RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/EST/2/Rev.3 
16 November 1998 
 (98-4526) 
Working Party on the 
Accession of Estonia  
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF ESTONIA 
TO THE WORLD TRADE ORGANIZATION  
Revision  
Introduction  
1. In March 1994, the Government of Estonia re quested accession to the General Agreement on 
Tariffs and Trade (GATT 1947).  At its me eting on 23-24 March 1994, the GATT Council of 
Representatives established a Working Party to examin e the application of the Government of Estonia 
to accede to the General Agreement under Artic le XXXIII, and to submit to the Council 
recommendations which may include a draft Protocol of Accession.  Membership of the Working 
Party was open to all contracting parties indicati ng the wish to serve on it.  In pursuance of the 
Ministerial Decision of 14 April 1994 on Acceptan ce of and Accession to the Marrakesh Agreement 
Establishing the World Trade Organization (WTO) and to the decision of 31 May 1994 of the 
Preparatory Committee for the WTO, the Working Pa rty examined the application of Estonia for 
membership in the WTO and agreed to pursue th e market access negotiations for goods, including an 
agricultural country schedule, and for services.   The WTO Agreement entered into force on 
1 January 1995.  In pursuance of the deci sion adopted by the WTO General Council on 
31 January 1995, the GATT 1947 Accession Working Party was transformed into a WTO Accession Working Party.  The terms of reference and the me mbership of the Working Party are reproduced in 
document WT/ACC/EST/7. 
2. The Working Party met on 25 November 1994;  6-7 June and 14 Nove mber 1995;  28 March 
and 18 September 1996;  11 Fe bruary 1997 and ............  under the Chairmanship of 
H.E. Mr. D. Kenyon (Australia).  
Documentation
 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Estonia (L/7423) and the questions submitted by Members on the foreign 
trade regime of Estonia, together with the rep lies thereto, and other information provided by the WT/ACC/SPEC/EST/2/Rev.3 
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Estonian authorities (L/7529 and Addenda  1 and 2, WT/ACC/EST/2, WT/ACC/EST/4,  
WT/ACC/EST/9 and Corrigendum 1, WT/ACC/EST/11, WT/ACC/EST/12 and 
WT/ACC/SPEC/EST/3).  The Government of Estonia made available to the Working Party the 
following documentation: 
- The Customs Act of 17 December 1997, consolidated on 13 May 1998; 
- The Customs Tariff Act of 14 October 1997; 
- Law on Foreign Relations of 16 November 1993; 
- Competition Act of 11 March 1998; - Law on the State Border of 30 June 1994; - Public Service Act of 25 January 1995; - Law on State Budget (amended version of 20 April 1994); 
- Law on Municipal and Town Budget of 28 June 1993; 
- Law on Correlation between Municipal and To wn Budgets and the State Budget (amended 
 version of 2 February 1994); - Law on Privatization of 7 July 1993; 
- Law on Export and Transit of Strategic Goods of 21 April 1994; 
- Law on Amending the Law of the Central Bank of  the Republic of Estonia of 20 April 1994;  
- The Food Law of 9 February 1995;  - The Law of the Republic of Estonia on Foreign Investments of 11 September 1991; 
- Statutes of the Estonian Foreign Investment Agency (9 May 1994); 
- Restrictions on Transfer of Immovable Prope rty Ownership to Aliens, Foreign States and 
 Legal Persons Act of 29 May 1996;  - Law on Bankruptcy of the Republic of Estonia of 10 June 1992; - Law on Taxation of 29 December 1993; 
- Law on Amending the Law on Taxation of 30 March 1994; 
- Income Tax Law of 21 December 1993; - Law on Land Tax of 12 May 1993; - Law on Local Taxes of 10 October 1994; 
- Law of the Central Bank of the Republic of Estonia of 31 May 1993; 
- Law on Motor Vehicle Excise Tax of 8 February 1995; - Law on Alcohol Excise Tax (with 1994 amendments); - Law on Amending the Law on Alcohol Excise Tax; - Alcohol Excise Duty Act of 8 November 1995, consolidated on 15 April 1997; 
- Law on Tobacco Excise Tax (new version of 13 July 1994); 
- Tobacco Excise Duty Act of 29 June 1994, consolidated on 22 October 1997; 
- Law on Revenue Stamps of 28 March 1994;  WT/ACC/SPEC/EST/2/Rev.3 
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- Packaging Excise Duty Act of 19 December 1996; 
- Law on Value Added Tax (amende d version of 30 June 1994); 
- Law on Customs Valuation of 8 February 1995; 
- Law on Public Procurement of 1 January 1996; - Public Procurement Amendm ent Act of 1 January 1997; 
- Copyright Law of 23 November 1992; 
- Trade Marks Act of 27 August 1992, consolidated on 17 December 1997; 
- Packaging Act of 3 May 1995, consolidated on 30 June 1997; - Patent Law of 30 March 1994; - Industrial Design Protection Act of 18 November 1997; - Utility Model Law of 30 March 1994; 
- Legislation on the Agreement on Trade-Rela ted Aspects of Intellectual Property Rights; 
- Law on Securities Market of 14 June 1993; - Insurance Law of 18 November 1992; - Memorandum on the Export Control System in Estonia; 
- Rules of Origin in Free-Trade Agreements w ith the European Union, the Ukraine and the 
 Trilateral Free-Trade Agreemen t with Latvia and Lithuania; 
- Rules of Origin in Free-Trade Agreements  with EFTA countries (Norway and Switzerland); 
- Commercial Code, consolidated on 12 June 1996; 
- Law of Property Act, consolidated on 8 October 1996; 
- Medicinal Products Act, cons olidated on 15 October 1996; 
- Draft Law on Standardization; - Draft Technical Regulations and Standard s Act, last modified on 6 October 1998; 
- Information on standardization in Estonia (July 1998); 
- Estonian legislation on sanitary and phytosanitary measures (October 1998); 
- Animal Protection Act of 17 December 1992, consolidated on 22 February 1998; 
- Farm Animal Breeding Act of 25 June  1995, consolidated on 9 December 1997; 
- Plant Variety Rights Act of 1 July 1998; 
- Fertilizers Act of 1 July 1998; 
- Organic Agriculture Act of 17 July 1997; - Legislation and draft legislation in th e field of veterinary measures (April 1997); 
- Veterinary conditions for importi ng goods into Estonia (April 1997); 
- Regulations for the import of plants and part of plants to Estonia (April 1997); 
- Law of the Republic of Estonia on Ve terinary Services of 1 January 1993; 
- The Order of Registration for Veterinary Medicines of 15 September 1994; - Grains Act of 8 June 1994, as amended; WT/ACC/SPEC/EST/2/Rev.3 
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- Privatization in Estonia (summary); 
- Information on the Estonian Innovation Foundation; 
- A comparison of the old and new version of th e Food Act, concerning food control in Estonia; 
- Economic bulletins. 
Introductory Statements
 
4. The representative of Estonia noted that Es tonia had been an observer to the GATT 1947 
since June 1992 and had accordingly witnessed th e successful conclusion of the Uruguay Round and 
looked forward to its implementati on.  Estonia had adopted new laws  and regulations forming a solid 
legislative foundation.  Moreover, Estonia's economy, which encouraged competition and an 
entrepreneurial spirit through a liberal trade regi me for agricultural and industrial products and 
openness regarding foreign investment and foreign exchange, was expanding steadily.  Estonia's free 
and open market had been underpinne d by bilaterally binding and mutu ally beneficial market opening 
commitments in trade agreements covering more than  two thirds of Estonia's trade.  Bilateral free 
trade agreements had been concluded with Latv ia, Lithuania, EFTA countries, Ukraine, Czech 
Republic, Slovak Republic, the European Union, Slovenia, Turkey, Poland [and Hungary,] and 
Estonia had trade agreements based on the GATT 1947 principles with several other countries.  
Having followed the code of conduct laid down by  GATT 1947 principles, full membership in the 
GATT 1947 and upon its entry into force in the Marr akesh Agreement Establishing the World Trade 
Organization - was the one important missing aspect in Estonia's trade policy.  Estonia intended to 
join the multilateral trading system embodied in the WTO Agreement as a developed country, fully 
aware of, and ready to assume, all the obliga tions and responsibilities this entailed.  The 
representative of Estonia looked forward to the beginning of an active negotiating process which 
should be concluded by Estonia's accession to the WTO in the very near future. 
5. Members of the Working Party welcomed Est onia's initial application for accession to the 
General Agreement and, upon conclusion of the Urugua y Round, to the WTO.  The rise in exports 
and foreign direct investment were indicative of  the relative success of Estonia's liberal economic 
policies.  Membership in the WTO would offer Est onia the opportunity to consolidate its small, open 
economy within a multilateral framework and to de velop and increase trade exchanges with WTO 
Members worldwide.  The liberal, open market pr inciples currently being implemented by Estonia 
would also facilitate its assumption of obligations  and commitments arising from the Uruguay Round.  
Several members accordingly expressed the expect ation that the establishment of market access 
conditions for goods and services would proceed in an expeditious manner and looked forward to the 
successful and timely conclusion of the tasks of the Working Party.  WT/ACC/SPEC/EST/2/Rev.3 
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6. The Working Party reviewed the economic policie s and foreign trade regime of Estonia and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed in the course of 
the deliberations of the Working Party are summarized below in paragraphs [7 - 135]. 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
7. Questions by some members of the Working Party focused on the tax components of 
government revenue and the scope fo r raising revenue from taxes on trade in Estonia in the light of 
important free trade agreements which covered a large share of Estonia's foreign trade. 
8. In response, the representative of Estonia recalled that as a way to improve the 
competitiveness of domestic industries at the present time Estonia did not apply import or export duties.  The main sources of government revenue in 1997 were the Value Added Tax (47.9 per cent), 
income taxes (25.4 per cent), and excise taxes (17.2 per cent). 
Foreign Exchange and Payments
 
