mutual concessions concerning the movement of persons, goods, capital and services as well as the development of projects of common interest in a wide range of areas, including the rule of law. This commitment constitutes a key factor in the development of relations and cooperation between the Parties, thus contributing to regional stability.
Article 9.
The association shall be progressively and fully realised over a period of 10 years.
The Stabilisation and Association Council (hereinafter referred to as ‘SAC’) established under Article 126 shall review, on an annual basis, the implementation of this Agreement and the adoption and implementation by Kosovo of legal, administrative, institutional and economic reforms. This review shall be carried out in the light of the preamble and in accordance with the general principles of this Agreement. It shall be consistent with the mechanisms established under the SAP, notably the progress report on the SAP.
On the basis of this review, the SAC will issue recommendations and may take decisions.
Where the review identifies particular difficulties, they may be referred to the dispute settlement mechanisms established under this Agreement.
No later than the fifth year after the entry into force of this Agreement, the SAC shall make a thorough review of the implementation of this Agreement. On the basis of this review the SAC shall evaluate progress made by Kosovo and may take decisions governing the ensuing process of association. Similar steps shall be taken by the SAC before the end of the tenth year after the entry into force of this Agreement. If warranted by the results of the review, the SAC may take a decision to extend the period set out in the first paragraph by not more than five years. In the absence of such decisions by the SAC, this Agreement shall continue to be implemented as agreed herein.
The aforementioned review shall not apply to the free movement of goods, for which a specific schedule is provided for in Title IV.
Article 10.
This Agreement shall be fully compatible, and implemented in a manner consistent with the relevant provisions contained in the WTO Agreements, in particular Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article V of the General Agreement on Trade in Services (GATS).
Title II. POLITICAL DIALOGUE
Article 11.
1. Political dialogue between the Parties shall be further developed within the context of this Agreement. It shall accompany and consolidate the rapprochement between the EU and Kosovo and contribute to the establishment of close links of solidarity and new forms of cooperation between the Parties.
2. The political dialogue is intended to promote in particular:
(a) Kosovo’s participation in the international democratic community, should objective circumstances so permit;
(b) advancement of Kosovo’s European perspective and rapprochement with the EU, in line with the European perspective of the region, based on individual merits and in line with Kosovo’s commitments under Article 5 of this Agreement;
(c) increasing convergence with certain Common Foreign and Security Policy measures, in particular restrictive measures taken by the EU against third countries, natural or legal persons or non-State entities also through the exchange of information as appropriate, and, in particular, on those issues likely to have substantial effects on the Parties;
(d) effective, inclusive and representative regional cooperation and the development of good neighbourly relations in the Western Balkans.
Article 12.
The Parties shall have a policy dialogue on the other issues covered by this Agreement.
Article 13.
1. Political dialogue and policy dialogue, as appropriate, contribute to the process of normalisation of relations between Kosovo and Serbia.
2. As provided for in Article 5, Kosovo commits to continued engagement towards a visible and sustainable improvement in relations with Serbia. This process shall ensure that both can continue on their respective European paths, while avoiding that either can block the other in these efforts, and should gradually lead to the comprehensive normalisation of relations between Kosovo and Serbia, in the form of a legally binding agreement, with the prospect of both being able to fully exercise their rights and fulfil their responsibilities.
3. In the above framework, Kosovo shall continuously:
(a) implement in good faith all agreements reached in the dialogue with Serbia;
(b) fully respect the principles of inclusive regional cooperation;
(c) resolve through dialogue and a spirit of compromise other outstanding issues, on the basis of practical and sustainable solutions and cooperate on the necessary technical and legal matters with Serbia;
(d) cooperate effectively with the Common Security and Defence Policy mission while in place and contribute actively to a full and unhindered execution of its mandate throughout Kosovo.
4. The SAC shall regularly review the progress in this process, and may take decisions and issue recommendations in this regard. The Stabilisation and Association Committee may assist this process in accordance with Article 129.
Article 14.
