WORLD TRADE WT/REG37/1
7March 1997
ORGANIZATION(97-0923)
Original: English Committee onRegional Trade Agreements
FREE TRADE AGREEMENT BETWEEN
THE REPUBLIC OFESTONIA AND THE REPUBLIC OFSLOVENIA
Thefollowing textreproduces theFreeTrade Agreement between theRepublic ofEstonia and
theRepublic ofSlovenia.1
______________________________
FREE TRADE AGREEMENT BETWEEN
THE REPUBLIC OFESTONIA AND THE REPUBLIC OFSLOVENIA
PREAMBLE
TheRepublic ofEstonia andtheRepublic ofSlovenia, hereinafter called theParties,
Reaffirming theirfirmcommitment todemocracy based ontheruleoflaw,human rights and
fundamental freedoms,
Recalling theirintention toparticipate actively intheprocess ofeconomic integration asan
important dimension ofthestability ontheEuropean continent andexpressing theirpreparedness to
co-operate inseeking ways andmeans tostrengthen thisprocess,
Reaffirming theirfirmcommitment totheprinciples ofamarket economy, which constitutes
thebasis fortheirrelations,
RecallingtheirfirmcommitmenttotheFinalActoftheConferenceonSecurityandCo-operation
inEurope, theParis Charter, and,inparticular, theprinciples contained inthefinaldocument ofthe
Bonn Conference onEconomic Co-operation inEurope,
Having regard totheDeclaration ofIntent ontheconclusion oftheFreeTrade Agreement
between theParties signed on27May1994 inLjubljana,
Resolved tothisendtoeliminate progressively theobstacles tosubstantially alltheirmutual
trade, inaccordance withtheprovisions oftheGeneral Agreement onTariffs andTrade 1994andthe
Agreement Establishing theWorld Trade Organization (WTO), Estonia having theobjective tobecome
aMember oftheWTO,
1TheAnnexes,ListsandProtocolshavebeensubmittedtotheSecretariatforconsultationbyinterestedMembers
(Office 3006).WT/REG37/1
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Firmly convinced thatthisAgreement willfoster theintensification ofmutually beneficial trade
relations between them andcontribute totheprocess ofintegration inEurope,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theParties
fromtheirobligations under other international agreements andorganizations, especially theGeneral
Agreement onTariffs andTrade 1994andtheAgreement Establishing theWorld Trade Organization,
Determined toimplement thisFreeTrade Agreement withtheobjective topreserve andproject
theenvironment andtoensure anoptimal useofnatural resources inaccordance withtheprinciple
ofsustainable growth,
Hereby agreed asfollows:
Article 1
Objectives
1. TheParties shallgradually establish afree-trade areaonsubstantially alltheirbilateral trade
inaccordance withtheprovisions ofthisAgreement andinconformity withArticle XXIV oftheGeneral
Agreement onTariffs andTrade 1994andwiththeUnderstanding ontheInterpretation ofArticle XXIV
oftheAgreement Establishing theWorld Trade Organization,
2. Theobjectives oftheAgreement are:
(a) topromote through theexpansion ofmutual trade theharmonious development ofthe
economic relations between theParties andthustofoster theadvance ofeconomic
activity intheParties, theimprovement ofliving andemployment conditions, and
increased productivity andfinancial stability,
(b) toprovide fairconditions andcompetition fortrade between theParties,
(c) tocontribute inthisway, bytheremoval ofbarriers totrade, totheharmonious
development andexpansion ofworld trade.
CHAPTER I
Industrial Products
Article 2
Scope
Theprovisions ofthisChapter shallapply toindustrial products originating intheParties.
Theterm"industrial products" means forthepurpose ofthisAgreement theproducts falling within
Chapters 25to97oftheHarmonized Commodity Description andCoding System.
Article 3
Customs duties onimports andcharges having equivalent effectWT/REG37/1
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1. Nonewcustoms duties onimports orcharges having equivalent effect shallbeintroduced in
trade between theParties.
2. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
customs duties onimports andallcharges having equivalent effect.
Article 4
Fiscal duties
Theprovisions ofArticle 3shallalsoapply tocustoms duties ofafiscal nature.
Article 5
Customs duties onexports andcharges having equivalent effect
1. Nonewcustoms duties onexports orcharges having equivalent effect shallbeintroduced in
trade between theParties.
2. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
customs duties onexports andallcharges having equivalent effect.
Article 6
Quantitative restrictions onimports andmeasures having equivalent effect
1. Nonewquantitative restrictions onimports ormeasures having equivalent effect shall be
introduced intrade between theParties.
2 Allquantitative restrictions andmeasures having equivalent effect onimports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement.
Article 7
Quantitative restrictions onexports andmeasures having equivalent effect
1. Nonewquantitative restrictions onexports ormeasures having equivalent effect shall be
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having equivalent effect onexports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement.
Article 8
Information procedure ondrafttechnical regulations
1. TheParties shallco-operate andexchange information inthefieldofstandardization, metrology,
conformity assessment andaccreditation withtheaimofreducing technical barriers totrade.
2. Toeliminate technical barriers andeffectively implement thisAgreement, theParties canon
thebasis ofthisArticle conclude anarrangement formutual recognition oftestreports, certificates
ofconformity andother documents directly orindirectly related toconformity assessment ofproductsWT/REG37/1
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which arethesubject ofthegoods exchange between theParties onthebasis ofregulation inforce
intheimporting state.
3. Aspecification ofconditions andmethods forconformity assessment shallbeprepared inmutual
agreement bythecompetent national authorities forthecarrying outofprocedures ofconformity
assessment onthebasis oftheregulations inforce intheexporting state.
4. TheParties commit themselves tonotify thetechnical regulations inaccordance withthe
provisions oftheWTO Agreement onTechnical Barriers toTrade.
CHAPTER II
Agricultural Products
Article 9
Scope
Theprovisions ofthisChapter shallapply toagricultural products originating intheParties.
Theterm"agricultural products" means forthepurpose ofthisAgreement theproducts falling within
Chapters 1to24oftheHarmonized Commodity Description andCoding System.
Article 10
Customs duties onimports andcharges having equivalent effect
1. Nonewcustoms duties onimports orcharges having equivalent effect shallbeintroduced in
trade between theParties.
2. Customs duties onimports shallbeapplied inaccordance withtheprovisions ofProtocol 1
tothisAgreement.
3. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
charges having equivalent effect tocustoms duties onimports.
Article 11
Fiscal duties
Theprovisions ofArticle 10shallalsoapply tocustoms duties ofafiscal nature.
Article 12
Basic duties
1. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbethemost-favoured-nation rateofdutyinforce on1July1996.
2. If,afterentry intoforce ofthisAgreement, anytariff reduction isapplied onanergaomnes
basis, suchreduced duties shallreplace thebasic duties referred toinparagraph 1asfrom thatdate
when suchreductions areapplied.WT/REG37/1
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3. Thereduced duties calculated inaccordance withparagraph 2shallbeapplied rounded tothe
firstdecimal place.
4. TheParties shallcommunicate toeachother theirrespective national basic ratesofduties in
accordance withtheprovisions ofparagraph 2.
Article 13
Customs duties onexports andcharges having equivalent effect
1. Nonewcustoms duties onexports orcharges having equivalent effect shallbeintroduced
intrade between theParties.
2. TheParties shallabolish between them onthedateofentry intoforce ofthisAgreement all
customs duties onexports andallcharges having equivalent effect.
Article 14
Quantitative restrictions onimports andmeasures having equivalent effect
1. Nonewquantitative restrictions onimports ormeasures having equivalent effect shall be
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having equivalent effect onimports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement.
Article 15
Concessions andagricultural policies
1. Without prejudice totheconcessions granted under Protocol 1tothisAgreement, theprovisions
ofthisChapter shallnotrestrict inanywaythepursuance oftherespective agricultural policies of
theParties orthetaking ofanymeasures under suchpolicies, including theimplementation ofthe
respective provisions oftheAgreement onAgriculture within theframework oftheWorld Trade
Organization.
2. TheParties shallnotify eachother ofchanges intheirrespective agricultural policies pursued
ormeasures applied which mayaffect theconditions ofagricultural trade between them asprovided
forinthisAgreement. Prompt consultations shallbeheld, upon request ofanyParty, toexamine the
situation.
