RESTRICTED
WORLD TRADE WT/REG30/1
24July1996
ORGANIZATION(96-2923)
Original: English
FREE TRADE AGREEMENT BETWEEN
THE EFTA STATES AND THE REPUBLIC OFLITHUANIA
Thefollowing textreproduces theFreeTrade Agreement between theEFTA States andthe
Republic ofLithuania.1
_________________________
FREE TRADE AGREEMENT BETWEEN
THE EFTA STATES AND THE REPUBLIC OFLITHUANIA
PREAMBLE
TheRepublic ofIceland, thePrincipality ofLiechtenstein, theKingdom ofNorway, theSwiss
Confederation (hereinafter called theEFTA States)
and
theRepublic ofLithuania (hereinafter called Lithuania),
Recalling theirintention toparticipate actively intheprocess ofeconomic integration inEurope
andexpressing theirpreparedness toco-operate inseeking ways andmeans tostrengthen thisprocess,
Considering theimportance ofthelinksexisting between theEFTA States andLithuania, in
particular theDeclaration signed inGeneva inDecember 1991, andrecognizing thecommon wish
tostrengthen these links, thusestablishing close andlasting relations,
RecallingtheirfirmcommitmenttotheFinalActoftheConferenceonSecurityandCo-operation
inEurope, theCharter ofParis foranewEurope, andinparticular theprinciples contained inthe
finaldocument oftheCSCE Bonn Conference onEconomic Co-operation inEurope,
Reaffirming theircommitment topluralistic democracy based ontheruleoflaw,human rights,
including rights ofpersons belonging tominorities, andfundamental freedoms, andrecalling their
membership intheCouncil ofEurope,
1TheAnnexes, Lists andProtocols thereto, aswellasthebilateral agricultural arrangements, have been
submitted totheSecretariat forconsultations byinterested Members (Office 3006).WT/REG30/1
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Desiringtocreatefavourableconditionsforthedevelopmentanddiversificationoftradebetween
them andforthepromotion ofcommercial andeconomic co-operation inareas ofcommon interest
onthebasis ofequality, mutual benefit, most-favoured-nation treatment andinternational law,
Resolved tocontribute tothestrengthening ofthemultilateral trading system andtodevelop
theirrelations inthefieldoftrade inaccordance withtheprinciples oftheAgreement Establishing
theWorld Trade Organization (WTO), Lithuania having theobjective tobecome aMember ofWTO,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theStates
Parties tothisAgreement fromtheirobligations under otherinternational agreements, especially WTO,
Determined toimplement thisFreeTrade Agreement withtheobjective topreserve andprotect
theenvironment andtoensure anoptimal useofnatural resources inaccordance withtheprinciple
ofsustainable growth,
Firmly convinced thatthisFreeTrade Agreement willfoster thecreation ofanenlarged and
harmonious freetrade areawithin Europe, thusconstituting animportant contribution toEuropean
integration,
Declaring theirreadiness toexamine, inthelightofanyrelevant factor, thepossibility of
developing anddeepening theireconomic relations inorder toextend them tofields notcovered by
thisAgreement,
HAVE DECIDED, inpursuit oftheabove, toconclude thefollowing Agreement (hereinafter
called thisAgreement):
Article 1
Objectives
1. TheEFTA States andLithuania shallestablish afreetradeareainaccordance withtheprovisions
ofthepresent Agreement.
2. Theobjectives ofthisAgreement, which isbased ontraderelations between market economies
andontherespect ofdemocratic principles andhuman rights, are:
(a) topromote, through theexpansion ofreciprocal trade, theharmonious development
oftheeconomic relations between theEFTA States andLithuania andthustofoster
intheEFTA States andinLithuania theadvance ofeconomic activity, theimprovement
ofliving andemployment conditions, andincreased productivity andfinancial stability;
(b) toprovide fairconditions ofcompetition fortrade between theStates Parties tothis
Agreement;
(c) tocontribute inthisway, bytheremoval ofbarriers totrade, toEuropean economic
integration andtotheharmonious development andexpansion ofworld trade.WT/REG30/1
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Article 2
Scope
ThisAgreement shallapply:
(a) toproducts falling within Chapters 25to97oftheHarmonized Commodity Description
andCoding System, excluding theproducts listed inAnnex I;
(b) toproducts specified inProtocol A,withdueregard tothearrangements provided for
inthatProtocol;
(c) tofishandother marine products asprovided forinAnnex II;
originating inanEFTA State orLithuania.
