RESTRICTED
WORLD TRADE WT/REG29/1
23July1996
ORGANIZATION(96-2907)
Original: English
FREE TRADE AGREEMENT BETWEEN
THE EFTA STATES AND THE REPUBLIC OFLATVIA
Thefollowing textreproduces theFreeTrade Agreement between theEFTA States andthe
Republic ofLatvia.1
_________________________
FREE TRADE AGREEMENT BETWEEN
THE EFTA STATES AND THE REPUBLIC OFLATVIA
PREAMBLE
TheRepublic ofIceland, thePrincipality ofLiechtenstein, theKingdom ofNorway, theSwiss
Confederation (hereinafter called theEFTA States)
and
theRepublic ofLatvia (hereinafter called Latvia),
Recalling theirintention toparticipate actively intheprocess ofeconomic integration inEurope
andexpressing theirpreparedness toco-operate inseeking ways andmeans tostrengthen thisprocess,
Considering theimportance ofthelinks existing between theEFTA States andLatvia, in
particular theDeclaration signed inGeneva inDecember 1991, andrecognizing thecommon wish
tostrengthen these links, thusestablishing close andlasting relations,
RecallingtheirfirmcommitmenttotheFinalActoftheConferenceonSecurityandCo-operation
inEurope, theCharter ofParis foranewEurope, andinparticular theprinciples contained inthe
finaldocument oftheCSCE Bonn Conference onEconomic Co-operation inEurope,
Reaffirming theircommitment topluralistic democracy based ontheruleoflaw,human rights,
including rights ofpersons belonging tominorities, andfundamental freedoms, andrecalling their
membership intheCouncil ofEurope,
1TheAnnexes, Lists andProtocols thereto, aswellasthebilateral agricultural arrangements, have been
submitted totheSecretariat forconsultations byinterested Members (Office 3006).WT/REG29/1
Page2
Desiringtocreatefavourableconditionsforthedevelopmentanddiversificationoftradebetween
them andforthepromotion ofcommercial andeconomic co-operation inareas ofcommon interest
onthebasis ofequality, mutual benefit, most-favoured-nation treatment andinternational law,
Resolved tocontribute tothestrengthening ofthemultilateral trading system andtodevelop
theirrelations inthefieldoftrade inaccordance withtheprinciples oftheAgreement Establishing
theWorld Trade Organization (WTO), Latvia having theobjective tobecome aMember ofWTO,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theStates
Parties tothisAgreement fromtheirobligations under otherinternational agreements, especially WTO,
Determined toimplement thisFreeTrade Agreement withtheobjective topreserve andprotect
theenvironment andtoensure anoptimal useofnatural resources inaccordance withtheprinciple
ofsustainable growth,
Firmly convinced thatthisFreeTrade Agreement willfoster thecreation ofanenlarged and
harmonious freetrade areawithin Europe, thusconstituting animportant contribution toEuropean
integration,
Declaring theirreadiness toexamine, inthelightofanyrelevant factor, thepossibility of
developing anddeepening theireconomic relations inorder toextend them tofields notcovered by
thisAgreement,
HAVE DECIDED, inpursuit oftheabove, toconclude thefollowing Agreement (hereinafter
called thisAgreement):
Article 1
Objectives
1. TheEFTA States andLatvia shallestablish afreetradeareainaccordance withtheprovisions
ofthepresent Agreement.
2. Theobjectives ofthisAgreement, which isbased ontraderelations between market economies
andontherespect ofdemocratic principles andhuman rights, are:
(a) topromote, through theexpansion ofreciprocal trade, theharmonious development
oftheeconomic relations between theEFTA States andLatvia andthustofoster in
theEFTA States andinLatvia theadvance ofeconomic activity, theimprovement of
living andemployment conditions, andincreased productivity andfinancial stability;
(b) toprovide fairconditions ofcompetition fortrade between theStates Parties tothis
Agreement;
(c) tocontribute inthisway, bytheremoval ofbarriers totrade, toEuropean economic
integration andtotheharmonious development andexpansion ofworld trade.WT/REG29/1
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Article 2
Scope
ThisAgreement shallapply:
(a) toproducts falling within Chapters 25to97oftheHarmonized Commodity Description
andCoding System, excluding theproducts listed inAnnex I;
(b) toproducts specified inProtocol A,withdueregard tothearrangements provided for
inthatProtocol;
(c) tofishandother marine products asprovided forinAnnex II;originating inanEFTA
State orLatvia.
