Prof. Gordana Djurovic, PhD. University of Montenegro, Faculty of Economics

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1 Prof. Gordana Djurovic, PhD. University of Montenegro, Faculty of Economics Podgorica, 7 December 2016

2 CEFTA 2006

3 Liberalization and economic integration dynamic of the CEFTA Parties * This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo declaration of independence.

4

5 Services Investment Government procurement Protection of intellectual property

6 Liberalization of the service sectors WG for Trade in Services was established within CEFTA in 2010 (RS Chair in Office); A Study on the level of services market openness prepared Multilateral negotiations with objective to cover all service sectors and 4 modes of supply (Mode 1:Cross-border; Mode 2:Consumption abroad; Mode 3:Commercial presence; Mode 4:Presence of natural persons) WF on Trade in Services made the first draft of the text of the Additional Protocol for Trade in Services Negotiating Group on Trade in Services was established in 2014: Subject of the negotiations was/is the Additional protocol 6 on trade in services to the Agreement on admendment of and eccesion to the Central Free Trade Agreement, with a few annexes including The Consolidated schedule of commitments The last negotiation session was held on 5 th December 2016 Next challenges: Reconsilation meetings (Memorandum of data exchange) and signing of MRAs (doctors, dentists, engineers, architects..)

7 1. Business services (including professional services and computer services) 2. Communication services 3. Construction and related engineering services 4. Distribution services Commission agents' services Wholesale trade services Retailing services Franchising Other 5. Educational services 6. Environmental services 7. Financial services (including insurance and banking) 10. Recreational, cultural and sporting services 8. Health-related and social services 11. Transport services Maritime transport Internal Woterways transport Air transport Railway transport Road transport Pipelines transport Services auxiliary to all modes of transport 9. Tourism and travelrelated services - Hotels & Restaurants - Turist agencies - Tourist guides service Other services not included elsewhere - An agreement is achieved regarding full liberalization in the sectors of construction, environmental protection and distribution services; - Some restrictions are agreed in the area of professional and business services, communications services, education services, financial services, health and social services, tourism, recreational, cultural and sport, as well as in transport. 7

8 The Consolidated schedule of commitments SECTOR 1. BUSINESS SERVICES A. Professional Services Architectural services (CPC 8671) LIMITATIONS ON MARKET ACCESS LIMITATIONS ON NATIONAL TREATMENT Architectural services 8671 ALB, BIH, MAC, MOL, MNE, SRB, KOS* Engineering services (CPC 8672) e) Engineering services 8672 ALB, BIH, MAC, MOL, MNE, SRB, KOS* Integrated engineering services (CPC 8673) f) Integrated engineering services (CPC 8673) ALB, BIH, MAC, MOL, MNE, SRB, KOS*, Urban planning and landscape architectural services (CPC 8674) g) Urban planning and landscape architectural services (CPC 8674) ALB, BIH, MAC, MOL, MNE, SRB, KOS* Medical and dental services (excluding public health institutions) (CPC 9312) ALB, BIH, MAC, MNE, SRB, KOS* h) Medical and dental services (CPC 9312) excluding public health institutions 8

9 the principle of open and effective competition, transparent public procurement procedure Transitional period for effective opening of government procurement market (laws, regulations, procedures and practices ) 1 May 2010 NT for both, locally-established supplier and suppliers of the other Parties

10 The Parties shall grant and ensure adequate and effective protection of IPRs in accordance with intl. standards, in particular with TRIPS, including effective means of enforcing such rights provided for in international conventions and treaties. Not later than 1 May 2014; Embodied industrial property rights (patents, trademarks, industrial designs and geographical indications), copyright and related rights, topographies of integrated circuits, as well as protection against such unfair competition as referred to in Article 10 bis of the Paris Convention for the Protection of Industrial Property and the protection of undisclosed information as referred to in Article 39 of the Agreement on Trade-Related Aspects of Intellectual Property Rights

11 EC ACITIVITIES AND INITIATIVES Voluntary cooperation agreements in the field of IPR enforcement: MoU on the online sale of counterfeit goods MoU on online advertising and IPR MoU on payment service providers and IPR MoU on shipping companies and IPR Protection and integrity of supply chains CEFTA REGION: TO FOLLOW EC INITIATIVES an efficient and effectively enforced IP infrastructure is necessary to ensure the stimulation of investment in innovation and to avoid commercial-scale IPR infringements that result in economic harm. Stronger cooperation between authorities at all levels in the fight against intellectual property infringement needed The LISC Model Legitimate-Illegitimate Supply Chain Model

12 gradual achievement of a broad coordination of investment policies Start from the bilateral investment agreements (reciprocal promotion and protection of investment) Objectives (Article 31) The Parties shall create and maintain stable, favourable and transparent conditions for investors of the other Parties that are making or seeking to make investments in their territories Each Party shall promote as far as possible investments made by investors of the other Parties on its territory and admit such investments in accordance with its domestic laws and regulations When a Party shall have admitted an investment made by investors from the other Parties, it shall, in accordance with its domestic laws and regulations, grant the necessary permits and administrative authorisations in connection with such an investment the Parties shall exchange, within the framework of the Joint Committee, information about their laws and regulations regarding the establishment of investments, as well as any investment opportunities. Treatment of Investments (Article 32) Each Party shall... fair and equitable treatment and full protection and security to investments of the investors protect investments made in accordance with its domestic laws and regulations by investors of the other Parties and shall not impair by unreasonable or discriminatory measures the management, maintenance, use, enjoyment, extension, sale or liquidation of such investments. as regards the establishment and operation of other Parties investments, a treatment no less favorable than that granted by each Party to investments made by its own investors Evolutionary Clause (Article 33) Joint Committe - gradual achievement of a broad coordination of their investment policies. to review internal legal framework regarding investments, with the aim of facilitating the investment conditions

13 Berlin process (Berlin, Wiena, Paris, Roma...) as an Annexe to the EU Agenda Roads, Railways, Ports, Airports, Pipelines EU support for project preparations, technical assistance and grants (IPA II for WB & ENI for MD) Bankable projects IFIs (EIB, EBRD, CEB, KfW, World Bank...) Single voice from the Region for strengthening of European economic integration

14 The Connectivity Agenda

15 Trans-European Transport Network TEN-T core network corridors (routes for WB added )

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