RESTRICTED
WORLD TRADE WT/REG8/1
12July1995
ORGANIZATION(95-1950)
Original:English/French/Spanish
FREE TRADE AGREEMENT BETWEEN
ESTONIA AND THE EUROPEAN COMMUNITIES
Thefollowing textreproduces theFreeTrade Agreement1between Estonia andtheEuropean
Communities.
____________________
AGREEMENT ONFREE TRADE AND TRADE-RELATED MATTERS
BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN ATOMIC ENERGY
COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY,
OFTHE ONE PART, AND THE REPUBLIC OFESTONIA, OFTHE OTHER PART
TheEuropean Community, theEuropean Atomic Energy Community andtheEuropean Coal
andSteel Community,
hereinafter referred toas'theCommunity ',oftheonepart,
andtheRepublic ofEstonia,
hereinafter referred toas'Estonia ';oftheother part,
Whereas theParties recall thehistorical linksbetween themandthecommon values theyshare;
whereas theywishtoreinforce theselinks, toestablish closeandlasting relations onabasisofreciprocity
allowing Estonia toparticipate intheprocess ofEuropean integration, inreinforcing andfurther
developingtherelationspreviouslyestablished,inparticularviatheAgreementonTradeandCommercial
andEconomic Cooperation;
Whereas thisAgreement contributes totheattainment ofassociation;
Whereas theParties arecommitted totheintensification ofpolitical andeconomic liberties
which constitute thebasis ofthisAgreement andtofurther development ofEstonia 'sneweconomic
andpolitical system which respects -inaccordance interaliawiththeundertakings made within the
context oftheConference onSecurity andCooperation inEurope (CSCE) -theruleoflawandhuman
rights, including therights ofpersons belonging tominorities, amultiparty system withfreeand
democratic elections andliberalization aimed atsetting upamarket economy;
Whereas theParties share theunderstanding thatEstonia hasmade considerable andsuccessful
reform efforts inthepolitical andeconomic fields andthatthese efforts willbepursued;
1TheAnnexes andProtocols thereto havebeensubmitted totheSecretariat forconsultations by
interested Members (Office 3006).WT/REG8/1
Page2
WhereasthePartiesarecommittedtotheimplementationofcommitmentsmadeintheframework
oftheCSCE, inparticular those setoutintheHelsinki Final Act,theconcluding documents ofthe
Madrid, Vienna andCopenhagen meetings, those oftheCharter ofParis foraNew Europe; the
conclusions oftheCSCE 'sBonn Conference, theCSCE Helsinki document 1992, theEuropean
Convention onHuman Rights aswellastheEuropean Energy Charter when ratified;
Whereas trade andtrade liberalization areimportant forstability inEurope onthebasis of
cooperation, ofwhich oneofthepillars istheEuropean Community;
Whereasthereisaneedtocontinue,withtheCommunity'shelp,Estonia'spoliticalandeconomic
reform;
Whereas theCommunity wishes tocontribute totheimplementation ofthereform andtoassist
Estonia infacing theeconomic andsocial consequences ofstructural adjustment;
Whereas fullimplementation oftheAgreement islinked totheimplementation ofacoherent
programme ofeconomic andpolitical reform byEstonia;
Whereas theParties recognize theneedforcontinuing regional cooperation among theBaltic
States, taking intoaccount thatcloser integration between theEuropean Union (EU) andtheBaltic
States, andtheBaltic States among themselves should proceed inparallel;
Whereas theParties arecommitted toliberalize trade based onGATT principles;
Whereas theParties expect thatthisAgreement willcreate anewclimate foreconomic relations
between themandabove allforthedevelopment oftradeandinvestment, which areessential toeconomic
restructuring andtherenewal oftechnology;
Whereas itisimportant thatpolitical dialogue between theParties should beenhanced;
Whereas theParties recognize thefactthatEstonia 'sultimate objective istobecome amember
oftheEUandthatthesteptowards association through thisAgreement, intheviewoftheParties,
willhelpEstonia toachieve thisobjective;
Have decided toconclude thisAgreement andtothisendhave designated astheir
Plenipotentiaries,
TheEuropean Community andtheEuropean Atomic Energy Community:
TheEuropean CoalandSteel Community;
TheRepublic ofEstonia;
Who, having exchanged theirfullpowers, found ingood anddueform,
Have agreed asfollows:WT/REG8/1
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TITLE I
General Principles
Article 1
1. Respect fordemocratic principles andhuman rights, established bytheHelsinki Final Actand
intheCharter ofParis foraNewEurope, aswellastheprinciples ofmarket economy, inspire the
domestic andexternal policies oftheParties andconstitute essential elements ofthisAgreement.
