RESTRICTED
WORLD TRADE WT/REG9/1
12July1995
ORGANIZATION(95-1951)
Original:English/French/Spanish
FREE TRADE AGREEMENT BETWEEN
LITHUANIA AND THE EUROPEAN COMMUNITIES
Thefollowing textreproduces theFreeTrade Agreement1between Lithuania 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 OFLITHUANIA, OFTHE OTHER PART
TheEuropean Community, theEuropean Atomic Energy Community andtheEuropean Coal
andSteel Community,
hereinafter referred toas'theCommunity ',oftheonepart,
andtheRepublic ofLithuania,
hereinafter referred toas'Lithuania ';oftheother part,
Whereas theParties recall thehistorical linksbetween themandthecommon values theyshare;
whereas theywishtoreinforce theselinks, toestablish closeandlasting relations onabasisofreciprocity
allowing Lithuania toparticipate intheprocess ofEuropean integration, inreinforcing andfurther
developing therelations previously established, inparticular viathetradeandcooperation agreement;
Whereas thisAgreement contributes totheattainment ofassociation;
Whereas theParties arecommitted totheintensification ofpolitical andeconomic liberties
which constitute thebasis ofthenewtrade agreement andtothenecessary transition ofLithuania to
aneweconomic andpolitical system which respects -inaccordance interaliawiththeundertakings
made within thecontext oftheConference onSecurity andCooperation inEurope (CSCE) -therule
oflawandhuman rights, including therights ofpersons belonging tominorities, amultiparty system
withfreeanddemocratic elections andliberalization aimed atsetting upamarket economy;
Whereas theParties share theunderstanding thatLithuania hasmade considerable andsuccessful
reform efforts inthepolitical andeconomic fields andthatthese efforts willbepursued;
1TheAnnexes andProtocols thereto havebeensubmitted totheSecretariat forconsultations by
interested Members (Office 3006).WT/REG9/1
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 Energy
Charter, aswellastheprinciples oftheEuropean Convention onHuman Rights;
Whereas trade andtrade liberalization areimportant forstability inEurope onthebasis of
cooperation, ofwhich oneofthepillars istheEuropean Community;
Whereas there isaneedtocontinue, withtheCommunity 'shelp, Lithuania 'spolitical and
economic reform;
Whereas theCommunity wishes tocontribute totheimplementation ofthereform andtoassist
Lithuania infacing theeconomic andsocial consequences ofstructural adjustment;
Whereas fullimplementation oftheagreement islinked totheimplementation ofacoherent
programme ofeconomic andpolitical reform byLithuania;
Whereas theParties recognize theneedforregional cooperation among theBaltic States, taking
intoaccount thatcloser integration between theEuropean Union (EU) andtheBaltic States, andthe
Baltic 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 thefactthatLithuania 'sultimate objective istobecome amember
oftheEUandthatthesteptowards association through thisAgreement, intheviewoftheParties,
willhelpLithuania toachieve thisobjective;
Have decided toconclude thisAgreement andtothisendhave designated astheir
Plenipotentiaries,
TheEuropean Community andtheEuropean Atomic Energy Community:
TheEuropean CoalandSteel Community;
TheRepublic ofLithuania;
Who, having exchanged theirfullpowers, found ingood anddueform,
Have agreed asfollows:WT/REG9/1
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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 Lithuania andtheEuropean Community.
TITLE II
FreeMovement ofGoods
Article 2
1. TheCommunity andLithuania shallgradually establish afreeareainatransitional period lasting
amaximum ofsixyears starting fromtheentry intoforce ofthisAgreement, inaccordance withthe
provisions ofthisAgreement andinconformity withthose oftheGeneral Agreement onTariffs and
Trade (GATT).
2. Thecombined nomenclature ofgoods shallbeapplied totheclassification ofgoods intrade
between thetwoParties.
3. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbethatactually applied ergaomnes on1March 1994. Forproducts referred
toinchapters IIandIII,thebasic duties shallbethose setoutinAnnexes IItoVandXII,orthose
actually applied ergaomnes on1January 1995, whichever arethelower.
4. If,aftertheentry intoforceofthisAgreement, 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 andLithuania shallcommunicate toeachother theirrespective basic duties.WT/REG9/1
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CHAPTER I
Industrial Products
Article 3
1. Theprovisions ofthischapter shallapply toproducts originating intheCommunity andin
Lithuania listed inChapters 25to97ofthecombined nomenclature withtheexception oftheproducts
listed inAnnex I.
2. Theprovisions ofArticles 4to8inclusive donotapply toproducts mentioned inArticle 10.
3. Trade between theParties initems covered bytheTreaty establishing theEuropean Atomic
Energy Community willbeconducted inaccordance withtheprovisions ofthatTreaty.
Article 4
1. Customs duties onimports applicable intheCommunity toproducts originating inLithuania
shallbeabolished ontheentry intoforce ofthisAgreement.
2. Quantitative restrictions onimports totheCommunity andmeasures having anequivalent effect
shallbeabolished onthedateofentry intoforce ofthisAgreement withregard toproducts originating
inLithuania.
Article 5
1. Customs duties onimports applicable inLithuania toproducts originating intheCommunity
other thanthose listed inAnnexes II,IIIandIVshallbeabolished onthedateofentry intoforce of
thisAgreement.
2. Customs duties onimports applicable inLithuania toproducts originating intheCommunity
which arelisted inAnnex IIshallbeprogressively reduced inaccordance withthefollowing timetable:
- oneyearaftertheentry intoforce ofthisAgreement, eachdutyshallbereduced to
50%ofthebasic duty,
- twoyears aftertheentry intoforce ofthisAgreement, theremaining duties shallbe
eliminated.
3. Customs duties onimports applicable inLithuania toproducts originating intheCommunity
which arelisted inAnnex IIIshallbeprogressively reduced inaccordance withthefollowing timetable:
- three years aftertheentry intoforce ofthisAgreement, eachdutyshallbereduced
to50%ofthebasic duty,
- sixyears aftertheentry intoforce ofthisAgreement, theremaining duties shallbe
eliminated.
4. Customs duties onimports applicable inLithuania toproducts originating intheCommunity
which arelisted inAnnex IVshallbeabolished attheendofthesixthyearaftertheentry intoforce
ofthisAgreement.WT/REG9/1
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5. Quantitative restrictions onimports intoLithuania ofproducts originating intheCommunity
andmeasures having anequivalent effect shallbeabolished uponentry intoforce ofthisAgreement.
Article 6
Theprovisions concerning theabolition ofcustoms duties onimports shallalsoapply tocustoms
duties ofafiscal nature.
Article 7
TheCommunity andLithuania shallabolish upon entry intoforce ofthisAgreement intrade
between themselves, anycharges having aneffect equivalent tocustoms duties onimports.
Article 8
1. TheCommunity andLithuania shallprogressively abolish between them atthedateofentry
intoforce ofthisAgreement anycustoms duties onexports andcharges having equivalent effect except
those applied byLithuania toproducts listed inAnnex Vwhich shallbeeliminated sixyears afterthe
entry intoforce oftheAgreement atthelatest.
2. Quantitative restrictions onexports toLithuania andanymeasures having equivalent effect
shallbeabolished bytheCommunity upon entry intoforce ofthisAgreement.
3. Quantitative restrictions onexports totheCommunity andanymeasures having equivalent
effect shallbeabolished byLithuania upon entry intoforce ofthisAgreement.
Article 9
EachParty declares itsreadiness toreduce itscustoms duties intradewiththeother Party more
rapidly thanisprovided forinArticles 4and5ifitsgeneral economic situation andthesituation of
theeconomic sector concerned sopermit.
TheJointCommittee referred toinArticle 38(hereinafter referred toas'theJointCommittee ')
maymake recommendations tothiseffect.