1. Political and policy dialogues shall primarily take place within the SAC, which shall have the general responsibility for any matter which the Parties might wish to put to it.
2. At the request of any of the Parties, these dialogues may also take place in the following formats:
(a) meetings, where necessary, of senior officials representing Kosovo, on the one hand, and the High Representative of the Union for Foreign Affairs and Security Policy and/or a representative of the Commission, on the other;
(b) taking full advantage of all appropriate channels between the Parties, including appropriate contacts in non-EU countries and within international organisations and other international fora, should objective circumstances so permit;
(c) any other means which would make a useful contribution to consolidating, developing and stepping up these dialogues, including those identified in the Thessaloniki agenda, adopted in the Conclusions of the European Council in Thessaloniki on 19 and 20 June 2003.
Article 15.
A political dialogue at parliamentary level shall take place within the framework of the Stabilisation and Association Parliamentary Committee established under Article 132.
Title III. REGIONAL COOPERATION
Article 16.
In conformity with its commitment under Articles 5 and 13, and to international and regional peace and stability, and to the development of good neighbourly relations, Kosovo shall actively promote regional cooperation. The EU, through appropriate instruments, including assistance to projects having a regional or cross-border/boundary dimension, may support these efforts.
Whenever Kosovo plans to reinforce its cooperation with one of the countries referred to in Articles 17, 18 and 19, it shall inform and consult the EU in accordance with the provisions laid down in Title X.
Kosovo shall continue to implement the Central European Free Trade Agreement.
Article 17.
Cooperation with countries having signed a Stabilisation and Association Agreement
After the signature of this Agreement, Kosovo shall, should objective circumstances so permit, start negotiations with the countries which have already signed a Stabilisation and Association Agreement with the EU with a view to concluding bilateral conventions on regional cooperation, the aim of which shall be to enhance the scope of cooperation between them.
The main elements of these conventions shall be:
(a) political dialogue;
(b) the establishment of free trade areas, consistent with relevant WTO provisions;
(c) mutual concessions concerning the movement of workers, establishment, supply of services, current payments and movement of capital as well as other policies related to the movement of persons at an equivalent level to that of the Stabilisation and Association Agreements which that respective country has concluded with the EU;
(d) provisions on cooperation in other fields whether or not covered by this Agreement, and notably the field of Freedom, Security and Justice.
These conventions shall contain provisions for the creation of the necessary institutional mechanisms, as appropriate.
The conventions shall be concluded within two years after the entry into force of this Agreement.
Article 18. Cooperation with Countries Concerned by the SAP
Kosovo shall pursue regional cooperation with countries concerned by the SAP in some or all the fields of cooperation covered by this Agreement as well as other areas related to the SAP, notably those of common interest. Such cooperation should always be compatible with the principles and objectives of this Agreement.
Article 19. Cooperation with Candidate Countries for EU Accession Not Concerned by the SAP
Kosovo shall foster its cooperation and conclude, should objective circumstances so permit, conventions on cooperation with any country candidate for EU accession not concerned by the SAP in the fields of cooperation covered by this Agreement and other areas of mutual interest for Kosovo and these countries. Such conventions should aim to gradually align bilateral relations between Kosovo and those countries to the relevant part of the relations between the EU and Kosovo.
Title IV. FREE MOVEMENT OF GOODS
Article 20.
1. The EU and Kosovo shall gradually establish a bilateral free trade area over a period lasting a maximum of 10 years starting from the entry into force of this Agreement in accordance with this Agreement and in conformity with the GATT 1994 and the provisions contained in the relevant WTO agreements. In so doing they shall take into account the specific requirements laid down in paragraphs 2 to 6 of this Article.
2. The Combined Nomenclature shall be applied to the classification of goods in trade between the Parties.
3. For the purpose of this Agreement customs duties and charges having equivalent effect to customs duties include any duty or charge of any kind imposed in connection with the importation or exportation of a good, including any form of surtax or surcharge in connection with such importation or exportation, but do not include any:
(a) charges equivalent to an internal tax imposed consistently with paragraph 2 of Article III of the GATT 1994;
(b) antidumping or countervailing measures;
(c) fees or charges commensurate with the costs of services rendered.
