WORLD TRADE
ORGANIZATIONWT/REG144/1
14 January 2003
(03-0186)
Committee on Regional Trade Agreements Original:  English/
French/
Spanish
EUROPEAN COMMUNITIES – ESTONIA EUROPE AGREEMENT
The following text reproduces the Agreement between the European Communities and
Estonia.1
_______________
EUROPE AGREEMENT
establishing an Association between the European Communities and their Member States, of the one
part, and the Republic of Estonia, of the other part
The Kingdom of Belgium, The Kingdom of Denm ark, The Federal Republic of Germany, The
Hellenic Republic, The Kingdom of Spain, The French Republic, Ireland, The Italian Republic, TheGrand Duchy of Luxembourg, The Kingdom of The Ne therlands, The Republic of Austria, The
Portuguese Republic, The Republic of Finland, The Kingdom of Sweden, The United Kingdom of
Great Britain and Northern Ireland,
Contracting Parties to the Treaty on European Union , the Treaty establishing the European
Community , the Treaty establishing the European Coal and Steel Community and the Treaty
establishing the European Atomic Energy Community ,
hereinafter referred to as "the Member States", andthe European Community , the European Atomic Energy Community and the European Coal
and Steel Community ,
hereinafter referred to as "the Community",acting within the framework of the European Union,
of the one part, and
the Republic of Estonia ,
hereinafter referred to as "Estonia",of the other part,
                                                     
1 The text of the Agreement together with its Annexes and Protocols is available at
http://europa.eu.int/eur-lex/pri/en/oj/dat/1998/l_068/l_06819980309en00030187.pdf . It is also available at the
Secretariat for consultation by interested Members (Office 1174).WT/REG144/1
Page 2
Recalling the historical links between the Parties and the common values they share;
Recognising that the Community and Estonia wish to reinforce these links, to establish close
and lasting relations on a basis of reciprocity allowing Estonia to participate in the process of
European integration, in reinforcing and further developing the relations previously established, inparticular via the Agreement on Trade and Commercial and Economic Cooperation and the
Agreement on Free Trade and Trade-Related Matters;
Considering the commitment to the intensification of political and economic liberties which
constitute the basis of this Agreement and to further development of Estonia's new economic and
political system which respects - in accordance inte r alia with the undertakings made within the
context of the Conference on Security and Coopera tion in Europe (CSCE) and the Organisation for
Security and Cooperation in Europe (OSCE) - the rule of law and human rights, including the rights
of persons belonging to minorities, a multiparty system with free and democratic elections and
liberalisation aimed at setting up a market economy;
Sharing the understanding that Estonia has made considerable and successful reform efforts
in the political and economic fields and that these efforts will be pursued;
Considering the commitment to the implementation of  commitments made in the framework
of the CSCE, in particular those set out in the Helsinki Final Act, the concluding documents of the
Madrid, Vienna and Copenhagen meetings, those of the Charter of Paris for a New Europe, theconclusions of the CSCE's Bonn Conference, the CSCE Helsinki document 1992, the European
Convention on Human Rights, the European Energy Charter Treaty as well as the Ministerial
Declaration of the Lucerne Conference of 30 April 1993;
Willing to promote improved contacts among their citizens as well as the free flow of
information and ideas, as agreed by the Parties in the framework of the CSCE and the OSCE;
Conscious  of the importance of this Agreement in establishing and enhancing in Europe a
system of stability based on cooperation, with the European Union as one of the cornerstones;
Recognising  that there is a need to continue, with the Community's help, Estonia's political
and economic reform;
Taking account  of the Community's wishes to contribute to the implementation of the reforms
and to assist Estonia in facing the economic and social consequences of structural adjustment;
Recognising  that full implementation of the Agreement is linked to the implementation of a
coherent programme of economic and political reform by Estonia;
Recognising  the need for continuing regional cooperation among the Baltic States, taking into
account that closer integration between the European Union and the Baltic States, and the Baltic
States among themselves, should proceed in parallel;
Considering  the commitment to liberalise trade based on the General Agreement on Tariffs
and Trade (GATT) and World Trade Organisation (WTO) principles;
Expecting  that this Agreement will create a new climate for economic relations between them
and above all for the development of trade and investment, which are essential to economic
restructuring and the renewal of technology;WT/REG144/1
Page 3
Bearing  in mind that political dialogue on matters of mutual interest has been established by
the Joint Declaration of May 1992;
Desirous  of developing and intensifying regular political dialogue within the multilateral
framework established by the Copenhagen European Council of June 1993 and enhanced by theDecision of the Council of the European Union of 7 March 1994 and the conclusions of the Essen
European Council of December 1994;
Recalling  that Estonia has been an associated partner of the Western European Union (WEU)
since May 1994 and that it participates in the North Atlantic Treaty Organisation (NATO) Partnership
for Peace Programme;
Recognising  the contribution which the Pact on Stability in Europe can make to promoting
stability and good-neighbourly relations in the Baltic region, and confirming their determination to
work together for the success of this initiative;
Taking account  of the Community's willingness to employ instruments of cooperation and
economic, technical and financial assistance on a global and multiannual basis;
Bearing  in mind the economic and social disparities between the Community and Estonia and
thus recognising that the objectives of this association should be reached through appropriate
provisions of the Agreement;
Desirous  of establishing cultural cooperation and developing exchanges of information;
Willing  to set up a framework for cooperation aimed at preventing illegal activities;
Recognising  the fact that Estonia's ultimate objective is to become a member of the European
Union and that association through this Agreement will, in the view of the Parties, help Estonia to
achieve this objective;
Taking into account  the accession preparation strategy adopted by the Essen European
Council of December 1994, which is being politically implemented by the creation, between the
associated States and the institutions of the European Union, of structured relations which encouragemutual trust and will provide a framework for addressing topics of common interest,
Have agreed  as follows:
Article 1
1. An association is hereby established between the Community and its Member States, of the
one part, and Estonia, of the other part.
2. The objectives of this association are:
− to provide an appropriate framework for th e political dialogue between the Parties
allowing the development of close political relations,
− to further develop a free trade area between the Community and Estonia covering
substantially all trade between them,WT/REG144/1
Page 4
− to promote the expansion of trade and the harmonious economic relations between
the Parties and so to foster dynamic economic development and prosperity in theCommunity and Estonia,
− to provide a basis for economic, financial, cultural and social cooperation and
cooperation in the prevention of illegal activities, as well as for the Community's
assistance to Estonia,
− to support Estonia's efforts to develop its economy,
− to provide an appropriate framework for the gradual integration of Estonia into the
European Union. Estonia shall work towards fulfilling the necessary requirements inthis respect,
− to set up institutions suitable to make the association effective.
TITLE I
General Principles
Article 2
1. Respect for democratic principles and human rights, established by the Helsinki Final Act and
in the Charter of Paris for a New Europe, as well as the principles of market economy, inspire the
domestic and external policies of the Parties and constitute essential elements of this Agreement.
2. The Parties consider that it is essential for the future prosperity and stability of the region that
the Baltic States should maintain and develop cooperation among themselves and will make every
effort to enhance this process.
Article 3
The Association Council established under Article 109, bearing in mind that the principles of
the market economy are essential to the present as sociation, shall proceed regularly to examine the
application of the Agreement and the implementation by Estonia of economic reforms on the basis of
the principles referred to in the preamble.
TITLE II
Political Dialogue
Article 4
The political dialogue between the European Union and Estonia shall be developed and
intensified. It shall accompany and consolidate the rapprochement between the European Union and
Estonia, support the political and economic changes u nderway in that country or already realised, and
contribute to the establishment of close links of solidarity and new forms of cooperation between the
Parties. The political dialogue is intended to promote in particular:
− Estonia's progressive rapprochement with the European Union,WT/REG144/1
Page 5
− an increasing convergence of positions of the Parties on international issues and, in
particular, on those issues likely to have substantial effects on one or the other Party,
− better cooperation in areas covered by the common foreign and security policy of the
European Union,
− security and stability in Europe.
Article 5
Political dialogue shall take place within the multilateral framework and in accordance with
the forms and practices established with the associated countries of central Europe.
Article 6
1. At Ministerial level, bilateral political dialogue shall take place within the Association
Council, which shall have the general responsibility for any matter which the Parties might wish to
put to it.
2. With the agreement of the Parties, other procedures for political dialogue shall be established,
in particular:
− meetings, where necessary, of senior officials (at the level of political directors)
representing Estonia, on the one hand, and the Presidency of the Council of theEuropean Union and the Commission, on the other,
− taking full advantage of all diplomatic channels between the Parties, including
appropriate contacts in third countries and within the United Nations, the OSCE and
other international forums,
− including Estonia in the group of countries receiving regular information on the
activities managed within the framework of  the common foreign and security policy
as well as exchanging information with a view to achieving the objectives defined in
Article 4,
− any other means which would make a useful contribution to consolidating,
developing and stepping up this dialogue.
Article 7
At parliamentary level, political dialogue shall take place within the framework of the
Parliamentary Committee of the association between the European Communities and their Member
States and the Republic of Estonia (hereinafter referred to as the 'Parliamentary Committee`).WT/REG144/1
Page 6
TITLE III
Free Movement Of Goods
Article 8
1. The Community and Estonia shall establish a free trade area upon entry into force of the
Agreement on Free Trade and Trade-Related Matters on 1 January 1995, in accordance with the
provisions of this Agreement and in conformity with those of the GATT and the WTO.
2. The Combined Nomenclature of goods shall be applied to the classification of goods in trade
between the two Parties.
3. For each product covered by this Agreement the basic duty shall be that actually applied erga
omnes on 1 January 1994.
The successive reductions set out in this Agreement are to be applied to these basic duties.
4. If, after 1 January 1995, any tariff reduction is applied on an erga omnes basis, in particular,
reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round,
such reduced duties shall replace the basic duties referred to in paragraph 3 as from the date whensuch reductions are applied.
5. The Community and Estonia shall communicate to each other their respective basic duties.
CHAPTER I
Industrial Products
Article 9
1. The provisions of this Chapter shall apply to  products originating in the Community and in
Estonia listed in Chapters 25 to 97 of the Combined Nomenclature with the exception of the products
listed in Annex I.
2. Trade between the Parties in items covered by the Treaty establishing the European Atomic
Energy Community will be conducted in accordance with the provisions of that Treaty.
Article 10
Customs duties and quantitative restrictions on imports into the Community and measures
having equivalent effect are abolished on 1 January 1995 with regard to products originating in
Estonia.
Article 11
Customs duties and quantitative restrictions on imports into Estonia and measures having an
equivalent effect are abolished on 1 January 1995 with regard to products originating in the
Community.WT/REG144/1
Page 7
Article 12
The provisions concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature.
Article 13
Any charges having an effect equivalent to customs duties on imports are abolished on
1 January 1995 in trade between the Community and Estonia.
Article 14
1. Any customs duties on exports and charges having equivalent effect are abolished on
1 January 1995 between the Community and Estonia.
2. Quantitative restrictions on exports and any measures having equivalent effect are abolished
on 1 January 1995 between the Community and Estonia.
