WORLD TRADE WT/REG45/1
13November 1997
ORGANIZATION(97-4968)
Original: English Committee onRegional Trade Agreements
FREE TRADE AGREEMENT BETWEEN THE CZECH REPUBLIC
AND THE REPUBLIC OFLATVIA
Thefollowing textreproduces theFreeTrade Agreement.1
________________
PREAMBLE
TheCzech Republic andtheRepublic ofLatvia (hereinafter called "theParties"),
Having regard totheDeclaration ofPrime Ministers oftheCentral European FreeTrade
Agreement countries, doneon11September 1995 inBrno,
Recalling theirintention toparticipate actively intheprocess ofeconomic integration asan
important dimension ofthestability ontheEuropean continent andexpressing theirpreparedness to
co-operate inseeking ways andmeans tostrengthen thisprocess,
Reaffirming theirfirmcommitment totheprinciples ofamarket economy, which constitutes
thebasis fortheirrelations,
RecallingtheirfirmcommitmenttotheFinalActoftheConferenceonSecurityandCo-operation
inEurope, theParis Charter, and,inparticular, theprinciples contained inthefinaldocument ofthe
Bonn Conference onEconomic Co-operation inEurope,
Resolved tothisendtoeliminate progressively theobstacles tosubstantially alltheirmutual
trade, inaccordance withtheprovisions oftheGeneral Agreement onTariffs andTrade 1994,
Firmly convinced thatthisAgreement willfoster theintensification ofmutually beneficial trade
relations between them andcontribute totheprocess ofintegration inEurope,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theParties
from theirobligations under other international agreements andorganizations, especially theWorld
Trade Organization,
Hereby agreed asfollows:
1TheAnnexes andProtocols thereto have been submitted totheSecretariat forconsultation byinterested
Members (Office 3006).WT/REG45/1
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Article 1
Objectives
1. TheParties shallgradually establish afreetrade areaonsubstantially alltheirbilateral trade
inaccordance withtheprovisions ofthisAgreement andinconformity withArticle XXIV oftheGeneral
Agreement onTariffs andTrade 1994andwiththeUnderstanding ontheInterpretation ofArticle XXIV
oftheGeneral Agreement onTariffs andTrade 1994.
2. Theobjectives ofthisAgreement are:
(a) topromote through theexpansion ofmutual trade theharmonious development ofthe
economic relations between theParties andthustofoster theadvance ofeconomic
activity intheParties, theimprovement ofliving andemployment conditions, and
increased productivity andfinancial stability;
(b) toprovide fairconditions ofcompetition fortrade between theParties;
(c) tocontribute inthisway, bytheremoval ofbarriers totrade, totheharmonious
development andexpansion ofworld trade.
CHAPTER I
Industrial Products
Article 2
Scope
Theprovisions ofthisChapter shallapply toindustrial products originating intheParties.
Theterm"industrial products" means forthepurpose ofthisAgreement theproducts falling within
Chapters 25to97oftheHarmonized Commodity Description andCoding System withtheexception
oftheproducts listed inAnnex ItothisAgreement.
Article 3
Customs Duties onImports andCharges having Equivalent Effect
1. Nonewcustoms dutyonimports orcharge having equivalent effect shallbeintroduced intrade
between theParties.
2. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
customs duties onimports andallcharges having equivalent effect.
Article 4
Basic Duties
1. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbethemost-favoured-nation rateofdutyinforce on1July1996.WT/REG45/1
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2. If,afterentry intoforce ofthisAgreement, anytariff reduction isapplied onanergaomnes
basis, suchreduced duties shallreplace thebasic duties referred toinparagraph 1asfrom thatdate
when suchreductions areapplied.
3. Thereduced duties calculated inaccordance withparagraph 2shallbeapplied rounded tothe
firstdecimal place.
4. TheParties shallcommunicate toeachother theirrespective national basic ratesofduties in
accordance withtheprovisions ofparagraph 2.
Article 5
Fiscal Duties
Theprovisions ofArticle 3shallalsoapply tocustoms duties ofafiscal nature.
Article 6
Customs Duties onExports andCharges having Equivalent Effect
1. Nonewcustoms dutyonexports orcharge having equivalent effect shallbeintroduced intrade
between theParties.
2. Customs duties onexports shallbeabolished inaccordance withtheprovisions ofProtocol 1
tothisAgreement.
3. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
charges having equivalent effect tocustom duties onexports.
Article 7
Quantitative Restrictions onImports andMeasures having Equivalent Effect
1. Nonewquantitative restrictions onimports ormeasures having equivalent effect shall be
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having equivalent effect onimports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement, except
asprovided forinAnnex IItothisAgreement.
Article 8
Quantitative Restrictions onExports andMeasures having Equivalent Effect
1. Nonewquantitative restrictions onexports ormeasures having equivalent effect shall be
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having equivalent effect onexports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement, except
asprovided forinAnnex IIItothisAgreement.WT/REG45/1
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Article 9
Information Procedure onDraft Technical Regulations
1. TheParties shallnotify toeachother attheearliest practicable stage andinaccordance with
theprovisions assetoutinAnnex IVtothisAgreement onthedrafttechnical regulations anddraft
amendments thereto, which theyintend touse.
2. TheJointCommittee shalldecide onthedateforimplementing theprovisions inparagraph 1.
CHAPTER II
Agricultural Products
Article 10
Scope
Theprovisions ofthisChapter shallapply toagricultural products originating intheParties.
Theterm"agricultural products" means forthepurpose ofthisAgreement theproducts falling within
Chapters 1to24oftheHarmonized Commodity Description andCoding System including theproducts
listed inAnnex ItothisAgreement.
Article 11
Customs Duties onImports andCharges having Equivalent Effect
1. Nonewcustoms dutyonimports orcharges having equivalent effect shallbeintroduced in
trade between theParties.
2. Customs duties onimports shallbeapplied inaccordance withtheprovisions ofProtocol 2
tothisAgreement.
3. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
charges having equivalent effect tocustoms duties onimports.
Article 12
Basic Duties
1. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbethemost-favoured-nation rateofdutyinforce on1January 1996.
2. If,afterentry intoforce ofthisAgreement, anytariff reduction isapplied onanergaomnes
basis, suchreduced duties shallreplace thebasic duties referred toinparagraph 1asfrom thatdate
when suchreductions areapplied.
3. Thereduced duties calculated inaccordance withparagraph 2shallbeapplied rounded tothe
firstdecimal place.WT/REG45/1
Page5
4. TheParties shallcommunicate toeachother theirrespective national basic ratesofduties in
accordance withtheprovisions ofparagraph 2.
Article 13
Customs Duties onExports andCharges having Equivalent Effect
1. Nonewcustoms dutyonexports orcharges having equivalent effect shallbeintroduced in
trade between theParties.
2. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
customs duties onexports andallcharges having equivalent effect.
Article 14
Concessions andAgricultural Policies
1. Without prejudice totheconcessions granted under Protocol 2tothisAgreement, theprovisions
ofthisChapter shallnotrestrict inanywaythepursuance oftherespective agricultural policies of
theParties orthetaking ofanymeasures under suchpolicies, including theimplementation ofthe
respective provisions oftheAgreement onAgriculture within theframework oftheWorld Trade
Organization.
2. TheParties shallnotify toeachother changes intheirrespective agricultural policies pursued
ormeasures applied which mayaffect theconditions ofagricultural trade between them asprovided
forinthisAgreement. Prompt consultations shallbeheld, uponrequest ofanyParty, toexamine the
situation.
Article 15
Special Safeguards
Notwithstanding other provisions ofthisAgreement and,inparticular, Article 28,if,given
theparticular sensitivity oftheagricultural markets, imports ofproducts originating inaParty, which
aresubject toconcessions granted under thisAgreement, cause serious disturbance tothemarkets of
theother Party, theParty concerned shallenter intoconsultations immediately tofindanappropriate
solution. Pending suchsolution, theParty concerned maytakethemeasures itdeems necessary.
Article 16
Veterinary, Health andPhytosanitary Measures
1. MeasuresconcerningveterinaryandphytosanitarycontrolwillbeharmonizedwiththeEuropean
Union legislation andbetween theParties.
2. Theveterino-sanitary measures andthework oftheveterinary services willbeinaccordance
withtheOffice International desEpizoodies Codex andother international conventions inthisfield.
