Communication from the Ministry of Foreign Affairs No. 189 / 1997 Coll.

Q: Is Communication from the Ministry of Foreign Affairs No. 189 / 1997 Coll. still valid?

Yes, Communication from the Ministry of Foreign Affairs No. 189 / 1997 Coll. is still valid and effective.

189

COMMUNICATION

Ministry of Foreign Affairs

The Ministry of Foreign Affairs announces that the Free Trade Agreement between the Czech Republic and the Republic of Lithuania was signed in Prague on 14 October 1996.

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 Vilnius on 30 May 1997.

The Agreement entered into force on 1 July 1997 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 the Republic of Lithuania

PREAMBLE

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

having regard to the Declaration of Ministers of the Central European Free Trade Agreement, signed in Brno on 11 September 1995,

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 obstacles to essentially all trade between them in accordance with the provisions of the General Agreement on Tariffs and Trade 1994,

firmly convinced that this Agreement will support the strengthening of mutually beneficial trade relations between them and contribute to the process of integration 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 and international organisations, in particular the World Trade Organisation,

agree as follows:

Článek 1

Objectives

1. The Parties shall gradually 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 1994 and the Agreement on the interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994.

2. The objectives of this Agreement are:

(a) to promote the harmonious development of economic relations between the Parties through the expansion of trade and thus to 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

Článek 2

Scope

Provisions of this The chapters will cover 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.

Článek 3

Import duties and charges having equivalent effect

1. No new import duty or charge having equivalent effect shall be introduced in trade between Parties.

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

3. The Parties shall abolish between themselves any charges having equivalent effect to import duties on the date of entry into force of this Agreement.

Článek 4

Basic duty

1. For each product, the basic duty applicable to the successive reductions provided for in this Agreement shall be the most favoured-nation duty applicable on 1 July 1996.

2. Where, after the entry into force of this Agreement, any reduction in customs duties pursuant to the erga omnes principle occurs, those 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.

Článek 5

Fiscal duties

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

Článek 6

Export duties and charges having equivalent effect

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

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

3. The Parties shall abolish between themselves any charges having equivalent effect to export duties on the date of entry into force of this Agreement.

Článek 7

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, except those listed in Annex I to this Agreement.

Článek 8

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 and measures having equivalent effect on exports of products originating in the Parties shall be lifted on the date of entry into force of this Agreement.

Článek 9

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 of Annex II to this Agreement, of the draft technical regulations and the draft supplements they intend to issue.

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

CHAPTER II

AGRICULTURAL PRODUCTS

Článek 10

Scope

Provisions of this The chapters will cover 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.

Článek 11

Import duties and charges having equivalent effect

1. No new import duty or charge having equivalent effect shall be introduced in trade between Parties.

2. The import duties shall be applied in accordance with the provisions of Protocol 3 to this Agreement.

3. The Parties shall abolish between themselves any charges having equivalent effect to import duties on the date of entry into force of this Agreement.

Článek 12

Basic duty

1. For each product, the basic duty shall be the most-favoured-nation duty applicable on 1 July 1996.

2. Where, after the entry into force of this Agreement, any reduction in customs duties pursuant to the erga omnes principle occurs, those 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.

Článek 13

Concession and agricultural policy

1. Notwithstanding the concessions granted under Protocol 3 to this Agreement, 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 on the basis of such policies, including the application of the relevant provisions of the WTO Agreements.

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.

Článek 14

Special protective measures

Notwithstanding the other provisions of this Agreement and in particular Article 27, where, taking into account the particular 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 with a view to finding an appropriate solution. Before reaching such a solution, the Party concerned may take any measures it deems necessary.

Článek 15

Veterinary, health and phytosanitary measures

1. The measures relating to veterinary and phytosanitary checks shall be harmonised between the Parties in accordance with European Union legislation.

2. Veterinary and sanitary measures and the activities of veterinary services shall be implemented in accordance with the Code of the International Office for 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 agricultural products.

CHAPTER III

GENERAL PROVISIONS

Článek 16

Rules of origin and customs cooperation

1. Protocol 4 to this Agreement lays down the rules of origin and methods of administrative cooperation relating thereto.

2. The Parties shall take appropriate measures, including regular verifications by the Joint Committee and adjustments to administrative cooperation, to ensure that the provisions of Protocol 4 to this Agreement and Articles 3 to 8, 11, 12, 17 and 28 of this Agreement are applied effectively and harmonically, and to limit 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 customs authorities will take place in accordance with the provisions of Protocol 5 to this Agreement.

Článek 17

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. Exporters may not benefit from repayment of internal taxation if they exceed the amount of direct or indirect taxation applied to products exported in the territory of one of the Parties.

Článek 18

General exemptions

This Agreement shall not preclude prohibitions or restrictions on imports, exports or transit of goods authorised for reasons of public morality, public interest or public security; the protection of human, animal or plant life or health; protection of national monuments of artistic, historical or archaeological value; the protection of intellectual property or the rules relating to gold or silver or the maintenance of depleted natural resources where 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.

Článek 19

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 their 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 specifically intended for 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.

Článek 20

State Monopoly

1. The Parties shall gradually adapt any state monopoly of a commercial nature to ensure that there is no discrimination between Party nationals by 1 July 1999 as regards 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.