9. Some members of the Working Party requested  up-to-date information on Estonia's foreign 
exchange regime, i.e. the determination of the ex change rate, convertibility, availability of foreign 
exchange for trade and payments purposes, and the retention of foreign currency. 
10. The representative of Estonia confirmed that Estonia, as a member of the International 
Monetary Fund, followed internationally acce pted monetary rules. Since June 1992, the 
Estonian Kroon had been pegged against the Deutsche mark at the official rate of 8 kroon to 1 DM, 
with a technical fluctuation limit of 3 per cent.  Th e fixed exchange rate was enshrined in the Law on 
the Security of the Estonian Kroon;  a devaluation required approval by Parliament.  He also said that 
the Bank of Estonia guaranteed free exchange with in Estonia of the Kroon at the official rate 
according to current needs of customers for convertib le currencies.  Non-convertible currencies were 
obtained at commercial banks.  The last restrictions  on current account transactions had been lifted in 
March 1994, when Estonia accepted the obligations under Article VIII of the Articles of Agreement 
of the International Monetary F und.  Capital account transactions we re unrestricted, but exports of 
cash and securities were subject to a customs declaration. 
Investment Regime  
11. Some members of the Working Party sought info rmation on Estonia's strategies in attracting 
foreign investment and in the application of any restrictions or conditions attached to foreign WT/ACC/SPEC/EST/2/Rev.3 
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investment and to land ownership.  The representa tive of Estonia replied that no specific promotion 
programmes were envisaged;  foreign investments we re encouraged through an open, non-restrictive 
regime.  The Tallinn Stock Exchange had been established on 31 May 1996.  The Government had 
established a Foreign Investment Agency in 1994, pr oviding various services to foreign investors.  
The Agency had been restructured in 1997, an d was now operating under the Estonian Trade and 
Investment Board.  Estonia had concluded bila teral agreements on investment promotion and 
protection with the following countries: Austria, Belgo-Luxembourg Economic Union, China, Czech 
Republic, Denmark, Finland, France, Germany, Is rael, Latvia, Lithuania, Netherlands, Norway, 
Poland, Sweden, Switzerland, Ukraine, United Kingdom , and the United States.  He added that the 
procedures for registration of companies in Est onia distinguished between domestic and foreign 
investment in only six areas namely, mining;  power engineering, gas and water supply;  
administration of waterways, ports, dams and sim ilar structures;  railways and air transport;  
telecommunication and communication network;  a nd retail trade in medicines;  where foreign 
investors would need a "Foreign Investment Licence"  from the Ministry of Finance while a "Licence 
of Activity" was required for domestic investors.  The Foreign Investment Licence and the Licence of 
Activity carried the same rights, the procedural diffe rence being the issuing authority.  The criteria for 
determining whether or not to grant these two types of licence were identical.  He confirmed that the 
differentiation between foreign and domestic  investment in the communications and 
telecommunications sector was of technical nature and did not affect negatively the market access and 
national treatment commitments ma de in Estonia's GATS schedule. 
12. The representative of Estonia added that when State enterprises were sold against 
privatization vouchers majority stakes were offered to  "core" investors, i.e. majority shareholders 
(domestic or foreign), who were selected by an op en bid.  In purchasing State-owned enterprises 
investors (domestic or foreign) might undertake spec ific commitments with regard to the amount of 
capital to be invested and minimum workforce ("perf ormance guarantee").  The Estonian Privatization 
Agency checked the compliance w ith agreed conditions.  The performance guarantee did not extend 
to local content or export requirements. 
13. Regarding purchase of land, the representativ e of Estonia said that foreign commercial 
undertakings would need permission from local aut horities, and permits would only be granted when 
the branch of a foreign commercial undertaking had been entered in Estonia's Commercial Register.  
Non-residents were not allowed to purchase land in  border areas and on Es tonia's islands, except on 
the four largest islands (Saaremaa, Hiiumaa, Vormsi and Muhu).  In these areas the purchase of land 
required special permission of the Government.  Non-residents would be permitted to buy land 
provided the purchase was not in conflict with the inte rests of the State, local governments or national 
security.  WT/ACC/SPEC/EST/2/Rev.3 
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14. Concerning taxation of foreign investment the representative of Estonia said that the Income 
Tax Law allowed losses to be carried forward up to five years.  The Income Tax Law applied to 
income earned in and outside Estonia by residents,  and income derived from Estonian sources by non-
residents.  Revenue could be repatriated freely.  [The representative of Estonia confirmed that Estonia 
applied national treatment with respect to direct taxation and did not use national taxation for export 
promotion or performance. 
15. The representative of Estonia confirmed that from the date of accession Estonia would 
continue to apply the national treatment principle wi th respect to direct taxation, in accordance with 
its obligations under the WTO.]  [The representati ve of Estonia confirmed that Estonia applied 
national treatment with respect to direct taxation and Estonia would continue to apply the national 
treatment principle in the case of amendments to the tax regime in the future.  He further confirmed 
that Estonia did not use national taxation for expor t promotion or performance.]  The Working Party 
took note of this commitment. 
State Ownership and Privatization  
16. Some members of the Working Party request ed details concerning progress in Estonia's 
privatization programme and plans to retain Stat e ownership in enterprises or sectors.  Further 
questions addressed relations between the State and company management, the application of 
competition legislation to State-owned enterprises, ba nkruptcy or enterprise diss olution provisions in 
Estonian legislation and general or exclusive funds  available for State-owned enterprises.  A member 
requested a detailed report on firms remaining in Government hands, the nature of goods they 
consumed, exported or distributed; and a report on plan s, as appropriate, to complete the privatization 
process.  To ensure full transparency, Estonia s hould keep WTO Members informed about progress in 
privatization, and provide periodi c reports on developments in pr ivatization and economic reform 
issues as relevant to its obligations under the WTO. 
17. The representative of Estonia said that an ente rprise was considered privatized when the 
majority share holding was in private ownership (i.e. not including assets held by the Estonian Privatization Agency).  According to this definiti on all agricultural enterprises had been privatized by 
January 1995, and more than 90 per cent of all indus trial enterprises by August 1996.  Companies had 
been sold in 16 tender rounds with successful bidde rs offering guarantees with regard to investment 
and employment.  The public offering of shares had be gun in mid-1994;  in a public offer the majority 
stake was sold to a local or fore ign "core" investor.  The Estonian Privatization Agency became the 
temporary owner of the shares in the interim period needed for selection of "core" investors or sale of minority stakes. WT/ACC/SPEC/EST/2/Rev.3 
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18. The representative of Estonia provided informa tion on progress in privatization of State 
enterprises, summarized in Table 1.  Privatization wa s entering its final stage, involving privatization 
of major infrastructure services such as communicat ions, transportation and energy supply.  These 
enterprises would be privatized in accordance with  a program established through Government Order 
No. 155-k of 20 February 1996. The Government ha d confirmed a final list of companies to be 
privatized.  In all, 18 enterprises were sold in 1997.  However, the main task in 1997 was to prepare 
the privatization of Eesti Energia , Eesti Põlevkivi , the operational parts of Estonian Railways and the 
privatization of land.  Eesti Energia  and Eesti Põlevkivi  were complex privatization projects which 
were unlikely to be completed before 2000.  Estonia also intended to privatize the Port of Tallinn and 
Estonian Telecom. 
Table 1:  Information on Progress in Privatization of State Enterprises
 
Year 1993 1994 1995 1996 1997 
Number of enterp rises sold through: 
- privatization contracts 54 215 142 43 18 
- open bids 252 126 120 84 64 
- public sales of shares 0 1 16 16 6 
Revenue raised from:  (EEK million) 
- privatization contracts 353.2 1,330.4 919.1 474.5 1,295.4 
- liabilities accepted by the buyers 195.6 700.2 617.9 230.3 416.3 
- investment guarantees 236.8 858.5 1,002.9 453.6 1,714.9 
- total obligations accepted by new 
 owners 922.0 3,272.7 2,799.1 1,177.5 0.0 
- open bids 122.8 68.2 79.8 148.7 160.6 
- public sale of shares  99.9 604.5 662.1 944.5 
Privatization contracts:   
- number of jobs under employment  guarantees  
9,099  
25,573  
17,279  
1,274  
2,929 
19. The representative of Estonia said that some pr ivatization tenders had only been published in 
Estonia, but foreign investment  had only been restricted in the case of enterprises processing 
agricultural commodities or offering services to fa rmers.  These companies were now owned by 
farmers' co-operative societies. 
20. In response to questions concerning the appoint ment and dismissal of the management of 
State-owned enterprises, the representative of Estonia said that both the Minister of Finance and the 
Minister in charge of the Ministry managing the State-owned shares of a company had the right to appoint the members (State representatives) of th e administrative council or board of a State-owned 
enterprise or joint stock company.  The manageme nt was appointed by the board according to the 
company's by-law.  The administrative council or board could dismiss the general director of the enterprise;  council or board members were released  by the Government or the appointing Ministry.   WT/ACC/SPEC/EST/2/Rev.3 
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The provisions of the Law on Competition, including its sanctions, applied equally to private and 
State-owned enterprises.  Since 1 September 1995, the Civil Code and the Commercial Code 
contained procedures for the liquida tion of enterprises.  The representative of Estonia confirmed that 
State-owned enterprises acted on a purely commercial basis and were required to make their purchases and sales solely in accordan ce with commercial considerations, and the purchases and sales 
of State firms, either for their own use or for use in the production process, were not considered 
government procurement.  The representative of Es tonia further confirmed that their directors and 
administrative council or board were not govern ment employees, even though they could be 
dismissed or released by the Government or the appointing Ministry.  The State-owned enterprises 
could not be considered to be in State trading ac tivities because they did not enjoy any exclusive or 
special privileges in the sense of Article XVII of GATT 1994 (see also paragraph [96] in the section 
"State-trading").  They were not subject to any control by the Government, nor to Government 
directives in relation to their operations.  Their ope rations were not funded by the State budget, and 
the Government had no right to intervene in the da ily operations of these enterprises.  State-owned 
and private enterprises had equal access to Governme nt funds, i.e. the Export Credit Fund, the Fund 
of Credit to Agriculture and Rural Life, the F und of Credit to Small Enterprises and the Innovation 
Fund. 
21. [The representative of Estonia said that Estonia would provide annually to WTO Members 
information on developments in its programme of privatization as long as the privatization 
programme was in existence.  The Worki ng Party took note of this commitment.] 
Pricing Policies
 
22. Some members of the Working Party request ed information on the process of price 
liberalization in Estonia and the extent of any re maining controls on prices for goods and services.  
Estonia was requested to provide a description of exis ting price controls;  list the affected products by 
HS tariff line with reference to the legal provisions u nder which controls were a pplied;  provisions, if 
any, for border charges that would increase import prices;  and the conditions under which the authority to control prices was to be exercised. 
23. The representative of Estonia confirmed that pr ices of all goods and services were determined 
freely by market forces except for oil-shale and elect ricity.  The prices set for these items, valid as of 
18 November 1997 for electricity and as of 1 May 1997 for oil shale, are reproduced in the Annex 
(Tables 2 and 3).  He added that price controls on oil-shale and electricity were subject to gradual 
deregulation programs;  prices would approach world market levels with due regard to the balance 
between the required return on the invested capital and the interests of consumers.  He also noted that WT/ACC/SPEC/EST/2/Rev.3 
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the present producers of energy, heating and oil- shale were not monopolies since there was no 
prohibition for anybody to start similar operations in Estonia or offer a competitive solution for the 
entire Estonian energy system including price reform.  The legal basis for the price controls were the 
Price Law of 1989 and the Decree of the Ministry  of Economic Affairs No. 7 of 15 May 1996.  
Heating and local transport charges were regulated to some limited extent at the level of municipalities. 
24. The representative of Estonia said that Estonia could not foresee any further conditions for the 
application of any price controls , including those for imports, except for those in place for electricity 
and oil-shale.  These incumbent price controls cove red only domestic transactions via the facilities of 
Eesti Energia  and Eesti Põlevkivi .  [The representative of Estonia confirmed that prices for goods and 
services in every sector of Estonia were determined  freely by market forces with the exception of 
those listed in Tables 2 and 3 attached to this report.] 
25. The representative of Estonia confirmed [that prices for goods and services in every sector of 
Estonia were determined freely by market forces w ith the exception of those listed in Tables 2 and 3 
attached to this report.  He added] that pri ces for goods and services other than for oil-shale and 
electricity would not be subject to State control.   He confirmed that Estonia would apply such 
controls, from the date of accession without recour se to a transition period, in a WTO-consistent 
fashion, and would take account of the interests of exporting WTO Members as provided for in Article III.9 of the GATT 1994.  Estonia would pub lish any list of goods and services subject to State 
price controls in the Official Journal " Riigi Teataja"  (State Gazette), including any changes regarding 
existing price controls on oil-shale and electri city.  The Working Party took note of these 
commitments.   
Competition Policy
 