Article 3
Rules oforigin andco-operation incustoms administration
1. Protocol Blaysdown therules oforigin andmethods ofadministrative co-operation.
2. TheStates Parties tothisAgreement shalltakeappropriate measures, including regular reviews
bytheJointCommittee andarrangements foradministrative co-operation, toensure thattheprovisions
ofArticles 4(Customs duties onimports andcharges having equivalent effect), 5(Customs duties of
afiscal nature), 6(Customs duties onexports andcharges having equivalent effect), 7(Quantitative
restrictions onimports orexports andmeasures having equivalent effect), 12(Internal taxation) and
21(Re-export andserious shortage) ofthisAgreement andProtocol Bareeffectively andharmoniously
applied, andtoreduce, asfaraspossible, theformalities imposed ontrade, andtoachieve mutually
satisfactory solutions toanydifficulties arising from theoperation ofthose provisions.
3. Afirstreview referred toinparagraph 2willtakeplace within oneyearaftertheentry into
force ofthisAgreement. Subsequent reviews shalltakeplace every second year. Onthebasisofthese
reviews, theStates Parties tothisAgreement shalldecide ontheappropriate measures tobetaken.
Article 4
Customs duties onimports andcharges having equivalent effect
1. Nonewcustoms dutyonimports orcharge having equivalent effect shallbeintroduced intrade
between theEFTA States andLatvia.
2. TheEFTA States shallabolish onthedateofentry intoforce ofthisAgreement allcustoms
duties onimports andanycharges having equivalent effect onproducts originating inLatvia.
3. Latvia shallabolish onthedateofentry intoforce ofthisAgreement allcustoms duties on
imports andanycharges having equivalent effect onproducts originating inanEFTA State.WT/REG29/1
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Article 5
Customs duties ofafiscal nature
Theprovisions ofArticle 4(Customs duties onimports andcharges having equivalent effect)
shallalsoapply tocustoms duties ofafiscal nature, except asprovided forinProtocol C.
Article 6
Customs duties onexports andcharges having equivalent effect
1. Nonewcustoms dutyonexports orcharge having equivalent effect shallbeintroduced intrade
between theEFTA States andLatvia.
2. TheEFTA States shallabolish onthedateofentry intoforce ofthisAgreement allcustoms
duties onexports andanycharges having equivalent effect.
3. Latvia shallabolish onthedateofentry intoforce ofthisAgreement allcustoms duties on
exports andanycharges having equivalent effect, except asprovided forinAnnex III,which shall
beabolished byLatvia atthelatest attheendof1998.
Article 7
Quantitative restrictions onimports orexports
andmeasures having equivalent effect
1. Nonewquantitative restriction onimports orexports andmeasures having equivalent effect
shallbeintroduced intrade between theEFTA States andLatvia.
2. TheEFTA States shallabolish onthedateofentry intoforce ofthisAgreement quantitative
restrictions onimports orexports andmeasures having equivalent effect, except asprovided forin
Annex IV.
3. Latvia shallabolish onthedateofentry intoforceofthisAgreement allquantitative restrictions
onimports orexports andmeasures having equivalent effect.
Article 8
General exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified ongrounds ofpublic morality, public policy orpublic security; theprotection of
health andlifeofhumans, animals orplants andtheenvironment; theprotection ofnational treasures
possessing artistic, historic orarchaeological value; theprotection ofintellectual property; rulesrelating
togoldorsilver;ortheconservationofexhaustiblenaturalresources,ifsuchmeasuresaremadeeffective
inconjunctionwithrestrictionsondomesticproductionorconsumption.Suchprohibitionsorrestrictions
shallnot,however, constitute ameans ofarbitrary discrimination oradisguised restriction ontrade
between theStates Parties tothisAgreement.WT/REG29/1
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Article 9
State monopolies
1. TheStates Parties tothisAgreement shallensure thatanystatemonopoly ofacommercial
character beadjusted, subject totheprovisions laiddown inProtocol D,sothatnodiscrimination
regarding theconditions under which goods areprocured andmarketed willexistbetween nationals
oftheEFTA States andofLatvia. These goods shallbeprocured andmarketed inaccordance with
commercial considerations.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheStates Parties tothisAgreement, inlaworinfact,either directly orindirectly supervise, determine
orappreciably influence imports orexports between theStates Parties tothisAgreement. These
provisions shalllikewise apply tomonopolies delegated bytheState toother bodies.