Article 10
1. Thetextile products ofLithuanian origin listed inAnnex VItothisAgreement shallbenefit
fromasuspension ofcustoms duties onimports intotheCommunity, under theconditions setoutin
thatAnnex. TheAnnex mayberevised bydecision oftheJointCommittee, inaccordance withthe
procedures setoutinArticle 39.
2. Protocol1laysdowntheotherarrangementsapplicabletothetextileproductsreferredtotherein.
Article 11
1. Theprovisions ofthischapter donotpreclude theretention bytheCommunity ofanagricultural
component intheduties applicable toproducts listed inAnnex VIIinrespect ofproducts originating
inLithuania.WT/REG9/1
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2. Theprovisions ofthischapter donotpreclude theintroduction ofanagricultural component
byLithuaniainthedutiesapplicabletotheproductslistedinAnnexVIIIinrespectofproductsoriginating
intheCommunity.
CHAPTER II
Agriculture
Article 12
1. Theprovisions ofthischapter shallapply toagricultural products originating intheCommunity
andinLithuania.
2. Theterm'agricultural products 'means theproducts listed inChapter 1to24ofthecombined
nomenclature andtheproducts listed inAnnex I,butexcluding fishery products asdefined byRegulation
(EEC) No.3759/92.
Article 13
Protocol 2laysdown thetrade arrangements forprocessed agricultural products which are
listed therein.
Article 14
1. Asfromthedateofentry intoforce ofthisAgreement noquantitative restrictions shallapply
toimports intotheCommunity ofagricultural products originating inLithuania nortoimports into
Lithuania ofagricultural products originating intheCommunity.
2. TheCommunity andLithuania shallgrant eachother concessions referred toinAnnexes IX
toXIIIonaharmonious andreciprocal basis inaccordance withtheconditions laiddown therein.
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 inLithuania, oftheroleofagriculture inLithuania 'seconomy, theCommunity
andLithuania shallexamine intheJointCommittee, product byproduct andonanorderly andreciprocal
basis, thepossibilities ofgranting eachother further concessions.
Article 15
Notwithstanding other provisions ofthisAgreement, andinparticular Article 24,if,given
theparticular sensitivity oftheagricultural markets, imports ofproducts originating inoneParty, which
arethesubject ofconcessions granted pursuant toArticle 14,cause serious disturbance tothemarkets
intheotherParty, bothParties shallenterintoconsultations immediately tofindanappropriate solution.
Pending suchasolution, theParty concerned maytakethemeasures itdeems necessary.WT/REG9/1
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CHAPTER III
Fisheries
Article 16
Theprovisions ofthischapter shallapply tofishery products originating intheCommunity
andinLithuania which arecovered byRegulation (EEC) No.3759/92.
Article 17
1. TheCommunityandLithuaniashallgranteachothertheconcessionsreferredtoinAnnexesXIV
andXV,onaharmonious andreciprocal basis, inaccordance withtheconditions laiddown therein.
2. Theprovisions ofArticles 14(4)and15shallapply mutatis mutandis tofishery products.
CHAPTER IV
Common Provisions
Article 18
Theprovisions ofthisTitleshallapply totradeinallproducts except where otherwise provided
herein orinProtocols 1and2.
Article 19
1. Intrade between theCommunity andLithuania from thedateofentry intoforce ofthis
Agreement:
- 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. WithoutprejudicetotheconcessionsgrantedpursuanttoArticle14,theprovisionsofparagraph1
ofthisArticle shallnotrestrict inanywaythepursuance oftherespective agricultural policies of
Lithuania andtheCommunity orthetaking ofanymeasures under suchpolicies.
Article 20
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.WT/REG9/1
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Article 21
1. ThisAgreement shallnotpreclude themaintenance orestablishment ofcustoms unions, free
trade areas orarrangements forfrontier trade except insofarastheyalterthetrade arrangements
provided forinthisAgreement.
