WORLD TRADE WT/REG35/1
18December 1997
ORGANIZATION(97-5548)
Original: English Committee onRegional Trade Agreements
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OFSLOVENIA
AND THE REPUBLIC OFLITHUANIA
Thefollowing textreproduces theFreeTrade Agreement.1
________________
PREAMBLE
TheRepublic ofSlovenia andtheRepublic ofLithuania (hereinafter called theParties),
Reaffirming theirfirmcommitment todemocracy based ontheruleoflaw,human rights and
fundamental freedoms,
Recalling theirintention toparticipate actively intheprocess ofeconomic integration inEurope
andexpressing theirpreparedness toco-operate inseeking ways andmeans tostrengthen thisprocess,
Reaffirming theirfirmcommitment totheprinciples ofamarket economy which constitutes
thebasis fortheirrelations,
Recalling theirfirmcommitment totheFinalActoftheConference onSecurity andCooperation
inEurope, theParis Charter, andinparticular theprinciples contained inthefinaldocument ofthe
Bonn Conference onEconomic Co-operation inEurope,
Having regard totheDeclaration ofIntent ontheconclusion oftheFreeTrade Agreement
between theParties signed on29March 1994,
Resolved tothisendtoeliminate progressively theobstacles tosubstantially alltheirmutual
trade, inaccordance withtheprovisions oftheGeneral Agreement onTariffs andTrade 1994andthe
Agreement Establishing theWorld Trade Organization,
Firmly convinced thatthisAgreement willfoster theintensification ofmutually beneficial trade
relations among them andcontribute totheprocess ofintegration inEurope,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theParties
fromtheirobligations under otherinternational agreements, especially theGeneral Agreement onTariffs
andTrade 1994 andtheAgreement Establishing theWorld Trade Organization,
Have decided asfollows:
1TheAnnexesandProtocoltheretohavebeensubmittedtotheSecretariatforconsultationbyinterestedMembers
(Office 3006).WT/REG35/1
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Article 1
Objectives
1. TheParties shall gradually establish, during atransitional period ending atthelatest on
1January 1999 afree-trade areainaccordance withtheprovisions ofthepresent Agreement andin
conformity withthose oftheGeneral Agreement onTariffs andTrade 1994, inparticular Article XXIV
oftheGATT, andtheAgreement Establishing theWorld Trade Organization.
2. Theobjectives ofthepresent Agreement are:
(i) topromote, through theexpansion oftrade, theharmonious development ofeconomic
relations between theParties andthustofoster theadvance oftheireconomic activity,
theimprovement ofliving andemployment conditions, andincrease theproductivity
andfinancial stability;
(ii) toprovide fairconditions ofcompetition intrade between theParties; and
(iii) tocontributeinthisway,byremovalofbarrierstotrade,totheharmoniousdevelopment
andexpansion oftheworld trade.
CHAPTER I
Industrial Products
Article 2
Scope
Provisions ofthisChapter shallapply toindustrial products originating intheParties. For
thepurpose ofthisAgreement "industrial products" means products falling within Chapters 25to97
oftheHarmonized Commodity Description andCoding System, withtheexception oftheproducts
listed inAnnex I.
Article 3
Basic Duties
1. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbetheMost Favoured Nation rateofdutyapplicable on1July1996.
2. If,afterentry intoforce oftheAgreement, anytariff reduction isapplied onanergaomnes
basis, inparticular reductions resulting fromthetariffagreement concluded asaresult oftheUruguay
Round ofmultilateral trade negotiations, suchreduced duties shallreplace thebasic duties referred
toinparagraph 1asfrom thedatewhen suchreductions areapplied.
3. Thereduced duties, calculated inaccordance withparagraph 2,shallbeapplied rounded to
thefirstdecimal place.
4. TheParties shallcommunicate toeachother theirrespective customs duties.WT/REG35/1
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Article 4
Customs Duties onImports
1. Nonewcustoms duties onimports shallbeintroduced intrade between theParties asfrom
theentry intoforce ofthisAgreement.
2. CustomsdutiesonimportsforproductsoriginatinginthePartiesshallbeabolishedinaccordance
withtheprovisions laiddown inProtocol 1.