Article 10
Technical regulations
1. TheStates Parties tothisAgreement agree:
(a) toholdimmediate consultations intheframework oftheJoint Committee incasea
StateParty considers thatanother State Party hastaken measures which arelikely to
create, orhavecreated, anobstacle totrade, inorder tofindanappropriate solution;
(b) todiscuss intheJointCommittee possibilities toco-operate more closely onmatters
related toremoving obstacles. Thisco-operation maytakeplace infields related to
technical regulations andstandardization aswellastesting andcertification.
2. TheStates Parties tothisAgreement commit themselves tonotify thetechnical regulations in
accordance withtheprovisions oftheWTO Agreement onTechnical Barriers toTrade.
Article 11
Trade inagricultural products
1. TheStatesPartiestothisAgreementdeclaretheirreadinesstofoster,insofarastheiragricultural
policies allow, harmonious development oftrade inagricultural products.
2. Inpursuance ofthisobjective eachindividual EFTA StateandLatvia haveconcluded abilateral
arrangement providing formeasures tofacilitate trade inagricultural products.
3. TheStates Parties tothisAgreement shallapply theirregulations insanitary andphytosanitary
matters inanon-discriminatory fashion andshallnotintroduce anynewmeasures thathavetheeffect
ofunduly obstructing trade.WT/REG29/1
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Article 12
Internal taxation
1. TheStates Parties tothisAgreement shallrefrain fromanymeasure orpractice ofaninternal
fiscal nature establishing, whether directly orindirectly, discrimination between theproducts originating
inanEFTA State orinLatvia.
2. Exporters maynotbenefit fromrepayment ofinternal taxation inexcess oftheamount ofdirect
orindirect taxation imposed onproducts exported totheterritory ofoneoftheStates Parties tothis
Agreement.
Article 13
Payments
1. Payments relating totradebetween anEFTA StateandLatvia andthetransfer ofsuchpayments
totheterritory oftheStateParty tothisAgreement where thecreditor resides, shallbefreefromany
restrictions. Payments between theParties shallbeeffected infreely convertible currencies, unless
otherwise agreed byindividual companies inindividual cases.
2. TheStates Parties tothisAgreement shallrefrain fromanycurrency exchange oradministrative
restrictionsonthegrant,repaymentoracceptanceofshortandmedium-termcreditscoveringcommercial
transactions inwhich aresident participates.
Article 14
Public procurement
1. TheStateParties tothisAgreement consider theeffective liberalization oftheirrespective public
procurement markets onthebasis ofnon-discrimination andreciprocity, inparticular onthebasis of
theAgreement onGovernment Procurement (GPA) atAnnex IVtotheAgreement Establishing the
WTO, asanintegral objective ofthisAgreement.
2. Tothiseffect, theParties shall, within oneyearaftertheentry intoforce ofthisAgreement,
elaborate ruleswithin theframework oftheJointCommittee withaviewtoensure suchaliberalization.
3. TheStatesPartiestothisAgreementconcernedshallendeavourtoaccedetotheWTOAgreement
onGovernment Procurement.
