RESTRICTED
WORLD TRADE WT/REG7/1
12July1995
ORGANIZATION(95-1949)
Original:English/French/Spanish
FREE TRADE AGREEMENT BETWEEN
LATVIA AND THE EUROPEAN COMMUNITIES
Thefollowing textreproduces theFreeTrade Agreement1between Latvia 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 OFLATVIA, OFTHE OTHER PART
TheEuropean Community, theEuropean Atomic Energy Community andtheEuropean Coal
andSteel Community,
hereinafter referred toas'theCommunity ',oftheonepart,
andtheRepublic ofLatvia,
hereinafter referred toas'Latvia ';oftheother part,
Whereas theParties recall thehistorical linksbetween themandthecommon values theyshare;
whereas theywishtoreinforce theselinks, toestablish closeandlasting relations onabasisofreciprocity
allowingLatviatoparticipateintheprocessofEuropeanintegration,inreinforcingandfurtherdeveloping
therelations previously established, inparticular viathetrade andcooperation agreement;
Whereas thisAgreement contributes totheattainment oftheobjective ofassociation;
Whereas theParties arecommitted totheintensification ofpolitical andeconomic liberties
which constitute thebasis ofthenewtrade agreement andtonecessary transition ofLatvia toanew
economic andpolitical system which respects -inaccordance interaliawiththeundertakings made
within thecontext oftheConference onSecurity andCooperation inEurope (CSCE) -theruleoflaw
andhuman rights, including therights ofpersons belonging tominorities, amultiparty system with
freeanddemocratic elections andliberalization aimed atsetting upamarket economy;
Whereas theParties share theunderstanding thatLatvia hasmade considerable andsuccessful
reform efforts inthepolitical andeconomic fields andthatthese efforts willbepursued;
1TheAnnexes andProtocols thereto havebeensubmitted totheSecretariat forconsultations by
interested Members (Office 3006).WT/REG7/1
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 isimportant forthecreation ofasystem ofstability inEurope onthebasis of
cooperation, ofwhich oneofthepillars istheEuropean Community;
Whereas thereisaneedtocontinue, withtheCommunity 'shelp,Latvia 'spolitical andeconomic
reform;
Whereas theCommunity wishes tocontribute totheimplementation ofthereform andtoassist
Latvia infacing theeconomic andsocial consequences ofstructural adjustment;
Whereas fullimplementation oftheAgreement islinked totheimplementation ofacoherent
programme ofeconomic andpolitical reform byLatvia;
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 them andabove allforthedevelopment oftrade andtrade-related matters andinvestment,
which areessential toeconomic restructuring andtherenewal oftechnology;
Whereas itisimportant thatpolitical dialogue between theParties should beenhanced;
Whereas theParties recognize thefactthatLatvia 'sultimate objective istobecome amember
oftheEUandthatthesteptowards association through thisAgreement, intheviewoftheParties,
willhelpLatvia toachieve thisobjective;
Have decided toconclude thisAgreement andtothisendhave designated astheir
Plenipotentiaries,
TheEuropean Community andtheEuropean Atomic Energy Community:
TheEuropean CoalandSteel Community;
TheRepublic ofLatvia;
Who, having exchanged theirfullpowers, found ingood anddueform,
Have agreed asfollows:WT/REG7/1
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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 Latvia andtheEuropean Community.
TITLE II
FreeMovement ofGoods
Article 2
1. TheCommunity andLatvia shallgradually establish afreeareainatransitional period lasting
amaximum offouryears starting fromtheentry intoforce ofthisAgreement, inaccordance withthe
provisions ofthisAgreement andinconformity withthose oftheGeneral Agreement onTariffs and
Trade (GATT).
2. Thecombined nomenclature ofgoods based ontheHarmonized System shallbeapplied to
theclassification ofgoods intrade between thetwoParties.
3. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbesetoutinAnnexes IItoIVandX,orthatactually applied ergaomnes on
1January 1995, whichever isthelower.
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 andLatvia shallcommunicate toeachother theirrespective basic duties.WT/REG7/1
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CHAPTER I
Industrial Products
Article 3
1. Theprovisions ofthischapter shallapply toproducts originating intheCommunity andin
Latvia 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 inLatvia shall
beabolished ontheentry intoforce ofthisAgreement.
2. Quantitative restrictions onimports totheCommunity andmeasures having anequivalent effect
shallbeabolished onthedateofentry intoforce ofthisAgreement withregard toproducts originating
inLatvia.
Article 5
1. Customs duties onimports applicable inLatvia toproducts originating intheCommunity other
thanthose listed inAnnexes IIandIIIshall beabolished onthedateofentry intoforce ofthis
Agreement.
2. Customs duties onimports applicable inLatvia 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 inLatvia toproducts originating intheCommunity which
arelisted inAnnex IIIshallbeprogressively reduced inaccordance withthefollowing timetable:
- twoyears aftertheentry intoforce ofthisAgreement, eachdutyshallbereduced to
50%ofthebasic duty,
- fouryears aftertheentry intoforce ofthisAgreement, theremaining duties shallbe
eliminated.