Article 3
Rules oforigin andco-operation incustoms administration
1. Protocol Blaysdown therules oforigin andmethods ofadministrative co-operation.
2. TheStates Parties tothisAgreement shalltakeappropriate measures, including regular reviews
bytheJointCommittee andarrangements foradministrative co-operation, toensure thattheprovisions
ofArticles 4(Customs duties onimports andcharges having equivalent effect), 5(Basic duties), 6
(Customs duties ofafiscal nature), 7(Customs duties onexports andcharges having equivalent effect),
8(Quantitative restrictions onimports orexports andmeasures having equivalent effect), 13(Internal
taxation) and22(Re-export andserious shortage) ofthisAgreement andProtocol Bareeffectively
andharmoniously applied, andtoreduce, asfaraspossible, theformalities imposed ontrade, and
toachievemutuallysatisfactorysolutionstoanydifficultiesarisingfromtheoperationofthoseprovisions.
3. Afirstreview referred toinparagraph 2willtakeplace within oneyearaftertheentry into
force ofthisAgreement. Subsequent reviews shalltakeplace every second year. Onthebasisofthese
reviews, theStates Parties tothisAgreement shalldecide ontheappropriate measures tobetaken.
Article 4
Customs duties onimports andcharges having equivalent effect
1. Nonewcustoms dutyonimports orcharge having equivalent effect shallbeintroduced intrade
between theEFTA States andLithuania.
2. TheEFTA States shallabolish onthedateofentry intoforce ofthisAgreement allcustoms
duties onimports andanycharges having equivalent effect onproducts originating inLithuania.
3. Lithuania shallabolish onthedateofentry intoforce ofthisAgreement allcustoms duties
onimports andanycharges having equivalent effect onproducts originating inanEFTA State, except
asprovided forinAnnex III.WT/REG30/1
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Article 5
Basic duties
1. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied, shallbetheMost-Favoured-Nation rateofduty(conventional rateofduty) applied
on1November 1995.
2. If,before, byorafterentry intoforce ofthisAgreement, anytariff reduction isapplied on
anergaomnes basis, inparticular reductions implemented asaresult oftheaccession ofLithuania
totheWTO, suchreduced duties shallreplace thebasic duties referred toinparagraph 1asfromthe
datewhen suchreductions areapplied, orfrom theentry intoforce ofthisAgreement ifthisislater.
3. Thereduced duties calculated inaccordance withArticle 4(Customs duties onimports and
charges having equivalent effect) shallbeapplied rounded tothefirstdecimal placeor,incaseofspecific
duties, tothesecond decimal place.
Article 6
Customs duties ofafiscal nature
Theprovisions ofArticle 4(Customs duties onimports andcharges having equivalent effect)
shallalsoapply tocustoms duties ofafiscal nature, except asprovided forinProtocol C.
Article 7
Customs duties onexports andcharges having equivalent effect
1. Nonewcustoms dutyonexports orcharge having equivalent effect shallbeintroduced intrade
between theEFTA States andLithuania.
2. TheEFTA States andLithuania shallabolish onthedateofentry intoforce ofthisAgreement
allcustoms duties onexports andanycharges having equivalent effect.
Article 8
Quantitative restrictions onimports orexports
andmeasures having equivalent effect
1. Nonewquantitative restriction onimports orexports andmeasures having equivalent effect
shallbeintroduced intrade between theEFTA States andLithuania.
2. TheEFTA States shallabolish onthedateofentry intoforce ofthisAgreement quantitative
restrictions onimports orexports andmeasures having equivalent effect, except asprovided forin
Annex IV.
