RESTRICTED
WORLD TRADE WT/ACC/SPEC/EST/2/Rev.11
11April 1997
ORGANIZATION(97-1511)
Original: English
DRAFT REPORT OFTHE WORKING PARTY ON
THE ACCESSION OFESTONIA
TOTHE WORLD TRADE ORGANIZATION
Revision
Introduction
1. InMarch 1994, theGovernment ofEstonia requested accession totheGeneral Agreement on
Tariffs andTrade (GATT 1947). Atitsmeeting on23-24 March 1994, theGATT Council of
Representatives established aWorking Party toexamine theapplication oftheGovernment ofEstonia
toaccedetotheGeneralAgreementunderArticleXXXIII,andtosubmittotheCouncilrecommendations
which mayinclude adraftProtocol ofAccession. Membership oftheWorking Party wasopen to
allcontracting parties indicating thewishtoserve onit.Inpursuance oftheMinisterial Decision of
14April 1994 onAcceptance ofandAccession totheMarrakesh Agreement Establishing theWorld
Trade Organization (WTO) andtothedecision of31May1994ofthePreparatory Committee forthe
WTO, theWorking Party examined theapplication ofEstonia formembership intheWTO andagreed
topursue themarket access negotiations forgoods, including anagricultural country schedule, and
forservices. TheWTO Agreement entered intoforceon1January 1995. Inpursuance ofthedecision
adopted bytheWTO General Council on31January 1995, theGATT 1947Accession Working Party
wastransformed intoaWTO Accession Working Party. Theterms ofreference andthemembership
oftheWorking Party arereproduced indocument WT/ACC/EST/7.
2. TheWorking Party meton25November 1994; 6-7Juneand14November 1995; 28March
and18September 1996; 11February 1997 and............ under theChairmanship of
H.E. Mr.D.Kenyon (Australia).
Documentation
1Inorder tofacilitate theidentification ofchanges totheearlier version oftheReport additions
tothetextareshaded anddeletions arestruck out.WT/ACC/SPEC/EST/2/Rev.1
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3. TheWorking Party hadbefore it,toserve asabasis foritsdiscussions, aMemorandum on
theForeign Trade Régime ofEstonia (L/7423) andthequestions submitted byMembers ontheforeign
traderégime ofEstonia, together withthereplies thereto, andotherinformation provided bytheEstonian
authorities (L/7529 andAddenda 1and2,WT/ACC/EST/2, WT/ACC/EST/4, WT/ACC/EST/9 and
Corrigendum1,WT/ACC/EST/11andWT/ACC/EST/12).TheGovernmentofEstoniamadeavailable
totheWorking Party thefollowing documentation:
- TheCustoms Lawof24September 1993;
- LawonAmending theCustoms Lawof1December 1993;
- Draft LawonCustoms Tariffs;
- LawonForeign Relations of16November 1993;
- LawonCompetition of7July1993;
- LawontheState Border of30June1994;
- LawonState Budget (amended version of20April 1994);
- LawonMunicipal andTown Budget of28June1993;
- LawonCorrelationbetweenMunicipalandTownBudgetsandtheStateBudget(amendedversion
of2February 1994);
- LawonPrivatization of7July1993;
- LawonExport andTransit ofStrategic Goods of21April 1994;
- LawonAmending theLawoftheCentral Bank oftheRepublic ofEstonia of20April 1994;
- TheFood Lawof9February 1995;
- TheLawoftheRepublic ofEstonia onForeign Investments;
- Statutes oftheEstonian Foreign Investment Agency (9May1994);
- Restrictions onTransfer ofImmovable Property Ownership toAliens, Foreign States andLegal
Persons Act;
- LawonBankruptcy oftheRepublic ofEstonia of10June1992;
- LawonTaxation of29December 1993;
- LawonAmending theLawonTaxation of30March 1994;
- Income TaxLawof21December 1993;
- LawonLand Taxof12May1993;
- LawonLocal Taxes of10October 1994;
- LawoftheCentral Bank oftheRepublic ofEstonia of31May1993;
- LawonMotor Vehicle Excise Taxof8February 1995;
- LawonAlcohol Excise Tax(with 1994 amendments);
- LawonTobacco Excise Tax(new version of13July1994);
- LawonRevenue Stamps of28March 1994;
- LawonValue Added Tax(amended version of30June1994);
- LawonCustoms Valuation of8February 1995;
- LawonPublic Procurement of1January 1996;
- Public Procurement Amendment Actof1January 1997;
- AdraftLawonPublic Procurement;
- Copyright Lawof23November 1992;
- Patent Lawof30March 1994;
- Utility Model Lawof30March 1994;
- LawonSecurities Market of14June1993;
- Insurance Lawof18November 1992;
- Memorandum ontheExport Control System inEstonia;
- Rules ofOrigin inFree-Trade Agreements withtheEuropean Union, theUkraine andthe
Trilateral Free-Trade Agreement withLatvia andLithuania;
- Rules ofOrigin inFree-Trade Agreements withEFTA countries (Norway andSwitzerland);WT/ACC/SPEC/EST/2/Rev.1
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- Commercial Code, consolidated on12June1996;
- LawofProperty Act,consolidated on8October 1996;
- Packaging Actof3May1995;
- Medicinal Products Act,consolidated on15October 1996;
- Privatization inEstonia (summary);
- Information ontheEstonian Innovation Foundation;
- Acomparison oftheoldandnewversion oftheFood Act,concerning foodcontrol inEstonia;
- Economic bulletins.
Introductory Statements
4. Therepresentative ofEstonia noted thatEstonia hadbeenanobserver totheGATT 1947since
June1992andhadaccordingly witnessed thesuccessful conclusion oftheUruguay Round andlooked
forward toitsimplementation. Estonia hadadopted newlawsandregulations forming asolidlegislative
foundation. Moreover, Estonia 'seconomy, which encouraged competition andanentrepreneurial spirit
through aliberal trade régime foragricultural andindustrial products andopenness regarding foreign
investment andforeign exchange, wasexpanding steadily. Estonia 'sfreeandopenmarket hadbeen
underpinned bybilaterally binding andmutually beneficial market opening commitments intrade
agreements covering more thantwothirds ofEstonia 'strade. Bilateral freetradeagreements hadbeen
concluded withLatvia, Lithuania, EFTA countries, Ukraine, Czech Republic, Slovak Republic, the
European Union andSlovenia, andEstonia hadtradeagreements based ontheGATT 1947principles
withseveral othercountries. Having followed thecodeofconduct laiddown byGATT 1947principles,
fullmembership intheGATT 1947 andupon itsentry intoforce intheMarrakesh Agreement
Establishing theWorld Trade Organization -wastheoneimportant missing aspect inEstonia 'strade
policy. Estonia intended tojointhemultilateral trading system embodied intheWTO Agreement as
adeveloped country, fullyaware of,andready toassume, alltheobligations andresponsibilities this
entailed. Estonia 'saccession totheWTO should, however, alsobeviewed inthecontext ofanoverall
political objective tointegrate withtheEuropean Union. Therepresentative ofEstonia looked forward
tothebeginning ofanactive negotiating process which should beconcluded byEstonia 'saccession
totheWTO intheverynearfuture.
5. MembersoftheWorkingPartywelcomedEstonia'sinitialapplicationforaccessiontotheGeneral
Agreement and,uponconclusion oftheUruguay Round, totheWTO. Theriseinexports andforeign
direct investment were indicative oftherelative success ofEstonia 'sliberal economic policies.
Membership intheWTO would offerEstonia theopportunity toconsolidate itssmall, openeconomy
within amultilateral framework andtodevelop andincrease trade exchanges withWTO Members
worldwide. Theliberal, openmarket principles currently being implemented byEstonia would also
facilitate itsassumption ofobligations andcommitments arising from theUruguay Round. SeveralWT/ACC/SPEC/EST/2/Rev.1
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members accordingly expressed theexpectation thattheestablishment ofmarket access conditions for
goods andservices would proceed inanexpeditious manner andlooked forward tothesuccessful and
timely conclusion ofthetasks oftheWorking Party.
6. TheWorking Party reviewed theeconomic policies andforeign trade régime ofEstonia and
thepossible terms ofadraftProtocol ofAccession totheWTO. Theviews expressed inthecourse
ofthedeliberations oftheWorking Party aresummarized below inparagraphs 7-1277-115.
ECONOMIC POLICIES
Monetary andFiscal Policy
7. QuestionsbysomemembersoftheWorkingPartyfocusedonthetaxcomponentsofgovernment
revenue andthescope forraising revenue fromtaxes ontrade inEstonia inthelightofimportant free
trade agreements which covered alarge share ofEstonia 'sforeign trade.
8. Inresponse, therepresentative ofEstonia recalled thatasawaytoimprove thecompetitiveness
ofthedomestic industries atthepresent timeEstonia didnotgenerally apply import orexport duties.
Themainsources ofgovernment revenue in1996weretheValue Added Tax(39.4 percent), income
taxes(39.2 percent), andexcise taxes(12.9 percent). Should Estonia apply import duties inthefuture,
heconfirmed thatpreferential treatment would onlybeaccorded inthecontext offreetradeagreements
asprovided forinArticle XXIV oftheGATT 1994. Hesaidthatthemain sources ofgovernment
revenue in1995weretheValue Added Tax(46.3 percent), income taxes (31.8 percent), andexcise
taxes(12.4 percent). Estonia confirmed thatalltaxesincluding thecorporate income taxeswereapplied
equally todomestic andforeign products andenterprises. Inthecaseofamendments tothetaxrégime
inthefuture Estonia would continue tocomply withthenational treatment principle.
Foreign Exchange andPayments
9. Some members oftheWorking Party requested up-to-date information onEstonia 'sforeign
exchange régime, i.e.thedetermination oftheexchange rate,convertibility, availability offoreign
exchange fortrade andpayments purposes, andtheretention offoreign currency.
10. Therepresentative ofEstonia confirmed thatEstonia, asamember oftheInternational Monetary
Fund, followed internationally accepted monetary rules. Since June1992, theEstonian kroon hadbeenWT/ACC/SPEC/EST/2/Rev.1
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pegged against theDeutsche mark attheofficial rateof8kroon to1DM,withatechnical fluctuation
limitof3percent. Thefixed exchange ratewasenshrined intheLawontheSecurity oftheEstonian
Kroon; adevaluation required approval byParliament. HealsosaidthattheBankofEstonia guaranteed
freeexchange within Estonia ofthekroon attheofficial rateaccording tocurrent needs ofcustomers
forconvertible currencies. Non-convertible currencies wereobtained atthecommercial banks. The
lastrestrictions oncurrent account transactions werelifted inMarch 1994, when Estonia accepted the
obligations under Article VIIIoftheArticles ofAgreement oftheInternational Monetary Fund. Capital
account transactions were unrestricted, butexports ofcashandsecurities weresubject toacustoms
declaration.
Investment Régime
11. Some members oftheWorking Party sought information onEstonia 'sstrategies inattracting
foreign investment andintheapplication ofanyrestrictions orconditions attached toforeign investment
andtolandownership. Therepresentative ofEstonia replied thatnospecific promotion programmes
wereenvisaged; foreign investments wereencouraged through anopen, non-restrictive régime. The
Government hadestablished aForeign Investment Agency in1994, providing various services toforeign
investors, andhadconcluded bilateral agreements oninvestment promotion andprotection withthe
following countries: Austria, Belgo-Luxembourg Economic Union, China, Czech Republic, Denmark,
Finland,France,Germany,Israel,Latvia,Lithuania,Netherlands,Norway,Poland,Sweden,Switzerland,
Ukraine, United Kingdom, andtheUnited States. Headded thattheprocedures forregistration of
companies inEstonia distinguished between domestic andforeign investment inonlysixareasnamely,
mining; power engineering, gasandwater supply; administration ofwaterways, ports, dams and
similar structures; railways andairtransport; telecommunication andcommunication network; and
retail trade inmedicines; where foreign investors would needa"Foreign Investment Licence" from
theMinistry ofFinance while a"Licence ofActivity" wasrequired fordomestic investors. Thelicences
carried thesame rights, theprocedural difference being theissuing authority. Thecriteria for
determining whether ornottogrant thetwotypes oflicence were identical.
12. Therepresentative ofEstonia added thatwhen Stateenterprises weresoldagainst privatization
vouchers majority stakes were offered to"core" investors, i.e.majority shareholders (domestic or
foreign), whowereselected byanopenbid.Inpurchasing State-owned enterprises investors (domestic
orforeign) might undertake specific commitments withregard totheamount ofcapital tobeinvested
andminimum workforce ("performance guarantee"). TheEstonian Privatization Agency checked theWT/ACC/SPEC/EST/2/Rev.1
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compliance withagreed conditions. Theperformance guarantee didnotextend tolocalcontent orexport
requirements.
13. Regarding purchase ofland, therepresentative ofEstonia saidthatforeign commercial
undertakings would needpermission fromlocalauthorities, andpermits would onlybegranted when
thebranch ofaforeign commercial undertaking hadbeenentered inEstonia 'sCommercial Register.
Non-residents werenotallowed topurchase landinborder areas andonEstonia 'sislands, except on
thefourlargest islands (Saaremaa, Hiiumaa, Vormsi andMuhu). Inthese areas thepurchase ofland
required special permission oftheGovernment. Non-residents would bepermitted tobuylandprovided
thepurchase wasnotinconflict withtheinterests oftheState, localgovernments ornational security.
14. Concerning taxation offoreign investment therepresentative ofEstonia saidthattheIncome
TaxLawallowed losses tobecarried forward uptofiveyears. Therepresentative ofEstonia confirmed
thatEstonia applied national treatment withrespect totaxation. Revenue could berepatriated freely.
15. Therepresentative ofEstonia confirmed thatEstonia applied national treatment withrespect
totaxation andEstonia would continue tocomply withthenational treatment principle inthecaseof
amendments tothetaxrégime inthefuture. Hefurther confirmed thatEstonia didnotusenational
taxation forexport promotion orperformance. TheWorking Party tooknoteofthese assurances.
State Ownership andPrivatization
16. Some members oftheWorking Party requested details concerning progress inEstonia 's
privatization programme andplans toretain Stateownership inenterprises orsectors. Further questions
addressedrelationsbetweentheStateandcompanymanagement,theapplicationofcompetitionlegislation
toState-owned enterprises, bankruptcy orenterprise dissolution provisions inEstonian legislation and
general orexclusive funds available forState-owned enterprises. Amember requested adetailed report
onfirms remaining inGovernment hands, thenature ofgoods theyconsumed, exported ordistributed;
andareport onplans, asappropriate, tocomplete theprivatization process. Toensure fulltransparency,
Estonia should keepWTO Members informed about progress inprivatization, andprovide periodic
reports ondevelopments inprivatization andeconomic reform issues asrelevant toitsobligations under
theWTO.
17. TherepresentativeofEstoniasaidthatanenterprisewasconsideredprivatizedwhenthemajority
share holding wasinprivate hands. According tothisdefinition allagricultural enterprises hadbeenWT/ACC/SPEC/EST/2/Rev.1
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privatized byJanuary 1995, andmore than90percentofallindustrial enterprises byAugust 1996.
andabout 70percentofindustrial enterprises hadbeenprivatized byJuly1995. ByAugust 1996,
privatization hadbeencompleted formore than90percentofallindustrial enterprises. Companies
hadbeen soldineleven tender rounds withsuccessful bidders offering guarantees withregard to
investment andemployment. Thepublic offering ofshares hadbegun inmid-1994; inapublic offer
themajority stake wassoldtoalocal orforeign "core" investor. In1996 privatization ofmajor
infrastructureenterpriseswasunderpreparation(EstonianEnergy,EstonianOil-Shale,EstonianRailway,
PortofTallinn andEstonian Telecom). State ownership would beretained inrailways andpower
stations, while Estonia 'ssoleoil-shale mine, theelectricity distribution companies andtheservice
structure ofrailway depots weretobeprivatized. These enterprises would beprivatized inaccordance
withaprogram established through Government Order No.155-k of20February 1996.
