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WORLD TRADE

ORGANIZATIONWT/REG226/1/Rev.129 April 2008(08-2067)

Committee on Regional Trade Agreements

FACTUAL PRESENTATION

Interim Agreement on Trade and Trade-related Matters between the

European Communities and Albania(Goods)

Report by the Secretariat

Revision

This report, prepared for the consideration of the Interim Agreement on Trade and Trade-related Matters between the European Communities and Albania has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671).

Any technical questions arising from this report may be addressed to Ms. Juneyoung Lee (tel: +41 22 739 6791).

WT/REG226/1/Rev.1Page iii

TABLE OF CONTENTS

Page

I. TRADE ENVIRONMENT 1

II. TREATY CHARACTERISTIC ELEMENTS 4A. BACKGROUND INFORMATION 4B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT 6

1. Import duties and charges, and quantitative restrictions 6(a) General provisions 6(b) Liberalization of trade and tariff lines 7(c) The EC's liberalization schedule 7(d) Albania's liberalization schedule 8(e) Tariff-rate quotas 9

2. Rules of origin 103. Export duties and charges, and quantitative restrictions 11

C. REGULATORY PROVISIONS OF THE AGREEMENT 12

1. Standards 12(a) Sanitary and phytosanitary measures 12(b) Technical barriers to trade 12

2. Safeguard mechanisms 12(a) Global safeguards 12(b) Bilateral safeguards 12(c) Special safeguards 13

3. Anti-dumping and countervailing measures 13

4. Subsidies 14

5. Other regulations 14(a) Customs-related procedures 14(b) Competition policy and State-aid 14(c) State monopolies 15(d) Government procurement 15(e) Intellectual property 16(f) Shortage clause 16(g) Transit traffic 17

D. SECTOR-SPECIFIC PROVISIONS OF THE AGREEMENT 171. Iron and steel products 172. Wines, spirits and aromatized wines 18

(a) Reciprocal and preferential trade concessions for certain wines. . .18(b) Reciprocal recognition, protection and control of wine, spirits and

aromatized wine names 18E. GENERAL PROVISIONS OF THE AGREEMENT 20

1. Transparency 202. Exceptions 203. Accession 204. Institutional framework 215. Dispute settlement 216. Relationship with other agreements concluded by the Parties 21

ANNEX I 23

ANNEX II 26

WT/REG226/1/Rev.1Page iv

WT/REG226/1/Rev.1Page 1

INTERIM AGREEMENT ON TRADE AND TRADE-RELATED MATTERS BETWEEN THE EUROPEAN COMMUNITIES AND ALBANIA (GOODS)

Factual Presentation by the Secretariat

I. TRADE ENVIRONMENT

1. The interim agreement on trade and trade-related matters between the European Communities (EC) and Albania (hereinafter referred to as 'the Agreement') is a step envisaged under the Stabilization and Association Process (SAP).1 The Agreement is Albania's second free trade agreement after the Central European Free Trade Agreement (CEFTA).2

2. The EC is Albania's first export destination accounting for 88.7 % of the total value of its exports, followed by the Former Yugoslav Republic of Macedonia(2.4%); Turkey(1.7%); and the United States(1.0%). The EC is also Albania's first import source with 63.6% of the total value of imports, followed by Turkey(7.5%); China(6.5%); the Russian Federation(4.0%); and Ukraine(2.9%).3

3. The EC(25)'s GDP was estimated at €10,884 billion in 2005, while that of Albania reached €6,738 million in the same year.4 With total merchandise exports of €1,072 billion and imports of €1,184 billion, the EC ranked in 2005 as the first exporter and the second importer in the world (merchandise excluding intra-EC trade); with merchandise exports of €529 million and imports of €2,105 million, Albania ranked as the 147th exporter and the 117th importer (merchandise including intra-EC trade) in that year.5

4. Recent developments in global and intra-Party trade are presented in Charts I.1 and I.2. Over the period surveyed (1999-2006), Albania has run a consistent trade deficit with the EC.

1 The SAP is the EC's policy scheme for the countries of the Western Balkans – Albania; Bosnia and Herzegovina; Croatia; the Former Yugoslav Republic of Macedonia; Montenegro; and Serbia. This policy has three major goals: stabilization and a transition to a market economy; the promotion of regional cooperation; and the Western Balkan countries' eventual accession to the European Union. Consulted at: http://ec.europa.eu/enlargement/enlargement_process/accession_process/how_does_a_country_join_the_eu/sap/index_en.htm.

2 Parties to the CEFTA are Albania; Bosnia and Herzegovina; Croatia; Former Yugoslav Republic of Macedonia; Moldova; Montenegro; Serbia; and United Nations Interim Administration Mission in Kosovo.

3 WTO Statistics Database, Trade Profiles.4 Eurostat for the EC and WTO Statistics Database, Trade Profiles for Albania.5 WTO Statistics Database, Trade Profiles.


0

250

500

750

1,000

1,250

1,500

1999 2000 2001 2002 2003 2004 2005 20060.0

0.5

1.0

1.5

2.0

2.5

3.0

€ billion € billion

Chart I.1 - EC: merchandise imports from and exports to world and Albania, 1999-2006

Source: Eurostat statistical database. Viewed at: http://epp.eurostat.ec.europa.eu.

Imports from AlbaniaExports to Albania

Total importsTotal exports

Left hand scale: Right hand scale:

Note: Data for 1999-2003 is for EC(15); 2004-2006 is for EC(25).

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1999 2000 2001 2002 2003 2004 2005 20060.0

0.5

1.0

1.5

2.0

2.5

3.0

€ billion € billion

Chart I.2 - Albania: merchandise imports from and exports to world and the EC, 1999-2006

Source: UNSD, Comtrade database.

Imports from the ECExports to the EC

Total importsTotal exports

Left hand scale: Right hand scale:

Note: Data for 1999-2003 is for EC(15); 2004-2006 is for EC(25).

5. The commodity structure of trade among the Parties, as well as of their imports and exports to the world in the period 2004-2006, is shown in Chart I.3 on the basis of Harmonized System (HS) section.


Chart I.3EC(25) and Albania: product composition of merchandise trade, annual average (2004-2006)

EC(25) imports from Albania Albania's imports from the EC(25)

Sources : UNSD, Comtrade database

Per cent

Total: €427.7 million Total: €1,361.3 million

Total: €1,190.5 billion Total: €2,130.1 million

Total: €1,074.8 billion Total: €548.9 million

EC(25) global exports Albania's global exports

EC(25) global imports Albania's global imports

Other5.2

Chemicals 7.6Base Metals

14.2Vehicles 8.2

Machinery 4.6

Machinery16.9

Other 6.1

Stone, cement 4.1

Base Metals 8.7

Wood Pulp 2.1

Other 7.9 Machinery

16.1

Animals 2.9

Prepared Foods 7.8

Base Metals 11.1

Plastics 3.3

Other6.3

Minerals23.9

Optical 3.8

Machinery24.2

Vehicles7.9

Chemicals 7.4

Textiles 6.3

Base metals 6.5

Prepared Foods 4.5

Machinery30.1

Raw hides 2.7

Pearls 2.6Plastics 2.5

Vehicles 6.2

Other 9.6

Other 6.1

Minerals 4.3

Vehicles 14.8

Chemicals 14.0

Base Metals 6.7

Optical 4.8

Textiles 3.5

Minerals 4.4

Plastics 3.9

Prepared Foods 3.3Pearls 2.6

Wood Pulp 2.3

Base Metals 15.3

Minerals5.8

Machinery 3.6

Raw hides 2.0

Footwear 31.7

Vegetables 2.2

Miscellaneous 2.0

Minerals12.3

Textiles 9.6

Textiles 27.0

Articles of good 2.4

Prepared Foods 3.7

Textiles 11.8

Minerals 9.5

Prepared Foods 9.0

Vegetables 3.9

Raw hides 3.4Plastics 3.3

Footwear 3.2Miscellaneous 2.2

Miscellaneous 2.4Vegetables 2.3

Prepared Foods 2.2

Vegetables 6.2

Stone, cement 3.7

Footwear 2.8Miscellaneous 2.3

Raw hides 2.3

Textiles 30.6

Footwear 27.0

Vegetables 3.0Miscellaneous 2.1

Chemicals 7.1


6. The EC’s four largest export product categories – machinery, vehicles, chemicals and base metals – made up 65.6% of its total exports in 2004-2006 and accounted for 41.4% of Albania’s imports from the EC. Albania’s four largest export product categories – textiles, footwear, base metals and minerals – made up 78.7% of its total exports in 2004-2006 and accounted for 77.2% of the EC’s imports from Albania.

II. TREATY CHARACTERISTIC ELEMENTS

A. BACKGROUND INFORMATION

7. The Agreement was signed by the EC and Albania on 12 June 2006. The Agreement entered into force for all Parties on 1 December 2006.