2. TheParties consider thatitisessential forthefuture prosperity andstability oftheregion that
theBaltic States should maintain anddevelop cooperation among themselves andwillmake every effort
toenhance thisprocess.
3. TheParties regard theimplementation ofthisAgreement asadecisive steptowards theearly
conclusion ofaEurope Agreement between Estonia andtheCommunity.
TITLE II
FreeMovement ofGoods
Article 2
1. TheCommunity andEstonia shallestablish afreeareauponentry intoforceofthisAgreement,
inaccordance withtheprovisions ofthisAgreement andinconformity withthose oftheGeneral
Agreement onTariffs andTrade (GATT).
2. Thecombined nomenclature ofgoods shallbeapplied totheclassification ofgoods intrade
between thetwoParties.
3. Foreachproduct covered bythisAgreement thebasic dutyshallbethatactually applied erga
omnes on1January 1994. Thesuccessive reductions setoutinthisAgreement aretobeapplied to
these basic duties.
4. If,aftertheentry intoforce ofthisAgreement, anytariffreduction isapplied onanergaomnes
basis, inparticular, reductions resulting fromthetariff agreement concluded asaresult oftheGATT
Uruguay Round, suchreduced duties shallreplace thebasic duties referred toinparagraph 3asfrom
thedatewhen suchreductions areapplied.
5. TheCommunity andEstonia shallcommunicate toeachother theirrespective basic duties.
CHAPTER I
Industrial Products
Article 3
1. Theprovisions ofthischapter shallapply toproducts originating intheCommunity andin
Estonia listed inChapters 25to97ofthecombined nomenclature withtheexception oftheproducts
listed inAnnex I.WT/REG8/1
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2. Trade between theParties initems covered bytheTreaty establishing theEuropean Atomic
Energy Community willbeconducted inaccordance withtheprovisions ofthatTreaty.
Article 4
CustomsdutiesandquantitativerestrictionsonimportsintotheCommunityandmeasureshaving
equivalent effect shallbeabolished ontheentry intoforce ofthisAgreement withregard toproducts
originating inEstonia.
Article 5
Customs duties andquantitative restrictions onimports intoEstonia andmeasures having an
equivalent effect shallbeabolished ontheentry intoforce ofthisAgreement withregard toproducts
originating intheCommunity.
Article 6
Theprovisions concerning theabolition ofcustoms duties onimports shallalsoapply tocustoms
duties ofafiscal nature.
Article 7
TheCommunity andEstonia shallabolish upon entry intoforce ofthisAgreement intrade
between themselves anycharges having aneffect equivalent tocustoms duties onimports.
Article 8
1. TheCommunity andEstonia shallabolish upon entry intoforce ofthisAgreement intrade
between themselves anycustoms duties onexports andcharges having equivalent effect.
2. TheCommunity andEstonia shallabolish upon entry intoforce ofthisAgreement intrade
between themselves quantitative restrictions onexports andanymeasures having equivalent effect.
Article 9
Specific arrangements applicable tothetrade intextile andclothing products originating in
Estonia arecovered inProtocol 1.
Article 10
Theprovisions ofthischapter donotpreclude anagricultural component intheduties applicable
toproducts listed inAnnex II.
CHAPTER II
Agriculture
Article 11
1. Theprovisions ofthischapter shallapply toagricultural products originating intheCommunity
andinEstonia.WT/REG8/1
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2. Theterm'agricultural products 'means theproducts listed inChapter 1to24ofthecombined
nomenclature andtheproducts listed inAnnex I,butexcluding fishery products asdefined byRegulation
(EEC) No.3759/92.
Article 12
Protocol 2laysdown thetrade arrangements forprocessed agricultural products which are
listed therein.