26. Some members of the Working Party requested a detailed description of Estonia's competition 
policy, including the provisions in the Law on Comp etition which prohibits unfair trade practices and 
the authority of the Competition Board to permit agreements restricting competition. 
27. In response, the representative of Estoni a said that the Law on Competition of 1993 
prohibited unfair trade practices with specific refe rence to the following six types of practices:   
 (i) misleading advertising; 
 (ii) incorrect use of the designation of a firm, trade mark or other attributes;  (iii) disparaging a competitor or his goods;  (iv) abuse of business secrets;  WT/ACC/SPEC/EST/2/Rev.3 
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 (v) preferences or influence obtained throu gh the use of an employee of another market 
  participant;  and 
 (vi) unlawful restricting or favouring of the sale of goods and services. 
Provisions concerning the abuse of a dominant  market position had entered into force on 
1 October 1993 and agreements a nd concerted practices restricting competition on 1 January 1994.  
The Estonian Competition Board was established unde r the Ministry of Finance in December 1993. 
The Board gave priority to the interest of c onsumers in its procedures for making decisions.  
Supervision of banking and insurance wa s carried out by a separate State body. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 28. The representative of Estonia stated that, in accordance with the Constitution, the activities of 
the Riigikogu  (Parliament), the President of the Republic, the Government of the Republic, and the 
judiciary courts were based on the principle of sep aration and balance of powers.  Legislative power 
was vested in the Riigikogu and executive power in  the Government of the Republic.  Justice was 
administered solely by the courts which acted independently as provided in the Constitution and the 
laws.  The main government entities responsible fo r the formulation and implementation of policies 
affecting foreign trade were the Ministries of Ec onomic Affairs;  Foreign Affairs;  Finance;  
Agriculture;  and Transport and Communications.  All local issues were resolved and managed by 
local governments  - municipalities and township s - operating autonomously.  The representative 
body of local government was the council, elected in free elections for a term of three years. 
29. Municipal and town councils had the right to impose local taxes according to the Law on 
Local Taxes.  Considered as local ta xes were the poll tax, local income tax, sales tax, boat tax, motor 
vehicles tax, commercial and advertisement tax, ta x on closing roads and streets, taxes for keeping 
pets and entertainment tax.  Sub-central Government s also had the right to provide "green box" and 
non-actionable subsidies from local budgetary revenues.   
30. The representative of Estonia stated that if Estonian laws or other acts should be found to 
contradict international treaties ratified by the Riigikogu  (Parliament), the provisions of the 
international treaty would apply.  The WTO Agreem ent would have the status of an international 
treaty.  The representative of Estonia confirmed th at sub-central entities had no autonomous authority 
over issues of subsidies, taxation, trade policy a nd any other measures covered by WTO provisions.  
He confirmed that the provisions of the WTO Ag reement, including Estonia's Protocol, shall be 
applied uniformly throughout its customs territory and other territories under its control, including in 
regions engaging in border trade or frontier tra ffic, special economic zones, and other areas where 
special regimes for tariffs, taxes and regulations are established.  He added that when apprised of a WT/ACC/SPEC/EST/2/Rev.3 
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situation where WTO provisions were not being ap plied or were applied in a non-uniform manner, 
central authorities would act to enforce WTO provisions without requiring affected parties to petition 
through the courts.  The Working Party took note of these commitments. 
POLICIES AFFECTING TRADE IN GOODS Trading Rights
 
31. The representative of Estonia said that fro m 1 September 1995, the Commercial Code had 
replaced the Enterprise Law.  The Commercial C ode defined five types of business association 
(general partnership, limited partnership, limite d liability company, joint stock company and co-
operative association) and the individual private entr epreneur, and stipulated procedures for opening a 
foreign company's branch office in Estonia.  A firm obtained the relevant rights and obligations, becoming legally a subject of Estonian law, thr ough registration in the Commercial Register.  An 
entry in the Commercial Register was made upon app lication.  Registration was applied uniformly to 
all firms, including those which had applied for a Foreign Investment Licence, covering all types of 
business operations.  A trader submitted the required documents and the application, with notarized 
signatures, to the registrar.  An enterprise wish ing to perform business in an area which required a 
Licence of Activity would also need  to obtain such a licence and submit it to the registrar.  The 
Commercial Register was to be kept by local city cour ts.  The registrar had no right to deny an entry if 
the applicant had submitted all necessary documenta tion in compliance with the requirements. 
32. Enterprises set up under previous legislation, not  meeting the requirements of the new Code, 
had to be restructured or terminated by 1 Sept ember 1997.  Stricter mandatory capital requirements 
would apply from 1 September 1999.  The Commercia l Code did not contain any provision which was 
inconsistent with the national treatment principle;  all its provisions applied equally to domestic and 
foreign-owned companies. 
33. The representative of Estonia confirmed that the former State monopoly in foreign trade had 
been abolished and that no restrictions existed on the right of foreign and domestic individuals and 
enterprises to import and export goods within Est onia's customs territory, except as provided in WTO 
Agreements.  He confirmed that individuals and firm s were not restricted in their ability to import and 
export based on their registered scope of business, and the criteria for enro lment in the Commercial 
Register of companies in Estonia were genera lly regulated in the Commercial Code which was 
published in the Official Journal " Riigi Teataja"  (State Gazette).  There was no special system of 
registration of persons or firms to engage in importation, except for those businesses covered by 
activity licences, in which case anybody fulfilling a set of objective criteria (e.g. relevant education, a 
place to carry out the activity, fulfilling the sanitary  requirements, clean tax record, etc.) could have  WT/ACC/SPEC/EST/2/Rev.3 
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such a licence.  There was no differentiation betwee n foreign-owned and domestic  firms for either the 
non-automatic or automatic (obligation to announ ce the beginning of the business activity) activity 
licences. 
34. [The representative of Estonia confirmed that from the date of accession Estonia would 
ensure that its laws and regulations  relating to the right to trade in goods and all fees, charges or taxes 
levied on such rights would be in full conf ormity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws 
and regulations in full conformity with these oblig ations.  The Working Party took note of this 
commitment.] 
1. Import Regulations  
Customs Tariff  
35. The representative of Estonia presented an in itial offer for market access negotiations on 
goods in April 1995 and submitted a Revised Genera l Offer for Market Access Negotiations on Goods 
in August 1995.  A number of members entered into  market access negotiations with Estonia.  The 
commitments agreed between Estonia and members of  the Working Party are annexed to the Protocol 
of Accession of Estonia which is reprodu ced in the Appendix to this Report. 
Customs Duties  
36. Noting that the current absence of a custom s tariff demonstrated Estonia's free trade 
determination, some members of the Working Pa rty commended the successful and effective outcome 
of Estonia's free trade policies and hoped that Esto nia would continue to pursue these same sound and 
progressive policies in the future. Some members al so asked Estonia to provide details about the 
imposition of customs duties and the criteria for application of zero and non-zero rates.  A member expressed concern  about Estonia's intentions in th is area and requested further clarification, noting 
that the Estonian authorities had drafted a Law on Customs Tariff although the draft law apparently 
remained unadopted.  This member requested that th e draft law be provided to the Working Party for 
review and comment, noting that progress on market access negotiations was contingent upon review 
of this document by members of the Working Party. 
37. The representative of Estonia said that custom s duties had not been required so far since 
prices of local resources had yet to reach the approxima te international level.  He reaffirmed the free 
trade orientation of his country noting, however, that Estonia would reserve the right to impose 
customs duties in the future, in full consistency w ith its concessions and commitments as a member of WT/ACC/SPEC/EST/2/Rev.3 
Page 14  
 
the WTO.  A ceiling tariff binding would offer Est onia the same regulatory opportunities in external 
trade as its main trading partners.  The represen tative of Estonia added that Estonia had imposed 
import duties on furs (16 per cent), sea scooters, small vessels and snow-scooters (10 per cent), and 
the exports of vintage cars presenting a cultural va lue (100 per cent) as provided for in Government 
Decree No. 200 of 10 July 1993.  However, all cust oms tariffs had been abolished in accordance with 
Government Decree No. 115 of 2 June  1998, effective as of that date. 
38. Parliament had adopted the Law on Customs Ta riff on 14 October 1997, and it had been in 
force since 22 November 1997.  The Law on Custom s Tariff, which was a framework law laying 
down the legal basis for the application of cust oms tariffs, included tariff ceiling rates for all 
commodities (at the four-digit level of the Harmon ized System).  When Parliament would ratify 
Estonia's Protocol of Accession to the WTO, the commitments annexed thereto in its schedule of 
concessions would prevail over the tariff ceiling rates provided in the Law on Customs Tariff, the text 
of which had been provided to the Working Party. 
39. [One member noted that notwithstanding the fact  that Estonia had for several years applied 
tariff rates of zero per cent on virtually all imports , it had insisted on establishing its bindings at 
higher rates, in some cases in excess of 50 per cent ad valorem .  This member sought information 
from Estonia on its intentions in terms of applied ta riffs after the conclusion of this negotiation, so 
that WTO members might have more transparency and certainty in the level of market access Estonia was actually prepared to offer.] 
Other Duties and Charges
 
40. The representative of Estonia stated that Estonia levied no duties and charges on imports 
other than ordinary customs duti es and charges for services rendered .  Any such charges applied to 
imports after accession would be in accordance with  WTO provisions.  He further confirmed that 
Estonia would not list any other charges in its G oods Market Access Schedule under Article II:1(b) of 
GATT 1994, binding such charges at "zero". 
Fees and Charges for Services Rendered  
41. Some members of the Working Party noted that Estonia had applied an ad valorem  tax to 
customs clearance operations and questioned whether the revised fee was commensurate with the 
approximate costs of the services rendered as provi ded for in Article VIII of the GATT 1994.  Estonia 
was also asked to provide details on the exemptions from the fee.   WT/ACC/SPEC/EST/2/Rev.3 
 Page 15 
 