Article 5
Charges Equivalent toImport Duties
1. Nonewcharges having aneffect equivalent tocustoms duties onimports shallbeintroduced
intrade between theParties asfrom theentry intoforce ofthisAgreement.
2. Allcharges having aneffect equivalent tocustoms duties onimports shallbeabolished onthe
dateoftheentry intoforce ofthisAgreement.
Article 6
Fiscal Duties
Theprovisions ofArticle 4shallalsoapply tocustoms duties ofafiscal nature.
Article 7
Customs Duties onExports andCharges having Equivalent Effect
1. Nonewcustoms duties onexports orcharges having equivalent effect shallbeintroduced in
trade between theParties.
2. Allexistingcustomsdutiesonexportsandanychargeshavingequivalenteffectshallbeabolished
onthedateofentry intoforce ofthisAgreement, except asprovided forinAnnexes IIandIII.
Article 8
Quantitative Restrictions onImports andMeasures having Equivalent Effect
1. Nonewquantitative restrictions onimports ormeasures having equivalent effect shall be
introduced intrade between theParties asfrom thedateofentry intoforce ofthisAgreement.
2. Allquantitative restrictions andmeasures having equivalent effect onimports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce oftheAgreement.
Article 9
Quantitative Restrictions onExports andMeasures having Equivalent Effect
1. Nonewquantitative restrictions onexports ormeasures having equivalent effect shall be
introduced intrade between theParties asfrom thedateofentry intoforce ofthisAgreement.WT/REG35/1
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2. Allquantitative restrictions onexports fromtheParties andmeasures having equivalent effect
shallbeabolished onthedateoftheentry intoforce oftheAgreement.
Article 10
Information Procedure onDraft Technical Regulations
1. TheParties shallcooperate andexchange information inthefieldofstandardisation, metrology,
conformity, assessment andaccreditation withtheaimofreducing technical barriers totrade.
2. Toeliminate technical barriers andeffectively implement thisAgreement, theParties canon
thebasisherebyconcludeanarrangementformutualrecognitionoftestreports,certificatesofconformity
andother documents directly orindirectly related toconformity assessment ofproducts which arethe
subject ofthegoods exchange between theParties onthebasisofregulation inforce intheimporting
state.
3. Aspecification ofconditions andmethods forconformity assessment shallbeprepared inmutual
agreement bythecompetent national authorities forthecarrying outofprocedures ofconformity
assessment onthebasis oftheregulations inforce intheexporting state.
CHAPTER II
Agricultural Products
Article 11
Scope
1. Provisions ofthisChapter shallapply toagricultural products originating intheParties tothis
Agreement.
2. Forthepurpose ofthisAgreement "agricultural products" means products falling within
Chapter 1to24oftheHarmonized Commodity Description andCoding System andtheproducts listed
inAnnex I.
Article 12
Exchange ofConcessions
1. TheParties tothisAgreement grant eachother theconcessions specified inProtocol 2in
accordance withtheprovisions ofthisChapter andthose laiddown inthisProtocol.
2. Taking account of:
- theroleofagriculture intheireconomies;
- thedevelopment oftrade inagricultural products between theParties;
- theparticular sensitivity oftheagricultural products;
- therules oftheiragricultural policies;WT/REG35/1
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- theconsequences ofthemultilateral trade negotiations under theGeneral Agreement
onTariffs andTrade andoftheWorld Trade Organization,
theParties shallexamine thepossibilities ofgranting eachother further concessions.
Article 13
Concessions andAgricultural Policies
1. Without prejudice totheconcessions granted under Article 12,provisions ofthisChapter shall
notrestrict inanywaythepursuance oftherespective agricultural policies oftheParties orthe
application ofanymeasures under suchpolicies, including theimplementation oftheresults ofthe
Uruguay Round Agreements.
2. TheParty shallnotify totheother Party changes initsrespective agricultural policy pursued
ormeasures applied, which mayaffect conditions ofagricultural tradebetween theParties asprovided
forinthisAgreement. Ontherequest oftheParty prompt consultations shallbeheldtoexamine the
situation.
