RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG32/6
12 November 1998
(98-4467)
Committee on Regional Trade Agreements Original:  English
INTERIM AGREEMENT BETWEEN SLOVENIA AND
THE EUROPEAN COMMUNITIES
Questions and Replies
This document reproduces additional questions addressed to the Parties and the joint
responses provided by them.  The questions and replies are organised in accordance with documents
WT/REG/32/2 a nd WT/REG/32/4.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
4. Trade Data
According to the Standard Format for Information on Regional Trade Agreements
(WT/REG/W/6), data on intra and extra-trade sh ould be made available.  In this regard, we
have asked for an assessment of the trade creation and trade diversion effects of the Agreement
and would hope that answers to such questions wi ll be provided in good faith.  In particular, we
are interested in the data on trade with thir d countries, according to the major products,
starting from the years prior to the Agreement through to the most recent period.
No studies have been undertaken of the trade creation and trade diversion effects of the
Agreement.  The attached Statistical Annex provides additional statistical data on trade flows between
the Parties and on EU trade with third countries.
II. TRADE PROVISIONS
1. Import Restrictions
In document WT/REG/32/2, the Parties stated that they have abolished all quantitative
import restrictions.  However, we understand that there remain import quotas.  In this context,
we would like to request more detailed information on the operation of any remaining
preferential import quotas in favour of the Parties.
Under the Agreement, all quantitative import restrictions on trade between the Parties were
abolished at the latest by 1 January 1998.  A number of tariff quotas apply to imports of certainagricultural and fisheries products.  (The specific tariff concessions concerned are identified in
Annexes VI, VII, VIII(a) and VIII(b) and in Protocol 3.)WT/REG32/6
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Have the Parties introduced any new quantitative restrictions or preferential import
quotas on the formation of the free-trade area?
No.
3. Rules of Origin
We would appreciate receiving further details on the operation of the pan-European
system of cumulation of origin.
Further information on the system of cumulation was presented to the CRTA at its meeting on
23 September 1998, under a specific agenda item for that purpose.
7. Subsidies and State-aid
Could the Parties explain the rationale for exempting trade in agriculture and fisheries
from the provisions on subsidies and state aids?  Do other rules apply in these sectors?
This exemption reflects the policy objectives and principles followed by the EC and Slovenia
in their respective agricultural and fisheries policies.  For the EC, the principles of the Common
Agricultural Policy, set out in the Treaty of Rome, may necessitate derogation from normal EC
competition rules in order to ensure their achiev ement.  (For information, the CAP principles are
increase of agricultural productivity; fair standard of living for the agricultural community; guarantee
of food supplies; stabilisation of markets and provision of consumers with reliable food supplies at
reasonable prices.)
8. Sector-specific Provisions
(a) Textiles
Do the Parties retain the right to impose qua ntitative limits for trade in textiles?  Are
any quantitative limits in place at the moment?
There are no quantitative limits for trade in textiles in place at the moment and the Parties do
not have the right to impose new limits under the Agreement.
(c) Agricultural, processed agricultural and fishery products
Is Slovenia’s share of the former global tariff quota granted to Yugoslavia for wine duty
free?  If not, what is the in-quota tariff rate?  What is the out-of-quota tariff rate?
The global tariff quota of 545,000 hl previously allocated to the former Yugoslavia remains in
effect.  The tariff quota is operated on a first-come, first-served basis.  The in-quota rate is duty-free;
the current out-of-quota rate (for the period 1 July 1998 – 31 December 1998) is the conventionalbound duty of 34.7 ECU per hectolitre.  No agreement between the Parties has yet been reached on a
specific duty-free tariff quota for Slovenia.
The Parties say in WT/REG32/4 that full liberalisation in processed agricultural
products “is not immediately foreseen”.  What is the timetable for full liberalisation?
The Agreement provides for consultations between the Parties on the scope for further
concessions, including on processed agricultural products.   In this context, it should be noted that theWT/REG32/6
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eventual accession of Slovenia to the European Union, negotiations for which are underway, will
result in full liberalisation of trade in these products.
Could the Parties reply to the question already asked on whether substantial barriers to
trade in agriculture and fisheries will remain by 1 January 2003?  If so, can the Partiescomment on how the provisions on agriculture a nd fisheries would be compatible with the
requirement of Article XXIV:8(b)?
Quantitative import restrictions on agricultural products, and measures having equivalent
effect, were abolished on trade between the Parties from the date of entry into force of the Agreement
(1 January 1997).  Specific tariff concessions applicable to trade in agricultural and fisheries products
are identified in Annexes VI, VII, VIII(a) and VIII(b) and in Protocol 3.  The Agreement provides theParties with a regular opportunity to examine the scope for further concessions.  Moreover, the
provisions of the Agreement are liable to be overtaken in the medium term by the completion of
negotiations for the accession of Slovenia to the EU.