18. Therepresentative ofEstonia saidthatsome privatization tenders hadonlybeenpublished in
Estonia, butforeign investment hadonlybeenrestricted inthecaseofenterprises processing agricultural
commoditiesorofferingservicestofarmers.Thesecompanieswerenowownedbyfarmers'co-operative
societies. Headded thattheTallinn Stock Exchange wasestablished on31May1996.
19. Inresponse toquestions concerning theappointment anddismissal ofthemanagement of
State-owned enterprises, therepresentative ofEstonia saidthattheadministrative council orboard and
themanagement ofaState-owned enterprise orjointstock company wasappointed inaccordance with
thecompany'sby-lawsorbytheresponsibleMinistry.Theadministrativecouncilorboardcoulddismiss
thegeneral director oftheenterprise; council orboard members were released bytheGovernment
ortheappointing Ministry. Theprovisions oftheLawonCompetition, including itssanctions, applied
equally toprivate andState-owned enterprises. Since 1September 1995, theCivil Code andthe
Commercial Code contained procedures fortheliquidation ofenterprises. Therepresentative ofEstonia
confirmed thatState-owned enterprises actedonapurely commercial basisandthattheirdirectors were
notgovernment employees. [Healsostated thatpurchases bytheStateenterprises cannot beconsidered
asgovernment procurement.] TheState-owned enterprises could notbeconsidered tobeinStatetrading
activities because theydidnotenjoy anyexclusive orspecial privileges inthesense ofArticle XVII
ofGATT 1994. Theywerenotsubject toanycontrol bytheGovernment, nortoGovernment directives
inrelation totheiroperations. Their operations were notfunded bytheState budget. State-owned
andprivate enterprises hadequal access toGovernment funds, i.e.theExport Credit Fund, theFund
ofCredit toAgriculture andRural Life, theFund ofCredit toSmall Enterprises andtheInnovation
Fund.WT/ACC/SPEC/EST/2/Rev.1
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20. Therepresentative ofEstonia confirmed thereadiness ofEstonia toensure thetransparency
ofitsongoing privatization programme under theregular tradepolicy reviews intheWTO andtoprovide
further information onrequest inaccordance withthenotification andconsultation provisions ofWTO.
Therepresentative ofEstonia assured theWorking Party thatthenational trade policy andpractices
under theregular trade policy reviews intheWTO would betransparent. Because thestatistical data
wasnotcompiled onthebasisofthedifferent forms ofownership ofenterprises, Estonia didnotfind
itpossible toprovide periodic reports onprogress inprivatization.
21. TherepresentativeofEstoniaconfirmedthatEstoniawouldensurethetransparencyofitsnational
trade policies andpractices under theregular trade policy reviews intheWTO.
TheWorking Party tooknoteofthisassurance.
Pricing Policies
21. Some members oftheWorking Party requested information ontheprocess ofpriceliberalization
inEstonia andtheextent ofanyremaining controls onprices forgoods andservices. Estonia was
requested toprovide adescription ofexisting price controls; listtheaffected products byHStariff
linewithreference tothelegalprovisions under which controls wereapplied; provisions, ifany,for
border charges thatwould increase import prices; andtheconditions under which theauthority to
control prices wastobeexercised.
22. Therepresentative ofEstonia confirmed thatprices ofallgoods andservices weredetermined
freely bymarket forces except foroil-shale andelectricity. Theprices setforthese items, valid as
of1June1996, arereproduced inTables 1and2.Headded thatprice controls onoil-shale and
electricity weresubject togradual deregulation programs; prices would approach world market levels
withdueregard tothebalance between therequired return ontheinvested capital andtheinterests
ofconsumers. Healsonoted thatthepresent producers ofenergy, heating andoil-shale were not
monopolies since there wasnoprohibition foranybody tostartsimilar operations inEstonia oroffer
acompetitive solution fortheentire Estonian energy system including price reform. Thelegalbasis
forthepricecontrols werethePrice Lawof1989andtheDecree oftheMinistry ofEconomic Affairs
No.7of15May1996. Heating andlocaltransport charges wereregulated tosome limited extent at
thelevelofmunicipalities.WT/ACC/SPEC/EST/2/Rev.1
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23. Therepresentative ofEstonia saidthatEstonia could notforesee anyfurther conditions for
theapplication ofanypricecontrols, including those forimports, except forthose inplaceforelectricity
andoil-shale. These incumbent price controls covered onlydomestic andimport transactions viathe
facilities ofEesti Energia andEesti Polevkivi .Nevertheless, should such conditions arise, the
representativeofEstoniaconfirmedthatanypricecontrolswouldbeappliedinaWTO-consistentfashion.WT/ACC/SPEC/EST/2/Rev.1
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Table 1
Electricity prices (Since 1June 1996)
Consumer
GroupPayment
VariantsCapacity
charge
EEK/kW
per
monthConsumer
charge
EEK/A
permonthActive Energy Reactive Energy
Main price
sent/KWh*Time price sent/kWh* consump-
tion/kvarhreleasing to
the
network
sent/kvarh*day
07.00-
12.00day
12.00-
23.00night
IConsumer
withcapacityAvoltage in
connection
51.00 - 27.631.2 29.6
19.4 3.8 7.6 400kWor
more peronepoint 110kV
ormore 30.4 30.4
substation or
measuringBvoltage in
connection
point
6-35kV56.00 - 30.834.6 32.8
21.6 4.3 7.6 system unit
33.7 33.7
Cvoltage in
connection
point less
than6kV61.00 - 33.537.8 35.8
23.6 5.0 7.6
36.8 36.8
IIConsumer
withcapacityAvoltage in
connection
-1-phase
2.50
37.742.6 40.4
24.7 5.0 7.6 400kWor
more perlessthan
6kV3-phase
7.50 41.5 41.5
onesubstation
ordistribution
unit. Atthe
choice ofthe
consumer either
A,B,orC.Bvoltage in
connection
point less
than6kV- - 48.6 53.5 53.5 33.0 5.0 7.6
Cvoltage in
connection
point
6-35kV- - 43.2 47.5 47.5 30.5 4.3 7.6
IIIReseller
- 7.00 CC+
2.0C+
2.00.61
C 4.1 6.8
IVHouseholds
- -38.1/
45.038.1/
45.038.1/
45.018.6/
22.0 - -
V.Consumer
without A(1-phase) - 53.00 - - - - - -
measuring
B(2-phase) - 159.00 - - - - - -
VINight
consumers
consumption
regulatorsAvoltage in
connection
point 6kVor
more- 3.00 - - - 19.3 4.3 7.6
100kW ormore Bvoltage in
connection
point less
than6kV- 3.00 - - - 22.4 5.0 7.6
*1EEK=100 sentWT/ACC/SPEC/EST/2/Rev.1
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Table 2
Oil-shale Prices (Since 1June 1996)
Quality class
MJ/kgPrice forregular
customer
EEK/tPrice forclients
without contract
EEK/t
1. PK over11.51 68.93 98.43
2. 1PK over10.97 68.07 97.21
3. 2PK 10.26 -10.97 67.12 95.86
4. 3PK 9.59-10.25 66.27 94.65
5. 4PK 8.54-9.58 65.33 93.03
6. P over9.21 64.40 92.00
7. 1P over8.79 63.55 90.78
8. 2P 7.79-8.79 62.68 89.55
9. 3P 7.29-7.78 61.74 88.23
10. 4P 6.28-7.28 60.88 87.00
11. 5P 6.07-6.27 59.96 85.67
24. Therepresentative ofEstonia confirmed thatprices forgoods andservices would notbesubject
toState control. Therepresentative ofEstonia confirmed thatprices ofgoods andservices inevery
sector ofEstonia were determined freely bymarket forces withtheexception ofthose listed in
paragraph 21above. Headded thatprices forgoods andservices would notbesubject toStatecontrol.
Heconfirmed thatEstonia would apply suchcontrols, from thedateofaccession without recourse
toatransition period, nowandinthefuture, inaWTO-consistent fashion, andwould takeaccount
oftheinterests ofexporting WTO members asprovided forinArticle III.9oftheGATT 1994. Estonia
would publish anylistofgoods andservices subject toStatepricecontrols intheofficial journal, Riigi
Teataja (State Gazette), including anychanges regarding existing price controls onoil-shale and
electricity. TheWorking Party tooknoteofthese commitments.
Competition Policy
25. Some members oftheWorking Party requested adetailed description ofEstonia 'scompetition
policy, including theprovisions intheLawonCompetition which prohibits unfair tradepractices and
theauthority oftheCompetition Board topermit agreements restricting competition.WT/ACC/SPEC/EST/2/Rev.1
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26. Inresponse, therepresentative ofEstonia saidthattheLawonCompetition of1993prohibited
unfair trade practices withspecific reference tothefollowing sixtypes ofpractices:
(i) misleading advertising;
(ii) incorrect useofthedesignation ofafirm, trade mark orother attributes;
(iii) disparaging acompetitor orhisgoods;
(iv) abuse ofbusiness secrets;
(v) preferences orinfluence obtained through theuseofanemployee ofanother market
participant; and
(vi) unlawful restricting orfavouring ofthesaleofgoods andservices.
Provisions concerning theabuse ofadominant market position hadentered intoforceon1October 1993
andagreements andconcerted practices restricting competition on1January 1994. TheEstonian
Competition Board wasestablished under theMinistry ofFinance inDecember 1993. Initsprocedural
wayofmaking decisions theBoard gavepriority totheinterest oftheconsumers. Supervision ofbanking
andinsurance wascarried outbyaseparate Statebody. Theterms ofinternational agreements ratified
byParliament prevailed overprovisions intheLawonCompetition incases ofcontradiction. Upon
entry intoforce, theWTO Agreement would havethestatus ofaninternational agreement.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
27. Therepresentative ofEstonia stated that,inaccordance withtheConstitution, theactivities
oftheRiigikogu (Parliament), thePresident oftheRepublic, theGovernment oftheRepublic, and
thejudiciary courts werebased ontheprinciple ofseparation andbalance ofpowers. Legislative power
wasvested intheRiigikogu andexecutive power intheGovernment oftheRepublic. Justice was
administered solely bythecourts which acted independently asprovided intheConstitution andthe
laws. Themain government entities responsible fortheformulation andimplementation ofpolicies
affecting foreign tradeweretheMinistries ofEconomic Affairs; Foreign Affairs; Finance; Agriculture;
andTransport andCommunications. Alllocalissues wereresolved andmanaged bylocalgovernments
-municipalities andtownships -operating autonomously. Therepresentative bodyoflocalgovernment
wasthecouncil, elected infreeelections foratermofthree years.
28. Therepresentative ofEstonia stated thatifEstonian lawsorother actsshould befound to
contradict foreign treaties ratified bytheEstonian Parliament Riigikogu ,theprovisions oftheforeign
treaty would apply. TheWTO Agreement would havethestatus offoreign treaty. TherepresentativeWT/ACC/SPEC/EST/2/Rev.1
Page13
ofEstonia confirmed thatsub-central entities hadnoautonomous authority overissues ofsubsidies,
taxation, trade policy andanyother measures inrespect ofimports andexports. TheWorking Party
tooknoteofthese assurances.
POLICIES AFFECTING TRADE INGOODS
Trading Rights
29. Therepresentative ofEstonia saidthatfrom 1September 1995, theCommercial Code had
replaced theEnterprise Law. TheCommercial Code defined fivetypes ofbusiness association (general
partnership, limited partnership, limited liability company, joint stock company andco-operative
association) andtheindividual private entrepreneur, andstipulated procedures foropening aforeign
company 'sbranch office inEstonia. TheCommercial Register wastobekeptbylocalcitycourts.
Enterprises setupunder previous legislation, notmeeting therequirements ofthenewCode, would
needtoberestructured orterminated by1September 1997. Stricter mandatory capital requirements
would apply from 1September 1999. TheCommercial Code didnotcontain anyprovision which
would beinconsistent withthenational treatment principle; allitsprovisions applied equally todomestic
andforeign companies.
30. Therepresentative ofEstonia confirmed thattheformer State monopoly inforeign trade had
beenabolished andthatnorestrictions existed ontheright offoreign anddomestic individuals and
enterprisestoimportandexportgoodsandserviceswithinEstonia'scustomsterritory,exceptasprovided
inWTO Agreements. Heconfirmed thatindividuals andfirms werenotrestricted intheirability to
import andexport based ontheirregistered scope ofbusiness, andthecriteria forenrolment inthe
Commercial Register ofcompanies inEstonia weregenerally regulated intheCommercial Code which
waspublished intheOfficial Journal RiigiTeataja .TheWorking Party tooknoteofthesecommitments.
Market Access Negotiations
31. Therepresentative ofEstonia presented aninitial offerformarket access negotiations ongoods
inApril 1995 andsubmitted aRevised General Offer forMarket Access Negotiations onGoods in
August1995.Anofferondomesticsupportandexportsubsidiesinagriculturewascirculatedtomembers
oftheWorkingPartyinSeptember1995.Anumberofmembersenteredintomarketaccessnegotiations
withEstonia. Thecommitments concessions onimported andexported goods andthecommitments
inagriculture agreed between Estonia andmembers oftheWorking Party areannexed totheProtocolWT/ACC/SPEC/EST/2/Rev.1
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ofAccession ofEstonia which isreproduced intheAppendix tothisReport. Asindicated inthe
conclusions ofthisReport, theWorking Party tooknoteofthemarket access commitments ofEstonia.
1. Import Regulations
Customs Tariff
Customs Duties
32. Noting thatthecurrent absence ofacustoms tariff demonstrated Estonia 'sfreetrade
determination, some members oftheWorking Party commended thesuccessful andeffective outcome
ofEstonia 'sfreetradepolicies andhoped thatEstonia would continue topursue these same sound and
progressive policies inthefuture. Some members alsoasked Estonia toprovide details about the
imposition ofcustoms duties andthecriteria forapplication ofzeroandnon-zero rates. Amember
expressed concern about Estonia 'sintentions inthisareaandrequested further clarification, noting
thattheEstonian authorities haddrafted aLawonCustoms Tariff although thedraftlawapparently
remained unadopted. Thismember requested thatthedraftlawbeprovided totheWorking Party for
review andcomment, noting thatprogress onmarket access negotiations wascontingent uponreview
ofthisdocument bymembers oftheWorking Party.
33. Therepresentative ofEstonia saidthatcustoms duties hadnotbeenrequired sofarsinceprices
oflocalresources hadyettoreach theapproximate international level. Hereaffirmed thefreetrade
orientation ofhiscountry noting, however, thatEstonia would reserve theright toimpose customs
duties inthefuture, infullconsistency withitsconcessions andcommitments asamember oftheWTO.
Aceiling tariff binding would offerEstonia thesame regulatory opportunities inexternal trade asits
main trading partners. Therefore, Estonia would prefer tobinditstariffs atlevels comparable tothe
averagedutylevelsprevailinginWTOMembersinlinewiththeagreementsandcommitmentsonmarket
accessachievedintheUruguayRound.TherepresentativeofEstoniaaddedthat,atpresent,theEstonian
Government hadnoplantoimpose anymore import duties thanthose fortheimports offurs(16%),
seascooters, small vessels andsnow-scooters (10%), andtheexports ofvintage carspresenting acultural
value (100%) asprovided forinGovernment Decree No.200of10July1993. AdraftLawonCustoms
Tariffs wasprovided totheWorking Party atitssixth session.WT/ACC/SPEC/EST/2/Rev.1
Page15
[34. Therepresentative ofEstonia saidthathisGovernment would submit thedraftCustoms Tariff
LawtotheWTO assoonaspossible andundertook thecommitment toensure thattheCustoms Tariff
Lawwould comply withtheprovisions oftheWTO. TheWorking Party tooknoteofthiscommitment.]