Article 15
Specific arrangements applicable to the trade in textile and clothing products originating in
Estonia are covered in Protocol 1.
Article 16
The provisions of this Chapter do not preclude an agricultural component in the duties
applicable to products listed in Annex II.
CHAPTER II
Agriculture
Article 17
1. The provisions of this Chapter shall apply to  agricultural products originating in the
Community and in Estonia.
2. The term 'agricultural products` means the pr oducts listed in Chapters 1 to 24 of the
Combined Nomenclature and the products listed in Annex I, but excluding fishery products as defined
by Regulation (EEC) No 3759/92.
Article 18
Protocol 2 lays down the trade arrangements for processed agricultural products which are
listed therein.
Article 19
1. As from 1 January 1995 no quantitative restrictions apply to imports into the Community of
agricultural products originating in Estonia nor to imports into Estonia of agricultural products
originating in the Community.WT/REG144/1
Page 8
2. The concessions granted under this Agreement are referred to in Annexes III, IV and V.
3. The concessions referred to in paragraph 2 may be subject to revision by agreement between
the Parties within a period lasting until 31 December 1997 and on the basis of the principles and
procedures set out in paragraph 4.
4. Taking account of the volume of trade in agricultural products between them, of their
particular sensitivity, of the rules of the common agricultural policy of the Community, of the rules of
the agricultural policy in Estonia, of the role of agriculture in Estonia's economy, the Community and
Estonia shall examine in the Association Council, product by product and on an orderly and reciprocal
basis, the possibilities of granting each other further concessions.
Article 20
Notwithstanding other provisions of this Agreement, and in particular Article 29, if, given the
particular sensitivity of the agricultural markets, imports of products originating in one Party, which
are the subject of concessions granted pursuant to Article 19, cause serious disturbance to the markets
in the other Party, both Parties shall enter into consultations immediately to find an appropriate
solution. Pending such a solution, the Party concerned may take the measures it deems necessary.
CHAPTER III
Fisheries
Article 21
The provisions of this Chapter shall apply to  fishery products originating in the Community
and in Estonia, which are covered by Regulation (CEE) No 3759/92.
Article 22
1. The concessions granted under this Agreement are referred to in Annex VI.
2. The provisions of Article 19(4), Article 20 and Article 24(2) and (3) shall apply mutatis
mutandis to fishery products.
CHAPTER IV
Common Provisions
Article 23
The provisions of this Title shall apply to trade between the Parties in all products except
where otherwise provided herein or in Protocols 1 and 2.
Article 24
1. In trade between the Community and Estonia from 1 January 1995:
− no new customs duties on imports or exports or charges having equivalent effect shall
be introduced, nor shall those already applied be increased,WT/REG144/1
Page 9
− no new quantitative restrictions on imports or exports or measures having equivalent
effect shall be introduced nor shall those existing be made more restrictive.
2. Without prejudice to the concessions granted pursuant to Article 19, the provisions of
paragraph 1 of this Article shall not restrict in any way the pursuance of the respective agricultural
policies of Estonia and the Community or the ta king of any measures under such policies.
3. Taking account of the Estonian tariff structure at 1 January 1995, where no tariff duties are
provided for agricultural products, in the event that a new tariff regime for the import of agricultural
products is established, Estonia may, by way of derogation from paragraph 1 and pursuant to the
implementation of its agricultural policy for its domestic production, introduce duties on a limited
number of agricultural products originating in the Community. Such duties may only be introduced
until 31 December 1996, and after consultation in the Association Council. In all such cases, Estonia
shall ensure a sizeable margin of preference for products originating in the Community. If necessary,this period may be prolonged by one year  by decision of the Association Council.
Article 25
1. The two Parties shall refrain from any measure or practice of an internal fiscal nature
establishing, whether directly or indirectly, discrimination between the products of one Party an likeproducts originating in the territory of the other Party.
2. Products exported to the territory of one of the two Parties may not benefit from repayment of
internal indirect taxation in excess of the amount of direct or indirect taxation imposed on them.
Article 26
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free
trade areas or arrangements for frontier trade except insofar as they alter the trade arrangements
provided for in this Agreement.
2. Consultations between the Parties shall take place within the Association Council concerning
agreements establishing such customs unions or free trade areas and, where requested, on other majorissues related to their respective trade policies with third countries. In particular in the event of a third
country acceding to the Community, such consultations shall take place so as to ensure that account
can be taken of the mutual interests of the Community and Estonia stated in this Agreement.
Article 27
Exceptional measures of limited duration which derogate from the provisions of Article 11
and Article 24(1), first indent, may be taken by Estonia in the form of increased customs duties.
These measures may only concern infant industries, or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce important
social problems.
Customs duties on imports applicable in Estonia to products originating in the Community
introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of
preference for products originating in the Community.
The total value of imports of the products which are subject to these measures may not exceed
15 % of total imports of industrial products from the Community as defined in Chapter I during the
last year for which statistics are available.WT/REG144/1
Page 10
These measures shall be applied for a period not exceeding two years unless a longer duration
is authorised by the Association Council. They shall cease to apply at the latest by 31 December 1997.
No such measures can be introduced in respect of a product if more than three years have
elapsed since the elimination of all duties and quantitative restrictions or charges or measures havingan equivalent effect concerning that product.
Estonia shall inform the Association Council of any exceptional measures it intends to take
and, at the request of the Community, consultations shall be held in the Association Council on such
measures and the sectors to which they apply before they are applied. When taking such measures
Estonia shall provide the Association Council with a schedule for the elimination of the customs
duties introduced under this Article. The Association Council may decide on a different schedule.
Article 28
If one of the Parties finds that dumping is taking place in trade with the other Party within the
meaning of Article VI of the GATT, it may take appropriate measures against this practice inaccordance with the Agreement relating to the application of Article VI of the GATT, with related
internal legislation and with the conditions and procedures laid down in Article 32.
Article 29
Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause:
− serious injury to domestic producers of like or directly competitive products in the
territory of one of the Parties, or
− serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region,
the Community or Estonia, whichever is concerned, may take appropriate measures under the
conditions and in accordance with the procedures laid down in Article 32.
Article 30
Where compliance with the provisions of Articles 14 and 24 leads to:
(i) re-export towards a third country against which the exporting Party
maintains, for the product concerned, quantitative export restrictions, export
duties or measures having equivalent effect; or
(ii) a serious shortage, or threat thereof, of a product essential to the exporting
Party,
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for
the exporting Party, that Party may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 32. The measures shall be non-discriminatory and beeliminated when conditions no longer justify their maintenance.WT/REG144/1
Page 11
Article 31
The Member States of the European Union and Estonia shall progressively adjust any State
monopolies of a commercial character so as to ensure that, by the end of 1999, no discrimination
regarding the conditions under which goods are procured and marketed exists between nationals ofthe Member States and of Estonia. The Association Council will be informed about the measures
adopted to implement this objective.
Article 32
1. In the event of the Community or Estonia subjecting imports of products liable to give rise to
the difficulties referred to in Article 29 to an administrative procedure having as its purpose the rapidprovision of information on the trend of trade flows, it shall inform the other Party.
2. In the cases specified in Articles 28, 29 and 30, before taking the measures provided for
therein or, in cases to which paragraph 3(d) applies, as soon as possible, the Community or Estonia, as
the case may be, shall supply the Association Council with all relevant information with a view to
seeking a solution acceptable to the two Parties.
In the selection of measures, priority must be given to those which least disturb the
functioning of this Agreement.
The safeguard measures shall be notified imme diately to the Association Council and shall be
the subject of periodic consultations within that body, particularly with a view to establishing a
timetable for their abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
(a) as regards Article 29, the difficulties arising from the situation referred to in that
Article shall be referred for examination to the Association Council, which may takeany decision needed to put an end to such difficulties.
If the Association Council or the exporting Party has not taken a decision putting an
end to the difficulties or no other satisfactory solution has been reached within 30
days of the matter being referred, the importing Party may adopt the appropriate
measures to remedy the problem. These measures must not exceed the scope of what
is necessary to remedy the difficulties which have arisen;
(b) as regards Article 28, the Association Council shall be informed of the dumping case
as soon as the authorities of the importing Party have initiated an investigation. If no
end has been put to the dumping or if no other satisfactory solution has been reached
within 30 days of the matter being referred  to the Association Council, the importing
Party may adopt the appropriate measures;
(c) as regards Article 30, the difficulties arising from the situations referred to in that
Article shall be referred for examination to the Association Council.
The Association Council may take any d ecision needed to put an end to the
difficulties. If it has not taken such a decision within 30 days of the matter being
referred to it, the exporting Party may apply appropriate measures on the exportationof the product concerned;WT/REG144/1
Page 12
(d) where exceptional circumstances requiring immediate action make prior information
or examination, as the case may be, impossible, the Community or Estonia whichever
is concerned may, in the situations specified in Articles 28, 29 and 30, apply
forthwith the precautionary measures strictly necessary to deal with the situation.
Article 33
Protocol 3 lays down rules of origin for the application of the tariff preferences provided for
in this agreement as well as the methods of administrative cooperation therewith.
Article 34
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public policy or public security; the protection of
health and life of humans, animals or plants; the protection of national treasures of artistic, historic or
archaeological value or the protection of intellectual, industrial and commercial property or rules
relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of
arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 35
Protocol 4 lays down the specific provisions to apply to trade between Estonia of the one part
and Spain and Portugal of the other part, and it will be valid until 31 December 1995.
TITLE IV
Movement Of Workers, Establishment, Supply Of Services
CHAPTER I
Movement Of Workers
Article 36
1. Subject to the conditions and modalities applicable in each Member State:
− the treatment accorded to workers of Estonian nationality legally employed in the
territory of a Member State shall be free from any discrimination based on
nationality, as regards working conditions, remuneration or dismissal, as compared
with its own nationals,
− the legally resident spouse and children of a worker legally employed in the territory
of a Member State, with the exception of seasonal workers and of workers comingunder bilateral agreements in the sense of Article 40, unless otherwise provided by
such agreements, shall have access to the labour market of that Member State, during
the period of that worker's authorised stay of employment.
2. Estonia shall, subject to the conditions and modalities applicable in that country, accord the
treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally
employed in its territory as well as their spouse and children who are legally resident in the said
territory.WT/REG144/1
Page 13
Article 37
1. With a view to coordinating social security systems for workers of Estonian nationality,
legally employed in the territory of a Member State and for the members of their family, legally
resident there, and subject to the conditions and modalities applicable in each Member State,
− all periods of insurance, employment or residence completed by such workers in the
various Member States shall be added to gether for the purpose of pensions and
annuities in respect of old age, invalidity and death and for the purpose of medical
care for such workers and such family members,
− any pensions or annuities in respect of old age, death, industrial accident or
occupational disease, or of invalidity resu lting therefrom, with the exception of non-
contributory benefits, shall be freely transferable at the rate applied by virtue of the
law of the debtor Member State or States,
− the workers in question shall receive family allowances for the members of their
family as defined above.