8. The Agreement was put into place to allow the EC and Albania to benefit from the trade and trade-related provisions of the Stabilization and Association Agreement6 (hereinafter referred to 'SAA') which Albania and the EC signed on 12 June 2006, but which is subject to ratification by the EU Member States and therefore not yet in force.7

9. The goods aspects of the Agreement was notified to the WTO by the Parties on 1 March 2007 under Article XXIV of the GATT 1994 and the Understanding on the Interpretation of Article XXIV of GATT 1994 (WT/REG226/N/1). The text of the Agreement is available, together with its related schedules, annexes and protocols, on the official website of the EC:

http://europa.eu.int/eur-lex/lex/JOIndex.do?year=2006&serie=L&textfield2=239&Submit=Search

10. The Agreement is composed of four Titles, three Chapters and has related Annexes, Protocols and Appendixes, as follows:

Box II.1: Composition of the Agreement

Preamble Title I – General PrinciplesTitle II – Free Movement of Goods

Chapter I – Industrial ProductsChapter II – Agriculture and fisheriesChapter III – Common provisions

Title III – Other Trade and Trade-Related ProvisionsTitle IV– Institutional, General and Final Provisions

Annex I- Albanian Tariff Concessions for the EC Industrial Products (referred to in Article 6)Annex II(a) – Albanian Tariff Concessions for Agricultural Primary Products Originating in the EC (referred to in Article 14(3)(a))Annex II(b) – Albanian Tariff Concessions for Agricultural Primary Products Originating in the EC (referred to in Article 14(3)(b))Annex II(c) – Albanian Tariff Concessions for Agricultural Primary Products Originating in the EC (referred to in Article 14(3)(c))Annex III – EC Concessions for Albanian Fish and Fishery ProductsAnnex IV- Intellectual, Industrial and Commercial Property Rights

Box II.1 (Cont'd)

6 http://ec.europa.eu/enlargement/pdf/albania/st08164.06_en.pdf7 Stabilization and Association Agreements (SAAs) aim to provide for economic development and

political stabilization of the countries in the region, and to establish a close and long-term association between the EC and the Western Balkans. Two SAAs have entered into force: with the former Yugoslav Republic of Macedonia and with Croatia (G/C/W/552, 5 May 2006). A SAA with Montenegro was signed on 15 October 2007. Negotiations have been finalized on SAAs with Bosnia and Herzegovina and Serbia.


Protocol 1 – On Iron and Steel ProductsProtocol 2 – On Trade between Albania and the EC in the Sector of Processed Agricultural Products

Annex I – Duties Applicable upon Imports into the EC of Processed Agricultural Products Originating in AlbaniaAnnex II(a) – Duties Applicable upon Imports into Albania of Processed Agricultural Products Originating in the ECAnnex II(b) – Albanian Tariff Concessions for Processed Agricultural Products Originating in the EC (eliminated on the date of entry into force of the Agreement)Annex II(c) – Albanian Tariff Concessions for Processed Agricultural Products Originating in the EC (reduced and eliminated following by the time schedule therein)Annex II(d) – For Those that MFN Custom Duties Will Continue to Apply by Albania

Protocol 3 – On Reciprocal Preferential Concessions for Certain Wines, the Reciprocal Recognition, Protection and Control of Wine, Spirits and Aromatised Wine Names

Annex I – Agreement between the EC and Albania on Reciprocal Preferential Trade Concessions for Certain WinesAnnex II – Agreement between the EC and Albania on the Reciprocal Recognition, Protection and Control of Wine, Spirits and Aromatised Wine NamesAppendix 1 – List of Protected NamesAppendix 2 – List of Traditional Expressions and Quality Terms for Wine in the ECAppendix 3 – List of Contact Points

Protocol 4 – Concerning the Definition of the Concept of 'Originating Products' and Methods of Administrative Cooperation

Annex I – Introductory Notes to the List in Annex IIAnnex II – List of Working or Processing Required to be Carried Out on Non-Originating Materials in Order that the Product Manufactured Can Obtain Originating StatusAnnex III – Specimens of Movement Certificate EUR.1 and Application for a Movement Certificate EUR.1Annex IV – Text of the Invoice Declaration

Protocol 5 – On Mutual Administrative Assistance in Customs MattersFinal ActJoint Declarations

Source: The Agreement.

11. The Parties will gradually establish a free trade area over a maximum period of ten years starting from the date of entry into force of the Agreement (Article 3.1).8 No overall implementation period is explicitly stated in the Agreement. However, Albania's schedules of concessions on industrial products foresees implementation up to the fifth year following the date of entry into force of the Agreement (1 January 2011). In addition, for a number of agricultural products, Albania's duty reduction and elimination is to be completed on 1 January of the fourth year following the date of entry into force of the Agreement (1 January 2010).9

12. The Combined Nomenclature (CN) of goods is applied to the classification of goods in trade between the Parties (Article 3.2).

8 Article XXIV.5.(c) of the GATT 1994 states that any interim agreement shall include a plan and schedule for the formation of a free-trade area within a reasonable length of time.

9 According to the Parties, a shorter transitional period of ten years applies for the elimination of duties.


B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT

1. Import duties and charges, and quantitative restrictions

(a) General provisions

13. The Agreement covers agricultural and fish products (CN Chapters 1-24 and products listed in Annex 1,1,(ii) of the WTO Agreement on Agriculture as well as fish and fish products)10 and industrial products (CN Chapters 25-97 with the exception of the products listed in Annex 1,1,(ii) of the WTO Agreement on Agriculture).11 Products covered by the Treaty establishing the European Atomic Energy Community shall be treated according to the provisions of that Treaty.

14. The Parties cannot increase existing, or introduce new, customs duties on imports or charges having equivalent effect on their mutual trade in products covered by the Agreement. The Parties also cannot introduce any new or more restrictive quantitative restrictions on their mutual trade in products covered by the Agreement (Articles 20.1 and 20.2).

15. The base rate used by the Parties for implementing tariff liberalization under the Agreement is the applied MFN duty on the day preceding the signature of the Agreement (11 June 2006) (Article 3.3).

16. As regards agriculture and fisheries, the Parties shall abolish all quantitative restrictions and measures having equivalent effect on imports on the date of entry into force of the Agreement (Article 13). The EC shall abolish import duties and charges having equivalent effect on agricultural products originating in Albania from the date of entry into force of the Agreement with some exceptions (Article 14.1).12 On fish and fish products, the EC shall eliminate import duties on the date of entry into force of the Agreement with the exception of some fish products that are subject to tariff-rate quotas under Annex III of the Agreement (Article 15.1). Albania shall abolish or reduce progressively import duties on agricultural products originating in the EC from the date of entry into force of the Agreement (Article 14.3 (a)(b), Annex II (a)(b), and Annex II(a)(b)(c) of Protocol 2). The Parties shall examine the possibilities of granting each other further concessions to implement greater liberalization of the trade in agricultural and fishery products. This shall be conducted in the Stabilization and Association Council13, no later than six years after the date of entry into force of the Agreement, on a product by product and orderly and appropriate reciprocal basis (Article 16).

17. The Parties abolish import duties, charges and quantitative restrictions on industrial products upon entry into force of the Agreement, with the exception of some goods originating in the EC that Albania will progressively reduce import duties on until 1 January of the fifth year following the date of entry into force of the Agreement, when the duties will be removed (Articles 5-7 and Annex I). The liberalization of import duties on industrial products may be accelerated by Albania if its general economic situation, and the situation of the economic sector concerned, allow. The Stabilization and Association Council will analyse the situation and make any relevant recommendations (Article 9).

10 Article 11.3 of the Agreement defines fish and fish products as CN Chapter 3; Headings 1604 and 1605; and Sub-headings 051191, 23012000 and 19022010. Fish and fish products are not included in the WTO definition of agriculture.

11 Iron and steel products listed in CN Chapters 72 and 73 are detailed in Protocol 1 of the Agreement.12 The exceptions are under Headings 0102, 0201, 0202, 1701, 1702 and 2204.13 According to the Stabilization and Association Agreement between the EC and their Member States

and Albania, the Stabilization and Association Council shall consist of the members of the Council of the European Union and of the Commission of the EC, on the one hand, and members of the Government of Albania, on the other (Article 117.1).


(b) Liberalization of trade and tariff lines

18. The EC's MFN tariff schedule in 2006 comprised 9,843 tariff lines at the 8-digit level, out of which 989 held non ad valorem duties. Table II.1.A shows duty elimination in terms of tariff lines and trade, as applied by the EC to imports from Albania. 2,559 tariff lines (26% of the EC's tariff lines) were already duty-free on an MFN basis. As a result of the Agreement an additional 7,154 tariff lines (72.7% of its tariff lines) became duty free for imports from Albania; the EC eliminated duties on Albanian goods on 98.7% of its tariff lines and for 100% of the value of imports from Albania.

19. Albania's MFN tariff schedule in 2006 comprised 10,175 tariff lines at the 8-digit level, all consisting of ad valorem duties. Table II.1.B shows duty elimination in terms of tariff lines and trade, as applied by Albania to the EC. 3,377 tariff lines (33.2% of Albania's tariff lines) were already duty-free on an MFN basis. Upon entry into force of the Agreement, an additional 5,435 tariff lines (53.4% of tariff lines) became duty-free for imports from the EC; 86.6% of Albania's tariff lines became duty-free for products of EC origin and for 77.1% of the value of imports from the EC. A further 39, 576 and 105 tariff lines are to become duty-free in 2009, 2010 and 2011, respectively. By 2011, duty-free tariff lines under the Agreement are expected to increase to 93.7%.

