Stabilisation and Association Agreement with Kosovo*

SUMMARY OF:

Stabilisation and Association Agreement between the EU and Kosovo

Decision (EU) 2016/342 concluding the Stabilisation and Association Agreement between the EU and Kosovo

Decision (EU) 2015/1988 signing the Stabilisation and Association Agreement between the EU and Kosovo

WHAT IS THE AIM OF THE DECISIONS AND THE AGREEMENT?

The decisions mark the European Union's (EU’s) signature and conclusion of the Stabilisation and Association Agreement (SAA) with Kosovo^.

The agreement does not constitute recognition of Kosovo as an independent State by the EU or individual EU countries.

The aims of the agreement are to:

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

KEY POINTS

The SAA comprises 10 headings.

1.
General Principles
The SAA is based on a number of essential principles. Kosovo agrees to:
- respect democratic principles and human rights, international law principles, the rule of law and the principles of market economy;
- abide by international law and instruments;
- commit to a visible and sustainable improvement in relations with Serbia and to effective cooperation with the common security and defence policy mission while it remains in place;
- cooperate with the International Criminal Tribunal for the former Yugoslavia and its residual mechanism, as well as other investigations and prosecutions conducted under international auspices and to comply with the Rome Statute of the International Criminal Court;
- continue to foster cooperation and good neighbourly relations in the region.
2.
Political dialogue
Political dialogue between the two parties is to be further developed. It will promote in particular:
- Kosovo’s participation in the international democratic community, should objective circumstances so permit;
- advancement of Kosovo’s European perspective and gradual harmonisation (rapprochement) with the EU;
- increasing convergence with certain measures of the EU’s common foreign and security policy;
- effective, inclusive and representative regional cooperation and the development of good neighbourly relations in the Western Balkans;
- the process of normalisation of relations between Kosovo and Serbia. Kosovo commits to continued engagement towards visible and sustainable improvement in relations with Serbia.
3.
Regional cooperation
Kosovo is required to take a number of steps. The EU, through appropriate instruments, may support these efforts, that include:
- implementing the Central European Free Trade Agreement;
- pursuing cooperation with the countries which have already signed an SAA with the EU with a view to concluding bilateral agreements on regional cooperation;
- pursuing bilateral and regional cooperation with countries involved in the stabilisation and association process (SAP) in some or all the fields of cooperation covered by this agreement;
- fostering cooperation and concluding, if possible, cooperation agreements with any EU candidate country not involved in the SAP.
4.
Free movement of goods
- The 2 parties are committed to gradually establishing a bilateral free trade area over a period lasting a maximum of 10 years.
- The SAA sets out a process for reducing and removing customs tariffs and quotas on goods from both the EU and Kosovo.
5.
Movement of workers, establishment, supply of services and movement of capital
- Companies (as well as subsidiaries and branches) based in one party will be allowed to set up operations on the territory of the other party under the same conditions as companies based in that territory.
- An EU company established in the territory of Kosovo or a Kosovo company established in the EU can, under certain conditions, employ, or have employed by one of its subsidiaries or branches, employees who are nationals of the EU or citizens of Kosovo respectively.
- Both parties must take steps which progressively allow their companies or nationals to supply services in the territory of the other party.
- All payments and transfers on the current account of balance of payments between the EU and Kosovo must be permitted in a freely convertible currency.
6.
Alignment of the laws of the country to those of the EU
- Kosovo agrees to ensure that its existing law and future legislation will gradually be made compatible with the EU acquis and that such laws will be properly implemented and enforced.
- Initially, this will focus on fundamental elements of EU law in the fields of the internal market and of freedom, security and justice, as well as on trade-related areas.
- Both sides are bound by competition rules, based on EU law, relating to actions that may affect trade between the 2 parties.
7.
Freedom, security and justice
The SAA emphasises the importance of the rule of law and reinforcing institutions at all levels in the areas of administration in general and law enforcement and the administration of justice in particular.

Cooperation notably aims at:
- strengthening the independence, impartiality and accountability of the judiciary in Kosovo and improving its efficiency;
- developing adequate structures for the police, prosecutors and judges and other judicial and law enforcement bodies to
  - adequately prepare them for cooperation in civil, commercial and criminal matters, and
  - enable them to effectively prevent, investigate, prosecute and adjudicate organised crime, corruption and terrorism.
8.
Cooperation policies
The EU and Kosovo are to establish close cooperation on a wide range of policy areas to help the development and growth potential of Kosovo.
9.
Financial cooperation
To help achieve the objectives of this agreement Kosovo 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 (SAC) to supervise the application and implementation of the SAA.

The SAC is assisted in the performance of its duties by a stabilisation and association committee.

FROM WHEN DO THE DECISION AND THE AGREEMENT APPLY?

The decision has applied since 12 February 2016 and the agreement since 1 April 2016.

BACKGROUND

For more information see:

Kosovo (European Commission)
Stabilisation and Association Agreement (SAA) between the European Union and Kosovo signed — press release (Council).
Factsheet: EU engagement in the Western Balkans (European External Action Service)
Overview — Instrument for Pre-accession Assistance (European Commission)

MAIN DOCUMENTS

Stabilisation and Association Agreement between the European Union and the European Atomic Energy Community, of the one part, and Kosovo*, of the other part (OJ L 71, 16.3.2016, pp. 3-321)

Council Decision (EU) 2016/342 of 12 February 2016 on the conclusion, on behalf of the Union, of the Stabilisation and Association Agreement between the European Union and the European Atomic Energy Community, of the one part, and Kosovo*, of the other part (OJ L 71, 16.3.2016, pp. 1-2)

Council Decision (EU) 2015/1988 of 22 October 2015 on the signing, on behalf of the Union, of the Stabilisation and Association Agreement between the European Union and the European Atomic Energy Community, of the one part, and Kosovo*, of the other part (OJ L 290, 6.11.2015, pp. 4-6)