Should there beanyneedforfurther legalinstruments, Estonia tookthecommitment toapply these
inaWTO-consistent manner. Headded thattheLawonCustoms Tariffs wasstillintheprocess of
drafting andaspecial expert group hadbeenestablished inorder tofinalise thedrafting. Estonia would
provide atranslated copyofthedraftlawassoonaspossible. However, asthere werenosignificant
tariffs inEstonia, hisGovernment could nottakethecommitment thatthislawwould beamong the
country 'sfirstpriorities. Itwasnotpossible tomake anypredictions astowhen theEstonian Parliament
would adopt aLawonCustoms Tariffs.
Other Duties andCharges
35. Therepresentative ofEstonia stated thatEstonia levied noduties andcharges onimports other
thanordinary customs duties andcharges forservices rendered. Heconfirmed thatallEstonia 'sduties
andcharges other thantheordinary customs duties, referred toinArticle II.(b) oftheGATT 1994,
werebound atzeroinitsgoods schedule (seeAnnex). Heconfirmed thatEstonia would bindallduties
andcharges, other thantheordinary customs duties, listed initsgoods schedule annexed toitsProtocol
ofAccession under Article II.1(b) oftheGATT 1994, atzero. TheWorking Party tooknoteofthis
commitment.
FeesandCharges forServices Rendered
36. SomemembersoftheWorkingPartynotedthatEstoniahadappliedanadvaloremtaxtocustoms
clearance operations andquestioned whether therevised feewascommensurate withtheapproximate
costs oftheservices rendered asprovided forinArticle VIIIoftheGATT 1994. Estonia wasalso
asked toprovide details ontheexemptions from thefee.
37. TherepresentativeofEstoniainformedtheWorkingPartythat,asof1April1995,a0.5percent
customs procedure taxhadbeenreplaced byaflatfeepercustoms declaration. Therepresentative
ofEstonia confirmed thatafixed feeofEEK 200perimport andexport declaration wascharged as
aStatefeeforcustoms declaration feeandthatthiswastheonlyfeeorcharge forservices rendered
currently inforce. Thefeewascollected bytheNational Customs Board asaprocedure feecovering
thecostofcustoms formalities.WT/ACC/SPEC/EST/2/Rev.1
Page16
38. Therepresentative ofEstonia saidthatthefeerelated onlytothecostofcustoms processing
formalities, andrepresented some 1.42 8.4percentofallrevenue collected byEstonian Customs
during January-September 1996; other revenue wasderived fromexcise taxes(16.98 percent), value
added tax(81.28 percent) andcustoms duties (0.01 percent) (91.6 percent) andcustoms duties
(0.1percent). Thefeewaslevied onimports from alltrading partners, butnotontransit trade or
goods incustoms warehouses, goods declared byphysical persons, orpreliminary declarations. Also
exempt weregoods forofficial usebyforeign diplomatic representations, consular representations or
international organizations; printed matter andinformation carriers addressed tolibraries; irrecoverable
economic aid;andhumanitarian aidreceived bytheEstonian RedCross.
39. Therepresentative ofEstonia confirmed thattheStatefeeforcustoms declaration feedescribed
inparagraphs 37and3833and34wasapplied onanon-discriminatory basistotradewithallEstonia 's
trading partners. Hefurther confirmed that,fromthedateofaccession, Estonia would notreintroduce
anadvalorem customs fee.TheStatefeeforcustoms declaration feewould beapplied inconformity
withWTO obligations, inparticular Articles VIIIandXoftheGATT 1994. Theleveloftheapplied
feewould notexceed thecostofprocessing individual import andexport declarations, revenues from
thefeewould beusedsolely forcustoms processing ofimports andexports, andtotalannual revenue
from collection ofthefeewould notexceed thecostofcustoms processing operations fortheitems
subject tothefees. Heconfirmed thatrevenues fromtheStatefeewerenotusedforcustoms processing
ofimports exempted fromthefee.Information regarding theapplication andlevelofthefee,revenues
collected andtheiruse,would beprovided toWTO members uponrequest. TheWorking Party took
noteofthese commitments.
Application ofinternal taxes toimports
Excise taxes
40. SomemembersoftheWorkingPartynotedthattheexcisetaxesforcertaindomesticandimported
tobacco products andalcoholic beverages weredifferent. These members requested Estonia tophase
outallmeasures inconsistent withArticle IIIoftheGATT 1994. Some members alsoquestioned the
conformity ofEstonia 'sexcise taxonautomobiles withArticles III,VIIandVIIIoftheGATT 1994
andtheWTO Agreement onCustoms Valuation andrequested details about thenewtaxrégime. Estonia
wasalsoasked toprovide details onexcise taxexemptions. Amember Some members heldtheview
thatexcise taxexemptions forsmall domestic producers ofbeer(annual domestic production not
exceeding 5,000 dekalitres) andofwine(annual production notexceeding 1001,000 dekalitres), andWT/ACC/SPEC/EST/2/Rev.1
Page17
theexemption from theexcise taxonsecond-hand motor vehicles fordomestically-owned carswere
inconsistent withthenational treatment provision ofArticle IIIoftheGATT 1994. Intheirhisview,
Estonia would needtochange itsexcise taxlegislation tobring itintoconformity withArticle IIIof
theGATT 1994.
41. Therepresentative ofEstonia described therates ofexcise taxapplied in1996 ontobacco,
petroleum products, alcohol andmotor vehicles (Tables 3and4).These taxlevels wereconsidered
optimal andnoreductions wereforeseen upon accession totheWTO. (Text moved toparagraphs 42
and43.)Anexcise dutyof16percentonfursandfurproducts, levied onlyondomestic producers,
hadbeeneliminated.
42. Therepresentative ofEstonia saidthataccording toamendments totheLawonAlcohol Excise
Tax,theexcise ratesondomestic andimported beerwereequalized on1December 1996. However,
small-scale producers ofbeer-producers withannual production notexceeding 300,000 dekalitres
-were subject toalower rateofexcise dutyasaregional development measure. Thesmall scale
producers covered only9percentoftheEstonian domestic beermarket. Thelower taxratewould
apply alsotoimported beerprovided themanufacturer provided thefollowing documentation:
(1)Theofficial name, address, contact address andtelephone number ofthecompany; (2)Theannual
production oftheprevious year; (3)Thename, address, contact address andtelephone number, title
andoriginal signature oftheliable person; and(4)Date.
43. TherepresentativeofEstoniaconfirmedthattheLawonAlcoholExciseTaxprovidedexemptions
from excise taxforverysmall-scale producers whose annual production ofbeerdidnotexceed
5,000 dekalitres orwhose annual production ofwinedidnotexceed 100dekalitres. These exemptions
werenecessary tomaintain national traditions intheruralareasofEstonia. Thebeerandwineproduced
insuchsmallquantitieswereconsumedlocallyonaverylimitedarea.Theseexemptionswereconsidered
tobemeasures ofregional development. Theproduction ofsuchbreweries andwineries wasnot
significant intheframework ofthetotaldomestic production ofbeerandwine.
44. Therepresentative ofEstonia added thatexcise taxesonalcoholic beverages werenotcollected
ondomesticallyproducedalcoholexportedbythemanufacturerdirectlyorthroughacustomswarehouse;
supplies tomaritime orairtransport vessels engaging inforeign travel; temporary importation by
foreign juridical persons oflimited amounts ofalcohol forfairsandexhibitions; alcohol tobeincluded
inadatabaseonproducer brands; andalcohol imported forofficial functions under diplomatic status.
Theexcise taxonwines distinguished between bulkandbottled imports toencourage bottling andfurtherWT/ACC/SPEC/EST/2/Rev.1
Page18
processing inEstonia. However, thehigher rateapplied onsalesofdomestically bottled wines. Bottled
winewastaxed atEEK 15.60 (over 15percentalcohol content byvolume) orEEK 10.40 perlitre,
andbulkwineatEEK 12.50 orEEK 8.00, respectively. Double taxation ofimported bulkwinewas
avoided asthetaxonbulkimports wasdeducted fromthetaxpayment ondomestically-bottled wine.
45. Therepresentative ofEstonia saidthattheexcise taxwasfixed inEstonian kroon perlitre,
byvolume ofpure alcohol (e.g. thetaxon1litreofvodka (40percentvol.) amounted to
EEK 1.15x40=EEK 46),andassessed ontheamount ofalcohol sold, exchanged, forfreetransfer
orownconsumption. Domestic manufacturers paidthetaxtotheStateBudget through thelocalTax
Board three times permonth -onthethirddayfollowing eachten-day period -onthebasis oftheir
actual turnover during thatperiod. Importers wererequired topaytheexcise taxupon importation,
beforereleaseforfreecirculationinEstonia.Importedalcoholwastaxeduponimportationwhiledomestic
manufacturers paidthetaxatthetimeofsale,exchange, freetransfer orownconsumption.
Table 3
Excise Taxes inEstonia
Tariff Heading, subheading Product description Taxrate(EEK)
2203 00011
2203 00091
2203 001011.Beer withan
alcoholic content by
volume upto4.7%
vol.incaseofannual
production inthousands
ofdekalitres:
upto300(incl.)
over3001.50*
2.00*2.00*
2.50
2203 00019
2203 00099
2203 009092.Beerwithan
alcoholic content by
volume exceeding 4.7
%vol.incaseofannual
production inthousands
ofdekalitres:
upto300(incl.)
over3002.00*
2.502.50*
3.00*WT/ACC/SPEC/EST/2/Rev.1
Page19
Tariff Heading, subheading Product description Taxrate(EEK)
5. Imported beer: After
1/12/96 no
separate
excise tax
exists on
imported
beer. Both
domestic
and
imported
beerwill
becovered
bythe
same
excise rate2203 00019
2203 00099
2203 009091)withanalcoholic
content byvolume upto
4.7%vol.6.00*
2203 00001
2203 00091
2203 009012)withanalcoholic
content byvolume
exceeding 4.7%vol.9.00*
*per
litre
2204 10110-2204 21101,
2204 21110-2204 21840,
2204 29105,2204 29129,2204 29139,
2204 29179,2204 29189,2204 29429,
2204 29439,2204 29449,2204 29469,
2204 29479,2204 29489,2204 29589,
2204 29629,2204 29649,2204 29659,
2204 29719,2204 20729,2204 29759,
2204 29819,2204 29829,2204 29839,
2204 29849,2205 10101,2205 90103.3.1.Sparkling wines
andother wines offresh
grapes withanalcoholic
content byvolume upto
15%10.40*
2204 29101,2204 29121,2204 29131,
2204 29171,2204 29181,2204 29421,
2204 29431,2204 29441,2204 29461,
2204 29471,2204 29481,2204 29581,
2204 29621,2204 29641,2204 29651,
2204 29711,2204 29721,2204 29751,
2204 29811,2204 29821,2204 29831,
2204 29841,2205 90101-unbottled wines of
fresh grapes8.00*
2204 21109,2204 21870-2204 21990,
2204 29109,2204 29879,2204 29889,
2204 29899,2204 29919,2204 29929,
2204 29939,2204 29949,2204 29959,
2204 29969,2204 29979,2204 29989,
2204 29999,2205 10109-2205 10900,
2205 90109,2205 90902.4.2.Sparkling wines
andother wines offresh
grapes withanalcoholic
content byvolume
exceeding 15%15.60*
2204 29103,2204 29871,2204 29881,
2204 29891,2204 29911,2204 29921,
2204 29931,2204 29941,2204 29951,
2204 29961,2204 29971,2204 29981,
2204 29991,2205 90105,2205 90901.-unbottled wines of
fresh grapes12.50*
2206 00100-2206 00510
2206 005915.3. Other fermented
drinks (e.g.cider,
berry, wineetc.)and
theirblends:4.90*WT/ACC/SPEC/EST/2/Rev.1
Page20
Tariff Heading, subheading Product description Taxrate(EEK)
2206 00810
2206 008911)withanalcoholic
content byvolume upto
15%vol.4.90*
2206 00592
2206 008922)withanalcoholic
content byvolume
exceeding 15%vol.6.50*
2207 10009
ex2207 10000
2208
2106 90200
3302 101006.4. Other alcohol 1.15**
ex2207 10000
ex2208 90910
ex2208 909907.5. Rectified spirits
usedinmedicine,
pharmaceutics,
veterinary, scientific
research andstudy
purposes, veterinary
medicine forscientific
andstudy purposes, the
production ofperfumery0.20**
*perlitre
**perone%vol. ofabsolute alcohol alitre
Beer until
1/12/96
(EEK)from
1/12/96
(EEK)
Motor Fuel
2710 00271,2710 00272
2710 00290,2710 00320
2710 00341,2710 00342
2710 00343,2710 00344Petrol 1.80EEK perlitre
1.20EEK litre
2710 00360,2710 00660
2710 00671,2710 00681
2710 00691Diesel Oil 0.75EEK perlitre
2710 00510,2710 00260
2710 00370Aviation petrol and
gasoline2.30EEK per
litre1.50 EEK per
litre
2711 12940,2711 12970
2711 13910,2711 13970
2711 12960
2711 12980,2711 13910
2711 13930,2711 13980Liquid gasusedas
motor fuel1.10EEK per
litre0.75 EEK per
litre
2711 21000 Compressed gasusedas
motor fuel1.10EEK perm30.75
EEK perm3
2710 00871 Motor oil 0.20EEK perlitreWT/ACC/SPEC/EST/2/Rev.1
Page21
Tariff Heading, subheading Product description Taxrate(EEK)
Tobacco products
2402 20 Filtered cigarettes 3*
2402 20 Unfiltered cigarettes 3*
2402 20 Russian cigarettes 3*
2402 10001 Cigarillos 3*
2402 10009 Cigars 3**
2403 10 Smoking tobacco 3***
2403 99100 Snuff 3***
2403 99100 Chewing tobacco 3***
ex2403 999002402 90000,2403 99900 Other tobacco products 3***
* applies toupto20cigarettes orcigarillos; apackage containing 21-40cigarettes or
cigarillos ismarked withtworevenue stamps etc.
** applies toonecigar
*** applies toupto50grams ofatobacco product; apackage containing 51-100grams
ofatobacco product ismarked withtworevenue stamps etc.
46. Therepresentative ofEstonia saidthattheLawonStamp Duty established revenue stamps,
issued against payment oftaxes bytheNational TaxBoard atnoextra charge, forgoods subject to
excises. Atpresent theStamp Duty concerned onlyimported anddomestically produced tobacco
products. Forexample, theexcise taxonperpackage of20cigarettes amounted toEEK 3.Domestic
firms paidexcise taxestothelocalTaxBoard threetimes permonth, taxesonimported tobacco products
werepayable before release forfreecirculation inEstonia. Therepresentative ofEstonia confirmed
thatexcise rates forimported anddomestically-produced tobacco products hadbeen equalized on
1January 1996 bybringing taxes ondomestic products uptothelevelapplied toimports.
Value Added Tax(VAT)
47. Concerning thetaxation ofautomobiles, aMember saidthattheexemption ofuseddomestically
owned automobiles from theexcise taxonusedautomobiles wasinconsistent withArticle IIIofthe
GATT 1994andshould bechanged tobring intoconformity. Inresponse, therepresentative ofEstonia
referred totheLawonMotor Vehicle Excise Tax,inforce since1April 1995, replacing a10percent
import taxwhich hadbeenlevied inaccordance withoriginal invoices forlegalpersons andavaluation
listfornatural persons inorder toavoid fraud. Thenewsystem taxed vehicles infixed amounts
according tovehicle ageandengine cylinder capacity. According totheLawonMotor Vehicle Excise
Tax,theexcise taxwasimposed onmotor vehicles imported intoEstonia andmanufactured inEstonia.
There werenomanufactures ofmotor vehicles inEstonia except thatbuses wereassembled insmallWT/ACC/SPEC/EST/2/Rev.1
Page22
quantities. Atpresent there were nosales ofdomestically produced neworusedmotor vehicles.