3. Lithuania shall abolish onthedateofentry intoforce ofthisAgreement allquantitative
restrictions onimports orexports andmeasures having equivalent effect.WT/REG30/1
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Article 9
General exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified ongrounds ofpublic morality, public policy orpublic security; theprotection of
health andlifeofhumans, animals orplants andtheenvironment; theprotection ofnational treasures
possessing artistic, historic orarchaeological value; theprotection ofintellectual property; rulesrelating
togoldorsilver;ortheconservationofexhaustiblenaturalresources,ifsuchmeasuresaremadeeffective
inconjunctionwithrestrictionsondomesticproductionorconsumption.Suchprohibitionsorrestrictions
shallnot,however, constitute ameans ofarbitrary discrimination oradisguised restriction ontrade
between theStates Parties tothisAgreement.
Article 10
State monopolies
1. TheStates Parties tothisAgreement shallensure thatanystatemonopoly ofacommercial
character beadjusted, subject totheprovisions laiddown inProtocol D,sothatnodiscrimination
regarding theconditions under which goods areprocured andmarketed willexistbetween nationals
oftheEFTA States andofLithuania. These goods shallbeprocured andmarketed inaccordance with
commercial considerations.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheStates Parties tothisAgreement, inlaworinfact,either directly orindirectly supervise, determine
orappreciably influence imports orexports between theStates Parties tothisAgreement. These
provisions shalllikewise apply tomonopolies delegated bytheState toother bodies.
Article 11
Technical regulations
1. TheStates Parties tothisAgreement agree:
(a) toholdimmediate consultations intheframework oftheJoint Committee incasea
State Party considers thatanother State Party hastaken measures which arelikely to
create, orhavecreated, anobstacle totrade, inorder tofindanappropriate solution;
(b) todiscuss intheJointCommittee possibilities toco-operate more closely onmatters
related toremoving obstacles. Thisco-operation maytakeplace infields related to
technical regulations andstandardization aswellastesting andcertification.
2. TheStates Parties tothisAgreement commit themselves tonotify thetechnical regulations in
accordance withtheprovisions oftheWTO Agreement onTechnical Barriers toTrade.WT/REG30/1
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Article 12
Trade inagricultural products
1. TheStatesPartiestothisAgreementdeclaretheirreadinesstofoster,insofarastheiragricultural
policies allow, harmonious development oftrade inagricultural products.
2. Inpursuance ofthisobjective eachindividual EFTA State andLithuania haveconcluded a
bilateral arrangement providing formeasures tofacilitate trade inagricultural products.
3. TheStates Parties tothisAgreement shallapply theirregulations insanitary andphytosanitary
matters inanon-discriminatory manner andshallnotintroduce anynewmeasures thathavetheeffect
ofunduly obstructing trade.
Article 13
Internal taxation
1. TheStates Parties tothisAgreement shallrefrain fromanymeasure orpractice ofaninternal
fiscal nature establishing, whether directly orindirectly, discrimination between theproducts originating
inanEFTA State andlikeproducts originating inLithuania.
2. Exporters maynotbenefit fromrepayment ofinternal taxation inexcess oftheamount ofdirect
orindirect taxation imposed onproducts exported totheterritory ofoneoftheStates Parties tothis
Agreement.
Article 14
Payments
1. Payments relating totrade between anEFTA State andLithuania andthetransfer ofsuch
payments totheterritory oftheStateParty tothisAgreement where thecreditor resides, shallbefree
fromanyrestrictions. Payments between theParties shallbeeffected infreely convertible currencies,
unless otherwise agreed byindividual companies inindividual cases.
2. TheStates Parties tothisAgreement shallrefrain fromanycurrency exchange oradministrative
restrictionsonthegrant,repaymentoracceptanceofshortandmedium-termcreditscoveringcommercial
transactions inwhich aresident participates.
Article 15
Public procurement
1. TheStates Parties tothisAgreement consider theeffective liberalization oftheirrespective
public procurement markets onthebasis ofnon-discrimination andreciprocity, inparticular onthe
basisoftheAgreement onGovernment Procurement (GPA) atAnnex IVtotheAgreement Establishing
theWTO, asanintegral objective ofthisAgreement.
2. Tothiseffect, theParties shall, within oneyearaftertheentry intoforce ofthisAgreement,
elaborate ruleswithin theframework oftheJointCommittee withaviewtoensure suchaliberalization.WT/REG30/1
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3. TheStatesPartiestothisAgreementconcernedshallendeavourtoaccedetotheWTOAgreement
onGovernment Procurement.