The Parties have already expressed their firm opinion that the Agreement is consistent with
the provisions of Article XXIV:8(b) as duties and other restrictive regulations of commerce will be
eliminated on substantially all the trade between the Parties.WT/REG32/6
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STATISTICAL ANNEX
EC/Slovenia:  Interim Agreement
Additional Trade Data
Note:    The following tables show the development of trade between the EU and Slovenia over the
period 1993-97.  For ease of comparison, figures are also given for the development of EC trade with
third countries.
Table 1
SHARE OF SLOVENIA IN TOTAL EU TRADE 1993-97 (Billion ECU)
Year Extra-EU Slovenia
Exports Imports Total Exports Imports Total
1993 409.1 445.8 854.9 2.6 2.5 5.1
1994 453.5 489.6 943.1 3.2 3.1 6.31995 476.8 491.8 968.6 4.6 3.9 8.51996 523.5 522.8 1046.3 4.8 4 8.81997 608.2 604.3 1212.5 5.9 4.4 10.3
Table 2
SHARE OF SLOVENIA IN TOTAL EU TRADE 1993-97 (%)
Year Extra-EU Slovenia
Exports Imports Total Exports Imports Total
1993 47.85% 52.15% 100.00% 0.30% 0.29% 0.60%
1994 48.09% 51.91% 100.00% 0.34% 0.33% 0.67%
1995 49.23% 50.77% 100.00% 0.47% 0.40% 0.88%
1996 50.03% 49.97% 100.00% 0.46% 0.38% 0.84%1997 50.16% 49.84% 100.00% 0.49% 0.36% 0.85%
Source:  Eurostat COMEXTWT/REG32/6
Page 5Table 3:  EU Exports to Extra-EU  and Slovenia 1993-97 by HS Section
EU EXPORTS TO EXTRA-EU EU EXPORTS TO SLOVENIA
EU TRADE BY HS SECTION MECU 1993 = 100 97 %
shareMECU 1993 = 100 97 %
share
HS Section 1993 1994 1995 1996 1997 1994 1995 1996 1997 1993 1994 1995 1996 1997 1994 1995 1996 1997
I      animals & animal products 8,401 8,933 9,652 9,768 10,564 106 115 116 126 2% 22 38 39 26 38 173 177 118 173 1%
II     vegetable products 8,406 8,386 7,917 8,311 9,341 100 94 99 111 2% 45 64 83 97 105 142 184 216 233 2%
III    animal or vegetable fats 1,375 1,628 2,098 1,906 2,250 118 153 139 164 0% 3 5 13 6 18 167 433 200 600 0%
IV    prepared foodstuffs 17,212 18,663 18,157 19,371 22,174 108 105 113 129 4% 82 97 154 163 163 118 188 199 199 3%
V    mineral products 16,503 17,565 14,534 16,393 18,550 106 88 99 112 3% 43 69 78 114 155 160 181 265 360 3%
VI   chemical products 47,774 53,168 53,654 60,026 71,897 111 112 126 150 12% 192 228 379 358 459 119 197 186 239 8%
VII   plastics & rubber 17,426 19,898 19,775 21,327 25,658 114 113 122 147 4% 122 161 294 330 401 132 241 270 329 7%
VIII  hides & skins 4,361 5,361 5,709 6,721 6,911 123 131 154 158 1% 44 46 57 53 53 105 130 120 120 1%
IX    wood & wood products 2,117 2,535 3,681 3,990 4,862 120 174 188 230 1% 24 31 74 67 88 129 308 279 367 2%
X    wood pulp products 10,751 12,156 17,517 17,625 19,484 113 163 164 181 3% 69 87 208 186 198 126 301 270 287 3%
XI   textiles & textile articles 22,271 25,109 23,544 25,549 28,724 113 106 115 129 5% 178 219 302 332 386 123 170 187 217 7%
XII  footwear, headgear 4,522 5,309 5,003 5,611 5,938 117 111 124 131 1% 36 40 56 62 65 111 156 172 181 1%
XIII  articles of st one, plaster, cement, asbestos 8,541 9,673 9,932 10,725 12,293 113 116 126 144 2% 46 67 101 118 145 146 220 257 315 2%
XIV pearls, precious or semiprecious stones, metals 13,856 15,044 14,893 16,308 18,643 109 107 118 135 3% 4 4 5 3 12 100 125 75 300 0%
XV  base metals & articles thereof 32,610 35,323 35,522 38,191 42,755 108 109 117 131 7% 194 255 445 447 581 131 229 230 299 10%
XVI machinery & mechanical applicances 117,424 131,391 146,566 165,167 191,376 112 125 141 163 31% 556 680 1,038 1,088 1,386 122 187 196 249 24%
XVII transportation equipment 40,752 44,936 48,471 53,548 66,229 110 119 131 163 11% 488 579 726 726 846 119 149 149 173 14%
XVIII instruments - measuring, musical 16,481 17,861 18,696 20,414 23,977 108 113 124 145 4% 54 65 114 112 133 120 211 207 246 2%