According totheLaw, ifthere would bemanufactures ofmotor vehicles, theywould paytheexcise
taxuponsale,exchange, gratuitous transfer orself-consumption ofmotor vehicles. According tothe
LawonMotor Vehicle Excise Taxbuses werenotsubject toexcise tax.Estonia considered thatthe
LawonMotor Vehicle Excise Taxwasinconformity withArticle IIIofGATT 1994because imported
motor vehicles weretreated asfavourably asdomestically produced motor vehicles. Thetaxwaspaid
bytheimporter upon importation andbydomestic manufacturers upon thesaleofthevehicle.
48. Therepresentative ofEstonia saidthatallnewmotor vehicles andusedmotor vehicles imported
intoEstonia weresubject toexcise tax.Theexcise taxwasimposed onthefirstownership ofamotor
vehicle inEstonia, andthetaxwould bereflected inthedomestic market priceforsubsequent owners.
Theexcise taxwasdesigned toencourage importation ofmodern vehicles. Resale ofmotor vehicles
byabuyer wasnotsubject totheexcise tax.Thesame treatment applied totheresale ofimported
motor vehicles. Therepresentative ofEstonia saidthattolevyexcise taxupontheresale ofusedmotor
vehicles would tantamount todouble taxation. Inorder toexplain howexcise duties onautomobiles
were calculated anexample wasincluded inTable 4.
Table 4
Motor Vehicles
Tariff Heading,
subheadingProduct description Taxrate(EEK)
1.Excise taxbased onthecylinder capacity ofmotor vehicles
8703 Motor carsandother motor vehicles principally
designed forthetransport ofpersons (other than
those ofheading No.8702), including station
wagons andracing cars:
8703 10 Motor vehicles specially designed fortravelling on
snow; golfcarsandsimilar vehicles1EEK/cc
Other vehicles, withspark-ignition internal
combustion reciprocating piston engine ofa
cylinder capacity:
8703 21 notexceeding 1,000 cc 1EEK/cc
8703 22 exceeding 1,000 ccbutnot1,500 cc 1EEK/cc
8703 23 exceeding 1,500 ccbutnot3,000 cc 1EEK/cc
8703 24 exceeding 3,000 cc 3EEK/cc
Other vehicles withcompression-ignition internal
combustion piston engine (diesel orsemi-diesel) of
acylinder capacity:1EEK/ccWT/ACC/SPEC/EST/2/Rev.1
Page23
Tariff Heading,
subheadingProduct description Taxrate(EEK)
8703 31 notexceeding 1,500 cc 1EEK/cc
8703 32 exceeding 1,500 ccbutnot2,500 cc 1EEK/cc
8703 33 exceeding 2,500 cc 1EEK/cc
8711
(except under
subheading 8711 90)Motorcycles (including mopeds) andcycles fitted
withanauxiliary motor, withorwithout side-cars;
side-cars1EEK/cc
2.Excise taxonusedmotor vehicles based ontheageofthemotor vehicle
ofupto12years ofage 100EEK/year
from 13years ofage 150EEK/year
3.Excise taxonnewmotor vehicles 1000 EEK
Example:
Ausedautomobile, cylinder capacity 2000cm3, age10years andprice according tothe
purchase documents is10000EEK:
10000-price according tothepurchase documents
2000-excise taxonthebasis ofthecylinder capacity
1000-excise taxonthebasis ofage
13000
2340-VAT (18% from 13000)
15340-price forimporter afterimportation
49. Some members ofWorking Party requested information ontheapplication ofthevalue-added
tax,including product anduser-specific exemptions andequal treatment forimported anddomestic
products. Questions were alsoraised regarding thecalculation oftheVAT onmotor vehicles.
50. Therepresentative ofEstonia confirmed thatthevalue-added taxatan18percentratewas
applied equally todomestic goods andtoallimports regardless ofcountry oforigin. VAT onmotor
vehicles imported bynatural persons hadbeenbased onastandard valuation listuntiltheexcise tax
system waschanged on1April 1995. Healsoconfirmed thattheexemptions forcertain goods and
servicesfromtheVATwereappliedequallytodomesticandimportedgoodsandservices.Thefollowing
goods andservices were exempt from VAT: education andadvanced training, postage stamps and
postal services, medical services, banking andinsurance, funeral services andrequisites materials,
gambling andlotteries, residential rent(letting ofhousing), rents, medical equipment, treatment of
dangerouswaste,and,sinceFebruary1995,socialservicesandscientificresearchactivitiesofuniversities
andStateresearch establishments funded fromtheStatebudget, reusable packaging andmunicipal sauna
services. Exports, subscriptions toperiodicals published andprinted inEstonia, andtheatre tickets,
tickets toconcerts ofState concert organizations andState collectives ofperformers, textbooks and
workbooks forbasic schools andgymnasiums, hadzero-rate VAT. Theturnover ofgoods suchasWT/ACC/SPEC/EST/2/Rev.1
Page24
medicines, medical goods, medical treatment equipment andlottery tickets wastaxfree.andimports
fornon-profit purposes were taxexempt. TheGovernment hadtherighttogrant exemptions from
VATonimportsfornon-profitpurposes.Importsrequiredforofficialpurposesofforeignrepresentations
anddiplomats werenotsubject toVATprovided thatforeign country granted thesamerighttoEstonia 's
representations abroad.
51. Noting thatcertain legalentities withaturnover below EEK 250,000 werenotregistered as
obligatory payers ofVAT, amember questioned therationale forthisprovision anditsconformity
withArticle IIIoftheGATT 1994. Inhisview, thisexemption would appear toconstitute asubsidy
program forsales ofdomestic goods bysmall Estonian businesses since imports were assessed for
theVAT inanycaseuponimportation. Estonia should revise itslegislation intheneartermorpropose
amethod bywhich thedeficiencies identified initsexcise taxandVATapplication would beaddressed.
Therepresentative ofEstonia replied thatlegalpersons whose taxable base(except imports) exceeded
thethreshold value ofEEK 250,000 inacalendar yearwere obliged toregister withtheTaxBoard
aspersons liable totaxation. Legal persons withataxable basebelow thethreshold value could also
seekregistration asliable totaxation attheTaxBoard. Inhisview, non-registration didnotamount
toasubsidy program forsmall Estonian companies forsalesofdomestic goods andservices sinceonly
registered taxpayers could claim arefund forVAT paidongoods andservices usedasinputs intheir
production.
52. Therepresentative ofEstonia confirmed that,from theasofthedateofaccession, any
application toimports ofdomestic taxes orother internal charges ofanykindwould beinaccordance
withtheprovisionsoftheWTO,includingArticleIIIoftheGATT1994.theonlydomestictaxesapplied
toimports would beexcise taxesandvalue added tax.Hefurther stated that,fromthedateofaccession,
Estonia willapply itsdomestic taxes, including those onproducts listed inparagraphs 41to51instrict
compliance withArticle IIIoftheGATT 1994, inanon-discriminatory manner toimports regardless
ofcountry oforigin andtodomestically-produced goods. Inthisregard, thefollowing actions will
betaken concerning thecurrent taxmeasures applied toalcoholic beverages andautomobiles:
(i)TheLawonAlcohol Excise Taxshallberevised asfollows (revisions areindicated bystrikeout):
§6.Exemption from Excise Tax
Excise taxshallnotbecharged on:
(1)Beermanufactured inEstonia byonemanufacturer, whose annual production ofbeerdoesnot
exceed 5,000 dekalitres;WT/ACC/SPEC/EST/2/Rev.1
Page25
(2)Wine withanalcoholic content byvolume ofupto15percentvol.,manufactured inEstonia by
onemanufacturer, whose annual production doesnotexceed 100dekalitres.
(ii)TheLawonMotor Vehicle Excise Taxshallberevised asfollows:
Excise ratescurrently inforce based ontheageofmotor vehicle shallbereplaced asfollows:
Used motor vehicle upto10years ofage EEK 1,000
Used motor vehicle from 11to12years ofage EEK 100peryear
Used motor vehicle from 13years ofage EEK 150peryear
TheWorking Party tooknoteofthese commitments.
Quantitative Import Restrictions, including Prohibitions, Quotas andLicensing Systems
53. Some members oftheWorking Party sought information about thescope of"Licences of
Activity" andalsocriteria inthegranting oflicences andrelated requirements; licensing arrangements
fortrade inmetals, spirits, tobacco andtobacco products, medicaments, weapons, ammunition, and
explosives; andtheuseofquantitative restrictions. Some members expressed theconcern thatunder
certain circumstances theconditions ofsaleofimported products could beaffected inamanner not
consistent withArticle IIIoftheGATT 1994, forinstance, trade inalcohol andtobacco required a
preliminarydeclaration.AmemberwasconcernedthatEstonia'slicensingsystemcouldbediscretionary
andrequested thatthedraftLicensing Actbeprovided totheWorking Party.
54. TherepresentativeofEstoniasaidthatlicensingwasnotappliedtorestrictimports,theproduction
orthewholesale ofanyproduct. The"preliminary declaration" requirement simply implied thatall
customs procedures andformalities needed tobecompleted before goods could cross theborder.
55. IndocumentWT/ACC/EST/9(AnnexII),therepresentativeofEstoniaprovidedtheinformation
onimport licensing procedures according totheformat applicable toWTO Members. Hestressed
thatgeneral government policy wastomaintain aliberal economic policy andtoreduce theareas of
activity subject tolicensing. Henoted thatEstonia considered thelicensing arrangements tobeconsistent
withtheWTO Import Licensing Agreement. Initssubmission, Estonia listed 41economic activities
inwhich operators needed a"Licence ofActivity" forproduction and/or trade, valid foruptofive
years, andthecorresponding regulatory authority (Table 5which isreproduced intheAnnex). Among
thejustifications listed weresafety (e.g.medicaments); atechnological leveladequate tocomply with
compulsory standards (e.g.alcoholic beverages); registration requirements toprevent threats tosecurityWT/ACC/SPEC/EST/2/Rev.1
Page26
andtheenvironment (e.g.firearms andvehicles); andregistration andaccounting requirements for
taxpurposes (alcoholic beverages, tobacco, metals, etc.). Thecriteria fortheissuing oflicences were
publishedintheofficialjournal"RiigiTeataja"(StateGazette).Heconfirmedthatthenumberoflicences
wasnotrestrictedandthatlicencesweregrantedtonationalandforeignoperatorsunderequalconditions.
Ineachlicensedsectoridenticalcriteria,objectivelyneutralandsystematicallyadministered,wereapplied
regarding importation, exportation anddomestic trade. Anexpired licence could berenewed orreplaced
byanewvalid licence.
56. Therepresentative ofEstonia explained thatEstonia intended toestablish ageneral framework
forlicensing which would ensure conformity withWTO provisions. Activity licences hadsofarbeen
established under different regulations; anewLicensing Actwould beelaborated in1997toregulate
activity licences. Nofurther areas would besubject tolicensing while thenewlawwasinpreparation.
Thelicensing legislation wasstillsubject tointernal discussion between Government agencies. A
translated textofthedraftLawonLicensing would beprovided tointerested WTO Members assoon
aspossible.
57. Therepresentative ofEstonia stated thattheimportation ofproducts covered byactivity licences
weresubjectonlytorequirementsconsistentwiththeWTOAgreement.Heconfirmedthatnorestrictions
existed ontherightofforeign anddomestic individuals andenterprises toimport andexport goods
andservices within Estonia 'scustoms territory, withtheexception ofthosespecifically listed inTable 5.
Theactivity licenses enumerated inTable 5didnotrestrict foreign participation astheyapplied equally
toforeign anddomestic businesses. Activity licences wereadministered forthepurpose ofensuring
product safety. Thecriteria forgranting activity licences differed according totheareaofactivity
andhadbeenpublished intheOfficial Journal RiigiTeataja .Upon request, therepresentative ofEstonia
would provide amore detailed tablecontaining references torelevant Government Regulations. The
criteria forengaging inimport andexport tradeintherestricted sectors wereconsistent withgenerally
applicable restrictions placed ontrade insimilar domestically produced goods andbased oncriteria
published intheofficial journal. Theavailability ofactivity licences wasnotrestricted norwasthe
licensing applied torestrict imports, theproduction, wholesale orretail trade inanyproduct.
58. Therepresentative ofEstonia confirmed thatEstonia would notintroduce, re-introduce orapply
quantitative restrictions orother non-tariff measures suchasapplied noquotas, licences, priorpermits
orother requirements ormeasures thatcould actasquantitative restrictions onimports orexports.
Balance ofpayments measures werenotenvisaged atthepresent stage. Therepresentative ofEstoniaWT/ACC/SPEC/EST/2/Rev.1
Page27
confirmed thatactivity licensing relating tothetrade ingoods wascarried outfullyinlinewiththe
WTO Agreements, including theAgreements onImport Licensing Procedures andArticles VIIIand
XIoftheGATT 1994. Therepresentative ofEstonia confirmed that,fromthedateofaccession, Estonia
would notintroduce, re-introduce orapply quantitative restrictions onimports, orother non-tariff
measures suchaslicensing, quotas, bansandother restrictions having equivalent effect thatcould not
bejustified under theprovisions oftheWTO Agreement. Ifbalance-of-payment measures wereever
necessary inthefuture, Estonia would impose them inamanner consistent withtherelevant WTO
provisions, including Article XIIoftheGATT 1994 andtheUnderstanding onBalance-of-Payments
Provisions oftheGATT 1994. TheWorking Party tooknoteofthese commitments.
Customs Valuation
59. Some members oftheWorking Party asked about thestatus oftheCustoms Valuation Law
anditscontent. Relating therequest forinformation toEstonia 'simplementation oftheWTO Agreement
ontheImplementation ofArticle VIIoftheGATT 1994, these members enquired whether Estonia 's
Customs Valuation Lawwasfullyconsistent withtheWTO Agreement. Amember understood that
Estonia wasconsidering legislation which could provide forminimum prices onimportation ofcertain
foodproducts andquestioned theconformity ofsuchlegislation withGATT rules. Estonia alsoappeared
touseprice listsofreference prices toverify invoices. Thismember reminded Estonia thattheuse
ofminimum import prices orreference prices wasaviolation ofArticle VII.
60. Therepresentative ofEstonia explained thattheCustoms Valuation Lawhadbeenadopted
on8February 1995 andhadentered intoforce on1January 1996. Thedelay hadbeennecessary
toundertake preparatory work foritsimplementation, including practical arrangements suchasthe
printing ofdocuments, thetraining ofcustoms officers, informing traders, etc.Estonia considered
theLawtobeinfullconformity withWTO rules, including theWTO Agreement ontheImplementation
ofArticle VIIoftheGATT 1994.
61. Estonia 'sresponse tothequestionnaire on"Information onImplementation andAdministration
oftheAgreement"wassubmittedinAugust1995(WT/ACC/EST/4,annexes1and6,listedindocument
WT/ACC/EST/5). Therepresentative ofEstonia wasasked toclarify provisions intheCustoms
Valuation Lawrelating totheuseoftransaction value between related parties (Article 4(3)); verification
oftransaction values between related parties based ontestvalues (Articles 4(5)(4) and(5)); andaWT/ACC/SPEC/EST/2/Rev.1
Page28
reference tominimum customs values inArticle 9(2)(4) oftheLaw. Estonia wasalsoasked about
theimplementation ofDecision 4.1oftheCustoms Valuation Committee concerning thevaluation of
carrier media bearing software fordataprocessing equipment (theSoftware Decision).
62. Therepresentative ofEstonia saidthatEstonia hadintroduced theprovisions oftheSoftware
Decision. Adecree, issued bytheMinistry ofFinance on11January 1996, stipulated thatonlythe
costofthecarrier medium itselfwould beaccounted forinthecustoms value. Hestated thatthevalue
ofimportedmerchandisewasdeterminedinconformitywithGATTArticleVII(2)(a)alsointransactions
between related parties; testvalues wereusedfortheverification ofthedeclared value withtheactual
value onlyattherequest oftheimporter.