2. Consultations between theParties shall takeplace within theJoint Committee concerning
agreements establishing suchcustoms unions orfreetradeareas and,where requested, onother major
issues related totheirrespective tradepolicies withthirdcountries. Inparticular intheevent ofathird
country acceding totheCommunity, suchconsultations shalltakeplace soastoensure thataccount
canbetaken ofthemutual interests oftheCommunity andLithuania stated inthisAgreement.
Article 22
Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 5and
Article 19(1),firstindent, maybetaken byLithuania 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 inLithuania 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 threeyears unless alonger duration
isauthorized bytheJointCommittee. Theyshallcease toapply atthelatest onexpiry ofthetransitional
period.
Nosuchmeasures canbeintroduced inrespect ofaproduct ifmorethanthreeyears haveelapsed
sincetheeliminationofalldutiesandquantitativerestrictionsorchargesormeasureshavinganequivalent
effect concerning thatproduct.
Lithuania shallinform theJointCommittee ofanyexceptional measures itintends totakeand,
attherequest oftheCommunity, consultations shallbeheldintheJointCommittee onsuchmeasures
andthesectors towhich theyapply before theyareapplied. When taking suchmeasures Lithuania
shallprovide theJointCommittee withaschedule fortheelimination ofthecustoms duties introduced
pursuant tothisArticle. Thisschedule shallprovide foraphasing outofthese duties starting atthe
latest twoyears aftertheirintroduction atequal annual rates. TheJoint Committee maydecide on
adifferent schedule.
Article 23
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 27.WT/REG9/1
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Article 24
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
- serious injury todomestic producers oflikeordirectly competitive products inthe
territory ofoneoftheParties, or
- serious disturbances inanysector oftheeconomy ordifficulties which could bring
about serious deterioration intheeconomic situation ofaregion,
theCommunity orLithuania, whichever isconcerned, maytakeappropriate measures under
theconditions andinaccordance withtheprocedures laiddown inArticle 27.
Article 25
Where compliance withtheprovisions ofArticles 8and19leads 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
withtheprocedureslaiddowninArticle27.Themeasuresshallbenon-discriminatoryandbeeliminated
when conditions nolonger justify theirmaintenance.
Article 26
TheMember States oftheEuropean Union (hereinafter referred toas'theMember States ')
andLithuania 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 andofLithuania. TheJointCommittee willbeinformed about themeasures adopted
toimplement thisobjective.
Article 27
1. Intheevent oftheCommunity orLithuania subjecting imports ofproducts liable togiverise
tothedifficulties referred toinArticle 24toanadministrative procedure having asitspurpose the
rapid provision ofinformation onthetrend oftrade flows, itshallinform theother Party.
2. Inthecasesspecified inArticles 23,24and25,before taking themeasures provided fortherein
or,incases towhich paragraph 3(d)applies, assoonaspossible, theCommunity orLithuania, asthe
casemaybe,shallsupply theJoint Committee withallrelevant information withaviewtoseeking
asolution acceptable tothetwoParties.
Intheselection ofmeasures, priority mustbegiven tothose which leastdisturb thefunctioning
ofthisAgreement.WT/REG9/1
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Thesafeguard measures shallbenotified immediately totheJointCommittee andshallbethe
subject ofperiodic consultations within thatbody, particularly withaviewtoestablishing atimetable
fortheirabolition assoonascircumstances permit.
3. Fortheimplementation ofparagraph 2,thefollowing provisions shallapply:
(a) AsregardsArticle24,thedifficultiesarisingfromthesituationreferredtointhatArticle
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 23,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) Asregards Article 25,thedifficulties arising from thesituations referred tointhat
Article 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 orLithuania whichever
isconcerned may,inthesituations specified inArticles 23,24and25,apply forthwith
theprecautionary measures strictly necessary todealwiththesituation.
Article 28
Protocol 3laysdown rules oforigin fortheapplication ofthetariff preferences provided for
inthisAgreement aswellasthemethods ofadministrative cooperation therewith.