Article 16
Protection ofintellectual property
1. TheStates Parties tothisAgreement shall grant andensure adequate, effective andnon-
discriminatory protection ofintellectual property rights, including measures fortheenforcement of
suchrights against infringement thereof, counterfeiting andpiracy. Particular obligations oftheStates
Parties tothisAgreement arecontained inAnnex V.
2. Inaccordance withthesubstantive provisions oftheTRIPS Agreement, inparticular Articles
4and5thereof, theStates Parties tothisAgreement shallnotgranttreatment lessfavourable tonationals
ofeachother thanthataccorded tonationals ofanyother State. Inaccordance withArticle 4,paragraph
(d)oftheTRIPS Agreement, anyadvantage, favour, privilege orimmunity deriving frominternational
agreements inforce foraStateParty tothisAgreement attheentry intoforce ofthisAgreement and
notified totheother States Parties atthelatest sixmonths aftertheentry intoforce ofthisAgreement,
shallbeexempted fromthisobligation, provided thatitdoesnotconstitute anarbitrary orunjustifiable
discrimination ofnationals oftheother States Parties.
3. Twoormore States Parties tothisAgreement mayconclude further agreements exceeding the
requirements ofthisAgreement, provided thatsuchagreements shallbeopentoallother States Parties
tothisAgreement onterms equivalent tothose under theagreements andthattheyshallbeready to
enter intogood faithnegotiations tothisend.
4. TheStates Parties tothisAgreement agree, upon request ofanEFTA State orLithuania, to
review theprovisions ontheprotection ofintellectual property rights contained inthepresent Article
andinAnnex V,withaview tofurther improve levels ofprotection andtoavoid orremedy trade
distortions caused byactual levels ofprotection ofintellectual property rights.
Article 17
Rules ofcompetition concerning undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofarasthey
mayaffect trade between anEFTA State andLithuania:
(a) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which haveastheirobjective oreffect the
prevention, restriction ordistortion ofcompetition;
(b) abuse byoneormore undertakings ofadominant position intheterritories oftheStates
Parties tothisAgreement asawhole orinasubstantial partthereof.
2. Theprovisions ofparagraph 1shallalsoapply totheactivities ofpublic undertakings, and
undertakings forwhich theStates Parties tothisAgreement grant special orexclusive rights, inso
farastheapplication ofthese provisions doesnotobstruct theperformance, inlaworinfact,ofthe
particular public tasks assigned tothem.WT/REG30/1
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3. IfaState Party tothisAgreement considers thatagiven practice isincompatible withthe
provisions ofparagraphs 1and2,itmaytakeappropriate measures under theconditions andin
accordance withtheprocedures laiddown inArticle 25(Procedure fortheapplication ofsafeguard
measures).
Article 18
State aid
1. Anyaidgranted byaState Party tothisAgreement orthrough State resources inanyform
whatsoever which distorts orthreatens todistort competition byfavouring certain undertakings orthe
production ofcertain goods shall, insofarasitmayaffect tradebetween anEFTA StateandLithuania,
beincompatible withtheproper functioning ofthisAgreement.
2. Anypractices contrary toparagraph 1should beassessed onthebasis ofthecriteria setout
inAnnex VI.
3. TheStates Parties tothisAgreement shall ensure transparency ofstate aidmeasures by
exchanging information asprovided inAnnex VII.
4. IfaState Party tothisAgreement considers thatagiven practice isincompatible withthe
provisions ofparagraph 1,itmaytakeappropriate measures under theconditions andinaccordance
withtheprocedures laiddown inArticle 25(Procedure fortheapplication ofsafeguard measures).
Article 19
Dumping
IfanEFTA Statefindsthatdumping within themeaning ofArticle VIoftheGeneral Agreement
onTariffs andTrade 1994 istaking place intrade withLithuania, orifLithuania finds thatdumping
within thismeaning istaking place intrade withanEFTA State, theStateParty concerned maytake
appropriate measures against thispractice inaccordance withtheAgreement onImplementation of
Article VIoftheGeneral Agreement onTariffs andTrade 1994 andwiththeprocedure laiddown
inArticle 25(Procedure fortheapplication ofsafeguard measures).