Article 13
1. Asfromthedateofentry intoforce ofthisAgreement noquantitative restrictions shallapply
toimports intotheCommunity ofagricultural products originating inEstonia nortoimports intoEstonia
ofagricultural products originating intheCommunity.
2. Theconcessions granted under thisAgreement arereferred toinAnnexes III,IVandV.
3. Theconcessions referred toinparagraph 2maybesubject torevision byagreement between
theParties within threeyears afterentry intoforce ofthisAgreement andonthebasisoftheprinciples
andprocedures setoutinparagraph 4.
4. Taking account ofthevolume oftradeinagricultural products between them, oftheirparticular
sensitivity, oftherules ofthecommon agricultural policy oftheCommunity, oftherules ofthe
agricultural policy inEstonia, oftheroleofagriculture inEstonia 'seconomy, theCommunity and
Estonia shallexamine intheJoint Committee, product byproduct andonanorderly andreciprocal
basis, thepossibilities ofgranting eachother further concessions.
Article 14
Notwithstanding other provisions ofthisAgreement, andinparticular Article 23,if,given
theparticular sensitivity oftheagricultural markets, imports ofproducts originating inoneParty, which
arethesubject ofconcessions granted pursuant toArticle 13,cause serious disturbance tothemarkets
intheotherParty, bothParties shallenterintoconsultations immediately tofindanappropriate solution.
Pending suchasolution, theParty concerned maytakethemeasures itdeems necessary.
CHAPTER III
Fisheries
Article 15
Theprovisions ofthischapter shallapply tofishery products originating intheCommunity
andinEstonia, which arecovered byRegulation (EEC) No.3759/92.
Article 16
1. Theconcessions granted under thisAgreement arereferred toinAnnex VI.
2. Theprovisions ofArticles 13(4),14andArticles 18(2)and(3)shallapply mutatis mutandis
tofishery products.WT/REG8/1
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CHAPTER IV
Common Provisions
Article 17
Theprovisions ofthistitleshallapply totradeinallproducts except where otherwise provided
herein orinProtocols 1and2.
Article 18
1. Intradebetween theCommunity andEstonia fromthedateofentryintoforceofthisAgreement:
- nonewcustoms duties onimports orexports orcharges having equivalent effect shall
beintroduced, norshallthose already applied beincreased,
- nonewquantitative restrictions onimports orexports ormeasures having equivalent
effect shallbeintroduced norshallthose existing bemade more restrictive.
2. WithoutprejudicetotheconcessionsgrantedpursuanttoArticle13,theprovisionsofparagraph1
ofthisArticle shallnotrestrict inanywaythepursuance oftherespective agricultural policies ofEstonia
andtheCommunity orthetaking ofanymeasures under suchpolicies.
3. Taking account oftheEstonian tariff structure atthetimeoftheentry intoforce ofthis
Agreement, where notariff duties areprovided foragricultural products, intheevent thatanewtariff
regime fortheimport ofagricultural products isestablished, Estonia may, bywayofderogation from
paragraph 1andpursuant totheimplementation ofitsagricultural policy foritsdomestic production,
introduce duties onalimited number ofagricultural products originating intheCommunity. Such
duties mayonlybeintroduced during thefirsttwoyears following theentryintoforceofthisAgreement,
andafterconsultation intheJointCommittee. Inallsuchcases, Estonia shallensure asizeable margin
ofpreference forproducts originating intheCommunity. Ifnecessary, theperiod oftwoyears may
beprolonged byoneyearbydecision oftheJoint Committee.
Article 19
1. ThetwoParties shall refrain from anymeasure orpractice ofaninternal fiscal nature
establishing, whether directly orindirectly, discrimination between theproducts ofoneParty andlike
products originating intheterritory oftheother Party.
2. Products exported totheterritory ofoneofthetwoParties maynotbenefit from repayment
ofinternal taxation inexcess oftheamount ofdirect orindirect taxation imposed onthem.