2. Estonia shall accord to workers who are nationals of a Member State and legally employed in
its territory, and to members of their families legally resident there, treatment similar to that specified
in the second and third idents of paragraph 1.
Article 38
1. The Association Council shall by decision adop t the appropriate provisions to implement the
objective set out in Article 37.
2. The Association Council shall by decision adopt detailed rules for administrative cooperation
providing the necessary management and control guarantees for the application of the provisions
referred to in paragraph 1.
Article 39
The provisions adopted by the Association Council in accordance with Article 38 shall not
affect any rights or obligations arising from bilateral agreements linking Estonia and the Member
States where those agreements provide for more favourable treatment of nationals of Estonia or of the
Member States.
Article 40
1. Taking into account the labour market situation in the Member State concerned, subject to its
legislation and to the respect of rules in force in that Member State in the area of mobility of workers,
− the existing facilities for access to employment for Estonian workers accorded by
Member States under bilateral agreements ought to be preserved and if possible
improved,
− the other Member States shall consider favourably the possibility of concluding
similar agreements.WT/REG144/1
Page 14
2. The Association Council shall examine grantin g other improvements including facilities of
access for professional training, in conformity with rules and procedures in force in the Member
States, and taking account of the labour market situation in the Member States and in the Community.
Article 41
From the end of 1999 or sooner if socio-econom ic conditions in Estonia have been largely
aligned on those of the Member States and if the employment situation in the Community permits, the
Association Council will consider ways of further improving the movement of workers. The
Association Council shall make recommendations to such end.
Article 42
In the interest of facilitating the restructuring of labour resources resulting from the economic
restructuring in Estonia, the Community shall provid e technical assistance for the establishment of a
suitable social security system in Estonia as set out in Article 92 of this Agreement.
CHAPTER II
Establishment
Article 43
1. The Community and its Member States shall grant, except for the sectors included in
Annex VII,
(i) from entry into force of this Agreem ent, treatment no less favourable than
that accorded by Member States to their own companies or to any thirdcountry company, whichever is the better, with regard to the establishment of
Estonian companies;
(ii) from entry into force of this Agreement, to subsidiaries and branches of
Estonian companies, established in their territory, treatment no less
favourable than that accorded by Member States to their own companies and
branches or to subsidiaries and branches of any third country company
established in their territory, whichever is the better, in respect of theiroperation;
(iii) as from 31 December 1999, for the establishment of Estonian nationals and
their operation, once established, treatment no less favourable than that
accorded to Community nationals or to nationals of any third country,
whichever is the better.
2. Estonia shall grant from the entry into force of this Agreement:
(i) treatment no less favourable than that accorded to Estonian companies or to
companies of any third country, whichever is the better, with regard to the
establishment of Community companies;
(ii) to subsidiaries and branches of Community companies, established in its
territory, treatment no less favourable than that accorded to Estonian
companies and branches, or to subsidiaries and branches of any third countryWT/REG144/1
Page 15
company established in its territory, whichever is the better, in respect of
their operation;
(iii) for the establishment of Community nationals and their operation, once
established, treatment no less favourable than that accorded to Estonian
nationals or to nationals of any third country, whichever is the better.
Article 44
1. The provisions of Article 43 shall not apply to air transport, inland waterways and maritime
cabotage transport services.
2. The Association Council may make recomme ndations for improving establishment and
operations in the areas covered by paragraph 1.
Article 45
For the purposes of this Agreement:(a) a 'Community company` or an 'Estonian company` respectively shall mean a
company set up in accordance with the laws of a Member State or of Estoniarespectively and having its registered office or central administration or principal
place of business within the Community or in the territory of Estonia respectively.
However, should the company, set up in accordance with the laws of a Member State
or Estonia respectively, have only its registered office within the Community or in the
territory of Estonia respectively, the company shall be considered a Community or anEstonian company respectively if its operations possess a real and continuous link
with the economy of one of the Member States or Estonia respectively;
(b) 'subsidiary` of a company shall mean a co mpany which is effectively controlled by
the first company.
(c) 'branch` of a company shall mean a place of business not having legal personality
which has the appearance of permanency, such as the extension of a parent body, has
a management and is materially equipped to negotiate business with third parties so
that the latter, although knowing that there will if necessary be a legal link with the
parent body, the head office of which is abroad, do not have to deal directly with such
parent body but may transact business at the place of business constituting the
extension;
(d) 'establishment` shall mean:
(i) as regards nationals, the right to take up economic activities as self-employed
persons and to set up undertakings, in particular companies, which they
effectively control. Self-employment and business undertakings by nationals
shall not extend to seeking or taking employment in the labour market or
confer a right of access to the labour market of another Party. The provisionsof this chapter do not apply to those who are not exclusively self-employed;
(ii) as regards Community or Estonian companies, the right to take up economic
activities by means of the setting up of subsidiaries and branches in Estonia
or in the Community respectively;WT/REG144/1
Page 16
(e) 'operation` shall mean the pursuit of economic activities;
(f) 'economic activities` shall in principle include activities of an industrial, commercial
and professional character and activities of craftsmen;
(g) 'Community national` and 'Estonian national` shall mean respectively a natural person
who is a national of one of the Member States or of Estonia;
(h) with regard to international maritime transport, including inter-modal operations
involving a sea leg, nationals of the Member States or of Estonia established outside
the Community or Estonia respectively, and shipping companies established outside
the Community or Estonia and controlled by nationals of a Member State or Estonian
nationals respectively, shall also be beneficiaries of the provisions of Chapter II and
Chapter III, if their vessels are registered in that Member State or in Estonia
respectively in accordance with their respective legislation.
Article 46
1. Subject to the provisions of Article 43, with the exception of financial services described in
Annex VIII, each Party may regulate the establishment and operation of companies and nationals on
its territory, insofar as these regulations do not discriminate against companies and nationals of theother Party in comparison with its own companies and nationals.
2. In respect of financial services, notwithstanding any other provisions of this Agreement, a
Party shall not be prevented from taking measures for prudential reasons, including for the protection
of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial
service supplier, or to ensure the integrity and stability of the financial system. Such measures shallnot be used as a means of avoiding the Party's obligations under the Agreement.
3. Nothing in the Agreement shall be construed to require a Party to disclose information
relating to the affairs and accounts of individual customers or any confidential or proprietary
information in the possession of public entities.
Article 47
1. The provisions of Articles 43 and 46 do not preclude the application by a Party of particular
rules concerning the establishment and operation in its territory of branches of companies of another
Party not incorporated in the territory of the first Party, which are justified by legal or technical
differences between such branches as compared with branches of companies incorporated in its
territory or, as regards financial services, for prudential reasons.
2. The difference in treatment shall not go beyond what is strictly necessary as a result of such
legal or technical differences or, as regards financial services, for prudential reasons.
Article 48
1. A 'Community company` or an 'Estonian company` established in the territory of Estonia or
the Community respectively shall be entitled to employ, or have employed by one of its subsidiariesor branches, in accordance with the legislation in force in the host country of establishment, in the
territory of Estonia and the Community respectively, employees who are nationals of Community
Member States and Estonia respectively, provided that such employees are key personnel as defined
in paragraph 2 of this Article, and that they are employed exclusively by companies, subsidiaries or
branches.WT/REG144/1
Page 17
The residence and work permits of such employees shall only cover the period of such
employment.
2. Key personnel of the abovementioned companies herein referred to as 'organisations` are
'intra-corporate transferees` as defined in (c) of this paragraph in the following categories, provided
that the organisation is a juridical person and that the persons concerned have been employed by it orhave been partners in it (other than as majority  shareholders), for at least the year immediately
preceding such movement:
(a) persons working in a senior position with an organisation, who primarily direct the
management of the establishment, receiving general supervision or direction
principally from the board of directors or stockholders of the business or their
equivalent, including:
− directing the establishment or a department or subdivision of the
establishment,
− supervising and controlling the work of other supervisory, professional or
managerial employees,
− having the authority personally to recruit and dismiss or recommend
recruiting, dismissing or other personnel actions;
(b) persons working within an organisation who possess uncommon knowledge essential
to the establishment's service, research equipment, techniques or management. The
assessment of such knowledge may reflect, apart from knowledge specific to the
establishment, a high level of qualification referring to a type of work or trade
requiring specific technical knowledge, including membership of an accreditedprofession;
(c) an 'intra-corporate transferee` is defined as a natural person working within an
organisation in the territory of a Party, and being temporarily transferred in the
context of pursuit of economic activities in the territory of the other Party; the
organisation concerned must have its principal place of business in the territory of aParty and the transfer must be to an establishment (branch, subsidiary) of that
organisation, effectively pursuing like economic activities in the territory of the other
Party.
3. The entry into and the temporary presence within the territory of the Community or Estonia of
Estonian and Community nationals respectively shall be permitted, when these representatives ofcompanies are persons working in a senior position, as defined in paragraph 2(a) above, within a
company, and are responsible for the setting up of a Community subsidiary or branch of an Estonian
company or of an Estonian subsidiary or branch of a Community company in a Community Member
State or Estonia respectively when
− those representatives are not engaged in making direct sales or supplying services,
and
− the company has its principal place of business outside the Community or Estonia,
respectively, and has no other representative, office, branch or subsidiary in that
Community Member State or Estonia respectively.WT/REG144/1
Page 18
Article 49
In order to make it easier for the Community na tionals and Estonian nationals to take up and
pursue regulated professional activities in Estonia and the Community respectively, the Association
Council shall examine which steps are necessary to be taken to provide for the mutual recognition ofqualifications. It may take all necessary measures to that end.
Article 50
Up to the end of 1999, Estonia may introduce measures which derogate from the provisions
of this Chapter as regards the establishment of Community companies and nationals if certain
industries:
− are undergoing restructuring, or
− are facing serious difficulties, particularly where these entail serious social problems
in Estonia, or
− face the elimination or a drastic reduction of the total market share held by Estonian
companies or nationals in a given sector or industry in Estonia, or
− are newly emerging industries in Estonia.
Such measures:
− shall cease to apply at the latest on 31 December 1999,
− shall be reasonable and necessary in order to remedy the situation, and
− shall only relate to establishments in Estoni a to be created after the entry into force of
such measures and shall not introduce discrimination concerning the operations of
Community companies or nationals already established in Estonia at the time of
introduction of a given measure compared with Estonian companies or nationals.
While devising and applying such measures, Estonia shall grant whenever possible to
Community companies and nationals a preferential treatment, and in no case a treatment less
favourable than that accorded to companies or nationals from any third country.
Prior to the introduction of these measures, Estonia shall consult the Association Council and
shall not put them into effect before a one-month period following the notification of the Association
Council of the concrete measures to be introduced by Estonia, except where the threat of irreparable
damage requires the taking of urgent measures in which case Estonia shall consult the Association
Council immediately after their introduction.WT/REG144/1
Page 19
CHAPTER III
Supply Of Services
Article 51
1. The Parties undertake in accordance with the following provisions to take the necessary steps
to allow progressively the supply of services by Community or Estonian companies or nationals
which are established in a Party other than that of the person for whom the services are intended.