Article 20
Emergency action onimports ofparticular products
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause, orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products inthe
territory oftheimporting State Party tothisAgreement, or
(b) serious disturbances inanyrelated sector oftheeconomy ordifficulties which could
bring about serious deterioration intheeconomic situation ofaregion,
theStateParty concerned maytakeappropriate measures under theconditions andinaccordance with
theprocedure laiddown inArticle 25(Procedure fortheapplication ofsafeguard measures).WT/REG30/1
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Article 21
Structural adjustment
1. Exceptional measures oflimited duration which derogate from theprovisions ofArticle 4
(Customs duties onimports andcharges having equivalent effect) maybetaken byLithuania inthe
form 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. After theintroduction ofthese measures, thetotaladvalorem customs duties applicable in
Lithuania toproducts originating intheEFTA States maynotexceed 25%andshallmaintain anelement
ofpreference forproducts originating intheEFTA States. Thetotalvalue ofimports oftheproducts
which aresubject tothese measures maynotexceed 15%oftotalimports ofindustrial products from
theEFTA States asdefined inArticle 2(a)during thelastyearforwhich statistics areavailable.
4. These measures shallbeapplied foraperiod notexceeding threeyears unless alonger duration
isauthorized bytheJointCommittee. They shallcease toapply atthelatest by31December 2000
andnosuchmeasures canbeintroduced inrespect ofaproduct ifmore thanthree years haveelapsed
since theentry intoforce ofthisAgreement orsince theelimination ofallduties andquantitative
restrictions orcharges ormeasures having anequivalent effect concerning thatproduct, whichever
islater.
5. Lithuania shallinform theJointCommittee ofanyexceptional measures itintends totakeand,
attherequest oftheEFTA States, consultations shallbeheldintheJointCommittee onsuchmeasures
andthesectors towhich theyapply before theyareapplied. When taking suchmeasures Lithuania
shallprovide theJointCommittee withaschedule fortheelimination ofthecustoms duties introduced
under thisArticle. Thisschedule shallprovide foraphasing outofthese duties atequal annual rates
starting atthelatest twoyears aftertheirintroduction. TheJointCommittee maydecide onadifferent
schedule.
Article 22
Re-export andserious shortage
Where compliance withtheprovisions ofArticles 7(Customs duties onexports andcharges
having equivalent effect) and8(Quantitative restrictions onimports orexports andmeasures having
equivalent effect) leads to:
(a) re-export towards athird country against which theexporting State Party tothis
Agreement maintains fortheproduct concerned quantitative export restrictions, export
duties ormeasures orcharges having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting StateParty
tothisAgreement;
andwhere thesituations referred toabove giveriseorarelikely togiverisetomajor difficulties for
theexporting State Party, thatState Party maytakeappropriate measures under theconditions and
inaccordance withtheprocedures laiddown inArticle 25(Procedure fortheapplication ofsafeguardWT/REG30/1
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measures). Themeasures shallbenon-discriminatory andbeeliminated when conditions nolonger
justify theirmaintenance.
Article 23
Balance ofpayments difficulties
1. TheStates Parties tothisAgreement shallendeavour toavoid theimposition ofrestrictive
measures forbalance ofpayments purposes.
2. Where anEFTA State orLithuania isinserious balance ofpayments difficulties, orunder
imminent threat thereof, theEFTA State orLithuania, asthecasemaybe,may, inaccordance with
theconditionsestablishedundertheGeneralAgreementonTariffsandTrade1994andtheUnderstanding
ontheBalance-of-Payments Provisions oftheGeneral Agreement onTariffs andTrade 1994, adopt
trade restrictive measures, which shallbeoflimited duration andnon-discriminatory ,andmaynot
gobeyond whatisnecessary toremedy thebalance ofpayments situation. Preference shallbegiven
toprice-based measures which shallbeprogressively relaxed asbalance ofpayments conditions improve
andeliminated when conditions nolonger justify theirmaintenance. TheEFTA State orLithuania,
asthecasemaybe,shallinform theother States Parties tothisAgreement andtheJointCommittee
forthwith, ifpossible, prior totheirintroduction andshallprovide atimeschedule fortheirremoval.
TheJointCommittee shall, upontherequest ofanyother StateParty, examine theneedformaintaining
themeasures taken.
