WORLD TRADE
ORGANIZATIONWT/REG78/1
18 August 1999
(99-3471)
Committee on Regional Trade Agreements Original:  English
AGREEMENT BETWEEN THE REPUBLIC OF POLAND, AND THE
GOVERNMENT OF DENMARK AND THE
HOME GOVERNMENT OF THE FAROE ISLANDS
The following text reproduces the Agreement between the Republic of Poland and the
Government of Denmark and the Home  Government of the Faroe Islands.1
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AGREEMENT BETWEEN THE REPUBLIC OF POLAND, AND THE
GOVERNMENT OF DENMARK AND THE
HOME GOVERNMENTOF THE FAROE ISLANDS
The Republic of Poland , of the one part, and the Kingdom of Denmark and the Faroe Islands ,
of the other part,
Hereinafter  referred to as the Contracting Parties,
Recalling  the status of the Faroe Islands as a self-governing part of Denmark;
Recalling  respect of GATT/WTO provisions by the Faroe Islands within Denmark's
obligations;
Considering  the vital importance for the Faroe Islands of fisheries, which constitute their
essential economic activity, fish and other marine products being their main export articles;
Considering  the importance of fisheries for Poland;
Desiring  to consolidate and to extend the economic relations existing between Poland and the
Faroe Islands and to ensure, with due regard for fair conditions of competition, the harmoniousdevelopment of their mutual trade in the context of European co-operation;
Resolved  to this end to eliminate progressively the obstacles to substantially all their trade, in
accordance with the provisions of the General Agreement on Tariffs and Trade (GATT) 1994
concerning the establishment of free-trade areas, as well as the Agreement establishing theWorld Trade Organization;
                                                     
1The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).WT/REG78/1
Page 2
Declaring  their readiness to examine, in the light of any relevant factor, and in particular of
developments in European co-operation, the possibility of developing and deepening their relations in
order to extend them to fields not covered by this Agreement;
Considering  that, in order to provide for more flexibility, it is appropriate to empower a Joint
Committee to decide on amendments to the provisions of this Agreement;
Considering , in pursuit of these objectives, that no provisions of this Agreement may be
interpreted as exempting the Contracting Parties from their obligations under other international
agreements.
Have agreed as follows:
Article 1
Objectives
1. The Contracting Parties shall gradually establish, in a transitional period lasting at the latest
until the 31st December 2001, a free-trade area, comprising the Republic of Poland and the
Faroe Islands, in accordance with the provisions of the present Agreement and in conformity with
those of the GATT 1994.
2. The objectives of this Agreement are:
(a) to promote, through the expansion of re ciprocal trade, the harmonious development
of the economic relations between the Contracting Parties and thus to foster the
advance of their economic activity, the improvement of living and employmentconditions, and increased productivity and financial stability;
(b) to provide fair conditions of competitio n for trade between the Contracting Parties;
(c) to contribute in this way, by the removal of barriers to trade to the harmonious
development and expansion of world trade.
CHAPTER 1
Article 2
Scope
This Agreement shall apply to products originating in Poland or the Faroe Islands:
(a) which fall within Chapters 25 to 97 of the Harmonised Commodity Description and
Coding System, other than those listed in Annex I to the Agreement on Agriculture
within the framework of the WTO;
(b) which are specified in Protocols 1, 2 and 3 to this Agreement with due regard to the
arrangements provided for in those Protocols.WT/REG78/1
Page 3
Industrial Products
Article 3
Customs duties on imports and exports and charges having equivalent effect
1. No new customs duties on imports and exports or charges having equivalent effect shall be
introduced in trade between the Contracting Parties.
2. The Contracting Parties shall abolish all customs duties or charges having equivalent effect on
exports in their mutual trade on the date of entry into force of this Agreement.
3. The Faroe Islands shall abolish all customs duties or charges having equivalent effect on
imports from Poland on the entry into force of this Agreement.
4. Poland, with exception of products listed in Annex II, shall abolish all customs duties and
charges having equivalent effect on imports of industrial products from the Faroe Islands on entry intoforce of this Agreement.
Article 4
Fiscal duties
The provisions concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature.
Article 5
Quantitative restrictions on imports and exports and measures having equivalent effect
1. No new quantitative restrictions on imports and exports or measures having equivalent effect
shall be introduced in trade between the Contracting Parties.
2. All quantitative restrictions on imports and exports and measures having equivalent effect
shall be abolished on the date of entry into forc e of this Agreement, except as provided for in
Annex III.
CHAPTER II
Agricultural Products
Article 6
1. The provisions of this Chapter shall apply to agricultural products originating in Poland or in
the Faroe Islands.