Article 14
Specific Safeguards
Notwithstanding other provisions ofthisAgreement andinparticular Article 27,andgiven
theparticular sensitivity oftheagricultural products, ifimports ofproducts originating inaParty, which
aresubject toconcessions granted under thisAgreement, cause serious disturbances tothemarket of
theother Party, theParty concerned shallimmediately enter intoconsultations tofindanappropriate
solution. Pending suchsolution, theParty concerned maytakemeasures itdeems necessary.
Article 15
Sanitary andPhytosanitary Measures
TheParties shallapply theirregulations forprotection ofhuman, animal orplantlifeorhealth
inanon-discriminatory fashion andshallnotintroduce anynewmeasures thathavetheeffect ofunduly
obstructing trade.
CHAPTER III
General Provisions
Article 16
Rules ofOrigin andCooperation inCustoms Administration
1. Protocol 3laysdown therules oforigin andrelated methods ofadministrative cooperation.
2. TheParties tothisAgreement shalltakeappropriate measures, including regular reviews by
theJoint Committee andarrangements foradministrative cooperation, toensure thattheprovisions
ofProtocol 3andArticles 3to9,12,17,27,28and29oftheAgreement areeffectively andWT/REG35/1
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harmoniously applied, andtoreduce, asfaraspossible, theformalities imposed ontrade, andtoachieve
mutually satisfactory solutions toanydifficulties arising from theoperation ofthose provisions.
3. Protocol 4shallstipulate mutual assistance andcooperation between Customs Administrations
oftheParties.
Article 17
Internal Taxation
1. TheParties tothisAgreement shallrefrain fromanymeasure orpractice ofaninternal fiscal
nature establishing, whether directly orindirectly, discrimination between theproducts originating in
theParties.
2. Products exported totheterritory ofoneoftheParties maynotbenefit from repayment of
internal taxation inexcess oftheamount ofdirect orindirect taxation imposed onthem.
Article 18
General Exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified onthegrounds ofpublic morality, public policy orpublic security; theprotection
ofhealth andlifeofhumans, animals orplants andenvironment; theprotection oftreasures ofculture;
theprotection ofintellectual property orrulesrelating togoldorsilver ortheconservation 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 19
Security Exceptions
Nothing inthisAgreement shallprevent aParty fromtaking anymeasure which itconsiders
necessary:
1. toprevent thedisclosure ofinformation contrary toitsessential security interests;
2. fortheprotection ofitsessential security interests orfortheimplementation ofinternational
obligations ornational policies:
(i) relating tothetraffic inarms, ammunition andimplements ofwar,provided thatsuch
measures donotimpair theconditions ofcompetition inrespect ofproducts notintended
forspecifically military purposes, andtosuchtraffic inother goods, materials and
services 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.WT/REG35/1
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Article 20
State Monopolies
1. TheParties shalladjust progressively anyStatemonopoly ofacommercial character soasto
ensure thatbytheendofthefifthyearaftertheentry intoforce ofthisAgreement, nodiscrimination
regarding theconditions under which goods areprocured andmarketed exists between nationals of
theParties. TheParties shallinform eachother about themeasures adopted toimplement thisobjective.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheParties, inlaworinfact,either directly orindirectly supervise, determine orappreciably influence
imports orexports between theParties. These provisions shalllikewise apply tomonopolies delegated
bytheState toothers.
Article 21
Payments
1. Payments infreely convertible currencies relating totrade ingoods between theParties and
thetransfer ofsuchpayments totheterritory oftheParty tothisAgreement, where thecreditor resides,
shallbefreefrom anyrestrictions.
2. ThePartiesshallrefrainfromanyexchangeoradministrativerestrictionsonthegrant,repayment
oracceptance ofshort andmedium term credits totrade ingoods inwhich aresident ofParty
participates.
3. Notwithstanding theprovisions ofparagraph 2,anymeasures concerning current payments
connected withthemovement ofgoods shall beinconformity withconditions laiddown under
Article VIIIoftheArticles oftheAgreement oftheInternational Monetary Fund.
