1. Non-Annex I products M O N T E N E G R O Negotiating Team for the Accession of the Montenegro to the European Union Working Group for Chapter 11 – Agriculture and Rural Development Brussels, 11 – 13 december 2012 Lidija Rmuš lrmus @ pkcg.org Bilateral screening: Chapter 11

2. Basic terms of imports and exports of processed agricultural products (non-anex1 Products) were established by the Protocol of Accession of Montenegro Marrakesh Agreement Establishing the World Trade Organization (Official Gazette, International Agreements No. 03-2012-). Processed agricultural products they were agreed only with the EU and EFTA members. Negotiations on processed agricultural products were conducted along with the negotiations on agricultural products with the other states. Non-Annex I products M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11 Agriculture and rural development

3. Stabilization and Association Agreement Chapter II Agriculture and Fisheries classifies all agricultural products into three groups: I.Basic agricultural products II.Fishery products III.Processed agricultural products (PAPs) Non-Annex I products M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11 Agriculture and rural development

4. Non-Annex I products M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11 Agriculture and rural development Basic production groups in the Non-Anex 1 Products sector: - yoghurt containing added sugar and dairy spreads (CN codes 0403 and 0405) - products of animal origin – bristles, guts, feathers, horns etc. (CN part 5) - sweet corn (CN 071040 and 0711 90 30) - maté (CN code 0903) - seaweed,( CN codes 1212 20) - vegetable saps and extracts ( CN codes 1302) - vegetable plaiting materials ( CN part 14) - margarine, glycerine and oils and its fractions (CN code 1515-1522) - confectionery products (CN-Codes 1704,1803,1804, 1805,1806,1905) - various convenience food and sauces (CN-Codes 1901,1902,1904,2005,2008, part 21),including pasta, ice-cream, soups… - non-alcoholic beverages, alcoholic beverages, except wine (CN part 22) - tobacco products (CN-Codes 2402,2403) - processed starch products, essential oils, casein (CN-Codes 2905, 3301, 3302,3501, 3809).

5. Non-Annex I products M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11 Agriculture and rural development “European formula” for calculation of the preferential customs duty Montenegro does not apply the system of customs protection to the processed agricultural products (PAPs) on the basis of the content of the agricultural component, nor can it introduce it because of its commitment to the WTO, before the accession to the EU.

6. Non-Annex I products M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11 Agriculture and rural development E F T A Concessions for processed agricultural products have been approved to our side by every signatory individually. Concessions EFTA countries to Montenegro - the same approach being given as to the EU members. Concessions ensured by our side to the EFTA states is close to the level of liberalization approved by the EU within the SAA from 2012 (will be in force from 1 January 2015). Reduction in customs duties will be carried out in four equal steps 2012-2015 year.

7. Thank you for your attention! QUESTIONS