Article 20
1. ThisAgreement shallnotpreclude themaintenance orestablishment ofcustoms unions, free
trade areas orarrangements forfrontier trade except insofarastheyalterthetrade arrangements
provided forinthisAgreement.WT/REG8/1
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2. Consultations between theParties shall takeplace within theJoint Committee concerning
agreements establishing suchcustoms unions orfreetrade areas and,where requested, onother major
issues related totheirrespective tradepolicies withthirdcountries. Inparticular intheevent ofathird
country acceding totheCommunity, suchconsultations shalltakeplace soastoensure thataccount
canbetaken ofthemutual interests oftheCommunity andEstonia stated inthisAgreement.
Article 21
Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 5and
Article 18(1),firstindent, maybetaken byEstonia intheform ofincreased customs duties.
These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce important social problems.
Customs duties onimports applicable inEstonia toproducts originating intheCommunity
introduced bythese measures maynotexceed 25% advalorem andshall maintain anelement of
preference forproducts originating intheCommunity.
Thetotalvalue ofimports oftheproducts which aresubject tothese measures maynotexceed
15%oftotalimports ofindustrial products from theCommunity asdefined inChapter Iduring the
lastyearforwhich statistics areavailable.
These measures shallbeapplied foraperiod notexceeding twoyears unless alonger duration
isauthorized bytheJoint Committee. They shallcease toapply atthelatest three years afterentry
intoforce ofthisAgreement.
Nosuchmeasures canbeintroduced inrespect ofaproduct ifmorethanthreeyears haveelapsed
sincetheeliminationofalldutiesandquantitativerestrictionsorchargesormeasureshavinganequivalent
effect concerning thatproduct.
Estonia shallinform theJointCommittee ofanyexceptional measures itintends totakeand,
attherequest oftheCommunity, consultations shallbeheldintheJointCommittee onsuchmeasures
andthesectors towhich theyapply before theyareapplied. When taking suchmeasures Estonia shall
provide theJointCommittee withaschedule fortheelimination ofthecustoms duties introduced under
thisArticle. TheJoint Committee maydecide onadifferent schedule.
Article 22
IfoneoftheParties finds thatdumping istaking place intrade withtheother Party within
themeaning ofArticle VIoftheGeneral Agreement onTariffs andTrade, itmaytakeappropriate
measures against thispractice inaccordance withtheAgreement relating totheapplication ofArticle VI
oftheGeneral Agreement onTariffs andTrade, withrelated internal legislation andwiththeconditions
andprocedures laiddown inArticle 26.
Article 23
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
- serious injury todomestic producers oflikeordirectly competitive products inthe
territory ofoneoftheParties, orWT/REG8/1
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- serious disturbances inanysector oftheeconomy ordifficulties which could bring
about serious deterioration intheeconomic situation ofaregion,
theCommunity orEstonia, whichever isconcerned, maytakeappropriate measures under the
conditions andinaccordance withtheprocedures laiddown inArticle 26.
Article 24
Where compliance withtheprovisions ofArticles 8and18leads to:
(i) re-export towards athirdcountry against which theexporting Party maintains, forthe
product concerned, quantitative export restrictions, export duties ormeasures having
equivalent effect; or
(ii) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party;
andwhere thesituations referred toabove giverise,orarelikely togiverisetomajor difficulties
fortheexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedureslaiddowninArticle26.Themeasuresshallbenon-discriminatoryandbeeliminated
when conditions nolonger justify theirmaintenance.
Article 25
TheMember States oftheEuropean Union (hereinafter referred toas'theMember States ')
andEstonia shallprogressively adjust anyStatemonopolies ofacommercial character soastoensure
that,bytheendofthefifthyearfollowing theentry intoforce ofthisAgreement, nodiscrimination
regarding theconditions under which goods areprocured andmarketed exists between nationals of
theMember States andofEstonia. TheJointCommittee willbeinformed about themeasures adopted
toimplement thisobjective.
Article 26
1. Intheevent oftheCommunity orEstonia subjecting imports ofproducts liable togiverise
tothedifficulties referred toinArticle 23toanadministrative procedure having asitspurpose the
rapid provision ofinformation onthetrend oftrade flows, itshallinform theother Party.
2. Inthecases specified inArticles 22,23and24,before taking themeasures provided fortherein
or,incases towhich paragraph 3(d)applies, assoonaspossible, theCommunity orEstonia, asthe
casemaybe,shallsupply theJoint Committee withallrelevant information withaviewtoseeking
asolution acceptable tothetwoParties.