4. For each product, the basic duty to which the successive tariff reductions set out in this Agreement are to be applied shall be:
(a) For the EU, the EU Common Customs Tariff, established pursuant to Council Regulation (EEC) No 2658/87 (1) actually applied erga omnes on the day of the signature of this Agreement;
(b) For Kosovo, the tariff applied by Kosovo as of 31 December 2013.
5. If, after the signature of this Agreement, any tariff reduction is applied on an erga omnes basis, such reduced duties shall replace the basic duty referred to in paragraph 4 as from the date when such reductions are applied.
6. The EU and Kosovo shall communicate to each other their respective basic duties and any changes thereof.
Chapter I. Industrial Products
Article 21. Definition
1. This Chapter shall apply to products originating in the EU or in Kosovo listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I, paragraph I, point (ii) of the WTO Agreement on Agriculture.
2. Trade between the Parties in products covered by the Treaty establishing the European Atomic Energy Community shall be conducted in accordance with that Treaty.
Article 22. EU Concessions on Industrial Products
1. Customs duties on imports into the EU and charges having equivalent effect shall be abolished, upon the entry into force of this Agreement, on industrial products originating in Kosovo.
Quantitative restrictions on imports into the EU and measures having equivalent effect shall be abolished, upon the entry into force of this Agreement, on industrial products originating in Kosovo.
Article 23. Kosovo’s Concessions on Industrial Products
1. Customs duties on imports into Kosovo of industrial products originating in the EU other than those listed in Annex I shall be abolished upon the entry into force of this Agreement.
2. Charges having equivalent effect to customs duties on imports into Kosovo shall be abolished, upon the entry into force of this Agreement, on industrial products originating in the EU.
3. Customs duties on imports into Kosovo of industrial products originating in the EU which are listed in Annex I shall be progressively reduced and abolished in accordance with the timetable indicated in that Annex.
4. Quantitative restrictions on imports into Kosovo of industrial products originating in the EU and measures having equivalent effect shall be abolished upon the entry into force of this Agreement.
Article 24. Duties and Restrictions on Exports
1. The EU and Kosovo shall abolish any customs duties on exports and charges having equivalent effect in trade between them upon the entry into force of this Agreement.
2. The EU and Kosovo shall abolish between themselves any quantitative restrictions on exports and measures having equivalent effect upon the entry into force of this Agreement.
Article 25. Faster Reductions In Customs Duties
Kosovo declares its readiness to reduce its customs duties in trade with the EU more rapidly than is provided for in Article 23 if its general economic situation and the situation of the economic sector concerned so permit.
The SAC shall analyse the situation in this respect and make the relevant recommendations.
Chapter II. Agriculture and Fisheries
Article 26. Definition
1. This Chapter shall apply to trade in agricultural and fishery products originating in the EU or in Kosovo.
2. The term ‘agricultural and fishery products’ refers to the products listed in Chapters 1 to 24 of the Combined Nomenclature (2) and the products listed in Annex I, paragraph I, point (ii) of the WTO Agreement on Agriculture.
3. This definition includes fish and fishery products covered by Chapter 3, headings 1604 (Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs) and 1605 (Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved (excl. smoked)), and sub-headings 0511 91 (Fish waste), 2301 20 (Flours, meals and pellets of fish or crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption) and ex 1902 20 (‘stuffed pasta containing more than 20 % by weight of fish, crustaceans, molluscs or other aquatic invertebrates’).
It also includes the sub-headings 1212 21 00 (Seaweeds and other algae), ex 1603 00 (Extracts and juices of fish or crustaceans, molluscs or other aquatic invertebrates) and ex 2309 90 10 (Preparations of a kind used in animal feeding: fish solubles), as well as 1504 10 and 1504 20 (fats and oils and their fractions, of fish, whether or not refined, but not chemically modified):