3. TheParties commit themselves nottointroduce discriminatory orotherunusual measures which
would limittheflowofinformation, animals, plants orproducts.WT/REG45/1
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CHAPTER III
General Provisions
Article 17
Rules ofOrigin andCooperation inCustoms Administration
1. Protocol 3tothisAgreement laysdown therulesoforigin andrelated methods ofadministrative
cooperation.
2. TheParties shalltakeappropriate measures, including regular reviews bytheJointCommittee
andarrangements foradministrative cooperation, toensure thattheprovisions ofProtocol 3tothis
Agreement andArticles 3to8,11to13,18and29ofthisAgreement areeffectively andharmoniously
applied, andtoreduce, asfaraspossible, theformalities imposed ontrade, andtoachieve mutually
satisfactory solutions toanydifficulties arising from theoperation ofthose provisions.
3. Themutual assistance between administrative authorities incustoms matters shalltakeplace
inaccordance withtheprovisions ofProtocol 4tothisAgreement.
Article 18
Internal Taxation
1. TheParties shallrefrain fromanymeasure orpractice ofaninternal fiscal nature establishing,
whether directly orindirectly, discrimination between theproducts originating intheParties.
2. Exporters maynotbenefit fromrepayment ofinternal taxation inexcess oftheamount ofdirect
orindirect taxation imposed onproducts exported totheterritory ofoneoftheParties.
Article 19
General Exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified onthegrounds ofpublic morality, public policy orpublic security; theprotection
ofhuman, animal orplantlifeorhealth; theprotection ofnational treasures possessing artistic, historic
orarchaeological value; theprotection ofintellectual property orrules relating togoldorsilver or
theconservation ofexhaustible natural resources ifsuchmeasures aremade effective inconjunction
withrestrictions ondomestic production orconsumption. Suchprohibitions orrestrictions shallnot,
however, constitute ameans ofarbitrary discrimination oradisguised restriction ontrade between
theParties.
Article 20
Security Exceptions
Nothing inthisAgreement shallprevent aParty fromtaking anyappropriate measure which
itconsiders necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;WT/REG45/1
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(b) fortheprotection ofitsessential security interests orfortheimplementation of
international obligations ornational policies;
(i) relating tothetraffic inarms, ammunition andimplements ofwar,provided
thatsuchmeasures donotimpair theconditions ofcompetition inrespect of
products notintended forspecifically military purposes, andtosuchtraffic
inother goods, materials andservices asiscarried ondirectly orindirectly
forthepurpose ofsupplying amilitary establishment; or
(ii) relating tothenon-proliferation ofbiological andchemical weapons, nuclear
weapons orother nuclear explosive devices; or
(iii) taken intimeofwarorother serious international tension.
Article 21
State Monopolies
1. TheParties shalladjust progressively anyState monopoly ofcommercial character soasto
ensure thatby1July1999nodiscrimination regarding theconditions under which goods areprocured
andmarketed exists between nationals oftheParties.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheParties,inlaworinfact,eitherdirectlyorindirectly,supervise,determineorappreciablyinfluence
imports orexports between theParties. These provisions shalllikewise apply tomonopolies delegated
byaParty toother bodies.
Article 22
Payments
1. Payments infreely convertible currencies relating totrade ingoods between theParties and
thetransfer ofsuchpayments totheterritory oftheParty tothisAgreement, where thecreditor resides,
shallbefreefrom anyrestrictions.
2. ThePartiesshallrefrainfromanyexchangeoradministrativerestrictionsonthegrant,repayment
oracceptance ofshortandmedium termcredits related totradeingoods inwhich aresident participates.
3. Notwithstanding theprovisions ofparagraph 2,anymeasures concerning current payments
connected withthemovement ofgoods shallbeinconformity withtheconditions laiddown under
Article VIIIoftheArticles ofAgreement oftheInternational Monetary Fund.
Article 23
Rules ofCompetition concerning Undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofar asthey
mayaffect trade between theParties:
(a) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;WT/REG45/1
Page8
(b) abuse byoneormoreundertakings ofadominant position intheterritories oftheParties
asawhole orinasubstantial partthereof.
2. Theprovisions ofparagraph 1shallapply totheactivities ofallundertakings including public
undertakings andundertakings towhich theParties grant special orexclusive rights. Undertakings
entrusted withtheoperation ofservices ofgeneral economic interest orhaving thecharacter ofarevenue-
producing monopoly, shallbesubject toprovisions ofparagraph 1insofar astheapplication ofthese
provisions doesnotobstruct theperformance, inlaworinfact,oftheparticular public tasksassigned
tothem.