63. Therepresentative ofEstonia assured members oftheWorking Party thattheLawonCustoms
Valuation would beapplied infullconformity withtheWTO Agreement ontheImplementation of
Article VIIoftheGATT 1994. Inaddition, heconfirmed thatArticle 9(2)(4) oftheLawwould be
applied consistent withArticle VII(Valuation forCustoms Purposes). Hestressed thatArticle 9(2)(4)
oftheCustoms Valuation Lawprohibited thesetting upofminimum import values. Heunderlined
thatEstonia didnothaveanymeasures inplace which would beinconsistent withWTO rules, nor
would Estonia introduce suchmeasures inthefuture. Estonia didnotusemeasures suchasminimum
prices, reference prices orlistsofprices inorder tocalculate customs value ortoverify invoices.
64. Therepresentative ofEstonia confirmed thatEstonia didnotandwould notuseanyform of
reference price orfixed valuation schedule forthevaluation ofimports ortoapply duties andtaxes,
andthatallmethods ofvaluation usedwereinstrict conformity withthose provided forintheWTO
Agreement ontheImplementation ofArticle VIIoftheGATT 1994. 65.Therepresentative ofEstonia
Heconfirmed thatEstonia would apply fullytheWTO provisions concerning customs valuation from
thedateofaccession, including, inaddition totheAgreement ontheImplementation ofArticle VII
oftheGATT 1994, theprovisions fortheValuation ofCarrier Media Bearing Software forData
Processing Equipment andtheprovisions ontheTreatment ofInterest Charges inCustoms Value of
Imported Goods. Hefurther confirmed that,asaninternational agreement, theprovisions oftheWTO
Agreement ontheImplementation ofArticle VIIoftheGATT 1994 would supersede domestic law
afteraccession. TheWorking Party tooknoteofthese commitments.WT/ACC/SPEC/EST/2/Rev.1
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Other Customs Formalities
65. TherepresentativeofEstoniaconfirmedthatothercustomsformalitieswereappliedinaccordance
withinternationally accepted rulesandwerebased ontheKyoto Convention. Headded thatEstonia
wasamember oftheWorld Customs Organization since June1992.
Rules ofOrigin
66. Some members oftheWorking Party requested information about theelaboration ofrulesof
origin inEstonia whether inthecontext offreetrade agreements orotherwise. Amember requested
Estonia toconfirm thatitsrules oforigin forbothpreferential andnon-preferential trade complied
fullywiththeWTO Agreement onRules ofOrigin. Estonia wasasked todescribe, inparticular,
measures consistent withthedisciplines under Article 2oftheAgreement andtheCommon Declaration
inAnnex IIoftheAgreement.
67. Therepresentative ofEstonia saidthatthedrafting ofrulesoforigin wasacontinuous process
evolving inaccordance withdevelopments intheTechnical Committee onRules ofOrigin oftheWTO.
Duetotheliberal foreign traderégime theelaboration ofnational rulesoforigin hadnotbeenconsidered
essential inEstonia, butagreed rules oforigin wereusedintheframework offreetrade agreements.
Estonia applied unified rules oforigin within thesystem ofdiagonal cumulative origin among the
countriesoftheEuropeanEconomicArea,Switzerlandandtenassociatedcountriesincentralandeastern
Europe. TheEstonian authorities envisaged theelaboration ofalawonrulesoforigin along thelines
ofexisting rules oforigin inpreferential trade agreements andthesuggestions anddecisions ofthe
Committee onRules ofOrigin oftheWorld Customs Organization andtheWTO Agreement onRules
ofOrigin. Members oftheWorking Party were supplied copies oftherules oforigin ofEstonia 's
freetradeagreementswithEFTAcountries;theEuropeanUnion,theUkraineandthetrilateralfree-trade
agreement withLatvia andLithuania.
Anti-Dumping, Countervailing Duties, andSafeguard Régimes
68. Some members oftheWorking Party noted thatEstonia appeared nottohaveanyspecific anti-
dumping legislation, butthatanAnti-dumping Law, including countervailing duties procedures, was
inpreparation. Inview oftheuncertainty regarding thedateofentry intoforce ofsuchalawandWT/ACC/SPEC/EST/2/Rev.1
Page30
itscontent, Estonia wasasked tosubmit draftlegislation forcomment tomembers oftheWorking
Party.
69. Inresponse toaspecific question therepresentative ofEstonia Healsoclarified thatwhile
price dumping wasmentioned among abuses ofdominant position inChapter III,Article 17ofthe
LawonCompetition, thelisted unfair trade practices intheActdidnotoverlap withanypending
anti-dumping statute. Headded thatnotextofanyAnti-dumping Lawexisted yet.
70. Therepresentative ofEstonia confirmed that,atthispoint, Estonia didnothavelegalauthority
toapply anti-dumping duties, countervailing duties, andsafeguards, andtherefore didnotusethese
measures toregulate trade. (Moved frompreceding paragraph.) Hefurther saidthatEstonia would
notapply anysuchmeasures untilithadimplemented appropriate laws, andthatintheelaboration
ofanylegislationinthefutureconcerningsuchmeasures,concerninganti-dumpingduties,countervailing
duties andsafeguards, Estonia would ensure theirfullconformity withtherelevant WTO provisions,
including Articles VIandXIXofGATT 1994andtheAgreements ontheImplementation ofArticle VI,
theAgreement onSubsidies andCountervailing Measures andtheAgreement onSafeguards. Estonia
wouldalsoapplyanyanti-dumpingduties,countervailingdutiesandsafeguardmeasuresinfullconformity
withtheWTO provisions. TheWorking Party tooknoteofthese commitments.
2. Export Regulations
Customs Tariffs, FeesandCharges forServices Rendered, Application ofInternal Taxes toExports
71. Some members oftheWorking Party noted thatEstonia applied export taxes onmetals and
objects ofcultural value andasked foradescription andjustification ofthese taxes. Inresponse, the
representative ofEstonia replied thata100percentexport taxwaslevied onobjects ofcultural value,
i.e.dating frombefore 1950. Prices forobjects ofcultural value destined forexport weredetermined
bytheExpert Division onExportation ofCultural Values oftheCentral Board ofAntiquities. Export
taxesonmetalshadbeenabolished,butexportswerestrictlycontrolledthroughthelicensingofexporters
andaStatemonopolyonscrapmetalexports.ThecommitmentsonexportdutiesagreedbetweenEstonia
andmembers oftheWorking Party areannexed totheProtocol ofAccession ofEstonia, reproduced
intheAppendix tothisReport.WT/ACC/SPEC/EST/2/Rev.1
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Export Restrictions
72. Noting thattheMinistry ofEconomic Affairs hadtherighttoimpose export quotas oncertain
goods, some members oftheWorking Party asked therepresentative ofEstonia toclarify licensing
arrangements affecting tradeinmetals, spirits, tobacco products andmedicaments andtojustify export
quotas/licences ongravel andclay. Some members alsosought clarification onEstonia 'sintentions
regarding theuseofnon-tariff measures onexports foremergency purposes. Therepresentative of
Estonia replied thattheMinistry ofEconomic Affairs 'right todetermine export quotas hadbeen
eliminated. Thelastremaining export quota (onquartz sand) hadbeenabolished andEstonia didnot
foresee anyfurther quantitative regulation offoreign trade. Astheexport quota/licence ongravel and
clayhadbeenterminated on1January 1995, nojustification would berequired under GATT orWTO
provisions andEstonia would seeknotransitional period forthismeasure. Export andimport licences
assuchdidnotexist, buthereferred totheearlier response regarding "Licence ofActivity" (in
paragraph 5548above). Headded thatEstonia would notapply regulations onexports beyond WTO
mechanisms. Export control measures (licences) onscrap metal andradioactive waste material did
notcarry anylimitation ofquantity. Licences wereissued automatically provided theapplicant could
prove thatthegoods hadbeenobtained legally. Failure todosocould constitute acriminal offence.
Trade inmetal scrap andradioactive materials wascontrolled byaStatemonopoly forsecurity reasons,
i.e.toensure thatexports didnotoriginate fromillegal sources andthatsafety requirements werebeing
observed inthehandling ofthese goods. Thisexport control measure didnotamount toaquantitative
restriction since anyparty interested inexporting metal scrap orradioactive materials could usethe
services ofthemonopoly operator.
73. Therepresentative ofEstonia confirmed thatallexport quotas andlicences andmeasures having
similar effect hadbeeneliminated andthatanyremaining export licensing requirements were fully
consistent withWTO provisions, including those contained inArticles XIandXVIIoftheGATT 1994.
[Estonia would maintain anexport monopoly onscrap metal andradioactive waste material until
31December 1999, bywhich dateitwould beeliminated.] TheWorking Party tooknoteofthis
commitment.
74. Therepresentative ofEstonia confirmed thatallexport quotas hadbeenabolished. Hefurther
confirmed thattheexport control measures would beconsistent withArticle XXandArticle XXIof
theGATT 1994andtheadministration ofsuchmeasures would beinfullconformity withthesearticles.WT/ACC/SPEC/EST/2/Rev.1
Page32
Healsoconfirmed thatcurrent export control measures onscrap metal andradioactive waste material
wereofatemporary nature, inconsistency withArticle XXandArticle XXIoftheGATT 1994, and
theadministration ofthese measures would beinfullconformity withthese articles. TheWorking
Party tooknoteofthiscommitment.
Export Subsidies
74. SomemembersoftheWorkingPartysoughtinformationaboutsubsidies,includingtaxincentives
related toexports, theactivities oftheExport Credit Fund, theconsideration ofwideranging useof
exportincentives,andexistingorplannedmeasurestotacklemarketdisturbancesorbalance-of-payments
problems. Therepresentative ofEstonia saidthatnotaxincentives, including taxholidays, existed
topromote exports. Heconfirmed thatloans fromtheExport Credit Fund carried 12to16percent
annual interest, comparable tothecommercial interest ratesof12to18percentineffect forshort-term
loans inEstonia in1996. Plans existed todevelop theFund intoanExport Credit andGuarantee Board
which would receive theinitial capital injection fromtheNational Budget. Estonia would notconsider
wideranging export incentives, but,duetoanincreasingly negative trade balance, hadtheintention
tointroduce moderate export incentive schemes. Enterprise- orsector-specific subsidies were not
envisaged; theschemes would beofhorizontal nature andallocations would bebased onobjective
economic criteria. Therepresentative ofEstonia added thattheincentives schemes would beapplied
inconformity withWTO requirements.
75. Therepresentative ofEstonia stated thatEstonia didnotmaintain anyexport subsidies which
metthedefinition ofaprohibited subsidy within themeaning ofArticle 3oftheAgreement onSubsidies
andCountervailing Measures, andwould notintroduce suchsubsidies inthefuture. andwould therefore
notinvoke theprovisions intheAgreement thatprovide fortheprogressive elimination ofsuchmeasures
within afixed period oftime. TheWorking Party tooknoteofthiscommitment.
3. Internal Policies Affecting Foreign Trade inGoods
Industrial Policy, including Subsidies
76. SomemembersoftheWorkingPartyrequesteddetailsonanysubsidiestoprivateorState-owned
enterprises andasked whether Estonia maintained anyindustry support tobenotified inaccordanceWT/ACC/SPEC/EST/2/Rev.1
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withtheAgreement onSubsidies andCountervailing Measures. Some members alsoasked Estonia
tostateitsattitude regarding future resort tosubsidies inthepursuit ofindustrial policy andclarification
oftheintention torestore historical trade links.
77. Therepresentative ofEstonia saidthattherestoration ofhistorical trade linkswould involve
freeandbalanced economic linkswithcountries offering Estonia thebestpossibilities andrealpotential
formutuallybeneficialeconomicpartnership.Estoniaconfirmedthatithadsomeprogrammesproviding
subsidies toindustries, inparticular theInnovation Foundation, which provided grants forresearch
anddevelopment activities, andtheLawonStateSupport forEntrepreneurship, which regulated State
support tosmall andmedium sized enterprises. Inthislatter casesupport -loans andloanguarantees
-weremade available byaneleven-member Council. TheEstonian Innovation Foundation wasanon-
profit organization, established bytheGovernment. Itsoperations werecoordinated bytheEstonian
Research andDevelopment Council, acollective advisory bodytotheGovernment. Themainfunctions
oftheFoundation weretoinitiate andfundStatetechnology programmes; finance projects toimprove
production technology atthepre-industrial stage; promote technical andtechnological research and
development; andtosupport thedevelopment ofscience andtechnology parks andproduction
infrastructure. TheFoundation provided grants forapplied research (upto50percentofproject costs)
andloans forindustrial projects (maximum 75percentofproject costs). Intheperiod 1991-1995,
theEstonianInnovationFoundationhadsupported214projects,providinggrantstotallingEEK12million
andloans ofEEK 80million; theFoundation 'sbudget for1997 amounted toEEK 20million.
78. Therepresentative ofEstonia confirmed thatanysubsidy programmes would beadministered
inlinewiththeAgreement onSubsidies andCountervailing Measures andallnecessary information
onnotifiableprogrammeswouldbeprovidedtotheCommitteeonSubsidiesandCountervailingMeasures
inaccordance withArticle 25oftheAgreement uponentryintoforceofEstonia 'sProtocol ofAccession.
EstoniaconsideredfinancialsupportprovidedbyitsInnovationFundtobeinlinewithcriteriaestablished
byArticle 8.2(a)oftheAgreement onSubsidies andCountervailing Measures. TheLawonState
Support forEntrepreneurship regulated Statesupport tosmall andmedium sizedenterprises. Support -
loans andloanguarantees -weremade available fromfunds managed byaneleven-member Council.
Therepresentative ofEstonia stated thathisGovernment would notify itsInnovation Fund uponentry
intoforce ofEstonia 'sProtocol ofAccession. TheWorking Party tooknoteofthiscommitment.WT/ACC/SPEC/EST/2/Rev.1
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Technical Barriers toTrade, Sanitary andPhytosanitary Measures
79. Some members oftheWorking Party inquired about theapplication ofinternational andnational
standards inEstonia andthecompliance withvarious provisions oftheAgreement onTechnical Barriers
toTrade (TBT) andonSanitary andPhytosanitary Measures (SPS). Regarding agriculture, some
members asked about theobjectives oftheFood Lawandtheresort tosanitary andphytosanitary
measures, withparticular reference toGovernment Regulations 300and340of1992.
80. Therepresentative ofEstonia supplied information ontechnical barriers totrade indocument
WT/ACC/EST/9 (Annex III)andanotification onsanitary andphytosanitary measures. Headded
thatatpresent nolegalactregulated theadoption andapplication ofstandards. Estonia hadconcluded
agreements withBSI(United Kingdom), DIN(Germany) andGOST R(Russia) onpossible adoption
ofnational standards ofthose countries asEstonian national standards. ,andEstonia hadnotconcluded
anyagreement withother countries inthisarea. TheNational Standards Board wasresponsible for
standardization issues. Estonia wasacorrespondent member oftheISO, anassociated member of
theIECandanaffiliated member ofCEN andCENELEC, andthishadencouraged theapplication
ofinternational andEuropean Standards. Current Estonian standards were adopted European and
international standards orbased onthose. Estonian standards were harmonized withtheregulation
oftheEuropean Union andweregenerally voluntary, except theapplication ofsome standards (e.g.
onpurchasing requirements ofmilk, onfiresafety, etc.)made mandatory byministries 'regulations
andinthecaseoftechnical regulations onspirits (white vodka) andconstruction cement. Current
Estonian standards werebased onISOstandards andharmonized regulations oftheEuropean Union
andweregenerally voluntary, except formandatory standards onspirits (white vodka) andconstruction
cement.ConformityassessmentswereorganizedinaccordancewithEuropeanrequirements(EN45000).
