The Stabilisation and Association Agreement (SAA) is a new, third generation of European agreements offered exclusively to the Western Balkans countries, in the framework of the Stabilisation and Association Process. The Agreement is signed for an undefined period of time with a view to contributing to economic and political stabilisation of Bosnia and Herzegovina. States which have become members through the fifth enlargement of the EU have signed Association Agreements (the so-called European agreements). The basic difference between the two mentioned agreements is in the content of the “evolution clause” in the SAA and in the emphasis on regional cooperation in Western Balkans.

By signing the Agreement, Bosnia and Herzegovina has confirmed its status of a potential candidate country, owing to the “evolution clause”. That is much more than what the signatory countries to the European agreement have received concerning further accession to the EU. Another difference is reflected in regional cooperation, in which a signatory country commits to signing bilateral agreements with countries in the Stabilisation and Association Process, as well as with candidate countries.

The Stabilisation and Association Agreement is of a “mixed” character, which means that in areas of cooperation member countries are partly responsible and partly the European Union. The SAA defines in a certain way relations between Bosnia and Herzegovina and the European Union in all three pillars of the Union (European Community: economic policies and common market, Common Foreign and Security Policy, and Justice and Home Affairs).

Stabilisation and Association Agreement contains 10 chapters:

1. General Principles 
2. Political Dialogue 
3. Regional Cooperation 
4. Free Movement of Goods 
5. Movement of Workers,  Business Plans, Provision of Services, Movement of Capital.    
6. Legal Harmonisation, Legal Implementation and Market Competition Rules 
7. Justice, Freedom and Security 
8. Policies of Cooperation 
9. Financial Cooperation 
10. Institutional, General and Final Provisions