RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG108/3
9 February 2001
(01-0632)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN ESTONIA AND UKRAINE
Communication by Estonia
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
Free Trade Agreement between the Republic of Estonia and Ukraine:
Date of Signature: 24 May 1995 in Ta llinn (the Republic of Estonia)
Ratification: 25 October 1995 (the Republic of Estonia)
6  February 1996 (Ukraine)
Entry into force: 14 March 1996
2. Type of the Agreement
The Free Trade Agreement between the Republic of Estonia and Ukraine (hereinafter "FTA")
creates a free-trade area.  No transition period was established, and all trade barriers were eliminated
from the date of entry into force of the FTA .
Plan and schedule:  The objective of the FTA is to establish and develop free trade area in
conformity with the definition set in Art. XXIV:8(b) of GATT 1994.
3. Scope
The provisions of the FTA are applied to products origination in the Parties and falling within
Chapters 1-97 of the Harmonized Commodity Desc ription and Coding System (HS).  The FTA
envisages the elimination of duties and other barriers to trade in respect of all the trade between the
Parties in accordance with the requirement of Article XXIV of the GATT 1994.  The FTA also
contains provisions on State aid, State monopolies, competition, intellectual property rights,
administrative co-operation.
4. Trade Data
See Annex.
II. TRADE PROVISIONS
1. Import Restrictions
1.1. Duties and charges
As provided for by Article 5 of the FTA, the Parties shall introduce no new customs duties on
imports or charges having equivalent effect as well as no duties of a fiscal nature.WT/REG108/3
Page 2
As provided for by Article 5 of the FTA, the existing customs duties on imports and all
charges having equivalent effect were abolished between the Parties on the date of entry into force of
the FTA.
1.2. Quantitative restrictions
Pursuant to Article 7 of the FTA, the Parties shall introduce no new quantitative restrictions
on imports and measures having equivalent effect.
Pursuant to Article 7 of the FTA, all quantitative restrictions on imports and measures having
equivalent effect were abolished on the date of entry into force of the FTA.
2. Export Restrictions
2.1. Duties and charges
Pursuant to Article 6 of the FTA, the Parties shall introduce no new customs duties on exports
and charges having equivalent effect.
Pursuant to Article 6 of the FTA, all customs duties on exports and charges having equivalent
effect were abolished on the date of entry into force of the FTA.
2.2. Quantitative restrictions
Pursuant to Article 7 of the FTA, the Parties shall introduce no new quantitative restrictions
on exports and measures having equivalent effect.
Pursuant to Article 7 of the FTA, all quantitative restrictions on exports and measures having
equivalent effect were abolished on the date of entry into force of the FTA.
3. Rules of Origin
Rules of origin of goods and co-operation between customs administrations  are specified in
Article 4 and Protocol A of the FTA, concerning th e definition of originating products and methods of
administrative co-operation of the FTA, which is integral part of it.
In this Protocol, the principles and rules for a definition of the concept of "originating
products", territorial requirements, proofs of origin, arrangements for administrative co-operation andother provisions are laid down.   There is no relation between those rules of origin and pan-European
system of cumulation.  Ukraine does not belong to the system of pan-European cumulation.
With regard to the territorial requirements, the principle of territoriality is established and the
terms related to the re-importation of goods, direct transport and exhibitions are set out in theProtocol A.
In the area of proof of origin, the movement certificate EUR.1 is used in trade between the
Republic of Estonia and Ukraine.  Pursuant to the FTA, the form EUR.2 is accepted as well for the
consignment with limited value.  The Protocol stipulates the provisions for issuance the proofs of
origin.
The arrangements for administrative co-operation cover inter alia communication of
impressions of stamps used for certifying the certi ficates EUR.1 and addresses of customs authoritiesWT/REG108/3
Page 3
responsible for verification, verification procedures of movement certificates EUR.1 and forms
EUR.2, dispute settlement, penalties and free zones.
4. Standards
Technical Barriers to Trade  and  Sanitary and Phytosanitary Measures
Pursuant to Article 2, the Joint Committee of the FTA shall be responsible of observing and
implementing standards.
5. Safeguards
Parties to the FTA can apply safeguard and emergency measures on the conditions and in
conformity with the procedures specified in the FTA.  General safeguard measures are contained in
Article 16.  Other safeguard measures cover struct ural adjustment (Article 17), re-export and serious
shortage (Article 18), and balance of payments difficulties (Article 19).  Article 20 provides for a
procedure for the application of safeguard measures, which foresees consultations within the JointCommittee with a view of finding a mutually acceptable solution.  If the Joint Committee fails to
reach such a solution or if a period of 30 days has elapsed from the date of notification on
consideration to resorting on safeguard measures, the Party concerned may take appropriate measures.
