WORLD TRADE WT/REG41/1
29May1997
ORGANIZATION(97-2251)
Original: English Committee onRegional Trade Agreements
FREE TRADE AGREEMENT BETWEEN THE CZECH REPUBLIC
AND THE REPUBLIC OFBULGARIA
Communication from thePermanent Mission oftheCzech Republic
Thefollowing textreproduces theAgreement1between theCzech Republic andtheRepublic
ofBulgaria.
____________
1TheAnnexes andProtocols thereto have been submitted totheSecretariat forconsultation byinterested
Members (Office 3006).WT/REG41/1
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PREAMBLE
TheCzech Republic andtheRepublic ofBulgaria, hereinafter called theParties,
Having regard totheMemorandum between theGovernment oftheCzech Republic andthe
Government oftheRepublic ofBulgaria ontheliberalization ofthemutual trade relations of
22June1995,
Recalling theirintention toparticipate actively intheprocess ofeconomic integration asan
important dimension ofthestability ontheEuropean continent andexpressing theirpreparedness to
cooperate inseeking ways andmeans tostrengthen thisprocess,
Reaffirming theirfirmcommitment totheprinciples ofamarket economy, which constitutes
thebasis fortheirrelations,
RecallingtheirfirmcommitmenttotheFinalActoftheConferenceonSecurityandCo-operation
inEurope, theParis Charter, and,inparticular, theprinciples contained inthefinaldocument ofthe
Bonn Conference onEconomic Co-operation inEurope,
Resolved tothisendtoeliminate progressively theobstacles tosubstantially alltheirmutual
trade, inaccordance withtheprovisions oftheGeneral Agreement onTariffs andTrade 1994,
Firmly convinced thatthisAgreement willfoster theintensification ofmutually beneficial trade
relations between them andcontribute totheprocess ofintegration inEurope,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theParties
from theirobligations under other international agreements, especially theAgreement Establishing
theWorld Trade Organization,
Hereby agreed asfollows:
Article 1
Objectives
1. TheParties shall gradually establish afree-trade areainatransitional period ending on
1January1998atthelatestinaccordancewiththeprovisionsofthepresentAgreementandinconformity
withArticle XXIV oftheGeneral Agreement onTariffs andTrade 1994 andwiththeUnderstanding
ontheInterpretation ofArticle XXIV oftheGeneral Agreement onTariffs andTrade 1994.
2. Theobjectives ofthepresent Agreement are:
(a) topromote through theexpansion oftradetheharmonious development oftheeconomic
relations between theParties andthustofoster theadvance ofeconomic activity in
theParties, theimprovement ofliving andemployment conditions, andincreased
productivity andfinancial stability;
(b) toprovide fairconditions ofcompetition fortrade between theParties;
(c) tocontribute inthisway, bytheremoval ofbarriers totrade, totheharmonious
development andexpansion ofworld trade.WT/REG41/1
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CHAPTER I
Industrial Products
Article 2
Scope
Theprovisions ofthisChapter shallapply toindustrial products originating intheParties.
Theterm"industrial products" means forthepurpose ofthisAgreement theproducts falling within
Chapters 25to97oftheHarmonized Commodity Description andCoding System, withtheexception
oftheproducts listed inAnnex Iaandincluding theproducts listed inAnnex Ib.
Article 3
Customs duties onimports
1. Nonewcustoms dutyonimports shallbeintroduced intrade between theParties.
2. Customs duties onimports shallbeabolished inaccordance withtheprovisions inProtocol 1
ofthisAgreement.
Article 4
Basic duties
1. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbethemost favoured nation rateofdutyinforce on1January 1995.
2. If,afterentry intoforce ofthisAgreement, anytariff reduction isapplied onanergaomnes
basis, suchreduced duties shallreplace thebasic duties referred toinparagraph 1asfrom thatdate
when suchreductions areapplied.
3. Thereduced duties calculated inaccordance withparagraph 2shallbeapplied rounded tothe
firstdecimal place.
4. TheParties shallcommunicate toeachother theirrespective national basic ratesofduties in
accordance withtheprovisions ofparagraph 2.
Article 5
Charges equivalent toduties
1. Nonewcharge having aneffect equivalent toacustoms dutyonimports shallbeintroduced
intrade between theParties.
