RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG36/4
6 June 2000
(00-2228)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN THE FORMER YUGOSLAV
REPUBLIC OF MACEDONIA AND SLOVENIA
Questions and Replies
This document reproduces questions addressed to the Parties and the responses submitted by
Slovenia.  The questions and replies set out below are organized in accordance with document
WT/REG36/2/Rev.1.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Date of Signature, Ratification and Entry into Force
When was the Agreement notified to the WTO?
The Agreement was notified to the WTO on 14 February 1997 (see WT/REG36/N/1 dated
20 February 1997).
3. Scope and Product Coverage
4. Trade Data
The Parties indicate that Chapters 25-97 of the Harmonized System (HS) and some
products in HS Chapters 1-24 are covered.  Plea se provide additional information on coverage,
including the treatment of agricultural products and duty treatment of groups of products.  It isnot clear that this agreement meets the "substantially all the trade" threshold given the usual
differences in definition of "coverage".   We  should seek appropriate duty treatment data.
All tariff numbers falling within HS Chapters  25 to 97 are covered by the Agreement (there
are no exemptions).  The imports of these products are fully liberalized by both Parties (zero customsduty is applied).  These products cover 76 per cent of the total trade.
The trade in agricultural products covers 24 per cent of the trade between the Parties.  Out of
these, the FTA (the tariff numbers covered by the Agreement are specified in the Protocol 2 to the
FTA) covers 23 per cent of the trade.  There are no customs duties applied on the products tradedwithin the tariff quotas specified in the annexes to the Protocol 2.
Thus, the FTA liberalizes 99 per cent of the trade, meaning that almost all the imports carry
zero preferential tariffs.  These data clearly show that the FTA covers "substantially all the trade".WT/REG36/4
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II. TRADE PROVISIONS
Industrial Products
1. Import Restrictions
2. Export Restrictions
Please confirm that implementation of the elimination of all duties and other restrictive
regulations of commerce will not extend beyond 10 years.
All export duties and measures having equivalent effect as well as all quantitative restrictions
on exports and measures having equivalent effect were abolished on the date of the application of the
Agreement (1 September 1996).
All import duties and measures having equivale nt effect were abolished on 1 September 1996,
except 1 per cent charge for customs clearance evidence in Macedonia.  This charge will be
eliminated soon, with the adoption of a new customs law in Macedonia.  All quantitative restrictions
on imports and measures having equivalent effect were abolished on the date of the application of theAgreement.
The implementation of the elimination of all duties and other restrictive regulation of
commerce will not extend beyond 10 years.
Do the parties maintain quantitative restrictions between or among them?  If so, please
describe.
No quantitative restrictions are applied between the Parties.
3. Rules of Origin and Co-operation in Customs Administration
Please inform which regime currently applies to this agreement.  What is the status of
negotiations to incorporate the European Cumulation regime?
The regime, which currently applies, is laid down in the Protocol 3 to the Agreement.  Such
regime was applied between the European Uni on (EU) and Slovenia and between the EU and
Macedonia in the year 1996 when the Agreement was signed.  In the meantime the EU and the
associated countries agreed upon the modified rules of origin, so called harmonized preferential rules
of origin.
No pan-European cumulation of origin will apply to trade between Slovenia and Macedonia.
Slovenia and Macedonia are currently negotiating a new set of rules of origin, which will contain only
bilateral cumulation of origin (the same system as applied between Slovenia and Croatia).
5. Safeguards
Is there a mechanism for bilateral safeguards?  If so, please describe.  On what basis
and to who safeguard measures are applied?  Does the agreement provide for preferential
treatment between the parties in the application of a global safeguard measure?  If so, please
describe.  Have safeguards measures been implemented under the agreement?
No safeguard measures have been applied by any Party so far.  Safeguard measures can only
be applied to the Party of the Agreement.  No safeguard measure adopted according to the Agreement
can be extended to a third country/non-party to the Agreement.WT/REG36/4
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If a global safeguard measure were applied it would most probably be extended to the Party to
the Agreement too.  This is especially underlined in the case of balance-of-payments measures.  In the
case of the application of a structural adjustment measure, a preferential treatment between the Parties
has been foreseen but this measure can not be introduced any more since the transitional periodexpired (on 1 January 2000).  The Agreement does not contain a special provision concerning the
treatment between the Parties in the case of the application of an eventual global safeguard measure.
7. State-Aid and Countervailing Measures
Please provide additional information on the operation of provisions on subsidies and
State-aid.  Have they been taken?
No measures have been used between the Parties so far.  In taking measures under this
Article, the Parties shall be guided by their WT O commitments and obligations.  To date, no practical
experience with the measures in question is available which makes further elaboration on this matter
difficult.
8. Sector-Specific Provisions
- Agricultural products
Which products are subject to tariff-rate quotas (TRQs)?  What amounts are provided?
Do amounts increase from year to year?  Is this tonnage additional to the amounts agreed in the
Uruguay Round?
Products subject to TRQs are specified in Annexes 1 and 2 to the Protocol 2 to the
Agreement.  The Annexes were submitted to the WTO Secretariat (see WT/REG36/1 of
17 January 2000).  The annual quantities (tariff quotas) have not been changed as compared to the
initial quantities specified in the mentioned Annexes.
As far as Slovenia is concerned, this tonnage is additional to the amounts agreed in the
Uruguay Round.  Macedonia is not a member of the WTO yet.
Please provide information on the excepti onal treatment of agriculture under the
agreement.
At the moment no full liberalisation of trade in agricultural products has been foreseen.  The
zero customs duty treatment has only been given to certain products within the limited quotas (tariffquotas).  These products are the most tradable agri cultural products between the Parties and the quotas
are large enough to cover substantially all the agricu ltural trade between them.  Nevertheless, there is
a provision, which allows an extension of the concessions.
IV. OTHER
4. Government Procurement
Do the Parties intend to accede to the Government Procurement Code?
Slovenia is going to accede to the WTO Government Procurement Agreement while
Macedonia is still negotiating its accession to the WTO.WT/REG36/4
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6. Evolutionary Clause
Does the parties' participation in this agreement limit in any way their ability to make
concessions in multilateral negotiations?
There are no such provisions that could hinder the multilateral negotiations.
Are there plans for companion agreements on services?
Agreements on services are not planned in the framework of the Agreement.
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