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Main features (I) and full text (II) of the Memorandum of Understanding
on Trade Liberalisation and Facilitation, including Statement
of intent by Moldova (III)
I. MAIN FEATURES
The document sets out the importance of open trade regimes, recognising
the primacy of multilateral trading systems and creating a framework
for regional trade co-operation at the same time. The agreed actions
support the EU integration of the 7 countries.
Agreement has been reached by Albania, Bosnia-Herzegovina, Bulgaria,
Croatia, the FYR of Macedonia, Romania, the Federal Republic of
Yugoslavia on the following (supported by the signatory countries,
Moldova has expressed its wish to join the process and has signed
a statement of intent - see below, chapter III):
- Free trade between the signatory countries to be realised
by completing the network of free trade agreements between them
by the end of 2002.
- The agreements, both existing and those to be negotiated,
will provide for free trade in at least 90% of the parties'
mutual trade by value and of Harmonised System tariff lines;
major tariff reductions are to be implemented in the beginning,
with 6 year transition periods.
- The special status of those Signatory Countries that are candidates
for accession to the EU is recognised.
- A standstill clause for non-tariff measures is included.
It is agreed that the free trade agreements will contain i.a.:
- An appropriate common set of preferential rules of origin.
- WTO-consistent provisions for applying antidumping, countervailing
and safeguard measures.
- Transparent and non-discriminatory measures on public procurement,
state aid and state monopolies.
- A clause for the future liberalisation of services.
The Memorandum of Understanding expresses the Signatory countries'
intention to harmonise their legislation with that of the EU,
specifically on:
- Customs procedures and methodologies for the collection of
trade statistics.
- Company law, company accounts and taxes, banking law and competition
law.
The Memorandum of Understanding concludes by
- requesting the Stability Pact Working Group on Trade Liberalisation
and Facilitation to review progress and propose measures to
fulfil the provisions of the Memorandum;
- urging WTO members to support and facilitate early accession
to the WTO of the three countries still non-members;
- calling on the international community to provide technical
and financial assistance to allow the signatory countries to
meet the undertakings of the Memorandum;
- promoting the process of implementation through regular meetings
by Ministers in charge of trade of the signatory countries.
II. FULL TEXT OF MEMORANDUM OF UNDERSTANDING
ON TRADE LIBERALISATION AND FACILITATION
Ministers,
REPRESENTING the Republic of Albania, Bosnia and Herzegovina,
the Republic of Bulgaria, the Republic of Croatia, the Federal
Republic of Yugoslavia, the Republic of Macedonia and Romania
(hereafter the Signatory Countries), on the occasion of their
meeting on trade liberalisation and facilitation within the context
of the Stability Pact for South Eastern Europe, held in Brussels
on 27 June 2001;
HAVING REGARD to the pledge, made by signatories to the Stability
Pact in Cologne on 10 June, 1999, to foster "economic co-operation
in the region and between the region and the rest of Europe and
the world, including free trade areas";
RECALLING the Declaration of the Zagreb Summit on 24 November,
2000, in which Heads of State or Government of the Republic of
Albania, Bosnia and Herzegovina, the Republic of Croatia, the
Federal Republic of Yugoslavia, and the Republic of Macedonia
undertook to establish regional co-operation conventions providing
for a regional free trade area; and the SEECP Action Plan for
regional economic co-operation, agreed at the Fourth Summit in
Skopje on 22 and 23 February, 2001, in which Participating Countries
(the Republic of Albania, Bosnia and Herzegovina, the Republic
of Bulgaria, the Federal Republic of Yugoslavia, the Hellenic
Republic, the Republic of Macedonia, Romania and the Republic
of Turkey, reaffirmed that "further liberalisation of trade, undertaken
also by the countries of the region will better serve their national
economies";
RECOGNISING the primacy of the multilateral trading system as
compared with regional initiatives, in the fields of trade facilitation
and liberalisation that are mentioned below; the importance of
WTO membership and compliance with WTO rules as well as the importance
of liberal trade regimes in order to foster economic development;
and the relevance of the EU Stabilisation and Association process
and the EU enlargement process in this context;
DETERMINED to liberalise and facilitate trade further among
the Signatory Countries and to advance the accession to the WTO
of Bosnia and Herzegovina, the Federal Republic of Yugoslavia,
and the Republic of Macedonia;
CONVINCED that these measures will enhance the ability of the
region to attract investments and further the prospects of its
integration into the global economy;
HAVE today adopted this Memorandum of Understanding on Trade
Liberalisation and Facilitation.