Table II.1Tariff elimination commitments under the Agreement and corresponding average trade A: The EC

Duty phase-out period Number of lines

% of total lines in the EC's Tariff

Schedule

Value of EC imports from Albania

(€ million)2004-2006

% of total EC imports from Albania

2004-2006

MFN duty free 2,559 26.0 79 37.6

1 December 2006 7,154 72.7 131 62.4

Remain dutiable 130 1.3 0.1 0.0

Total 9,843 100.0 210.1 100

B: Albania

Duty phase-out period Number of lines

% of total lines in Albania's Tariff

Schedule

Value of Albania's imports from the EC

(€ million)2004-2006

% of total Albanian imports

from the EC2004-2006

MFN duty free 3,377 33.2 410 30.31 December 2006 5,435 53.4 632.5 46.8

2009 39 0.4 17.9 1.3

2010 576 5.7 105.6 7.8

2011 105 1.0 147.6 10.9

Remain dutiable 643 6.3 37.5 2.8

Total 10,175 100.0 1,351.2 100.0

Source: WTO Secretariat estimates based on data provided by the EC and Albanian authorities.

(c) The EC's liberalization schedule

20. Table II.2 shows the EC tariff elimination commitments vis-à-vis Albania by HS section product categories. The 130 tariff lines which remain dutiable after entry into force of the Agreement (1.3% of EC tariff lines) are found in HS sections IV and I (prepared food and live animals and animal products).


Table II.2The EC: Tariff elimination under the Agreement, by HS section

HS section and description

MFNaverage

%

TotalNo of lines

Number of duty-free lines

MFN

2006

Under the Agreement on 1 December

2006

Remain dutiable

I Live animals and animal products 21.7 799 114 631 54II Vegetable products 15.3 543 137 406III Animal or vegetable fats and oils 9.2 125 22 103IV Prepared food etc. 17.9 834 93 665 76V Minerals 0.8 247 183 64VI Chemicals and chemical products 4.4 1,285 353 932VII Plastics and rubber 4.6 351 67 284VIII Hides and skins 2.9 155 47 108IX Wood and articles 2.7 188 85 103X Pulp, paper etc. 0.0 224 224XI Textiles and textiles articles 7.9 1,228 52 1,176XII Footwear, headgear 7.9 111 2 109XIII Articles of stone 3.9 251 34 217XIV Precious stones, etc. 0.7 63 48 15XV Base metals and base metals products 1.9 1,000 508 492XVI Machinery 2.1 1,537 377 1,160XVII Transport equipment 4.7 280 32 248XVIII Precision equipment 2.2 357 103 254XIX Arms and ammunition 2.2 28 5 23XX Misc. manufactured articles 2.4 230 66 164XXI Works of art, etc. 0.0 7 7Total 6.9 9,843 2,559 7,154 130

Note: In-quota tariff lines are excluded.

Source: WTO estimates based on data provided by the EC authorities.

(d) Albania's liberalization schedule

21. Table II.3 shows Albania's tariff elimination commitments vis-à-vis the EC by HS section. Of the remaining 1,363 tariff lines subject to duty after entry into force of the Agreement, 39 lines are to be fully liberalized by 2009; they include mostly base metals and base metal products. The additional 576 tariff lines to be fully liberalized by 2010 are all agricultural products while all remaining industrial tariffs (105 tariff lines) are to be fully liberalized by 2011. Those that will continue to remain dutiable after implementation of the Agreement (643 tariff lines or 6.3% of Albania's tariff lines) are prepared food; live animals and animal products; and vegetable products.Table II.3Albania: Tariff elimination under the Agreement, by HS section

HS section and descriptionMFN

average%

TotalNo of lines

MFN 2006 duty-free

lines

Number of lines duty-free under the Agreement in:

Remain dutiable

*

1. Dec. 2006 2009 2010 2011

I Live animals and animal products 5.5 805 328 63 130 284II Vegetable products 8.2 560 32 253 218 57III Animal or vegetable fats and oils 2.2 125 92 22 8 3IV Prepared food etc. 10.5 843 65 259 220 299V Minerals 4.4 248 28 204 1 15VI Chemicals and chemical products 1.6 1,284 633 630 4 17VII Plastics and rubber 6.3 368 48 299 21VIII Hides and skins 8.6 155 155IX Wood and articles 2.0 189 128 61X Pulp, paper etc. 1.6 226 165 61XI Textiles and textiles articles 9.7 1,288 1,288XII Footwear, headgear 14.3 111 92 19XIII Articles of stone 10.1 255 6 230 19XIV Precious stones, etc. 6.1 63 63XV Base metals and base metals products

7.4 1,020 226 763 27 4

Table II.3 (Cont'd)


HS section and descriptionMFN

average%

TotalNo of lines

MFN 2006 duty-free

lines

Number of lines duty-free under the Agreement in:

Remain dutiable

*

1. Dec. 2006 2009 2010 2011

XVI Machinery 1.3 1,679 1,339 330 10XVII Transport equipment 4.0 292 79 213XVIII Precision equipment 3.5 392 191 201XIX Arms and ammunition 15.0 28 28XX Misc. manufactured articles 12.1 237 10 220 7XXI Works of art, etc. 0.0 7 7Total 5.7 10,175 3,377 5,435 39 576 105 643

*: as of 1 January 2011.


Source: WTO estimates based on data provided by the Albanian authorities.

(e) Tariff-rate quotas

(i) Maintained by the EC

22. The EC maintains tariff-rate quotas on products of cane and beet sugar and chemically pure sucrose, in solid form, and other sugars; wine; and some fish and fish products. See Annex II for a more detailed description of the tariff-rate quotas under the Agreement.

23. On cane and beet sugar and chemically pure sucrose, in solid form (CN 1701), and other sugars (CN 1702) originating in Albania, the EC applies duty-free access within the limit of an annual tariff-rate quota of 1,000 tonnes from the date of entry into force of the Agreement; above th is quota volume, the full MFN rate of duty is applicable (Article 14.2). Further liberalization of the tariff-rate quota on these products is not mentioned.

24. On wine, the EC grants duty-free access for quality sparkling wine (CN ex 220410) and wine of fresh grapes (CN ex 220421) originating in Albania up to 5,000 hl from the date of entry into force of the Agreement; above this quota volume, the full MFN rate of duty is applicable. In addition, wine of fresh grapes (CN ex 220429) is entitled to duty-free access up to 2,000 hl from the date of entry into force of the Agreement; above this quota volume, the full MFN rate of duty is applicable. At the request of one of the Parties, consultations may be held to adapt the quotas by transferring quantities from the quotas applying to CN ex 220429 to CN ex 220410 and ex 220421 (Article 1, Annex I of Protocol 3). The EC shall examine the opportunities for granting further concessions to Albania no later than in the first quarter of 2008 (Article 7, Annex I of Protocol 3).

25. With regard to fish and fish products, trout; carp; sea bream; sea bass; prepared or preserved sardines; and prepared or preserved anchovies listed in Annex III of the Agreement are subject to tariff-rate quotas.14 For trout; carp; sea bream; and sea bass, the tariff-rate quota is applied from the date of entry into force of the Agreement for an indefinite period. For prepared or preserved sardines, a rate of 6% of the MFN duty is applicable for up to 100 tonnes from the date of entry into force of the Agreement; above this quota volume, the full MFN rate of duty is applicable. Prepared or preserved anchovies enter duty-free within the quota of 1,000 tonnes from the date of entry into force of the Agreement and over this quota volume, the full MFN rate of duty is applicable. From the first of January of the first year following the date of entry into force of the Agreement (1 January 2007), the annual volume of the quota on prepared or preserved anchovies will be increased by 200 tonnes provided that at least 80% of the previous year's quota has been used by

14 For all products under HS 1604 except prepared or preserved sardines and anchovies, 80% of MFN will be dutiable from date of entry into force of the Agreement (1 December 2006); 65% of MFN will be dutiable from 1 January 2007; and 50% of MFN will be dutiable from 1 January 2008 and following years (Annex III of the Agreement).


31 December of that year. This mechanism applies until such time as the annual quota volume has reached 1600 tonnes (by 2009) or the Parties agree to apply other arrangements.15 No specific liberalization of the tariff-rate quota on these fish and fish products is mentioned; Article 16 of the Agreement foresees further trade liberalization for agriculture and fisheries to start before six years from the entry into force of the Agreement.

(ii) Maintained by Albania

26. The Agreement provides for duty-free access to the Albanian market for the EC through tariff-rate quotas on common wheat and meslin seed; spelt, common wheat and meslin; and wine. See Annex II for a more detailed description of the tariff-rate quotas under the Agreement.

27. For imports from the EC, within the tariff-rate quota volume of 20,000 tonnes, Albania offers duty-free access for common wheat and meslin seed (HS 10019091) and spelt, common wheat and meslin (excl. seed) (HS 10019099) from the date of entry into force of the Agreement and over this quota volume, the full MFN rate of duty is applicable (Article 14.3. (c) and Annex II (c)). Further liberalization of the tariff-rate quota volume is not mentioned and appears not to be considered at present.16 Imports of quality sparkling wine originating in the EC (HS ex 220410) and wine of fresh grapes (HS ex 220421) are duty-free up to 10,000 hl from the date of entry into force of the Agreement; above this quota volume, the full MFN rate of duty is applicable (Article 3, Annex I of Protocol 3). Albania shall examine the opportunities for granting further concessions to the EC no later than in the first quarter of 2008 (Article 7, Annex I of Protocol 3).