2. In step with the liberalisation process mentione d in paragraph 1, and subject to the provisions
of Article 55, the Parties shall permit the temporary movement of natural persons providing the
service or who are employed by the service provider as key personnel as defined in Article 48(2),including natural persons who are representatives of a Community or an Estonian company or
national and are seeking temporary entry for the purp ose of negotiating for the sale of services or
entering into agreements to sell services for that service provider, where those representatives will not
be engaged in making direct sales to the general public or in supplying services themselves.
3. At the latest eight years after the entry into force of this Agreement, the Association Council
shall take the measures necessary to implement progressively the provisions of paragraph 1. Account
shall be taken of the progress achieved by the Parties in the approximation of their laws.
Article 52
1. The Parties shall not take any measures or actions which render the conditions for the supply
of services by Community and Estonian nationals or companies which are established in a Party other
than that of the person for whom the services are intended significantly more restrictive as compared
with the situation existing on the day preceding the day of entry into force of the Agreement.
2. If one Party is of the view that measures introduced by the other Party since the signature of
the Agreement result in a situation which is significantly more restrictive in respect of supply ofservices as compared with the situation existing at the date of signature of the Agreement, such first
Party may request the other Party to enter into consultations.
Article 53
1. With regard to international maritime transport,  the Parties undertake to apply effectively the
principle of unrestricted access to the market and traffic on a commercial basis.
(a) The above provision does not prejudice the rights and obligations arising from the
United Nations Code of Conduct for Liner Conferences, as applicable to one or other
Party to the present Agreement. Non-conference lines will be free to operate in
competition with a conference as long as they adhere to the principle of fair
competition on a commercial basis.
(b) The Parties affirm their commitment to a freely competitive environment as being an
essential feature of the dry and liquid bulk trade.
2. In applying the principles of paragraph 1, the Parties shall:
(a) not apply, as from entry into force of this Agreement, any cargo sharing provisions of
bilateral agreements between any Member State of the Community and the former
Soviet Union;WT/REG144/1
Page 20
(b) not introduce cargo sharing clauses into future bilateral agreements with third
countries, other than in those exceptional circumstances where liner shipping
companies from one or other Party to the present Agreement would not otherwise
have an effective opportunity to ply for trade to and from the third country concerned;
(c) prohibit cargo sharing arrangements in future bilateral agreements concerning dry and
liquid bulk trade;
(d) abolish upon entry into force of this Agreement all unilateral measures,
administrative, technical and other obstacles which could have restrictive or
discriminatory effects on the free supply of services in international maritime
transport.
Each Party shall grant, inter alia, no less favourable treatment for the ships operated
by nationals or companies of the other Party than that accorded to a Party's own shipswith regard to access to ports open to inte rnational trade, the use of infrastructure and
auxiliary maritime services of the ports, as well as related fees and charges, customs
facilities and the assignment of berths and facilities for loading and unloading.
3. Nationals and companies of the Community providing international maritime transport
services shall be free to provide international sea-river services in the inland waterways of Estonia and
vice versa.
4. With a view to ensuring the transit of goods through the territory of each Party, the Parties
undertake to conclude an agreement as soon as possible and before the end of 1999 on the transit of
inter-modal traffic through each other's territory.
5. With a view to assuring a coordinated development and progressive liberalisation of transport
between the Parties, adapted to their reciprocal commercial needs, the conditions of mutual market
access and provision of services in transport by road, rail and inland waterways and, if applicable, in
air transport shall be dealt with by specific transport agreements where appropriate negotiated
between the Parties after entry into force of this Agreement.
6. Prior to the conclusion of the agreements referred to in paragraph 5, the Parties shall not take
any measures or actions which are more restrictive or discriminatory as compared with the situation
existing on the day preceding the day of entry into force of the Agreement.
7. By the end of 1998, Estonia shall progressively adapt its legislation including administrative,
technical and other rules to that of the Community le gislation existing at any time in the field of road,
rail, inland waterway and air transport insofar as it serves liberalisation purposes and mutual access to
markets of the Parties and facilitates the movement of passengers and of goods. Progress in this fieldwill be jointly assessed by the Parties within the framework of the Association Council at least every
two years.
8. In step with the common progress in the achievement of the objectives of this chapter, the
Association Council shall examine ways of creating the conditions necessary for improving freedom
to provide road, rail, inland waterway and air transport services.WT/REG144/1
Page 21
CHAPTER IV
General Provisions
Article 54
1. The provisions of this Title shall be applied subject to limitations justified on grounds of
public policy, public security or public health.
2. They shall not apply to activities which in the territory of either Party are connected, even
occasionally, with the exercise of official authority.
Article 55
For the purpose of this Title nothing in the Agreement shall prevent the Parties from applying
their laws and regulations regarding entry and stay, work, labour conditions and establishment of
natural persons and supply of services, provided that - in so doing - they do not apply them in a
manner as to nullify or impair the benefits accruing to any Party under the terms of a specific
provision of the Agreement.
Article 56
Companies which are controlled and exclusively owned by Estonian companies or nationals
and Community companies or nationals jointly shall also be beneficiaries of the provisions ofChapters II, III and IV of this Title.
Article 57
1. The most favoured nation treatment granted in accordance with the provisions of this Title
shall not apply to the tax advantages which the Par ties are providing or will provide in the future on
the basis of agreements to avoid double taxation, or other tax arrangements.
2. Nothing in this Title shall be construed to prevent the adoption or enforcement by the Parties
of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of
agreements to avoid double taxation and other tax arrangements, or domestic fiscal legislation.
3. Nothing in this Title shall be construed to prevent Member States or Estonia from
distinguishing, in the application of the relevant provisions of their fiscal legislation, betweentaxpayers who are not in identical situations, in particular as regards their place of residence.
Article 58
The provisions of this Title shall be progressively adjusted by the Parties. In formulating
recommendations to this effect, the Associatio n Council shall take into account the respective
obligations of the Parties under the General Agreement on Trade in Services (GATS), and in
particular of its Article V.
Article 59
The provisions of this Agreement shall not prejudice the application by each Party of any
measure necessary to prevent the circumvention of its measures concerning third country access to its
market through the provisions of this Agreement.WT/REG144/1
Page 22
TITLE V
Payments, Capital, Competition And Other Economic Provisions, Approximation Of Laws
CHAPTER I
Current Payments And Movement Of Capital
Article 60
The Parties undertake to authorise, in freely convertible currency, in accordance with the
provisions of Article VIII of the Articles of Agreement of the International Monetary Fund, anypayments and transfers on the current account of balance of payments between residents of the
Community and Estonia.
Article 61
1. With regard to transactions on the capital account of balance of payments, from entry into
force of the Agreement, the Member States and Estonia respectively shall ensure the free movement
of capital relating to direct investments made in companies formed in accordance with the laws of the
host country and investments made in accordance with  the provisions of Chapter II of Title IV, and
the liquidation or repatriation of these investments and of any profit stemming therefrom.
Without prejudice to Article 43(1)(iii), complete free movement of capital relating to
establishment and operations of self-employed persons, including the liquidation and repatriation of
such investments, shall be ensured from  entry into force of this Agreement.
2. With regard to transactions on the capital account of balance of payments, from entry into
force of this Agreement the Member States and Estonia respectively shall ensure the free movement
of capital relating to portfolio investment. This shall also apply to the free movement of capital
relating to credits related to commercial transactions or the provision of services in which a resident
of one of the Parties is participating and to financial loans.
3. Without prejudice to paragraph 1, the Member States and Estonia shall not introduce any new
restrictions on the movement of capital and curren t payments connected therewith between residents
of the Community and Estonia and shall not make the existing arrangements more restrictive.
4. The Parties shall consult each other with a view to facilitating the movement of capital
between the Community and Estonia in order to promote the objective of the present Agreement.
Article 62
1. The Parties shall take measures permitting the creation of the necessary conditions for the
further gradual application of Community rules on the free movement of capital.
2. The Association Council shall examine ways of enabling Community rules on the movement
of capital to be applied in full.WT/REG144/1
Page 23
CHAPTER II
Competition And Other Economic Provisions
Article 63
1. The following are incompatible with the proper functioning of this Agreement, insofar as they
may affect trade between the Community and Estonia:
(i) all agreements between undertakings, decisions by associations of
undertakings and concerted practices between undertakings which have as
their object or effect the prevention, restriction or distortion of competition;
(ii) abuse by one or more undertakings of a dominant position in the territories of
the Community or of Estonia as a whole or in a substantial part thereof;
(iii) any public aid, which distorts or threatens to distort competition by favouring
certain undertakings or the production of certain goods.
2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the
application of the rules of Articles 85, 86 and 92 of the Treaty establishing the European Communityor, for products covered by the ECSC Treaty, on th e basis of corresponding rules of the ECSC Treaty
including secondary legislation.
3. The Association Council shall, by 31 December 1997, adopt by decision the necessary rules
for the implementation of paragraphs 1 and 2.
Until these rules are adopted, the provisions of the Agreement on interpretation and
application of Articles VI, XVI and XXIII of the GATT shall be applied as the rules for the
implementation of paragraph 1(iii) and related parts of paragraph 2.
4. (a) For the purposes of applying the provisions of paragraph 1(iii), the Parties recognise
that until 31 December 1999 any public aid granted by Estonia shall be assessed
taking into account the fact that Estonia shall be regarded as an area identical to thoseareas of the Community described in Article 92(3)(a) of the Treaty establishing the
European Community. The Association Counc il shall, taking into account the
economic situation of Estonia, decide whether that period should be extended by
further periods of five years.
(b) Each Party shall ensure transparency in the area of public aid, inter alia, by reporting
annually to the other Party on the total amount and the distribution of the aid given
and by providing, upon request, information on aid schemes. Upon request by oneParty, the other Party shall provide information on particular individual cases of
public aid.
5. With regard to products referred to in Chapters II and III of Title III:
− the provision of paragraph 1(iii) does not apply,
− any practices contrary to paragraph 1(i) should be assessed according to the criteria
established by the Community on the basis of Articles 42 and 43 of the Treaty
establishing the European Community and in particular of those established in
Council Regulation No 26.WT/REG144/1
Page 24
6. If the Community or Estonia considers that a particular practice is incompatible with the
terms of the first paragraph of this Article, and
− is not adequately dealt with under the implementing rules referred to in paragraph 3,
or
− in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interests of the other Party or material injury to its domestic industry,
including its services industry,
it may take appropriate measures after consul tation within the Associ ation Council or after
30 working days following referral for such consultation.
In the case of practices incompatible with paragraph 1(iii) of this Article, such appropriate
measures may, where the GATT applies thereto, only be adopted in conformity with the proceduresand under the conditions laid down by the GATT and any other relevant instrument negotiated under
its auspices which are applicable between the Parties.