The safeguard measures taken shall be the object of regular consultations with a view to their
relaxation, substitution or abolition as soon as possible.
6. Anti-Dumping and Countervailing Duties
As set by Article 15 of the FTA, the application of anti-dumping measures shall be in
accordance with Article VI of the General Agreement on Tariffs and Trade 1994, as well as with theprovisions laid down in Article 20 of the FTA (Procedure for application of safeguard measures).
7. Subsidies and State-Aid
As provided for in Article 14 of the FTA, the Parties consider any aid granted by a Party in
any form whatsoever which distorts or threatens to distort competition by favoring certain undertaking
or the production of certain goods to be incompatible with the proper functioning of the FTA.
If a Party considers a given practice constitutes such a case of incompatibility, it may take
appropriate measures under the conditions and in accordance with the respective procedures laid
down in Article 20 of the FTA.
8. Sector-Specific Provisions
The FTA does not contain any specific provisions applicable to trade between the Parties in
individual sectors.
9. Other
State Monopolies
As set out in Article 9 of the FTA, the Parties shall ensure that any State monopoly of
commercial character be adjusted so that no di scrimination regarding the conditions under which
goods are procured and marketed will exist between nationals of Estonia and Ukraine.  The goods
shall be procured and marketed in acco rdance with commercial considerations.WT/REG108/3
Page 4
Rules of Competition Concerning Undertakings
As provided for in Article 13 of the FTA, the following are incompatible with the proper
functioning of the FTA:
- all agreements between undertakings, decisions taken by associations of undertakings
and concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
- abuse by one or more undertakings of a dominant position in the territories of the
Parties as a whole or in a substantial part thereof.
If a Party to the FTA considers that a given practice is incompatible with the provisions of the
FTA, it may take appropriate measures under the conditions and in accordance with the procedure set
out in the FTA.
Payments
As provided for in Article 11 of the FTA, payments relating to trade and the transfer to such
payments to the territory of the Party where the creditor resides shall be free from any restrictions.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
The FTA (Article 8) provides for general exceptions.  The Parties may introduce 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 the environment;  the protection of national treasures possessing artistic, historic or
archaeological values;  the protection of intellectual property;  and laws and regulations relating to
precious stones and metals.  Such prohibitions or restrictions shall not, however, constitute means of
arbitrary discrimination or a disguised restriction on trade between the Parties.
The FTA (Article 21) provides for security exceptions.  The Parties to the Agreement may
take actions to prevent the disclosure of information contrary to its essential security interests;  for the
protection of its essential security interest or for the implementation of international obligations or
national policies:
- relating to the traffic in arms, ammunition and implements of war, provided that such
measures do not impair the conditions of competition in respect to products not
intended for specifically military purposes, and to such traffic in other goods,
materials and services as is carried on directly or indirectly for the purpose of
supplying a  military establishment;  or
- relating to the non-proliferation of biological and chemical weapons, nuclear weapons
and other nuclear explosive devices;  or
- taken in time of war or other serious international tension.
2. Accession/Withdrawal
The FTA does not contain any specific provisions relating to accession.WT/REG108/3
Page 5
As provided for in Article 28, either Party may denounce the FTA by means of a written
notification to the other Party.  In this case the FTA shall cease to be in force six months after the date
on which the notification was received by the other Party.
3. Dispute Settlement Procedures
As provided for in Article 23 (Fulfillment of obligations) of the FTA, if one of the Parties
considers that the other Party has failed to fulfil an obligation under the FTA, the Party concerned
may take appropriate measures after consultations in the Joint Committee under the conditions and in
accordance with the procedure laid down in Article 20.
4. Relation with Other Trade Agreements
As set out in Article 25 of the FTA, the FTA shall not prevent the maintenance or
establishment of customs unions, free-trade areas or arrangements for frontier trade to the extent that
these do not negatively affect the trade regime, and, in particular, the provisions concerning rules oforigin provided for by the FTA.
5. Institutional Framework
As provided for in Article 2 of the FTA, the implementation of the FTA shall be supervised
and administered by a Joint Committee consisting of representatives of the Parties.  The Joint
Committee may take decisions and recommendations concerning the application of the FTA.  The
Joint Committee can set up working groups that can a ssist it in carrying out its duties.  The meetings
of the Joint Committee shall be held at least once a year in order to review the general functioning of
the FTA.  The Joint Committee shall, in addition, m eet whenever special circumstances so require at
the request of either Party.