2. Rules of origin

28. Disciplines regarding rules of origin and methods of administrative cooperation covered by the Agreement are set out in Protocol 4; they are modelled on the Pan-European regime. Articles 2-15 of Protocol 4 deal with the rules of origin themselves, while Articles 16-38 relate to other customs-related issues.

29. The general requirement for a product to be considered originating (Article 2, 5 and 6 of Protocol 4) is: the product is wholly obtained in one of the Parties; or the product obtained incorporates materials which have undergone "sufficient working or processing" in one of the Parties. Further, Article 6.1 states that products not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in Annex II of Protocol 4 are fulfilled.

30. Articles 3 and 4 of Protocol 4 allow for bilateral cumulation between the Parties.

31. There are no regime-wide rules of origin; Annex II of Protocol 4 sets out the specific criteria covering HS Chapters 1-97 that non originating materials should meet so that the final product acquires originating status. In the majority of cases, origin is granted if the working or processing carried out on non-originating materials results in a change in tariff classification (CTC) on the basis of HS headings - i.e. at the four digit level, and chapters. The CTC is supplemented with, or replaced by, a non-originating content (MC) requirement. The MC requirement establishes the maximum value of non-originating materials allowed in the final product to be considered as originating. It is expressed as a percentage of the ex-works price of the product.17 The maximum value is normally 40 %, but ranges from 10 to 60% (Annex II of Protocol 4).

32. Article 6.2 which applies to all products except textiles and textile articles (HS Chapters 50-63), provides that non-originating materials which would not otherwise be accepted may

15 According to the Parties, it will be discussed between the Parties in the Stabilization and Association Council.

16 According to Albania, no further liberalization is considered at the moment.17 Definitions of "ex-works price" are provided in Article 1 of Protocol 4.


nevertheless be used, provided that (i) their total value does not exceed 10% of the ex-works price of the product, and (ii) any of the percentages given in Annex II of Protocol 4 for the maximum value of non-originating materials are not exceeded through the application of the Article. The rules of origin for textiles and textile articles are based on double transformation. Textiles and textile articles are excluded from the tolerance rule of Article 6 of Protocol 4; however there is a specific tolerance rule for textiles, based on weight, in Annex I of Protocol 4.

33. Article 7 of Protocol 4 lists minimal, non-qualifying operations or processes carried out in the territory of the Parties that do not confer origin. Paragraph 2 of this Article states that all operations carried out in the Parties on a given product are to be considered when determining whether the working or processing is beyond minimal operations. Articles 8-11 define the units of qualification and how certain materials (accessories, spare parts and tools; sets; and neutral elements) are to be treated/valued when determining the origin of the goods.

34. Article 12 of Protocol 4 contains conditions related to territoriality: no outward processing is authorized although there is a tolerance limit of 10% of the ex-works price acquired outside the territory of the Parties with other conditions. Article 13 refers to direct transport: only operations needed to preserve the product's good condition are permitted; in the absence of direct transport, products constituting one single consignment may be transported through other territories with trans-shipment or temporary warehousing under the surveillance of the customs authorities.

35. Under Article 15 of the Protocol non-originating materials used in the manufacture of products originating in a Party for which a proof of origin is issued shall not be subject in the Parties to drawback of, or exemption from, any customs duties.

Box II.2: Rules of Origin: Basic features at a glance

No regime-wide rules of origin. Product specific criteria:

- Wholly obtained or obtained in the Parties incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Parties

- In general, CTC at the heading or chapter levels- MC rules used, either alone or as supplementary rules- Two alternative rules for some products

Bilateral cumulation. Absorption principle. Tolerance rule at a maximum 10% (except for products falling within HS Chapters 50 to 63). No duty drawback. Outward-processing not authorized. Simple transhipment authorized.

3. Export duties and charges, and quantitative restrictions

36. The Parties shall abolish any exports duties and charges having equivalent effect on industrial products, and any quantitative restrictions on export and measure having equivalent effect. These shall be ended on the date of entry into force of the Agreement (Article 8). The introduction of any such new duties and charges, and quantitative restrictions is forbidden (Article 20).


C. REGULATORY PROVISIONS OF THE AGREEMENT

1. Standards

(a) Sanitary and phytosanitary measures

37. There are no sanitary and phytosanitary measures per se explicitly stated in the Agreement.

(b) Technical barriers to trade

38. The Agreement contains no specific provision with regards to technical barriers to trade measures.

2. Safeguard mechanisms

(a) Global safeguards

39. The provisions of Article XIX of GATT 1994 and the WTO Agreement on Safeguards are applicable (Article 25.1). However, safeguard measures applied in accordance with Article XIX of GATT 1994 and the WTO Agreement on Safeguards shall preserve the level/margin of preference granted under this Agreement (Article 25.5.(a)).18

(b) Bilateral safeguards

40. The Parties are free to invoke bilateral safeguard measures between them (Article 25.2 and Article 25.3).

41. Other than 'serious injury' to the domestic industry of like or directly competitive products, 'serious disturbances' in any sector of the economy or difficulties, which could bring about serious deterioration in the economic situation of a region of the importing party, can also be considered when taking bilateral actions (Article 25.2).19

42. Bilateral safeguard measures (Article 25.3) shall not exceed what is necessary to remedy the difficulties which have arisen, and should normally consist of the suspension of the further reduction of any applicable rate of duty provided for under the Agreement for the product concerned, or an increase in the rate of duty for that product up to a maximum corresponding to the MFN rate applicable to the same product. Bilateral safeguard measures shall not exceed one year. 20 In exceptional circumstances, measures can be taken up to a maximum period of three years.21 Bilateral safeguard measures shall not be applied for at least, three years on imports of a product that had previously been subject to a safeguard measure.22

18 For example, in a situation where the MFN duty is at 10% and the preferential duty at 2%, a safeguard measure raising the MFN duty to 20% shall only raise the bilateral duty to 12% so as to preserve the preference of 8 percentage points.

19 No definition of 'serious disturbances' is provided in the Agreement.20 Article 7.1 of the WTO Agreement on Safeguards indicates that the duration of (the global) safeguard

measures shall not exceed four years, unless the measure is extended under Article 7.2.21 Under the WTO Agreement on Safeguards, the total period of application of (the global) safeguard

measures shall not exceed eight years (Article 7.3).22 According to Article 7.5 of the WTO Agreement on Safeguards, (the global) safeguard measure has a

period of non-application of at least two years.


Table II.4 Synopsis of bilateral safeguards

Requirements Specific Conditions under the Agreement

Trigger Rise in imports

Criteria Cause of serious injury or threat thereof

Serious injury but also serious 'disturbances' or threat thereof

Measures allowed Suspension of further duty reduction

Increase in duty rate Up to a maximum limit corresponding to the MFN rate applicable to the same product

Timing Maximum duration including extension

1 year; in “very exceptional circumstances” up to a maximum of 3 years

Conditions or limitations Information by the institution of a proceeding through written notice

(Not specified in the Agreement, but between Parties the provisions of Article XIX GATT 1994 and the WTO

Agreement on Safeguard are applicable)

Information by the institution of its intention to take measures

Before taking the measures provided for therein or, in the cases to which paragraph 5(b) of Article 25 applies, the Parties shall supply the Stabilization and Association

Council with all relevant information as soon as possible

Consultation within the Stabilization and Association Council

Prior investigation

(Not specified in the Agreement, but between Parties the provisions of Article XIX GATT 1994 and the WTO

Agreement on Safeguard are applicable)

Re-imposition of safeguard measures on the same good At least 3 years after the previous measure has elapsed.

Progressive liberalization For all measures

Compensation Not mentioned

Possibility of retaliation Not mentioned

(c) Special safeguards

43. The Agreement contains no provisions on special safeguards.

44. Although the Parties shall try to avoid imposing restrictive measures, including import measures (Article 35.1), if there are serious balance of payments difficulties or an imminent threat thereof, the Party concerned may adopt restrictive measures, including measures relating to imports. The measures shall be in accordance with the conditions established under the WTO Agreement, of limited duration, and may not go beyond what is strictly necessary to redress the balance of payments situation (Article 35.2).

3. Anti-dumping and countervailing measures

45. The Parties are free to invoke anti-dumping and countervailing measures between them (Article 24.1). The Parties affirm their rights under Article VI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures (Article 24.2). If one of the Parties finds the existence of dumping and/or countervailable subsidization in the other Party, it may take appropriate measures as provided for under Article VI of GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures. The Parties may also take appropriate measures under their own related internal legislation (Article 24.2).


4. Subsidies

46. The Parties' rights and obligations are governed by the WTO Agreement on Subsidies and Countervailing Measures under Article 24.2. The Parties may also take appropriate measures under their own related internal legislation.

5. Other regulations

(a) Customs-related procedures

47. The Parties affirm the importance of cooperation in administration and control in the implementation of customs and related matters to combat irregularities and fraud (Article 30.1). In the case that a Party has found a failure to provide administrative cooperation and/or of irregularities or fraud, it may temporarily suspend the relevant preferential treatment of the product(s) concerned (Article 30.2). The temporary suspension must be notified to the Stabilization and Association Committee and consultations will be held within the Committee (Article 30.4.(a)). 23 If the consultations fail to result in an acceptable solution within three months following the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned (Article 30.4.(b)). The temporary suspension shall not exceed six months, which may be renewed indefinitely. Temporary suspensions are to be notified immediately after their adoption to the Stabilization and Association Committee. They shall be subject to periodic consultations in the Committee, in particular with a view to their termination as soon as the conditions for their application no longer exist (Article 30.4.(c)).