3. With regard toproducts referred toinChapter IItheprovisions stipulated inparagraph 1(a)
shallnotapply tosuchagreements, decisions andpractices which form anintegral partofanational
market organization.
4. IfaParty considers thatagiven practice isincompatible withparagraphs 1,2and3andif
suchpractice causes orthreatens tocause serious prejudice totheinterest ofthatParty ormaterial
injury toitsdomestic industry, itmaytakeappropriate measures under theconditions andinaccordance
withtheprocedure setoutinArticle 32.
Article 24
State Aid
1. Anyaidgranted byaStatebeing aParty tothisAgreement orthrough Stateresources inany
formwhatever which distorts orthreatens todistort competition byfavouring certain undertakings or
theproduction ofcertain goods shall, insofar asitmayaffect tradebetween theParties, beincompatible
withtheproper functioning ofthisAgreement.
2. Theprovisions ofparagraph 1shallnotapply toproducts referred toinChapter II.
3. TheParties shallensure transparency intheareaofstateaid,interalia,byreporting annually
toeachother onthetotalamount andthedistribution oftheaidgiven andbyproviding totheother
Party, upon request, information onaidschemes andonparticular individual cases ofState aid.
4. IfaParty considers thataparticular practice, including thatinagriculture:
- isincompatible withtheterms ofparagraph 1;or
- ifsuchpractice causes orthreatens tocause serious prejudice totheinterest ofthat
Party ormaterial injury toitsdomestic industry,
itmaytakeappropriate measures under theconditions ofandinaccordance withtheprovisions of
Article 32.Suchappropriate measures mayonlybetaken inconformity withtheprocedures andunder
theconditions oftheWorld Trade Organization andanyother relevant instrument negotiated under
itsauspices which areapplicable between theParties.
Article 25
Public Procurement
1. TheParties consider theliberalization oftheirrespective public procurement markets asan
objective ofthisAgreement.WT/REG45/1
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2. TheParties shallprogressively develop theirrespective regulations forpublic procurement
withaviewtogrant suppliers oftheother Party, on1January 2001 atthelatest, access tocontract
award procedures ontheirrespective public procurement markets according totheprovisions ofthe
Agreement onGovernment Procurement within theframework oftheWorld Trade Organization.
3. TheJointCommittee shallexamine developments related totheachievement oftheobjectives
ofthisArticle andmayrecommend practical modalities ofimplementing theprovisions ofparagraph 2
soastoensure freeaccess, transparency andfullbalance ofrights andobligations.
4. During theexamination referred toinparagraph 3,theJointCommittee mayconsider, especially
inthelightofdevelopmentsinthisareaininternationalrelations,thepossibilityofextendingthecoverage
and/or thedegree ofthemarket opening provided forinparagraph 2.
5. TheParties shallendeavour toaccede totherelevant Agreements negotiated under theauspices
oftheWorld Trade Organization.
Article 26
Protection ofIntellectual Property
1. TheParties shall grant andensure theprotection ofintellectual property rights onanon-
discriminatory basis, including measures forgranting andenforcing suchrights. Theprotection shall
begraduallyimprovedonalevelcorrespondingtothesubstantivestandardsofthemultilateralagreements
which arespecified inAnnex VtothisAgreement before 1July1999.
2. Forthepurpose ofthisAgreement "intellectual property protection" includes, inparticular,
protection ofcopyright, comprising computer programmes anddatabases, andneighbouring rights,
trade marks, geographical indictions, industrial designs, patents, topographies ofintegrated circuits,
aswellasundisclosed information onknow-how.
3. TheParties shallco-operate inmatters ofintellectual property. They shallhold, uponrequest
ofanyParty, expert consultations onthese matters, inparticular, onactivities relating totheexisting
ortofuture international conventions onharmonization, administration andenforcement ofintellectual
property andonactivities ininternational organizations, suchastheWorld Trade Organization and
theWorld Intellectual Property Organization, aswellasrelations oftheParties withanythirdcountry
onmatters concerning intellectual property.
