Communication from the Ministry of Foreign Affairs No. 126 / 1995 Coll.

Q: Is Communication from the Ministry of Foreign Affairs No. 126 / 1995 Coll. still valid?

Yes, Communication from the Ministry of Foreign Affairs No. 126 / 1995 Coll. is still valid and effective.

126

COMMUNICATION

Ministry of Foreign Affairs

The Ministry of Foreign Affairs announces that the Free Trade Agreement between the Czech Republic and Romania was signed in Prague on 24 October 1994.

The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified it. The instruments of ratification were exchanged in Bucharest on 31 March 1995.

The Agreement has been provisionally implemented since 1 January 1995 and entered into force on 31 March 1995 pursuant to Article 39 (1) thereof.

The Czech version of the Agreement is hereby published at the same time. The English version of the Agreement, which is relevant for its interpretation, can be consulted by the Ministry of Foreign Affairs and the Ministry of Industry and Trade.

AGREEMENT

on free trade between the Czech Republic and Romania

PREAMBLE

Czech Republic and Romania (hereinafter referred to as "the Parties'),

Bearing in mind the Memorandum on the liberalisation of trade relations between the Czech Republic and Romania of 8 November 1993,

Recalling their intention to participate actively in the process of economic integration as an important element of stability on the European continent and expressing their readiness to cooperate in finding ways and means to strengthen this process,

reaffirming its firm commitment to the principles of the market economy that underpin their relations,

Recalling its firm commitment to the Final Act of the Conference on Security and Cooperation in Europe, the Paris Charter and in particular the principles contained in the final document of the Bonn Conference on Economic Cooperation in Europe,

Decisions to this end to gradually remove most of the barriers to trade between them in accordance with the provisions of the General Agreement on Tariffs and Trade,

firmly convinced that this agreement will support the strengthening of mutually beneficial trade relations between them and contribute to the integration process in Europe,

Taking into account that no provision of this Agreement can be interpreted as excluding the Parties from their obligations under other international agreements, in particular the General Agreement on Tariffs and Trade,

agree as follows:

Objectives

1. The Parties shall progressively establish, in a transitional period ending on 1 January 1998 at the latest, a free trade area in accordance with the provisions of this Agreement and in accordance with Article XXIV of the General Agreement on Tariffs and Trade.

2. The objectives of this Agreement are:

(a) promote the harmonious development of economic relations between the Parties by expanding trade and thus facilitate the development of economic activity, improving living and working conditions and increasing productivity and financial stability in the Parties;

(b) to provide fair conditions of competition in trade between the Parties;

(c) contribute in this way by removing barriers to trade to the harmonious development and expansion of world trade.

CHAPTER I

- INDUSTRIAL PRODUCTS

Scope

The provisions of this Chapter shall apply to industrial products originating in the Parties. For the purposes of this Agreement, the term "industrial products' means products covered by Chapters 25 to 97 of the Harmonised Commodity Description and Coding System, with the exception of products listed in Annex Ia, but including products listed in Annex Ib.

Import duties

1. No new import duties will be introduced in trade between the Parties.

2. The import duties shall be abolished in accordance with the provisions of Protocol 1 to this Agreement.

Basic duty

1. For each product, the basic duty from which the successive reductions provided for in this Agreement are to be applied shall be the most favourable duty applicable on 1 January 1993.

2. Where, after the entry into force of this Agreement, any reduction in customs duties is made in accordance with the principle of erga omnes, such reduced duties shall replace the basic duties referred to in paragraph 1 as from the date of application of such reductions.

3. The reduced duties calculated in accordance with paragraph 2 shall be applied, rounded to one decimal place.

4. The Parties shall notify each other of their respective national basic customs duties in accordance with the provisions of paragraph 2.

Fees equivalent to customs duties

1. No new charge will be introduced in trade between the Parties which has an effect equivalent to the import duty.

2. All charges having an effect equivalent to import duties shall be abolished on the date of entry into force of this Agreement, except as indicated in Annex II.

Fiscal duties

Article 3 shall also apply to duties of a fiscal nature.

Export duties and charges having equivalent effect

1. No new export duties or charges having equivalent effect shall be introduced in trade between Parties.

2. The Parties shall abolish all export duties and charges having equivalent effect between themselves on the date of entry into force of this Agreement, except as set out in Annex III.