48. Article 41 states that the Parties' customs cooperation aims to achieve the closer alignment of the customs system of Albania to that of the EC. In line with this, Protocol 5 describes the rules on mutual administrative assistance in customs matters. It sets out the arrangements for administrative assistance to be followed by the Parties' customs authorities including for assistance on request, spontaneous assistance, execution of requests, exceptions to the obligation to provide assistance, exchange of information and confidentiality, and implementation.

(b) Competition policy and State-aid

49. While reaffirming the Parties' rights and obligations on relevant Articles of GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures or related internal legislation (Article 37.9), Article 37 sets out a framework for competition and State-aid.

50. Three kinds of activities are defined as contrary to the proper functioning of the Agreement: i) agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect, the prevention, restriction or distortion of competition; ii) abuse by one or more undertakings of a dominant position in the territories of the EC or of Albania as a whole or in a substantial part thereof; iii) any State-aid which distorts or threatens to distort competition by favouring certain undertakings or certain products (Article 37.1). Category iii) does not apply to agriculture and fisheries products (Article 37.8). Articles 81-82, and 86-87 of the Treaty establishing the European Community and interpretative instruments adopted by the EC institutions are used as assessment tools for any incompatible competition practices (Article 37.2).

51. The Parties shall ensure that an operationally independent public body is delegated with the powers necessary for the full application of categories i) and ii), regarding private and public

23 According to the Stabilization and Association Agreement between the EC and its Member States and Albania, the Stabilization and Association Committee (the Committee) assists the Stabilization and Association Council (the Council) in the performance of the Council's duties (Article 120.1). The Committee may create Sub-Committees (Article 121).


undertakings and undertakings to which special rights have been granted (Article 37.3). Albania shall establish an operationally independent authority entrusted with the powers necessary for the full application of category iii) within four years from the date of entry into force of the Agreement. This authority has, inter alia, the powers to authorize State-aid schemes and individual aid grants based on Articles 81-82, and 86-87 of the Treaty establishing the European Community and interpretative instruments adopted by the EC institutions. It also has the power to order the recovery of unlawfully granted State-aid (Article 37.4).

52. Albania must establish a comprehensive inventory of aid schemes before establishing an operationally independent authority within four years from the date of entry into force of the Agreement (Article 37.6). Albania has prepared a list of existing State-aid schemes before the entry into force of the State-aid law. A comprehensive report on the inventory of aid schemes is in the process of finalization, and will be submitted to the European Commission.

(c) State monopolies

53. Albania shall progressively adjust any State monopolies of a commercial character to end discrimination between nationals of EC Member States and Albania concerning the conditions under which goods are procured and marketed by the end of the fourth year following the date of entry into force of the Agreement (31 December 2010).24 The measures adopted to pursue this aim must be notified to the Stabilization and Association Council (Article 27).

(d) Government procurement

54. Article 40 establishes a regulatory framework for government procurement (referred to in the Agreement as public contracts) and considers the opening-up of the award of public contracts on the basis of non-discrimination and reciprocity, in particular in the WTO context, to be a desirable objective (Article 40.1).

55. Whether Albanian companies are established in the EC or not, they shall be granted access to contract award procedures in the EC according to EC procurement rules under no less favourable than that accorded to EC companies from the date of entry into force of the Agreement. With respect to the utilities sector25, once Albania has adopted legislation introducing EC rules, Albanian utility companies shall be granted access to contract award procedures under the same conditions as mentioned above. The EC shall conduct periodic examinations to determine whether Albania has introduced such legislation (Article 40.2).

56. EC companies established in Albania, on the date of entry into force of the Agreement, shall have access to contract award procedures under treatment no less favourable than that accorded to Albanian companies (Article 40.4). EC companies not established in Albania shall be granted access to contract award procedures in Albania pursuant to the Albanian Law on Public Procurement under treatment no less favourable than that accorded to Albanian companies at the latest four years after the date of entry into force of the Agreement (Article 40.3).26 Albania's legislation on government procurement has been notified to the WTO. According to the authorities the new law and sub-legal acts are partially approximated with the respective EU directives in this field. The full approximation is foreseen in medium-term priorities under SAP.

24 According to Albania, new developments in this regard consist of i) account separation for railway of passenger tickets; ii) privatization of the only fixed-line telephone company ALBTELECOM sh.a.; and iii) division of state energy enterprise, KESH sh.a. into three companies, each of them responsible for one of three activities: generation, transmission and distribution. The measures in the energy sector aim to prepare the company for the privatization process.

25 There is no definition of utilities in the Agreement.26 Albania has applied for membership of the WTO Agreement on Government Procurement (GPA/57,

2 October 2001).


(e) Intellectual property

57. In Article 39 and its related Annex IV, the Parties confirm their obligations as set out in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) and other multilateral agreements relating to intellectual property.

58. Albania shall take all the necessary measures to guarantee a similar level of protection of intellectual, industrial and commercial property rights to that existing in the EC, no later than four years after the entry into force of the Agreement including using effective means of enforcement (Article 39.2).27 With respect to the recognition and protection of intellectual, industrial and commercial property, Albania will grant, from the date of entry into force of the Agreement, EC companies and nationals treatment no less favourable than that granted by it to any third country under bilateral Agreements (Annex IV, Article 3). In addition to this, Albania, within four years after the date of entry into force of the Agreement, undertook to accede to the WIPO Copyright Treaty; the Convention for the Protection of Producers of Phonograms against Unauthorized Duplications of their Phonograms; and the International Convention for the Protection of New Varieties of Plants; according to Albania, this has occurred.28 The Stabilization and Association Council may also oblige Albania to accede to other specific multilateral conventions in this area (Article 39.3).29 When there are problems in the area of intellectual, industrial and commercial property affecting trading conditions, they shall be referred urgently to the Stabilization and Association Council, with a view to reaching mutually satisfactory solutions. This can occur at the request of any Party to the Agreement (Article 39.4). There are also provisions in the Agreement for the protection of names, geographical indications, and traditional expressions under Protocol 3. See Section D, sector-specific provisions of the Agreement in this factual presentation.

(f) Shortage clause

59. According to Article 26, a critical shortage, or threat thereof, of foodstuffs or other products essential to the exporting Party; or shortage or major difficulties resulting from re-export to a third country of a product against which the exporting Party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect, exporting Party may take appropriate measures in accordance with the procedures laid down below.

60. Before taking the measures which disturb least the functioning of the arrangements (Article 26.2), the Parties shall supply the Stabilization and Association Council with all relevant information, seeking a solution acceptable to the Parties. The Parties within the Council may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Council, the exporting Party may apply measures on the export concerned (Article 26.3). Where exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Parties may apply the precautionary measures necessary to deal with the situation and shall inform the other Party immediately (Article 26.4). Any measures applied pursuant to this Article shall be immediately notified to the Council which will conduct periodic consultations with a view to establishing a timetable for their elimination as soon as circumstances permit (Article 26.5).

27 According to Albania, the new draft law on industrial property has been finalized and is in the process of being approved.

28 According to Albania, it acceded to the WIPO Copyright Treaty on 6 August 2005; the Convention for the Protection of Producers of Phonograms against Unauthorised Duplications of their Phonograms on 26 June 2001; and the International Convention for the Protection of New Varieties of Plants on 15 October 2005.

29 According to the Parties, there are no new developments in this regard.


(g) Transit traffic

61. The Parties benefit from reciprocal and unrestricted access to: EC transit traffic through Albania; and Albanian transit traffic through the EC from the date of entry into force of the Agreement (Article 33.2). In addition, the Parties refrain from taking any unilateral action that might lead to discrimination between EC and Albanian carriers or vehicles (Article 33.4). In line with this, the Parties agree to simplify formalities for bilateral trade in or transit of goods by rail and road (Article 33.5) and to promote the adoption of measures for further simplification (Article 33.6).

D. SECTOR-SPECIFIC PROVISIONS OF THE AGREEMENT

1. Iron and steel products

62. Protocol 1 contains sector-specific provisions on iron and steel products. 30 The EC's import duties and any charges having equivalent effect on iron and steel products originating in Albania are abolished on the date of entry into force of the Agreement (Article 2 and Article 6 of Protocol 1). Albania's import duties and any charges having equivalent effect on iron and steel products originating in the EC that are referred to in Article 6 of the Agreement and listed in Annex I (Albanian tariff concessions for Community industrial products) are to be progressively reduced (Article 3.1 and Article 6 of Protocol 1).

