Communication from the Ministry of Foreign Affairs No. 229 / 1994 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Free Trade Agreement between the Czech Republic and the Republic of Slovenia
Valid
International Treaty
Effective from 26.08.1994
Text versions:
12.12.1994
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229
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs announces that a Free Trade Agreement between the Czech Republic and the Republic of Slovenia was signed in Ljubljana on 4 December 1993.
The Parliament of the Czech Republic agreed to the Agreement and the President of the Republic ratified it.
Pursuant to Article 39 (3) of the Agreement, the Agreement has been provisionally applied since 1 January 1994 and entered into force in accordance with paragraph 2 of that Article on 26 August 1994.
The Czech translation of the Agreement is announced simultaneously.
AGREEMENT
on free trade
between
The Czech Republic and the Republic of Slovenia
PREAMBLE
the Czech Republic and the Republic of Slovenia (hereinafter referred to as "the Contracting Parties'),
Having regard to the Memorandum on the liberalisation of trade relations between the Czech Republic and the Republic of Slovenia of 4 May 1993,
Recalling their intention to participate actively in the process of economic integration in Europe 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 Contracting Parties from their obligations under other international agreements, in particular the General Agreement on Tariffs and Trade,
agree as follows:
Objectives
1. The Contracting Parties shall progressively establish an area of free trade in accordance with the provisions of this Agreement and in accordance with Article XXIV of the General Agreement on Tariffs and Trade for a transitional period ending on 1 January 1996 at the latest.
2. The objectives of this Agreement are:
(a) promote the harmonious development of economic relations between the Contracting Parties by expanding trade and thus assist the development of economic activity, improving living and working conditions and increasing productivity and financial stability in the Contracting Parties;
(b) to grant fair conditions in trade between the Contracting 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 Contracting 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 I.
Import duties
1. No new import duties will be introduced in trade between the Contracting 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 to be applied by the successive reductions provided for in this Agreement shall be the most favoured-nation duty applied on 1 January 1993.
2. Where, after the entry into force of this Agreement, any reduction in customs duties pursuant to the principle of erga omnes, in particular those resulting from the tariff agreement negotiated as a result of the Uruguay Round of multilateral trade negotiations, those reduced duties shall replace the basic duties referred to in paragraph 1 from the date of application of such reductions.
3. The reduced duties calculated in accordance with paragraph 2 of this Article shall be applied to one decimal place.
4. The Contracting Parties shall notify each other of their respective national customs duties.
Fees equivalent to customs duties
1. No new charge will be introduced in trade between the Contracting 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 the Contracting Parties.
2. The Contracting Parties shall abolish all export duties and charges having equivalent effect between themselves on the date of entry into force of this Agreement.
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 the Contracting Parties.
2. All quantitative restrictions and measures having equivalent effect on imports of products originating in the Contracting Parties shall be lifted as from the date of entry into force of this Agreement, with the exceptions set out in Annex III.
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 the Contracting Parties.
2. The Parties shall not apply any quantitative restrictions on exports or measures having equivalent effect.
Procedure for the exchange of information on draft technical regulations
1. The Contracting Parties shall inform each other in writing, as soon as possible and in accordance with the provisions laid down in Annex IV, of the draft technical regulations and the draft supplements they intend to issue.
The Joint Committee shall decide on the deadline for implementing the provisions of paragraph 1.
CHAPTER II.
- AGRICULTURE PRODUCTS
Scope
The provisions of this Chapter shall apply to agricultural products originating in the Contracting Parties to this Agreement. 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 and products listed in Annex I.
Exchange of concessions
1. The Contracting Parties to this Agreement 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 Contracting Parties,
- specific sensitivity of agricultural products,
- the rules of its agricultural policies,
- the consequences of multilateral trade negotiations under the General Agreement on Tariffs and Trade,
The Contracting Parties shall examine the possibilities of granting each other further concessions.