 
42. The representative of Estonia informed the Working Party that, as of 1 April 1995, a 
0.5 per cent customs procedure tax had been replaced by a flat fee per customs declaration.  The 
representative of Estonia confirmed that a fixed f ee of EEK 200 per import and export declaration was 
charged as a State fee for customs declaration and th at this was the only fee or charge for services 
rendered currently in force.  The fee was collect ed by the National Customs Board as a procedure fee 
covering the cost of customs formalities.  [He confir med that the State fee for customs declaration was 
applied on a non-discriminatory basis to trade with all Estonia's trading partners.] 
43. The representative of Estonia said that the fee re lated only to the cost of customs formalities, 
and represented some 1.14 per cent of all revenue co llected by Estonian Customs during 1997;  other 
revenue was derived from excise taxes (19.51 per cent), value added tax (79.22 per cent), customs 
duties (0.01 per cent) and other fees (0.12 per cent).  The fee was levied on imports from all trading 
partners, but not on transit trade or goods in  customs warehouses, re-exports after customs 
warehousing, goods declared by physical persons, or  preliminary declarations.  Also exempt were 
goods for official use by foreign diplomatic represen tations, consular representations or international 
organizations;  printed matter and information carri ers addressed to libraries;  irrecoverable economic 
aid;  humanitarian aid received by the Estonian Red Cross;  containers, pallets or other kind of 
transferable containers and medical and laborator y equipment for emergency aid (exported with an 
obligation to re-import in unchanged state and import ed with an obligation to re-export in unchanged 
state). 
44. The representative of Estonia confirmed that [the  State fee for customs declaration described 
in paragraphs [42 and 43] was applied on a non-discrim inatory basis to trade with all Estonia's trading 
partners.  He further confirmed that,] from the date of accession,  Estonia would not reintroduce an 
ad valorem  customs fee.  The State fee for customs decl aration would be applied in conformity with 
WTO obligations,  in particular Articles VIII and X of the GATT 1994.  The level of the applied fee 
would not exceed the approximate cost of processi ng import and export declarations, revenues from 
the fee would be used solely for customs processi ng of imports and exports, and total annual revenue 
from collection of the fee would not exceed the approximate cost of customs processing operations for the items subject to the fees.  [He confirmed th at revenues from the State fee were not used for 
customs processing of imports exempted from the fee.]  [He confirmed that the cost of processing 
imports exempted from the fee would not enter the ca lculations when the amount to be charged was 
decided.]  Information regarding the application and level of the fee, revenues collected and their use, 
would be provided to WTO Members upon request .  The Working Party took note of these 
commitments. WT/ACC/SPEC/EST/2/Rev.3 
Page 16  
 
Application of internal taxes to imports
 
45. Some members of the Working Party noted that the excise taxes  for certain domestic and 
imported tobacco products and alcoholic beverages were different.  These members requested Estonia 
to phase out all measures inconsistent with Ar ticle III of the GATT 1994.  Some members also 
questioned the conformity of Estonia's excise tax on automobiles with Articles III, VII and VIII of the 
GATT 1994 and the WTO Agreement on Customs Valua tion and requested details about the new tax 
regime.  Estonia was also asked to provide details  on excise tax exemptions.  Some members held the 
view that excise tax exemptions for small domestic  producers of beer (annua l domestic production not 
exceeding 5,000 dekalitres) and of wine (annual production not exceeding 100 dekalitres),  and the 
exemption from the excise tax on domestically-own ed second-hand motor vehicles were inconsistent 
with the national treatment provision of Article III of the GATT 1994.  In their view, Estonia would 
need to change its excise tax legislation to bring it into conformity with Article III of the GATT 1994. 
46. The representative of Estonia described the rat es of excise tax applied in 1997 on tobacco, 
petroleum products, alcohol, motor vehicles and p ackaging materials (Tables  4 and 5).  These tax 
levels were considered optima l and no reductions were foreseen upon accession to the WTO.  An 
excise duty of 16 per cent on furs and fur products, levied only on domestic producers, had been 
eliminated. 
47. The representative of Estonia said that accord ing to amendments to the Law on Alcohol 
Excise Tax, the excise rates on domestic and impor ted beer were equalized on 1 December 1996. 
However, small-scale producers of beer - producers with annual production not exceeding 
500,000 dekalitres - were subject to a lower rate of  excise duty as a regional development measure.  
The small scale producers covered only 9 per cent of the Estonian domestic beer market.  The lower 
tax rate would apply also to imported beer pr ovided the manufacturer provided the following 
documentation:  (i) the official name, address, cont act address and telephone number of the company;  
(ii) the annual production of the previous year;  (iii) the name, address, contact address and telephone 
number, title and original signature of the liable pe rson;  and (iv) date.  The Law on Alcohol Excise 
Tax was amended with effect from 1 July 1997, with  lower rates of excise tax applying for producers 
with annual production below 2 million decalitres (Table 4). 
48. The representative of Estonia confirmed that the Law on Alcohol Excise Tax provided 
exemptions from excise tax for ve ry small-scale producers whose annual production of beer did not 
exceed 5,000 dekalitres or whose annual production of wine did not exceed 100 dekalitres.  These 
exemptions were necessary to maintain national traditi ons in the rural areas of Estonia.  The beer and 
wine produced in such small quantities were cons umed locally on a very  limited area.  These  WT/ACC/SPEC/EST/2/Rev.3 
 Page 17 
 
 
exemptions were considered to be measures of  regional development.  The production of such 
breweries and wineries was not significant in the fr amework of the total domestic production of beer 
and wine.  
49. The representative of Estonia added that excise taxes on alcoholic beverages were not 
collected on domestically produced alcohol export ed by the manufacturer directly or through a 
customs warehouse;  supplies to maritime or air transport vessels engaging in foreign travel;  
temporary importation by foreign juridical persons  of limited amounts of alcohol for fairs and 
exhibitions;  alcohol to be included in a data ba se on producer brands;  and alcohol imported for 
official functions under diplomatic status.  The excise tax on wines disti nguished between bulk and 
bottled imports to encourage bottling and further pr ocessing in Estonia.  Bottled wine was taxed at 
EEK 15.60 (over 15 per cent alcohol content by vol ume) or EEK 10.40 per litre (up to 15 per cent 
alcohol content by volume), and bulk wine at EEK 12 .50 or EEK 8.00, respectively.  Bulk wine was 
only taxed at the lower rate if the importer processed the wine into consumer packaging prior to sale, 
exchange, free sampling or self-consumption.  The Estonian National Tax Board supervised 
compliance with the rules.  Estonia had no domestic  production of wine from fresh grapes.  In 1997, 
imports of bulk wine amounted to  593,594 litres, constituting 6.9 per cent of all imports of wine. 
50. The representative of Estonia said that the exci se tax was fixed in Estonian Kroon per litre, by 
volume of pure alcohol (e.g. the tax on 1 litre of vodka (40 per cent vol.) amounted to EEK 1.15 x 40 = EEK 46), and assessed on the amount of alcohol sold, exchanged, for free transfer or 
own consumption.  Domestic manufacturers paid th e tax to the State Budget through the local Tax 
Board three times per month - on the third day foll owing each ten-day period - on the basis of their 
actual turnover during that period.  Importers were  required to pay the excise tax upon importation, 
before release for free circulation in Estonia. 
Table 4: Excise Taxes in Estonia
 
Tariff Heading, subheading Product description Tax rate (EEK) 
Alcohol 
 
  2203 00 011 
2203 00 091 
2203 00 101  2203 00 019 2203 00 099 2203 00 109 Beer annual production from 
5,000 to 500,000 decalitres (incl.): beer with an alcoholic content 
by volume up to 4.7% vol. 
 - beer with an alcoholic content by volume exceeding 4.7% vol   
  2.00* 
 
  2.50* WT/ACC/SPEC/EST/2/Rev.3 
Page 18  
 
Tariff Heading, subheading Product description Tax rate (EEK) 
 
 
 2203 00 011 2203 00 091 2203 00 101 
 
2203 00 019 2203 00 099 2203 00 109 Annual production from 
500,000 to 2,000,000 decalitres: 
beer with an alcoholic content by volume up to 4.7% vol.  - beer with an alcoholic content 
by volume exceeding 4.7% vol.  
 
 2.50*   
 
3.00* 
   2203 00 011 
2203 00 091 
2203 00 101  2203 00 019 2203 00 099 2203 00 109 Annual production surmounting  
2,000,000 decalitres: beer with an alcoholic content by volume up to 4.7% vol. 
 
- beer with an alcoholic content by volume exceeding 4.7% vol.  
  3.00* 
 
  3.50* 
2204 10 110 - 2204 21 101,  2204 21 110 - 2204 21 840,  2204 29 105, 2204 29 129, 2204 29 139, 
2204 29 179, 2204 29 189, 2204 29 429, 
2204 29 439, 2204 29 449, 2204 29 469, 2204 29 479, 2204 29 489, 2204 29 589, 2204 29 629, 2204 29 649, 2204 29 659, 2204 29 719, 2204 20 729, 2204 29 759, 
2204 29 819, 2204 29 829, 2204 29 839, 
2204 29 849, 2205 10 101, 2205 90 103. 2. Sparkling wines and other 
wines of fresh grapes with an alcoholic content by volume up 
to 15% 10.40* 
2204 29 101, 2204 29 121, 2204 29 131, 
2204 29 171, 2204 29 181, 2204 29 421, 
2204 29 431, 2204 29 441, 2204 29 461, 2204 29 471, 2204 29 481, 2204 29 581, 2204 29 621, 2204 29 641, 2204 29 651, 2204 29 711, 2204 29 721, 2204 29 751, 
2204 29 811, 2204 29 821, 2204 29 831, 
2204 29 841, 2205 90 101 - unbottled wines of fresh 
grapes with an alcoholic 
content by volume up to 15% 8.00* 
2204 21 109, 2204 21 870 - 2204 21 990, 
2204 29 109, 2204 29 879, 2204 29 889, 
2204 29 899, 2204 29 919, 2204 29 929, 2204 29 939, 2204 29 949, 2204 29 959, 2204 29 969, 2204 29 979, 2204 29 989, 2204 29 999, 2205 10 109 - 2205 10 900, 
2205 90 109,  
2205 90 902. 3. Sparkling wines and other 
wines of fresh grapes with an 
alcoholic content by volume exceeding 15% 15.60* 
2204 29 103, 2204 29 871, 2204 29 881, 
2204 29 891, 2204 29 911, 2204 29 921, 
2204 29 931, 2204 29 941, 2204 29 951, 2204 29 961, 2204 29 971, 2204 29 981, 2204 29 991, 2205 90 105, 2205 90 901. - unbottled wines of fresh 
grapes with an alcoholic 
content by volume exceeding 15% 12.50*  WT/ACC/SPEC/EST/2/Rev.3 
 Page 19 
 
 
Tariff Heading, subheading Product description Tax rate (EEK) 
2206 00 100-2206 00 510 
2206 00 591 4. Other fermented drinks (e.g. 
cider, berry, wine etc.) and their 
blends:  
2206 00 810, 2206 00 891 a)   with an alcoholic content by 
volume up to 15 %vol. 4.90* 
2206 00 592, 2206 00 892, 2204 30 109, 
2204 30 969, 2204 30 989 b)   with an alcoholic content by 
volume exceeding 15 %vol. 6.50* 
2207 10 009, 2208 
2106 90 200, 3302 10 100 5. Other alcohol 1.15** 
ex2207 10 000  
ex2208 90 910 ex2208 90 990 6. Rectified spirits  used in 
medicine, pharmaceutics, veterinary, scientific research 
and study purposes, the 
production of perfumery 0.20** 
per litre 
** per one %vol. of absolute alcohol in a litre 
Motor Fuel 
2710 00 271, 2710 00 272 2710 00 290, 2710 00 320 2710 00 341, 2710 00 342 
2710 00 343, 2710 00 344, 
2710 00 360 Petrol 2500 EEK per 
1000 litre* 3000 EEK per 
1000 litre** 
2710 00 660, 2710 00 671 , 2710 00 681  Diesel Oil EEK per kg* 
2.32 EEK per 
kg** 
2710 00 260, 2710 00 370 Aviation gasoline EEK per kg* 
1.50 EEK per kg** 
2710 00 510 Aviation petrol 3.12 EEK per 
kg* 3.50 EEK per kg** 
2711 12 940, 2711 12 970 2711 13 910, 2711 13 970  Liquid gas used as motor fuel 1.50 EEK per 
kg* 1.50 EEK per kg** 
2711 21 000 Compressed gas used as engine 
fuel 1.10 EEK per 
kg* 1.20 EEK per 
kg** 
2710 00 871 
 Motor oil 0.27 EEK per 
kg* 
0.38 EEK per 
kg** 
2710 00 679, 2710 00 689 Light motor oil 0.24 EEK per 
kg* 0.24 EEK per kg** 
Excise rate from 01.12.1997 **   Excise rate from 01.12.1998 
 WT/ACC/SPEC/EST/2/Rev.3 
Page 20  
 