2. Allcharges having aneffect equivalent tocustoms duties onimports shallbeabolished onthe
dateoftheentry intoforce ofthisAgreement, except asprovided forinAnnex II.WT/REG41/1
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Article 6
Fiscal duties
Theprovisions ofArticle 3shallalsoapply tocustoms duties ofafiscal nature.
Article 7
Customs duties onexports andcharges having equivalent effect
1. Nonewcustoms dutyonexports orcharge having equivalent effect shallbeintroduced intrade
between theParties.
2. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
customs duties onexports andcharges having equivalent effect, except asprovided forinAnnex III.
Article 8
Quantitative restrictions onimports andmeasures having equivalent effect
1. Nonewquantitative restrictions onimports ormeasure having equivalent effect shall be
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having equivalent effect onimports ofproducts
originating intheParties shallbeabolished onthedateoftheentry intoforce ofthisAgreement, except
asprovided forinAnnex IV.
Article 9
Quantitative restrictions onexports andmeasures having equivalent effect
1. Nonewquantitative restrictions onexports ormeasure having equivalent effect shall be
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having equivalent effect onexports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement, except
asprovided forinAnnexes VaandVb.
Article 10
Information procedure ondrafttechnical regulations
1. TheParties shallnotify eachother attheearliest practicable stage andinaccordance withthe
provisions assetoutinAnnex VIofthedrafttechnical regulations anddraftamendments thereto, which
theyintend toissue.
2. TheJointCommittee shalldecide onthedateforimplementing theprovisions inparagraph 1.WT/REG41/1
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CHAPTER II
Agricultural Products
Article 11
Scope
Theprovisions ofthisChapter shallapply toagricultural products originating intheParties.
Theterm"agricultural products" means forthepurpose ofthisAgreement theproducts falling within
Chapters 1to24oftheHarmonized Commodity Description andCoding System, withtheexception
oftheproducts listed inAnnex Ibandincluding theproducts listed inAnnex Ia.
Article 12
Exchange ofconcessions
1. TheParties grant eachother theconcessions, specified inProtocol 2inaccordance with
provisions ofthisChapter.
2. Taking account of:
- theroleofagriculture intheireconomies;
- thedevelopment oftrade inagricultural products between theParties;
- theparticular sensitivity oftheagricultural products;
- therules oftheiragricultural policies;
- therespective provisions oftheAgreement Establishing theWorld Trade Organization
theParties shallexamine thepossibilities ofgranting eachother further concessions.
Article 13
Concessions andagricultural policies
1. Without prejudice totheconcessions granted under Article 12,theprovisions ofthisChapter
shallnotrestrict inanywaythepursuance oftherespective agricultural policies oftheParties orthe
taking ofanymeasures under suchpolicies, including theimplementation oftheAgreement Establishing
theWorld Trade Organization.
2. TheParties shallnotify eachothers changes intheirrespective agricultural policies pursued
ormeasures applied which mayaffect theconditions ofagricultural trade between them asprovided
forinthisAgreement. Prompt consultations shallbeheld, upon request ofanyParty, toexamine the
situation.WT/REG41/1
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Article 14
Specific safeguards
Notwithstanding other provisions ofthisAgreement and,inparticular, Article 27,if,given
theparticular sensitivity oftheagricultural markets, imports ofproducts originating inaParty, which
aresubject toconcessions granted under thisAgreement, cause serious disturbance tothemarkets of
theother Party, theParty concerned shallenter intoconsultations immediately tofindtheappropriate
solution. Pending suchsolution, theParty concerned maytakemeasures itdeems necessary.
Article 15
Veterinary, Health- andPhytosanitary Measures
1. Measures concerning veterinary andphytosanitary control willbeharmonized withEuropean
Union legislation andbetween theParties.
2. Theveterino-sanitary measures andthework oftheveterinary services willbeinaccordance
withtheOffice International desEpizoodies Codex andother international conventions inthisfield.
3. TheParties commit themselves nottointroduce discriminatory orotherunusual measures which
would limittheflowofinformation, animals, plants orproducts.