4. Quantitative restrictions onimports intoLatvia ofproducts originating intheCommunity and
measures having anequivalent effect shallbeabolished upon entry intoforce ofthisAgreement.WT/REG7/1
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Article 6
Theprovisions concerning theabolition ofcustoms duties onimports shallalsoapply tocustoms
duties ofafiscal nature.
Article 7
TheCommunityandLatviashallabolishuponentryintoforceofthisAgreementintradebetween
themselves, anycharges having aneffect equivalent tocustoms duties onimports.
Article 8
1. Customs duties onexports andcharges having equivalent effect shallbeabolished between
theCommunity andLatvia uponentry intoforce ofthisAgreement, withtheexception ofthose listed
inAnnex IV,which shallbeabolished byLatvia atthelatest bytheendofthefourth yearafterthe
entry intoforce ofthisAgreement.
2. Quantitative restrictions onexports toLatvia andanymeasures having equivalent effect shall
beabolished bytheCommunity upon entry intoforce ofthisAgreement.
3. Quantitative restrictions onexports totheCommunity andanymeasures having equivalent
effect shallbeabolished byLatvia 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 37(hereinafter referred toas'theJointCommittee ')
maymake recommendations tothiseffect.
Article 10
1. Thetextile products ofLatvian origin listed inAnnex VtothisAgreement shallbenefit from
asuspension ofcustoms duties onimports intotheCommunity, under theconditions setoutinthat
Annex. TheAnnex mayberevised bydecision oftheJoint Committee, inaccordance withthe
procedures setoutinArticle 38.
2. Protocol1laysdowntheotherarrangementsapplicabletothetextileproductsreferredtotherein.
Article 11
1. Theprovisions ofthischapter donotpreclude theretention bytheCommunity ofanagricultural
component intheduties applicable toproducts listed inAnnex VIinrespect ofproducts originating
inLatvia.
2. Theprovisions ofthischapter donotpreclude theintroduction ofanagricultural component
byLatvia intheduties applicable totheproducts listed inAnnex VIinrespect ofproducts originating
intheCommunity.WT/REG7/1
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CHAPTER II
Agriculture
Article 12
1. Theprovisions ofthischapter shallapply toagricultural products originating intheCommunity
andinLatvia.
2. Theterm'agricultural products 'means theproducts listed inChapter 1to24ofthecombined
nomenclature andtheproducts listed inAnnex I,butexcluding fishery products asdefined by
Article 16(2).
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 inLatvia nortoimports intoLatvia
ofagricultural products originating intheCommunity.
2. TheCommunity andLatvia shallgrant eachother concessions referred toinAnnexes VIIto
XIinaccordance 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 inLatvia, oftheroleofagriculture inLatvia 'seconomy, oftheproduction and
export potential ofitstraditional branches 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/REG7/1
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CHAPTER III
Fisheries
Article 16
1. Theprovisions ofthischapter shallapply tofishery products originating intheCommunity
andinLatvia.
2. Theterm'fisheryproducts'meanstheproductslistedinChapter3ofthecombinednomenclature
andproduct groups covered bythecombined nomenclature codes 05119110,05119190,1604, 1605,
1902 2010and2301 2000.
Article 17
1. TheCommunity andLatvia shallgrant eachother theconcessions referred toinAnnexes XII
andXIIIinaccordance 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. Intradebetween theCommunity andLatvia fromthedateofentry intoforceofthisAgreement:
- 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 andfisheries
policies ofLatvia 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/REG7/1
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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 andLatvia stated inthisAgreement.
Article 22
Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 5and
Article 19(1),firstindent, maybetaken byLatvia 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 inLatvia 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 bytheJointCommittee. Theyshallcease toapply atthelatest onexpiry ofthetransitional
period.
Nosuchmeasures canbeintroduced inrespect ofaproduct ifmorethanthreeyears haveelapsed
sincetheeliminationofalldutiesandquantitativerestrictionsorchargesormeasureshavinganequivalent
effect concerning thatproduct.
Latvia shallinform theJointCommittee ofanyexceptional measures itintends totakeand,
attherequest oftheCommunity, consultations shallbeheldintheJointCommittee onsuchmeasures
andthesectors towhich theyapply before theyareapplied. When taking suchmeasures Latvia shall
provide theJointCommittee withaschedule fortheelimination ofthecustoms duties introduced under
thisArticle. Thisschedule shallprovide foraphasing outoftheseduties starting atthelatest twoyears
aftertheirintroduction atequal annual rates. TheJointCommittee maydecide onadifferent 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/REG7/1
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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 orLatvia, whichever isconcerned, maytakeappropriate measures under the
conditions 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 ')
andLatvia 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 andofLatvia. TheJointCommittee willbeinformed about themeasures adopted
toimplement thisobjective.