Article 29
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.WT/REG9/1
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Article 30
Protocol 4laysdown thespecific provisions toapply totrade between Lithuania oftheone
partandSpain andPortugal oftheother part,anditwillbevalid until31December 1995.
TITLE III
Payments, Competition andOther Economic Provisions
Article 31
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 32
Withreferencetotheprovisionsofthischapter,andnotwithstandingtheprovisionsofArticle33,
untilafullconvertibility oftheLithuanian currency inthemeaning ofArticle VIIIoftheArticles of
Agreement ontheInternational Monetary Fund (IMF) isintroduced, Lithuania mayinexceptional
circumstances apply exchange restrictions connected withthegranting ortaking upofshort and
medium-term credits totheextent thatsuchrestrictions areimposed onLithuania forthegranting of
suchcredits andarepermitted according toLithuania 'sstatus under theIMF.
Lithuania shallapply these restrictions inanon-discriminatory manner. They shallbeapplied
insuchamanner astocause theleastpossible disruption tothisAgreement. Lithuania shallinform
theJoint Committee promptly oftheintroduction ofsuchmeasures andofanychanges therein.
Article 33
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement, insofaras
theyaffect trade between theCommunity andLithuania:
(i) allagreements between undertakings, decisions byassociations ofundertaking and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;
(ii) abuse byoneormore undertakings ofadominant position intheterritories ofthe
Community orofLithuania 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 three years oftheentry intoforce ofthisAgreement, adopt
bydecision thenecessary rules fortheimplementation ofparagraphs 1and2.WT/REG9/1
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Untiltheserulesareadopted, theprovisions ofthisAgreement oninterpretation andapplication
ofArticles VI,XVIandXXIII oftheGeneral Agreement onTariffs andTrade shallbeapplied
astherulesfortheimplementation ofparagraphs 1point (iii)andrelated partsofparagraph 2.
4. (a) Forthepurposes ofapplying theprovisions ofparagraph 1point (iii),theParties
recognize thatduring thefirstfiveyears aftertheentry intoforce ofthisAgreement,
anypublic aidgranted byLithuania shallbeassessed taking intoaccount thefactthat
Lithuania shall beregarded asanareaidentical tothose areas oftheCommunity
described inArticle 92(3)oftheTreaty establishing theEuropean Community. The
JointCommittee shall, taking intoaccount theeconomic situation ofLithuania, decide
whether thatperiod should beextended byfurther periods offiveyears.
(b) EachParty 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 toinChapter 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 orLithuania considers thataparticular practice isincompatible withthe
terms 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.WT/REG9/1
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Article 34
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.
2. Where oneormore Member States orLithuania isinserious balance ofpayments difficulties,
orunder imminent threat thereof, theCommunity orLithuania, 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 orLithuania,
asthecasemaybe,shallinform theother Party forthwith.
Article 35
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
ConferenceonSecurityandCooperationinEurope(CSCE),notablyentrepreneurs'freedomofdecision,
areupheld.
Article 36
1. TheParties commit themselves todeveloping customs cooperation inorder toachieve the
approximation ofLithuania 'scustoms system tothatoftheCommunity.
2. Cooperation shallinclude thefollowing inparticular:
- theexchange ofinformation,
- theorganization ofseminars andplacements,
- theintroduction ofthesingle administrative document andtheinterconnection between
thetransit system oftheCommunity andthatofLithuania,
- thesimplification oftheinspections andformalities inrespect ofthecarriage ofgoods,
- exchange ofinformation onthemethods ofinvestigation.
Technical assistance shallbeprovided where appropriate andrequired.
3. TheParties willprovide mutual administrative assistance inaccordance withtheprovisions
ofProtocol 5.WT/REG9/1
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Article 37
1. TheParties recognize thatanimportant condition fortheestablishment offreetrade between
Lithuania andtheCommunity andthefurther economic integration oftheformer intotheCommunity
istheapproximation ofLithuania 'sexisting andfuture legislation tothatoftheCommunity. Lithuania
shallendeavour toensure thatitstradeandtrade-related legislation willbegradually made compatible
withthatoftheCommunity.