CHAPTER III
General Provisions
Article 16
Rules oforigin andco-operation incustoms administration
1. Protocol 3laysdown therulesoforigin andrelated methods ofadministrative co-operation.
2. TheParties shalltakeappropriate measures, including regular reviews bytheJointCommittee
andarrangements foradministrative co-operation, toensure thattheprovisions ofProtocol 3and
Articles 3to9,12,17and28ofthisAgreement areeffectively andharmoniously applied, andtoreduce,
asfaraspossible theformalities imposed ontrade, andtoachieve mutually satisfactory solutions to
anydifficulties arising from theoperation ofthose provisions.
3. Themutual assistance between administrative authorities incustoms matters shalltakeplace
inaccordance withtheprovisions ofProtocol 4.
Article 17
Internal taxation
1. TheParties shallrefrain fromanymeasure orpractice ofaninternal fiscal nature establishing,
whether directly orindirectly, discrimination between theproducts originating intheParties.
2. Products exported totheterritory ofoneoftheParties maynotbenefit from repayment of
internal taxation inexcess oftheamount ofdirect orindirect taxation imposed onthem.WT/REG41/1
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Article 18
General exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified onthegrounds ofpublic morality, public policy orpublic security; theprotection
ofhuman, animal orplantlifeorhealth; theprotection ofnational treasures possessing artistic, historic
orarchaeological value; protection ofintellectual property orrules relating togoldorsilver orthe
conservation ofexhaustible natural resources ifsuchmeasures aremade effective inconjunction with
restrictionsondomesticproductionorconsumption.Suchprohibitionsorrestrictionsshallnot,however,
constitute ameans ofarbitrary discrimination oradisguised restriction ontrade between theParties.
Article 19
Security exceptions
Nothing inthisAgreement shallprevent aParty fromtaking anyappropriate measure which
itconsiders necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;
(b) fortheprotection ofitsessential security interests orfortheimplementation of
international obligations ornational policies;
(i) relating tothetraffic inarms, ammunition andimplements ofwar,provided
thatsuchmeasures donotimpair theconditions ofcompetition inrespect of
products notintended forspecifically military purposes, andtosuchtraffic
inother goods, materials andservices asiscarried ondirectly orindirectly
forthepurpose ofsupplying amilitary establishment;
or
(ii) relating tothenon-proliferation ofbiological andchemical weapons, nuclear
weapons orother nuclear explosive devices;
or
(iii) taken intimeofwarorother serious international tension.
Article 20
State monopolies
1. TheParties shalladjust progressively anyState monopoly ofcommercial character soasto
ensure thatby1July1999nodiscrimination regarding theconditions under which goods areprocured
andmarketed exists between nationals oftheParties.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheParties, inlaworinfact,either directly orindirectly supervise, determine orappreciably influence
imports orexports between theParties. These provisions shalllikewise apply tomonopolies delegated
byaParty toother bodies.WT/REG41/1
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Article 21
Payments
1. Payments infreely convertible currencies relating totrade ingoods between theParties and
thetransfer ofsuchpayments totheterritory oftheParty tothisAgreement, where thecreditor resides,
shallbefreefrom anyrestrictions.
2. ThePartiesshallrefrainfromanyexchangeoradministrativerestrictionsonthegrant,repayment
oracceptance ofshortandmedium termcredits related totradeingoods inwhich aresident participates.
3. Notwithstandingtheprovisionsofparagraph2,untilArticleVIIIoftheArticlesoftheAgreement
oftheInternational Monetary Fund becomes applicable forsome oftheParties, theParties reserve
therighttoapply exchange restrictions onthegrant oracceptance ofshort andmedium termcredits
related totradeingoods totheextent permitted according totheirstatus under theInternational Monetary
Fund, provided thatthese restrictions areapplied inanon-discriminatory manner withregard tothe
origin oftheproducts andthattheyarenotapplied onlytospecific products orkindofproducts. The
restrictions shallbeoflimited duration andshallbeeliminated when conditions nolonger justify their
maintenance. AParty shallinform theother Party promptly oftheintroduction ofsuchmeasures and
ofanychanges therein.
Article 22
Rules ofcompetition concerning undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofar asthey
mayaffect trade between theParties:
(a) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;
(b) abuse byoneormoreundertakings ofadominant position intheterritories oftheParties
asawhole orinsubstantial partthereof.