7. Notwithstanding any provisions to the contrary adopted in conformity with paragraph 3, the
Parties shall exchange information taking into a ccount the limitations imposed by the requirements of
professional and business secrecy.
Article 64
1. The Parties shall endeavour to avoid the imposition of restrictive measures including
measures relating to imports for balance of payments purposes. In the event of their introduction, theParty having introduced the same shall present to the other Party, as soon as possible, a time schedule
for their removal.
2. Where one or more Member State or Estonia is in serious balance of payments difficulties, or
under imminent threat thereof, the Community or Estonia, as the case may be, may, in accordance
with the conditions established under the GATT, adopt restrictive measures, including measuresrelating to imports, which shall be of limited duration and may not go beyond what is necessary to
remedy the balance of payments situation. The Community or Estonia, as the case may be, shall
inform the other Party forthwith.
3. Any restrictive measures shall not apply to transfers related to investments and in particular to
the repatriation of amounts invested or reinvested and of any kind of revenues stemming therefrom.
Article 65
With regard to public undertakings, and undertakings to which special or exclusive rights
have been granted, the Association Council shall ensure that as from 1 January 1998, the principles of
the Treaty establishing the European Community, notably Article 90, and the principles of the
concluding document of the April 1990 Bonn meeting of the CSCE, notably entrepreneurs' freedom
of decision, are upheld.
Article 66
1. Pursuant to the provisions of this Article and of Annex IX, the Parties confirm the importance
that they attach to ensure adequate and effective protection and enforcement of intellectual, industrial
and commercial property rights.WT/REG144/1
Page 25
2. Estonia shall continue to improve the protection of intellectual, industrial and commercial
property rights in order to provide, by 31 December 1999, for a level of protection similar to that
existing in the Community, including effe ctive means of enforcing such rights.
3. By 31 December 1999, Estonia shall accede to the multilateral conventions on intellectual,
industrial and commercial property rights referred to in paragraph 1 of Annex IX to which Member
States of the Community are parties or which are de facto applied by Member States according to the
relevant provisions contained in these conventions.
4. If problems in the area of intellectual, industrial and commercial property affecting trading
conditions were to occur, urgent consultations will be  undertaken, at the request of either Party, with a
view to reaching mutually satisfactory solutions.
Article 67
1. The Parties consider the opening up of the award of public contracts on the basis of non-
discrimination and reciprocity, in particular in the GATT and WTO context, to be a desirable
objective.
2. The Estonian companies as defined in Article 45 of this Agreement, shall be granted access to
contract award procedures in the Community pursuant to Community procurement rules under atreatment no less favourable than that accorded to Community companies as of the entry into force of
this Agreement.
Community companies and branches of Community companies in the sense of Article 45 and
subsidiaries of Community companies as described in Article 45 and in the forms of Article 56 shall
be granted access to contract award procedures in Estonia under a treatment no less favourable thanthat accorded to Estonian companies as of the entry into force of this Agreement.
The provisions in this paragraph shall also apply to public contracts covered by Directive
93/38/EEC of 14 June 1993 once Estonia has introduced the appropriate legislation.
3. As regards establishment, operations, supply of services between the Community and Estonia,
as well as employment and movement of labour linked to the fulfilment of public contracts, the
provisions of Article 36 to 59 of this Agreement are applicable.
CHAPTER III
Approximation Of Laws
Article 68
The Parties recognise that an important condition for Estonia's economic integration into the
Community is the approximation of Estonia's existing and future legislation to that of the Community.Estonia shall endeavour to ensure that its legislation will be gradually made compatible with that of
the Community.
Article 69
The approximation of laws shall extend to the following areas in particular: customs law,
company law, banking law, company accounts and taxation, intellectual property, financial services,
rules on competition, protection of health and life of humans, animals and plants, protection ofWT/REG144/1
Page 26
workers including health and safety at work, consumer protection, indirect taxation, technical rules
and standards, nuclear law and regulation, transport, telecommunications, environment, public
procurement, statistics and product liability.
Within these areas rapid progress in the approximation of laws should in particular be made in
the fields of the internal market, competition, protection of workers, environmental protection,
consumer protection, financial services and technical rules and standards.
Article 70
The Community shall provide Estonia with technical assistance for the implementation of
these measures, which may include, inter alia:
− the exchange of experts,
− the provision of early information especially on relevant legislation,
− organisation of seminars,
− training activities,
− aid for the translation of Community legislation in the relevant sectors.
TITLE VI
Economic Cooperation
Article 71
1. The Community and Estonia shall further develop economic cooperation aimed at
contributing to Estonia's development and growth potential. Such cooperation shall strengthenexisting economic links on the widest possible foundation, to the benefit of both Parties.
2. Policies and other measures shall be designed to bring about the economic and social
development of Estonia and will be guided by the principle of sustainable development. These
policies should ensure that environmental considerations are also fully incorporated from the outset
and that they are linked to the requirements of harmonious social development.
3. To this end the cooperation should focus in particular on policies and measures related to
industry, investment, agriculture and the agro-industrial sector, energy, transport, regional
development and tourism.
4. Special attention shall be devoted to measures capable of fostering cooperation between the
three Baltic countries, and with the other countries of central and eastern Europe as well as the othercountries bordering the Baltic Sea with a view to an integrated development of the region.
Article 72
Industrial Cooperation
1. Cooperation shall seek to promote the following in particular:WT/REG144/1
Page 27
− industrial cooperation between the economic operators of the two Parties, with the
particular aim of strengthening the private sector in Estonia,
− Community participation in Estonia's efforts in both public and private sectors to
modernise and restructure its industry, which will effect the further development of amarket economy under conditions which ensure that the environment is protected,
− the restructuring of individual sectors,
− the establishment of new undertakings in areas offering potential for growth,
particularly in high technology, clean technologies, consumer goods and market
services, branches of light industry and the wood industry.
2. Industrial cooperation initiatives shall take into account priorities determined by Estonia. The
initiatives should seek in particular to establis h a suitable framework for undertakings, to improve
management know-how and to promote transparency as regards markets and conditions for
undertakings. The Community shall provide Estonia with technical assistance where appropriate.
Article 73
Investment Promotion And Protection
1. Cooperation shall aim at maintaining and, if necessary, improving a legal framework and a
favourable climate for private investment and its protection, both domestic and foreign, which is
essential to economic and industrial reconstruction and development in Estonia. The cooperation shall
also aim to encourage and promote foreign investment and privatisation in Estonia.
2. The particular aims of cooperation shall be:
− for Estonia to further develop and maintain a legal framework which favours and
protects investment,
− the conclusion, where appropriate, with Member States of bilateral agreements for the
promotion and protection of investment,
− to proceed with deregulation and to improve economic infrastructure,
− to exchange information on investment oppor tunities in the context of trade fairs,
exhibitions, trade weeks and other events.
Assistance from the Community could be granted in the initial stage to agencies which
promote inward investment.
3. Estonia shall honour the rules on Trade-Relate d Aspects of Investme nt Measures (TRIMs).
Article 74
Small And Medium-Sized Enterprises
1. The Parties shall aim to develop and strengthen small and medium-sized enterprises (SMEs)
and cooperation between SMEs in the Community and Estonia.WT/REG144/1
Page 28
2. They shall encourage the exchange of information and know-how by means of:
− improving, where appropriate, the legal, administrative, technical, tax and financial
conditions necessary for the setting-up and expansion of SMEs and for cross-border
cooperation,
− providing the specialised services required by SMEs (management training,
accounting, marketing, quality control, etc.) and the strengthening of agencies
providing such services,
− establishing appropriate links with Community operators via European business
cooperation networks, in order to improve the flow of information to SMEs and topromote cross-border cooperation.
3. The cooperation shall include the supply of technical assistance, in particular for the
establishment of appropriate institutional back-up for SMEs at both national and regional level,
regarding financial, training, advisory, technological and marketing services.
Article 75
Agricultural And Industrial Sta ndards And Conformity Assessment
1. The cooperation between the Parties shall aim in particular to reduce differences in standards,
technical regulations and conformity assessment procedures, with Community technical assistance
where necessary.
2. To this end, the cooperation shall seek:
− to promote the use of Community technical regulations and European standards and
conformity assessment procedures, recognising that, to reach Estonia's objectives of
environmental quality, the country is free to develop and implement special (higher)
standards if necessary,
− where appropriate, to conclude agreements on mutual recognition in these fields,
− to encourage Estonia's active and regular participation in the work of specialised
organisations (CEN, Cenelec, ETSI, EOTC, Euromet),
− technical assistance, where appropriate, in training programmes for Estonian experts
in the field of standardisation, metrology, certification and quality systems in the
Community,
− to promote the exchange of technical and methodological information in the field of
quality control and production process.
3. The Community shall provide Estonia with technical assistance where appropriate.WT/REG144/1
Page 29
Article 76
Cooperation In Science And Technology
1. The Parties shall promote cooperation in research and technological development activities.
They shall devote special attention to the following:
− the exchange of information on each other's science and technology policies,
− the organization of joint scientific meetings (seminars and workshops),
− joint R & D activities aimed at encouraging scientific progress and the transfer of
technology and know-how,
− training activities and mobility programmes for researchers and specialists from both
sides,
− the development of an environment conducive to research and the application of new
technologies and adequate protection of the intellectual property of results ofresearch,
− Estonia's participation in Community research programmes in accordance with
paragraph 3.
Technical assistance shall be provided where appropriate.
2. The Association Council shall determine the appropriate procedures for developing
cooperation.
3. Cooperation under the Community's framework programme in the field of research and
technological development shall be implemented acco rding to specific arrangements to be negotiated
and concluded in accordance with the legal procedures of each Party.
Article 77
Education And Training
1. Cooperation shall aim at a harmonious development of human resources and at raising the
level of general education and professional qualifications in Estonia, both in the public and private
sectors, taking into consideration the priorities of Estonia. Institutional frameworks and plans of
cooperation will be established under the auspices of the European Training Foundation, the Tempusprogramme and the Eurofaculty. Participation of Estonia in other Community programmes shall also
be considered in this context.
2. The cooperation shall focus in particular on the following areas:
− reform of the education and training system in Estonia,
− initial training, in-service training and retraining, including the training of public and
private sector executives and senior civil servants, particularly in priority areas to be
determined,WT/REG144/1
Page 30
− in-service training for teachers,
− cooperation between universities, cooperation between universities and firms,
mobility for teachers, students, administrators and young people,
− promoting teaching in the field of European Studies within the appropriate
institutions,
− mutual recognition of periods of studies and diplomas,
− promoting language training in Estonia, in particular for resident persons belonging to
minorities,
− teaching of Community languages, training of translators and interpreters and
promotion of the use of Community standards and terminology,
− development of distance education and new training technologies,
− provision of training materials and equipment,
− cooperation with the European professional education development centre (Cedefop).