3. Taking intoaccount theEstonian customs tariff structure onthedateofentry intoforce of
thisAgreement, where nocustoms duties areapplied foragricultural products, intheevent thatanew
tariff regime fortheimports ofagricultural products isestablished, theRepublic ofEstonia may, by
wayofderogationfromtheprovisionsofArticle10ofthisAgreementandpursuanttotheimplementation
ofitsagricultural policy, introduce customs duties onimports onalimited number ofagricultural
products originating intheRepublic ofSlovenia.
4. Customs duties onimports maybeintroduced bytheRepublic ofEstonia during thefirsttwo
years following theentry intoforce ofthisAgreement andafterconsultations intheJointCommittee.
Ifnecessary, theperiod oftwoyears maybeprolonged byoneyearbythedecision oftheJoint
Committee. These measures shallbeapplied foraperiod notexceeding three years.WT/REG37/1
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5. Inallsuchcases, theRepublic ofEstonia shallensure asizeable margin ofpreference for
productsoriginatingintheRepublicofSloveniagrantingthemtreatmentnotlessfavourable,thangranted
bytheRepublic ofSlovenia totheproducts originating intheRepublic ofEstonia.
Article 16
Special safeguard
Notwithstanding other provisions oftheAgreement and,inparticular, Article 29,if,given
theparticular sensitivity oftheagricultural markets, imports ofproducts originating inaParty, which
aresubject toconcessions granted under thisAgreement, cause serious disturbance tothemarkets of
theother Party, theParty concerned shallenter intoconsultations immediately tofindtheappropriate
solution. Pending suchsolution, theParty concerned maytakethemeasures itdeems necessary.
Article 17
Veterinary, health andphytosanitary measures
1. MeasuresconcerningveterinaryandphytosanitarycontrolwillbeharmonizedwiththeEuropean
Union legislation andbetween theParties.
2. Theveterino-sanitary measures andthework oftheveterinary services willbeinaccordance
withtheOffice International desEpizoodies Codex andother international conventions inthisfield.
3. Thephytosanitary measures andthework oftheplantprotection service willbeinaccordance
withtheInternational Plant Protection Convention andother international conventions inthisfield.
4. The Parties shall apply their regulations insanitary andphytosanitary matters in
non-discriminatory fashion andshallnotintroduce anynewmeasures thathavetheeffect ofunduly
obstructing trade
CHAPTER III
General Provisions
Article 18
Rules oforigin andco-operation incustoms administration
1. Protocol 2tothisAgreement laysdown therulesoforigin andrelated methods ofadministrative
co-operation.
2. TheParties shalltakeappropriate measures, including regular reviews bytheJointCommittee
andarrangements foradministrative co-operation, toensure thattheprovisions ofProtocol 2tothis
Agreement andArticles 3to7,10to14,19and30ofthisAgreement areeffectively andharmoniously
applied, andtoreduce, asfaraspossible, theformalities imposed ontrade, andtoachieve mutually
satisfactory solutions toanydifficulties arising from theoperation ofthose provisions.
3. Themutual assistance between administrative authorities incustoms matters shalltakeplace
inaccordance withtheprovisions ofProtocol 3tothisAgreement.WT/REG37/1
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Article 19
Internal taxation
1. TheParties shallrefrain fromanymeasure orpractice toaninternal fiscal nature establishing,
whether directly orindirectly, discrimination between theproducts originating intheParties.
2. Products exported totheterritory ofoneoftheParties maynotbenefit from repayment of
internal taxation inexcess oftheamount ofdirect orindirect taxation imposed onthem.
Article 20
General exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified onthegrounds ofpublic morality, public policy orpublic security; theprotection
ofhuman, animal orplantlifeorhealth; theprotection ofnational treasures possessing artistic, historic
orarchaeological value; theprotection ofintellectual property orrules relating togoldorsilver or
totheconservation 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 21
Security exceptions
Nothing inthisAgreement shallprevent aParty fromtaking anyappropriate measure which
itconsiders necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;
(b) 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 toanon-proliferation ofbiological andchemical weapons, nuclear weapons
orother nuclear explosive devices; or
(iii) taken intimeofwarorother serious international tension.