Article 15
Protection ofintellectual property
1. TheStates Parties tothisAgreement shall grant andensure adequate, effective andnon-
discriminatory protection ofintellectual property rights, including measures fortheenforcement of
suchrights against infringement thereof, counterfeiting andpiracy. Particular obligations oftheStates
Parties tothisAgreement arecontained inAnnex V.WT/REG29/1
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2. Inaccordance withthesubstantive provisions oftheTRIPS Agreement, inparticular Articles
4and5thereof, theStates Parties tothisAgreement shallnotgranttreatment lessfavourable tonationals
ofeachother thanthataccorded tonationals ofanyother State. Inaccordance withArticle 4,paragraph
(d)oftheTRIPS Agreement, anyadvantage, favour, privilege orimmunity deriving frominternational
agreements inforce foraStateParty tothisAgreement attheentry intoforce ofthisAgreement and
notified totheother States Parties atthelatest sixmonths aftertheentry intoforce ofthisAgreement,
shallbeexempted fromthisobligation, provided thatitdoesnotconstitute anarbitrary orunjustifiable
discrimination ofnationals oftheother States Parties.
3. Twoormore States Parties tothisAgreement mayconclude further agreements exceeding the
requirements ofthisAgreement, provided thatsuchagreements shallbeopentoallother States Parties
tothisAgreement onterms equivalent tothose under theagreements andthattheyshallbeready to
enter intogood faithnegotiations tothisend.
4. TheStates Parties tothisAgreement agree, uponrequest ofanEFTA StateorLatvia, toreview
theprovisions ontheprotection ofintellectual property rights contained inthepresent Article andin
Annex V,withaviewtofurther improve levels ofprotection andtoavoid orremedy tradedistortions
caused byactual levels ofprotection ofintellectual property rights.
Article 16
Rules ofcompetition concerning undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofarasthey
mayaffect trade between anEFTA State andLatvia:
(a) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;
(b) abuse byoneormore undertakings ofadominant position intheterritories oftheStates
Parties tothisAgreement asawhole orinasubstantial partthereof.
2. Theprovisions ofparagraph 1shallalsoapply totheactivities ofpublic undertakings, and
undertakings forwhich theStates Parties tothisAgreement grant special orexclusive rights, inso
farastheapplication ofthese provisions doesnotobstruct theperformance, inlaworinfact,ofthe
particular public tasks assigned tothem.
3. IfaState Party tothisAgreement considers thatagiven practice isincompatible withthe
provisions ofparagraphs 1and2,itmaytakeappropriate measures under theconditions andin
accordance withtheprocedures laiddown inArticle 24(Procedure fortheapplication ofsafeguard
measures).
Article 17
State aid
1. Anyaidgranted byaState Party tothisAgreement orthrough State resources inanyform
whatsoever which distorts orthreatens todistort competition byfavouring certain undertakings orthe
production ofcertain goods shall, insofarasitmayaffect trade between anEFTA StateandLatvia,
beincompatible withtheproper functioning ofthisAgreement.WT/REG29/1
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2. Anypractices contrary toparagraph 1should beassessed onthebasis ofthecriteria setout
inAnnex VI.
3. TheStates Parties tothisAgreement shall ensure transparency ofstate aidmeasures by
exchanging information asprovided inAnnex VII.
4. IfaState Party tothisAgreement considers thatagiven practice isincompatible withthe
provisions ofparagraph 1,itmaytakeappropriate measures under theconditions andinaccordance
withtheprocedures laiddown inArticle 24(Procedure fortheapplication ofsafeguard measures).
Article 18
Dumping
IfanEFTA Statefindsthatdumping within themeaning ofArticle VIoftheGeneral Agreement
onTariffs andTrade 1994 istaking place intrade withLatvia, orifLatvia findsthatdumping within
thismeaning istaking placeintradewithanEFTA State, theStateParty concerned maytakeappropriate
measures against thispractice inaccordance withtheAgreement onImplementation ofArticle VIof
theGeneral Agreement onTariffs andTrade 1994 andwiththeprocedure laiddown inArticle 24
(Procedure fortheapplication ofsafeguard measures).
Article 19
Emergency action onimports ofparticular products
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause, orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products inthe
territory oftheimporting State Party tothisAgreement, or
(b) serious disturbances inanyrelated sector oftheeconomy ordifficulties which could
bring about serious deterioration intheeconomic situation ofaregion,
theStateParty concerned maytakeappropriate measures under theconditions andinaccordance with
theprocedure laiddown inArticle 24(Procedure fortheapplication ofsafeguard measures).