Quantitative restrictions on imports and measures having equivalent effect

1. No new quantitative restrictions on imports or measures having equivalent effect shall be introduced in trade between Parties.

2. All quantitative restrictions and measures having equivalent effect on imports of products originating in the Parties shall be lifted on the date of entry into force of this Agreement, with the exceptions set out in Annex IV.

Quantitative restrictions on exports and measures having equivalent effect

1. No new quantitative restrictions on exports or measures having equivalent effect shall be introduced in trade between Parties.

2. All quantitative restrictions on exports from the Parties and measures having equivalent effect shall be lifted in accordance with the provisions of Annex Va and Annex Vb.

Procedure for the exchange of information on draft technical regulations

1. The Parties shall inform each other in writing, as soon as possible and in accordance with the provisions laid down in Annex VI, of the draft technical regulations and the draft supplements they intend to issue.

2. The Joint Committee shall decide on the date for the application of paragraph 1.

CHAPTER II.

- AGRICULTURE PRODUCTS

Scope

The provisions of this Chapter shall apply to agricultural products originating in the Parties. For the purposes of this Agreement, the term "agricultural products' means products covered by Chapters 1 to 24 of the Harmonised Commodity Description and Coding System, with the exception of products listed in Annex Ib, but including products listed in Annex Ia.

Exchange of concessions

1. The Parties shall grant each other concessions as specified in Protocol 2, in accordance with the provisions of this Chapter.

2. Taking into account

- the role of agriculture in its economies,

- the development of trade in agricultural products between the Parties,

- specific sensitivity of agricultural products,

- the rules of its agricultural policies,

- the consequences of the Uruguay Round of multilateral trade negotiations under the General Agreement on Tariffs and Trade,

The Parties shall examine the possibilities of granting each other other concessions.

Concession and agricultural policy

1. Without prejudice to concessions granted pursuant to Article 12, the provisions of this Chapter shall not restrict, in any way, the implementation of the relevant agricultural policies of the Parties or the adoption of any measures based on such policies, including the implementation of the results resulting from the Uruguay Round of multilateral trade negotiations.

2. The Parties shall communicate to each other in writing any changes to their respective agricultural policies or measures taken which may affect the conditions of trade in agricultural products between them as set out in this Agreement. At the request of either Party, immediate consultations shall be held with a view to examining the situation.

Special protective measures

Notwithstanding the other provisions of this Agreement and in particular Article 27, where, taking into account the specific sensitivity of agricultural markets, imports of products originating in any Party which are the subject of concessions granted under this Agreement cause serious damage to the markets of the other Party, the Party which is concerned by such injury shall enter into immediate consultations in order to find an appropriate solution. Before reaching such a solution, the Party concerned may take any measures it deems necessary.

Veterinary, health and phytosanitary measures

1. The measures concerning phytosanitary control of plants and plant products will be brought into line with European Union legislation and will be aligned between the Parties.

2. Veterinary and sanitary measures and activities of the Veterinary Services will be carried out in accordance with the Code of the International Office of Diseases and other international conventions in this field.

3. The Parties undertake not to introduce discriminatory or other unusual measures which may restrict the flow of information and trade in animals, plants or products.

CHAPTER III.

- GENERAL PROVISIONS

Rules of origin and customs cooperation

1. Protocol 3 lays down the rules of origin and methods of administrative cooperation relating thereto.

2. The Parties shall take appropriate measures, including regular reviews by the Joint Committee and adjustments to administrative cooperation, to ensure that the provisions of Protocol 3 and Articles 3 to 9, 12, 17 and 28 of this Agreement are applied effectively and harmonically, and to minimise as far as possible the formalities applied in trade and to achieve mutually satisfactory solutions to any difficulties arising from the implementation of those provisions.

3. Mutual cooperation between the customs authorities of the Parties will take place in accordance with the provisions of Protocol 4.

Internal taxation

1. The Parties shall refrain from any measures or practices of an internal fiscal nature which, either directly or indirectly, introduce discrimination between products originating in the Parties.

2. Products exported to the territory of any Party shall not benefit from repayment of internal taxation if they exceed the amount of direct or indirect taxation imposed on them.