Article 78
Agriculture And The Agro-Industrial Sector
1. Cooperation in this field shall aim at modernis ing, restructuring and privatising agriculture,
fresh water (inland) fisheries and the agro-industrial sector as well as forestry. Such cooperation will
promote the protection and sustainable use of natural landscapes and non-polluted soils.
To this end cooperation shall endeavour notably to:
− develop private farms and distribution channels, methods of storage, marketing, etc.,
− modernize the rural infrastructure (transport, water supply, telecommunications),
− improve land-use planning, including construction and town planning,
− develop criteria for areas for extensive and intensive agriculture, forestry and fresh
water (inland) fisheries in accordance with national and regional development plansand programmes,
− establish and promote effective cooperation on agricultural information systems,
− improve productivity and quality by using appropriate methods and products, provide
training and monitoring in the use of anti-pollution methods connected with inputs,
− promote development of organic agriculture, processing, marketing of production,
− promote implementation of Community food standards,WT/REG144/1
Page 31
− restructure, develop, mondernise and decentralise food-processing firms and their
marketing techniques,
− promote complementarity in agriculture,
− promote industrial cooperation in agriculture and the exchange of know-how,
particularly between the private sectors in the Community and Estonia,
− develop cooperation on animal and plant health with the aim of bringing about
gradual harmonisation with Community standards through assistance for training andthe organisation of checks,
− promote exchange of information in respect of agricultural policy and legislation,
− promote joint ventures, particularly for cooperation on the markets of third countries.
2. To these ends, technical assistance shall be provided by the Community as appropriate.
Article 79
Fisheries
1. The Parties shall develop their cooperation on fisheries in accordance with the Agreement on
Fisheries Relations between the European Economic Community and the Republic of Estonia.
2. The cooperation shall in particular take into account:
− the establishment of sustainable fishing in the world's oceans and the Baltic Sea,
− traditional cooperation on fisheries,
− the necessity of developing fishing control systems, catch statistics and information
systems,
− the development of scientific potential for the study of fishery resources in the Baltic
Sea and mutual action for the conservation and renewal of fish stocks (especiallysalmon and cod) and the introduction of modern technologies in this field,
− the gradual modernisation of Estonia's fishing fleet and fish-processing industry,
through the establishment of joint ventures,
− the development of private enterprises in this field and the necessity of obtaining EC
experience in marketing techniques,
− the development of industrial cooperation in fisheries and exchange of know-how,
− the introduction in Estonia of EC production quality and health standards for fish
farming (including feed),
− the exchange of information on fisheries policy and legislation and on the
establishment of a market for fishery products,WT/REG144/1
Page 32
− cooperation in international fishery organisations.
Article 80
Energy
1. Within the principles of the market economy and of the Treaty on the European Energy
Charter, the Parties shall cooperate to develop the progressive integration of the energy markets in
Europe.
2. The cooperation shall focus on the following in particular:
− formulation and planning of energy policy, including its long-term aspects,
− management and training in the energy sector,
− promotion of energy saving and energy efficiency,
− development of energy resources,
− improvement of distribution as well as improvement and diversification of supply,
− environmental impact of energy production and consumption,
− the nuclear energy sector, in particular nuclear safety,
− opening up the energy market to a greater degree, including facilitating transit of gas
and electricity,
− the electricity and gas sectors, including consideration of the possibility of the inter-
connection of European supply networks,
− modernisation of energy infrastructures;
− formulation of framework conditions for cooperation between undertakings in this
sector,
− transfer of technology and know-how,
− cooperation on pricing and taxation policies in the energy sector,
− regional cooperation in the energy sector among the Baltic Sea States, particularly as
an important contribution to security of energy supply in the region.
3. Technical assistance shall be provided where appropriate.
Article 81
Nuclear Safety
1. The aim of cooperation is to provide for a safer use of nuclear energy.WT/REG144/1
Page 33
2. Cooperation in the nuclear field shall mainly cover the following topics:
− research and protective measures to increase safety particularly of the tailings at the
uranium ore processing plant at Sillamäe, a nd at the former Soviet nuclear submarine
training centre at Paldiski,
− staff training,
− upgrading of Estonia's laws and regulations on nuclear safety and strengthening of the
supervisory authorities and their resources,
− nuclear safety, preparation for nuclear emergencies and accident management,
− radiation protection, including environmental radiation monitoring,
− fuel cycle problems, safeguarding and physical protection of nuclear materials,
− radioactive waste management,
− decommissioning and dismantling of nuclear installations,
− decontamination,
− establishment of uniform safety standards to protect the health of workers, the general
public and the environment and ensuring that they are applied.
3. Cooperation will include the exchange of information and experience and R & D activities in
accordance with the provisions on science and technology.
4. The Parties agree on the necessity of making efforts to cooperate, within the framework of
their respective powers and competences, in order to combat nuclear smuggling. Cooperation in this
area should include exchange of information, technical support for analysing, identifying anddisposing of the material, and administrative and technical assistance for the installation of efficient
customs controls. Further cooperation in this field could be identified as need arises.
Article 82
Environment
1. The Parties shall develop and strengthen their cooperation on environment and human health.
2. Cooperation shall concern in particular:
− effective monitoring of pollution levels,
− combating local, regional and cross-border air and water pollution,
− efficient, sustainable and clean energy production and consumption, safety of
industrial plants (including nuclear facilities),
− classification and safe handling of chemicals,WT/REG144/1
Page 34
− water quality, particularly in cross-border waterways (protection of the Baltic Sea
against pollution from ships, artificial islands, platforms and other sources),
− reduction, recycling and safe disposal of waste and implementation of the Basle
Convention,
− sustainable use of non-renewable natural resources,
− the environmental impact of agriculture, soil erosion and pollution by agricultural
chemicals, water eutrophication,
− protection of forests and flora and fauna,
− conservation of biodiversity,
− protected areas,
− land-use planning, including construction and town planning,
− improvement of public transport, especially in cities,
− use of economic and fiscal instruments,
− management of the coastline and prevention of marine pollution,
− global climate change,
− rehabilitation of contaminated areas,
− protecting human health against environmental hazards.
3. Cooperation shall take place notably through:
− exchange of information and experts, especia lly in the field of the transfer of clean
technologies and the safe use of environmentally-friendly biotechnologies,
− institution-building and training programmes,
− transfer of technology and know-how,
− approximation of laws (Community standards),
− cooperation at regional level (including cooperation between the three Baltic States
and in the framework of the European Environment Agency) and at international
level,
− development of strategies, particularly with regard to global and climatic issues,
− education and information on environmental issues,
− environmental impact studies.WT/REG144/1
Page 35
Article 83
Transport
1. The Parties shall develop and step up their cooperation in the field of transport in order to
enable Estonia to:
− restructure and modernize transport,
− improve the movement of passengers and goods and the access to transport markets
by removing administrative, technical and other obstacles,
− facilitate Community transit through Estonia by road, rail, inland waterway and
combined transport,
− achieve operating standards comparable with those in the Community,
− improve traffic and transport safety, reduce harmful effects on the environment.
2. The cooperation shall cover the following in particular:
− economic, legal and technical training programmes and the preparation of the
legislative and institutional framework for policy development and implementation,
including privatisation of the transport sector,
− the provision of technical assistance and advice, and the exchange of information
(conferences and seminars),
− support for the development of infrastructure in Estonia.
3. Priority areas of cooperation will be:
− the construction and modernisation, on recognised trans-European corridors and
major routes of common interest, of road, rail, inland waterway, port and airport
infrastructures,
− the improvement of conditions, the reduction of waiting times and the easing of
transit at the border crossings on the Estonian stretch of the multimodal Crete corridorNo 1, on the basis of norms set by international agreements of the European Union to
secure interoperability,
− the management of railways, ports and ai rports, including cooperation between the
appropriate national authorities,
− land-use planning, including construction and urban planning,
− the upgrading of technical equipment to meet Community standards, particularly in
the fields of road-rail transport, containerisation and trans-shipment,
− contributing to the development of transport policies compatible with those in the
Community,WT/REG144/1
Page 36
− the promotion of short-sea shipping as an alternative to overland transport and as a
transport mode particularly suited to the Baltic Sea region,
− the promotion of joint research and development programmes,
− concrete projects in a tri- or multilateral (CBSS - Council of the Baltic Sea States)
context of regional cooperation, such as Via Baltica,
− mutual exchange of transport data.
Article 84
Telecommunications, Postal Services And Broadcasting
1. The Parties shall endeavour to expand and strengthen telecommunications cooperation. This
shall involve:
− exchange of information on telecommunications policies, postal services and
broadcasting policies,
− establishment of a stable and consistent regulatory framework for
telecommunications, postal services and broadcasting,
− exchange of technical and other information and the organisation of seminars,
workshops and conferences for experts of both sides,
− training and advisory operations,
− transfer of technology,
− joint execution of projects by competent bodies from both sides,
− promotion of European standards and certification systems,
− promotion of new communications facilities, services and installations, particularly
those with commercial applications.
2. These activities shall focus on the following priority areas:
− development and application of a sectoral market policy in telecommunications,
postal services and broadcasting in Estonia, of legal acts and procedures,
− modernisation of Estonia's telecommunications network and its integration into
European and world networks,
− cooperation within European standardisation structures,
− integration of trans-European systems,
− legal aspects of telecommunications,WT/REG144/1
Page 37
− management of telecommunications in the new European business environment:
organisational structures, strategy and planning, purchasing principles, tariffsstructure in voice telephony,
− land-use planning, construction and town planning,
− upgrading of the data network and development of data-based information services.
Article 85
Information Infrastructure
The Parties shall endeavour to expand and strengthen cooperation, with a view to setting up a
global information infrastructure. This shall involve:
− exchange of information on policies and programmes aimed at setting up the
information infrastructure and the corresponding services,
− close cooperation between institutions managing current information networks
(academic and/or government agencies),
− exchange of information on technologies, market needs and other information,
organisation of seminars, workshops and conferences for experts and industrialists
from both sides,
− training and advisory operations,
− joint execution of projects,
− promotion and agreement of standards, certification and testing,
− promotion of an appropriate regulatory framework,
− action to promote the growth of information services and infrastructure.
Article 86
Banking, Insurance And Other Financial Services
1. The Parties shall cooperate with the aim of establishing and developing a suitable framework
for the encouragement of a banking, insurance and financial services sector in Estonia.
2. The cooperation shall focus on:
− the improvement of efficient accounting and audit systems in Estonia based on
international rules and European Community standards,
− the strengthening and restructuring of the banking and financial systems,
− the improvement and harmonisation of supervision and regulation system of banking
and financial services,WT/REG144/1
Page 38
− the preparation of glossaries of terminology,
− the exchange of information in particular in respect of laws in force or being drafted,
− the preparation and translation of Community and Estonian legislation.
3. To this end, the cooperation shall include the provision of technical assistance and training.
Article 87
Audit And Financial Control Cooperation
1. The Parties shall cooperate with the aim to developing efficient financial control and audit
systems in the Estonian administration following standard Community methods and proceedings.
2. Cooperation shall focus on:
− the exchange of relevant information on audit systems,
− the uniformisation of audit documentation,
− training and advisory operations.