Article 20
Structural adjustment
1. Exceptional measures oflimited duration which derogate from theprovisions ofArticle 4
(Customs duties onimports andcharges having equivalent effect) maybetaken byLatvia 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.WT/REG29/1
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3. After theintroduction ofthesemeasures, thetotaladvalorem customs duties applicable inLatvia
toproducts originating intheEFTA States maynotexceed 25%andshallmaintain anelement of
preference forproducts originating intheEFTA States. They maynotexceed customs duties levied
onimports toLatvia ofsimilar goods fromanyother country. Thetotalvalue ofimports oftheproducts
which aresubject tothese measures maynotexceed 15%oftotalimports ofindustrial products from
theEFTA States asdefined inArticle 2(a)during thelastyearforwhich statistics areavailable.
4. These measures shallbeapplied foraperiod notexceeding twoyears unless alonger duration
isauthorized bytheJointCommittee. They shallcease toapply atthelatest fouryears aftertheentry
intoforce ofthisAgreement andnosuchmeasures canbeintroduced inrespect ofaproduct ifmore
thanthree years haveelapsed since theentry intoforce ofthisAgreement.
5. Latvia shallinform theJoint Committee ofanyexceptional measures itintends totakeand,
attherequest oftheEFTA States, consultations shallbeheldintheJointCommittee onsuchmeasures
andthesectors towhich theyapply before theyareapplied. When taking suchmeasures Latvia shall
provide theJointCommittee withaschedule fortheelimination ofthecustoms duties introduced under
thisArticle. Thisschedule shallprovide foraphasing outofthese duties atequal annual ratesstarting
atthelatest twoyears aftertheirintroduction. TheJointCommittee maydecide onadifferent schedule.
Article 21
Re-export andserious shortage
Where compliance withtheprovisions ofArticles 6(Customs duties onexports andcharges
having equivalent effect) and7(Quantitative restrictions onimports orexports andmeasures having
equivalent effect) leads to:
(a) re-export towards athird country against which theexporting State Party tothis
Agreement maintains fortheproduct concerned quantitative export restrictions, export
duties ormeasures orcharges having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting StateParty
tothisAgreement;
andwhere thesituations referred toabove giveriseorarelikely togiverisetomajor difficulties for
theexporting State Party, thatState Party maytakeappropriate measures under theconditions and
inaccordance withtheprocedures laiddown inArticle 24(Procedure fortheapplication ofsafeguard
measures). Themeasures shallbenon-discriminatory andbeeliminated when conditions nolonger
justify theirmaintenance.
Article 22
Balance ofpayments difficulties
1. TheStates Parties tothisAgreement shallendeavour toavoid theimposition ofrestrictive
measures forbalance ofpayments purposes.
2. Where anEFTA StateorLatvia isinserious balance ofpayments difficulties, orunder imminent
threat thereof, theEFTA StateorLatvia, asthecasemaybe,may, inaccordance withtheconditions
established under theGeneral Agreement onTariffs andTrade 1994 andtheUnderstanding onthe
Balance-of-Payments Provisions oftheGeneral Agreement onTariffs andTrade 1994, adopt tradeWT/REG29/1
Page10
restrictive measures, which shallbeoflimited duration andnon-discriminatory, andmaynotgobeyond
whatisnecessary toremedy thebalance ofpayments situation. Preference shallbegiven toprice-based
measures which shallbeprogressively relaxed asbalance ofpayments conditions improve andeliminated
when conditions nolonger justify theirmaintenance. TheEFTA StateorLatvia, asthecasemaybe,
shallinform theother States Parties tothisAgreement andtheJointCommittee forthwith, ifpossible,
prior totheirintroduction andshallprovide atimeschedule fortheirremoval. TheJointCommittee
shall, upontherequest ofanyother StateParty, examine theneedformaintaining themeasures taken.
Article 23
Arbitration Procedure
1. Disputes between States Parties tothisAgreement, relating totheinterpretation ofrights and
obligations oftheStates Parties tothisAgreement, which havenotbeensettled through consultation
orintheJointCommittee within sixmonths, maybereferred toarbitration byanyStateparty tothe
dispute bymeans ofawritten notification addressed totheother State party tothedispute. Acopy
ofthisnotification shallbecommunicated toallStates Parties tothisAgreement.
