Stabilisation and Association Agreement with North Macedonia

SUMMARY OF:

Stabilisation and Association Agreement between the European Communities and the former Yugoslav Republic of Macedonia

Decision 2004/239/EC,Euratom concluding the Stabilisation and Association Agreement between the European Communities and the former Yugoslav Republic of Macedonia

Decision No 1/2018 on the transition to the second stage of the Association between the European Communities and the former Yugoslav Republic of Macedonia

WHAT IS THE AIM OF THE DECISIONS AND THE AGREEMENT?

Decision 2004/239/EC marks the European Union's (EU’s) conclusion of the Stabilisation and Association Agreement (SAA) with North Macedonia.

The aims of the agreement are to:

• support the efforts of North Macedonia to strengthen democracy and the rule of law;
• contribute to political, economic and institutional stability in North Macedonia, as well as to the stabilisation of the region;
• provide an appropriate framework for political dialogue, allowing the development of close political relations between the EU and North Macedonia;
• support the efforts of North Macedonia to develop its economic and international cooperation, including through aligning its laws more closely to those of the EU;
• support the efforts of North Macedonia to complete the transition into a functioning market economy;
• promote harmonious economic relations and gradually develop a free trade area between the EU and the North Macedonia;
• foster regional cooperation in all the fields covered by this agreement.

Decision No 1/2018 marks the passage to the second stage of the association agreement.

KEY POINTS

The SAA comprises 10 headings.

• 1.
  General principles

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

  • respect democratic principles and human rights, international law and instruments as well as the principles of market economy;
  • fight against terrorism and fulfil international obligations in this area.
  • promote international and regional peace and stability and foster cooperation and good neighbourly relations in the region, including
    • developing projects of common interest
    • an appropriate level of mutual concessions concerning the movement of persons, goods, capital and services.

   

• 2.
  Political dialogue

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

  • an increasing convergence of positions of the parties on international issues;
  • regional cooperation and the development of good neighbourly relations;
  • common views on security and stability in Europe, including in the areas covered by common foreign and security policy of the EU.

   

• 3.
  Regional cooperation

  North Macedonia is required to:

  • actively promote regional cooperation;
  • negotiate 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 countries involved in the stabilisation and association process (SAP) in some or all the fields of cooperation covered by this agreement;
  • conclude, if possible, cooperation agreements with any EU candidate country.

  The EU supports 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.
  • The SAA sets out a process for reducing and removing customs tariffs and quotas on goods from both the EU and North Macedonia.

   

• 5.
  Movement of workers, establishment, supply of services and movement of capital

  • Nationals of North Macedonia working legally in an EU country shall be free of any form of discrimination compared to nationals of the country concerned.
  • Rules shall be established to coordinate the social security system for North Macedonian nationals legally employed in the territory of an EU country, and for the members of their families legally resident there.
  • Companies (as well as subsidiaries and branches) based in one party will be allowed to set up operations on the territory of the other party under the same conditions as 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 North Macedonia must be permitted in a freely convertible currency.

   

• 6.
  Alignment of the laws of the country to those of the EU

  • North Macedonia 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 2 parties.

   

• 7.
  Justice and home affairs

  • The SAA emphasises the importance of the rule of law and reinforcing institutions at all levels.
  • Cooperation focuses on a number of specific areas, including:
    • independence of the judiciary, the improvement of its effectiveness and training in the legal professions;
    • visas, border control, asylum and migration;
    • preventing and controlling illegal migration, readmission;
    • preventing and combating crime, corruption, terrorism and other illegal activities.

   

• 8.
  Cooperation policies

  The EU and North Macedonia should establish close cooperation on a wide range of policy areas to help the development and growth potential of the country.

   

• 9.
  Financial cooperation

  To help achieve the objectives of this agreement, North Macedonia may receive financial assistance from the EU in the form of grants and loans, including loans from the European Investment Bank.

   

• 10.
  Supervision

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

   

FROM WHEN DO THE DECISIONS AND THE AGREEMENT APPLY?

Decision 2004/239/EC has applied since 23 February 2004 and the agreement since 1 April 2004. Decision No 1/2018 has applied since 4 December 2018.

BACKGROUND

In its 2018 enlargement package, the Commission recommended that the Council decide that accession negotiations be opened with North Macedonia, maintaining and deepening the current reform momentum on the urgent reform priorities, decisive for the country's further progress. In June 2018, the European Council set out the path towards opening accession negotiations in June 2019.

For further information, see:

• North Macedonia (European Commission)
• Western Balkans (European External Action Service)
• Overview — Instrument for Pre-accession Assistance (European Commission)
• EU Enlargement package 2018 (European Commission)
• Council conclusions 26 June 2018.

MAIN DOCUMENTS

Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part Protocol 1 on textile and clothing products Protocol 2 on steel products Protocol 3 on trade between the former Yugoslav Republic of Macedonia and the Community in processed agricultural products Protocol 4 concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation Protocol 5 on mutual administrative assistance in customs matters Final Act (OJ L 84, 20.3.2004, pp. 13-197)

Successive amendments to the agreement have been incorporated in the original text. This consolidated version is of documentary value only.

Council and Commission Decision 2004/239/EC,Euratom of 23 February 2004 concerning the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part (OJ L 84, 20.3.2004, pp. 1-2)

Decision No 1/2018 of the Stabilisation and Association Council of 4 December 2018 concerning the transition to the second stage of the Association between the European Communities and their Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, pursuant to Article 5(3) of the Stabilisation and Association Agreement (OJ L 18, 21.1.2019, pp. 51-54)

RELATED DOCUMENTS

Council Decision (EU) 2018/751 of 14 May 2018 on the position to be adopted on behalf of the European Union within the Stabilisation and Association Council established by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, concerning the transition to the second stage of the Association between the European Communities and their Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, pursuant to Article 5(3) of the Agreement (OJ L 126, 23.5.2018, pp. 3-5)

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — 2018 Communication on EU Enlargement Policy (COM(2018) 450 final, 17.4.2018)

Commission staff working document — The former Yugoslav Republic of Macedonia 2018 Report — Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions — 2018 Communication on EU Enlargement Policy (SWD(2018) 154 final, 17.4.2018)

Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II) (OJ L 77, 15.3.2014, pp. 11-26)

Information concerning the date of entry into force of the EC-fYROM Stabilisation and Association Agreement (OJ L 85, 23.3.2004, p. 26)

last update 05.04.2019