2. Theprovisions ofparagraph 1shallapply totheactivities ofallundertakings including public
undertakings andundertakings towhich theParties grant special orexclusive rights. Undertakings
entrusted withtheoperation ofservices ofgeneral economic interest orhaving thecharacter ofarevenue-
producing monopoly, shallbesubject toprovisions ofparagraph 1insofar astheapplication ofthese
provisions doesnotobstruct theperformance, inlaworfact,oftheparticular public tasks assigned
tothem.
3. With regard toproducts referred toinChapter IItheprovisions stipulated inparagraph 1(a)
shallnotapply tosuchagreements, decisions andpractices which form anintegral partofanational
market organization.
4. IfaParty considers thatagiven practice isincompatible withparagraphs 1,2and3andif
suchpractice causes orthreatens tocause serious prejudice totheinterest ofthatParty ormaterial
injury toitsdomestic industry, itmaytakeappropriate measures under theconditions andinaccordance
withtheprocedure setoutinArticle 31.WT/REG41/1
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Article 23
State aid
1. Anyaidgranted byaStatebeing aParty tothisAgreement orthrough Stateresources inany
formwhatsoever which distorts orthreatens todistort competition byfavouring certain undertakings
ortheproduction ofcertain goods shall, insofarasitmayaffect trade between theParties, be
incompatible withtheproper functioning ofthisAgreement.
2. Theprovisions ofparagraph 1shallnotapply toproducts referred toinChapter II.
3. TheJointCommittee shall, atthelatest by1July1997, adopt thecriteria onthebasisofwhich
thepractices contrary toparagraph 1shallbeassessed, aswellastherulesfortheirimplementation.
4. TheParties shallensure transparency intheareaofStateaid,interalia,byreporting annually
toeachother onthetotalamount andthedistribution oftheaidgiven andbyproviding totheother
Party, upon request, information onaidschemes andonparticular individual cases ofState aid.
5. IfaParty considers thataparticular practice, including thatinagriculture:
- isincompatible withtheterms ofparagraph 1,andisnotadequately dealtwithunder
theimplementing rules referred toinparagraph 3,
or
- intheabsence ofsuchrules, andifsuchpractice causes orthreatens tocause serious
prejudice totheinterest ofthatParty ormaterial injury toitsdomestic industry,
itmaytakeappropriate measures under theconditions ofandinaccordance withtheprovisions of
Article 31.Suchappropriate measures mayonlybetaken inconformity withtheprocedures andunder
theconditions oftheAgreement Establishing theWorld Trade Organization andanyother relevant
instrument negotiated under itsauspices which areapplicable between theParties.
Article 24
Public procurement
1. TheParties consider theliberalization oftheirrespective public procurement markets asan
objective ofthisAgreement.
2. TheParties shallprogressively develop theirrespective regulations forpublic procurement
withaviewtogrant suppliers oftheother Party, bytheendof1998 atthelatest, access tocontract
award procedures ontheirrespective public procurement markets according totheprovisions ofthe
Agreement onGovernment Procurement doneatMarrakesh on15April 1994.
3. TheJointCommittee shallexamine developments related totheachievement oftheobjectives
ofthisArticle andmayrecommend practical modalities ofimplementing theprovisions ofparagraph 2
soastoensure freeaccess, transparency andfullbalance ofrights andobligations.WT/REG41/1
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4. Duringtheexaminationreferredtoinparagraph3,theJointCommitteemayconsider,especially
inthelightofdevelopmentsinthisareaininternationalrelations,thepossibilityofextendingthecoverage
and/or thedegree ofthemarket opening provided forinparagraph 2.
Article 25
Protection ofintellectual property
1. TheParties shall grant andensure protection ofintellectual property rights onanon-
discriminatory basis, including measures forgranting andenforcing ofsuchrights. Theprotection
shallbegradually improved onalevelcorresponding tothesubstantive standards ofthemultilateral
agreements which arespecified inAnnex VIIbefore 1July1999.
2. Forthepurposes ofthisAgreement "intellectual property protection" includes inparticular
protection ofcopyright, comprising computer programs anddatabases, andneighbouring rights, trade
marks, geographical indications, industrial designs, patents, topographies ofintegrated circuits, aswell
asundisclosed information onknow-how.