Article 27
1. Intheevent oftheCommunity orLatvia subjecting imports ofproducts liable togiveriseto
thedifficulties referred toinArticle 24toanadministrative procedure having asitspurpose therapid
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 orLatvia, asthe
casemaybe,shallsupply theJoint Committee withallrelevant information withaviewtoseeking
asolution acceptable tothetwoParties.
Intheselection ofmeasures, priority mustbegiven tothose which leastdisturb thefunctioning
ofthisAgreement.WT/REG7/1
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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 orLatvia 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/REG7/1
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Article 30
Protocol 4laysdown thespecific provisions toapply totrade between Latvia oftheonepart
andSpain 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
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement, insofaras
theymayaffect trade between theCommunity andLatvia:
(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 orofLatvia 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.
4. (a) Forthepurposes ofapplying theprovisions ofparagraph 1point (iii),theParties
recognize thatduring thefirstfiveyears aftertheentry intoforce ofthisAgreement,
anypublic aidgranted byLatvia shallberegarded asanareaidentical tothose areas
oftheCommunity described inArticle 92(3)(a)oftheTreaty establishing theEuropean
Community. TheJointCommittee shall, taking intoaccount theeconomic situation
ofLatvia, decide whether thatperiod should beextended byfurther periods of
fiveyears.WT/REG7/1
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(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 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 orLatvia 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.
2. Where oneormore Member States orLatvia isinserious balance ofpayments difficulties,
orunder imminent threat thereof, theCommunity orLatvia, 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 orLatvia,
asthecasemaybe,shallinform theother Party forthwith.WT/REG7/1
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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,andtherelevant CSCE principles, inparticular entrepreneurs 'freedom ofdecision, are
upheld.
Article 35
1. TheParties commit themselves todeveloping customs cooperation inorder toachieve the
approximation ofLatvia 'scustoms system tothatoftheCommunity.
2. Cooperation shallinclude thefollowing inparticular:
- theexchange ofinformation,
- theorganization ofseminars andplacements,
- theintroduction ofthesingle administrative document andtheinterconnection between
thetransit system oftheCommunity andthatofLatvia,
- 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.
Article 36
1. TheParties recognize thatanimportant condition fortheestablishment offreetrade between
Latvia andtheCommunity andthefurther economic integration oftheformer intotheCommunity
istheapproximation ofLatvia 'sexisting andfuture legislation tothatoftheCommunity. Latvia shall
endeavour toensure thatitstradeandtrade-related legislation willbegradually made compatible with
thatoftheCommunity.
2. Theapproximation oflawsshallextend totrade-related matters, inparticular dumping, rules
oncompetition, customs legislation, statistics, technical rules andstandards.
3. TheCommunity shallprovide Latvia withtechnical assistance fortheimplementation ofthese
measures, which mayinclude interalia:
- theexchange ofexperts,
- theprovision ofearly information especially onrelevant legislation,
- organization ofseminars,
- training activities,WT/REG7/1
Page14
- aidforthetranslation oflegislation intherelevant sectors,
- aidforimproving customs procedures andstatistics,
- aidfortrade-related legislation inthecontext ofapproximation ofLatvia 'slegislation
toEuropean Union laws.
TITLE IV
Institutional, General andFinal Provisions
Article 37
TheJoint Committee setupbytheAgreement onTrade andCommercial andEconomic
Cooperation signed between theEuropean Economic Community andLatvia 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 byconsensus.
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 mustthenappoint a
second arbitrator within twomonths.
TheJoint Committee shallappoint athirdarbitrator.
Thearbitrators 'decisions shallbetaken bymajority vote.
EachPartytothedisputemusttakethestepsrequiredtoimplementthedecisionofthearbitrators.WT/REG7/1
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Article 40
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 41
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 42
InthefieldscoveredbythisAgreementandwithoutprejudicetoanyspecialprovisionscontained
therein:
- thearrangements applied byLatvia inrespect oftheCommunity shallnotgiverise
toanydiscrimination between theMember States, theirnationals, ortheircompanies
orfirms,
- thearrangements applied bytheCommunity inrespect ofLatvia shallnotgiverise
toanydiscrimination between Latvian nationals oritscompanies orfirms.
Article 43
Products originating inLatvia 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/REG7/1
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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 ItoXIIIshallformanintegral 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 ofLatvia.
Article 48
TheSecretariat-General oftheCouncil oftheEuropean Union shallbethedepository ofthis
Agreement.
Article 49
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,German,Greek,
Italian, Portuguese, Spanish andLatvian languages, eachofthese textsbeing equally authentic.
Article 50
ThisAgreement willbeapproved bytheParties inaccordance withtheirownprocedures.
ThisAgreement shallenter intoforce afterapproval bytheParties on1January 1995.
Upon itsentry intoforce, theAgreement between theEuropean Economic Community and
Latvia ontrade andeconomic andcommercial cooperation signed 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/REG7/1
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Article 51
1. Intheevent thatthisAgreement enters intoforce after 1January butatthelatest on
31December 1995 forthepurposes ofTitles IIandIIIofthisAgreement andProtocols 1,2,3,4,
5and6hereto, 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.