Article 22
Rules ofCompetition Concerning Undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofar asthey
mayaffect trade between theParties:
(a) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings, which haveastheirobject oreffect the
prevention, restriction ordistortion ofcompetition;
(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, inlaworfact,oftheparticular public tasks assigned
tothem.WT/REG35/1
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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 1,2and3ofthis
Article, orifsuchpractice causes orthreatens tocause serious prejudice totheinterest ofthatParty
ormaterial injury toitsdomestic industry, theParty concerned maytakeappropriate measures under
theconditions andinaccordance withtheprocedure laiddown inArticle 31.
Article 23
State Aid
1. Anyaidgranted byaStatebeing aParty tothisAgreement orthrough Stateresources inany
formwhatsoever which distorts orthreatens todistort competition byfavouring certain undertakings
ortheproduction ofcertain goods shall, insofar asitmayaffect trade between theParties tothis
Agreement, beincompatible withtheproper functioning ofthisAgreement.
2. Theprovisions ofparagraph 1shallnotapply toproducts referred toinChapter II.
3. TheJoint Committee shall, within three years from theentry intoforce ofthisAgreement,
adopt thecriteria onthebasisofwhich thepractices contrary toparagraph 1shallbeassessed, aswell
astherules fortheirimplementation.
4. TheParties shallensure transparency intheareaofstateaid,interalia,byreporting annually
totheJointCommittee onthetotalamount andthedistribution oftheaidgiven andbyproviding to
theother Party, upon request, information onaidschemes andonparticular individual cases ofstate
aid.
5. IfaParty considers thataparticular practice:
- isincompatible withtheterms ofparagraph 1,andisnotadequately dealtwithunder
theimplementing rules referred toinparagraph 3,or
- intheabsence ofsuchrules, referred toinparagraph 3,causes orthreatens tocause
serious prejudice totheinterest ofthatParty ormaterial injury toitsdomestic industry,
itmaytakeappropriate measures under theconditions ofandinaccordance withtheprovisions laid
down inArticle 31.
6. Such appropriate measures mayonlybetaken inconformity withtheprocedures andunder
theconditions laiddown bytheGeneral Agreement onTariffs andTrade 1994andbytheAgreement
Establishing theWorld Trade Organization, andanyother relevant instruments negotiated under their
auspices, which areapplicable between theParties concerned.
Article 24
Government Procurement
1. TheParties consider theliberalization oftheirrespective government procurement markets
asanobjective ofthisAgreement.WT/REG35/1
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2. ThePartiesshallprogressivelydeveloptheirrespectiverules,conditionsandpracticesconcerning
government procurement with aview togrant suppliers oftheother Parties, atthelatest by
1January1999,accesstocontractawardproceduresontheirrespectivegovernmentprocurementmarkets
accordingtotheprovisionsoftheAgreementonGovernmentProcurementinAnnexIVtotheAgreement
Establishing theWorld Trade Organization.
3. TheJointCommittee shallexamine developments related totheachievement oftheobjectives
ofthisArticle andmayrecommend practical modalities ofimplementing theprovisions ofparagraph 2
ofthisArticle, soastoensure freeaccess, transparency andfullbalance ofrights andobligations.
4. During theexamination, referred toinparagraph 3ofthisArticle, theJointCommittee may
consider, especially inthelightofinternational regulations inthisarea, thepossibility ofextending
thecoverage and/or thedegree ofthemarket opening provided forinparagraph 2.
5. TheParties shallendeavour toaccede totherelevant Agreements negotiated under theauspices
oftheGeneral Agreement onTariffs andTrade 1994andtheAgreement Establishing theWorld Trade
Organization.
Article 25
Protection ofIntellectual Property
1. TheParties shall grant andensure protection ofintellectual property rights onanon-
discriminatory basis, including measures forthegrant andenforcement ofsuchrights. Theprotection
shallbegradually improved onalevelcorresponding tothesubstantive standards ofthemultilateral
agreements which arespecified inAnnex IVby1January 2001 atthelatest.
2. Forthepurpose ofthisAgreement "intellectual property protection" includes inparticular
protection ofcopyright, neighbouring rights, trademarks, geographical indications, industrial designs,
patents, topographies ofintegrated circuits, aswellasundisclosed information (know-how).
3. TheParties tothisAgreement mayconclude further agreements exceeding therequirements
ofthisAgreement andisinconformity withtheTRIPSAgreement.