3. Norestrictive measures shallapply totransfers related toinvestments andinparticular tothe
repatriation ofamounts invested orreinvested andofanykindofrevenues stemming therefrom.
Article 24
Arbitration Procedure
1. Disputes between States Parties tothisAgreement, relating totheinterpretation ofrights and
obligations oftheStates Parties tothisAgreement, which havenotbeensettled through consultation
orintheJointCommittee within sixmonths, maybereferred toarbitration byanyStateparty tothe
dispute bymeans ofawritten notification addressed totheother State party tothedispute. Acopy
ofthisnotification shallbecommunicated toallStates Parties tothisAgreement.
2. Theconstitution andfunctioning ofthearbitral tribunal isgoverned byAnnex VIII.
Article 25
Procedure fortheapplication ofsafeguard measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthepresent Article, theStates Parties tothisAgreement shallendeavour tosolve any
differences between them through direct consultations, andinform theother States Parties tothis
Agreement thereof.
2. Without prejudice toparagraph 6ofthepresent Article, aStateParty which considers resorting
tosafeguard measures shallpromptly notify theother States Parties andtheJointCommittee thereof
andsupply allrelevant information. Consultations between theStates Parties tothisAgreement shall
takeplace without delay intheJointCommittee withaviewtofinding acommonly acceptable solution.WT/REG30/1
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3. (a) Asregards Articles 17(Rules ofcompetition concerning undertakings) and18(State
aid),theStates Parties concerned shallgivetotheJointCommittee alltheassistance
required inorder toexamine thecaseand,where appropriate, eliminate thepractice
objected to.IftheState Party inquestion failstoputanendtothepractice objected
towithin theperiod fixed bytheJoint Committee oriftheJointCommittee failsto
reach anagreement afterconsultations, orafterthirty daysfollowing referral forsuch
consultations, theState Party concerned mayadopt theappropriate measures todeal
withthedifficulties resulting from thepractice inquestion.
(b) Asregards Articles 19(Dumping), 20(Emergency action onimports ofparticular
products) and22(Re-export andserious shortage), theJointCommittee shallexamine
thecaseorthesituation andmaytakeanydecision needed toputanendtothe
difficulties notified bytheState Party concerned. Intheabsence ofsuchadecision
within thirty daysofthematter being referred totheJointCommittee, theStateParty
concerned mayadopt themeasures necessary inorder toremedy thesituation.
(c) Asregards Article 31(Fulfilment ofobligations), theStateParty concerned shallsupply
theJointCommittee withallrelevant information required forathorough examination
ofthesituation withaviewtoseeking acommonly acceptable solution. IftheJoint
Committee failstoreach suchasolution orifaperiod ofthree months haselapsed
fromthedateofnotification, theStateParty concerned maytakeappropriate measures.
4. ThesafeguardmeasurestakenshallbenotifiedimmediatelytotheStatesPartiestothisAgreement
andtotheJointCommittee. They shallberestricted withregard totheirextent andtotheirduration
towhatisstrictly necessary inorder torectify thesituation giving risetotheirapplication andshall
notbeinexcess oftheinjury caused bythepractice orthedifficulty inquestion. Priority shallbe
given tosuchmeasures thatwillleastdisturb thefunctioning ofthisAgreement. Themeasures taken
byLithuania against anaction oranomission ofanEFTA State mayonlyaffect thetrade withthat
State. Themeasures taken against anaction oromission ofLithuania maybeonlytaken bythator
those EFTA States thetrade ofwhich isaffected bythesaidaction oromission.
5. Thesafeguard measures taken shall betheobject ofregular consultations within theJoint
Committee withaviewtotheirrelaxation, substitution orabolition, when conditions nolonger justify
theirmaintenance.
6. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theStateParty concerned may,inthecases ofArticles 19(Dumping), 20(Emergency action onimports
ofparticular products) and22(Re-export andserious shortage) andincases ofstateaidhaving adirect
andimmediate incidence ontrade between theStates Parties, apply forthwith theprecautionary and
provisional measures strictly necessary toremedy thesituation. Themeasures shallbenotified without
delay andconsultations between theStates Parties tothisAgreement shalltakeplace assoonaspossible
within theJoint Committee.