63. Albania's import duties on all other iron and steel products from the EC are abolished on the date of entry into force of the Agreement (Article 3.2 of Protocol 1). Albania may reduce its customs duties on iron and steel products from the EC more rapidly than its schedule and the Stabilization and Association Council shall analyse the situation and make relevant recommendations (Article 9 of the Agreement).31

64. Further to Article 37 of the Agreement on competition and other economic provisions, State-aid disciplines of the EC, including secondary legislation and any specific rules on State-aid control applicable to the iron and steel sector after the expiry of the Treaty establishing the European Coal and Steel Community are applied (Article 5.2 of Protocol 1). However, as an exception, during the first five years after the date of entry into force of the Agreement, Albanian producers may receive State-aid for restructuring provided that i) at the end of the restructuring period, the beneficiary firms are viable under normal market conditions; ii) the amount and intensity of such aid is, strictly limited to what is absolutely necessary to restore such viability, and also to be progressively reduced; and iii) the restructuring programme is linked to global rationalization and compensatory measures to counter the distorting effect of the aid (Article 5.3 of Protocol 1). According to the Parties, Albania has so far not taken any decision to grant State-aid to its iron and steel industry. Within three years from the date of entry into force of the Agreement Albania shall establish the necessary restructuring and conversion programme for its iron and steel industry to achieve viability under normal market conditions.32 Albania is also entitled to receive technical advice from the EC to ensure the global competitiveness of this sector (Article 5.1 of Protocol 1). Albania has not yet made such a request.

2. Wines, spirits and aromatized wines

65. Protocol 3 sets out rules on reciprocal and preferential concessions for certain wines and the reciprocal recognition, protection and control of wine, spirits and aromatized wine names. It includes two Agreements as Annexes: the Agreement between the European Community and the Republic of Albania on Reciprocal Preferential Trade Concessions for Certain Wines (Annex I to Protocol 3); and

30 Iron and steel products are those contained in CN Chapters 72 and 73. It also applies to other finished iron and steel products that may originate in future in Albania under the above Chapters (Article 1, Protocol 1 of the Agreement).

31 According to Albania, the liberalization of import duties on iron and steel products is on schedule.32 According to Albania, there is no new development in this regard.


the Agreement between the European Community and the Republic of Albania on the Reciprocal Recognition, Protection and Control of Wine, Spirits and Aromatized Wine Names (Annex II to Protocol 3).

66. The Protocol covers wines, spirits and aromatized wines. In terms of the Harmonised System of the International Convention on the Harmonised Commodity Description and Coding System on 1983, the Protocol applies to wines under Heading 22.04, spirits under Heading 22.08 and aromatized wines under Heading 22.05. Under Article 2(1) of Protocol 3, wines are referred as those which have been produced from fresh grapes originating in the Parties in accordance with each Party's rules on the oenological practices and processes. Article 2(1)(b) of Protocol 3 further provides that Albanian rules governing oenological practices and processes shall be in compliance with the EC legislation. Spirits and aromatized wines are defined according to each Party's relevant rules and regulations (Article 2(3) of Protocol 3). There is, however, no requirement for Albania to follow EC legislation on spirits and aromatized wines.

(a) Reciprocal and preferential trade concessions for certain wines

67. Reciprocal and preferential trade concessions for certain wines between the Parties are discussed above and in Annex II of this factual presentation which gives more details of tariff-rate quotas under the Agreement.

(a) Reciprocal recognition, protection and control of wine, spirits and aromatized wine names

(i) Protection of names

68. Under the non-discrimination and reciprocity principle, the Parties recognize, protect and control names of wines, spirits and aromatized wines, originating in their territories and ensure that their obligations under Annex II of Protocol 3 will be met (Article 1, Annex II of Protocol 3). The following products originating in the EC are protected: i) references to the name of the Member State in which the wine, spirits and aromatized wine originates or other names to indicate the Member State; ii) the geographical indications, listed in Appendix 1, Part A; and iii) traditional expressions listed in Appendix 2. The following products originating in Albania are protected: i) references to the name "Albania" or any other name designating Albania; and ii) the geographical indications, listed in Appendix 1, Part B (Article 4, Annex II of Protocol 3). For Albania, there is no traditional expressions list indicated under the Protocol for protection.

(ii) Protection of geographical indications

69. In order to ensure effective protection of geographical indications, the Parties reaffirm that they shall make use of the appropriate legal means referred to in Article 23 of the WTO TRIPS Agreement (Article 6.3, Annex II of Protocol 3). The Parties shall prohibit any use of protected names which do not originate in the geographical area indicated or in the place where the expression is traditionally used, even when: i) the true origin of the wine, spirits or aromatized wine is indicated; ii) the geographical indication in question is translated; and iii) the name is accompanied by terms such as "kind", "type", "style", "imitation", "method" or other expressions of the sort (Article 6.5, Annex II of Protocol 3).33

70. When a geographical indication listed in Appendix 1 is homonymous with a geographical indication of a third country, Article 23.3 of the WTO TRIPS Agreement applies (Article 6.7, Annex II of Protocol 3). From the date of entry into force of the Agreement, protected geographical names shall no longer be used as a common name for wines, spirits and aromatized wines as permitted in Article 24.6 of the WTO TRIPS Agreement (Article 6.10, Annex II of Protocol 3).

33 Article 23.1 of the WTO TRIPS Agreement indicates expressions such as "kind", "type", "style", "imitation" or the like.


(iii) Protection of traditional expressions

71. Albania shall protect the traditional expressions for wine originating in the EC, notably that they shall not be used for the description or presentation of wine originating in Albania (Article 7.1, Annex II of Protocol 3). It shall provide appropriate legal means to prevent the EC's traditional expressions from being used to describe wine that has no entitlement to the traditional expressions, even where the traditional expressions used are accompanied by expressions such as "kind", "type", "style", "imitation", "method" or the like (Article 7.2, Annex II of Protocol 3).

(iv) Trademarks

72. The Parties' competent national and regional offices must refuse the registration of a trademark for a wine, spirits or aromatized wine that is identical with, or similar to, or contains, or consists of a reference to a protected geographical indication (Article 8.1, Annex II of Protocol 3). The same obligation applies to the registration of a trademark for a wine that contains or consists of a traditional expression protected under Appendix 2 (Article 8.2, Annex II of Protocol 3). Albania will adopt the measures necessary to amend the trademarks names of Amantia (Grappa) and Gjergj Kastrioti Skenderbeu Konjak so as to remove all references to protected EC geographical indications by 31 December 2007 (Article 8.3, Annex II of Protocol 3).34

(v) Institutional Mechanisms

73. A Working Group under the Sub-Committee on Agriculture is established. It is in charge of the proper functioning of Annex II of Protocol 3 and examines all implementation questions. The Working Group may recommend, discuss and suggest on any matter of mutual interest in the wine, spirits and aromatized wine sector. At the request of the Parties, it shall meet at a time, a place and in a manner mutually determined by them (Article 10, Annex II of Protocol 3).

74. The representative bodies are the Albanian Ministry of Agriculture and Food, and the Directorate-General for Agriculture and Rural Development of the European Commission (Article 11.2, Annex II of Protocol 3). The Parties shall inform each other of their intentions to adopt new regulations or amendments to existing regulations concerning public policy, such as health or consumer protection. The Parties also shall notify each other of any legislative, administrative and judicial decisions concerning the implementation of Annex II of Protocol 3 and inform each other of measures adopted on the basis of such decisions (Article 11.3 and 11.4, Annex II of Protocol 3).

75. If the description or presentation of a wine, spirits or aromatized wine, in particular on the label, in official or commercial documents or in advertising, is in violation of the Agreement, i.e. gives misleading information, the Parties shall apply the necessary administrative measures and/or initiate legal proceedings to combat unfair competition or prevent the wrongful use of the protected name in any other way (Article 13.1 and 2, Annex II of Protocol 3).35

76. If one of the Parties considers that the other has failed to fulfil an obligation under Annex II of Protocol 3, the Parties shall enter into consultations. However, prior consultation is not required where any delay could jeopardize human health or impair the effective measures to control fraud. In this situation, appropriate interim protective measures which, depending on circumstances could include a prohibition of imports and confiscation, may be taken provided that consultations are held immediately after the measures are taken. Following the consultations, if the Parties have not reached agreement, the Party which requested the consultations or which took the measures above may take

34 Albania has indicated that it has undertaken necessary measures to amend the above mentioned trademarks.

35 For the EC, Article 72 of Council Regulation (EC) No 1493/99 of 17 May 1999 provides the list of national authorities responsible for verifying compliance with Community provisions for wine.


appropriate measures which least disturb the functioning of Annex II of Protocol 3 (Article 14, Annex II of Protocol 3).

E. GENERAL PROVISIONS OF THE AGREEMENT

1. Transparency

77. There are no separate transparency provisions governing the Agreement. However, Article 37.5 requires each Party to provide to the other a regular annual report, or equivalent on State-aid; also upon request by one Party, the other Party shall provide information on individual cases of public aid. Furthermore, for iron and steel products, the Parties shall fully and continuously exchange information, including details of restructuring plans as well as the amount, intensity and purpose of any State-aid (Article 5.4 of Protocol 1).

2. Exceptions

78. Article 29 describes the general exceptions of the Agreement, including for reasons of public morality, public policy or public security; the protection of human, animal or plant health and life; and the protection of national treasures of artistic, historic or archaeological value or rules relating to gold and silver, and reflects exceptions under Article XX of the GATT 1994. In addition, under the Agreement on grounds of the protection of intellectual, industrial and commercial property, the Parties can prohibit or restrict imports, exports or goods in transit. Article 46 sets out general exceptions relating to security concerns that are similar to those in Article XXI of the GATT 1994.

3. Accession

79. No accession (of third Parties, other than candidate countries for accession to the European Union) provision per se exists in the Agreement. However, the Agreement permits Albania to cooperate and conclude a Convention on regional cooperation with any candidate country for accession to the European Union in any of the fields covered by the Agreement (Article 48.1).

