(2)

Regulation (EC) No 1215/2009 does not provide any possibility to temporarily suspend the grant of exceptional trade measures in case of serious and systematic violations of the fundamental principles of human rights, democracy and the rule of law by its beneficiaries. It is appropriate to introduce such possibility, so as to ensure that swift action can be taken in case serious and systematic violations of the fundamental principles of human rights, democracy and the rule of law would occur in one of the countries and territories participating in or linked to the European Union's Stabilisation and Association process.

(2)

Regulation (EC) No 1215/2009 does not provide any possibility to temporarily suspend the grant of exceptional trade measures in case of serious and systematic violations of the fundamental principles of human rights, democracy and the rule of law by its beneficiaries. It is appropriate to introduce such possibility, so as to ensure that swift action can be taken in case serious and systematic violations of the fundamental principles of human rights, democracy and the rule of law would occur in one of the countries and territories participating in or linked to the European Union's Stabilisation and Association process. Respect for democratic principles, the rule of law, human rights and the protection of minorities are required to achieve progress in the accession process.

(5)

Since the launch of the Stabilisation and Association Process, Stabilisation and Association Agreements have been concluded with all concerned Western Balkan countries, with the exception of Bosnia and Herzegovina and Kosovo (1). In June 2013 , the Council authorised the Commission to start negotiations for a Stabilisation and Association Agreement with Kosovo.

(5)

Since the launch of the Stabilisation and Association Process, Stabilisation and Association Agreements have been concluded with all concerned Western Balkan countries, with the exception of Bosnia and Herzegovina and Kosovo (2). In May 2014 , the negotiations for a Stabilisation and Association Agreement with Kosovo were completed and the Agreement was initialled in July 2014 .

(7)

However, Bosnia and Herzegovina has not yet accepted to adapt trade concessions granted under the Interim Agreement in order to take into account the preferential traditional trade between Croatia and Bosnia and Herzegovina under the Central European Free Trade Agreement (CEFTA). In case, by the time of the adoption of this Regulation, an agreement on the adaptation of the trade concessions set out in the Stabilisation and Association Agreement and in the Interim Agreement has not been signed and provisionally applied by European Union and Bosnia and Herzegovina, the preferences granted to Bosnia and Herzegovina should be suspended as from 1 January 2016. Once Bosnia-Herzegovina and the European Union will have signed and provisionally applied an agreement on the adaptation of trade concessions in the Interim Agreement, those preferences should be re-established.

(7)

However, Bosnia and Herzegovina has not yet accepted to adapt trade concessions granted under the Interim Agreement in order to take into account the preferential traditional trade between Croatia and Bosnia and Herzegovina under the Central European Free Trade Agreement (CEFTA). In case, by the time of the adoption of this Regulation, an agreement on the adaptation of the trade concessions set out in the Stabilisation and Association Agreement and in the Interim Agreement has not been signed and provisionally applied by European Union and Bosnia and Herzegovina, the preferences granted to Bosnia and Herzegovina should be suspended as from 1 January 2016. Once Bosnia-Herzegovina and the European Union will have signed and provisionally applied an agreement on the adaptation of trade concessions in the Interim Agreement, those preferences should be re-established. The authorities of Bosnia and Herzegovina and the Commission should redouble efforts to find, before 1 January 2016 and in line with the Interim Agreement, a mutually acceptable solution, especially in terms of cross-border trade,

(7a)

It is necessary to take into account the constant progress towards European Union membership by the concerned countries and territories of the Western Balkans, as well the accession of Croatia to the Union and the consequent need to adapt the Interim Agreement with Bosnia and Herzegovina. In this context, it is also necessary to take into account the Union's unequivocal commitment to Bosnia and Herzegovina's EU perspective, as set out in the conclusions of the Foreign Affairs Council of 15 December 2014. In those conclusions, the need was reiterated for the political leadership of Bosnia and Herzegovina to anchor the reforms needed for EU integration in the work of all relevant institutions, and the need to establish the functionality and efficiency at all levels of government in order to allow Bosnia and Herzegovina to prepare for future EU membership,

(7b)

The European Union remains committed to support Bosnia and Herzegovina's European perspective and expects the political leadership of the country to pursue reforms aimed at promoting functional institutions as well as ensuring equal rights for the three constituent peoples and all citizens of Bosnia and Herzegovina.