Article 26
Security exceptions
NothinginthisAgreementshallpreventaStatePartytothisAgreementfromtakinganymeasures
which itconsiders necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;WT/REG30/1
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(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 27
TheJoint Committee
1. TheimplementationofthisAgreementshallbesupervisedandadministeredbyaJointCommittee
which shallsimultaneously actunder theDeclaration signed inGeneva inDecember 1991.
2. Forthepurpose oftheproper implementation ofthisAgreement, theStates Parties tothis
Agreement shallexchange information and,attherequest ofanyStateParty tothisAgreement, shall
holdconsultations within theJoint Committee. TheJoint Committee shallkeepunder review the
possibility offurther removal oftheobstacles totrade between theEFTA States andLithuania.
3. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theJoint Committee maymake recommendations.
Article 28
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butnormally onceayear. Each StateParty tothisAgreement mayrequest thatameeting
beheld.
2. TheJoint Committee shallactbycommon agreement.
3. Ifarepresentative intheJoint Committee ofaState Party tothisAgreement hasaccepted a
decision, subject tothefulfilment ofconstitutional requirements, thedecision shallenter intoforce,
ifnolaterdateiscontained therein, onthedatethelifting ofthereservation isnotified.
4. Forthepurpose ofthisAgreement theJointCommittee shalladopt itsrulesofprocedure which
shall, interalia,contain provisions forconvening meetings andforthedesignation oftheChairman
andhis/her termofoffice.
5. TheJoint Committee maydecide tosetupsuchsub-committees andworking parties asit
considers necessary toassist itinaccomplishing itstasks.WT/REG30/1
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Article 29
Evolutionary clause
1. TheStates Parties tothisAgreement undertake toexamine, inlightofanyrelevant factor, the
possibility offurther developing anddeepening theco-operation under thisAgreement andtoextend
ittoareas notcovered therein. TheStates Parties tothisAgreement mayinstruct theJointCommittee
toexamine thispossibility and,where appropriate, tomake recommendations tothem, particularly
withaviewtoopening upnegotiations.
2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
orapproval bytheStates Parties tothisAgreement inaccordance withtheirownprocedures.
Article 30
Services andInvestment
1. TheStates Parties tothisAgreement recognize thegrowing importance ofcertain areas, such
asservices andinvestments. Intheirefforts togradually develop andbroaden theirco-operation, in
particular inthecontext ofEuropean integration, theywillco-operate withtheaimofachieving agradual
liberalization andmutual opening ofmarkets forinvestments andtradeinservices, taking intoaccount
theresults oftheUruguay Round aswellasanyrelevant work under theauspices oftheWTO. They
willendeavour toaccord toeachothers 'operators treatment nolessfavourable thanthataccorded to
other foreign operators intheirterritories oncondition thatabalance ofrights andobligations aswell
asabalance ofoperating conditions existbetween theStates Parties tothisAgreement.
2. TheEFTA States andLithuania willdiscuss thisco-operation intheJointCommittee withthe
aimofdeveloping anddeepening theirrelations under thisAgreement.
Article 31
Fulfilment ofobligations
1. TheStates Parties tothisAgreement shalltakeallnecessary measures toensure theachievement
oftheobjectives ofthisAgreement andthefulfilment oftheirobligations under thisAgreement.
2. IfanEFTA State considers thatLithuania has,orifLithuania considers thatanEFTA State
hasfailedtofulfilanobligationunderthisAgreement,theStatePartyconcernedmaytaketheappropriate
measures under theconditions andinaccordance withtheprocedures laiddown inArticle 25(Procedure
fortheapplication ofsafeguard measures).
Article 32
Annexes andProtocols
TheAnnexes andtheProtocols tothisAgreement areanintegral partofit.TheJointCommittee
maydecide toamend theAnnexes andProtocols.WT/REG30/1
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Article 33
Trade relations governed bythisAgreement
1. ThisAgreement applies totraderelations between, ontheoneside,theindividual EFTA States
and,ontheother side,Lithuania, butnottothetraderelations between individual EFTA States, except
ifotherwise provided forinthisAgreement.