80. In particular, Albania is directed to start negotiations with Turkey to establish a free trade area in accordance with Article XXIV of the GATT with a view to concluding it before the end of the transitional period of ten years from the date of entry into force of the Agreement (by December 2016) (Article 48.2). According to the Parties, a free trade agreement between Albania and Turkey has been signed and has been ratified by Albania.

4. Institutional framework

81. Title IV deals with the administration of the Agreement. In particular, Articles 42 and 43 set out the functions of the Joint Committee established by the Agreement on Trade and Commercial and Economic Cooperation.36 The Committee exercises the powers, and performs the duties, assigned by the Agreement to the Stabilization and Association Council or the Stabilization and Association Committee (Article 42). The Joint Committee has the power to take decisions that are binding on the Parties within the scope of the Agreement in the cases provided for therein and adopts its own Rules of Procedure.37 It may also make appropriate recommendations. It meets at regular intervals and, when there are circumstances that require it, is chaired alternately by each of the Parties. The agenda of the Joint Committee is agreed beforehand (Article 43).

82. The depository of the Agreement is the Secretary-General of the Council of the European Union (Article 54).

36 This was signed on 11 May 1992 and entered into force on 4 December 1992.37 According to the Parties, the Join Committee has already adopted its Rules of Procedure.


5. Dispute settlement

83. With respect to any matter concerning the interpretation or implementation of the Agreement and other relevant aspects of the relations between the Parties, the Parties agree to consult 'promptly' through the appropriate channels at the request of either Party. This clause on consultation shall in no way affect and is without prejudice to consultation provisions in Articles 18 (agricultural and fisheries products), 24 (dumping and subsidies), 25 (general safeguard clause), 26 (shortage clause) and 30 (administrative cooperation on customs related procedures) (Article 50).38

84. Disputes relating to the application or interpretation of the Agreement are referred to, the Stabilization and Association Council which may settle the dispute by means of a binding decision (Article 44).

85. The Parties are required to fulfil their obligations under the Agreement to attain its objectives (Article 49.1). If either Party considers that the other has failed to execute an obligation under the Agreement, it may take appropriate measures. Before taking these measures, apart from urgent cases, the Stabilization and Association Council shall be provided all relevant information required for a thorough examination of the situation (Article 49.2).

86. Apart from the dispute settlement mechanism under the Agreement, each Party ensures that natural and legal persons of other Party have non-discriminatory access to the competent courts and administrative organs of the Parties to defend their individual rights and other property rights (Article 45).

87. No particular provisions on good offices, conciliation or mediation, and arbitration are available under the Agreement.

6. Relationship with other agreements concluded by the Parties

88. No specific provisions regarding relationships with other agreements concluded by the Parties exist in the Agreement.

89. Table II.5 lists the regional trade agreements (RTAs), notified to the GATT/WTO, and in force, to which the EC and Albania are parties.Table II.5Albania and the EC: Participation in RTAs (notified and in force)

Partner/

Agreement

Date of entry into force

Type of

Agreement

GATT/WTO Notification

Year WTO Provision

ALBANIACEFTA 26.07.07 Goods 2007 GATT Art. XXIV

THE EC

Chile 01.03.05 Services 2005 GATS Art. V

EEA 01.01.94 Services 1996 GATS Art. V

Algeria 01.09.05 Goods 2006 GATT Art. XXIV

Egypt 01.06.04 Goods 2004 GATT Art. XXIV

Lebanon 01.03.03 Goods 2003 GATT Art. XXIV

Chile 01.02.03 Goods 2004 GATT Art. XXIV

Jordan 01.05.02 Goods 2002 GATT Art. XXIV

Croatia 01.03.02 Goods 2002 GATT Art. XXIV

38 A specific time frame for consultations in not foreseen in Article 50.


Partner/

Agreement

Date of entry into force

Type of

Agreement

GATT/WTO Notification

Year WTO Provision

FYROM 01.06.01 Goods 2001 GATT Art. XXIV

Israel 01.06.00 Goods 2000 GATT Art. XXIV

Morocco 01.03.00 Goods 2000 GATT Art. XXIV

South Africa 01.01.00 Goods 2000 GATT Art. XXIV

Tunisia 01.03.98 Goods 1999 GATT Art. XXIV

Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV

Faroe Islands 01.01.97 Goods 1997 GATT Art. XXIV

Iceland 01.01.97 Goods 1997 GATT Art. XXIV

Turkey 01.01.96 Goods 1995 GATT Art. XXIV

Andorra 01.07.91 Goods 1998 GATT Art. XXIV

Syria 1977 Goods 1977 GATT Art. XXIV

Switzerland and Liechtenstein 1973 Goods 1972 GATT Art. XXIV

Norway 1973 Goods 1973 GATT Art. XXIV

OCTs 1971 Goods 1970 GATT Art. XXIV

Mexico 01.07.00 Goods & Services 2000 GATT Art. XXIV & GATS Art. V

Treaty of Rome 1958 Goods & Services 1957 GATT Art. XXIV & GATS Art. V

CEFTA: Central European Free Trade AgreementEEA: European Economic AreaFYROM: Former Yugoslav Republic of MacedoniaOCT: Association of certain Overseas Countries and Territories

Source: WTO Secretariat.


ANNEX I

Indicators of Trade Liberalization under the Agreement

90. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual imports and the MFN rates applied by the EC and Albania to imports is shown in Tables AI.1 (the EC) and AI.2 (Albania) below, by total products, agricultural products and non-agricultural products.

Table AI.1 The EC: Indicators of MFN tariff rates and preferential rates for imports from Albania

Originof

goodsYear

ALL PRODUCTS Agricultural productsa Non-agricultural productsAverage applied

tariffShare of duty-free tariff lines

(%)

Average applied tariff Share of duty-free tariff lines

(%)


(%)Overall

(%)On dutiable

(%)Overall

(%)On dutiable

(%)Overall

(%)On dutiable

(%)MFN 2006 6.9 9.4 26.0 18.6 23.2 18.9 4.0 5.6 27.9Albania 2006 0.4 28.4 98.7 1.3 43.9 96.7 0.1 12.9 99.2

2007 0.4 27.4 98.7 1.3 43.9 96.7 0.1 11.0 99.22008 0.3 26.5 98.7 1.3 43.9 96.7 0.1 9.1 99.2

a WTO Definition.


Source: WTO Secretariat estimates based on data provided by the EC's authorities.

91. The EC's average applied MFN rate in 2006 was 6.9%; the average applied tariff on agricultural products is roughly four times higher than that applied to non-agricultural products. Duty-free tariff lines account for 26% of all tariff lines. Albanian exporters enjoyed an absolute margin of preference of 3.9% for non-agricultural products vis-à-vis the prevailing average MFN tariff in 2006, and 17.3% for agricultural goods. Overall, Albanian exporters enjoyed an average margin of preference of 6.5% vis-à-vis the prevailing average applied MFN tariff, as well as an increase (to 98.7%) in the share of the EC's duty-free lines.

Table AI.2 Albania: Indicators of MFN tariff rates and preferential rates for imports from the EC

Originof

goodsYear

ALL PRODUCTS Agricultural productsa Non-agricultural productsAverage applied

tariffShare of duty-free tariff lines

(%)


(%)


(%)Overall

(%)On dutiable

(%)Overall

(%)On dutiable

(%)Overall

(%)On dutiable

(%)MFN 2006 5.7 8.6 33.2 8.9 9.6 7.0 4.9 8.2 40.0The EC 2006 1.5 10.9 86.6 6.5 11.1 41.7 0.1 8.5 98.3

2007 1.4 10.1 86.6 6.2 10.6 41.7 0.1 6.5 98.32008 1.2 8.9 86.6 5.5 9.5 41.7 0.1 4.0 98.32009 1.0 8.0 87.0 4.9 8.5 41.7 0.0 2.1 98.82010 0.8 10.6 92.6 3.7 12.1 69.2 0.0 1.4 98.82011 0.8 12.1 93.7 3.7 12.1 69.2 0.0 0.0 100

a WTO Definition.


Source: WTO Secretariat estimates based on data provided by the Albanian authorities.

92. Albania's average MFN rate in 2006 was 5.7%; the average applied tariff on agricultural products is 4% higher than that applied to non-agricultural products. Duty-free tariff lines account for 33.2% of all tariff lines. EC exporters enjoyed an absolute margin of preference of 4.8 % on non-agricultural products vis-à-vis the prevailing average applied MFN tariff in 2006, and a preference of 2.4% in agricultural goods as well as an increase (to 86.6%) in the share of Albania's duty-free lines.


Table AI.3 – The EC: Market access opportunities under the agreement for Albania's top 25 exports

Albania top export products in 2004-2006Access Conditions to Community's import markets

MFN 2006

HS number and description of the product

Share in

global export

s(%)

Average MFN

applied rate(%)

Number of tariff lines Duty-

free in 2006

RemaindutiableDuty-

free Dutiable

640610 Parts of footwear. Uppers and parts thereof, other than stiffeners.

17.7 3.0 3 3

620342 Men's or boys' cotton suits, ensembles, etc. 7.9 12.0 7 7620520 Men's or boys' cotton shirts. 3.7 12.0 1 1720241 Ferro-alloys containing by weight more than 4% of carbon.