General exemptions

This Agreement shall not preclude prohibitions or restrictions on the import, export or transit of goods authorised for reasons of public morality, public interest or public security, the protection of life or of human, animal or plant health, the protection of national monuments of artistic, historical or archaeological value, the protection of intellectual property or of rules relating to gold or silver, or the maintenance of usable natural resources, provided that such measures are applied in conjunction with restrictions on domestic production or consumption. Such prohibitions or restrictions may not, however, become a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Safety exemptions

Nothing in this Agreement shall prevent any Party from taking any reasonable measure it deems necessary:

(a) to prevent disclosure of information contrary to its essential security interests;

(b) to protect its essential security interests or to fulfil international obligations or national policies;

(i) relating to trade in arms, munitions and war material, provided that such measures do not distort the conditions of competition for products not intended for specific military purposes and for trade in other goods, materials and services such as those operated directly or indirectly for the purpose of supplying armed forces; or

(ii) related to the non-proliferation of biological and chemical weapons, nuclear weapons or other nuclear explosive devices; or

(iii) adopted at the time of war or other serious international tensions.

State Monopoly

1. The Parties shall gradually adapt any state monopoly of a commercial nature to ensure that, by the end of the fifth year following the entry into force of this Agreement, there will be no discrimination between Party nationals regarding the conditions under which goods are procured and traded.

2. The provisions of this Article shall apply to any authority through which the competent authorities of the Parties, in law or in fact, either directly or indirectly supervise, decide on or significantly influence imports or exports between the Parties. These provisions will also apply to other authorities which will be entrusted with any Party providing a monopoly.

Payments

1. Payments in freely convertible currencies relating to the trade of goods between the Parties and the transfer of such payments to the territory of the Party to this Agreement where the creditor is established shall be exempt from any restrictions.

2. The Parties shall refrain from any foreign exchange or administrative restrictions on the provision, repayment or acceptance of short-term and medium-term loans in respect of trade in goods in which the resident participates.

3. Notwithstanding the provisions of paragraph 2, until Article VIII of the International Monetary Fund Agreement becomes applicable to the Parties, the Parties shall reserve the right to apply foreign exchange restrictions on the provision or acceptance of short and medium-term loans in respect of trade in goods to the extent permitted under their International Monetary Fund status, provided that such restrictions are applied in a non-discriminatory manner as regards the origin of the products and that they are not applied only to certain products or types of products. The restrictions will have a limited duration and will be removed as soon as the situation does not justify their continued maintenance. The Party shall immediately inform the other Party of the introduction of such measures and of any change thereto.

Competition rules for entrepreneurs

1. The following facts are incompatible with the proper functioning of this Agreement if they may affect trade between the Parties:

(a) any agreements between entrepreneurs, decisions of an association of entrepreneurs and practices agreed between entrepreneurs which aim to prevent, restrict or distort competition;

(b) abuse of a dominant position, by one or more entrepreneurs, within the territory of the Parties as a whole or a substantial part thereof.

2. The provisions of paragraph 1 shall apply to the activities of all entrepreneurs, including public and business entrepreneurs, to whom the Parties shall grant special or exclusive rights. Entrepreneurs entrusted with the performance of services of general economic interest or having the character of a monopoly producing a national pension shall be subject to the provisions of paragraph 1, unless the application of those provisions does not prevent the performance, in law or in fact, of the specific public tasks assigned to them.

3. As regards the products referred to in Chapter II, the provisions referred to in paragraph 1 (a) of this Article shall not apply to such agreements, decisions and practices forming an integral part of the organisation of the national market.

4. Where a Party considers that a practice is incompatible with paragraphs 1, 2 and 3, and where such practice acts or threatens to cause serious harm to the interests of that Party or material damage to its domestic industry, it may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.

State aid

1. Any aid granted by a State which is a Party to this Agreement or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall be incompatible with the proper functioning of this Agreement if it may affect trade between Parties by its effect.

2. The provisions of paragraph 1 shall not apply to products referred to in Chapter II.

3. Within three years of the entry into force of this Agreement, the Joint Committee shall adopt the criteria on the basis of which practices contrary to paragraph 1 shall be evaluated and the rules governing their implementation.