The Signatory Countries agree to:
- Develop further the network of Free Trade Agreements on trade
in goods between the Signatory Countries, in compliance with
WTO rules and in accordance with the process and commitments
relevant to each country's individual relationship with the
EU. To this end, the Signatory Countries will:
- Refrain, upon signature of this Memorandum, from taking
any new trade restrictive or distorting measure, that would
go beyond that which is necessary to address specific and
sensitive situations in compliance with WTO rules, thereby
establishing a base line for the negotiation and, if applicable,
the revision of Free Trade Agreements.
- Negotiate mutually beneficial Free Trade Agreements between
themselves, with a view to signing the agreements, covering
products originating in the parties, by the end of 2002,
in accordance with the following principles:
- Export duties or charges having equivalent effect
shall be abolished upon entry into force of each agreement.
Quantitative restrictions on imports or exports and
measures having equivalent effect shall also be abolished.
- Import duties or charges having equivalent effect
shall be abolished on at least 90% of the parties' mutual
trade by value and of HS tariff lines by the end of
the transitional period.
- Import duties or charges having an equivalent effect
on a large majority of goods should be preferably abolished
upon entry into force of each FTA; those on sensitive
goods would be progressively reduced during a transitional
period of not more than 6 years.
- Review existing bilateral Free Trade Agreements already
concluded between the Signatory Countries and ensure that
they are compatible with the principles set out in paragraphs
1.2.1 to 1.2.3 by the end of 2002.
- Ensure that all these Free Trade Agreements enhance integration
of the Signatory Countries into EU structures. The Signatory
Countries which are candidates for accession to the EU will
conclude, as a first priority, free trade agreements with
those Signatory Countries with which the EU has concluded
SAAs, where such agreements do not yet exist; agreements
with the other Signatory Countries will be negotiated in
line with obligations undertaken in the framework of the
accession negotiations and in conformity with this Memorandum.
Candidates for accession to the EU will ensure that existing
and new agreements mirror, to the extent possible, the current
scope and level of liberalisation of EU arrangements.
- Set in motion, upon signature of this Memorandum and within
the context of the Stability Pact Working Group on Trade Liberalisation
and Facilitation, the Procedure to Eliminate Quantitative Restrictions
and Measures with Equivalent Effect on Trade, agreed by the
Signatory Countries to identify, review and eliminate such measures,
in particular those which are not compatible with WTO provisions.
- Include in the Free Trade Agreements an appropriate common
set of preferential rules of origin furthering the objectives
of this Memorandum.
- Ensure that provisions in the Free Trade Agreements regarding
the application of antidumping, countervailing and safeguard
measures, are consistent with WTO rules. Include provisions
related to public procurement, state aid and state monopolies
in the Free Trade Agreements in order to ensure further liberalisation,
transparency and non-discrimination in trade between the Signatory
Countries.
- Simplify customs procedures, especially at border crossings;
harmonise legislation, documentation and procedures with those
of the EU; engage in mutual assistance between customs administrations
and other agencies concerned with the cross-border movement
of goods, vehicles and persons; and harmonise methodologies
for the collection of trade statistics. To this end, they shall
continue to conclude appropriate agreements, in addition to
existing arrangements, where possible on a regional basis.
- Include in the Free Trade Agreements a clause foreseeing the
future liberalisation of trade in services, in accordance with
GATS Article V. The Signatory Countries request the Stability
Pact Working Group on Trade Liberalisation and Facilitation
to commission an assessment of the current situation in their
countries concerning trade in services and of prospects for
regional co-operation in this area.
