The European Commission suggested Monday that the EU extends its trade privileges for the Western Balkan countries, including Serbia, by another five years.

The arrangement, first signed in 2000, allows export of almost any goods from Serbia, Albania, Bosnia-Herzegovina, Macedonia, Montenegro and UNMIK-Kosovo to the EU without customs barriers and quantity limitations.

This status allows the Western Balkan countries to be part of the Stabilization and Association Process. Together with the bilateral agreements currently in effect, these trade preferences help those countries' economic integration into the EU, thereby supporting political stability and economic progress in the entire region, says an announcement by the Commission.

The preference agreement was already extended once in 2005, so it is due to expire in December 2010. The new extention needs to be confirmed by EU ministers and the European Parliament. The announcement states that ending the trade privileges might cause negative consequences to the overall economic condition within the Western Balkan countries and their reform processes. The EU is the biggest trade partner to the Western Balkans.