2. The term "agricultural products" means the products listed in Chapters 1 to 24 of the
Harmonised Commodity Description and Coding Syst em and the products listed in Annex I to the
Agreement on Agriculture within the framework of WTO but excluding fish and other marine
products.WT/REG78/1
Page 4
Article 7
Exchange of concessions
1. The Contracting Parties shall grant each other concessions specified in the Protocols 1 and 2
to this Agreement in accordance with the provisions laid down in this Chapter and Protocols.
2. The provisions of this Chapter shall not re strict in any way pursuance of the respective
agricultural policies of the Contracting Parties or taking of any measures under such policies,
including implementation of the respective provisions of the Agreement on Agriculture within the
framework of WTO.
3. The Contracting Parties shall apply their rules in  veterinary, health and plant health matters in
a non-discriminatory way and shall not introduce any new measures that have the effect of unduly
obstructing trade.
Article 8
Special safeguards
Notwithstanding other provisions of this Agreement and in particular Article 21, given the
particular sensitivity of the agricultural products, if imports of products originating in a ContractingParty, which are subject to concessions granted under this Agreement, cause series disturbance to the
markets of the other Contracting Party, the Contracting Party concerned shall immediately enter into
consultations to find the appropriate solution.  Pending such solution, the Contracting Party concerned
may take measures it deems necessary.
CHAPTER III
Fish and other Marine Products
Article 9
1. The provisions of this Chapter shall apply to fish and other marine products originating in
Poland or in the Faroe Islands.
2. Protocol 3 to this Agreement lays down the tariff treatment and arrangements applicable to
fish and other marine products.
CHAPTER IV
General Provisions
Article 10
Rules or origin and administrative co-operation
1. Protocol 4 to this Agreement lays down the rules of origin and related methods of
administrative co-operation.WT/REG78/1
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2. The Parties shall take appropriate measures, including regular reviews by the Joint Committee
and arrangements for administrative co-operation.
Article 11
Internal taxation
1. The Contracting Parties shall refrain from any measure or practice of an internal fiscal nature
which, whether directly or indirectly, discriminates between the products of one Contracting Party and
like products originating in the other Contracting Party.
2. Products exported to the territory of one of the Contracting Parties may not benefit from
repayment of internal taxation in excess of the amounts of direct or indirect taxation imposed on them.
Article 12
Payments
Payments relating to trade in goods and the transf er of such payments to the territory of the
Contracting Party in which the creditor is resident shall be free from any restrictions.
Article 13
General exceptions
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on the grounds of public morality, public policy or public security; the protection ofhealth and life of humans, animals or plants; the protection of national treasures of artistic, historic or
archaeological value; the protection of intellectual, industrial and commercial property or rules
relating to gold and silver or to the conservation of exhaustible natural resources if such measures are
made effective in conjunction with restrictions on domestic production or consumption.  Such
prohibitions or restrictions shall not, however, cons titute a means of arbitrary discrimination or a
disguised restriction on trade between the Contracting Parties.
Article 14
Security exceptions
1. Nothing in this Agreement shall prevent a Co ntracting Party from taking any measure, which
it considers necessary:
(a) to prevent the disclosure of information contrary to its essential security interests;(b) for the protection of its essential security interests or for the implementation of
international obligations or national policies:
(i) relating to the traffic in arms, ammunition and implements of war, provided
that such measures do not impair the conditions of competition in respect of
products not intended for specifically military purposes, and to such traffic inother goods, materials and services as is carried on directly or indirectly for
the purpose of supplying a military establishment; orWT/REG78/1
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(ii) relating to the non-proliferation of biological and chemical weapons, nuclear
weapons or other nuclear explosive devices; or
(iii) taken in time of war or other serious international tension.
Article 15
Public monopolies
1. The Contracting Parties shall progressively adjust any State monopoly of commercial
character so as to ensure that no discrimination regarding the conditions under which goods are
procured and marketed exists between nationals of the Contracting Parties.  The Joint Committee willbe informed about the measures adopted to implement this objective.
2. The provisions of this Article shall apply to any body through which the competent
authorities of the Contracting Parties, in law or in fact, either directly or indirectly, supervise,
determine or appreciably influence imports or exports between the Contracting Parties.  Theseprovisions shall likewise apply to monopolies delegated by a Contracting Party to other bodies.
Article 16
Rules of competition concerning undertakings
1. The following are incompatible with the proper functioning of this Agreement in so far as
they may affect trade between the Contracting Parties:
(a) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the
Contracting Parties as a whole or in a substantial part thereof;
(c) any public aid which distorts or threatens to distort competition by favouring certain
undertakings or the production of certain goods.