Tariff Heading, subheading Product description Tax rate (EEK) 
Tobacco products 
2402 20 Filtered cigarettes 4.50* 
2402 20 Unfiltered cigarettes 4.50* 
2402 20 Russian cigarettes 4.50* 
2402 10 001 Cigarillos 4.50* 
2402 10 009 Cigars 4.50** 
2403 10 Smoking tobacco 4.50*** 
2403 99 100 Snuff 4.50*** 
2403 99 100 Chewing tobacco 4.50*** 
ex2403 99 900 Other tobacco products 4.50*** 
*applies to up to 20 cigarettes or cigarillos; a p ackage containing 21 - 40 cigarettes or cigarillos is 
marked with two revenue stamps etc. 
**applies to one cigar 
***applies to up to 50 grams of a tobacco produc t; a package containing 51 - 100 grams of a 
tobacco product is marked with two revenue stamps etc. 
Packaging* 
Alcohol and soft drink packaging**, 
depending on the material Per unit Per litre 
Glass and ceramics 0.50 2.00 
Plastics 1.00 2.00 
Metal 0.75 2.00 
Other 0.25 1.00 
Excise is calculated according to both rates a nd summarized. On packaging from which at least 
40% will be recycled excise will not be imposed until 31 December 1998. Starting from 1 January 1999 excise will not be imposed on packaging from which at  
least 60% will be recycled. 
**Soft drink packaging will be taxed starting from 1 December 1998. 
51. The representative of Estonia said that the Law on Stamp Duty established revenue stamps, 
issued against payment of taxes by the National Ta x Board at no extra charge, for goods subject to 
excises.  At present the Stamp Duty concerned only imported and domestically produced tobacco 
products.  For example, the excise tax per package of 20 cigarettes amounted to EEK 4.50.  Domestic 
firms paid excise taxes to the local Tax Board three times per month, taxes on imported tobacco 
products were payable before release for free circul ation in Estonia.  The representative of Estonia 
confirmed that excise rates for imported and domestically-produced tobacco products had been 
equalized on 1 January 1996 by bringing taxes on  domestic products up to the level applied to 
imports. 
52. Concerning the taxation of automobiles, a Member said that the exemption of used 
domestically owned automobiles from the excise ta x on used automobiles was inconsistent with 
Article III of the GATT 1994 and should be changed to bring into conformity.  In response, the 
representative of Estonia said that used automobiles imported into Estonia had been subject to a 10 per cent import tax levied in accordance with origin al invoices for legal persons and a valuation list  WT/ACC/SPEC/EST/2/Rev.3 
 Page 21 
 
 
for natural persons in order to avoid fraud.  The im port tax had been replaced by excise taxes levied in 
accordance with the Law on Motor Vehicle Ex cise Tax, in force since 1 April 1995. 
53. All new motor vehicles and used motor vehicles im ported into Estonia were subject to excise 
tax.  Passenger automobiles were subject to a tax based on age and cylinder capacity either at the time 
they were imported or at the point of manufacture w ithin Estonia.  The tax was therefore applied at 
the point of first sale, i.e. either at the time of importation or sale by domestic manufacturer.  The 
subsequent sale was not taxed.  There were no ma nufacturers of motor vehicles in Estonia except that 
buses were assembled in small quantities.  At pres ent there were no sales of domestically produced 
new or used motor vehicles.  According to the Law, if there would be manufacturers of motor 
vehicles, they would pay the excise tax upon sale, exchange, gratuitous transfer or self-consumption 
of motor vehicles.  According to the Law on Moto r Vehicle Excise Tax buses were not subject to 
excise tax.  Estonia considered the Law on Motor Vehicle Excise Tax to be in conformity with 
Article III of GATT 1994 because imported motor vehicles were treated as favourably as domestically produced motor vehicles.  In order to explain ho w excise duties on automobiles were calculated an 
example was included in Table 5.  The excise tax was designed to encourage importation of modern 
vehicles. 
Table 5:  Motor Vehicles
 
Tariff heading, 
subheading Product description Tax rate (EEK) 
1. Excise tax based on the cylinder capacity of motor vehicles 
8703 Motor cars and other motor vehicles principally
designed for the transport of persons (other than those
of heading No. 8702), including station wagons an d 
racing cars:  
8703 10 Motor vehicles specially designed for travelling on
snow; golf cars and similar vehicles 1 EEK/cc 
 Other vehicles, with spark-ignition internal 
combustion reciprocating piston engine of a cylinde r
capacity:  
8703 21 not exceeding 1,000 cc 1 EEK/cc 
8703 22 exceeding 1,000 cc but not 1,500 cc 1 EEK/cc 
8703 23 exceeding 1,500 cc but not 3,000 cc 1 EEK/cc 
8703 24 exceeding 3,000 cc 3 EEK/cc 
 Other vehicles with compression-ignition internal 
combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity:  
8703 31 not exceeding 1,500 cc 1 EEK/cc 
8703 32 exceeding 1,500 cc but not 2,500 cc 1 EEK/cc 
8703 33 exceeding 2,500 cc 1 EEK/cc 
8711  
(except under sub-heading 8711 90) Motorcycles (including mopeds) and cycles fitted with 
an auxiliary motor, with or without side-cars; side-cars 1 EEK/cc WT/ACC/SPEC/EST/2/Rev.3 
Page 22  
 
Tariff heading, 
subheading Product description Tax rate (EEK) 
2. Excise tax on used motor vehicles  
 of up to 12 years of age 100 EEK/year 
 from 13 years of age 150  EEK/year 
3. Excise tax on new motor vehicles  1,000 EEK 
Example: 
A used automobile, cylinder capacity 2 000 cm³, age 10 years and price according to the purchase 
documents is 10,000 EEK: 
10,000 - price according to the purchase documents 
2,000 - excise tax on the basis of the cylinder capacity 
1,000 - excise tax on the basis of age  
13,000 2,340 - VAT (18% from 13 000)
 
15,340 - price for importer after importation 
54. Some members of Working Party requested info rmation on the application of the value-added  
tax, including product and user-specific exemptions  and equal treatment fo r imported and domestic 
products.  Questions were also raised regardi ng the calculation of the VAT on motor vehicles. 
55. The representative of Estonia confirmed that th e value-added tax at an 18 per cent rate was 
applied equally to domestic goods a nd to all imports regardless of country of origin.  VAT on motor 
vehicles imported by natural persons had been base d on a standard valuation list until the excise tax 
system was changed on 1 April 1995.  He also c onfirmed that the exemptions for certain goods and 
services from the VAT were applied equally to do mestic and imported goods and services.  The 
following goods and services were exempt from VAT:   education and advanced training, postage 
stamps and postal services, medical services, banking  and insurance, funeral services and requisites 
gambling and lotteries, residential rent (letti ng of housing), medicines, medical goods, medical 
equipment, treatment of dangerous waste (since February 1995), social services and scientific 
research activities of universities and State research establishments funded from the State budget, and 
municipal sauna services.  Exports, subscriptions to periodicals published and printed in Estonia, 
theatre tickets, tickets to concerts of State concer t organizations and State collectives of performers, 
textbooks and workbooks for basic schools and gymnasi ums, had zero-rate VAT.  The Government 
had the right to grant exemptions from VAT on impo rts for non-profit purposes.  Imports required for 
official purposes of foreign representations and diplomats were not subject to VAT provided that 
foreign country granted the same right  to Estonia's representations abroad. 
56. Noting that certain legal entities with a turnover below EEK 250,000 were not registered as 
obligatory payers of VAT, a member questioned the rationale for this provision and its conformity 
with Article III of the GATT 1994.  In his view, th is exemption would appear  to constitute a subsidy 
program for sales of domestic goods by small Est onian businesses since imports  were assessed for the  WT/ACC/SPEC/EST/2/Rev.3 
 Page 23 
 
 
VAT in any case upon importation.  Estonia should revise its legislation in the near term or propose a 
method by which the deficiencies identified in  its excise tax and VAT application would be 
addressed.  The representative of Estonia replied that legal persons whose taxable base (except 
imports) exceeded the threshold value of EEK 250,000 in a calendar year were obliged to register 
with the Tax Board as persons liable to taxation.   Legal persons with a taxable base below the 
threshold value could also seek registration as liable to taxation at the Tax Board.  In his view, 
non-registration did not amount to a subsidy progra m for small Estonian companies for sales of 
domestic goods and services since only registered tax payers could claim a refund for VAT paid on goods and services used as inputs in their production.  Experience suggested that most firms making use of the threshold were small services providers with relatively low input costs. 
57. [The representative of Estonia confirmed that , from the date of accession, Estonia will apply 
its domestic taxes, including those on products listed in paragraphs [46 to 56] in strict compliance 
with Article III of the GATT 1994, in a non-discriminatory manner to imports regardless of country of origin and to domestically-produced goods.  In th is regard, the following actions will be taken 
concerning the current tax measures applied to alcoholic beverages and automobiles: 
(i)  The Law on Alcohol Excise Tax shall be re vised as follows (revisions are indicated by 
strikeout): 
§ 6.  Exemption from Excise Tax Excise tax shall not be charged on: 
(1)  Beer manufactured in Estonia
 by one  manufacturers, whose annual production of beer 
does not exceed 5,000 dekalitres; 
(2)  Wine with an alcoholic content by volume of up to 15 per cent vol., manufactured in 
Estonia  by one  manufacturers, whose annual production does not exceed 100 dekalitres. 
(ii)  The Law on Motor Vehicle Excise Tax shall be revised as follows: 
Excise rates currently in force based on the age of motor vehicle shall be replaced as follows: 
Used motor vehicle up to 10 years of age  EEK 1,000  Used motor vehicle from 11 to 12 years of age  EEK 100 per year Used motor vehicle from 13 years of age   EEK 150 per year WT/ACC/SPEC/EST/2/Rev.3 
Page 24  
 
The Working Party took no te of these commitments.] 
Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems
 