2. TheParties totheFreeTrade Agreement between Norway andLithuania andtotheFreeTrade
Agreement between Switzerland andLithuania agree thatthese agreements willbeterminated atthe
entry intoforce ofthisAgreement.
Article 34
Territorial application
ThisAgreement shallapply totheterritories oftheStates Parties tothisAgreement.
Article 35
Customs unions, freetrade areas andfrontier trade
ThisAgreement shallnotprevent themaintenance orestablishment ofcustoms unions, free
tradeareas orarrangements forfrontier tradetotheextent thatthese donotnegatively affect thetrade
regime and,inparticular, theprovisions concerning rules oforigin provided forbythisAgreement.
Article 36
Amendments
AmendmentstothisAgreementotherthanthosereferredtoinArticle32(AnnexesandProtocols)
which areapproved bytheJointCommittee shallbesubmitted totheStates Parties tothisAgreement
foracceptance andshallenter intoforce ifaccepted byalltheStates Parties tothisAgreement. The
instruments ofacceptance shallbedeposited withtheDepositary.
Article 37
Accession
1. AnyState, Member oftheEuropean FreeTrade Association, mayaccede tothisAgreement,
provided thattheJointCommittee decides toapprove itsaccession, tobenegotiated between theacceding
StateandtheStates Parties concerned, onsuchterms andconditions asmaybesetoutinthatdecision.
Theinstrument ofaccession shallbedeposited withtheDepositary.
2. Inrelation toanacceding State, thisAgreement shallenter intoforce onthefirstdayofthe
thirdmonth following thedeposit ofitsinstrument ofaccession.WT/REG30/1
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Article 38
Withdrawal andexpiration
1. EachStateParty tothisAgreement maywithdraw therefrom bymeans ofawritten notification
totheDepositary. Thewithdrawal shalltakeeffect sixmonths afterthedateonwhich thenotification
isreceived bytheDepositary.
2. IfLithuania withdraws, thisAgreement shallexpire attheendofthenotice period, andifall
EFTA States withdraw itshallexpire attheendofthelatest notice period.
3. AnyEFTA Member State which withdraws from theConvention establishing theEuropean
FreeTrade Association shallipsofacto onthesame dayasthewithdrawal takes effect cease tobea
State Party tothisAgreement.
Article 39
Entry intoforce
1. ThisAgreement shallenterintoforceon1June1996inrelation tothose Signatory States which
bythenhavedeposited theirinstruments ofratification oracceptance withtheDepositary, provided
thatLithuania isamong theStates thathavedeposited theirinstruments ofratification oracceptance.
2. Inrelation toaSignatory State depositing itsinstrument ofratification oracceptance after1
June1996, thisAgreement shallenter intoforce onthefirstdayofthesecond month following the
deposit ofitsinstrument, provided thatinrelation toLithuania thisAgreement enters intoforce atthe
latest onthesame date.
3. AnySignatory Statemayalready atthetimeofsignature declare that,during aninitial phase,
itshallapply thisAgreement provisionally, ifthisAgreement cannot enter intoforce inrelation to
thatStateby1June1996. ForanEFTA State provisional application isonlypossible provided that
inrelation toLithuania thisAgreement hasentered intoforce, orthatLithuania isapplying this
Agreement provisionally.
Article 40
Depositary
TheGovernment ofNorway, acting asDepositary, shallnotify allStates thathavesigned or
acceded tothisAgreement ofthedeposit ofanyinstrument ofratification, orprovisional application,
acceptance oraccession, aswellasoftheentry intoforce ofthisAgreement, ofitsexpiry orofany
withdrawal therefrom.WT/REG30/1
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INWITNESS WHEREOF theundersigned plenipotentiaries, being dulyauthorized thereto, havesigned
thepresent Agreement.
DONE atZermatt, this7thdayofDecember 1995, inauthentic copies intheEnglish andLithuanian
languages which shallbedeposited withtheGovernment ofNorway. TheDepositary shalltransmit
certified copies toallSignatory States, andStates acceding tothisAgreement.
FortheRepublic ofIceland FortheRepublic ofLithuania
.............................................. ..............................................
ForthePrincipality ofLiechtenstein
...............................................
FortheKingdom ofNorway
................................................
FortheSwiss Confederation
................................................