2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public
undertakings to which the Contracting Parties grant special or exclusive rights.  Undertakingsentrusted with the operation of services of general economic interest or having the character of a
revenue-producing monopoly, shall be subject to provisions of paragraph 1 in so far as the application
of these provisions does not obstruct the performance, in law or in fact, of the particular public tasks
assigned to them.
3. If a Contracting Party considers that a given practice is incompatible with paragraphs 1 and 2
and if such practice causes or threatens to cause serious prejudice to the interest of that Party or
material injury to its domestic industry, it may take appropriate measures under the conditions and in
accordance with the procedure laid down in Article 26.WT/REG78/1
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Article 17
Protection of intellectual property
1. Each Contracting Party shall recognise the copyright and neighbouring rights to works to
which citizens and institutions of the other Contracting Party, as well as their legal successors, are
entitled, independently of the place of their publication.  Each Contracting Party shall ensure the
protection of such rights on the same conditions as those created by its internal legislation with
respect to its own citizens and institutions.  Furthermore, the Contracting Parties undertake to respect
mutually the copyright and neighbouring rights of their citizens and institutions in accordance with
the international standards.  In particular, the C ontracting Parties undertake to respect mutually the
standards of protection provided for in the Bern and Rome Conventions.
2. The Contracting Parties shall grant and ensure the protection of intellectual property rights on
a non-discriminatory basis, including measures for granting and enforcing such rights.  The
Contracting Parties confirm their will to respect  obligations and requirements arising from the
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as well as otheragreements, which are signed by both Contracting Parties, in particular the Paris Convention for the
protection of industrial property (Stockholm Act, 1976).
3. For the purposes of this Agreement "intellectual property protection" includes, in particular,
protection of copyright, comprisi ng computer programs and databases, and neighbouring rights, trade
marks, geographical indications, industrial designs, patents, topographies of integrated circuits, as
well as undisclosed information on know-how.
4. The Contracting Parties may conclude further agreements exceeding the requirements of this
Agreement.
5. The Contracting Parties shall co-operate in matters of industrial property protection.  They
shall hold, upon request of any Contracting Party, expert consultations on these matters, in particular
on activities relating to the existing or to future international conventions on harmonization,
administration and enforcement of intellectual property and on activities in international
organizations, such as the World Trade Organization and the World Intellectual Property
Organization, as well as on relations of the Contracting Parties with any third country on mattersconcerning intellectual property.
Article 18
Public procurement
1. The Contracting Parties consider the liberalization of their respective public procurement
markets as an objective of this Agreement.
2. The Contracting Parties shall progressively adjust their respective rules, conditions and
practices concerning public procurement with a view to grant suppliers of the other Contracting Party,
at the latest by the 31st December 2002, access to contract award procedures on their respective public
procurement markets according to the provisions  of the Agreement on Government Procurement in
Annex IV to the Agreement establishing the World Trade Organization.
3. The Joint Committee shall examine developments related to the achievement of the objectives
of this Article and may recommend practical modalities of implementing the provisions of
paragraph 2 so as to ensure free access, transparency and full balance of rights and obligations.WT/REG78/1
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4. During the examination referred to in paragraph 3, the Joint Committee may consider,
especially in the light of international developmen ts and regulations in this area, the possibility of
extending the coverage and/or the degree of the market opening provided for in paragraph 2.
5. The Contracting Parties shall endeavour to accede to the relevant Agreements negotiated
under the auspices of the General Agreement on Tariffs and Trade 1994 and the Agreement
establishing the World Trade Organization.
Article 19
Structural adjustments
1. Exceptional measures of limited duration which derogate from the provisions of Article 3
may be taken by Poland in the form of increased customs duties.
2. Those measures may only concern infant industries, or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce importantsocial problems.
3. They shall cease to apply at the latest at the expiration of the transitional period.4. Poland shall inform the Faroe Islands of any exceptional measures it intends to take, and, at
the request of the Faroe Islands, consultations shall be held in the Joint Committee on such measures
and the sectors to which they apply.
Article 20
Dumping
If one of the Contracting Parties finds that dumping within the meaning of Article VI of the
General Agreement on Tariffs and Trade 1994 is taking place in trade relations governed by this
Agreement, it may take appropriate measures against that practice in accordance with Article VI of
the General Agreement on Tariffs and Trade 1994 and the WTO Agreement on Implementation of
Article VI of the General Agreement on Tariffs and Trade 1994 under the conditions and inaccordance with the procedures laid down in Article 26.