2.8 4.0 2 2

160416 Prepared or preserved anchovies. 2.6 25.0 1 1830140 Other locks. 2.5 2.7 3 3610910 Cotton T-shirts, singlets and other vests, knitted or crocheted.

2.4 12.0 1 1

640359 Footwear with outer soles of rubber, plastics, leather etc. Other.

2.3 7.6 8 8

740400 Copper waste and scrap. 2.2 0.0 3121190 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy etc. Other.

2.1 1.5 1 1 1

640510 Other footwear with uppers of leather or composition leather.

2.0 3.5 1 1

610610 Women's or girls' cotton blouses, shirts and shirt-blouses, knitted or crocheted.

1.8 12.0 1 1

640351 Footwear with outer soles of rubber, plastics, leather etc. Covering the ankle.

1.6 8.0 6 6

261000 Chromium ores and concentrates. 1.4 0.0 1270900 Petroleum oils and oils obtained from bituminous minerals, crude.

1.4 0.0 2

610821 Women's or girls' cotton slips, petticoats, etc. 1.4 12.0 1 1721420 Other bars and rods of iron or non-alloy steel containing indentations, ribs, etc. produced during the rolling process or twisted after rolling.

1.4 0.0 1

720449 Ferrous waste and scrap, other. 1.3 0.0 3610711 Men's or boys' cotton underpants, briefs, etc. 1.2 12.0 1 1760200 Aluminium waste and scrap. 1.1 0.0 3620690 Women's or girls' other textile materials blouses, shirts and shirt-blouses.

1.0 12.0 2 2

271320 Petroleum bitumen. 1.0 0.0 1481940 Other sacks and bags, including cones. 0.9 0.0 1220210 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured.

0.8 9.6 1 1

621710 Other made up clothing accessories. 0.8 6.3 1 1 Total of above 65.3 16 41 40 1

Source: WTO estimates based on data provided by the EC authorities and UNSD, Comtrade data.

93. Table AI.3 shows the market access conditions in the EC for Albania's top 25 exports, which in 2004-2006 accounted for 65.3% of its global exports. Sixteen tariff lines were already duty-free on an MFN basis and 40 tariff lines, which were dutiable, became duty-free in 2006; one tariff line, prepared or preserved anchovies (HS 160416), remains dutiable.

94. Table AI.5 shows the market access conditions in Albania for the EC's top 25 exports, which in 2004-2006 accounted for 25.3% of the EC's global exports. 115 tariff lines were already duty-free on an MFN basis and 37 tariff lines, which were dutiable, became duty-free in 2006. Five tariff lines relating to petroleum products will become duty-free in 2011: HS 27101125; HS 27101170; HS 27101921; HS 27101925; and HS 27101929.


Table AI.4 – Albania: Market access opportunities under the Agreement, for the EC's top 25 exports

The EC's top export products in 2004-2006Access Conditions to Albania's import markets

MFN 2006

Duty-free in 2006

Duty-free in 2011HS number and description of the product

Share in

global exports

(%)

Average MFN

applied rate(%)

Number of tariff lines

Duty-free Dutiable

300490 Other medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses.

3.2 0.00 4

870323 Motor cars and other motor vehicles of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc.

2.8 6.33 3 3

870324 Motor cars and other motor vehicles of a cylinder capacity exceeding 3,000 cc.

2.2 6.00 2 2

852520 Transmission apparatus incorporating reception apparatus.

1.8 0.00 3

880240 Aeroplanes and other aircraft of an unladen weight exceeding 15,000 kg.

1.8 1.00 1 1 1

271011 Petroleum oils and oils obtained from bituminous minerals, other than crude; light oils and preparations.

1.4 4.50 5 7 5 2

271019 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations. Other.

1.3 4.00 11 14 11 3

854221 Digital electronic integrated circuits and microassemblies.

1.1 0.00 25

710231 Unworked or simply sawn, cleaved or bruted diamonds.

1.0 2.00 1 1

847330 Parts and accessories suitable for use solely or principally with machines of headings 84.71.

1.0 0.00 2

870899 Other parts and accessories of the motor vehicles of headings 87.01 to 87.05.

1.0 2.00 6 6

293399 Heterocyclic compounds with nitrogen hetero-atom(s) only. Other.

0.6 0.00 6

841112 Turbo-jets of a thrust exceeding 25 kN. 0.6 0.00 4 841191 Parts of turbo-jets or turbo-propellers. 0.6 0.00 2 870332 Motor cars and other motor vehicles of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc.

0.6 6.33 3 3

270900 Petroleum oils and oils obtained from bituminous minerals, crude.

0.5 10.00 2 2

293499 Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds. Other.

0.5 0.00 6

711319 Articles of jewellery and parts thereof, of other precious metal, whether or not plated or clad with precious metal.

0.5 15.00 1 1

847989 Other machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter.

0.5 0.00 10

848180 Taps, cocks, valves and similar appliances for pipes, boiler shells, etc. including pressure-reducing valves and thermostatically controlled valves. Other appliances.

0.5 0.00 17

852990 Parts suitable for use solely or principally with the apparatus of headings 85.25 to 85.28. Other.

0.5 0.00 7

710239 Other diamonds, whether or not worked, but not mounted or set.

0.4 2.00 1 1

901890 Other instruments and appliances. 0.4 0.00 10 300439 Medicaments, other. 0.3 0.00 2840999 Parts suitable with engines of heading 84.07 and 84.08, other.

0.3 200 1 1

Total of above 25.3 115 42 37 5

Source: WTO estimates based on data provided by the EC and Albanian authorities.


ANNEX II

Tariff-Rate Quotas under the Agreement

95. As discussed, tariff-rate quotas exist on agricultural products between the Parties. These have been examined under each Party's liberalization schedule in this factual presentation. The tables below are designed to show a picture of tariff-rate quotas under the Agreement, maintained by the EC and Albania with each other.

Table AII.1 The EC: Tariff-rate quotas for agricultural products originating in Albania

CN Code (description) TRQ from entry into force (1 December 2006)

Liberalization scheme

Quantity Duty 1 January 2007 As of 1 January 2008(no specific time schedule)

In-quota

Out-quota

Quantity Duty Quantity Duty

In-quota

Out-quota

In-quota

Out-quota

Trout: live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption03019110, 03019190, 03021110, 03021120, 03021180, 03032110, 03032120, 03032180, 03041015, 03041017, ex 03041019, ex 03041091, 03042015, 03042017, ex 03042019, ex 03049010,ex 03051000, ex 03053090, 03054945, ex 03055980, ex 03056980

50 tonnes 0 90% of MFN duty



Carp: live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption03019300, 03026911, 03037911, ex 03041019, ex 03041091, ex 03042019, ex 03049010, ex 03051000, ex 03053090, ex 03054980, ex 03055980, ex 03056980




Sea bream: live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumptionex 03019990, 03026991, 03037991, ex 03041038, ex 03041098, ex 03042094, ex 03049097, ex 03051000, ex 03053090, ex 03054980, ex 03055980, ex 03056980



20 tonnes 0 30% Of MFN duty

Sea bass: live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumptionex 03019990, 03026994, ex 03037700, ex 03041038, ex 03041098, ex 03042094, ex 03049097, ex 03051000, ex 03053090, ex 03054980, ex 03055980, ex 03056980




Table AII.1 (Cont'd)


CN Code (description) TRQ from entry into force (1 December 2006)


Quantity Duty 1 January 2007 As of 1 January 2008(no specific time schedule)

In-quota

Out-quota

Quantity Duty Quantity Duty

In-quota

Out-quota

In-quota

Out-quota

Prepared or preserved sardines

Not mentioned 16041311, 16041319, ex 16042050 100

tonnes6% of MFN duty

MFN duty

Prepared or preserved anchovies From 1 January 2007, the annual quota volume will be increased by 200 tonnes provided that at least 80% of the previous year’s quota has been used by 31 December of that year. This mechanism will apply until such time as the yearly volume of the quota has reached 1,600 tonnes or the Parties agree to apply other arrangements.

16041600, 16042040 1,000 tonnes

0 MFN duty

Cane or beet sugar and chemically pure sucrose, in solid form: Raw sugar not containing added flavouring and colouring matter

1,000 tonnes

0

M

MMFN duty Not mentioned

1701Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:1702Quality sparkling wine 5,000 hl 0 MFN

dutyThe opportunities for granting further concessions shall be examined no later than the first quarter of 2008.ex 220410

Wine of fresh grapesex 220421Wine of fresh grapes 2,000 hl 0 MFN

dutyex 220429

Source: Article 14.2 and Annex III of the Agreement; and Article 1. Annex I of Protocol 3.

Table AII.2Albania: Tariff-rate quotas for agricultural products originating in the EC

CN Code (description) TRQ from the date of entry into force

(1 December 2006)


Quantity Duty Quantity In-quota dutyIn-quota Out-quota

Common wheat and meslin seed

20,000 tonnes 0 MFN duty Not mentioned

10019091Spelt, common wheat and meslin (excl. seed)10019099Quality sparking wine 10,000 tonnes 0 MFN duty The opportunities for granting further

concessions shall be examined no later than in the first quarter of 2008.

ex 220410Wine of fresh grapesex 220421

Source: Article 14.3.(c) and Annex II (c) of the Agreement; and Article 3 and Article 7. Annex I of Protocol 3.

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