2. Theconstitution andfunctioning ofthearbitral tribunal isgoverned byAnnex VIII.
Article 24
Procedure fortheapplication ofsafeguard measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthepresent Article, theStates Parties tothisAgreement shallendeavour tosolve any
differences between them through direct consultations, andinform theother States Parties tothis
Agreement thereof.
2. Without prejudice toparagraph 6ofthepresent Article, aStateParty which considers resorting
tosafeguard measures shallpromptly notify theother States Parties andtheJointCommittee thereof
andsupply allrelevant information. Consultations between theStates Parties tothisAgreement shall
takeplace without delay intheJointCommittee withaviewtofinding acommonly acceptable solution.
3. (a) Asregards Articles 16(Rules ofcompetition concerning undertakings) and17(State
aid),theStates Parties concerned shallgivetotheJointCommittee alltheassistance
required inorder toexamine thecaseand,where appropriate, eliminate thepractice
objected to.IftheState Party inquestion failstoputanendtothepractice objected
towithin theperiod fixed bytheJoint Committee oriftheJoint Committee failsto
reach anagreement afterconsultations, orafterthirty daysfollowing referral forsuch
consultations, theState Party concerned mayadopt theappropriate measures todeal
withthedifficulties resulting from thepractice inquestion.
(b) Asregards Articles 18(Dumping), 19(Emergency action onimports ofparticular
products) and21(Re-export andserious shortage), theJointCommittee shallexamine
thecaseorthesituation andmaytakeanydecision needed toputanendtothe
difficulties notified bytheState Party concerned. Intheabsence ofsuchadecision
within thirty daysofthematter being referred totheJointCommittee, theStateParty
concerned mayadopt themeasures necessary inorder toremedy thesituation.WT/REG29/1
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(c) Asregards Article 30(Fulfilment ofobligations), theStateParty concerned shallsupply
theJointCommittee withallrelevant information required forathorough examination
ofthesituation withaviewtoseeking acommonly acceptable solution. IftheJoint
Committee failstoreach suchasolution orifaperiod ofthree months haselapsed
fromthedateofnotification, theStateParty concerned maytakeappropriate measures.
4. ThesafeguardmeasurestakenshallbenotifiedimmediatelytotheStatesPartiestothisAgreement
andtotheJointCommittee. They shallberestricted withregard totheirextent andtotheirduration
towhatisstrictly necessary inorder torectify thesituation giving risetotheirapplication andshall
notbeinexcess oftheinjury caused bythepractice orthedifficulty inquestion. Priority shallbegiven
tosuchmeasures thatwillleastdisturb thefunctioning ofthisAgreement. Themeasures taken byLatvia
against anaction oranomission ofanEFTA State mayonlyaffect thetrade withthatState. The
measures taken against anaction oromission ofLatvia maybeonlytaken bythatorthose EFTA States
thetrade ofwhich isaffected bythesaidaction oromission.
5. Thesafeguard measures taken shall betheobject ofregular consultations within theJoint
Committee withaviewtotheirrelaxation, substitution orabolition, when conditions nolonger justify
theirmaintenance.
6. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theStateParty concerned may,inthecases ofArticles 18(Dumping), 19(Emergency action onimports
ofparticular products) and21(Re-export andserious shortage) andincases ofstateaidhaving adirect
andimmediate incidence ontrade between theStates Parties, apply forthwith theprecautionary and
provisional measures strictly necessary toremedy thesituation. Themeasures shallbenotified without
delay andconsultations between theStates Parties tothisAgreement shalltakeplace assoonaspossible
within theJoint Committee.
Article 25
Security exceptions
NothinginthisAgreementshallpreventaStatePartytothisAgreementfromtakinganymeasures
which itconsiders necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;
(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.WT/REG29/1
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Article 26
TheJoint Committee
1. TheimplementationofthisAgreementshallbesupervisedandadministeredbyaJointCommittee
which shallsimultaneously actunder theDeclaration signed inGeneva inDecember 1991.