4. TheParties shallcooperate inmatters ofintellectual property. They shallhold, uponrequest
ofaParty, expert consultations onthese matters, inparticular onactivities relating totheexisting or
tofuture international conventions onharmonization, administration andenforcement ofintellectual
property andonactivities ininternational organizations, suchastheWorld Trade Organization, WIPO,
aswellasonrelations ofParties withthirdcountries inmatters concerning intellectual property.
Article 26
Dumping
IfaParty tothisAgreement finds thatdumping within themeaning ofArticle VIofthe
GATT 1994 istaking place intrade relations governed bythisAgreement, itmaytakeappropriate
measures against thatpractice inaccordance withArticle VIoftheGeneral Agreement onTariffs and
Trade 1994 andagreements related tothatArticle, under theconditions andinaccordance withthe
procedure laiddown inArticle 31.WT/REG35/1
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Article 27
General Safeguards
Where anyproduct isbeing imported insuchincreased quantities andunder suchobligations
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 28
Structural Adjustment
1. Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 4may
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 forproducts originating intheother Party. Thetotalvalue ofimports of
theproducts which aresubject tothesemeasures maynotexceed 15percentoftotalimports ofindustrial
products from theother Party asdefined inChapter I,during thelastyearforwhich statistics are
available.
4. These measures shallbeapplied foraperiod notexceeding fouryears unless alonger duration
isauthorized bytheJoint Committee. They shallcease toapply on1January 2001 atthelatest.
5. Nosuchmeasures canbeintroduced inrespect ofaproduct ifmore thanthree years elapsed
since theentry intoforce ofthisAgreement orelimination ofallduties andquantitative restrictions
orcharges ormeasures having anequivalent effect concerning thatproduct.
6. TheParty concerned shallinform theother Party ofanyexceptional measures itintends to
takeand,attherequest oftheother Party, consultations shallbeheldintheJointCommittee onsuch
measures andthesectors towhich theyapply before theyareapplied. When taking suchmeasures
theParty concerned shallprovide theJointCommittee withaschedule fortheelimination ofthecustoms
duties introduced under thisArticle. Thisschedule shallprovide foraphasing outoftheseduties starting
atthelatest twoyears aftertheirintroduction, atequal annual rates. TheJointCommittee maydecide
onadifferent schedule.WT/REG35/1
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Article 29
Re-Export andSerious Shortage
Where compliance withtheprovisions ofArticles 7and9leads to:
(a) re-export towards athirdcountry against which theexporting Party maintains forthe
product concerned quantitative export restrictions, export duties ormeasures orcharges
having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party,
andwhere thesituations referred toabove giveriseorarelikely togiverisetomajor difficulties for
theexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedures laiddown inArticle 31.
Article 30
Fulfilment ofObligations
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
theAgreement. They shallensure toitthattheobjectives setoutintheAgreement areachieved.
2. IfaParty considers thattheother Party hasfailed tofulfilanobligation under thisAgreement,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 31.
Article 31
Procedure fortheApplication ofSafeguard Measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthepresent Article, theParties shallendeavour tosolve anydifferences between them
through direct consultations.
2. IfaParty subjects imports ofproducts liable togiverisetothesituation referred toinArticle 27
toanadministrative procedure, thepurpose ofwhich istherapid provision ofinformation onthetrend
oftrade flows, itshallinform theother Party.
3. Without prejudice toparagraph 7ofthepresent Article, aParty which considers resorting to
safeguard measures shallpromptly notify theother Party thereof andsupply allrelevant information.
Consultations between theParties shalltakeplace without delay withaviewtofinding asolution.
4. (a) Asregards Articles 26,27and29,incasethatajointsituation cannot befound or
thattheParties cannot ordoesnotmeetwithin 30daysinorder toconsult eachother,
theParty concerned mayadopt themeasures necessary inorder toremedy thesituation,
andnotify theother Party.