Article 22
State monopolies
1. TheParties shalladjust progressively andState monopoly ofcommercial character soasto
ensurethatby1January2001nodiscriminationregardingtheconditionsunderwhichgoodsareprocuredWT/REG37/1
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andmarketed existbetween nationals oftheParties. TheParties shallinform eachother about the
measures adopted toimplement thisobjective.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheParties,inlaworinfact,eitherdirectlyorindirectly,supervise,determineorappreciablyinfluence
imports orexports between theParties. These provisions shalllikewise apply tomonopolies delegated
byaParty toother bodies.
Article 23
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 related totradeingoods inwhich aresident ofaParty
participates.
3. Notwithstanding theprovisions ofparagraph 2,anymeasures concerning current payments
connected withthemovement ofgoods shallbeinconformity withtheconditions laiddown under
Article VIIIoftheArticles oftheAgreement oftheInternational Monetary Fund.
Article 24
Rules ofcompetition concerning undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofarasthey
mayaffect trade between theParties:
(a) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;
(b) abuse byoneormoreundertakings ofadominant position intheterritories oftheParties
asawhole orinsubstantial partthereof.
2. Theprovisions ofparagraph 1ofthisArticle shallapply totheactivities ofallundertakings
including public undertakings andundertakings towhich theParties grant special orexclusive rights.
Undertakingsentrustedwiththeoperationofservicesofgeneraleconomicinterestorhavingthecharacter
ofarevenue-producing monopoly, shall besubject toprovisions ofparagraph 1insofarasthe
application ofthese provisions doesnotobstruct theperformance, inlaworinfact,oftheparticular
public tasks assigned tothem.
3. With regard toproducts referred toinChapter IItheprovisions stipulated inparagraph 1(a)
ofthisArticle shallnotapply tosuchagreements, decisions andpractices which formanintegral part
ofanational market organization.
4. IfaParty considers thatagiven practice isincompatible withparagraphs 1,2and3ofthis
Article andifsuchpractice causes orthreatens tocause serious prejudice totheinterest ofthatPartyWT/REG37/1
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ormaterial injury toitsdomestic industry, itmaytakeappropriate measures under theconditions and
inaccordance withtheprocedure laiddown inArticle 33.
Article 25
State aid
1. Anyaidgranted byaState being aParty tothisAgreement orthrough stateresources inany
form whatever, which distorts orthreatens todistort competition byfavouring certain undertakings
ortheproduction ofcertain goods shall, insofarasitmayaffect trade between theParties, be
incompatible withtheproper functioning ofthisAgreement.
2. Theprovisionsofparagraph1ofthisArticleshallnotapplytoproductsreferredtoinChapterII.
3. TheJointCommittee shall, within three years fromentry intoforce ofthisAgreement adopt
thecriteria onthebasisofwhich thepractices contrary toparagraph 1ofthisArticle shallbeassessed,
aswellastherules oftheirimplementation.
4. TheParties shallensure transparency intheareaofstateaid,interalia,byreporting annually
totheJointCommittee onthetotalamount andthedistribution oftheaidgiven andbyproviding to
theother Party, upon request, information onaidschemes andinparticular 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 3causes orthreatens tocause
serious prejudice totheinterest ofthatParty ormaterial injury toitsdomestic industry,
itmaytakeappropriate measures under theconditions ofandinaccordance withtheprovisions of
Article 33.Suchappropriate 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 26
Public Procurement
1. TheParties consider theliberalization oftheirrespective public procurement markets asan
objective ofthisAgreement.
2. TheParties shallprogressively develop theirrespective regulations forpublic procurement
withaviewtogrant suppliers oftheother Party, on1January 1999 atthelatest, access tocontract
award procedures ontheirrespective public procurement markets according totheprovisions ofthe
Agreement onGovernment Procurement inAnnex IVtotheAgreement Establishing theWorld Trade
Organization.WT/REG37/1
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3. TheJointCommittee shallexamine developments related totheachievement oftheobjectives
ofthisArticle andmayrecommend practical modalities ofimplementing theprovisions ofparagraph 2
soastoensure freeaccess, transparency andfullbalance ofrights andobligations.