The Signatory Countries intend to take additional steps to liberalise
and facilitate trade. To this end, they will:
- Ensure that trade legislation and regulations relating to
plant, animal and human health, safety and environment are compatible
with the provisions of WTO, EU and other relevant international
bodies, bearing in mind the Signatory Countries' current and
future obligations in their contractual relationships with the
EU.
- Co-operate in moving towards the implementation of standards,
technical regulations, conformity assessment, testing, metrology
and accreditation systems that are compatible with European
and international principles. The Signatory Countries shall
endeavour to participate in the work of relevant international
organisations, exchange technical and methodological information
in the field of quality control of production processes and
take other measures aimed at improving quality. They will pursue
mutual recognition and similar arrangements between themselves
and partners, which are consistent with the provisions of the
WTO and will promote co-operation among their standards and
accreditation bodies.
- Harmonise legislation on company law, company accounts and
taxes and banking law with that of the EU. The Signatory Countries
will also harmonise their competition law with that of the EU.
They will further strengthen, where necessary, the enforcement
capacity of relevant Authorities, including competition or similar
bodies, and establish such Authorities where none exist.
- Upgrade their legislation in the field of intellectual property
protection in compliance with the WTO Agreement on Trade-Related
Aspects of Intellectual Property Rights and other related international
agreements. They will develop and implement appropriate enforcement
measures in order to combat piracy and counterfeiting effectively.
- Maintain an open trade regime toward the rest of the world,
pursue further multilateral trade liberalisation within the
WTO and conclude Free Trade and other trade agreements with
neighbouring and other interested countries.
To ensure achievement of the undertakings outlined above, the
Signatory Countries:
- Request the Stability Pact Working Group on Trade Liberalisation
and Facilitation to review progress in the above undertakings
regularly and propose measures required to fulfil the provisions
of this Memorandum. The Working Group should also be used by
Signatory Countries to inform each other about developments
in the bilateral free trade agreements and other trade-related
measures.
- Appeal to WTO members to support, assist and facilitate early
accession to the WTO of Bosnia and Herzegovina, the Federal
Republic of Yugoslavia, and the Republic of Macedonia.
- Call upon the international community to provide technical
and financial assistance to facilitate for the Signatory Countries
to meet the above undertakings. They stress the importance of
the realisation of trade facilitation and promotion projects
that will benefit all Signatory Countries.
- Agree to meet again within twelve months of the date of signature
of this Memorandum and subsequently on a regular basis, to review
progress, to adopt measures to implement this Memorandum and
to develop further trade and investment.
SIGNED at Brussels, on 27th day of June in the year two thousand
and one.
(Followed by signature)
III. STATEMENT OF INTENT BY MOLDOVA
The Government of the Republic of Moldova hereby declares its intention
to develop closer economic relations with other countries in South
Eastern Europe. It agrees that the elimination of barriers and constraints
to international and regional trade will contribute to the prosperity
and stability of the region.
The Government of the Republic of Moldova commits itself unilaterally
and unconditionally to all obligations set out in the Memorandum
of Understanding (MoU) signed today in Brussels. It declares its
willingness to conclude bilateral Free Trade Agreements with all
the Signatory Countries in accordance with articles 1 to 6 of
the MoU. It also declares its willingness to undertake all additional
steps to liberalise and facilitate trade as set out in articles
7 to 8 of the MoU.
Brussels 27 June 2001
(Followed by signature)
For the Government of the Republic of Moldova
We the Ministers representing the Republic of Albania, Bosnia
and Herzegovina, the Republic of Bulgaria, the Republic of Croatia,
the Republic of Macedonia, Romania and the Federal Republic of
Yugoslavia accept and welcome the Republic of Moldova's association
with the Memorandum of Understanding which will contribute to
the improvement of economic and trade relations among our countries.
We declare our readiness to support all steps the Republic of
Moldova could undertake to implement the MoU. To that end, we
are pleased to welcome the Republic of Moldova to the Stability
Pact Working Group on Trade Liberalisation and Facilitation and
invite the Republic of Moldova to appoint a senior official to
the Group as soon as they become a participant of the Stability
Pact for South Eastern Europe.
Brussels 27 June 2001
(Followed by signature)
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