Intheselection ofmeasures, priority mustbegiven tothose which leastdisturb thefunctioning
ofthisAgreement.
Thesafeguard measures shallbenotified immediately totheJointCommittee andshallbethe
subject ofperiodic consultations within thatbody, particularly withaviewtoestablishing atimetable
fortheirabolition assoonascircumstances permit.WT/REG8/1
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3. Fortheimplementation ofparagraph 2,thefollowing provisions shallapply:
(a) asregards Article 23,thedifficulties arising fromthesituation referred tointhatArticle
shallbereferred forexamination totheJointCommittee, which maytakeanydecision
needed toputanendtosuchdifficulties.
IftheJointCommittee ortheexporting Party hasnottaken adecision putting anend
tothedifficulties ornoother satisfactory solution hasbeenreached within 30days
ofthematter being referred, theimporting Party mayadopt theappropriate measures
toremedy theproblem. These measures mustnotexceed thescope ofwhatisnecessary
toremedy thedifficulties which havearisen;
(b) asregards Article 22,theJointCommittee shallbeinformed ofthedumping caseas
soonastheauthorities oftheimporting Party haveinitiated aninvestigation. Ifno
endhasbeenputtothedumping orifnoother satisfactory solution hasbeenreached
within 30daysofthematter being referred totheJointCommittee, theimporting Party
mayadopt theappropriate measures;
(c) asregardsArticle24,thedifficultiesarisingfromthesituationsreferredtointhatArticle
shallbereferred forexamination totheJoint Committee.
TheJointCommittee maytakeanydecision needed toputanendtothedifficulties.
Ifithasnottaken suchadecision within 30daysofthematter being referred toit,
theexporting Party mayapply appropriate measures ontheexportation oftheproduct
concerned;
(d) where exceptional circumstances requiring immediate action make prior information
orexamination, asthecasemaybe,impossible, theCommunity orEstonia whichever
isconcerned may,inthesituations specified inArticles 22,23and24,apply forthwith
theprecautionary measures strictly necessary todealwiththesituation.
Article 27
Protocol 3laysdown rulesoforigin fortheapplication ofthetariff preferences provided for
inthisAgreement aswellasthemethods ofadministrative cooperation therewith.
Article 28
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified ongrounds ofpublic morality, public policy orpublic security; theprotection of
health andlifeofhumans, animals orplants; theprotection ofnational treasures ofartistic, historic
orarchaeological value ortheprotection ofintellectual, industrial andcommercial property orrules
relating togoldandsilver. Such prohibitions orrestrictions shallnot,however, constitute ameans
ofarbitrary discrimination oradisguised restriction ontrade between theParties.
Article 29
Protocol 4laysdown thespecific provisions toapply totrade between Estonia oftheonepart
andSpain andPortugal oftheother part,anditwillbevalid until31December 1995.WT/REG8/1
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TITLE III
Payments, Competition andOther Economic Provisions
Article 30
TheParties undertake toauthorize, infreely convertible currency, anypayments onthecurrent
account ofbalance ofpayments totheextent thatthetransaction underlying thepayments concerns
movements ofgoods between theParties which havebeenliberalized pursuant tothisAgreement.
Article 31
Withreferencetotheprovisionsofthischapter,andnotwithstandingtheprovisionsofArticle32,
untilafullconvertibility oftheEstonian currency inthemeaning ofArticle VIIIoftheArticles of
Agreement ontheInternational Monetary Fund (IMF) isintroduced, Estonia mayinexceptional
circumstances apply exchange restrictions connected withthegranting ortaking upofshort and
medium-term credits totheextent thatsuchrestrictions areimposed onEstonia forthegranting of
suchcredits andarepermitted according toEstonia 'sstatus under theIMF.
Estonia shallapply these restrictions inanon-discriminatory manner. They shallbeapplied
insuchamanner astocause theleastpossible disruption tothisAgreement. Estonia shallinform
theJoint Committee promptly oftheintroduction ofsuchmeasures andofanychanges therein.
Article 32
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement, insofaras
theymayaffect trade between theCommunity andEstonia:
(i) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;
(ii) abuse byoneormore undertakings ofadominant position intheterritories ofthe
Community orofEstonia asawhole orinasubstantial partthereof;
(iii) anypublic aid,which distorts orthreatens todistort competition byfavouring certain
undertakings ortheproduction ofcertain goods.