3. TheParties shallco-operate inmatters ofintellectual property. They shallhold, uponrequest
ofanyParty, expert consultations onthese matters, inparticular, onactivities relating totheexisting
ortofuture international conventions onharmonization, administration andenforcement ofintellectual
property andonactivities ininternational organizations, suchastheAgreement Establishing theWorld
Trade Organization, World Intellectual Property Organization, aswellasrelations ofParties withthird
countries onmatters concerning intellectual property.
Article 26
Dumping
IfaParty finds thatdumping within themeaning ofArticle VIoftheGeneral Agreement on
Tariffs andTrade 1994 istaking place intrade relations governed bythisAgreement, itmaytake
appropriate measures against thatpractice inaccordance withArticle VIoftheGeneral Agreement
onTariffs andTrade 1994andtheAgreement onImplementation ofArticle VIoftheGeneral Agreement
onTariffs andTrade 1994 under theconditions andinaccordance withtheprocedure laiddown in
Article 31.
Article 27
General safeguards
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products inthe
territory oftheimporting Party, or
(b) serious disturbances inanyrelated sector oftheeconomy ordifficulties which could
bring about serious deterioration intheeconomic situation ofaregion,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 31.WT/REG41/1
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Article 28
Structural adjustment
1. Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 3may
betaken byanyoftheParties intheform ofincreased customs duties.
2. These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce important social problems.
3. Customs duties onimports applicable intheParty concerned toproducts originating inthe
other Party introduced bythese measures maynotexceed 25percentadvalorem .Thetotalvalue
ofimports oftheproduct which aresubject tothesemeasures maynotexceed 15percentoftotalimports
ofindustrial products fromtheotherParty asdefined inChapter Iduring thelastyearforwhich statistics
areavailable.
4. These measures shallbeapplied foraperiod notexceeding fiveyears. Theyshallcease toapply
by31December 2000 atthelatest.
5. Nosuchmeasures canbeintroduced inrespect ofaproduct ifmore thanthree years elapsed
sincetheeliminationofalldutiesandquantitativerestrictionsorchargesormeasureshavinganequivalent
effect concerning thatproduct.
6. TheParty concerned shallinform theother Party ofanyexceptional measures itintends to
takeand,upon request oftheother Party, consultations shallbeheldwithin theJointCommittee on
suchmeasures andthesectors towhich theyapply priortheirintroduction. When taking suchmeasures
theParty concerned shallprovide theJointCommittee withacalendar fortheelimination ofthecustoms
duties introduced under thisArticle. Thiscalendar shallprovide foraphasing outoftheseduties starting
atthelatest twoyears aftertheirintroduction, atequal annual rates. TheJointCommittee maydecide
onadifferent calendar.
Article 29
Re-export andserious shortage
Where compliance withtheprovisions ofArticles 7and9leads to:
(a) re-export towards athirdcountry against which theexporting Party maintains forthe
product concerned quantitative export restrictions, export duties ormeasures orcharges
having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party,
andwhere thesituations referred toabove giveriseorarelikely togiverisetomajor difficulties for
theexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedures laiddown inArticle 31.WT/REG41/1
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Article 30
Fulfilment ofobligations
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallseetoitthattheobjectives setoutinthisAgreement areattained.
2. IfaParty considers thattheother Party hasfailed tofulfilanobligation under thisAgreement,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 31.
Article 31
Procedure fortheapplication ofsafeguard measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthisArticle, theParties shallendeavour tosolve anydifferences between them through
direct consultations.
2. Intheevent ofaParty subjecting imports ofproducts liable togiverisetothesituation referred
toinArticle 27toanadministrative procedure having asitspurpose therapid provision ofinformation
onthetrend oftrade flows, itshallinform theother Party.
3. Without prejudice toparagraph 7,aParty which considers resorting tosafeguard measures
shallpromptly notify theotherParty thereof andsupply allrelevant information. Consultations between
theParties shalltakeplace without delay intheJoint Committee withaviewtofinding asolution.
4. (a) With regard toArticles 26,27and29,theJoint Committee shallexamine thecase
orthesituation andmaytakeanydecision needed toputanendtothedifficulties
notified bytheParty concerned. Inthecaseoftheabsence ofsuchdecision within
thirty daysofthematter being referred totheJointCommittee, theParty concerned
mayadopt themeasures necessary inorder toremedy thesituation.