Article 27
Dumping
IfaParty finds thatdumping within themeaning ofArticle VIoftheGeneral Agreement on
Tariffs andTrade 1994 istaking place intrade relations governed bythisAgreement, itmaytake
appropriate measures against thatpractice inaccordance withArticle VIoftheGeneral Agreement
onTariffs andTrade 1994andtheAgreement onImplementation ofArticle VIoftheGeneral Agreement
onTariffs andTrade 1994 under theconditions andinaccordance withtheprocedure laiddown in
Article 32.WT/REG45/1
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Article 28
General Safeguards
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products inthe
territory oftheimporting Party; or
(b) serious disturbances inanyrelated sector oftheeconomy ordifficulties which could
bring about serious deterioration intheeconomic situation ofaregion,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 31.
Article 29
Structural Adjustment
1. Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 3may
betaken byanyoftheParties intheform ofincreased customs duties.
2. These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce important social problems.
3. Customs duties onimports applicable intheParty concerned toproducts originating inthe
other Party introduced bythese measures maynotexceed 25percentadvalorem andshallmaintain
anelement ofpreference incustoms dutyrateforproducts originating intheother Party. Thetotal
value ofimports oftheproducts which aresubject tothese measures maynotexceed 15percentof
totalimports ofindustrial products from theother Party asdefined inChapter Iduring thelastyear
forwhich statistics areavailable.
4. These measures shallbeapplied foraperiod notexceeding threeyears unless alonger duration
isauthorized bytheJoint Committee. They shallcease toapply on1January 2001 atthelatest.
5. Nosuchmeasures canbeintroduced inrespect ofaproduct ifmore thanthree years elapsed
since theelimination ofallcustoms duties andquantitative restrictions orcharges ormeasures having
anequivalent effect concerning thatproduct.
6. TheParty concerned shallinform theother Party ofanyexceptional measures itintends to
takeand,upon request oftheother Party, consultations shallbeheldwithin theJointCommittee on
suchmeasures andthesectors towhich theyapply prior totheirintroduction. When taking such
measures theParty concerned shallprovide theJoint Committee withaschedule fortheelimination
ofthecustoms duties introduced under thisArticle. Thisschedule shallprovide foraphasing outof
these duties starting atthelatest twoyears aftertheirintroduction. TheJointCommittee maydecide
onadifferent schedule.WT/REG45/1
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Article 30
Re-Export andSerious Shortage
Where compliance withtheprovisions ofArticles 6and8leads to:
(a) re-export towards athirdcountry against which theexporting Party maintains forthe
product concerned quantitative export restrictions, export duties ormeasures orcharges
having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party,
andwhere thesituations referred toabove giveriseorarelikely togiverisetomajor difficulties for
theexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedure laiddown inArticle 32.
Article 31
Fulfilment ofObligations
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallseetoitthattheobjectives setoutinthisAgreement areattained.
2. IfaParty considers thattheother Party hasfailed tofulfilanobligation under thisAgreement,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 32.
Article 32
Procedure fortheApplication ofSafeguard Measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthisArticle, theParties shallendeavour tosolve anydifferences between them through
direct consultations.
2. Intheevent ofaParty subjecting imports ofproducts liable togiverisetothesituation referred
toinArticle 28toanadministrative procedure having asitspurpose therapid provision ofinformation
onthetrend oftrade flows, itshallinform theother Party.
3. Without prejudice toparagraph 7,aParty which considers resorting tosafeguard measures
shallpromptly notify totheother Party thereof andsupply allrelevant information. Consultations
between theParties shalltakeplace without delay intheJoint Committee withaview tofinding a
solution.
4. (a) With regard toArticles 27,28and30,theJoint Committee shallexamine thecase
orthesituation andmaytakeanydecision needed toputanendtothedifficulties
notified bytheParty concerned. Inthecaseoftheabsence ofsuchdecision within
thirty daysofthematter being referred totheJointCommittee, theParty concerned
mayadopt themeasures necessary inorder toremedy thesituation.WT/REG45/1
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(b) With regard toArticle 31,theParty concerned maytakeappropriate measures after
theconsultations havebeenconcluded oraperiod ofthree months haselapsed from
thedateofthefirstnotification totheother Party.
