Stabilisation and Association Agreement with Montenegro

SUMMARY OF:

Stabilisation and Association Agreement between the European Communities and the Republic of Montenegro

Decision 2010/224/EU, Euratom concluding the Stabilisation and Association Agreement between the European Communities and the Republic of Montenegro

WHAT IS THE AIM OF THE DECISION AND THE AGREEMENT?

The decision marks the conclusion by the European Union (EU) of the Stabilisation and Association Agreement (SAA) with Montenegro.

The aims of the agreement are to:

support the efforts of Montenegro to strengthen democracy and the rule of law;
contribute to political, economic and institutional stability in Montenegro, and to the stabilisation of the wider western Balkans region;
provide an appropriate framework for political dialogue, allowing the development of close political relations between the EU and Montenegro;
support the efforts of Montenegro to develop its economic and international cooperation, including through aligning its laws more closely to those of the EU;
support the efforts of Montenegro to complete the transition to a functioning market economy;
promote harmonious economic relations and gradually develop a free trade area between the EU and Montenegro;
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. Montenegro 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 fight against 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,
  - fighting against terrorism and fulfil international obligations in this area,
  - fulfilling international obligations;
- promote international and regional peace and stability, and foster cooperation and good neighbourly relations in the region, including by:
  - developing projects of common interest,
  - allowing 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:
- the full integration of Montenegro 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 EU’s common foreign and security policy.
3.
Regional cooperation

Montenegro 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 in some or all the fields of cooperation covered by this agreement;
- conclude, if possible, cooperation agreements with any EU candidate country not involved in the stabilisation and association process.
The EU supports projects that have a regional or cross-border dimension through its technical assistance programmes.
4.
Free movement of goods
- The two parties are committed to gradually establishing a bilateral free trade area over a period lasting a maximum of 5 years.
- The SAA sets out a process for reducing and removing customs tariffs and quotas on goods from both the EU and Montenegro.
5.
Movement of workers, establishment, supply of services and movement of capital
- Montenegrin nationals working legally in an EU Member State must be free from any form of discrimination. Montenegro must grant the same treatment to EU workers.
- Rules must be established to coordinate the social security system for Montenegrin nationals legally employed in the territory of a Member State, and for the members of their families legally resident there. Montenegro must grant the same treatment to EU workers.
- Companies (as well as subsidiaries and branches) based in one party’s territory 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 Montenegro must be permitted in a freely convertible currency.
6.
Alignment of the laws of the country to those of the EU
- Montenegro 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

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 management, asylum and migration;
- preventing and controlling illegal migration;
- preventing and combating money laundering, organised crime, corruption, terrorism and other illegal activities.
8.

Cooperation policies

The EU and Montenegro agree to establish close cooperation on a wide range of policy areas to help the development and growth potential of Montenegro.
9.
Financial cooperation
- To help achieve the objectives of this agreement, Montenegro 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 agreement.
- It is assisted by a stabilisation and association committee, composed of representatives of the Council of the European Union and the European Commission, on the one hand, and of representatives of the government of Montenegro on the other.

There are two annexes which deal with Montenegrin tariff concessions for EU industrial products.

Several protocols to the agreement have been signed. These concern:

the accession of Croatia to the EU in 2013;
the trade arrangements for processed agricultural products;
arrangements applicable to wine and spirit drinks products;
unrestricted road transit traffic between the parties;
State aid in the steel industry;
rules on mutual administrative assistance between the parties in the customs field;
dispute resolution; and
Montenegro’s participation in EU programmes.

DATE OF ENTRY INTO FORCE

The agreement entered into force on 1 May 2010.

BACKGROUND

For further information, see:

Montenegro (European Commission)
Western Balkans (European External Action Service)
Overview – Instrument for Pre-accession Assistance (European Commission).

MAIN DOCUMENTS

Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (OJ L 108, 29.4.2010, pp. 3–354).

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

Council and Commission Decision 2010/224/EU, Euratom of 29 March 2010 on the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (OJ L 108, 29.4.2010, pp. 1–2).