2. Forthepurpose oftheproper implementation ofthisAgreement, theStates Parties tothis
Agreement shallexchange information and,attherequest ofanyStateParty tothisAgreement, shall
holdconsultations within theJoint Committee. TheJoint Committee shall keepunder review the
possibility offurther removal oftheobstacles totrade between theEFTA States andLatvia.
3. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theJoint Committee maymake recommendations.
Article 27
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butnormally onceayear. Each State Party tothisAgreement mayrequest thatameeting
beheld.
2. TheJoint Committee shallactbycommon agreement.
3. Ifarepresentative intheJoint Committee ofaState Party tothisAgreement hasaccepted a
decision subject tothefulfilment ofconstitutional requirements, thedecision shallenter intoforce,
ifnolaterdateiscontained therein, onthedatethelifting ofthereservation isnotified.
4. Forthepurpose ofthisAgreement theJointCommittee shalladopt itsrulesofprocedure which
shall, interalia,contain provisions forconvening meetings andforthedesignation oftheChairman
andhis/her termofoffice.
5. TheJoint Committee maydecide tosetupsuchsub-committees andworking parties asit
considers necessary toassist itinaccomplishing itstasks.
Article 28
Evolutionary clause
1. TheStates Parties tothisAgreement undertake toexamine, inlightofanyrelevant factor, the
possibility offurther developing anddeepening theco-operation under thisAgreement andtoextend
ittoareas notcovered therein. TheStates Parties tothisAgreement mayinstruct theJointCommittee
toexamine thispossibility and,where appropriate, tomake recommendations tothem, particularly
withaviewtoopening upnegotiations.
2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
orapproval bytheStates Parties tothisAgreement inaccordance withtheirownprocedures.WT/REG29/1
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Article 29
Services andInvestment
1. TheStates Parties tothisAgreement recognize thegrowing importance ofcertain areas, such
asservices andinvestments. Intheirefforts togradually develop andbroaden theirco-operation, in
particular inthecontext ofEuropean integration, theywillco-operate withtheaimofachieving agradual
liberalization andmutual opening ofmarkets forinvestments andtradeinservices, taking intoaccount
theresults oftheUruguay Round aswellasanyrelevant work under theauspices oftheWTO. They
willendeavour toaccord toeachothers 'operators treatment nolessfavourable thanthataccorded to
other foreign operators intheirterritories oncondition thatabalance ofrights andobligations aswell
asabalance ofoperating conditions existbetween theindividual States Parties tothisAgreement.
2. TheEFTA States andLatvia willdiscuss thisco-operation intheJoint Committee withthe
aimofdeveloping anddeepening theirrelations under thisAgreement.
Article 30
Fulfilment ofobligations
1. TheStates Parties tothisAgreement shalltakeallnecessary measures toensure theachievement
oftheobjectives ofthisAgreement andthefulfilment oftheirobligations under thisAgreement.
2. IfanEFTA Stateconsiders thatLatvia has,orifLatvia considers thatanEFTA Statehasfailed
tofulfilanobligation under thisAgreement, theStateParty concerned maytaketheappropriate measures
under theconditions andinaccordance withtheprocedures laiddown inArticle 24(Procedure for
theapplication ofsafeguard measures).
Article 31
Annexes andProtocols
TheAnnexes andtheProtocols tothisAgreement areanintegral partofit.TheJointCommittee
maydecide toamend theAnnexes andProtocols.
Article 32
Trade relations governed bythisAgreement
1. ThisAgreement applies totraderelations between, ontheoneside,theindividual EFTA States
and,ontheother side,Latvia, butnottothetrade relations between individual EFTA States, except
ifotherwise provided forinthisAgreement.
2. TheParties totheFreeTrade Agreement between Norway andLatvia andtotheFreeTrade
Agreement between Switzerland andLatvia agree thattheseagreements willbeterminated attheentry
intoforce ofthisAgreement.WT/REG29/1
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Article 33
Territorial application
ThisAgreement shallapply totheterritories oftheStates Parties tothisAgreement.