Article 21
General safeguards
1. Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause:
(a) serious injury to domestic producers of like or directly competitive products in the
territory of the importing Contracting Party; or
(b) serious disturbances in any related sector of the economy or difficulties which could
bring about serious deterioration in the economic situation of a region;
the Contracting Party concerned may take appropriate measures under the conditions and in
accordance with the procedures laid down in Article 26.WT/REG78/1
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Article 22
Re-export and serious shortage
1. Where compliance with the provisions of Article 3 and 5 leads to:
(a) re-export towards a third country against which the exporting Contracting Party
maintains, for the product concerned, quantitative export restrictions, export duties or
measures or charges having equivalent effect; or
(b) a serious shortage, or threat thereof, of a product essential to the exporting
Contracting Party,
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for
the exporting Contracting Party, that Contracting Party may take appropriate measures under the
conditions and in accordance with the procedures laid down in Article 26.
Article 23
Balance-of-payments difficulties
1. The Contracting Parties shall endeavour to avoid the imposition of restrictive measures
including measures relating to imports for balance-of-payments purposes.
2. Where one of the Contracting Parties is in serious balance-of-payments difficulties, or under
imminent threat thereof, the Contracting Party concerned may, in accordance with the relevant
provisions of the General Agreement on Tariffs and Trade 1994, adopt restrictive measures, includingmeasures related to imports, which shall be of limited duration and may not go beyond what is
necessary to remedy the balance-of-payments situation.  The measures shall be progressively relaxed
as balance-of-payments conditions improve and they shall be eliminated when conditions no longer
justify their maintenance.  The Contracting Party concerned shall inform the other Contracting Party
forthwith of their introduction and, whenever practicable, of a schedule for their removal.
Article 24
State aid
1. Any aid granted by a State being a Contracting Party or through state resources in any form
whatever, which distorts or threatens to distort competition by favouring certain undertakings or theproduction of certain goods shall, in so far as it may affect trade between the Contracting Parties, be
incompatible with the proper functioning of this Agreement.
2. The provisions of paragraph 1 shall not apply to products referred to in Chapters II and III.
3. The Joint Committee shall, within three years fro m entry into force of this Agreements adopt
the criteria on the basis of which the practices contrary to paragraph 1 shall be assessed, as well as the
rules for their implementation.
4. The Contracting Parties shall ensure transparency in the area of state aid, inter alia , by
reporting annually to each other on the total amount and the distribution of the aid given and by
providing to the other Contracting Party, upon request, information on aid schemes and on particular
individual cases of state aid.WT/REG78/1
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5. If a Contracting Party considers that a particular practice:
(a) is incompatible with the terms of paragraph 1, and is not adequately dealt with under
the implementing rules referred to in paragraph 3; or
(b) in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interest of that Contracting Party or material injury to its domestic
industry,
it may take appropriate measures under the conditions of and in accordance with the provisions of
Article 26.  Such  appropriate measures may only be taken in conformity with the procedures and
under the conditions of the World Trade Organizati on and any other relevant instrument negotiated
under its auspices which are applicable between the Contracting Parties.
Article 25
Fulfilment of Obligations
1. The Contracting Parties shall take any general or specific measures required to fulfil their
obligations under this Agreement.  They shall see to it that the objectives set out in this Agreement are
attained.
2. If a Contracting Party considers that the other Contracting Party has failed to fulfil an
obligation under this Agreement, the Contracting Party concerned may take appropriate measures in
accordance with the provisions laid down in Article 26.
3. No provision of this Agreement may be interpreted as exempting the Contracting Parties from
their obligations under other international agreements.
Article 26
Procedures for the application of safeguard measures
1. Before initiating the procedures for the application of safeguard measures set out in the
following paragraphs of this Article, the Contract ing Parties shall endeavour to solve any differences
between them through direct consultations.
2. Without prejudice to paragraph 6, the Contracting Party which considers resorting to
safeguard measures shall promptly notify the other Contracting Party thereof and supply all relevantinformation.  Consultations between the Parties shall take place without delay in the Joint Committee
with a view to finding a mutually acceptable solution.
