Explanatory Memorandum to COM(2007)744 - Signing and conclusion of the Interim Agreement on trade and trade-related matters between the EC and Serbia

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1. The attached Proposal for a Council Decision constitutes the legal instrument for the signing and conclusion of the Interim Agreement between the European Community, on the one part, and the Republic of Serbia, hereinafter called Serbia, on the other part.[1]

2. In accordance with the negotiating directives adopted by the Council on 3 October 2005, as amended on 24 July 2006, and after a three month suspension due to insufficient cooperation of Serbia with the International Criminal Tribunal for the former Yugoslavia (ICTY), the Commission concluded on 7 November 2007 the negotiations for a Stabilisation and Association Agreement (SAA) with the country. The Commission is proposing the signature and conclusion of the SAA to the Council but it will enter into force only after ratification of both Community and all its Member States on one side and Serbia on the other.

3. Pending the ratification of the SAA, the Commission, in accordance with the negotiating directives and Article 139 of the SAA itself, is proposing to conclude an Interim Agreement to allow the trade and trade-related provisions of the SAA to enter into force as soon as possible following SAA signature. The Commission has negotiated the text of an Interim Agreement with Serbia, initialling it on 7 November 2007.

4. The more favourable trade concessions granted by Council Regulation (EC) No 2007/2000 of 18 September 2000, introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC) No 1763/1999 and (EC) No 6/2000 i, will continue to apply, in parallel to the Interim Agreement.

5. The Commission asks the Council, when Council and Commission will have reached a positive joint review of the political conditionality i to approve the results of the negotiations, and to sign and conclude the Interim Agreement on behalf of the European Community on the basis of the attached proposal.