(b) Asregards Article 30,theParty concerned maytakeappropriate measures afterthe
consultations havebeenconcluded, orafteraperiod ofthreemonths haselapsed from
thedateofthefirstnotification totheother Party.WT/REG35/1
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(c) Asregards Articles 22and23,theParty concerned shallrequest fromtheother Party
toeliminate thepractice objected to.Iftheother Party failstoputanendtothepractice
objected toorifanagreement cannot bereached within thirty working days, theParty
concerned mayadopt theappropriate counter-measures todealwiththedifficulties
resulting from thepractice inquestion.
5. Thesafeguard measures taken shallbenotified immediately totheother Party. They shall
belimited withregard totheirextent andtotheirduration towhatisstrictly necessary inorder torectify
thesituation giving risetotheirapplication andshallnotbeinexcess oftheinjury caused bythepractice
orthedifficulty inquestion. Priority shallbegiven tosuchmeasures aswillleastdisturb thefunctioning
ofthisAgreement. Themeasures taken byaParty against anaction oranomission ofanother Party
mayonlyaffect thetrade withthatParty.
6. Thesafeguard measures taken shallbetheobject ofperiodic consultations withaviewtotheir
relaxation assoonaspossible, orabolition when conditions nolonger justify theirmaintenance.
7. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theParty concerned may,inthecasesofArticles 26,27and29,apply forthwith theprovisional measures
strictly necessary toremedy thesituation. Themeasures shallbenotified without delay andconsultations
between theParties shalltakeplace assoonaspossible.
Article 32
Balance ofPayments Difficulties
1. TheParties shallendeavour toavoid theimposition ofrestrictive measures including measures
relating toimports forbalance ofpayments purposes.
2. Where oneoftheParties isinserious balance ofpayments difficulties, orunder imminent threat
thereof, theParty concerned may, inaccordance withtheconditions established under theGeneral
AgreementonTariffsandTrade1994,adoptrestrictivemeasures,includingmeasuresrelatedtoimports,
which shallbeoflimited duration andmaynotgobeyond what isnecessary toremedy thebalance
ofpayments situation. Themeasures shallbeprogressively relaxed asbalance ofpayments conditions
improve andtheyshallbeeliminated when conditions nolonger justify theirmaintenance. TheParty
shallinform theotherParty forthwith oftheirintroduction and,whenever practicable, ofatimeschedule
fortheirremoval.
Article 33
Evolutionary Clause
1. Where aParty considers thatitwould beuseful intheinterest oftheeconomies oftheParties
todevelop anddeepen therelations established bytheAgreement byextending themtofields notcovered
thereby, itshallsubmit areasonable request totheother Party. TheParties mayinstruct theJoint
Committee toexamine sucharequest and,where appropriate, tomake recommendations, particularly
withaviewtoopening negotiations.
2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
orapproval bytheParties inaccordance withtheirownprocedures.WT/REG35/1
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Article 34
TheJoint Committee
1. TheParties agree tosetuptheJoint Committee composed ofrepresentatives oftheParties.
2. Theimplementation ofthisAgreement shall besupervised andadministered bytheJoint
Committee.
3. Forthepurpose oftheproper implementation oftheAgreement, theParties shallexchange
information and,attherequest ofanyParty, shallholdconsultations within theJointCommittee. The
Committee shallkeepunder review thepossibility offurther removal oftheobstacles totradebetween
theParties.
4. TheJointCommittee maytakedecisions incases provided forinthisAgreement. Onother
matters theCommittee maymake recommendations.
Article 35
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butatleastonceayear. Each Party mayrequest thatameeting beheld.
2. TheJoint Committee shallactbymutual agreement.
3. Ifarepresentative intheJointCommittee ofaParty tothisAgreement hasaccepted adecision
subject tothefulfilment ofinternal legalrequirements, thedecision shallenter intoforce, ifnolater
dateiscontained therein, onthedaythelifting ofthereservation isnotified.
4. Forthepurpose ofthisAgreement theJointCommittee shalladopt itsrulesofprocedure which
shall, interalia,contain provisions forconvening meetings andforthedesignation oftheChairman
andhis/her termofoffice.
5. TheJoint Committee maydecide tosetupsuchsub-committees andworking groups asit
considers necessary toassist itinaccomplishing itstasks.