2. Theapproximation oflawsshallextend totrade-related matters, inparticular dumping, rules
oncompetition, customs legislation, technical rules andstandards.
3. TheCommunity shallprovide Lithuania withtechnical assistance fortheimplementation of
these 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 38
TheJoint Committee setupbytheAgreement onTrade andCommercial andEconomic
Cooperation signed between theEuropean Economic Community andLithuania on11May1992shall
perform theduties assigned toitbythisAgreement.
Article 39
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 40
1. EachofthetwoParties mayrefertotheJointCommittee anydispute relating totheapplication
orinterpretation ofthisAgreement.
2. TheJoint Committee maysettle thedispute bymeans ofadecision.WT/REG9/1
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3. Each Party 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 mustthenappoint a
second arbitrator within twomonths.
TheJoint Committee shallappoint athirdarbitrator.
Thearbitrator 'sdecisions shallbetaken bymajority vote.
EachPartytothedisputemusttakethestepsrequiredtoimplementthedecisionofthearbitrators.
Article 41
Within thescope ofthisAgreement, eachParty undertakes toensure thatnatural andlegal
persons oftheother Party haveaccess freeofdiscrimination inrelation toitsownnationals tothe
competent courts andadministrative organs oftheParties todefend theirindividual rights andtheir
property rights, including those concerning intellectual, industrial andcommercial property.
Article 42
Nothing inthisAgreement shallprevent aContracting Party 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 43
InthefieldscoveredbythisAgreementandwithoutprejudicetoanyspecialprovisionscontained
therein:
- thearrangements applied byLithuania inrespect oftheCommunity shallnotgiverise
toanydiscrimination between theMember States, theirnationals, ortheircompanies
orfirms,
- thearrangements applied bytheCommunity inrespect ofLithuania shallnotgiverise
toanydiscrimination between Lithuanian nationals oritscompanies orfirms.WT/REG9/1
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Article 44
Products originating inLithuania shallnotenjoy more favourable treatment when imported
intotheCommunity thanthatapplied byMember States among themselves.
Article 45
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallseetoitthattheobjectives setoutinthisAgreement areattained.
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 46
Protocols 1,2,3,4,5and6andAnnexes ItoXVshallformanintegral partofthisAgreement.
Article 47
ThisAgreement isconcluded foranunlimited period.
Either Party maydenounce thisAgreement bynotifying theother Party. ThisAgreement shall
cease toapply sixmonths afterthedateofsuchnotification.
Article 48
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 ofLithuania.
Article 49
TheSecretariat-General oftheCouncil oftheEuropean Union shallbethedepository ofthis
Agreement.
Article 50
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,German,Greek,
Italian, Portuguese, Spanish andLithuanian languages, eachofthese textsbeing equally authentic.WT/REG9/1
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Article 51
ThisAgreement willbeapproved bytheParties inaccordance withtheirownprocedures.
ThisAgreement shallenter intoforce afterapproval bytheParties on1January 1995.
Upon itsentry intoforce, theAgreement between theEuropean Economic Community, the
European Atomic Energy Community andLithuania ontradeandeconomic andcommercial cooperation
signed inBrussels on11May1992 shallbemodified asfollows:
- Articles 3and5to12inclusive aswellasArticle 13(1)and(4)arerescinded,
- inArticle 4thewords 'trade andother'arerescinded,
- inArticle 13(2)'Infurtherance oftheaimsofthisArticle and'arerescinded.
Article 52
1. Intheevent thatthisAgreement enters intoforce after 1January butatthelatest on
31December 1995 forthepurposes ofTitles IIandIIIofthisAgreement andProtocols 1,2,3,4,
5and6hereto, theterm'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.