Stabilisation and Association Agreement with Bosnia and Herzegovina

SUMMARY OF:

Stabilisation and Association Agreement between the European Communities and Bosnia and Herzegovina

Decision (EU, Euratom) 2015/998 concluding the Stabilisation and Association Agreement between the European Communities and Bosnia and Herzegovina

WHAT IS THE AIM OF THE DECISION AND THE AGREEMENT?

The decision marks the European Union's (EU’s) conclusion of the Stabilisation and Association Agreement (SAA) with Bosnia and Herzegovina.

The aims of the agreement are to:

support the efforts of Bosnia and Herzegovina to strengthen democracy and the rule of law;
contribute to political, economic and institutional stability in Bosnia and Herzegovina, 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 the Bosnia and Herzegovina;
support the efforts of Bosnia and Herzegovina to develop its economic and international cooperation, including through aligning its laws more closely to those of the EU;
support the efforts of Bosnia and Herzegovina to complete the transition into a functioning market economy;
promote harmonious economic relations and gradually develop a free trade area between the EU and Bosnia and Herzegovina;
foster regional cooperation in all the fields covered by this agreement.

KEY POINTS

The SAA comprises 10 headings.

1.
General principles
The SAA is based on a number of essential principles. Bosnia and Herzegovina agrees to:
- respect democratic principles and human rights, international law and instruments — including full cooperation with the International Criminal Tribunal for the former Yugoslavia — and the principles of market economy;
- fulfil international obligations;
- fight against the proliferation of weapons of mass destruction (WMD);
- take steps to sign, ratify, or accede to, as appropriate, and fully implement all relevant international instruments;
- establish an effective system of national export controls, control 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;
- promote international and regional peace and stability, and foster cooperation and good neighbourly relations in the region, including by:
  - developing projects of common interest;
  - an appropriate level of mutual concessions concerning the movement of persons, goods, capital and services;
- fight against terrorism.
2.
Political dialogue
Political dialogue between the 2 parties is to be further developed. It will promote in particular:
- full integration of Bosnia and Herzegovina into the community of democratic nations and gradual harmonisation (rapprochement) with the EU;
- 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 the common foreign and security policy of the EU.
3.
Regional cooperation
Bosnia and Herzegovina is required to:
- actively promote regional cooperation;
- negotiate with the countries which have already signed SAAs with the EU with a view to concluding bilateral agreements on regional cooperation;
- pursue regional cooperation with partners having signed SAAs and those involved in the stabilisation and association process (SAP);
- foster cooperation and conclude, if possible, cooperation agreements with any EU candidate country not concerned by the SAP.
The EU supports projects having a regional or cross-border dimension through its 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 5 years.
- The agreement sets out a process for reducing and removing customs tariffs and quotas on goods from both the EU and Bosnia and Herzegovina.
5.
Movement of workers, establishment, supply of services and movement of capital
- Nationals of Bosnia and Herzegovina working legally in an EU country must be free of any form of discrimination compared to nationals of the country concerned.
- Rules must be laid down to coordinate the social security systems for workers with nationality of Bosnia and Herzegovina 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 Bosnia and Herzegovina must be permitted in a freely convertible currency.
6.
Alignment of the laws of the country to those of the EU
- Bosnia and Herzegovina 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, freedom and security
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 efficiency and institutional capacity;
- visas, border management, asylum and migration;
- preventing and controlling illegal migration, readmission;
- preventing and fighting organised crime, corruption, terrorism and other illegal activities.
8.
Cooperation policies
The EU and Bosnia and Herzegovina should establish close cooperation on a wide range of policy areas to help the development and growth potential of the country. This cooperation must strengthen existing economic links on the widest possible foundation, to the benefit of both Bosnia and Herzegovina and the EU.
9.
Financial cooperation
- To help achieve the objectives of this agreement, Bosnia and Herzegovina 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 agreement establishes a stabilisation and association council to supervise the application and implementation of the agreement.

FROM WHEN DO THE DECISION AND THE AGREEMENT APPLY?

The decision has applied since 21 April 2015 and the agreement since 1 June 2015.

BACKGROUND

For further information, see:

Bosnia and Herzegovina (European Commission)
Western Balkans (European External Action Service)
Overview — Instrument for Pre-accession Assistance (European Commission)
EU enlargement package 2018 (European Commission).

MAIN DOCUMENTS

Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part (OJ L 164, 30.6.2015, pp. 2-547)

Amendments to the agreement have been incorporated into the original document. This consolidated version is of documentary value only.

Council and Commission Decision (EU, Euratom) 2015/998 of 21 April 2015 on the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part (OJ L 164, 30.6.2015, pp. 548-549)