Former USSR criteria, theso-called GOST standards, remained temporarily valid insome areas but
werenolongermandatory.Allstandardsappliedequallytodomesticandimportedproducts.Acceptance
offoreign certification wasbased ontheprinciple ofmutual recognition between therelevant body
inEstoniaanditscounterpartinanothercountry.Draftstandardsandregistrationnoticeswerepublished
intheofficial bulletin oftheNational Standards Board "EVS Teataja" .TheNational Standards Board
ofEstonia wasresponsible forstandardization issues. Draft standards andregistration notices were
published in"Standards oftheRepublic ofEstonia".WT/ACC/SPEC/EST/2/Rev.1
Page35
81. Therepresentative ofEstonia saidthat"high quality" and"internationally competitive food"
werekeyobjectives citedinEstonia 'sFood Law, which wastoserve asabasisforfurther legislation
regulating foodhandling, quality, safety, control andinspection. ANational Food Board hadbeen
established todealwithallmatters concerning foodandnutrition policy, however, itstasks hadbeen
transferred totheMinistry ofAgriculture inaccordance withtheamendments totheFood Lawof
26June1996. Theresponsibilities oftheMinistry thusincluded planning andanalysis ofthestatus
offoodandnutrition,elaborationofrelevantstrategicproposals,draftinglawsonfoodandfoodhandling,
organization offoodsafety inspection, advising authorities certifying andtesting foodquality andsafety,
andelaboration andimplementation offoodmonitoring programmes. Estonia didnotenvisage the
useofminimum import prices, butnon-automatic import licensing might beemployed inthepursuit
offoodpolicy objectives.
82. Therepresentative ofEstonia added thatborder controls onplants andplant products were
effected bytheStatePlant Quarantine Inspection inaccordance withGovernment Regulation 300(of
17October1992)on"RegulationofarrangingphytosanitarycontrolontheStateborder"andamendments
tothisdoneon19October 1992 (Regulation No.340)and31March 1995 (Regulation No.147)as
wellastheLawonPlant Protection andtheTemporary Regulation ontheStateControl, Sale, Export
andImport oftheSeeds ofField Crops, andtheLawonVeterinary Services of1992. Sanitary and
phytosanitary measures andthework ofveterinary services wereinaccordance withtheCodex ofthe
OIE(Office International desEpizooties), inwhich Estonia hadbeenmember since1992. Goods subject
toveterinary controls, border check points, requirements forveterinary certificates andtheprocedures
forsettling claims werelaiddown inaDecree oftheMinister ofAgriculture of3August 1994 and
Government Regulation No.17of10April 1995. Theauthorities considered thehealth andsafety
provisions oftheFood Lawtobeconsistent withtheWTO Agreement onSanitary andPhytosanitary
Measures. TheFood Lawwould beamended toinclude acceptance ofexporters 'certificates, issued
inconformity withISO9000 andEN45000, attheborder.
83. Some members oftheWorking Party noted thatEstonia hadadopted nolaws, regulations or
administrative procedures relating totheimplementation andadministration oftheWTO obligations
ontechnical barriers totrade andthatregulations concerning SPSwere being developed. Intheir
view, these procedures should beenacted bythetimeofEstonia 'saccession totheWTO.WT/ACC/SPEC/EST/2/Rev.1
Page36
84. Therepresentative ofEstonia saidthatEstonia would provide copies ofdraftlegislation related
totechnical barriers totradeandsanitary andphytosanitary measures toMembers forcomment. Noting
thatEstonia didnotyethaveaspecific timetable forformulating andimplementing suchlegislation,
heconfirmed thatEstonia would eventually establish suchlegislation. Heconfirmed thatEstonia would
establish anEnquiry Point asrequired inArticle 10oftheWTO Agreement onTechnical Barriers
toTrade, andthatagencies drafting standards andconformity assessment orcertification procedures
would takeintoaccount existing international standards orguidelines prior todrafting domestic
legislation. These agencies would accept theCode ofGood Practice established inAnnex 3ofthe
TBTAgreement, notify WTO Members atthedraftstage andtakeintoaccount comments fromWTO
Members before finalizing regulations.
85. Therepresentative ofEstonia saidthatEstonia waspreparing adraft notification under
Article 15.2oftheTBTAgreement which would beprovided totheSecretariat by31March 1997.
Theauthorities hadprepared aDraft Standard Act;thisactwould provide thelegalandorganizational
basis forstandardization activities inEstonia. TheMinistry ofAgriculture would review theFood
Law, theLawonVeterinary Services, theLawonPlant Protection, theLawonGrain, theLawon
Consumer Protection andtheLawonCommon Health withaviewtoensure theirconformity with
WTO Agreements, including theAgreement onTechnical Barriers toTrade andtheAgreement on
Sanitary andPhytosanitary measures. Estonia waspreparing anotification under Article 15.3ofthe
TBTAgreement.
86. Therepresentative ofEstonia confirmed thatEstonia would apply allobligations under the
WTO Agreements onSanitary andPhytosanitary Measures andTechnical Barriers toTrade fromthe
dateofaccession without recourse toanytransition period. Therepresentative ofEstonia confirmed
thatprocedures togrant licences toimport foodwould befinalized bytheendof19961997andwould
beinfullconformity withtheprovisions oftheWTO Agreement onImport Licensing Procedures,
notably itsArticles 2,3and5.Therepresentative ofEstonia added thatlicences would notacttorestrict
thequantity ofimports; theywould begranted automatically withtheexceptions ofconditions related
tophytosanitary requirements. TheWorking Party tooknoteofthesecommitments. thiscommitment.WT/ACC/SPEC/EST/2/Rev.1
Page37
Trade-Related Investment Measures (TRIMs)
87. With reference totrade related investment measures, therepresentative ofEstonia confirmed
thathisGovernment applied theprinciple ofnational treatment. HesaidthatEstonia didnotmaintain
anymeasures inconsistent withtheTRIMs Agreement anddoesnotintend tointroduce anysuchnon-
conforming measures inthefuture andwould notinvoke provisions intheAgreement thatprovide
fortheprogressive elimination ofsuchmeasures within afixed period oftime. TheWorking Party
tooknoteofthiscommitment.
State Trading
88. Some members oftheWorking Party noted thatasignificant portion ofEstonia 'soutput and
traderemained inStatehands andthattobacco andalcohol hadbeensubject toStatemonopoly. Estonia
wasrequested tonotify under Article XVII anydefactoordejuretrademonopoly andtradeactivities
ofanyState-owned firmbenefitting from selective support orsubject toState intervention.
89. Therepresentative ofEstonia replied thatfollowing extensive privatization State-owned firms
accounted forlessthan5percentofdomestic trade. Theprocess ofprivatization wascontinuing and
shares inprivatized companies weretraded actively ontheTallinn Stock Exchange. Hestressed that
theinfluence oninternational trade oftheshares remaining inGovernment ownership wasdifficult
toestimate asEstonian lawdidnotallow thecustoms authorities todisclose enterprise-specific trade
information toanythirdparty except thetaxauthorities. Estimates based ontrade pershare werenot
meaningful inpractice because ofrapid changes inshare ownership. Therefore, hecould onlyconfirm
astrong tendency forState-ownership todecrease astheStatesoldshares tothepublic toencourage
thedevelopment ofEstonia 'sstock market. Withtheexception ofanexport monopoly onscrap metal
andradioactive scrap, Eesti Energia andEesti Polevkivi ,therepresentative ofEstonia saidthat
enterprises part-privatized through thesaleofState-owned shares didnotconstitute aState trading
enterprise inthesense ofArticle XVII since theyhadnospecial rights orprivileges inrelation toany
other enterprises.
90. Estonia notified under Article XVII oftheGATT 1994 initsInformation onState-trading
(WT/ACC/EST/9 (Annex IV))thataStatemonopoly hadbeenestablished onscrap metal tocontrol
metal trade forreasons consistent withArticle XXI(Security Exceptions). Thepurpose ofthescrapWT/ACC/SPEC/EST/2/Rev.1
Page38
metal monopoly (EMEX) wastoprevent serious crime; i.e.trade inmetal stolen from unguarded
installations andconstruction sites. Suchthefts hadcaused extensive damage todomestic infrastructure,
inparticular totheoperations ofEstonian Railways, Estonian Energy andEstonian Telephone. The
monopoly would alsobeusedtocontrol trade inradioactive scrap materials.
91. Therepresentative ofEstonia stated that,except forthemonopoly onexports ofmetal scrap,
noenterprises carried special orexclusive rights inEstonia. Heconfirmed thatthescrap metal monopoly
would beoperated inaccordance withtherelevant provisions oftheWTO Agreements, including
Articles XVII andXIoftheGATT 1994, andthatthemonopoly would beabolished withthereturn
tonormal conditions inthetrade ofmetal scrap inEstonia. Therepresentative ofEstonia further
confirmed that,intheapplication oflawsandregulations governing thetrading activities ofState-owned
enterprises andother enterprises withspecial andexclusive rights, hisGovernment would inall
circumstances actinfullconformity withtheprovisions oftheWTO Agreements, inparticular
Article XVII oftheGATT 1994, including theUnderstanding onthatArticle, andArticle XIofthe
GATT 1994; aswellasArticle VIIIoftheGATS. Hefurther confirmed thatEstonia would notify
anyenterprise falling within thescope ofArticle XVII. TheWorking Party tooknoteofthese
commitments.
FreeZones, Special Economic Areas
92. Therepresentative ofEstonia saidthatthere were currently nofreetrade zones inEstonia.
Government Procurement
93. Some members oftheWorking Party asked whether Estonia intended tojointheAgreement
onGovernment Procurement andrequested details about Estonia 'sprocurement legislation, itscoverage
anditsconformity withWTO principles. Therepresentative ofEstonia saidthattheLawonPublic
Procurement wasadopted inMay1995 andentered intoforce on1January 1996. TheLawwasin
linewithWTO provisions. TheGovernment hadestablished aPublic Procurement Office tocoordinate
andadminister public procurement activities. Thelegislation defined fiveprincipal methods of
procurement; opentender, two-stage tendering, negotiated tendering, request forquotations andsingle-
source procurement. Open tender implied thatanyinterested supplier could submit abidandno
negotiation would takeplacebetween theprocuring entity andanytenderer. Two-stage tendering wouldWT/ACC/SPEC/EST/2/Rev.1
Page39
beapplied when alltechnical andeconomic factors could notbeassessed apriori ortheprocurement
carried uncertainty regarding research anddevelopment costs. Negotiated tendering would beorganized
inprocurement involving State secrets orsubsequent toaninconclusive round ofopentender (no
bidsreceived oralltenders rejected) orincasepublic procurement involved urgent works orpublic
procurementwasperformedbythediplomaticrepresentationoftheRepublicofEstonia,i.e.procurement
taking place outside Estonia. Prior tothecommencement ofthetendering theprocuring entity should
notify thePublic Procurement Office inwriting about theperformance ofthetendering. Theprocuring
entity could request quotations when acompetitive market existed fortheproduct tobepurchased and
theprocedure would result inoffers below thegoing market price andafter therelevant written
notificationshadbeensenttotheoffice.Single-sourceprocurementcouldonlytakeplaceintheexistence
ofsolesuppliers, extraordinary needs ortimepressure; asacontinuation ofprevious procurement
contracts; andwhen thesupplier would carry outresearch anddevelopment resulting inprototypes
orinprocurement involving Statesecrets. Again, therelevant notice inwriting should besenttothe
Office prior tothetendering procedure. Inaccordance withtheamendments totheLawonPublic
Procurementof1January1997,theobservanceoftherulesestablishedintheLawonPublicProcurement
werenotobligatory when theobjective ofthepublic procurement was(i)public procurement involving
Statesecrets; (ii)printed matter andarticles ofvirtue; (iii)scientific research andspecial programmes;
(iv)elaboration oflegalactsandlegalassistance; (v)purchase ofanexisting building oranypartthereof
from anatural person; and(vi)public procurement established byother laws.
94. Therepresentative ofEstonia confirmed that,uponitsaccession, hisGovernment would notify
theCommittee onGovernment Procurement ofitsintention toaccede totheAgreement onGovernment
Procurement andseekobserver status inthatCommittee. Hefurther confirmed thatEstonia willwould
initiate negotiations formembership intheAgreement bytabling anentity offer prior to
31December 1998 [31December 1997]. Healsoconfirmed that,iftheresults ofthenegotiations
arewere satisfactory totheinterests ofEstonia andtheother members oftheAgreement, Estonia
will would complete negotiations formembership intheAgreement by31December 2000
[30June1998]. totheAgreement bytheyear2002. TheWorking Party took noteofthese
commitments.WT/ACC/SPEC/EST/2/Rev.1
Page40
Transit
95. Therepresentative ofEstonia saidthatEstonia hadjoined the"Convention onCustoms for
Goods inInternational Transit under theTIRCarnet" inApril 1993. Departure andarrival formalities
werecompleted atthecustoms inspection stations attheborder. Nocustoms duty, customs clearance
charge, salestaxorexcise taxwere levied ongoods intransit.
96. TherepresentativeofEstoniaconfirmedthathisGovernmentwouldapplyitslawsandregulations
governingtransitoperationsandwouldactinfullconformitywiththeprovisionsoftheWTOAgreement,
inparticular Article VoftheGATT 1994. TheWorking Party tooknoteofthiscommitment.
4. Agricultural Policies
97. Some members oftheWorking Party requested information onEstonia 'scurrent agricultural
policy, including main principles, andspecific policies regarding tariffs andtariff bindings, trade
measures inthegrainsector, safeguards, farmsupport programmes andincomes policy, pricecontrols,
export subsidies, privatization andpreferential trade arrangements.
98. Therepresentative ofEstonia saidthatthereturn oflandtoformer owners hadbeen a
cumbersome process butthemajor partofagriculture hadbeenprivatized. Remaining Stateenterprises
stillplayed animportant rôleinthedevelopment ofseeds andbreeds. Foreign ownership existed in
thefoodprocessing industry. Estonia hadnotariffs ornon-tariff measures affecting agricultural imports
andnosubsidies orpricecontrols onfood. However, theLawonMarket Arrangements would allow
theintroduction oftariffs. Theinitial offer forthemarket access negotiations (WT/L/60) included
nozero-tariff bindings inagriculture andEstonia indicated thatitstariffs would bebound atalevel
similar totheneighbouring countries. Estonia hadthepossibility, until1996 or1997, toregulate
agricultural imports withtariffs under theFreeTrade Agreement withtheEuropean Union. The1994
LawonGrainallowedtheGovernmenttorestrictgrainimportswhendomesticdemandwasfullycovered
bylocalproduction. However, quotas hadnotbeenimplemented untilnow. Therepresentative of
Estonia agreed thattheLawonGrain wasinconsistent withtheWTO andtheAgreement onAgriculture
andEstonia wasready totakeacommitment tobring theLawonGrain intoconformity withWTO
Agreements bythedateofaccession.WT/ACC/SPEC/EST/2/Rev.1
Page41
99. TherepresentativeofEstoniaconfirmedEstonia'sawarenessoftheWTOrequirementtoconvert
quantitative import restrictions intonottousequantitative restrictions andtorelyoncustoms duties
andsaidthatthisrulewould befollowed infuture policy. Therepresentative ofEstonia saidthatdrafting
ofaLawonFood Licensing hadnotbeencompleted asforeseen bytheendof1996duetoamendments
made intheFood Law. ThedraftLawonFood Licensing would befinalized bytheendof1997.
Hestressed thatlicensing arrangements forfoodimports would beofautomatic nature andwould not
haverestrictive effect onimports. Therepresentative ofEstonia added thatlicensing arrangements
forfoodimports would befinalized byDecember 1996. Licences would notacttorestrict thequantity
ofimports;theywouldbegrantedautomaticallywiththeexceptionofconditionsrelatedtophytosanitary
requirements.
100. Therepresentative ofEstonia added thatEstonia would notexclude anyfuture resort tospecial
safeguard measures, butwasnotabletoindicate anyspecific areaswhere suchmeasures might beused.
