Stabilisation and Association Agreement with Serbia

KEY POINTS

The SAA comprises 10 headings.

1. General principles

   The SAA is based on a number of essential principles. Serbia agrees to:

   • respect democratic principles and human rights, principles of international law — including full cooperation with the International Criminal Tribunal for the former Yugoslavia — the rule of law and the principles of market economy;
   • cooperate and contribute to countering the proliferation of weapons of mass destruction (WMD) and their means of delivery, including by:
     • taking steps to sign, ratify, or accede to, as appropriate, and fully implement all relevant international instruments;
     • establishing an effective system of national export controls, controlling the export as well as the transit of WMD-related goods, including a WMD end-use control on dual use technologies, and containing effective sanctions for breaches of export controls;
   • fulfil international obligations;
   • promote international and regional peace and stability and develop good neighbourly relations with the other countries of the region, including Serbia’s commitment to continue fostering cooperation;
   • fight against terrorism.
2. Political dialogue

   Political dialogue between the two parties is to be further developed. It will promote in particular:

   • full integration of Serbia into the community of democratic nations and gradual harmonisation (rapprochement) with the EU;
   • an increasing convergence of positions of the parties on international issues, including common foreign and security policy issues;
   • regional cooperation and the development of good neighbourly relations;
   • common views on security and stability in Europe, including cooperation in the areas covered by the common foreign and security policy of the EU.
3. Regional cooperation

   Serbia is required to:

   • actively promote regional cooperation;
   • start negotiations with the countries which have already signed an SAA with the EU with a view to concluding bilateral agreements on regional cooperation;
   • pursue regional cooperation with other countries concerned by the stabilisation and association process (SAP) in some or all the fields of cooperation covered by this agreement;
   • foster cooperation and conclude cooperation agreements with any EU candidate country not involved in the SAP. It must also start negotiations with Turkey with a view to concluding an agreement establishing a free trade area.

   The EU may support projects having a regional or cross-border dimension through its technical assistance programmes.

4. Free movement of goods
   • The 2 parties are committed to gradually establishing a bilateral free trade area over a period lasting a maximum of 6 years.
   • The SAA sets out a process for reducing and removing customs tariffs and quotas on goods from both the EU and Serbia.
5. Movement of workers, establishment, supply of services and movement of capital
   • Serbian nationals working legally in an EU country must be free of any form of discrimination compared to nationals of the country concerned. Serbia must grant the same treatment to EU workers.
   • Rules must be established to coordinate the social security system for workers with Serbian nationality legally employed in the territory of an EU country, and for the members of their families legally resident there. Serbia must grant similar treatment to EU workers.
   • Companies (as well as subsidiaries and branches) setting up operations on the territory of the other party must be granted no less favourable treatment than companies based in that territory.
   • Both parties must take steps which progressively allow their companies or nationals to supply services in the territory of the other party.
   • Any payments and transfers on the current account of balance of payments between the EU and Serbia must be permitted in a freely convertible currency.
6. Alignment of the laws of the country to those of the EU
   • Serbia agrees to ensure that its existing laws and future legislation will gradually be made compatible with the EU acquis and that such laws will be properly implemented and enforced.
   • Both sides are bound by competition rules, based on EU law, relating to actions that may affect trade between the two parties.
7. Justice, freedom and security

   Cooperation focuses on a number of specific areas, including:

   • consolidating the rule of law and reinforcing institutions at all levels in the areas of administration in general and in particular in law enforcement and the administration of justice, fighting corruption;
   • visas, border management, asylum and migration;
   • preventing and controlling illegal migration, readmission;
   • preventing money laundering and the financing of terrorism;
   • cooperating on illicit drugs;
   • preventing and combating organised crime and terrorism and other illegal activities.
8. Cooperation policies

   The EU and Serbia agree to establish close cooperation on a wide range of policy areas, such as economic and trade policy, industrial cooperation, education and training to help the development and growth potential of Serbia. This cooperation will strengthen existing economic links to the benefit of both parties.

9. Financial cooperation
   • To help achieve the objectives of this agreement, Serbia may receive financial assistance from the EU in the form of grants and loans, including loans from the European Investment Bank.
   • EU financial assistance is conditional on further progress in satisfying the Copenhagen criteria.
10. Supervision

    The SAA establishes a stabilisation and association council to supervise the application and implementation of the SAA.