(c) Withregard toArticles 23and24,theParty concerned shallgivetheJointCommittee
alltheassistance required inorder toexamine thecaseand,where appropriate, eliminate
thepractice objected to.IftheParty inquestion failstoputanendtothepractice
objected towithin theperiod fixed bytheJointCommittee oriftheJointCommittee
failstoreach anagreement within thirty daysofthematter being referred toit,the
Partyconcernedmayadopttheappropriatemeasurestodealwiththedifficultiesresulting
from thepractice inquestion.
5. Thesafeguard measures taken shallbeimmediately notified totheother Party. They shall
berestricted withregard totheirextent andtotheirduration towhatisstrictly necessary inorder to
rectify thesituation giving risetotheirapplication andshallnotbeinexcess oftheinjury caused by
thepractice orthedifficulty inquestion. Priority shallbegiven tosuchmeasures which willleast
disturb thefunctioning ofthisAgreement.
6. Thesafeguard measures taken shallbethesubject ofperiodic consultations within theJoint
Committee withaviewtotheirrelaxation assoonaspossible, orabolition when conditions nolonger
justify theirmaintenance.
7. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theParty concerned may,inthecasesofArticles 27,28and30,apply forthwith theprovisional measures
strictly necessary toremedy thesituation. Themeasures shallbenotified without delay andconsultations
between theParties shalltakeplace assoonaspossible within theJoint Committee.
Article 33
Balance ofPayments Difficulties
1. TheParties shallendeavour toavoid theimposition ofrestrictive measures including measures
relating toimports forbalance ofpayments purposes.
2. Where oneoftheParties isinserious balance ofpayments difficulties, orunder imminent threat
thereof, theParty concerned may,inaccordance withtherelevant provisions oftheGeneral Agreement
onTariffs andTrade 1994 adopt restrictive measures, including measures related toimports, which
shallbeoflimited duration andmaynotgobeyond whatisnecessary toremedy thebalance ofpayments
situation. Themeasures shallbeprogressively relaxed asbalance ofpayments conditions improve
andtheyshallbeeliminated when conditions nolonger justify theirmaintenance. TheParty concerned
shallinform theother Party forthwith oftheirintroduction and,whenever practicable, ofaschedule
fortheirremoval.
Article 34
Evolutionary Clause
1. Where aParty considers thatitwould beuseful intheinterests oftheeconomies oftheParties
todevelopanddeepentherelationsestablishedbythisAgreementbyextendingthemtofieldsnotcovered
thereby, itshall submit areasoned request totheother Party. TheParties mayinstruct theJoint
Committee toexamine sucharequest and,where appropriate, tomake recommendations, particularly
withaviewtoopening negotiations.WT/REG45/1
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2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
ortotheapproval bytheParties inaccordance withtheirnational legislation.
CHAPTER IV
Institutional andFinal Provisions
Article 35
TheJoint Committee
1. TheJointCommittee ishereby established andshallconsist ofarepresentative appointed by
theGovernment oftheCzech Republic, ontheonehand, andofarepresentative appointed bythe
Government oftheRepublic ofLatvia, ontheother hand.
2. Theimplementation ofthisAgreement shall besupervised andadministered bytheJoint
Committee.
3. Forthepurpose oftheproper implementation ofthisAgreement, theParties shallexchange
information and,uponrequest ofanyParty, shallholdconsultations within theJointCommittee. The
Joint Committee shallkeepunder review thepossibility offurther removal oftheobstacles totrade
between theParties.
4. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theJoint Committee maymake recommendations.
Article 36
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butatleastonceayear. Each Party mayrequest thatameeting beheld.
2. TheJoint Committee shallactbycommon agreement.
3. Ifarepresentative intheJoint Committee ofaParty has,under thereservation, accepted a
decision subject tothefulfilment ofinternal legal requirements, thedecision shallenter intoforce,
ifnolaterdateiscontained therein, onthedaythelifting ofthereservation isnotified.
4. Forthepurpose ofthisAgreement theJointCommittee shalladopt itsrulesofprocedure which
shall, interalia,contain provisions forconvening meetings andforthedesignation oftheChairman
andhistermofoffice.
5. TheJoint Committee maydecide tosetupsuchsub-committees andworking groups asit
considers necessary toassist itinaccomplishing itstasks.WT/REG45/1
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Article 37
Trade Relations Governed bythisandother Agreements
1. ThisAgreement shallapply totrade relations between theCzech Republic andtheRepublic
ofLatvia.