58. Some members of the Working Party sought information about the scope of "Licences of 
Activity" and also criteria in the granting of licences and related requirements;  licensing 
arrangements for trade in metals, spirits, tob acco and tobacco products, medicaments, weapons, 
ammunition, and explosives;  and the use of quantitative restrictions.  Some members expressed the 
concern that under certain circumst ances the conditions of sale of im ported products could be affected 
in a manner not consistent with Article III of the GATT 1994, for instance, trade in alcohol and 
tobacco required a preliminary declaration.  A memb er was concerned that Estonia's licensing system 
could be discretionary and requested that the draft Licensing Act be provided to the Working Party. 
59. The representative of Estonia said that licensing was not applied to restrict imports, the 
production or the wholesale of any product. The "preliminary declaration" requirement simply 
implied that all customs procedures and formalities n eeded to be completed be fore goods could cross 
the border. 
60. In document WT/ACC/EST/9 (Annex II), the representative of Estonia provided the 
information on import licensing procedures according to  the format applicable to WTO Members.  He 
stressed that general government policy was to ma intain a liberal economic policy and to reduce the 
areas of activity subject to licensing.  He noted th at Estonia considered the licensing arrangements to 
be consistent with the WTO Import Licensing Ag reement.  In its submission, Estonia listed 
41 economic activities in which operators needed a "Licence of Activity" for production and/or trade, 
valid for up to five years, and the corresponding re gulatory authority (Table 7 which is reproduced in 
the Annex).  Among the justificati ons listed were safety (e.g. medi caments);  a technological level 
adequate to comply with compulsory standards (e .g. alcoholic beverages);  registration requirements 
to prevent threats to security and the environment (e.g. firearms and vehicles);  and registration and 
accounting requirements for tax purposes (alcoholic bevera ges, tobacco, metals, etc.).  The criteria for 
the issuing of licences were published in the Official Journal " Riigi Teataja " (State Gazette).  Any 
person or firm fulfilling a set of objective criteria (e .g. regarding relevant education, proper place of 
business, sanitary requirements, a clean tax record, etc.) could obtain a "Licence of Activity".  He 
confirmed that the number of licences was not restricted and that licences were granted to national 
and foreign operators under equal conditions.  In each  licensed sector identical criteria, objectively 
neutral and systematically administered, were  applied regarding impor tation, exportation and 
domestic trade.  An expired licence could be renewe d or replaced by a new valid licence.  The fees for  WT/ACC/SPEC/EST/2/Rev.3 
 Page 25 
 
 
issuing licences were no higher than necessary to cove r the relevant costs.  In most cases the fee did 
not exceed EEK 1,000 while alcohol and tobacco licences cost EEK 10,000.   
61. The representative of Estonia confirmed that Estonia undertook to observe the relevant WTO 
provisions, in particular the Agreement on Import Licensing Procedures, in different acts covering 
specific fields of activity.  Activity licences had so  far been established under different regulations 
dealing separately with specific fields of activity.  Th e translated texts of rele vant legislation would be 
provided to interested WTO members as soon as possible. 
62. The representative of Estonia stated that the importation of products covered by activity 
licences were subject only to requirements consistent  with the WTO Agreement.  He confirmed that 
no restrictions existed on the right of foreign and domestic individuals and enterprises to import and 
export goods [and services] within Estonia's customs territory, with the exception of those specifically 
listed in Table 7.  The activity licenses enumerated in  Table 7 did not restrict foreign participation as 
they applied equally to foreign a nd domestic businesses.  Activity licences were administered for the 
purpose of ensuring product safety.  The criteria fo r granting activity licences differed according to 
the area of activity and had been published in the Official Journal " Riigi Teataja " (State Gazette).  
Upon request, the representative of Estonia would provi de a more detailed table containing references 
to relevant Government Regulations. The criteria for engaging in import and export trade in the 
restricted sectors were consistent with generally applicable restrictions placed on trade in similar 
domestically produced goods and based on crite ria published in the Official Journal " Riigi Teataja " 
(State Gazette).  The availability of activity licen ces was not restricted nor was the licensing applied 
to restrict imports, the production, wh olesale or retail trade in any product. 
63. [The representative of Estonia confirmed that Estonia would not introduce, re-introduce or 
apply quantitative restrictions or other non-tariff measures such as quotas, licences, prior permits or 
other requirements or measures that could act as quantitative restrictions on imports or exports.  
Balance of payments measures were not envisaged at  the present stage.  The representative of Estonia 
confirmed that activity licensing relating to the trad e in goods was carried out fully in line with the 
WTO Agreements, including the Agreements on Im port Licensing Procedures and Articles VIII and 
XI of the GATT 1994.]  The representative of Estonia confirmed that, from the date of accession, 
Estonia would not introduce, re-introduce or appl y quantitative restrictions on imports, or other non-
tariff measures such as licensing, quotas, bans and ot her restrictions having equivalent effect that 
could not be justified under the provisions of the WTO Agreement.  If balance-of-payment measures 
were ever necessary in the future, Estonia would impo se them in a manner consistent with the relevant 
WTO provisions, including Article XII of the GATT 1994 and the Understanding on Balance-of-
Payments Provisions of the GATT 1994.  The Wo rking Party took note of these commitments. WT/ACC/SPEC/EST/2/Rev.3 
Page 26  
 
Customs Valuation
 
64. Some members of the Working Party asked about the status of the Customs Valuation Law 
and its content.  Relating the request for info rmation to Estonia's implementation of the WTO 
Agreement on the Implementation of Article VII of the GATT 1994, these members enquired whether 
Estonia's Customs Valuation Law was fully cons istent with the WTO Agreement.  A member 
understood that Estonia was considering legisl ation which could provide for minimum prices on 
importation of certain food products  and questioned the conformity of such legislation with GATT 
rules.  Estonia also appeared to use price lists of reference prices to verify invoices.  This member 
reminded Estonia that the use of minimum import prices or reference prices was a violation of Article VII. 
65. The representative of Estonia explained that th e Customs Valuation Law had been adopted on 
8 February 1995 and had entered into force on 1 January 1996.  The delay had been necessary to 
undertake preparatory work for its implementation,  including practical arrangements such as the 
printing of documents, the training of customs officers,  informing traders, etc.  Estonia considered  the 
Law to be in full conformity with WTO rules,  including the WTO Agreement on the Implementation 
of Article VII of the GATT 1994. 
66. Estonia's response to the questionnaire on "Information on Implementation and 
Administration of the Agreement" was submitted in  August 1995 (WT/ACC/EST/4, annexes 1 and 6, 
listed in document WT/ACC/EST/5).  The representative of Estonia was asked to clarify provisions in 
the Customs Valuation Law relating to the use of transaction value between related parties 
(Article 4(3));  verification of transaction valu es between related parties based on test values 
(Articles 4(5)(4) and (5));  and a reference to mini mum customs values in Article 9(2)(4) of the Law.  
Estonia was also asked about the implementati on of Decision 4.1 of the Customs Valuation 
Committee concerning the valuation of carrier medi a bearing software for data processing equipment 
(the Software Decision). 
67. The representative of Estonia said that Estonia had introduced the provisions of the Software 
Decision.  A decree, issued by the Ministry of Finance on 11 January 1996, stipulated that only the 
cost of the carrier medium itself would be accounted for in the customs value.  He stated that the 
value of imported merchandise was determined in c onformity with GATT Article VII (2)(a) also in  
transactions between related parties;  test values we re used for the verification of the declared value 
with the actual value only at the request of the importer. 
68. The representative of Estonia assured members of the Working Party that the Law on 
Customs Valuation would be applied in full conformity with the WTO Agreement on the  WT/ACC/SPEC/EST/2/Rev.3 
 Page 27 
 
 
Implementation of Article VII of the GATT 1994.  In addition, he confirmed that Article 9(2)(4) of 
the Law would be applied consiste nt with Article VII (Valuation for Customs Purposes).  He stressed 
that Article 9(2)(4) of the Customs Valuation Law prohibited the setting up of minimum import 
values.  He underlined that Estonia did not have any measures in place which would be inconsistent 
with WTO rules, nor would Estonia introduce such measures in the future.  Estonia did not use measures such as minimum prices, reference prices or  lists of prices in order to calculate customs 
value or to verify invoices. 
69. The representative of Estonia confirmed that, from the date of accession, Estonia would apply 
fully the WTO provisions concerning customs valuation, including in addition to the Agreement on the Implementation of Article VII of the GATT 1994,  the provisions on the Treatment of Interest 
Charges in Customs Value of Imported Goods a nd for the Valuation of Carrier Media Bearing 
Software for Data Processing Equipment.  In acco rdance with these latter provisions, only the cost of 
the carrier medium itself would be accounted for in the customs value.  He stated that Estonia [did not 
and] would not use any form of reference price or fixed valuation schedule for the valuation of 
imports or to apply duties and taxes, and that all me thods of valuation used were in strict conformity 
with those provided for in the WTO Agreement on the Implementation of Article VII of the 
GATT 1994.  He further confirmed that, as an intern ational agreement, the provisions of the WTO 
Agreement on the Implementation of Article VII of the GATT 1994 would supersede domestic law 
after accession.  The Working Party took note of these commitments. 
Other Customs Formalities
 
70. The representative of Estonia confirmed that other customs formalities were applied in 
accordance with internatio nally accepted rules and were based on the Kyoto Convention.  He added 
that Estonia had been a member of the World Customs Organization since June 1992.  
Rules of Origin  
71. Some members of the Working Party requested in formation about the elaboration of rules of 
origin in Estonia whether in the context of free tr ade agreements or otherwise.  A member requested 
Estonia to confirm that its rules of origin for both preferential  and non-preferential trade complied 
fully with the WTO Agreement on Rules of Origin.  Estonia was asked to describe, in particular, 
measures consistent with the disciplines under Article 2 of the Agreement and the Common 
Declaration in Annex II of the Agreement. 
72. The representative of Estonia said that the drafti ng of rules of origin was a continuous process 
evolving in accordance with developments in th e Technical Committee on Rules of Origin of the WT/ACC/SPEC/EST/2/Rev.3 
Page 28  
 
WTO.  Due to the liberal foreign trade regime the el aboration of national rules of origin had not been 
considered essential in Estonia, but agreed rules of  origin were used in the framework of free trade 
agreements.  Estonia applied unified rules of origin  within the system of diagonal cumulative origin 
among the countries of the European Economic Area, Switzerland and ten associated countries in central and eastern Europe.  Members of the Working Party were supplied copies of the rules of origin 
of Estonia's free trade agreements with EFTA count ries;  the European Union, the Ukraine and the 
trilateral free-trade agreement with La tvia and Lithuania.  He said that the preferential rules of origin 
complied fully with the disciplines under the Common Declaration in Annex II of the WTO 
Agreement on Rules of Origin.  The Estonian author ities envisaged the elaboration of legislation on 
rules of origin along the lines of existing rules of  origin in preferential trade agreements and the 
suggestions and decisions of the Committee on Rul es of Origin of the World Customs Organization 
and the WTO Agreement on Rules of Origin.  Es tonia had not developed its own non-preferential 
rules of origin and was waiting for the new set of rules of origin to be elaborated by the WTO.  The new Customs Act that entered into force on 19 January  1998 provided the basis for enactment of those 
rules.  The non-preferential rules of origin would comply fully with the WTO Agreement on Rules of 
Origin. 
Anti-Dumping, Countervailing Duties, and Safeguard Regimes
 