3. For the application of paragraph 2 the following provisions apply:
(a) with regard to Articles 20 and 21, the Joint Committee shall examine the case or the
situation and may take any decision needed to put an end to the difficulties notified by
the Contracting Party concerned.  In the case of the absence of such decision within
thirty days of the matter being referred to the Joint Committee, the Contracting Party
concerned may adopt the appropriate measures to deal with the difficulties resultingfrom the practice in question;WT/REG78/1
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(b) with regard to Article 25, the Contracting Party concerned may take appropriate
measures after the consultations have been concluded or a period of three months has
elapsed from the date of the first notification to the other Contracting Party;
(c) with regard to Articles 16 and 23, the Contracting Party concerned shall give the
Joint Committee all the assistance required in order to examine the case and, where
appropriate, eliminate the practice objected to.  If the Contracting Party in question
fails to put an end to the practice objected to within the period fixed by the
Joint Committee or if the Joint Committee fails to reach an agreement within
thirty days of the matter being referred to it, the Contracting Party concerned may
adopt the appropriate measures to deal with the difficulties resulting from the practice
in question.
4. The safeguard measures taken shall be immediately notified to the other Contracting Party.
They shall be restricted with regard to their extent and to their duration to what is strictly necessary in
order to rectify the situation giving rise to their application and shall not be in excess of the injury
caused by the practice or the difficulty in question.  Priority shall be given to such measures whichwill least disturb the functioning of this Agreement.
5. The safeguard measures taken shall be the subject of periodic consultations within the Joint
Committee with a view to their relaxation as soon as  possible, or abolition when conditions no longer
justify their maintenance.
6. Where exceptional circumstances requiring immediate action make prior examination
impossible. the Contracting Party concerned may, in the cases of Articles 16, 20, 21 and 23, apply
forthwith the provisional measures strictly necessary to remedy the situation.  The measures shall be
notified without delay and consultations between the Contracting Parties shall take place as soon aspossible.
Article 27
Customs unions, free-trade areas and frontier trade
This Agreement shall not prevent the maintenance or establishment of customs unions,
free-trade areas or arrangements for frontier trade, to  the extent that these do not negatively affect the
trade regimes provided for by this Agreement, in particular the provisions concerning rules of origin.
CHAPTER V
Institutional and Final Provisions
Article 28
The Joint Committee
The Joint Committee is hereby established, which shall be responsible for the administration
and proper implementation of this Agreement.  It shall consist of representatives of the Contracting
Parties.WT/REG78/1
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Article 29
Procedures of the Joint Committee
1. For the proper implementation of this Agreement, the Contracting Parties shall, whenever
necessary, exchange information and, at the request of either Contracting Party, hold consultations.
2. For this purpose, the following shall apply:
(a) The Joint Committee may take decisions in cases provided for in this Agreement.  On
other matters the Joint Committee may make recommendations.
(b) The exchange of information and the consultations referred to in paragraph 1, and
especially the consultations and decisions referred to in Article 25, shall, when
appropriate, take place within the Joint Committee.
(c) The Joint Committee shall meet on a rotation basis in Poland and in the Faroe Islands
whenever necessary at the request of either Contracting Party.
(d) The Joint Committee shall act by common agreement.(e) The Joint Committee shall lay down its own rules of procedure which shall, inter alia ,
contain provisions for the designation of the Chairman and his term of office.
(f) The Joint Committee may decide to set up  such sub-committees and working parties
as it considers necessary to assist it in accomplishing its tasks.
(g) The Joint Committee may decide to amend the Annexes and Protocols.
Article 30
Evolutionary clause
1. Where a Contracting Party considers that it would be useful in the interest of the Contracting
Parties to develop the relations established by this Agreement by extending them to fields not covered
thereby, it shall submit a reasoned request to the other Contracting Party.
2. The Contracting Parties may instruct the Joint Committee to examine this request and, where
appropriate, to open negotiations.
3. Agreements resulting from the negotiations referred to in paragraph 2 will be subject to
ratification or approval by the Contracting Parties in accordance with their own procedures.
Article 31
Annexes and Protocols
Annexes and Protocols to this Agreement shall form an integral part thereof.WT/REG78/1
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Article 32
Entry into force
This Agreement shall enter into force on the fist day of the second month following the date
of receipt of the latter diplomatic note confirming that internal legal requirements of the respective
Contracting Party on the entry into force of this Agreement have been fulfilled.
Article 33
Validity and termination
1. This Agreement is concluded for an unlimited period.2. Either Contracting Party may denounce this Agreement by a written notification to the other
Contracting Party.  The Agreement shall cease to be in force twelve months after the date of such
notification.
IN WITNESS WHEREOF the undersigned plenipotentiaires, being duly authorized thereto,
have signed this Agreement.
DONE at Warsaw on 3
rd November 1998, in duplicate in Polish, Faroese, Danish and English
languages, each of these texts being equally authentic.  In case of any discrepancy the English version
shall prevail.
For the Republic of Poland For the Kingdom of Denmark
For the Faroe Islands
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