2. Anypractices contrary tothisArticle shallbeassessed onthebasis ofcriteria arising from
theapplication oftherulesofArticles 85,86and92oftheTreaty establishing theEuropean Community
or,forproducts covered bytheECSC Treaty, onthebasisofcorresponding rulesoftheECSC Treaty
including secondary legislation.
3. TheJointCommittee shall, within threeyears oftheentry intoforce ofthisAgreement, adopt
bydecision thenecessary rules fortheimplementation ofparagraphs 1and2.
Untiltheserulesareadopted, theprovisions ofthisAgreement oninterpretation andapplication
ofArticles VI,XVIandXXIII oftheGeneral Agreement onTariffs andTrade shallbeapplied asthe
rules fortheimplementation ofparagraphs 1point (iii)andrelated parts ofparagraph 2.WT/REG8/1
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4. (a) Forthepurposes ofapplying theprovisions ofparagraph 1point (iii),theParties
recognize thatduring thefirstfiveyears aftertheentry intoforce ofthisAgreement,
anypublic aidgranted byEstonia shallbeassessed taking intoaccount thefactthat
Estonia shallberegarded asanareaidentical tothose areasoftheCommunity described
inArticle 92(3)(a)oftheTreaty establishing theEuropean Community. TheJoint
Committee shall, taking intoaccount theeconomic situation ofEstonia, decide whether
thatperiod should beextended byfurther periods ofthree years.
(b) Each Party shallensure transparency intheareaofpublic aid,interaliabyreporting
annually totheother Party onthetotalamount andthedistribution oftheaidgiven
andbyproviding, upon request, information onaidschemes. Upon request byone
Party, theother Party shallprovide information onparticular individual cases ofpublic
aid.
5. With regard toproducts referred toinChapters IIandIIIofTitleII:
- theprovision ofparagraph 1point (iii)doesnotapply,
- anypractices contrary toParagraph 1point (i)should beassessed according tothe
criteria established bytheCommunity onthebasisofArticles 42and43oftheTreaty
establishing theEuropean Community andinparticular ofthose established inCouncil
Regulation No.26.
6. IftheCommunity orEstonia considers thataparticular practice isincompatible withtheterms
ofthefirstparagraph ofthisArticle, and
- isnotadequately dealtwithunder theimplementing rulesreferred toinparagraph 3,
or
- intheabsence ofsuchrules, andifsuchpractice causes orthreatens tocause serious
prejudice totheinterests oftheother Party ormaterial injury toitsdomestic industry,
including itsservices industry,
itmaytakeappropriate measures afterconsultation within theJointCommittee orafter30days
following referral forsuchconsultation.
Inthecaseofpractices incompatible withparagraph 1point(iii)ofthisArticle, suchappropriate
measures may, where theGeneral Agreement onTariffs andTrade applies thereto, onlybeadopted
inconformity withtheprocedures andunder theconditions laiddown bytheGeneral Agreement on
Tariffs andTrade andanyother relevant instrument negotiated under itsauspices which areapplicable
between theParties.
7. Notwithstanding anyprovisions tothecontrary adopted inconformity withparagraph 3,the
Parties shallexchange information taking intoaccount thelimitations imposed bytherequirements
ofprofessional andbusiness secrecy.
Article 33
1. TheParties shallendeavour toavoid theimposition ofrestrictive measures including measures
relating toimports forbalance ofpayments purposes. Intheevent oftheirintroduction, theParty
having introduced thesame shallpresent totheother Party assoonaspossible, atimeschedule for
theirremoval.WT/REG8/1
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2. Where oneormore Member States orEstonia isinserious balance ofpayments difficulties,
orunder imminent threat thereof, theCommunity orEstonia, asthecasemaybe,may, inaccordance
withtheconditions established under theGeneral Agreement onTariffs andTrade, adopt restrictive
measures, including measures relating toimports, which shallbeoflimited duration andmaynotgo
beyond whatisnecessary toremedy thebalance ofpayments situation. TheCommunity orEstonia,
asthecasemaybe,shallinform theother Party forthwith.