3. To this end, technical assistance shall be provided by the Community as appropriate.
Article 88
Monetary Policy
At the request of the Estonian authorities, the Community shall provide technical assistance
designed to support Estonia's efforts towards the gradual alignment of its policies on those of the
European Monetary System. This will include informal exchange of information concerning the
principles, the policies and the functioning of the European Monetary System.
Article 89
Money Laundering
1. The Parties agree on the necessity of making strenuous efforts and cooperating in order to
prevent the use of their financial systems for the laundering of proceeds from criminal activities in
general and drug offences in particular.
2. Cooperation in this area shall include administrative and technical assistance with the purpose
of establishing suitable standards to combat money laundering, equivalent to those adopted by theCommunity and other international bodies in this field, in particular the Financial Action Task Force
(FATF).
Article 90
Regional Development
1. The Parties shall strengthen cooperation between them on regional development and land-use
planning.WT/REG144/1
Page 39
2. To this end, any of the following measures may be taken:
− exchange of information by national, regional or local authorities on regional and
land-use planning policy, and, where appropriate, the provision of assistance to
Estonia for the formulation of such policy,
− joint action by regional and local authorities in the field of economic development,
− study of a joint approach towards the development of inter-regional cooperation with
Baltic Sea regions in the Community,
− exchange of visits to explore cooperation and assistance opportunities,
− exchange of civil servants and experts,
− provision of technical assistance with special emphasis on the development of
disadvantaged regions,
− establishment of programmes for the exchange of information and experience, by
methods including seminars.
Article 91
Social Cooperation
1. With regard to health and safety at work and public health, the Parties shall develop
cooperation between them with the aim of improving th e level of protection of the health and safety of
workers, taking as a reference the level of protection existing in the Community. Cooperation shall
comprise the following in particular:
− the provision of technical assistance,
− the exchange of experts,
− cooperation between companies,
− information and training operations,
− cooperation on public health.
2. With regard to employment, cooperation between the Parties shall focus in particular on:
− organisation of the labour market,
− modernisation of job-finding and careers advice services,
− planning and implementation of regional restructuring programmes,
− encouragement of local employment development.
Cooperation in these fields shall be realised through actions such as the performance of
studies, provision of the services of experts and information and training.WT/REG144/1
Page 40
3. With regard to social security, cooperation between the Parties shall seek to adapt the
Estonian social security system to the new economic and social situation, primarily by providing the
services of experts and information and training.
Article 92
Tourism
The Parties shall increase and develop cooperation between them in the field of tourism,
which will be aimed in particular at:
− facilitating the tourist trade,
− strengthening the flow of information throug h international networks, databases, etc.,
− transferring know-how through training, exchanges, seminars,
− enhancing regional cooperation projects,
− studying the opportunities for joint operations  (cross-border projects, town twinning,
etc.),
− introducing computerised booking and information systems (preferably common to
all three Baltic States) and consumer protection standards for tourists.
Article 93
Information And Communication
1. With regard to information and communication, the Community and Estonia shall take
appropriate steps to stimulate effective mutual exchange of information. Priority shall be given to
programmes aimed at providing the general public with basic information about the European Union
and specific circles in Estonia with more specialised information, including, where possible, access to
Community databases.
2. The Parties shall coordinate and, where appropriate, harmonise their policies regarding the
regulation of cross-border broadcasts, technical standards and the promotion of European audiovisual
technology.
3. Cooperation may include providing for exchange programmes, scholarships, training facilities
for journalists and experts in the sectors of the media as appropriate.
Article 94
Consumer Protection
1. The Parties shall cooperate with the aim of achieving full compatibility between the systems
of consumer protection in Estonia and the Community. Effective consumer protection is needed to
ensure that the market economy functions properly.
2. To this end, and in view of their common interests, the Parties shall encourage and ensure:WT/REG144/1
Page 41
− a policy of active consumer protection, in accordance with Community law and any
relevant UN guidelines on consumer protection,
− the approximation of legislation and the alignment of consumer protection in Estonia
with that of the Community,
− effective legal protection for consumers in order to improve the quality of consumer
goods and maintain appropriate safety standards.
3. Cooperation shall include:
− the exchange of information on dangerous products,
− the training of consumer protection specialists for the government and NGOs,
− help with the development of independent organisations intended to increase
consumer awareness, particularly by providing information,
− the establishment of information and advisory centres for the settlement of disputes
and the provision of legal and other advice to consumers; provision will be made for
cooperation between Estonia's centres and those in the Community,
− access to Community data banks,
− the development of exchanges between consumer representatives.
4. Technical assistance shall be provided by the Community as appropriate.
Article 95
Customs
1. The Parties commit themselves to developing customs cooperation in order to guarantee
compliance with all the provisions to be adopted in connection with trade and achieve the
approximation of Estonia's customs system to that of the Community, thus helping to ease the steps
towards liberalisation planned under this Agreement.
2. Cooperation shall include the following in particular:
− the exchange of information including on the methods of investigation,
− the development of cross-border infrastructure,
− the introduction of the single administrative document and the interconnection
between the transit systems of the Community and Estonia,
− the simplification of inspections and formalities in respect of the carriage of goods,
− the organisation of seminars and placements,
− support in the introduction of modern customs information system,WT/REG144/1
Page 42
− the approximation of the Estonian Nomenclature of Goods to be Combined
Nomenclature of the Community,
− the approximation of the structure of Estonia's customs tariff system to that of the
Community.
Technical assistance shall be provided where appropriate.
3. Without prejudice to further cooperation foreseen in this Agreement, and in particular Article
99 and Title VII, the mutual assistance between administrative authorities in customs matters in the
Parties shall take place in accordance with the provisions of Protocol 5.
Article 96
Statistical Cooperation
1. Cooperation in this area shall have as its aim the development of an efficient statistical system
to provide, in a rapid and timely fashion, the reliable statistics needed to support and monitor the
process of economic reform and contribute to the development of private enterprise in Estonia.
2. The Parties shall cooperate in particular to:
− strengthen Estonia's statistical system,
− bring about harmonisation with international (and particularly Community) methods,
standards and classifications,
− provide the data needed to support and monitor economic reform,
− provide the private sector, the press and any other social and economic operators with
appropriate macroeconomic and microeconomic data,
− guarantee the confidentiality of data,
− exchange statistical information,
3. Technical assistance shall be provided by the Community as appropriate.
Article 97
Economics
1. The Community and Estonia shall facilitate the process of economic reforms and integration
by cooperating to improve understanding of the fundamentals of their respective economies and theformulation and implementation of economic policy in market economies.
2. To these ends, the Community and Estonia shall:
− exchange information on macroeconomic performance and prospects and on
strategies for development,WT/REG144/1
Page 43
− analyse jointly economic issues of mutual interest, including the framing of economic
policy and the instruments for implementing it,
− through the programme of Action for Cooperation in Economics (ACE) in particular,
encourage extensive cooperation between economists and managers in theCommunity and Estonia in order to expedite the transfer of know-how for the drafting
of economic policies, and provide for wide dissemination of the results of policy-relevant research.
Article 98
Public Administration
The Parties shall promote cooperation between their public administration authorities,
including the setting up of exchange programmes, in order to improve mutual knowledge of the
structure and functioning of their respective systems.
Article 99
Drugs
1. Within the scope of their respective powers and competences, the Parties shall cooperate in
increasing the effectiveness and efficiency of policies and measures to counter the illicit production,
supply and traffic of narcotic drugs and psychotropic substances, including the prevention ofdiversion of precursor chemicals, as well as in promoting drug demand prevention and reduction.
2. The Parties shall agree on the necessary methods of cooperation to attain these objectives,
including the modalities of the implementation of common actions.
3. The cooperation in this area shall be based on mutual consultation and close cooperation
between the Parties over the objectives and measures in the fields targeted in paragraph 1 and shall,inter alia, include where available technical assistance from the Community.
Cooperation aimed at preventing the illicit traffic of narcotic drugs and psychotropic
substances will comprise technical and administrative assistance including:
− drafting and implementation of national legislation,
− creation or strengthening of institutions and information centres and of social health
centres,
− increasing the efficiency of the institutions engaged in combating illicit drug
trafficking,
− training of personnel and research,
− prevention of diversion of precursors and other essential chemicals used for the
purpose of illicit manufacture of narcotic drugs or psychotropic substances, by
establishing suitable standards equivalent to those adopted by the Community and
relevant international bodies, in particular the Chemical Action Task Force (CATF).
The Parties may agree to include other areas.WT/REG144/1
Page 44
TITLE VII
Cooperation In The Prevention Of Illegal Activities
Article 100
1. The Parties shall cooperate, within the scope of their powers and competences, with the aim
of preventing the following illegal activities in particular:
− illegal immigration and the illegal presence of their nationals on the other's territory,
while taking account of the principles and the practice of readmission,
− corruption,
− illegal transactions involving industrial waste and counterfeit products,
− illegal trafficking in drugs and psychotropic substances,
− organised crime,
− trafficking of human beings and crime related to activity of illegal immigration
networks,
− theft of and illegal trade in radioactive and nuclear material,
− illegal transfer of motor vehicles.
2. Cooperation in the matters referred to in paragraph 1 shall be based on mutual consultations
and close coordination between the Parties and should include technical and administrative assistancefor:
− the drafting of national legislation,
− the establishment of information centres and databases,
− enhancing the efficiency of the institutions charged to prevent illegal activities,
− staff training and the development of investigative facilities,
− the formulation of mutually acceptable measures to prevent illegal activities.
The Parties may agree to include other areas.WT/REG144/1
Page 45
TITLE VIII
Cultural Cooperation
Article 101
1. The Parties undertake to promote, encourage and facilitate cultural cooperation. Where
appropriate, the Community's cultural cooperation activities or those of one or more Member State
may be extended to Estonia and further activities of interest to both sides developed.
This cooperation shall cover in particular:
− literary translations,
− exchange of non-commercial works of art and artists,
− conservation and restoration of monuments and sites (architectural and cultural
heritage),
− training, particularly in art management,
− cultural events (e.g. song festivals),
− publicising significant cultural events.
2. The Parties may cooperate in the promotion of the audiovisual industry in Europe. In
particular, the audiovisual sector in Estonia could apply to take part in activities set up by the
Community in the framework of the MEDIA progra mme, in accordance with the procedures laid
down by the bodies responsible for the various activities and the Council Decision of 21 December
1990 setting up that programme.
The Parties shall coordinate and, where appropriate, harmonise their policies on the regulation
of cross-border broadcasting, paying particular attention to matters relating to the acquisition of
intellectual property rights for programmes broadcast by satellite or cable, technical standards in the
audiovisual field and the promotion of European audiovisual technology.
Cooperation could include, inter alia, the exchange of programmes, bursaries and facilities for
the training of journalists and other media professionals.