4. During theexamination referred toinparagraph 3,theJointCommittee mayconsider, especially
inthelightofinternational developments andregulations inthisarea, thepossibility ofextending the
coverage 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 27
Protection ofintellectual property
1. TheParties shall grant andensure theprotection ofintellectual property rights ona
non-discriminatory basis, including measures forgranting theenforcing suchrights. Theprotection
shallbegradually improved onalevelcorresponding tothesubstantive standards ofthemultilateral
agreements which arespecified inAnnex Iby1January 1999 atthelatest.
2. Forthepurposes ofthisAgreement "intellectual property protection" includes, inparticular,
protection ofcopyright, comprising computer programs anddatabases, andneighbouring rights,
trademarks forgoods andservices, geographical indications including appellation oforigin, industrial
designs, patents, topographies ofintegrated circuits, aswellasundisclosed information.
3. TheParties shallco-operate inmatters ofintellectual property. They shallhold, uponrequest
ofanyParty, expert consultations onthese matters, inparticular, onactivities relating totheexisting
ortofuture international conventions onharmonization, administration andenforcement ofintellectual
property andonactivities ininternational organizations, suchastheWorld Trade Organization and
theWorld Intellectual Property Organization, aswellasrelations oftheParties withanythirdcountry
onmatters concerning intellectual property.
4. TheParties mayconclude further agreements exceeding therequirements ofthisAgreement
which arenotcontrary totheTRIPS Agreement.
Article 28
Dumping
IfaParty finds thatdumping within themeaning ofArticle VIoftheGeneral Agreement on
Tariffs andTrade 1994 istaking place intrade relations governed bythisAgreement, itmaytake
appropriate measures against thatpractice inaccordance withArticle VIoftheGeneral Agreement
onTariffs andTrade 1994andtheAgreement onImplementation ofArticle VIoftheGeneral Agreement
onTariffs andTrade 1994 under theconditions andinaccordance withtheprocedure laiddown in
Article 33.WT/REG37/1
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Article 29
General safeguards
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products inthe
territory oftheimporting Party, or
(b) serious disturbances inanyrelated sector oftheeconomy ordifficulties which could
bring about serious deterioration intheeconomic situation ofaregion,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 33.
Article 30
Structural adjustment
1. Exceptional measures oflimited duration which derogate fromtheprovisions ofArticle 3may
betaken byanyoftheParties intheform ofincreased customs duties.
2. These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce important social problems.
3. Customs duties onimports applicable intheParty concerned toproducts originating inthe
other Party introduced bythese measures maynotexceed 25percentadvalorem andshallmaintain
anelement ofpreference forproducts originating intheother Party. Thetotalvalue ofimports of
theproducts which aresubject tothesemeasures maynotexceed 15percentoftotalimports ofindustrial
products from theother Party asdefined inChapter Iduring thelastyearforwhich statistics are
available.
4. These measures shallbeapplied foraperiod notexceeding threeyears, unless longer duration
isauthorized bytheJoint Committee. They shallcease toapply on1January 2001 atthelatest.
5. Nosuchmeasures canbeintroduced inrespect ofaproduct ifmore thantwoyears haveelapsed
since theentry intoforce ofthisAgreement orelimination ofallcustoms duties andquantitative
restrictions orcharges ormeasures having anequivalent effect concerning thatproduct.
6. TheParty concerned shallinform theother Party ofanyexceptional measures itintends to
takeand,upon request oftheother Party, consultations shallbeheldwithin theJointCommittee on
suchmeasures andthesectors towhich theyapply prior totheirintroduction. When taking such
measures theParty concerned shallprovide theJointCommittee withaschedule fortheelimination
ofthecustoms duties introduced under thisArticle. Thisschedule shallprovide foraphasing outof
these customs duties starting atthelatest oneyearaftertheirintroduction, atequal annual rates. The
Joint Committee maydecide onadifferent schedule.WT/REG37/1
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Article 31
Re-export andserious shortage
Where compliance withtheprovisions ofArticles 5and7leads to:
(a) re-export towards athirdcountry against which theexporting Party maintains forthe
product concerned quantitative export restrictions, export duties ormeasures orcharges
having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party;
andwhere thesituations referred toabove giveriseorarelikely togiverisetomajor difficulties for
theexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedure laiddown inArticle 33.
Article 32
Fulfilment ofobligations
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallseetoitthattheobjectives setoutinthisAgreement areattained.
2. IfaParty considers thattheother Party hasfailed tofulfilanobligation under thisAgreement,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 33.