Article 34
Withregard topublic undertakings, andundertakings towhich special orexclusive rights have
beengranted, theJointCommittee shallensure thatasfromthefourth yearfollowing thedateofentry
intoforceofthisAgreement, theprinciples oftheTreaty establishing theEuropean Community, notably
Article 90,andtheprinciples oftheconcluding document oftheApril 1990 Bonn meeting ofthe
Conference onSecurity andCooperation inEurope, notably entrepreneurs 'freedom ofdecision, are
upheld.
Article 35
1. TheParties commit themselves todeveloping customs cooperation inorder toachieve the
approximation ofEstonia 'scustoms system tothatoftheCommunity.
2. Cooperation shallinclude thefollowing inparticular:
- theexchange ofinformation, including onthemethods ofinvestigation,
- theorganization ofseminars andplacements,
- theintroduction ofthesingle administrative document andtheinterconnection between
thetransit system oftheCommunity andthatofEstonia,
- thesimplification oftheinspections andformalities inrespect ofthecarriage ofgoods.
Technical assistance shallbeprovided where appropriate.
3. TheParties willprovide mutual administrative assistance inaccordance withtheprovisions
ofProtocol 5.
Article 36
1. TheParties recognize thatanimportant condition fortheestablishment offreetrade between
Estonia andtheCommunity andthefurther economic integration oftheformer intotheCommunity
istheapproximation ofEstonia 'sexisting andfuture legislation tothatoftheCommunity. Estonia
shallendeavour toensure thatitstradeandtrade-related legislation willbegradually made compatible
withthatoftheCommunity.
2. Theapproximation oflawsshallextend tothefollowing areas inparticular: dumping, rules
oncompetition, customs legislation, technical rules andstandards.WT/REG8/1
Page13
3. TheCommunity shallprovide Estonia withtechnical assistance fortheimplementation ofthese
measures, which mayinclude interalia:
- theexchange ofexperts,
- theprovision ofearly information especially onrelevant legislation,
- organization ofseminars,
- training activities,
- aidforthetranslation ofCommunity legislation intherelevant sectors.
TITLE IV
Institutional, General andFinal Provisions
Article 37
TheJoint Committee setupbytheAgreement onTrade andCommercial andEconomic
Cooperation signed between theEuropean Economic Community andEstonia on11May1992 shall
perform theduties assigned toitbythisAgreement.
Article 38
TheJointCommittee shall, forthepurpose ofattaining theobjectives ofthisAgreement, have
thepower totakedecisions inthecases provided fortherein. Thedecisions taken shallbebinding
ontheParties which shalltakethemeasures necessary toimplement thedecisions taken. TheJoint
Committee mayalsomake appropriate recommendations.
Itshalldraw upitsdecisions andrecommendations byagreement between thetwoParties.
Article 39
1. EachofthetwoParties mayrefertotheJointCommittee anydispute relating totheapplication
orinterpretation ofthisAgreement.
2. TheJoint Committee maysettle thedispute bymeans ofadecision.
3. EachParty shallbebound totakethemeasures involved incarrying outthedecision referred
toinparagraph 2.
4. Intheevent ofitnotbeing possible tosettle thedispute inaccordance withparagraph 2,either
Party maynotify theother oftheappointment ofanarbitrator; theother Party must thenappoint a
second arbitrator within twomonths.
TheJoint Committee shallappoint athirdarbitrator.
Thearbitrator 'sdecisions shallbetaken bymajority vote.
EachPartytothedisputemusttakethestepsrequiredtoimplementthedecisionofthearbitrators.WT/REG8/1
Page14
Article 40
Withthescope ofthisAgreement, eachParty undertakes toensure thatnatural andlegalpersons
oftheother Party haveaccess freeofdiscrimination inrelation toitsownnationals tothecompetent
courts andadministrative organs oftheParties todefend theirindividual rights andtheirproperty rights,
including those concerning intellectual, industrial andcommercial property.