Článek 21

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, any measure relating to normal payments linked to the movement of goods shall comply with the conditions laid down in Article VIII of the International Monetary Fund Agreement.

Článek 22

Competition rules concerning undertakings

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

(a) all agreements between undertakings, decisions by associations of undertakings and practices agreed between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(b) abuse of a dominant position, one or more undertakings, in 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 undertakings, including public undertakings and undertakings to which the Parties grant special or exclusive rights. Undertakings entrusted with the operation of services of general economic interest or having the character of a state income monopoly shall be subject to the provisions of paragraph 1 where 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 1a shall not apply to such agreements, decisions and practices which form an integral part of the organisation of the national market.

4. Where a Party considers that the 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.

Článek 23

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 implementation of this Agreement, provided that it can affect trade between Parties by its action.

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

3. The Parties shall ensure transparency in the field of State aid, inter alia, by providing each other with annual reports on its total 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.

4. Where a Party considers that any particular practice, including agricultural practice:

- is incompatible with the conditions of paragraph 1, and

- if such practice causes or threatens to cause serious harm to the interests of the Party or material damage to its domestic industry,

may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31. Such appropriate measures may be taken only in accordance with the procedures and under the conditions laid down in the World Trade Organisation Agreements and any other relevant agreement negotiated under its auspices between the Parties.

Článek 24

Public procurement

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

2. The Parties shall gradually draw up their respective procurement rules with a view to giving suppliers of the other Party access to the procurement procedures on their public procurement markets by 1 January 2001 at the latest, in accordance with the provisions of the World Trade Organisation Agreement on Government Procurement.

3. The Joint Committee shall examine developments relating to the achievement of the objectives of this Article and may recommend practical ways of 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 scope and / or degree of market openness in accordance with paragraph 2.

5. The Parties shall endeavour to accede to the Agreement on Government Procurement in the World Trade Organisation.

Článek 25

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 will be gradually improved in order to reach a level corresponding to the basic standards of multilateral agreements specified in Annex III to this Agreement before 1 July 1999.

2. For the purposes of this Agreement, "intellectual property protection 'shall include, in particular, the protection of copyright, including computer programs 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 matters. At the request of any Party, expert consultations shall be held 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 World Trade Organisation and the World Intellectual Property Organisation, as well as on the relations of the Parties to any third country in matters relating to intellectual property.

Článek 26

Dumping

Where any Party finds that dumping is being applied in trade relations governed by this Agreement within the meaning of Article VI of the General Agreement on Tariffs and Trade 1994, it may take appropriate measures against such practice in accordance with Article VI of the General Agreement on Tariffs and Trade 1994 and the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, under the conditions and in accordance with the procedure laid down in Article 31.

Článek 27

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.

Článek 28

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 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 such measures, may not exceed 25% ad valorem and retain a preferential element for products originating in the other Party. The total value of imports of products subject to these measures may 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 statistics are available.

4. These measures shall apply for a period not exceeding three years. They shall cease to apply by 1 January 2001 at the latest.

5. No such measures may be introduced for a product where more than three years have elapsed since the elimination of all 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 not later than two years after their introduction, at the same annual rates. The Joint Committee may decide on a different timetable.

Článek 29

Reexport and serious deficiency (goods)

Where compliance with the provisions of Articles 6 and 8 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 situation causes or is likely to cause significant difficulties to the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.

Článek 30

Implementation of commitments

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

2. Where a 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.

Článek 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. Notwithstanding paragraph 7, the Party considering the application of safeguard measures shall immediately inform the other Party in writing and provide all relevant information. The Joint Committee shall immediately hold consultations between the Parties in order to find 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 written 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 in writing to the other Party. They shall be limited to their extent and duration to what is strictly necessary to remedy the situation which has caused them to apply and shall not exceed the damage caused by the practice or difficulties involved. Priority shall be given to measures which least disturb the implementation of this Agreement.

6. The safeguard measures adopted shall be the subject of regular consultations within the Joint Committee with a view to achieving their mitigation or abolition 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 prior checks, the Party concerned may, in the cases of Articles 26, 27 and 29, apply immediately the provisional measures strictly necessary to remedy the situation. These measures shall be notified in writing without delay and consultations shall take place as soon as possible between the Parties within the Joint Committee.

Článek 32

Balance of payments difficulties

1. The Parties shall endeavour to avoid imposing 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 1994, 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.

Článek 33

Development clause

1. In cases where a Party considers it useful in the interests of the Parties' economies to develop and deepen the relations established by this Agreement in the form of enlargement to areas not covered by the Agreement, it shall submit a reasoned request to the other Party. The Parties may instruct the Joint Committee to review such a request and, where appropriate, to make recommendations, in particular with a view to initiating negotiations.

(2) Agreements resulting from the procedure referred to in paragraph 1 shall be subject to ratification or approval by the Parties in accordance with their laws.

CHAPTER IV

Citation	Communication from the Ministry of Foreign Affairs No. 189 / 1997 Coll., on the negotiation of the Free Trade Agreement between the Czech Republic and the Republic of Lithuania
Regulation Type	International Treaty
Author	-
Collection	Code of Laws

Date of Promulgation	27.08.1997
Effective from	01.07.1997
Effective until	-
Status	Valid

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

Contents