Some members oftheWorking Party noted thattheprovisions regarding special safeguard measures
intheAgreement onAgriculture were reserved forWTO members having undertaken tariffication
ofnon-tariff measures intheUruguay Round. Therefore, asanon-member oftheWTO atthattime,
Estonia would notbeentitled toresort tospecial safeguard measures. Amember sought acommitment
fromEstonia nottoinvoke special safeguard measures onanyagricultural products. Therepresentative
ofEstonia saidthatEstonia 'sunderstanding wasthatnon-Uruguay Round countries alsohadapossibility
tousesuchmeasures. Accordingly, Estonia would notexclude anyfuture resort tospecial safeguard
measures, buthewasnotabletoindicate anyspecific areas where suchmeasures might beused.
101. Therepresentative ofEstonia added thatthe1994 FreeTrade Agreement between Estonia,
Latvia andLithuania didnotcover HSChapters 1to24,butanagreement covering trade infarm
products would enter intoforce in1997.
[101. Therepresentative ofEstonia saidthatthelackoffinancial resources hadsofarprevented
subsidization ofagricultural exports, butEstonia would reserve therighttointroduce domestic support
programmes andexport subsidies. Anofferondomestic support andexport subsidies foragriculture
wascirculated tomembers oftheWorking Party inSeptember 1995(WT/SPEC/13) including export
subsidy ceilings forbutter, cheese, milkpowder, beef, pigmeatandpoultry meat; income support
measures subject toreduction commitments; andvarious "green box"measures. Estonia alsolisted
anumber ofcurrent support programmes itconsidered "green box"support inWT/ACC/EST/4. SomeWT/ACC/SPEC/EST/2/Rev.1
Page42
members oftheWorking Party didnotagree thatEstonia should beentitled toclaim protection for
programs ithadnotyetimplemented, suchasexport subsidy programs, orprograms thathadbeen
implemented afterEstonia applied foraccession totheWTO.]
[tobecompleted]
Trade inCivil Aircraft
102. Amember oftheWorking Party sought acommitment thatEstonia would implement the
Agreement onTrade inCivilAircraft without exceptions ortransition periods atthetimeofaccession.
103. TherepresentativeofEstoniaconfirmedthatEstoniawouldbecomeasignatorytotheAgreement
onTrade inCivil Aircraft upon accession totheWTO. TheWorking Party tooknoteofthis
commitment.
TRADE-RELATED ASPECTS OFINTELLECTUAL PROPERTY RIGHTS
104. Some members oftheWorking Party requested details about legislation andenforcement of
intellectual property rightprotection inEstonia andthecompatibility withrequirements oftheTRIPS
Agreement. Specific questions wereaddressed regarding exceptions fromnational orm.f.n. treatment,
non-patentable inventions, protection ofplantvarieties, patent holders 'rights, extension ofpatent terms,
granting ofcompulsory licences, judicial review, semiconductors, copyright, trademarks, industrial
design andcompetition andanti-trust.
105. Therepresentative ofEstonia saidthatEstonia deemed itsintellectual property rightprotection
compatible withtheTRIPS Agreement withnoexceptions totheprinciples ofnational andm.f.n.
treatment. ThePatent Office hadopened inMarch 1992. During 1992and1994Estonia hadenacted
aPatent Law; aUtility Model Law; aTrademark Law; andaCopyright Law, andprovisions related
toTRIPS-obligations hadbeenincluded intheLawonCompetition of7July1993. ADesign Protection
Lawwasinpreparation. Legislation onindustrial property wassaidtobemodelled oncorresponding
lawsoftheNordic countries. Estonia 'sCopyright LawandTrademark Lawallowed bilateral and
multilateral agreements towhich Estonia hadacceded totakeprecedence ifprovisions ofnational law
were inconsistent withtheprovisions ofsuchagreements.WT/ACC/SPEC/EST/2/Rev.1
Page43
106. In1994, Estonia hadbecome fullmember oftheWorld Intellectual Property Organization,
joined thePatent Cooperation Treaty andrestored itsmembership totheParis Convention forthe
Protection ofIndustrial Property andtheBerne Convention fortheProtection ofLiterary andArtistic
Works which Estonia originally joined in1924 and1927, respectively. TheMinistry ofCulture was
preparing Estonia 'saccession tothe1971 Geneva Convention andthe1961 Rome Convention. The
textoftheRome Convention hadbeentranslated intoEstonian andadraftLawtojointheConvention
would bepresented toParliament inthefirsthalfof1997. Estonia alsoplanned toaccede totheProtocol
relating totheMadrid Agreement onInternational Registration ofMarks andtheTrademark LawTreaty.
Inresponse tofurther questions, therepresentative ofEstonia saidthatplant varieties wereprotected
under the1994Variety Protection Lawandpatent protection formicroorganism strains could begranted
following Estonia 'saccession totheBudapest Treaty. Asof14September 1996, Estonia wasamember
oftheBudapestTreatyontheInternationalRecognitionoftheDepositofMicroorganismforthePurposes
ofPatent Procedure. From thatdate, theEstonian Patent Office accepted patent applications onthe
microorganism strains andthenovel useofmicroorganism strains. Estonia intended toaccede tothe
Union fortheProtection ofNewPlant Varieties (UPOV) andtheVariety Protection Lawwould be
harmonized withthe1991 UPOV Convention.
107. Certain inventions were non-patentable (inventions contrary topublic order andmorality,
treatment anddiagnostic methods practised onhumans oranimals, topology ofmicro-circuits and
substances derived from nuclear fission). Patent protection wasprovided toequipment, methods,
substances ormicro-organism strains, including theircombination andusefornovel purposes, in
accordance withArticle 6oftheEstonian Patent Law; noplans existed tointroduce supplementary
protection certificates forpharmaceutical andagricultural chemical products. Provisions regarding
apatentee 'sexclusive rights andexceptions were found inChapter IV(sections 15,17,45and46)
ofEstonia 'sPatent Law. There werenorestrictions onapatent owner 'srights toassign, transfer or
licence rights, butalicensing agreement needed toberegistered withthePatent Office tobevalid.
Compulsorylicencescouldbegrantedbycourtorderonly(section47).Estoniaconsideredthisprovision
tofulfilentirely therequirements ofArticle 31(b) and(c)oftheTRIPS Agreement. Patents werenot
extendable under present legislation. Provisions corresponding toArticle 34oftheTRIPS Agreement
(Process Patents: Burden ofProof) hadnotyetbeenestablished.
108. With respect tocopyright andrelated rights, therepresentative ofEstonia saidthatEstonia
applied theprinciple ofnational treatment intheprotection ofworks. TheCopyright LawalsoprotectedWT/ACC/SPEC/EST/2/Rev.1
Page44
works originating incountries where international treaties didnotapply, provided thattheothercountry
guaranteed similar protection totheworks ofEstonian authors orworks firstpublished inEstonia.
Therepresentative ofEstonia added thatthedrafting andenactment oflegislation onprotection of
semiconductor layout design wasscheduled for1998. Theconditions governing freeuseandfree
decompilation ofcomputer programs weresetoutinChapter IV,Sections 24and25,oftheCopyright
Law. TheLawdidnotcontain provisions oncompulsory licensing ofcopyrightable works andsound
recordings; fullretroactive protection wasprovided under Sections 38and74.Section 75prescribed
thelimitations onrights neighbouring oncopyright. Thecollection ofalevytocompensate forthe
useofaudiovisual works andsound recordings began inJanuary 1996.
109. With regard totrade marks, therepresentative ofEstonia saidthatsigns registrable astrade
marks wereenumerated inSection 6oftheTrade Marks Law. TheLawprotected wellknown marks
whether ornotregistered intheRepublic ofEstonia. Section 5oftheLawsetouttherights (and
limitations) granted toholders oftrademarks; registration satisfied notice oftheexclusive right, and
nospecificprovisionsrestrictedthelicensingortransferoftrademarks.Theregistrationofanassignment
wasnotmandatory, butitwasnotconsidered validwithout registration. Registrability ofatrademark
generally didnotdepend onuse.Applications werelodged withthePatents Office, itsrefusal toregister
atrademark (contravention ofsections 7and8)might becontested through theBoard ofAppeals of
Industrial Property. Decisions oftheAppeal Board could bebrought before acourt oflaw. Estonia
foresaw nochanges totheTrademark Lawatthisstage.
110. Therepresentative ofEstonia saidthatEstonia wasdrafting anewlawonindustrial design,
which would bepresented toParliament inFebruary 1997. Thelegislative aspects ofgeographical
indications oforigin would beprovided inthenewTrademark Law, which would bedrafted bythe
endof1997. Therepresentative ofEstonia saidthatEstonia wasdrafting newlawsonindustrial design,
geographical indications oforigin andsemiconductor layout designs. Forthetimebeing, geographical
indications oforigin wereprotected indirectly through theTrademark LawandtheLawonCompetition.
Taking intoaccount thatWIPO wasrevising theWashington Treaty onIntellectual Property inrespect
ofIntegrated Circuits, thedrafting oftheaLawonSemiconductor Layout Designs would nottake
placebefore theamendments totheWashington Treaty hadbeenmade. Trade secrets werenotprotected
byseparate legislation, butwere covered under Article 148oftheCriminal Code. Undisclosed
information wasprotected under theprovisions governing theabuse ofbusiness secrets intheLaw
onCompetition. Information submitted togovernment agencies wasprotected under thePublic ServiceWT/ACC/SPEC/EST/2/Rev.1
Page45
Law. TheSecond PartofEstonia 'sCompetition Law: Unfair Competition wasconsistent withthe
Paris Convention andArticle 40oftheTRIPS Agreement. TheCustoms Lawformed thelegalbasis
fortheprevention ofimports ofinfringing goods. Inaccordance withArticle 38oftheCustoms Law,
customs officers examined goods tocheck thattheir nature, origin, condition, quantity andvalue
corresponded totheinformation provided inthecustoms declaration. Proceedings could beinstituted
incases offorged, falsified orincomplete documentation. Amendments totheCriminal Code and
theCode ofInfringement ofAdministrative Lawtoinclude specific provisions onlegalprotection of
industrial property awaited approval byParliament.
111. Amember asked Estonia tobecome amember oftheGeneva Phonograms Convention, noting
thattherestoration ofprotection forcopyrighted works wasrequired under Article 18oftheTRIPS
Agreement. Protection ofindustrial designs, semiconductor chiplayout designs andnewplantvarieties
wasalsorequired under TRIPS. Onpatents, thismember asked forconfirmation thatacourt, indeciding
onacompulsory licence, would follow theprocedures outlined inArticle 8,paragraph 6ofitsbilateral
agreement withEstonia.
112. Inreply, therepresentative ofEstonia saidthatEstonia waspreparing toaccede tothe1971
Geneva Convention, the1961Rome Convention andtheUnion fortheProtection ofNewPlantVarieties
(UPOV). Estonia wasalsopreparing aDesign Protection Law, aLawonIndustrial Design andaLaw
onProtection ofSemiconductor Layout Design.
113. Therepresentative ofEstonia stated thatEstonia would fullyapply alltheprovisions ofthe
Agreement onTrade-Related Aspects ofIntellectual Property Rights bythedateofitsaccession to
theWTO,withoutrecoursetoanytransitionalperiod.TheWorkingPartytooknoteofthiscommitment.
POLICIES AFFECTING TRADE INSERVICES
114. Intheinterest ofaccelerating theprocess ofaccession totheWTO Agreement, therepresentative
ofEstonia submitted Estonia 'sdraftschedule ofspecific commitments inservices (document WT/L/59),
andaRevised Draft Schedule ofSpecific Commitments inTrade inServices (document
WT/ACC/EST/6). Certain services activities weresubject tolicensing; therequired licences andthe
corresponding regulatory authorities arelisted inTable 5.Estonia 'sschedule ofspecific commitments
onservices isreproduced intheannex tothisreport. Asindicated intheconclusions ofthisreport,WT/ACC/SPEC/EST/2/Rev.1
Page46
theWorking Party tooknoteoftheservices commitments ofEstonia. [Revert tothissection atan
appropriate time.]
115. Some members oftheWorking Party commented onEstonia 'sdraftschedule ofcommitments
ontradeinservices. Intheirview, theinitial offerwasnotsufficient sincethedocumentation indicated
anopen services régime andEstonia hadentered unbound inseveral modes ofdelivery. Specific
questions covered procedures orrestrictions ontheentryofforeign labour, including lawyers, architects
andaccountants andcross-border tradeinsuchservices; market access conditions, cross-border trade,
theeffect oftheeconomic stabilization programme, andrecent legislation inthefinancial services sector;
licensing ofoperators intelecommunications andairtransport; restrictions onforeign investment;
establishment oftrade offices andthecoverage ofservices inpreferential trading arrangements.
116. Therepresentative ofEstonia presented arevised services schedule undertaking further
commitments. According totherepresentative ofEstonia theunbound entries inthefirstdraftreflected
thelackofspecific regulations withregard tospecific services. Headded thatvisaregulations governed
thetemporary entry offoreigners; aresidence permit andawork permit wasrequired forforeign
personneltotakeupemploymentinEstonia.Theannualimmigrationquotacorrespondedto0.1percent
ofEstonia 'spopulation. Foreign lawyers, architects andaccountants could actasconsultants toEstonian
firms andthere werenolegalobstacles tothepurchase ofsuchservices abroad. Therepresentative
ofEstonia stated thatthefinancial services sector wasfreefrom restrictions andthatnorestrictive
measures wereplanned forthenearterm. Estonia confirmed thatforeign suppliers werenottreated
lessfavourably thannational providers offinancial services, withtheexception ofsome special
requirements concerning foreign-owned insurance companies indicated initsdraftSchedule ofSpecific
Commitments (WT/L/59). Applications toestablish representation offices orsubsidiaries inbanking
were addressed totheBank ofEstonia. Recent amendments infinancial sector legislation included
further regulations onprudential requirements andtheadoption ofanewCredit Institution Lawwith
additional instruments forthesupervisory authority andprovisions onmoney laundering. TheEstonian
securities market wasinitsearlystages ofdevelopment, butgrowth hadbeensubstantial. Thedemand
forinsurance hadbeenboosted bycompulsory insurance formotor vehicles.
117. Withregard totelecommunications, therepresentative ofEstonia saidthataforeign firmwould
need aforeign investment licence andregister asalegal person inEstonia todobusiness in
telecommunications. Aconcession conferring monopoly rights to"Eesti Telefon" (Estonian Telephone)WT/ACC/SPEC/EST/2/Rev.1
Page47
wasvalid untilyear2003. TheLawofBroadcasting (Article 22)limited foreign ownership and
possession ofbroadcasting transmitters tolessthan50percentoftheshares.
118. Withregard totransportation, therepresentative ofEstonia saidthatonlycompanies registered
inEstonia could obtain alicence forconveyance ofgoods andpassengers; aferry hadtobeowned
byacitizen ofEstonia oracompany withheadquarters inEstonia andhaveaminimum 51percent
national ownership. Theshipping company "Estline" currently hadamonopoly concession, validfor
afurther threeyears, ontheconveyance ofpassengers between Estonia andSweden. Aviation licences
were issued topermanent residents ofEstonia orlegal persons withminimum 51percentresident
ornational ownership. Aircarriers operating inEstonia included Estonian Airandseveral foreign
carriers.
119. Therepresentative ofEstonia stated thatEstonia didnotprohibit foreign services suppliers
fromestablishing tradeoffices inanysector andthatnoservices sectors andactivities werecompletely
closed toforeign companies.
120. Headded thatEstonia 'sfreetrade agreements mainly covered goods; nocurrent agreement
gaveanycountry preferential status inservices trade inEstonia.
[tobecompleted]
TRANSPARENCY
Publication ofInformation onTrade
121. Therepresentative ofEstonia saidthatArticle 2oftheLawonOfficial Journal RiigiTeataja
stipulated 14different groups oflegislative acts(normative acts)tothepublished intheOfficial Journal,
including: (i)Laws, decisions, anddeclaration ofParliament; (ii)decisions andregulations ofthe
President; (iii)regulations andorders ofGovernment; (iv)regulations ofministers; and(v)theannual
report andgeneral regulations oftheCentral Bank. Prompt publication oflawsandnormative acts
ensured thehighest transparency possible.WT/ACC/SPEC/EST/2/Rev.1
Page48
122. Therepresentative ofEstonia stated that,atthelatest fromthedateofaccession, alllawsand
normative actsrelated totrade would bepublished promptly intheofficial journal "Riigi Teataja".