73. Some members of the Working Party noted that  Estonia appeared not to have any specific 
anti-dumping legislation, but that an Anti-dumping Law, including counterva iling duties procedures, 
was in preparation.  In view of the uncertainty rega rding the date of entry into force of such a law and 
its content, Estonia was asked to submit draft le gislation for comment to members of the Working 
Party.  
74. The representative of Estonia confirmed that, at this point, Estonia did not have legal 
authority to apply anti-dumping duties, countervaili ng duties, and safeguards, and therefore did not 
use these measures to regulate trad e.  In response to a specific question the representative of Estonia 
clarified that while price dumping was mentione d among abuses of dominant position in Chapter III, 
Article 17 of the Law on Competition, the listed unfai r trade practices in the Act did not overlap with 
any pending anti-dumping statute.  He added that  no text of any Anti-dumping Law existed yet.  
Provisions on anti-dumping and countervailing meas ures were not included in the Law on Customs 
Tariff. 
75. The representative of Estonia confirmed that  Estonia would not apply any anti-dumping, 
countervailing or safeguard measure until it had implemented appropriate laws in conformity with the 
provisions of the WTO Agreements on the Impl ementation of Article VI, on Subsidies and  WT/ACC/SPEC/EST/2/Rev.3 
 Page 29 
 
 
Countervailing Measures, and on Safeguards.  In the elaboration of any legislation concerning such 
anti-dumping, countervailing and safegua rd measures Estonia would ensure their full conformity with 
the relevant WTO provisions, including Article VI and XIX of the GATT 1994 and the Agreements 
on the Implementation of Article VI, the Agreem ent on Subsidies and Countervailing Measures and 
the Agreement on Safeguards.  After such legislati on was implemented, Estonia would also apply any 
anti-dumping duties, countervailing duties and safe guard measures in full conformity with the 
relevant WTO provisions.  The Working Party took note of these commitments. 
2. Export Regulations  
Customs Tariffs, Fees and Charges for Services Rende red, Application of Internal Taxes to Exports  
76. Some members of the Working Party noted that  Estonia applied export taxes on metals and 
objects of cultural value and asked for a description a nd justification of these taxes.  In response, the 
representative of Estonia replied that a 100 per cent export tax had been levied on objects of cultural 
value, i.e. dating from before 1950, but this tax had been abolished by Government Decree No. 115, 
which entered into force on 2 June  1998.  Expor t taxes on metals had been abolished.  As of 
15 September 1998, controls on scr ap metal exports and radioac tive metal exports by a State 
monopoly had been abolished by Government Regula tion No. 200 "On the Approval of the Order of 
Issuing Activity Licences for Commercial Intermedia tion of Scrap Metal and Metal Waste", which 
granted access to any private enterp rise to trade in scrap metal, provided the enterprise fulfilled the 
conditions stipulated in the Regulation. 
77. [The representative of Estonia confirmed that  after accession to the WTO, Estonia would 
minimize the use of export taxes and any such taxes applied would be in accordance with the 
provisions of the WTO Agreement and published in the Official Journal " Riigi Teataja " (State 
Gazette).  Changes in the application of such measur es, their level, scope, or justification, would also 
be published in the Official Journal " Riigi Teataja " (State Gazette).  The Working Party took note of 
these commitments.] 
Export Restrictions  
78. Noting that the Ministry of Economic Affairs had the right to impose export quotas on certain 
goods, some members of the Working Party asked th e representative of Estonia to clarify licensing 
arrangements affecting trade in metals, spirits, tobacco products and medicaments and to justify 
export quotas/licences on gravel and clay.  Some members also sought clarification on Estonia's 
intentions regarding the use of non-tariff m easures on exports for emergency purposes.  The 
representative of Estonia replied that the Ministry  of Economic Affairs' right to determine export WT/ACC/SPEC/EST/2/Rev.3 
Page 30  
 
quotas had been eliminated.  The last remaining expo rt quota (on quartz sand) had been abolished and 
Estonia did not foresee any further quantitative regula tion of export trade.  As the export quota/licence 
on gravel and clay had been terminated on 1 Janua ry 1995, no justification would be required under 
GATT or WTO provisions and Estonia would seek no transitional period for this measure.  Export 
and import licences as such did not exist, but he re ferred to the earlier response regarding "Licence of 
Activity" (in paragraph [60] above).   He added that Estonia would not apply regulations on exports 
beyond WTO mechanisms. 
79. Export control measures (licences) on scrap metal and radioactive waste material did not 
carry any limitation of quantity.  Licences were issued automatica lly provided the applicant could 
prove that the goods had been obtained legally.  Failure  to do so could constitute a criminal offence.  
The monopoly rights of the former State Monopoly on trade in scrap metals and dangerous metal 
waste had been abolished by Government Regulat ion  No. 200 "On the Approval of the Order of 
Issuing Activity Licences for Commercial Intermedia tion of Scrap Metal and Metal Waste" as of 
15 September 1998, and the enterprise itself had been privatized.  All firms trading in scrap metal or 
radioactive metal waste were required to follow the rules established by the regulation.  [The 
representative of Estonia confirmed that all e xport quotas and licences and measures having similar 
effect had been eliminated.] 
80. The representative of Estonia confirmed that [all export quotas and licences and measures 
having similar effect had been eliminated and th at] any remaining export control requirements were 
fully consistent with WTO provisions, including thos e contained in Articles XI, XVII, XX and XXI of 
the GATT 1994.  The Working Party took note of this commitment. 
Export Subsidies
 
81. Some members of the Working Party sought information about subsidies, including tax 
incentives related to exports, the activities of the Export Credit Fund, the consideration of wide 
ranging use of export incentives, and existing or pla nned measures to tackle market disturbances or 
balance-of-payments problems.  The representative of  Estonia said that no tax incentives, including 
tax holidays, existed to promote exports.  He confirmed that loans from the Export Credit Fund 
carried 12 to 16 per cent annual interest, comparab le to the commercial interest rates of 12 to 
18 per cent in effect for short-term loans in Estonia in 1996.  Plans existed to develop the Fund into an 
Export Credit and Guarantee Board which would r eceive the initial capital injection from the National 
Budget.  Estonia would not consider wide ra nging export incentives, but, due to an increasingly 
negative trade balance, had the intention to intro duce moderate export incentive schemes.  Enterprise- 
or sector-specific subsidies were not envisaged;  the schemes would be of horizontal nature and  WT/ACC/SPEC/EST/2/Rev.3 
 Page 31 
 
 
allocations would be based on objec tive economic criteria.  The representative of Estonia added that 
the incentives schemes would be applied in conformity with WTO requirements.  
82. The representative of Estonia stated that from the date of accession Estonia would not 
maintain any export subsidies which met a definiti on of a prohibited subsidy within the meaning of 
Article 3 of the Agreement on Su bsidies and Countervailing Measures, and would not introduce such 
prohibited subsidies from the day of accession.  The Working Party took note of this commitment. 
3. Internal Policies Affecting Foreign Trade in Goods  
Industrial Policy, including subsidies  
83. Some members of the Working Party requested details on any subsidies to private or State-
owned enterprises and asked whether Estonia mainta ined any industry support to be notified in 
accordance with the Agreement on Subsidies and Countervailing Measures.  Some members also 
asked Estonia to state its attitude regarding future r esort to subsidies in the pursuit of industrial policy 
and clarification of the intention to restore historical trade links. 
84. The representative of Estonia said that the restor ation of historical trade links would involve 
free and balanced economic links with countries offering Estonia the best possibilities and real 
potential for mutually beneficial economic partne rship.  Estonia confirmed that it had some 
programmes providing subsidies to industries, in  particular the Innovation Foundation, which 
provided grants for research and developmen t activities, and the Law on State Support for 
Entrepreneurship, which regulated State support to sm all and medium sized enterprises.  In this latter 
case support - loans and loan guarantees  - were made  available by an eleven-member Council.  The 
Estonian Innovation Foundation was a non-profit orga nization, established by the Government.  Its 
operations were coordinated by the Estonian Research and Development Council, a collective 
advisory body to the Government.  The main func tions of the Foundation were to initiate and fund 
State technology programmes;  finance project s to improve production technology at the pre-
industrial stage;  promote technical and technologi cal research and development;  and to support the 
development of science and technology parks and production infrastructure.  The Foundation provided grants for applied research (up to 50 pe r cent of project costs) and loans for industrial 
projects (maximum 75 per cent of project costs).  In the period 1991-1995, the Estonian Innovation 
Foundation had supported 214 projects, providing gr ants totalling EEK 12 million and loans of 
EEK 80 million;  the Foundation's budget for 1997 amounted to EEK 20 million.  Estonia provided a 
draft notification under Article 8.3 (Non-actionable subsidies) of the Agreement on Subsidies and 
Countervailing Measures regarding the activities of  the Estonian Innovation Foundation to the 
Working Party (document WT/ACC/EST/20). WT/ACC/SPEC/EST/2/Rev.3 
Page 32  
 
85. The representative of Estonia confirmed that an y subsidy programmes would be administered 
in line with the Agreement on Subsidies and Countervailing Measures and that all necessary 
information on notifiable programmes would be notified to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the Agreement upon entry into force of 
Estonia's Protocol of Accession.  The Working Party took note of this commitment.  
Technical Barriers to Trade, Sanitary and Phytosanitary Measures
 
86. Some members of the Working Party inquired about the application of international and 
national standards in Estonia and the compliance with various provisions of the Agreement on 
Technical Barriers to Trade (TBT) and on Sanitary  and Phytosanitary Measures (SPS).  Regarding 
agriculture, some members asked about the objectives of the Food Law and the resort to sanitary and 
phytosanitary measures, with particular referenc e to Government Regulations 300 and 340 of 1992. 
87. The representative of Estonia supplied information on technical barriers to trade in document 
WT/ACC/EST/9 (Annex III) and a notification on sanitary and phytosanitary measures.  The Draft Law on Technical Regulations and Standards was in preparation and the enforcement of this Law was 
scheduled for 1999.  The National Standards Board of Estonia (EVS) was responsible for 
standardization issues.  The EVS was a corresponden t member of ISO and an affiliated member of 
CEN, the Estonian Electrotechnical Committee was an associated member of IEC and an affiliated 
member of CENELEC, and the Estonian Telecommuni cations Board had become a member of ETSI.  
The EVS had accepted the Code of Good Practice fo r the Preparation, Adoption and Application of 
Standards (Annex 3 to the WTO TBT Agreement), and this had encouraged the application of 
international and European standards.  Current Est onian standards were based mainly on standards of 
international organizations and on national standards of other countri es.  Estonian standards were 
harmonized with the regulation of the European Union and were generally voluntary, except the 
application of some standards (e.g. on purchasing requirements of milk, on fire safety, etc.) made 
mandatory by ministries' regulations and in the case of technical regulations on spirits (white vodka) 
and construction cement.  Former USSR criteria, th e so-called GOST standards, remained temporarily 
valid in some areas but were no longer mandatory.  All standards applied equally to domestic and 
imported products.  All informati on about the preparation of standards was published in the official 
bulletin of the National Standards Board "EVS Teataja".   Draft standards were available for comment 
at EVS. Conformity assessments were organized  in accordance with European requirements 
(EN 45000).  Acceptance of foreign certification was based on the principle of mutual recognition between the relevant body in Estonia an d its counterpart in another country.  WT/ACC/SPEC/EST/2/Rev.3 
 Page 33 
 