Article 41
Nothing inthisAgreement shallprevent aParty from taking anymeasures:
(a) which itconsiders necessary toprevent thedisclosure ofinformation contrary toits
essential security interests;
(b) which relate totheproduction of,ortrade in,arms, ammunition orwarmaterials or
toresearch, development orproduction indispensable fordefence purposes, provided
thatsuchmeasures donotimpair theconditions ofcompetition inrespect ofproducts
notintended forspecifically military purposes;
(c) which itconsiders essential toitsownsecurity intheevent ofserious internal
disturbances affecting themaintenance oflawandorder, intimeofwarorserious
international tension constituting threat ofwarorinorder tocarry outobligations it
hasaccepted forthepurpose ofmaintaining peace andinternational security;
(d) which itconsiders necessary torespect itsinternational obligations andcommitments
onthecontrol ofdualuseindustrial goods andtechnologies.
Article 42
InthefieldscoveredbythisAgreementandwithoutprejudicetoanyspecialprovisionscontained
therein:
- thearrangements applied byEstonia inrespect oftheCommunity shallnotgiverise
toanydiscrimination between theMember States, theirnationals, ortheircompanies
orfirms,
- thearrangements applied bytheCommunity inrespect ofEstonia shallnotgiverise
toanydiscrimination between Estonia nationals oritscompanies orfirms.
Article 43
Products originating inEstonia shallnotenjoy more favourable treatment when imported into
theCommunity thanthatapplied byMember States among themselves.
Article 44
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallseetoitthattheobjectives setoutinthisAgreement areattained.WT/REG8/1
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2. Ifeither Party considers thattheother Party hasfailed tofulfil anobligation under this
Agreement, itmaytakeappropriate measures. Before sodoing, except incases ofspecial urgency,
itshallsupply theJointCommittee withallrelevant information required forathorough examination
ofthesituation withaviewtoseeking asolution acceptable totheParties.
Intheselection ofmeasures, priority mustbegiven tothose which leastdisturb thefunctioning
oftheAgreement. These measures shallbenotified immediately totheJoint Committee andshall
bethesubject oftheconsultations within theJoint Committee iftheother Party sorequests.
Article 45
Protocols 1,2,3,4,5and6andAnnexes ItoVIshallformanintegral partofthisAgreement.
Article 46
ThisAgreement isconcluded foranunlimited period.
Either Party maydenounce thisAgreement bynotifying theother Party. ThisAgreement shall
cease toapply sixmonths afterthedateofsuchnotification.
Article 47
ThisAgreement shallapply, ontheonehand, totheterritories inwhich theTreaties establishing
theEuropean Community, theEuropean Atomic Energy Community andtheEuropean CoalandSteel
Community areapplied andunder theconditions laiddown inthose Treaties and,ontheother hand,
totheterritory oftheRepublic ofEstonia.
Article 48
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,German,Greek,
Italian, Portuguese, Spanish andEstonian languages, eachofthese textsbeing equally authentic.
Article 49
ThisAgreement willbeapproved bytheParties inaccordance withtheirownprocedures.
ThisAgreement shallenter intoforce afterapproval bytheParties on1January 1995.
Should thisAgreement notbeapproved induetimebefore 1January 1995, itshallenter into
force onthefirstdayofthemonth following approval bybothParties.
TheParties shallforthwith notify eachother thecompletion oftheirapproval procedures.
Upon itsentryintoforce, theAgreement onTrade andEconomic andCommercial Cooperation
signed between theEuropean Economic Community andEstonia inBrussels on11May1992 shall
bemodified asfollows:
- Articles 3and5to12inclusive aswellasArticle 13(1)and(4)arerescinded,
- inArticle 4thewords 'trade andother'arerescinded,
- inArticle 13(2)thewords 'Infurtherance oftheaimsofthisArticle and'arerescinded.WT/REG8/1
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Article 50
1. Intheevent thatthisAgreement enters intoforce after1January buton31December 1995
atthelatest forthepurposes ofTitles IIandIIIofthisAgreement andProtocols 1,2,3,4,5and6
hereto, theterms 'dateofentry intoforce ofthisAgreement 'shallmean:
- thedateofentry intoforce inrelation toobligations taking effect onthatdate, and
- 1January 1995inrelation toobligations taking effect afterthedateofentry intoforce
byreference tothedateofentry intoforce.
2. Inthecaseofentry intoforce after1January 1995, theprovisions ofProtocol 6shallapply.