Communication from the Ministry of Foreign Affairs No. 53 / 1998 Coll.
Communication from the Ministry of Foreign Affairs on the Free Trade Agreement between the Czech Republic and the Republic of Estonia
Valid
Effective from 12.02.1998
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53
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that a Free Trade Agreement between the Czech Republic and the Republic of Estonia was signed in Tallinn on 19 April 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 Prague on 12 February 1998.
The Agreement has been applied on a provisional basis as from 1 July 1996 pursuant to Article 41 (3) thereof and entered into force on 12 February 1998 pursuant to paragraph 1 of that Article.
The Czech translation of the Agreement is announced simultaneously.
FREE TRADE AGREEMENT
between the Czech Republic and Estonia
PREAMBLE
Czech Republic and Estonia, hereinafter referred to as the Parties,
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 organisations, in particular the World Trade Organisation,
agree as follows:
Objectives
1. The Parties shall progressively establish a free trade area for a substantial part of their mutual trade, 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) 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
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.
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 Parties shall abolish all import duties and charges having equivalent effect between themselves on the date of entry into force of this Agreement.
Fiscal duties
Article 3 shall also apply to duties of a fiscal nature.
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. The 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 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.
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 an equivalent effect on exports of products originating in the Parties shall be lifted on the date of entry into force of this Agreement, except those listed in Annex II to this Agreement.
Procedure for the exchange of information on draft technical regulations
1. The Parties shall inform each other in writing of the draft technical regulations and the draft supplements they intend to issue in the shortest possible period and in accordance with the provisions of Annex III to this Agreement.
2. The Joint Committee shall decide on the date of the commencement of application of the provisions of paragraph 1.
CHAPTER II
AGRICULTURAL PRODUCTS
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.
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 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.
Fiscal duties
Article 10 shall also apply to duties of a fiscal nature.
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 January 1996.
2. Where, after the entry into force of this Agreement, any reduction in customs duties pursuant to the erga omnes principle occurs, 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.
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. The 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 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.
Concession and agricultural policy
1. Notwithstanding the concessions granted under Protocol 1 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 Agreement on Agriculture within the World Trade Organisation.
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 to investigate the situation.
3. Taking into account the composition of Estonian customs tariffs on the date of entry into force of this Agreement, where no customs duties are applied to agricultural products, the Republic of Estonia may, by way of derogation from the provisions of Article 10 of this Agreement and in accordance with the implementation of its agricultural policy, introduce import duties on a limited number of agricultural products originating in the Czech Republic.
4. The Republic of Estonia may introduce import duties during the two years following the entry into force of this Agreement and after consultation of the Joint Committee. If necessary, a period of two years may be extended by a decision of the Joint Committee for one year. These measures shall apply for a period not exceeding three years.
5. In all such cases, the Republic of Estonia shall provide a reasonably large preferential margin for products originating in the Czech Republic, to which it shall provide no less favourable treatment than that accorded to products originating in the Republic of Estonia.
Special protective measures
Notwithstanding the other provisions of this Agreement, and in particular Article 29, 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 with a view to finding 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 relating to veterinary and phytosanitary checks shall be brought into line with European Union legislation and shall be aligned between the Parties.
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 animals, plants or products.
CHAPTER III
GENERAL PROVISIONS
Rules of origin and customs cooperation
1. Protocol 2 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 2 to this Agreement and Articles 3 to 7, 10 to 14, 19 and 30 of this Agreement are applied effectively and harmonically, and to minimise as far as possible the formalities used 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 3 to this Agreement.
Internal taxation
1. The Parties shall refrain from any measure or practice of an internal fiscal nature which either directly or indirectly discriminates 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 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.
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.
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 before 1 July 1999 concerning 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, either 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 be applied by other authorities entrusted with the monopoly.
Payments
1. Payments in freely convertible currencies relating to the trading 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 current payments linked to the movement of goods shall comply with the conditions laid down in Article VIII of the International Monetary Fund Agreement.
Competition rules concerning undertakings
1. The following is incompatible with the proper implementation of this Agreement if it may affect trade between 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 1 (a) 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 to material damage to its domestic industry, it may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 33.
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 application 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. 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 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.
5. Where a Party considers that any particular practice, including agricultural practice:
- 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 where such practice causes or threatens to cause serious injury 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 provisions of Article 33. Such appropriate measures may be taken only in accordance with the procedures and under the conditions laid down by the World Trade Organisation and any other relevant agreement negotiated under its auspices 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 draw up their respective procurement rules with a view to giving suppliers of the other Party access to procurement procedures on their public procurement markets by 1 January 1999 at the latest, in accordance with the provisions of the Agreement on Government Procurement within the World Trade Organisation.
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 relevant agreements negotiated under the auspices of the World Trade Organisation.
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 in order to reach a level corresponding to the basic standards of multilateral agreements specified in Annex IV to this Agreement before 1 January 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 such 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.
Dumping
If either 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 this 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 33.
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 33.
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 these measures, may not exceed 25% ad valorem and shall retain the preferential element in the tariff rate 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.
Reexport and serious deficiency (goods)
Where compliance with the provisions of Articles 5 and 7 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 33.
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. If 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 33.
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 29 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 28, 29 and 31, the Joint Committee shall examine the case or situation and may take any decision necessary to put an end to 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 32, 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 24 and 25, the Party concerned shall provide the Joint Committee with all assistance required to investigate the case and, where appropriate, assist in the removal of practices against which there are objections. If the relevant Party 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 days of notification of the matter, the Party concerned may take appropriate measures to face difficulties arising from the practice.
5. The safeguard measures taken shall be notified immediately in writing to the other Party. They shall be limited in scope and duration which are 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 investigations, the Party concerned may, in the cases of Articles 28, 29 and 31, 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.
Balance of payments difficulties
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 53 / 1998 Coll., on the negotiation of the Free Trade Agreement between the Czech Republic and the Republic of Estonia |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 06.04.1998 |
|---|---|
| Effective from | 12.02.1998 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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