Hestated further thatnolaworrule,etc.related tointernational trade would become effective prior
tosuchpublication. TheWorking Party tooknoteofthiscommitment.
Notification
123. Therepresentative ofEstonia saidthat,atthelatest upon entry intoforce oftheProtocol of
Accession, Estonia would submit allnotifications (other thanthose required tobemade onanadhoc
basis) required byanyAgreement constituting partoftheWTO Agreement. HisGovernment would
notify itsInnovation Fund atthelatest uponentry intoforce ofEstonia 'sProtocol ofAccession. Any
regulations subsequently enacted byEstonia which gaveeffect tothelawsenacted toimplement any
Agreement constituting partoftheWTO Agreement would alsoconform totherequirements ofthat
Agreement. TheWorking Party tooknoteofthiscommitment.
TRADE AGREEMENTS
124. Some members oftheWorking Party enquired about Estonia 'spreferential agreements with
theEuropean Union andEFTA member countries, Latvia andLithuania, further plans toconclude
suchagreements,includingapossibleBalticCustomsUnion,andtheexistenceofcountertradeagreements
withformer CMEA members. Questions were alsoraised concerning theconsistency ofEstonia 's
freetrade agreements withtherequirements ofArticle XXIV oftheGATT 1994, inparticular the
obligation tocover substantially allthetradebetween theconstituent territories. Amember requested
information onthescope ofEstonia 'spreferential agreements withparticular attention tosectors where
allmeasures andcharges ontrade hadnotyetbeeneliminated.
125. Therepresentative ofEstonia replied thatEstonia hadpreferential tradeagreements withEFTA;
theEU; Latvia andLithuania; Ukraine; theCzech Republic; theSlovak Republic andSlovenia.
Based ontheperiod January-March 1996, about 73percentofEstonia 'sforeign trade wassubject
topreferential agreements. TheFreeTrade Agreement withtheEuropean Union hadentered into
force on1January 1995, alsocovering newmembers Austria, Finland andSweden. Estonia 'sFree
Trade Agreement with theEuropean Communities hadbeen notified totheWTO indocument
WT/REG8/N/1 andwasbeing examined inaccordance withnormal practice (document WT/REG8/1WT/ACC/SPEC/EST/2/Rev.1
Page49
contained theAgreement anddocument WT/REG8/2 theTerms ofReference). TheFreeTrade
Agreement withEFTA States hadbeennotified totheWTO indocument WT/REG28/N/1; additional
relevant documentation included document WT/REG28/1 (theAgreement), document WT/REG28/2
(Standard Format) anddocument WT/REG28/3 (Terms ofReference). TheFreeTrade Agreement
withSlovenia hadbeennotified totheWTO indocument WT/REG37/N/1. Estonia hadmade proposals
toconclude freetradeagreements withPoland andHungary. Hestated thatEstonia hadnocountertrade
agreements withcountries incentral andeastern Europe. Thefreetradeagreements generally provided
granted dutyfreeimportation andexportation ofmanufactures industrial goods (HSChapters 25-97)
while trade inagricultural goods werecovered either inseparate agreements orrelated protocols; the
extent ofliberalization waslessthanforindustrial goods. Some quantitative andqualitative requirements
applied toEstonia 'sagricultural exports.
126. Therepresentative ofEstonia saidthat1994 FreeTrade Agreement between Estonia, Latvia
andLithuania didnotcover HSChapters 1to24,butanagreement covering trade infarmproducts
would enter intoforce on1January 1997. Henoted thatEstonia hadthepossibility, until1996 or
1997, toregulate agricultural imports with tariffs under theFree Trade Agreement with the
European Union. Should Estonia apply import duties inthefuture, heconfirmed thatpreferential
treatmentwouldonlybeaccordedinthecontextoffreetradeagreementsasprovidedforinArticleXXIV
oftheGATT 1994. Themainaimofapossible Baltic Customs Union would betheabolition ofinternal
customs controls; anassessment ofitseffect onEstonia 'sliberal tradepolicy wasnotpossible atthis
stage.
127. Therepresentative ofEstonia stated thathisGovernment would observe theprovisions ofthe
WTO including Article XXIV oftheGATT 1994andArticle VoftheGATS initstrade agreements,
andwould ensure thattheprovisions oftheseWTO Agreements fornotification, consultation andother
requirements concerning preferential trading systems, freetrade areas andcustoms unions ofwhich
Estonia wasamember weremetfromthedateofaccession, insofarastheseprovisions hadnotalready
beenmetbyoneoftheother Parties tosuchanagreement. TheWorking Party tooknoteofthese
commitments.WT/ACC/SPEC/EST/2/Rev.1
Page50
Conclusions
128. TheWorkingPartytooknoteoftheexplanationsandstatementsofEstoniaconcerningitsforeign
traderégime, asreflected inthisreport. TheWorking Party tooknoteoftheassurances given byEstonia
inrelation tocertain specific matters which arereproduced inparagraphs 15,20and2814and19
ofthisreport. TheWorking Party tooknoteofthecommitments given byEstonia inrelation tocertain
specific matters which arereproduced inparagraphs 22,30,31,35,45,51,57,63,66,68,70,77,
78,81,84,86,94,103,111,112and11524,30,34,35,39,52,58,64,70,73,75,78,86,87,
91,94,96,103,113,122,123and127ofthisreport. TheWorking Party tooknotethatthese
commitments hadbeenincorporated inparagraph 2oftheProtocol ofAccession ofEstonia totheWTO.
129. Having carried outtheexamination oftheforeign trade régime ofEstonia andinthelightof
theexplanations, commitments andconcessions made bytherepresentative ofEstonia, theWorking
Party reached theconclusion thatEstonia beinvited toaccede totheMarrakesh Agreement Establishing
theWTO under theprovisions ofArticle XII.Forthispurpose, theWorking Party hasprepared the
draftDecision andProtocol ofAccession reproduced intheAppendix tothisreport, andtakes note
ofEstonia 'sSchedule ofSpecific Commitments onServices (document .......) anditsSchedule of
Concessions andCommitments onGoods (document ........) thatareannexed totheProtocol. Itis
proposed thatthese textsbeadopted bytheGeneral Council when itadopts thereport. When the
Decision isadopted, theProtocol ofAccession would beopenforacceptance byEstonia which would
become aMember thirty daysafteritaccepts thesaidProtocol. TheWorking Party agreed, therefore,
thatithadcompleted itswork concerning thenegotiations fortheaccession ofEstonia totheMarrakesh
Agreement Establishing theWTO.
[TOBECOMPLETED]WT/ACC/SPEC/EST/2/Rev.1
Page51
ANNEX
Table 5
Activities subject tolicensing (Activity Licence)
Activity Issuing Authority
1.Management ofaviation andseatransport (exclude small
private boats), international carandrailway transport
(excludes intra-enterprise railtransport)Ministry ofTransport and
Communications
2.Geology-related activities, mining ofnatural resources Ministry ofEconomic Affairs
3.Production andtrade inobjects containing precious metals
andprecious stonesMinistry ofFinance
4.Production, possession andtrade inweapons, parts
thereof, ammunition, orpyrotechnic equipment; repairs of
weaponsMinistry ofInternal Affairs
5.Production andtrade inmedical narcotic, highly toxic,
radioactive, andpoisonous substances. Growing plants that
contain narcotic, highly toxic andpoisonous substances.
Purchase andpossessing ofmedical narcotic, highly toxic,
radioactive, andpoisonous substancesMinistry ofSocial Affairs
6.Allforms ofmedical treatment Ministry ofSocial Affairs
7.Production ofandtrade inmedicines Ministry ofSocial Affairs
8.Import andexport, aswellasproduction andwholesale of
tobacco andproduction thereof, andalcohol; andretail of
alcoholMinistry ofEconomic
Affairs; Municipal
Governments
9.Printing andminting ofmoney Bank ofEstonia
10.Printing ofsecurities Ministry ofFinance
11.Printing ofpostage stamps Ministry ofTransport and
Communications
12.Building andmanagement ofpublic communications '
networks ofanykindMinistry ofTransport and
Communications
13.Management ofaneducational institution ofahigher or
general level, bothvocational, orprofessional; together
withtherighttoissue nation wideaccepted certificates of
educationMinistry ofCulture and
Education
14.Management ofsecurity services 'firms, installation of
security, guard, andsignalization systemsMinistry ofInternal Affairs
15.Opening andmanagement ofprivate detective agencies Ministry ofInternal Affairs
16.Collation ofmeasuring instruments Ministry ofEconomic
AffairsMinistry ofFinance
17.Production andtrade inmicro-organisms, plants, and
animals created bygenetic engineeringMinistry ofAgriculture
18.Insurance Ministry ofFinanceWT/ACC/SPEC/EST/2/Rev.1
Page52
Activity Issuing Authority
19.Projecting, expertise andinspection ofbuildings,
construction contracting activitiesMinistry ofEnvironment;
Ministry ofAgriculture
20.Geodetic andcartographic activities Ministry ofEnvironment
21.Ecological expertise Ministry ofTransport and
Communications
22.Management ofenvironmentally harmful substances Ministry ofTransport and
Communications
23.Transmission orbroadcasting ofradio andtelevision
programmes bymeans oftheradio andtelevision networksMinistry ofCulture and
Education
24.Management ofcasinos (gambling) Ministry ofFinance
25.Reproduction oftheState symbols ortheirparts ofthe
Republic ofEstoniaState Chancellery
26.Exchange management Ministry ofFinance
27.Tourism Ministry ofEconomic Affairs
28.Ships'agencies andorganizing seatransport Ministry ofTransport
29.Lotteries Ministry ofTransport and
Communications
30.Assessment oflandproperty, selling andbuying land Ministry ofAgriculture
31.Activities onthesecurities 'market Ministry ofFinance
32.Veterinary activities, veterinary practice Ministry ofAgriculture
33.Temporary storage ofcommercial goods, customs-storage
proceduresMinistry ofFinance
34.Commercial trade (imports, re-exports), wholesale and
retail, andstorage ofimported fuelsandlubricantsMinistry ofEconomic Affairs
35.Production andrepairs ofweapons, ammunition, and
technology fornational defence purposesMinistry ofDefence
36.Experiments withanimals Ministry ofAgriculture
37.Management ofimports andexports, aswellasother
trade, services, repairs, anddissembling ofmotor vehicles
andtrailersMinistry ofEconomic Affairs
38.Assessment ofpersonal protective equipment types, quality
certification; assessment ofmachinery andequipment typesNational Labour Inspection
Board
39.Logopedical aid Ministry ofSocial Affairs
40.Conservation, restoration, creating ofrepairs projects, and
carrying outthecorresponding activities ontheobjects of
cultural importance (theobjects ofarchaeological,
architectural, technological, andhistorical value, objects of
finearts)Ministry ofCulture and
Education
41.Classification ofgoods andmeasuring ofgoods for
customs 'purposesMinistry ofFinanceWT/ACC/SPEC/EST/2/Rev.1
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APPENDIX
ACCESSION OFESTONIA
Draft Decision
TheGeneral Council ,
Having regard totheresults ofthenegotiations directed towards theestablishment oftheterms
ofaccession oftheRepublic ofEstonia totheMarrakesh Agreement Establishing theWorld Trade
Organization andhaving prepared aProtocol fortheAccession ofEstonia,
Decides ,inaccordance withArticle XIIoftheMarrakesh Agreement Establishing theWorld
Trade Organization, thattheRepublic ofEstonia mayaccede totheMarrakesh Agreement Establishing
theWorld Trade Organization ontheterms setoutinthesaidProtocol.WT/ACC/SPEC/EST/2/Rev.1
Page54
PROTOCOL OFACCESSION OFESTONIA
TOTHE MARRAKESH AGREEMENT ESTABLISHING THE
WORLD TRADE ORGANIZATION
DRAFT
TheWorld Trade Organization (hereinafter referred toasthe"WTO"), pursuant totheapproval
oftheGeneralCounciloftheWTOaccordedunderArticleXIIoftheMarrakeshAgreementEstablishing
theWorld Trade Organization (hereinafter referred toas"WTO Agreement"), andtheRepublic of
Estonia (hereinafter referred toas"Estonia"),
Taking noteoftheReport oftheWorking Party ontheAccession ofEstonia totheWTO in
document WT/ACC/EST/.... (hereinafter referred toasthe"Working Party Report"),
Having regard totheresults ofthenegotiations ontheaccession ofEstonia totheWTO,
Agree asfollows:
PartI-General
1. Upon entry intoforce ofthisProtocol, Estonia accedes totheWTO Agreement pursuant to
Article XIIofthatAgreement andthereby becomes aMember oftheWTO.
2. TheWTO Agreement towhich Estonia accedes shallbetheWTO Agreement asrectified,
amended orotherwise modified bysuchlegalinstruments asmayhaveentered intoforce before the
dateofentry intoforceofthisProtocol. ThisProtocol, which shallcomprise thecommitments referred
toinparagraph 116oftheWorking Party Report, shallbeanintegral partoftheWTO Agreement.
3. Except asotherwise provided forintheparagraphs referred toinparagraph 128116ofthe
Working Party Report, those obligations intheMultilateral Trade Agreements annexed totheWTO
Agreement thataretobeimplemented overaperiod oftimestarting withtheentry intoforce ofthat
Agreement shallbeimplemented byEstonia asifithadaccepted thatAgreement onthedateofits
entry intoforce.WT/ACC/SPEC/EST/2/Rev.1
Page55
4. Estoniamaymaintainameasureinconsistentwithparagraph1ofArticleIIoftheGATSprovided
thatsuchameasure isrecorded inthelisttextofArticle IIExemptions annexed tothisProtocol and
meets theconditions oftheAnnex totheGATS onArticle IIExemptions.
PartII-Schedules
5. TheSchedules annexed tothisProtocol shall become theschedule ofConcessions and
Commitments annexed totheGeneral Agreement onTariffs andTrade 1994 (hereinafter referred to
asthe"GATT 1994") andtheSchedule ofSpecific Commitments annexed totheGeneral Agreement
onTrade inServices (hereinafter referred toas"GATS") relating toEstonia. Thestaging ofconcessions
andcommitments listed intheSchedules shallbeimplemented asspecified intherelevant partsofthe
respective Schedules.
6. Forthepurpose ofthereference inparagraph 6(a)ofArticle IIoftheGATT 1994tothedate
ofthatAgreement, theapplicable dateinrespect oftheSchedules ofConcessions andCommitments
annexed tothisProtocol shallbethedateofentry intoforce ofthisProtocol.
PartIII-Final Provisions
7. ThisProtocol shallbeopenforacceptance, bysignature orotherwise, byEstonia until.........
8. ThisProtocol shallenter intoforce onthethirtieth dayfollowing thedayofitsacceptance.
9. ThisProtocol shallbedeposited withtheDirector-General oftheWTO. TheDirector-General
oftheWTO shallpromptly furnish acertified copyofthisProtocol andanotification ofacceptance
thereto pursuant toparagraph 7toeachmember oftheWTO andEstonia.
10. ThisProtocol shallberegistered inaccordance withtheprovisions ofArticle 102oftheCharter
oftheUnited Nations.
Done atGeneva this...dayof....onethousand ninehundred andninety seven, inasingle
copyintheEnglish, French andSpanish languages eachtextbeing authentic, except thataSchedule
annexed hereto mayspecify thatitisauthentic inonlyoneormore ofthese languages.WT/ACC/SPEC/EST/2/Rev.1
Page56
ANNEX
SCHEDULE CXLII -ESTONIA
PartI-Goods
[tobecompleted]
PartII-Services
[tobecompleted]