(b) With regard toArticle 30,theParty concerned maytakeappropriate measures after
theconsultations havebeenconcluded oraperiod ofthree months haselapsed from
thedateoffirstnotification totheother Party.
(c) With regard Articles 22and23,theParty concerned shallgivetheJoint Committee
alltheassistance required inorder toexamine thecaseand,where appropriate, eliminate
thepractice objected to.IftheParty inquestion failstoputanendtothepractice
objected towithin theperiod fixed bytheJointCommittee oriftheJointCommittee
failstoreach anagreement within thirty working daysofthematter being referred
toit,theParty concerned mayadopt theappropriate measures todealwiththe
difficulties resulting from thepractice inquestion.
5. Thesafeguard measures taken shallbeimmediately notified totheother Party. They shall
berestricted withregard totheirextent andtotheirduration towhatisstrictly necessary inorder to
rectify thesituation giving risetotheirapplication andshallnotbeinexcess oftheinjury caused by
thepractice orthedifficulty inquestion. Priority shallbegiven tosuchmeasures which willleast
disturb thefunctioning ofthisAgreement.WT/REG41/1
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6. Thesafeguard measures taken shallbethesubject ofperiodic consultations within theJoint
Committee withaviewtotheirrelaxation assoonaspossible, orabolition when conditions nolonger
justify theirmaintenance.
7. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theParty concerned may,inthecasesofArticles 26,27and29,apply forthwith theprovisional measures
strictly necessary toremedy thesituation. Themeasures shallbenotified without delay andconsultations
between theParties shalltakeplace assoonaspossible within theJoint Committee.
Article 32
Balance ofpayments difficulties
1. TheParties shallendeavour toavoid theimposition ofrestrictive measures including measures
relating toimports forbalance ofpayments purposes.
2. Where oneoftheParties isinserious balance ofpayments difficulties, orunder imminent threat
thereof, theParty concerned may,inaccordance withtherelevant provisions oftheGeneral Agreement
onTariffs andTrade 1994 adopt restrictive measures, including measures related toimports, which
shallbeoflimited duration andmaynotgobeyond whatisnecessary toremedy thebalance ofpayments
situation. Themeasures shallbeprogressively relaxed asbalance ofpayments conditions improve and
theyshallbeeliminated when conditions nolonger justify theirmaintenance. TheParty concerned
shallinform theother Party forthwith oftheirintroduction and,whenever practicable, ofacalendar
fortheirremoval.
Article 33
Evolutionary clause
1. Where aParty considers thatitwould beuseful intheinterests oftheeconomies oftheParties
todevelopanddeepentherelationsestablishedbythisAgreementbyextendingthemtofieldsnotcovered
thereby, itshall submit areasoned request totheother Party. TheParties mayinstruct theJoint
Committee toexamine sucharequest and,where appropriate, tomake recommendations, particularly
withaviewtoopening negotiations.
2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
orapproval bytheParties inaccordance withtheirnational legislation.
Article 34
TheJoint Committee
1. TheJointCommittee ishereby established andshallconsist ofamember oftheGovernment
oftheCzech Republic, ontheonehand, andofamember oftheGovernment oftheRepublic ofBulgaria,
ontheother hand.
2. Theimplementation ofthisAgreement shall besupervised andadministered bytheJoint
Committee.
3. Forthepurpose oftheproper implementation ofthisAgreement, theParties shallexchange
information and,uponrequest ofanyParty, shallholdconsultations within theJointCommittee. TheWT/REG41/1
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Joint Committee shallkeepunder review thepossibility offurther removal oftheobstacles totrade
between theParties.
4. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theJoint Committee maymake recommendations.
Article 35
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butatleastonceayear. Each Party mayrequest thatameeting beheld.
2. TheJoint Committee shallactbycommon agreement.
3. Ifarepresentative intheJoint Committee ofaParty has,under thereservation, accepted a
decision subject tothefulfilment ofconstitutional requirements, thedecision shallenter intoforce,
ifnolaterdateiscontained therein, onthedaythelifting ofthereservation isnotified.