4. The Parties shall ensure transparency in the field of State aid, inter alia, by providing each other with annual reports on its overall amount and on the distribution of the assistance provided and, at the request of the other Party, with information on assistance programmes and on specific individual State aid cases.

5. Where either Party considers that any particular practice, including agricultural practices:

- is incompatible with the conditions of paragraph 1 and is not adequately treated in accordance with the implementing rules referred to in paragraph 3, or

- these rules are lacking, and whether or not this practice is causing serious harm to the interests of this Party or material damage to its domestic industry,

may take appropriate measures under the conditions and in accordance with the provisions of Article 31. Such appropriate measures may be taken only in accordance with the procedures and under the conditions laid down in the General Agreement on Tariffs and Trade and any other relevant agreements negotiated under its auspices which are implemented between the Parties.

Public procurement

1. The Parties shall consider the liberalisation of their public procurement markets as an objective of this Agreement.

2. The Parties shall gradually establish their respective procurement rules with a view to providing the suppliers of the other Party with access to the procurement procedures on their public procurement markets by the end of 1998 at the latest, as provided for in the General Agreement on Tariffs and Trade of 12 April 1979, as amended by the Protocol on Amendments of 2 February 1987.

3. The Joint Committee shall examine developments relating to the achievement of the objectives of this Article and may recommend practical arrangements for implementing the provisions of paragraph 2 in order to ensure free access, transparency and full balance of rights and obligations.

4. During the examination referred to in paragraph 3, the Joint Committee may consider, in particular in the light of developments in this field in international relations, the possibility of extending the substantive scope and / or degree of market openness in accordance with paragraph 2.

5. The Parties shall endeavour to accede to the relevant agreements negotiated under the auspices of the General Agreement on Tariffs and Trade.

Protection of intellectual property

1. The Parties shall provide and ensure the protection of intellectual property rights on a non-discriminatory basis, including measures for the provision and enforcement of such rights. Protection shall be progressively strengthened in order to reach, before the end of the fifth year following the entry into force of this Agreement, a level corresponding to the substantive standards of multilateral agreements specified in Annex VII.

2. For the purposes of this Agreement, "intellectual property protection 'shall include, in particular, the protection of copyright, including computer programmes and databases and related rights, trade marks, geographical indications, industrial designs, patents, topographies of integrated circuits, as well as classified information on know-how.

The Parties shall cooperate on intellectual property issues. At the request of any Party, consultations shall be held between experts on these matters, in particular on activities relating to existing or future international conventions on the harmonisation, enforcement and enforcement of intellectual property and on the activities of international organisations such as the General Agreement on Tariffs and Trade, the World Intellectual Property Organisation and the Parties' relations with third countries on intellectual property issues.

Dumping

Where any Party finds that dumping within the meaning of Article VI of the General Agreement on Tariffs and Trade is being applied in the trade relations governed by this Agreement, it may take appropriate measures against such practices in accordance with Article VI of the General Agreement on Tariffs and Trade and with agreements relating to this Article, under the conditions and in accordance with the procedure laid down in Article 31.

General safeguard measures

Where any product is imported in such increased quantities and under such conditions as to cause or threaten to cause:

(a) serious injury to domestic producers of like or directly competing products in the territory of the importing Party; or

(b) serious disturbances in any related sector of the economy or difficulties which could cause a serious deterioration in the economic situation of the area, the Party concerned may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.

Structural changes

1. Any Party may, for a limited period, adopt exceptional measures derogating from the provisions of Article 3 in the form of increased customs duties.

2. These measures may concern only newly developed industries or certain sectors undergoing restructuring or facing serious difficulties, in particular where these difficulties result in serious social problems.

3. The import duties which the Party concerned may apply to products originating in the other Party, introduced by these measures, may not exceed 25% ad valorem and retain a preferential element for products originating in the Parties. The total value of imports of products subject to these measures shall not exceed 15% of the total imports of industrial products from the other Party as defined in Chapter I. during the last year for which statistical data are available.

4. These measures shall be applied for a period not exceeding five years, unless their duration is approved by the Joint Committee.

5. No such measures may be introduced for a product where more than five years have elapsed since the elimination of all customs duties and quantitative restrictions or charges or measures having equivalent effect on that product.