Article 34
Customs unions, freetrade areas andfrontier trade
1. ThisAgreement shallnotprevent themaintenance orestablishment ofcustoms unions, free
trade areas orarrangements forfrontier trade totheextent thatthese donotnegatively affect thetrade
regime and,inparticular, theprovisions concerning rulesoforigin provided forbythisAgreement.
2. Consultations between theParties shall takeplace within theJoint Committee concerning
agreements establishing suchcustoms unions orfreetradeareas and,where requested, onother major
issues related totheirrespective trade policies withthirdcountries.
Article 35
Amendments
AmendmentstothisAgreementotherthanthosereferredtoinArticle31(AnnexesandProtocols)
which areapproved bytheJointCommittee shallbesubmitted totheStates Parties tothisAgreement
foracceptance andshallenter intoforce ifaccepted byalltheStates Parties tothisAgreement. The
instruments ofacceptance shallbedeposited withtheDepositary.
Article 36
Accession
1. AnyState, Member oftheEuropean FreeTrade Association, mayaccede tothisAgreement,
provided thattheJointCommittee decides toapprove itsaccession, tobenegotiated between theacceding
StateandtheStates Parties concerned, onsuchterms andconditions asmaybesetoutinthatdecision.
Theinstrument ofaccession shallbedeposited withtheDepositary.
2. Inrelation toanacceding State, thisAgreement shallenter intoforce onthefirstdayofthe
thirdmonth following thedeposit ofitsinstrument ofaccession.
Article 37
Withdrawal andexpiration
1. EachStateParty tothisAgreement maywithdraw therefrom bymeans ofawritten notification
totheDepositary. Thewithdrawal shalltakeeffect sixmonths afterthedateonwhich thenotification
isreceived bytheDepositary.
2. IfLatvia withdraws, thisAgreement shallexpire attheendofthenotice period, andifallEFTA
States withdraw itshallexpire attheendofthelatest notice period.WT/REG29/1
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3. AnyEFTA Member State which withdraws from theConvention establishing theEuropean
FreeTrade Association shallipsofacto onthesame dayasthewithdrawal takes effect cease tobea
State Party tothisAgreement.
Article 38
Entry intoforce
1. ThisAgreement shallenterintoforceon1June1996inrelation tothose Signatory States which
bythenhavedeposited theirinstruments ofratification oracceptance withtheDepositary, provided
thatLatvia isamong theStates thathavedeposited theirinstruments ofratification oracceptance.
2. Inrelation toaSignatory State depositing itsinstrument ofratification oracceptance after1
June1996, thisAgreement shallenter intoforce onthefirstdayofthesecond month following the
deposit ofitsinstrument, provided thatinrelation toLatvia thisAgreement enters intoforce atthe
latest onthesame date.
3. AnySignatory Statemayalready atthetimeofsignature declare that,during aninitial phase,
itshallapply thisAgreement provisionally, ifthisAgreement cannot enter intoforce inrelation to
thatState by1June1996. ForanEFTA State provisional application isonlypossible provided that
inrelation toLatvia thisAgreement hasentered intoforce, orthatLatvia isapplying thisAgreement
provisionally.
Article 39
Depositary
TheGovernment ofNorway, acting asDepositary, shallnotify allStates thathavesigned or
acceded tothisAgreement ofthedeposit ofanyinstrument ofratification, orprovisional application,
acceptance oraccession, aswellasoftheentry intoforce ofthisAgreement, ofitsexpiry orofany
withdrawal therefrom.WT/REG29/1
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INWITNESS WHEREOF theundersigned plenipotentiaries, being dulyauthorized thereto, havesigned
thepresent Agreement.
DONE atZermatt, this7thdayofDecember 1995, inasingle authentic copyintheEnglish language
which shallbedeposited withtheGovernment ofNorway. TheDepositary shalltransmit certified copies
toallSignatory States, andStates acceding tothisAgreement.
FortheRepublic ofIceland FortheRepublic ofLatvia
.............................................. ..............................................
ForthePrincipality ofLiechtenstein
...............................................
FortheKingdom ofNorway
................................................
FortheSwiss Confederation
................................................