4. Forthepurpose ofthisAgreement theJointCommittee shalladopt itsrulesofprocedure which
shall, interalia,contain provisions forconvening meetings andforthedesignation oftheChairman
andhistermofoffice.
5. TheJoint Committee maydecide tosetupsuchsub-committees andworking groups asit
considers necessary toassist itinaccomplishing itstasks.
Article 36
Trade relations governed bythisandother Agreements
1. ThisAgreement shallapply totrade relations between theCzech Republic andtheRepublic
ofBulgaria.
2. ThisAgreementshallnotpreventthemaintenanceorestablishmentofcustomsunions,free-trade
areasorarrangements forfrontier tradetotheextent thatthesedonotnegatively affect thetraderegime
and,inparticular, theprovisions concerning rules oforigin provided forbythisAgreement.
Article 37
Annexes andProtocols
1. TheAnnexes IatoVIIandtheProtocols 1to4tothisAgreement arehereby made anintegral
partofthisAgreement.
2. TheJoint Committee maydecide toamend theAnnexes andProtocols. Inthiscasethe
amendments shallenterintoforce onthedateofareceipt ofthelatter diplomatic noteconfirming their
approval bytheGovernment ofarespective Party.WT/REG41/1
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Article 38
Amendments
Amendments tothisAgreement other thanthose referred toinparagraph 2ofArticle 37shall
enterintoforce onthedateofareceipt ofalastdiplomatic noteconfirming thatallprocedures required
bythenational legislation ofeachParty forentry intoforce oftheamendments which havebeen
completed.
Article 39
Entry intoforce
1. ThisAgreement issubject totheratification andshallenterintoforce onthedateofexchange
oftheinstruments ofratification.
2. Theexchange oftheinstruments ofratification shalltakeplace inSofia.
3. TheParties shallapply thisAgreement provisionally from1January 1996 ifthisAgreement
cannot enter intoforce by1January 1996.
Article 40
Validity oftermination
Each Party mayterminate thisAgreement byawritten notification totheother Party. The
termination shalltakeeffect onthefirstdayoftheseventh month following thedateonwhich the
notification wasreceived bytheother Party.
INWITNESS WHEREOF theundersigned plenipotentiaries, being dulyauthorized thereto,
havesigned thepresent Agreement.
Done atPrague this15dayofDecember onethousand ninehundred andninety five,intwo
originals, inEnglish language, bothtextsbeing equally authentic.
FortheCzech Republic FortheRepublic ofBulgariaWT/REG41/1
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RECORD OFUNDERSTANDINGS
1. With regard totheArticles 8and9ofthisAgreement theParties confirm thatbesides the
exceptions listed inAnnex IVandAnnexes VaandVbtheyapply measures resulting from their
international multilateral obligations inaccordance withArticles 18and19ofthisAgreement.
2 Bytheendof1998atthelatest, theParties shall, intheJointCommittee, examine theimpact
ofagricultural concessions provided bythisAgreement onthemutual trade. TheParties shallconsider
thepossibilities offurther liberalization inthisfieldafter1January, 1999, having inmind theinterest
oftheRepublic ofBulgaria ontheaccess totheCentral European FreeTrade Agreement.
3. Thediagonal cumulation laiddown inArticle 4ofProtocol 3mayonlybeapplied when the
countries mentioned inthesaidArticle haveaFreeTrade Agreement oranAgreement establishing
Customs Union, containing identical rulesoforigin, withbothParties. Forthecountries notcomplying
withthiscondition onthedateofentry intoforce ofthisAgreement, Article 4shallapply from the
dateofentry intoforce either ofafreetrade agreement oranagreement establishing acustoms union
orofanamendment ofsuchanagreement, containing identical rules oforigin, between thatcountry
andtheParties. Eachreference totheArticle 4oftheProtocol 3shallapply according tothisRecord
ofUnderstandings.
4. Theprohibition ofdrawback of,orexemption from, customs duties laiddown inArticle 15
ofProtocol 3shallbetemporarily derogated untilitwillbeapplied intheframework ofthediagonal
cumulation between bothParties andtheEuropean Union. EachParty maydecide onpartial application
ofthesaidArticle infullaccordance withthepossible modalities ofitspartial application withthe
European Union.