Concession and agricultural policy
1. Without prejudice to concessions granted under Article 12, the provisions of this Chapter shall not restrict the implementation of the relevant agricultural policies, including the implementation of the results resulting from the Uruguay Round of multilateral trade negotiations.
2. The Contracting Parties shall communicate to each other 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 any Contracting Party, immediate consultations shall be held with a view to reviewing 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 one of the Contracting Parties which are the subject of concessions granted under this Agreement cause serious market violations of the other Contracting Party, the Contracting Party which is concerned by this infringement shall immediately enter into consultations with a view to finding an appropriate solution. Before reaching such a solution, the Contracting Party concerned may take the measures it deems necessary.
Veterinary, health and phytosanitary measures
Measures concerning phytosanitary control of plants and plant products shall be brought into line with European Community legislation in the Contracting Parties to this Agreement.
Veterinary sanitary measures and the activities of veterinary services will be implemented in accordance with the Code of the International Office of Disease and other international conventions in this field.
Such services 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.
Internal taxation
1. The Contracting Parties shall refrain from any measures or practices of an internal fiscal nature which either directly or indirectly discriminate between products originating in the Contracting Parties.
2. Products exported to the territory of one of the Contracting Parties may not benefit from reimbursement 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, justified on grounds of public morality, public interest or public security, the protection of health and human life, the life of animals or plants, the protection of national monuments having 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 shall not, however, become a means of arbitrary discrimination or a disguised restriction on trade between the Contracting Parties.
Safety exemptions
Nothing in this Agreement shall prevent any Contracting 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 such trade in other goods, materials and services operated directly or indirectly for the purpose of supplying armed forces; or
(ii) related to nuclear materials or materials derived therefrom; or
(iii) adopted at the time of war or other serious international tensions.
State Monopoly
1. The Contracting Parties shall gradually adapt any State monopoly of a commercial nature to ensure that, at the end of the fifth year following the entry into force of this Agreement, there is no discrimination between nationals of the Contracting Parties 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 Contracting Parties, in law or in fact, either directly or indirectly, oversee, decide or significantly influence imports or exports between the Contracting Parties. These provisions will also apply in the same way to other bodies entrusted with the provision of a monopoly by the Contracting Party.
Payments
1. Payments in freely convertible currencies relating to the trading of goods between the Contracting Parties and the transfer of such payments to the territory of the Contracting 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 paragraph 2, until Article VIII of the International Monetary Fund Agreement becomes applicable to the Contracting Parties, the Contracting Parties shall reserve the right to apply foreign exchange restrictions on the provision or acceptance of short-term 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 in respect of the origin of the products and that they are not applied only to certain products or types of products. Restrictions will be of limited duration and will be removed as soon as the situation does not justify their continued maintenance. The Contracting Party shall immediately inform the other Contracting Party of the introduction of such measures and of any amendment thereto.
Competition rules concerning undertakings
1. The following are incompatible with the proper functioning of this Agreement if they may affect trade between the Contracting Parties:
(a) all agreements between undertakings, decisions of 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 by one or more undertakings in the territory of the Contracting 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 Contracting Parties grant special or exclusive rights. Undertakings entrusted with the operation 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 obstruct 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) shall not apply to such agreements, decisions and practices forming an integral part of the organisation of the national market.
4. Where a Contracting Party considers that the practice in question is incompatible with paragraphs 1, 2 and 3 of this Article, and where such practice causes or threatens to cause serious harm to the interests of that Contracting 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 Contracting 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 the Contracting Parties.
2. The provisions of paragraph 1 shall not apply to products referred to in Chapter II.
3. The Joint Committee shall, within three years of the entry into force of this Agreement, adopt the criteria on the basis of which practices contrary to paragraph 1 and the rules governing their implementation shall be evaluated.
4. The Contracting 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. Information on assistance programmes and specific individual State aid cases shall be provided at the request of the other Contracting Party.