XIX  arms & ammunition 756 741 774 1,018 1,249 98 102 135 165 0% 0 1 1 0 0 0%
XX   miscellaneous 9,999 11,368 11,968 12,838 14,576 114 120 128 146 2% 57 84 146 182 243 147 256 319 426 4%
XXI  works of art 2,159 2,360 2,380 2,204 2,816 109 110 102 130 0% 1 0 1 1 0 0 100 100 0 0%
Others (outside HS 01-97) 5,452 6,058 6,315 6,481 7,908 111 116 119 145 1% 336 362 307 352 377 108 91 105 112 6%
TOTAL 409,149 453,466 476,758 523,492 608,175 111 117 128 149 100% 2,596 3,182 4,621 4,823 5,852 123 178 186 225 100%
Note:    1993-95 EU 12,  1996-97 EU 15
Source:  Eurostat COMEXTWT/REG32/6
Page 6 Table 4:   EU Imports from Extra-EU and Slovenia 1993-97 by HS Section
EU IMPORTS FROM EXTRA-EU EU IMPORTS FROM SLOVENIA
EU TRADE BY HS SECTION MECU 1993 = 100 97 %
shareMEC
U1993 = 100 97 %
share
HS Section 1993 1994 1995 1996 1997 1994 1995 1996 1997 1993 1994 1995 1996 1997 1994 1995 1996 1997
I      animals & animal products 9,443 10,176 10,223 10,751 11,994 108 108 114 127 2% 23 18 14 11 16 78 61 48 70 0%
II     vegetable products 16,669 20,027 22,918 22,870 24,981 120 137 137 150 4% 16 12 7 7 6 75 44 44 38 0%
III    animal or vegetable fats 1,575 2,033 2,296 1,888 1,861 129 146 120 118 0% 2 1 1 0 1 50 50 0 50 0%
IV   prepared foodstuffs 14,815 16,122 15,672 17,841 18,106 109 106 120 122 3% 18 16 19 25 24 89 106 139 133 1%
V    mineral products 69,968 71,926 73,138 84,566 93,793 103 105 121 134 16% 5 4 10 14 13 80 200 280 260 0%
VI   chemical products 27,386 31,717 34,159 36,141 41,988 116 125 132 153 7% 56 97 136 112 125 173 243 200 223 3%
VII  plastics & rubber 13,195 15,074 16,294 16,326 18,347 114 123 124 139 3% 112 125 180 185 200 112 161 165 179 5%
VIII  hides & skins 5,741 7,012 7,065 7,358 8,204 122 123 128 143 1% 51 70 65 66 78 137 127 129 153 2%
IX   wood & wood products 10,953 13,226 9,880 9,092 10,934 121 90 83 100 2% 149 178 228 200 203 119 153 134 136 5%
X    wood pulp products 17,417 20,306 12,489 10,921 11,733 117 72 63 67 2% 117 144 217 177 190 123 185 151 162 4%
XI  -  textiles & textile articles 35,943 38,683 38,522 40,250 47,850 108 107 112 133 8% 275 322 360 353 385 117 131 128 140 9%
XII  -  footwear, headgear 5,466 5,912 5,878 6,528 7,688 108 108 119 141 1% 60 57 65 66 70 95 108 110 117 2%
XIII  articles of st one, plaster, cement, asbestos 3,845 4,240 4,105 4,205 4,842 110 107 109 126 1% 51 68 92 101 100 133 180 198 196 2%
XIV   pearls, precious or semiprecious stones, metals 20,145 19,390 19,885 20,892 23,135 96 99 104 115 4% 3 2 1 1 0 67 33 33 0 0%
XV   base metals & articles thereof 25,781 32,741 35,636 31,707 37,506 127 138 123 145 6% 287 388 525 488 563 135 183 170 196 13%
XVI   machinery & mechanical applicances 93,892 106,930 111,807 119,672 142,440 114 119 127 152 24% 464 598 812 859 960 129 175 185 207 22%
XVII   transportation equipment 34,610 33,961 30,985 34,342 46,029 98 90 99 133 8% 377 494 589 660 733 131 156 175 194 17%
XVIII  instruments - measuring, musical 17,383 18,527 19,649 21,200 24,234 107 113 122 139 4% 72 83 110 104 104 115 153 144 144 2%
XIX   arms & ammunition 344 354 381 396 534 103 111 115 155 0% 0 0 0 0 0 0%
XX    miscellaneous 12,359 12,509 12,642 13,912 17,076 101 102 113 138 3% 195 247 340 371 437 127 174 190 224 10%
XXI    works of art 2,103 2,061 1,537 1,235 1,682 98 73 59 80 0% 0 0 0 0 1 0%
Others (outside HS 01-97) 6,749 6,679 6,591 10,737 9,374 99 98 159 139 2% 163 158 163 173 183 97 100 106 112 4%
TOTAL 445,782 489,606 491,752 522,830 604,331 110 110 117 136 100% 2,496 3,082 3,934 3,973 4,392 123 158 159 176 100%
Note:      1993-95 EU 12, 1996-97 EU15
Source:   Eurostat COMEXT
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