IV. OTHER
As set out in Article 22 (Evolutionary Clause), the Parties shall recognize the growing
importance of such areas as services, investments and the implementation of joint projects.  Where aParty considers that it would be useful, in the interests of the economies of the Parties, to develop and
deepen the relations established by the FTA by exte nding them to fields not covered thereby, it shall
submit a reasoned request to the other Party.  The Parties may instruct the Joint Committee to
examine this request and, where appropriate, to make recommendations to them, particularly with a
view of opening up negotiations.
Pursuant to Article 34 of Protocol A of the FTA, the Parties formed a Customs Cooperation
Committee, which acts as a Sub-Committee under the framework of Joint Committee.WT/REG108/3
Page 6
ANNEX
Estonia - Exports into Ukraine, 1997-20001
(Thousand US$)
HS Chapter 1997 1998 1999 2000
01           10.34           57.66 - -
02      1,274.77      8,195.26      2,691.10 0.29
03    13,778.82  16,827.81    10,396.05 5,952.73
04      6,316.63      3,434.68      2,235.53 50.88
05           46.72 -  - -
06         343.62  -  - -
07             1.57             3.27             6.00 1.36
08         106.18             2.29             0.53 -
09         681.60         414.22         252.77 211.72
10             5.53           46.46             0.76 -
11         909.84      1,147.98      1,206.43 218.91
12           44.21             7.49             2.64 -
13         331.31         305.61         532.39 904.78
1 4 - - - -
15         258.11         260.49           61.18 22.17
16      9,570.40 19,176.13    12,679.41 3,098.19
17      1,177.78      2,011.26      1,004.70 400.04
18    18,520.31    15,978.78    10,160.26 7,796.45
19         417.31           82.31           19.93 19.65
20         151.23           96.24           23.97 0.79
21      1,625.83         209.12         733.18 90.20
22         674.07         406.38           31.17 54.40
23         137.53         225.28         196.90 38.46
24           83.26             1.89             1.46 0.48
25           11.20         480.39             0.16 1.09
26 -  -             0.85 1.76
27    13,252.84      9,453.48      6,457.11 5,266.99
28      2,622.40      3,738.77      1,754.99 2,309.02
29         526.96         684.34         550.15 1,924.74
30      1,734.62         502.96         336.64 180.32
3 1 --  --
32      5,268.46      4,271.89      1,521.02 1,286.18
33         662.76           41.74           10.48 2.47
34         198.40           42.88         122.73 26.03
35           90.59         222.02         141.10 166.85
36      1,160.24         792.12           67.87 7.32
37             0.04             0.26             0.16 -
38      2,721.29      2,285.41         679.52 525.58
39      2,926.08      4,204.28      1,385.75 1,246.61
40      6,722.04      3,337.01         915.22 607.80
4 1 -  ---
42           24.28           86.10             2.70 1.17
43           54.32             0.05 - 68.15
44         913.61         996.76         516.63 280.34
4 5 - - - -
46             0.09  -  - 0.08
                                                     
1 2000: January-November.WT/REG108/3
Page 7
HS Chapter 1997 1998 1999 2000
47         885.39         385.99         376.14 1,941.75
48    10,324.04    11,816.99      7,065.66 6,607.04
49           16.52           37.21         111.21 11.24
5 0 - - - -
51           10.87 - - -
52         446.50           67.71           11.89 83.32
53                 -  -  - -
54           14.62  - - 0.09
55           10.63  - - -
56           985.90         359.88 56.75 4.84
57             28.23             9.84            0.09 8.90
5 8 - - - -
59 22.07           12.56           17.52 32.01
6 0 - - - -
61         159.21           80.57           63.36 33.34
62         733.13         561.69           76.35 178.64
63      1,074.83      1,062.36         387.58 938.82
64           89.50             5.39           11.04 11.45
65             1.96             2.77             2.76 0.04
66             0.37             0.23             0.14 0.03
67 -  -             1.07 2.23
68         363.50         648.31           39.64 36.33
69         234.55         185.42           90.03 478.32
70         498.34      1,111.59         421.97 270.41
71         203.03         175.53           87.95 86.62
72      2,801.24    10,089.04      3,605.87 3,685.09
73      5,212.13      5,587.73      2,015.51 2,358.91
74             8.15           42.27        87.27 158.96
75  -         288.27         350.65 -
76         899.06      2,123.92      1,002.39 65.94
7 7  - - - -
78             0.47  -  - -
79             6.25           38.92  - 8.08
8 0  - - - -
81  - -             1.20 136.10
82         543.78           71.94           15.73 4.80
83         316.73           77.22         298.11 212.64