6. The Party concerned shall inform the other Party of any exceptional measures it intends to take and, at the request of the other Party, consultations shall be held within the Joint Committee on the measures and sectors to which they will apply before they are introduced. When adopting such measures, the Party concerned shall provide the Joint Committee with a timetable for the elimination of the duties established under this Article. That timetable shall provide for the phasing-out of these duties, starting no later than two years after their introduction, at the same annual rates. The Joint Committee may decide on a different timetable.

Reexport and serious deficiency (goods)

Where compliance with the provisions of Articles 7 and 9 leads to:

(a) re-export to a third country in respect of which the exporting Party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect for the product in question; or

(b) a serious deficiency or threat thereof for the product necessary for the exporting Party and where the above situations cause or are likely to cause significant difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 31.

Implementation of commitments

1. The Parties shall take all general or specific measures necessary to fulfil their obligations under this Agreement. They shall ensure that the objectives set out in this Agreement are achieved.

2. If one Party considers that the other Party has not fulfilled an obligation under this Agreement, the Party concerned may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.

Procedure for applying safeguard measures

1. Prior to the initiation of the procedure leading to the application of the safeguard measures provided for in the following paragraphs of this Article, the Parties shall endeavour to resolve any discrepancies between them through direct consultations.

2. In the event that a Party submits imports of products liable to cause the situation referred to in Article 27 to an administrative procedure designed to rapidly obtain information on the trend in the flow of goods, it shall inform the other Party accordingly.

3. The provisions of paragraph 7 shall not be disturbed if the Party considering the application of safeguard measures immediately informs the other Party in writing and provides all relevant information. The Joint Committee shall immediately consult the Parties with a view to finding a solution.

4. (a) As regards Articles 26, 27 and 29, the Joint Committee shall examine the case or situation and may take any decision necessary to end the difficulties notified by the Party concerned. If such a decision is not taken within 30 days of notification of the matter to the Joint Committee, the Party concerned may take the necessary measures to remedy the situation.

(b) As regards Article 30, the Party concerned may take appropriate measures after consultation or after a three-month period from the date of the first notification to the other Party.

(c) With regard to Articles 22 and 23, the Party concerned shall provide the Joint Committee with all assistance required to examine the case and, where appropriate, assist in the removal of the practices against which it is objected. If the Party concerned does not remove the practice against which it is objected during the period laid down by the Joint Committee or if the Joint Committee fails to reach agreement within 30 working days of the matter being referred to it, the Party concerned may take appropriate measures to face difficulties arising from the practice in question.

5. The safeguard measures taken shall be notified immediately to the other Party. They shall be limited in scope and duration to what is strictly necessary to remedy the situation which caused their use and shall not exceed the damage caused by the relevant practice or difficulties. Priority shall be given to measures which least disturb the functioning of this Agreement.

6. The protection measures adopted shall be the subject of regular consultations within the Joint Committee with a view to achieving their mitigation or cancellation as soon as possible, provided that the conditions no longer justify their maintenance.

7. Where exceptional circumstances requiring immediate action make it impossible to carry out a prior review, the Party concerned may, in the cases of Articles 26, 27 and 29, apply without delay the provisional measures strictly necessary to remedy the situation. These measures shall be notified without delay and consultations shall take place as soon as possible between the Parties within the Joint Committee.

Balance of payments difficulties

1. The Parties shall endeavour to avoid the imposition of restrictive measures, including those concerning imports, for reasons of balance of payments protection.

2. Where one of the Parties is in serious difficulties in the balance of payments or under their immediate threat, the Party concerned may, in accordance with the relevant provisions of the General Agreement on Tariffs and Trade, adopt restrictive measures, including those relating to imports of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. These measures will be gradually mitigated as the balance of payments conditions improve and will be removed if the conditions no longer justify their maintenance. The Party concerned shall immediately inform the other Party of their introduction and, if practicable, of the timetable for their removal.

Development clause

Citation	Communication from the Ministry of Foreign Affairs No. 126 / 1995 Coll., on the negotiation of the Free Trade Agreement between the Czech Republic and Romania
Regulation Type	International Treaty
Author	-
Collection	Code of Laws

Date of Promulgation	25.07.1995
Effective from	31.03.1995
Effective until	-
Status	Valid

Communication from the Ministry of Foreign Affairs on the negotiation of the Free Trade Agreement between the Czech Republic and Romania

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