Article 36
Services andInvestment
1. ThePartiestothisAgreementrecognisethegrowingimportanceofcertainareas,suchasservices
andinvestments. Intheirefforts togradually develop andbroaden theircooperation, inparticular in
thecontext oftheEuropean integration, theywillco-operate withtheaimofachieving aprogressive
liberalization andmutual opening ofmarkets forinvestments andtradeinservices, taking intoaccount
relevant provisions oftheGeneral Agreement onTrade inServices.
2. TheParties willdiscuss intheJointCommittee thepossibilities toextend theirtrade relations
tothefields offoreign direct investment andtrade inservices.WT/REG35/1
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Article 37
Customs Unions, Free-Trade Areas andFrontier Trade
ThisAgreementshallnotpreventthemaintenanceorestablishmentofcustomsunions,free-trade
areasorarrangements forfrontier tradetotheextent thatthesedonotnegatively affect thetraderegime
oftheParties andinparticular theprovisions concerning rulesoforigin provided forbythisAgreement.
Article 38
Annexes, Protocols andAmendments
1. Annexes andProtocols tothisAgreement areanintegral partofit.TheJointCommittee may
decide toamend theAnnexes andProtocols inaccordance withtheprovisions ofparagraph 3ofthe
Article 35.
2. Amendments tothisAgreement other thanthose decided uponinaccordance withparagraph 4
ofArticle 34,andwhich areapproved bytheJointCommittee, shallbesubmitted totheother Party
foracceptance andshallenter intoforce ifaccepted bybothParties.
Article 39
Entry intoForce
ThisAgreement shallenterintoforce onthefirstdayofthemonth following thedateonwhich
theParties havenotified eachother through diplomatic channels thattheirinternal legalrequirements
fortheentry intoforce ofthisAgreement havebeenfulfilled.
Article 40
Provisional Application
ThisAgreement shallbeapplied provisionally from thefirstdayofthemonth following the
dateofnotification bytheRepublic ofLithuania thatitsinternal legalrequirements fortheentry into
force ofthisAgreement havebeenfulfilled, butnotbefore 1January 1997.
Article 41
Validity andWithdrawal
ThisAgreement isconcluded foranindefinite period oftime. Each Party tothisAgreement
maywithdraw therefrom bymeans ofawritten notification totheother Party. Insuchcases this
Agreement shallcease tobindsixmonths afterthedateonwhich thenotification wasreceived bythe
other Party.
INWITNESS WHEREOF theundersigned plenipotentiaries, being dulyauthorized thereto,
havesigned thepresent Agreement.WT/REG35/1
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Done in............ atthis....... dayof....induplicate copies intheSlovenian, Lithuanian andEnglish
languages, alltextsbeing equally authentic. Incaseofdivergences theEnglish textshallprevail.
FortheRepublic ofSlovenia FortheRepublic ofLithuaniaWT/REG35/1
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RECORD OFUNDERSTANDINGS
1. Asregards paragraph 2ofArticle 3,theParties agree thatwhere areduction ofduties iseffected
bywayofasuspension ofduties made foraparticular period oftime, suchreduced duties shallreplace
thebasic duties onlyfortheperiod ofsuchsuspension andthatwhenever apartial suspension ofduties
ismade, thepreferential margin between theParties willbepreserved.
2. TheParties agree thatArticle 9doesnotapply when measures covered bythisArticle might
berequired fortheadministration ofinternational obligations.
3. When elaborating thecriteria andrules indicated inparagraph 3ofArticle 23,theParties:
- shallaimatensuring theirgreatest possible conformity withtherelevant criteria and
rulesusedunder theAgreements establishing anAssociation between eachoftheParties
ofthisAgreement andtheEuropean Communities;
- shall define theconditions and/or situations when temporary derogations from the
provisions ofparagraph 1maybeapplicable;
- shallreview conditions under which actions against stateaidpractices maybetaken.
4. Concerning paragraph 4ofArticle 23,theJointCommittee shall, within oneyearfollowing
theentry intoforceofthisAgreement, adopt thenecessary rulesfortheimplementation oftransparency
measures.
5. TheParties consider thatanarbitration procedure could beenvisaged fordisputes which cannot
besettled through consultations between theParties concerned orintheJoint Committee. Such a
possibility maybefurther examined intheJoint Committee.