5. Where any Contracting Party considers that a specific specific 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 absent and cause or threaten to cause serious harm to the interests of the Contracting Party or material damage to its domestic industry,
may take appropriate measures under the conditions and in accordance with the provisions referred to in 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 Contracting Parties.
Public procurement
1. The Parties shall consider the liberalisation of their public procurement markets as an objective of this Agreement.
2. The Contracting Parties shall gradually establish their respective rules on public procurement with the aim of providing suppliers of the other Contracting 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 Agreement 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 of this Article in order to ensure free access, transparency and full balance of rights and obligations.
4. During the examination referred to in paragraph 3 of this Article, 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 provided for in 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 improved and shall reach a level corresponding to the relevant standards of multilateral agreements specified in Annex V before the end of the fifth year following the entry into force of this Agreement.
2. For the purposes of this Agreement, "intellectual property protection 'shall include, in particular, the protection of copyright, 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.
3. Protection of topographies of integrated circuits provided by any Contracting Party will be provided on a reciprocal basis.
4. The Parties shall cooperate on intellectual property issues. At the request of any Contracting 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 General Agreement on Tariffs and Trade, the World Intellectual Property Organisation and the relations of the Contracting Parties to third countries on intellectual property issues.
Dumping
Where a Contracting 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 the agreements relating to this Article, under the conditions and in accordance with the procedure laid down in Article 31 of this Agreement.
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 damage to domestic producers of similar 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 Contracting Party concerned may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.
Structural adjustments
1. Any Contracting 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, particularly where these difficulties result in serious social problems.
3. Import duties applied by the relevant Contracting Party to products originating in the other Contracting Party and introduced by such measures shall not exceed 25% ad valorem and shall maintain a preferential element for products originating in the Contracting 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 relevant Contracting Party shall inform the other Contracting Party of any exceptional measures it intends to take and, at the request of the other Contracting 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 Contracting Party to which this applies shall provide the Joint Committee with a timetable for the elimination of the duties introduced under this Article. This timetable provides for a gradual reduction and elimination of these duties, the reduction process shall start 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 where 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 Contracting Parties shall take all general or specific measures to comply with their obligations under this Agreement. They shall ensure that the objectives set out in this Agreement are achieved.
2. If the Contracting Party considers that the other Contracting Party has failed to fulfil an obligation under this Agreement, the Contracting 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 Contracting Parties shall endeavour to resolve any discrepancies between them through direct consultations.
2. Where a Contracting 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 Contracting Party accordingly.
3. Paragraph 7 of this Article shall not be disturbed if the Contracting Party considering the application of safeguard measures immediately informs the other Contracting Party in writing and provides all relevant information. Consultations shall be held within the Joint Committee between the Contracting Parties with the intention of 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 Contracting Party concerned. If this decision is not taken within 30 days of notification of the matter to the Joint Committee, the Contracting Party concerned may take the necessary measures to remedy the situation.
(b) As regards Article 30, the Contracting Party concerned may take appropriate measures after consultation or after a three-month period from the date of first notification to the other Contracting Party.
(c) As far as Articles 22 and 23 are concerned, the Contracting 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 they are objected. If the relevant Contracting Party omits to terminate the practice against which there are objections within the period set 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 Contracting Party concerned may take appropriate measures to deal with the difficulties arising from the practice in question.
5. The safeguard measures taken shall be notified immediately to the other Contracting 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 safeguard 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 if the situation no longer justifies their maintenance.
7. In cases where exceptional circumstances requiring immediate action make it impossible to carry out prior examination, the Contracting 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 without delay and consultations shall take place as soon as possible between the Contracting Parties within the Joint Committee.
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 229 / 1994 Coll., on the negotiation of a Free Trade Agreement between the Czech Republic and the Republic of Slovenia |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 12.12.1994 |
|---|---|
| Effective from | 26.08.1994 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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