Article 33
Procedure fortheapplication ofsafeguard measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthisArticle, theParties shallendeavour tosolve anydifferences between them through
direct consultations.
2. Intheevent ofaParty subjecting imports ofproducts liable togiverisetothesituation referred
toinArticle 29toanadministrative procedure having asitspurpose therapid provision ofinformation
onthetrend oftrade flows, itshallinform theother Party.
3. Without prejudice toparagraph 7ofthisArticle, aParty which considers resorting tosafeguard
measuresshallpromptlynotifytheotherPartythereofandsupplyallrelevantinformation.Consultations
between theParties shalltakeplace without delay intheJoint Committee withaview tofinding a
solution.
4. (a) With regard toArticles 28,29and31,theJoint Committee shallexamine thecase
orthesituation andmaytakeanydecision needed toputanendtothedifficulties
notified bytheParty concerned. Inthecaseoftheabsence ofsuchdecision within
thirty daysofthematter being referred totheJointCommittee, theParty concerned
mayadopt themeasures necessary inorder toremedy thesituation.WT/REG37/1
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(b) With regard toArticle 32,theParty concerned mayhaveappropriate measures after
theconsultations havebeenconcluded oraperiod ofthree months haselapsed from
thedateofthefirstnotification totheother Party.
(c) Withregard toArticles 24and25,theParty concerned shallgivetheJointCommittee
alltheassistance required inorder toexamine thecaseand,where appropriate, eliminate
thepractice objected to.IftheParty inquestion failstoputanendtothepractice
objected towithin theperiod fixed bytheJointCommittee oriftheJointCommittee
failstoreach anagreement within thirty daysofthematter being referred toit,the
Partyconcernedmayadopttheappropriatemeasurestodealwiththedifficultiesresulting
from thepractice inquestion.
5. Thesafeguard measures taken shallbeimmediately notified totheother Party. They shall
berestricted withregard totheirextent andtotheirduration towhatisstrictly necessary inorder to
rectify thesituation giving risetotheirapplication andshallnotbeinexcess oftheinjury caused by
thepractice orthedifficulty inquestion. Priority shallbegiven tosuchmeasures which willleast
disturb thefunctioning ofthisAgreement.
6. Thesafeguard measures taken shallbethesubject ofperiodic consultations within theJoint
Committee withaviewtotheirrelaxation assoonaspossible, orabolition when conditions nolonger
justify theirmaintenance.
7. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theParty concerned may,inthecasesofArticles 28,29and31,apply forthwith theprovisional measures
strictly necessary toremedy thesituation. Themeasures shallbenotified without delay andconsultations
between theParties shalltakeplace assoonaspossible within theJoint Committee.
Article 34
Balance ofpayments difficulties
1. TheParties shallendeavour toavoid theimposition ofrestrictive measures including measures
relating toimports forbalance ofpayments purposes.
2. Where oneoftheParties isinserious balance ofpayments difficulties, orunder imminent threat
thereof, theParty concerned may,inaccordance withtherelevant provisions oftheGeneral Agreement
onTariffs andTrade 1994 adopt restrictive measures, including measures related toimports, which
shallbeoflimited duration andmaynotgobeyond whatisnecessary toremedy thebalance ofpayments
situation. Themeasures shallbeprogressively relaxed asbalance ofpayments conditions improve
andtheyshallbeeliminated when conditions nolonger justify theirmaintenance. TheParty concerned
shallinform theother Party forthwith oftheirintroduction and,whenever practicable, ofaschedule
fortheirremoval.
Article 35
Evolutionary clause
1. Where aParty considers thatitwould beuseful intheinterests oftheeconomies oftheParties
todevelopanddeepentherelationsestablishedbythisAgreementbyextendingthemtofieldsnotcovered
thereby, itshallsubmit areasonable request totheother Party. TheParties mayinstruct theJoint
Committee toexamine sucharequest and,where appropriate, tomake recommendations, particularly
withaviewtoopening negotiations.WT/REG37/1
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2. Agreements resulting from theprocedure referred toinparagraph 1willbesubject tothe
ratification ortheapproval bytheParties inaccordance withtheirownprocedures.
