SAA

On 10 October 2005, in the Palace of the State Union of Serbia and Montenegro, a formal session was held marking the start of negotiations between the European Union and Serbia and Montenegro on the signing of the Stabilisation and Association Agreement, which represents the first step towards EU integration. The ceremony was attended by the Commissioner for Enlargement Olli Rehn, the then-President of the State Union of Serbia and Montenegro Svetozar Marović, Serbian Prime Minister Vojislav Koštunica, Prime Minister of Montenegro Milo Đukanović and the Ambassador of Great Britain, David Gowan, whose country at that time held the chairmanship over the European Union. On this occasion, Prime Minister Koštunica assessed that the signing of the Stabilisation and Association Agreement had "the importance and value of the angular stone in the building of comprehensive reform, which is still being built."

Negotiations were concluded on 10 September 2007 in Brussels, with the ending of the fifth round of technical negotiations between Serbia and the EU. On 7 November the same year, the Stabilisation and Association Agreement was initialled. The Serbian Assembly ratified the Stabilisation and Association Agreement (SAA) and Interim Agreement on 9 September 2008. The SAA and the Interim Trade Agreement were signed on 29 April 2008 in Brussels. From 1 February 2009, Serbia has been unilaterally implementing the interim trade agreement, while the ratification of the Stabilization and Association Agreement by the EU member states is expected during this year.

Negotiations will end with the ratification of the SAA in the Serbian Assembly and by EU member states, and after the approval of the European Parliament.

The Stabilisation and Association Agreement (SAA) is an international treaty, whose signing will grant Serbia the status of associated state to the European Union. By signing this agreement, the relations between Serbia and the European Union become double-binding, with precisely defined rights and obligations of both parties. Relations between Serbia and the European Union established by this agreement will define mutual rights and obligations until the moment Serbia joins the EU and confirms the possibility of Serbia's accession to the EU, depending on the social development and progress in reforms.

You can learn more about the SSA in the brochure of the Office for EU Integration.

The two most important obligations that the Republic of Serbia will commit to under this agreement shall be the establishment of a free trade area and harmonization of legislation of the Republic of Serbia with the EU law.

With this agreement, which Serbia began applying unilaterally on 1 February 2009, a free trade area between Serbia and the EU is created for a period of six years. The deadline for liberalization of trade is determined in accordance with the capacity of Serbian industry and agriculture to adapt to free trade, but also with Serbia's desire for faster completion of reforms and accession to the European Union. This term has been defined taking into account the deadlines agreed to by other countries within the Stabilisation and Association Process (Macedonia 10 years, Albania 10, Croatia 6, Bosnia and Herzegovina 6, and Montenegro 5 years).

Serbia's obligation is to phase out tariffs on goods originating in the EU for a transitional period of six years, which ends January 2015. On the other hand, with this agreement the European Union confirms the free access of goods from Serbia to the EU market.

The pace of liberalization and the degree of protection depends on the degree of product sensitivity for the industry of Serbia. Three groups of industrial products were defined, according to sensitivity, for which liberalization will be achieved after a period of two, five or six years. For products that are not on these lists, customs duties will be abolished at the moment the Agreement comes into force. It is ensured that thekey sectors of domestic industry (such as automobile industry, toys, footwear, ceramics ...) remain at a high level of protection during the transitional period of five or six years.

The abolition of tariffs for agricultural products, processed agricultural products, fish and fishery products will also be achieved gradually over a transitional period of six years, while maintaining tariff protection for certain products (approximately 20 percent of products) even after the interim period. It was agreed that sensitive products such as meat, milk and wheat remain at a high level of protection during the five-year transitional period. The retention of seasonal protection for a number of sensitive products, fruits and vegetables such as tomatoes, peppers, plums and apples, has also been ensured.

Serbia has been provided with an export quota of 180,000 tons of sugar and 8,700 tons of beef a year. For the first time Serbia has been provided a guaranteed annual quota for export of wine amounting to 63,000 hectoliters, which will enable investment in the sector. The negotiations also resulted in quotas to export 15 tons of trout and 60 tons of carp from Serbia to the EU.

The Stabilisation and Association Agreement prescribes the obligation of the Republic of Serbia to harmonize national legislation with the acquis communautaire in the agreed time period. Given the scope of legal acts of the EU, priority areas were identified that have a direct impact on creating a free trade area between the EU and Serbia.

In accordance with that, alignment begins from the following fields: protection of competition and control of state aid allocation (subsidies), intellectual property rights, public procurement, standardization and consumer protection.

Serbia has committed to open public enterprises to competition from the EU within three years after the rules of competition applicable to public enterprises come into force, which is the deadline to allow the adaptation of these enterprises to market competition.

With this Treaty, the European Union and Serbia confirm that they will cooperate in many fields such as social policy, education and training, culture, information and communications, transport, energy, environment, research and technological development, which will help Serbia gain access to programs of technological and scientific development that exist within the European Union and which are necessary for the sake of the overall development of the country and in order to stop the "brain drain" and the departure of young people.

By signing the SAA and ratifying the CEFTA agreement, Serbia completes the system of contractual trade relations with neighboring countries, thus ensuring for its producers a market of over half a billion consumers, which will make Serbia even more favorable for further investments and business.