TITLE IX
Financial Cooperation
Article 102
In order to achieve the objectives of this Agreement and in accordance with Articles 103, 104,
105 and 106, without prejudice to Article 105, Estonia shall benefit from temporary financial
assistance from the Community in the form of gr ants and loans, including loans from the European
Investment Bank (EIB) according to the provisions of Article 18 of the Statute of the Bank to
accelerate the economic transformation of Estonia.WT/REG144/1
Page 46
Article 103
This financial assistance shall be covered:
− either within the framework of an indicative multiannual programme through PHARE
foreseen in Council Regulation (EEC) No 3906/89, as amended, or within a new
multiannual financial framework established by the Community following
consultations with Estonia and taking into account the considerations set out in
Articles 104 and 105,
− by loan(s) provided by the European Invest ment Bank within a ceiling and during a
period of availability to be established, following consultations with Estonia inapplication of the relevant provisions of the Treaty on European Union.
Article 104
The objectives and the areas of the Community's financial assistance shall be laid down in an
indicative programme to be agreed between the two Parties. The Parties shall inform the Association
Council.
Article 105
1. The Community shall, in case of special need, taking into account the availability of all
financial resources, on the request of Estonia and in coordination with international financialinstitutions, in the context of the G24, examine the possibility of granting temporary financial
assistance:
− to support measures with the aim of maintaining the convertibility of the Estonian
currency,
− to support medium-term stabilisation and structural adjustment efforts, including
balance of payments assistance.
2. This financial assistance is subject to Estonia's presentation of IMF supported programmes in
the context of the G24, as appropriate, for convertibi lity and/or for restructuring its economy, to the
Community's acceptance thereof, to Estonia's continued adherence to these programmes and, as an
ultimate objective, to rapid transition to reliance on finance from private sources.
3. The Association Council will be informed of  the conditions under which this assistance will
be provided and of the respect of the obligations undertaken by Estonia concerning such assistance.
Article 106
The Community financial assistance shall be evaluated in the light of the needs which arise
and of Estonia's development level, taking into account established priorities and the absorption
capacity of Estonia's economy, the ability to repay loans and the further development of the market
economy system and restructuring in Estonia.
Article 107
In order to permit optimum use of the resources available, the Parties shall ensure that
Community contributions are made in close coordination with those from other sources such as theWT/REG144/1
Page 47
Member States, other countries, including the G24, and international financial institutions, such as the
International Monetary Fund, the International Bank for Reconstruction and Development and the
European Bank for Reconstruction and Development.
Article 108
Estonia shall participate in framework programmes, specific programmes, projects or other
actions of the Community in the fields laid dow n in Annex X. Without prejudice to the existing
participation of Estonia in the activities referred to in Annex X, the Association Council shall decide
the terms and conditions for the participation of Estonia in these activities. The financial contribution
of Estonia to the activities referred to in Annex X shall be based on the principle that Estonia shall
meet the costs resulting from its participation itself. If necessary, the Community may decide, on acase-by-case basis, and pursuant to the rules applicable to the general budget of the European
Communities, to pay a supplement to Estonia's contribution.
TITLE X
Institutional, General And Final Provisions
Article 109
An Association Council is hereby established which shall supervise the implementation of
this Agreement. It shall meet at ministerial level once a year and when circumstances require. It shall
examine any major issues arising within the framework of the Agreement and any other bilateral or
international issues of mutual interest.
Article 110
1. The Association Council shall consist of the members of the Council of the European Union
and members of the Commission of the European Communities, on the one hand, and of members
appointed by the Government of Estonia, on the other.
2. Members of the Association Council may arrange to be represented, in accordance with the
conditions to be laid down in its rules of procedure.
3. The Association Council shall establish its rules of procedures at its first meeting.
4. The Association Council shall be presided in  turn by a member of the Council of the
European Union and a member of the Government of Estonia, in accordance with the provisions to be
laid down in its rules of procedure.
5. Where appropriate, the EIB will take part, as an observer, in the work of the Association
Council.
Article 111
The Association Council shall, for the purpose of attaining the objectives of the Agreement,
have the power to take decisions in the cases provided for therein. The decisions taken shall bebinding on the Parties which shall take the measures necessary to implement the decisions taken. The
Association Council may also make appropriate recommendations.
It shall draw up its decisions and recommenda tions by agreement between the two Parties.WT/REG144/1
Page 48
Article 112
1. Each of the two Parties may refer to the Association Council any dispute relating to the
application or interpretation of this Agreement.
2. The Association Council may settle the dispute by means of a decision.
3. Each Party shall be bound to take the measures involved in carrying out the decision referred
to in paragraph 2.
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2 of this
Article, either Party may notify the other of the appointment of an arbitrator; the other Party must the
appoint a second arbitrator within two months. For the application of this procedure, the Community
and the Member States shall be deemed to be one Party to the dispute.
The Association Council shall appoint a third arbitrator.
The arbitrators' decisions shall be taken by majority vote.Each Party to the dispute must take the step s required to implement the decision of the
arbitrators.
Article 113
1. The Association Council shall be assisted in th e performance of its duties by an Association
Committee composed of representatives of the members of the Council of the European Union and of
members of the Commission of the European Communities on the one hand of representatives of the
Government of Estonia on the other, normally at senior civil servant level.
In its rules procedure the Association Council shall determine the duties of the Association
Committee, which shall include the preparation of meetings of the Association Council and how the
Committee shall function.
2. The Association Council may delegate to the Association Committee any of its powers. In this
event the Association Committee shall take its decisions in accordance with the conditions laid down
in Article 111.
Article 114
The Association Council may decide to set up any other special committee or body that can
assist it in carrying out its duties.
In its rules of procedure, the Association C ouncil shall determine the composition and duties
of such committees or bodies and how they shall function.
Article 115
A Parliamentary Committee is hereby established. It shall be a forum for members of the
Parliament of Estonia and the European Parliament to meet and exchange views. It shall meet atintervals which it shall itself determine.WT/REG144/1
Page 49
Article 116
1. The Parliamentary Committee shall consist of members of the European Parliament, on the
one hand, and of members of the Parliament of Estonia, on the other.
2. The Parliamentary Committee shall establish its rules of procedure.
3. The Parliamentary Committee shall be presided in turn by the European Parliament and the
Parliament of Estonia, in accordance with the prov isions to be laid down in its rules of procedure.
Article 117
The Parliamentary Committee may request relevant information regarding the implementation
of this Agreement from the Association Council, which shall then supply the Committee with the
requested information.
The Parliamentary Committee shall be informed of the decisions of the Association Council.The Parliamentary Committee may make reco mmendations to the Association Council.
Article 118
Within the scope of this Agreement, each Party undertakes to ensure that natural and legal
persons of the other Party have access free of discrimination in relation to its own nationals to thecompetent courts and administrative organs of the Parties to defend their individual rights and their
property rights, including those concerning intellectual, industrial and commercial property.
Article 119
Nothing in this Agreement shall prevent a Party from taking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to its
essential security interests;
(b) which relate to the production of, or trade in, arms, ammunition or war materials or to
research, development or production indispensable for defence purposes, provided
that such measures do not impair the conditions of competition in respect of productsnot intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
disturbances affecting the maintenance of law and order, in time of war or serious
international tension constituting threat of war or in order to carry out obligations it
has accepted for the purpose of maintaining peace and international security;
(d) which it considers necessary to respect its  international obligations and commitments
on the control of dual-use industrial goods and technologies.WT/REG144/1
Page 50
Article 120
1. In the fields covered by this Agreement and without prejudice to any special provisions
contained therein:
− the arrangements applied by Estonia in re spect of the Community shall not give rise
to any discrimination between the Member States, their nationals, or their companiesor branches,
− the arrangements applied by the Community in respect of Estonia shall not give rise
to any discrimination between Estonian nationals or its companies or branches.
2. The provisions of paragraph 1 are without prejudice to the right of the Parties to apply the
relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regardstheir place of residence.
Article 121
Products originating in Estonia shall not enjoy more favourable treatment when imported into
the Community than that applied by Member States among themselves.
The treatment granted to Estonia under Title IV and Chapter I of Title V shall not be more
favourable than that accorded by Member States among themselves.
Article 122
1. The Parties shall take any general or specific measures required to fulfil their obligations
under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil an obligation under this
Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, itshall supply the Association Council with all releva nt information required for a through examination
of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of measures, priority must be given to those which least disturb the
functioning of this Agreement. These measures shall be notified immediately to the Association
Council and shall be the subject of consultations within the Association Council if the other Party so
requests.
Article 123
The present Agreement shall not, until equivalent rights for individuals and economic
operators have been achieved under the present Agreement, affect rights assured to them through
agreements binding one or more Member States, on the one hand, and Estonia, on the other, except
for sectors of Community competence and without prejudice to Member States' obligations resulting
from this Agreement in sectors of their competence.
Article 124
For the purposes of this Agreement, the term 'Parties` shall mean the Community, or its
Member States, or the Community and its Member States, in accordance with their respective powers,
of the one part, and Estonia, of the other part.WT/REG144/1
Page 51
Article 125
Protocols 1 to 5 and Annexes I to X shall form an integral part of this Agreement.
Article 126
This Agreement is concluded for an unlimited period.Either Party may denounce this Agreement by notifying the other Party. This Agreement will
cease to apply six months after the date of such notification.
Article 127
The General Secretariat of the Council of the European Union shall be the depository of the
Agreement.
Article 128
This Agreement shall apply, on the one hand, to the territories in which the Treaties
establishing the European Community, the European Atomic Energy Community and the EuropeanCoal and Steel Community are applied and under the conditions laid down in those Treaties and, on
the other hand, to the territory of the Republic of Estonia.
Article 129
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish, Swedish and Estonian languages, each of these texts
being equally authentic.
Article 130
This Agreement will be approved by the Parties in accordance with their own procedures.This Agreement shall enter into force on the fi rst day of the second month following the date
on which the Parties notify each other that the procedures referred to in the first paragraph have been
completed.
Upon its entry into force, this Agreement sh all replace the Agreement between the European
Economic Community and the Republic of Estonia on trade and economic and commercial
cooperation signed in Brussels on 11 May 1992.
The present Agreement is partly based on, further develops and incorporates the essential
provisions of the Agreement between the European Community, the European Atomic Energy
Community and the European Coal and Steel Community and the Republic of Estonia on Free Trade
and Trade-Related Matters signed on 18 July 1994. Upon its entry into force, this Agreement shall
replace the Agreement on Free Trade and Trade-Related Matters.
The decisions of the Joint Committee established by the Agreement on trade and economic
and commercial cooperation and which performs also the duties assigned by the Agreement on Free
Trade and Trade-Related Matters shall continue to apply until repealed by decisions of the
Association Council.WT/REG144/1
Page 52
The Association Council shall adopt at its first meeting all the modifications to this
Agreement - in particular to the Protocols and Annexes - necessary to align it with changes to the
Agreement on Free Trade and Trade-Related Matters decided by the Joint Committee between the
signature and the entry into force of this Agreement.
Done at Luxembourg on the twelfth day of June  in the year one thousand nine hundred and
ninety-five.
__________