CHAPTER IV
Institutional andFinal Provisions
Article 36
TheJoint Committee
1. TheJointCommittee ishereby established andshallconsist ofarepresentative appointed by
theGovernment oftheRepublic ofEstonia, ontheonehand, andofarepresentative appointed by
theGovernment oftheRepublic ofSlovenia, ontheother hand.
2. Theimplementation ofthisAgreement shall besupervised andadministered bytheJoint
Committee.
3. Forthepurpose oftheproper implementation ofthisAgreement, theParties shallexchange
information and,uponrequest ofanyParty, shallholdconsultations within theJointCommittee. The
Joint Committee shallkeepunder review thepossibility offurther removal oftheobstacles totrade
between theParties.
4. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theJoint Committee maymake recommendations.
Article 37
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJointCommittee shallmeetwhenever
necessary butatleastonceayear. Each Party mayrequest thatameeting beheld.
2. TheJoint Committee shallactbycommon agreement.
3. Ifarepresentative intheJoint Committee ofaParty has,under thereservation, accepted a
decision subject tothefulfilment ofinternal legal requirements, thedecision shallenter intoforce,
ifnolaterdateiscontained therein, onthedaythelifting ofthereservation isnotified.
4. Forthepurpose ofthisAgreement, theJointCommittee shalladopt itsrulesofprocedure which
shall, interalia,contain provisions forconvening meetings andforthedesignation oftheChairman
andhis/her termofoffice.
5. TheJoint Committee maydecide tosetupsuchsub-committees andworking groups asit
considers necessary toassist itinaccomplishing itstasks.WT/REG37/1
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Article 38
Customs unions, free-trade areas andfrontier trade
ThisAgreementshallnotpreventthemaintenanceorestablishmentofcustomsunions,free-trade
areasorarrangements forfrontier tradetotheextent thatthesedonotnegatively affect thetradebetween
theParties andinparticular theprovisions concerning rulesoforigin provided forbythisAgreement.
Article 39
Services andinvestments
1. TheParties recognize thegrowing importance ofcertain areas, suchasservices andinvestments.
Intheirefforts togradually develop andbroaden theirco-operation, inparticular inthecontext ofthe
European integration, theywillco-operate withtheaimofachieving aprogressive liberalization and
mutual 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.
Article 40
Annexes, Protocols andAmendments
1. Annexes andProtocols tothisAgreement areanintegral partofit.
2. TheJoint Committee maydecide toamend theAnnexes andProtocols. Inthiscasethe
amendments shallenter intoforce onthedateofareceipt ofthelatter diplomatic noteconfirming that
theirinternal legalrequirements fortheentry intoforce oftheamendments havebeenfulfilled.
Article 41
Entry intoforce
1. ThisAgreement shallenterintoforce onthefirstdayofthemonth following thedateofreceipt
ofthelatter diplomatic noteconfirming thattheirrespective internal legalrequirements fortheentry
intoforce ofthisAgreement havebeenfulfilled.
2. ThisAgreement shallbeapplied provisionally from 1January 1997.
Article 42
Validity andtermination
1. ThisAgreement isconcluded foranunlimited period oftime.
2. Either Party mayterminate thisAgreement byawritten notification totheother Party. The
termination shalltakeeffect onthefirstdayoftheseventh month following thedateonwhich the
notification wasreceived bytheother Party.WT/REG37/1
Page16
INWITNESS WHEREOF theundersigned plenipotentiaries, being dulyauthorized thereto,
havesigned thisAgreement.
Done atTallinn this26dayofNovember onethousand ninehundred andninety-six, intwo
originals, eachintheEnglish Language.
FortheRepublic ofEstonia FortheRepublic ofSloveniaWT/REG37/1
Page17
RECORD OFUNDERSTANDINGS
1. TheParties shallcontinue intheirefforts withaviewtoachieve further liberalization oftrade
inagricultural products within theframework oftheir respective agricultural policies andtheir
international commitments.
2. Inthesecond halfof1997 atthelatest, theParties shallexamine thepossibilities ofgranting
eachother further concessions.
3. Theprohibition ofdrawback of,orexemption from, customs duties laiddown inArticle 15
ofProtocol 2tothisAgreement shallbetemporarily derogated untilitwillbeapplied intheframework
ofthediagonal cumulation between bothParties andtheEuropean Union.