84      5,958.03      7,211.60      1,654.78 2,669.54
85      2,142.30      4,827.33      1,385.41 1,764.72
86           51.12      7,118.94      3,838.70 -
87    12,549.55      3,511.65      2,596.67 3,004.61
88 -           11.01           10.62 -
89           28.69         109.47           16.95 32.82
90      1,712.89      1,692.79         515.27 593.74
91             5.97             0.51             0.22 1.64
92             1.26  -  - 0.10
93           19.46           78.33           47.14 -
94      2,526.39      1,775.78         983.29 977.07
95           87.65           67.97           31.28 33.45
96         120.55           37.23             6.27 4.61
97             4.55             3.76 - -
Total 146,456.60 161,320.80 83,983.92 59,202.24WT/REG108/3
Page 8
Estonia - Imports from Ukraine, 1997-20002
(Thousand US$)
HS Chapter 1997 1998 1999 2000
0 1  -  ---
02         29.77  - - -
03         82.74        830.33       299.02 88.30
04       576.41        162.74         97.82 13.37
05 -          25.31  - -
0 6 --  --
07         92.00        171.96       103.08 224.67
08         70.56        112.11       104.89 179.37
09           6.95 - - -
10       414.84     1,262.48       656.98 181.46
11       594.60        628.72       476.88 426.47
12       867.08        739.88       564.88 292.77
13           1.93            0.23           6.01 1.11
1 4  - - - -
15       283.97          49.69         58.80 48.86
16         33.69            3.61         23.49 -
17    1,659.22        710.51       649.07 390.88
18         17.13          98.39       176.82 354.05
19         23.63          18.45         38.31 163.05
20       193.53        160.06         90.73 230.92
21         32.83 -           3.16 40.35
22       456.01        523.71        569.21 406.46
23    1,231.64        654.68        511.25 1,459.13
2 4 ----
25    1,127.86        898.64        564.30 493.77
26         49.91  -            0.08 -
27       145.96        334.12          67.96 232.47
28    1,789.31     1,408.96        794.60 985.23
29       240.64        208.05        111.73 180.49
30       144.83          98.18        107.17 54.70
31  -          14.54  - 1.66
32       267.88        462.52        289.10 234.11
33       595.09        617.43        641.78 627.24
34       105.18        116.63          87.90 43.71
35           3.16        287.77        122.97 398.22
36    7,708.28     2,607.57        338.91 332.28
37           0.10            0.38            1.16 -
38           9.11        140.49          85.41 153.82
39         70.89        125.37          75.45 160.58
40    1,317.08        887.45        486.85 250.34
41 -        136.37        274.61 280.72
42 - - - 1.72
43 - -            9.53 -
44 157.57        272.15        628.92 632.60
4 5 - - - -
4 6 - - - 3 . 6 8
4 7 ----
48    2,021.08        908.11     1,149.55 4,214.81
                                                     
2 2000: January-November.WT/REG108/3
Page 9
HS Chapter 1997 1998 1999 2000
49           0.53        259.02          12.64 -
5 0  - - - -
51 -          19.60          10.51 5.77
52 - -            6.16 -
53         24.16  -  - -
54         37.94  -          30.88 19.11
55 -  -            0.12 0.75
56    2,905.67            0.87          14.66 -
5 7 ----
58           3.06  -  - -
59         26.19 - - -
6 0 - - - -
61           0.71            0.14            5.37 5.31
62         32.27            7.16          37.54 44.28
63         53.23            8.83          78.54 3.15
64         13.54            9.54          52.74 41.10
65           6.31            5.66          22.12 27.22
66 -            0.09            1.77 -
67 -  -            0.74 -
68       157.31        127.16          71.37 53.68
69       219.28        335.11        241.87 334.88
70       396.36        330.45        242.20 186.22
71         76.57     2,753.12        116.46 5.40
72    6,364.08   13,912.99     7,805.17 16,720.00
73    5,245.13     4,611.26     2,355.15 2,368.45
74       107.24        359.07         388.90 63.30
7 5  ----
76       450.63          53.79        117.85 130.63
7 7  - - - -
7 8 - - - -
79         12.72 -  - 8.65
8 0  - - - -
81  -          46.33        987.11 -
82       100.63          77.92          56.50 44.22
83           5.46          40.04          17.28 21.13
84    3,027.94     2,249.49     1,583.81 1,362.93
85       428.74     1,056.58        507.02 1,451.52
86    2,753.58     7,895.06   14,590.69 1,079.95
87         96.36          49.46 - 102.01
88       413.24          81.35        221.45 2.87
89 - -                 - -
90       105.67        127.23        127.56 2,406.35
91           0.09 - - -
9 2 - - - -
9 3 ----
94         15.52            3.95            0.89 16.54
95           1.05 -          11.06 0.07
96           0.30            1.88            2.83 0.62
9 7 ----
Total 45,503.97 50,100.74 39,987.34 40,289.48
__________