2. ThisAgreement shallnotprevent themaintenance orestablishment ofcustoms unions, free-
trade areas orarrangements forfrontier trade totheextent thatthese donotnegatively affect thetrade
regime and,inparticular, theprovisions concerning rules oforigin provided forbythisAgreement.
Article 38
Annexes andProtocols
1. TheAnnexes ItoVtothisAgreement andtheProtocols 1to4tothisAgreement shallform
anintegral partofthisAgreement.
2. TheJoint Committee maydecide toamend theAnnexes andProtocols. Inthiscasethe
amendments shallenterintoforce onthedateofareceipt ofthelatter diplomatic noteconfirming their
approval bytheGovernment ofarespective Party.
Article 39
Amendments
Amendments tothisAgreement other thanthose referred toinparagraph 2ofArticle 38shall
enter intoforce onthedateofareceipt ofthelatter diplomatic noteconfirming thatallprocedures
required bythenational legislations ofeachParty forentry intoforce oftheamendments havebeen
completed.
Article 40
Entry intoForce
1. ThisAgreement issubject totheratification andshallenter intoforce onthefirstdayofthe
second month following thedateofexchange oftheinstruments ofratification.
2. Theexchange oftheinstruments ofratification shalltakeplace inPrague.
Article 41
Provisional Application
Pending theentry intoforce ofthisAgreement according toArticle 40,theCzech Republic
shallapply thisAgreement provisionally from1July1996, provided thattheRepublic ofLatvia shall
notify priorto15June1996, thatitsinternal legalrequirements forentry intoforce ofthisAgreement
arefulfilled andthattheRepublic ofLatvia shallapply thisAgreement from 1July1996.WT/REG45/1
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Article 42
Validity andTermination
1. ThisAgreement isconcluded foranunlimited period.
2. Either Party mayterminate thisAgreement byawritten notification totheother Party. The
termination shalltakeeffect onthefirstdayoftheseventh month following thedateonwhich the
notification wasreceived bytheother Party.
INWITNESS WHEREOF theundersigned plenipotentiaries, being dulyauthorized thereto,
havesigned thisAgreement.
Done atRigathis15thdayofApril OneThousand Nine Hundred andNinety-Six, intwo
originals, eachintheEnglish language, bothtextsbeing equally authentic.
FortheCzech Republic FortheRepublic ofLatviaWT/REG45/1
Page16
RECORD OFUNDERSTANDINGS
1. Therelevant bodies oftheParties shallconsider thepossibility oftheconclusion ofanagreement
onmutual recognition oftheaccreditation oftesting andcalibration laboratories andcertification bodies
andproduct andquality systems certificates ofmutual recognition ofthetypeapproval ofmeasuring
equipment which areissued intheParties andprocedures forrecognition oftheresults ofthe
measurements, calibration andconformity withrequirements.
2. With regard toparagraph 2ofArticle 38,theGovernment shallactinaccordance withthe
legalprocedures required bythenational lawinforce.
3. TheParties agreed toassess, atthelatest twoyears afterthedateofentry intoforce ofthis
Agreement within theJointCommittee theeffects oftheconcessions granted forproducts inProtocol 2
tothisAgreement andmaydecide onpossible amendments ofthemutual concessions andproducts
covered byAnnexes toProtocol 2tothisAgreement.
4. Thediagonal cumulation laiddown inArticle 4ofProtocol 3tothisAgreement mayonlybe
applied, when thecountries mentioned inthisArticle havetheFreeTrade Agreement ortheAgreement
EstablishingtheCustomsUnion,containingidenticalrulesoforigin,withbothParties.Forthecountries
notcomplying withthiscondition onthedateofentry intoforce ofthisAgreement, thisArticle 4shall
apply fromthedateofentryintoforceeither oftheFreeTrade Agreement ortheAgreement Establishing
theCustoms Union oroftheamendment ofsuchAgreement containing identical rulesoforigin, between
thatcountry andthelatter oftheParties.
Each reference toArticle 4ofProtocol 3tothisAgreement shallapply inaccordance with
thisRecord ofUnderstandings.
5. Theprohibition ofdrawback of,ortheexemption from, customs duties laiddown inArticle 15
ofProtocol 3tothisAgreement shallbetemporarily derogated untilitwillbeapplied withtheEuropean
Union andwiththeEFTA States.