 
88. The representative of Estonia said that "high quality" and "internati onally competitive food" 
were key objectives cited in Estonia's Food Law, whic h was to serve as a basis for further legislation 
regulating food handling, quality, safety, control an d inspection.  A National Food Board had been 
established to deal with all matters concerning food  and nutrition policy, however, its tasks had been 
transferred to the Ministry of Agriculture in accordance with the amendments to the Food Law of 
26 June 1996.  The responsibilities of the Ministry th us included planning and analysis of the status of 
food and nutrition, elaboration of relevant stra tegic proposals, drafting laws on food and food 
handling, organization of food safety inspection, advising authorities certifying and testing food 
quality and safety, and elaboration and impl ementation of food monitoring programmes. 
89. The representative of Estonia added that border controls on plants and plant products were 
effected by the Plant Quarantine Department of th e Plant Protection Inspectorate in accordance with 
Government Regulation 300 (of 17 October 1992) on "Regulation of arranging phytosanitary control 
on the State border" and amendments to this d one on 19 October 1992 (Regulation No. 340) and 
31 March 1995 (Regulation No. 147) as well as th e Law on Plant Protection and the Temporary 
Regulation on the State Control, Sale, Export and Import of the Seeds of Field Crops, and the Law on 
Veterinary Services of 1992.  Sanitary and phytosan itary measures and the work of veterinary services 
were in accordance with the Codex of the OIE (Offi ce International des Epizooties), in which Estonia 
had been member since 1992.  Goods subject to vete rinary controls, border check points, requirements 
for veterinary certificates and the procedures for settling claims were laid down in a Decree of the 
Minister of Agriculture of 3 August 1994 and G overnment Regulation No. 17 of 10 April 1995.  The 
authorities considered the health and safety provisi ons of the Food Law to be consistent with the 
WTO Agreement on Sanitary and Phytosanitary Measures.  The new Food Law, that had been drafted and was currently being reviewed by Parliament, would include acceptance of exporters' certificates, 
issued in conformity with international principles of certification, at the border. 
90. Some members of the Working Party noted that  Estonia had adopted no laws, regulations or 
administrative procedures relating to the implemen tation and administration of the WTO obligations 
on  technical barriers to trade and that regulations concerning SPS we re being developed.  In their 
view, these procedures should be enacted by th e time of Estonia's accession to the WTO. 
91. The representative of Estonia said that Estoni a would provide copies of draft legislation 
related to technical barriers to trade and sanita ry and phytosanitary measures to Members for 
comment.  He confirmed that Estonia would establis h an Enquiry Point as required in Article 10 of 
the WTO Agreement on Technical Barriers to Trade;   its establishment at the National Standards 
Board of Estonia (EVS) was in preparation, and was anticipated to be operational by the end of 1998.  
The EVS had accepted the Code of Good Practice est ablished in Annex 3 of the TBT Agreement.  WT/ACC/SPEC/EST/2/Rev.3 
Page 34  
 
Programmes on the drafting of standards in Estonia were submitted to the ISO/IEC twice a year.  
Agencies drafting standards and conformity assessment or certification procedures took into account 
existing international standards or guidelines prior to  drafting domestic legislation, and would notify 
WTO Members at the draft stage and take into  account comments fro m WTO Members before 
finalizing regulations.  Estonia submitted informati on on national enquiry points to the Working Party 
in document WT/ACC/EST/19. 
92. The representative of Estonia provided a draf t notification under Article 15.2 of the TBT 
Agreement in April 1997 (document WT/ACC/EST/17).  The authorities had prepared a Draft Law on Technical Regulations and Standards, currently be ing processed in Parliament and foreseen to enter 
into force by early 1999.  This act would provide the legal and organizational basis for standardization 
activities and notification procedures in Estonia.  The Ministry of Agriculture would review the Food 
Law, the Law on Veterinary Services, the Law on Plant Protection, the Law on Grain, the Law on 
Consumer Protection and the Law on Common Health w ith a view to ensure their conformity with 
WTO requirements upon accession to the WTO, including the Agreement on Technical Barriers to Trade and the Agreement on Sanitary and Phytosanitary Measures.  [New versions of the Veterinary 
Services Act and the Plant Protection Act will be provided to the Working Party.]  
93. The representative of Estonia confirmed that Es tonia would apply all obligations under the 
WTO Agreements on Sanitary and Phytosanitary M easures and Technical Barriers to Trade from the 
date of accession without recourse to any transiti on period.  The representative of Estonia confirmed 
that procedures to grant licences for importing food we re being elaborated and would be finalized by 
the end of 1998 and that these procedures would be in full conformity with the provisions of the WTO 
Agreement on Import Licensing Procedures, notably its  Articles 2, 3 and 5.  The representative of 
Estonia added that licences in this connection would not  act to restrict the quantity of imports;  they 
would be granted automatically with the excepti on of conditions related to TBT and phytosanitary 
requirements.  The Working Party took note of these commitments. 
Trade-Related Investment Measures (TRIMs)
 
94. With reference to trade related investment me asures, the representative of Estonia confirmed 
that his Government applied the principle of national treatment.  He said that Estonia would not 
maintain any measures inconsistent with the TR IMs Agreement and would not introduce any such 
non-conforming measures in the future and would not invoke provisions in the Agreement that 
provide for the progressive elimination of such meas ures within a fixed period of time.  The Working 
Party took note of this commitment.  WT/ACC/SPEC/EST/2/Rev.3 
 Page 35 
 
 
State-trading  
95. Some members of the Working Party noted that a significant portion of Estonia's output and 
trade remained in State hands and that tobacco an d alcohol had been subject to State monopoly.  
Estonia was requested to notify under Article XVII an y de facto or de jure trade monopoly and trade 
activities of any State-owned firm benefitting from sel ective support or subject to State intervention. 
96. The representative of Estonia replied that follo wing extensive privatization State-owned firms 
accounted for less than 5 per cent of domestic trade.   The process of privatization was continuing and 
shares in privatized companies were traded activel y on the Tallinn Stock Exchange.  He stressed that 
the influence on international trade of the shares re maining in Government ownership was difficult to 
estimate as Estonian law did not allow the custom s authorities to disclose enterprise-specific trade 
information to any third party except the tax author ities.  Estimates based on trade per share were not 
meaningful in practice because of rapid changes in share ownership.  Therefore, he could only 
confirm a strong tendency for State-ownership to de crease as the State sold shares to the public to 
encourage the development of Estonia's stock market.  With the exception of Eesti Energia  and Eesti 
Põlevkivi , the representative of Estonia said that enterp rises part-privatized through the sale of State-
owned shares did not constitute a State trading ente rprise in the sense of Article XVII since they had 
no special rights or privileges in relation to any other enterprises.   
97. Estonia notified under Article XVII of the GA TT 1994 in its Information on State-trading 
(WT/ACC/EST/9 (Annex IV)) that a State monopoly ha d been established on scrap metal to control 
metal trade.  The purpose of the scrap metal monopol y (EMEX) was to prevent serious crime;  i.e. 
trade in metal stolen from unguarded installations and construction sites.  Such thefts had caused 
extensive damage to domestic infrastructure, in pa rticular to the operations of Estonian Railways, 
Estonian Energy and Estonian Telephone.  The mo nopoly could also be used to control trade in 
radioactive scrap materials.  Ho wever, the monopoly rights on trade in scrap metals and radioactive 
metal waste had been abolished by Government Regulation  No. 200 "On the Approval of the Order 
of Issuing Activity Licences for Commercial Interm ediation of Scrap Metal and Metal Waste", in 
force since 15 September 1998, and the enterprise itsel f had been privatized.  [The representative of 
Estonia stated that his Government had identified the trading activities of the firms Eesti Energia  and 
Eesti Põlevkivi  as subject to the provisions of Article XVII of the GATT 1994.] 
98. The representative of Estonia [stated that his Government had identified the trading activities 
of the firms Eesti Energia  and Eesti Põlevkivi  as subject to the provisions of Article XVII of the 
GATT 1994.  He] confirmed that it was the intent of his Government to eventually eliminate its State 
trading rôle.  He further confirmed that after accession to the WTO, Estonia would observe the WT/ACC/SPEC/EST/2/Rev.3 
Page 36  
 
provisions of Article XVII of the GATT 1994, the WTO Understanding on that Article, and 
Article VIII of the GATS regarding State trading,  in particular abiding by the provisions for 
notification, non-discrimination, and the applic ation of commercial considerations for trade 
transactions.  The Working Party took note of these commitments. 
Free Zones, Special Economic Areas
 
99. The representative of Estonia said that there we re currently no free trade zones in Estonia. 
Government Procurement  
100. Some members of the Working Party asked whet her Estonia intended to join the Agreement 
on Government Procurement and re quested details about Estonia's procurement legislation, its 
coverage and its conformity with WTO principles.  The representative of Estonia said that the Law on 
Public Procurement had been adopted in May 1995 and entered into force on 1 January 1996.  The 
Law was in line with WTO provisions.  The Govern ment had established a Pu blic Procurement Office 
to coordinate and administer public procurement ac tivities.  The legislation defined four principal 
procedures of procurement;  open tender, two-stage tendering, negotia ted tendering, and single-source 
procurement.  Open tender implied that any inte rested supplier could submit a bid and no negotiation 
would take place between the procuring entity a nd any tenderer.  Two-stage tendering would be 
applied when all technical and econom ic factors could not be assessed a priori  or the procurement 
carried uncertainty regarding research and deve lopment costs.  Negotiated tendering would be 
organized in procurement subsequent to an inconc lusive round of open tender (no bids received or all 
tenders rejected) or in case public procurement i nvolved urgent works or public procurement was 
performed by the diplomatic representation of the Re public of Estonia, i.e. procurement taking place 
outside Estonia.  Prior to the commencement of the tendering the procuring entity should notify the Public Procurement Office in writing about the performance of the tendering.  Single-source 
procurement could only take place in the existence of sole suppliers, extraordinary needs or time 
pressure;  as a continuation of previous procurement contracts;  and when the supplier would carry out 
research and development resulting in prototypes.  Ag ain, the relevant notice in writing should be sent 
to the Office prior to the tendering procedure.  In  accordance with the amendments to the Law on 
Public Procurement of 1 January 1997, the observan ce of the rules established in the Law on Public 
Procurement were not obligatory when the objectiv e of the public procurement was;  (i) public 
procurement involving State secrets;  (ii) printed matt er and articles of virtue;  (iii) scientific research 
and special programmes;  (iv) elaboration of legal acts and legal assistance;  (v) purchase of an existing building or any part thereof from a natural person;  and (vi) public procurement established 
by other laws.    WT/ACC/SPEC/EST/2/Rev.3 
 Page 37 
 
 
101. Estonia requested observer status in the Comm ittee on Government Procurement in a letter 
dated 1 October 1998 and obtained observer st atus in that committee on 7 October 1998. 
102. The representative of Estonia confirmed that, upon accession, Estonia would initiate 
negotiations for membership in the Agreement on Gove rnment Procurement by tabling an entity offer 
within [three][six] months of accession to the WTO.   He also confirmed that, if the results of the 
negotiations were satisfactory to the interests of Estonia and the other members of the Agreement, 
Estonia would complete negotiations for membersh ip in the Agreement by [31 December 1998 or 
within one year of accession, whichever came firs t].  The Working Party took note of these 
commitments. 
Transit  
103. The representative of Estonia said that Estoni a had joined the "Convention on Customs for 
Goods in International Transit under the TIR Carnet" in April 1993.  Departure and arrival formalities 
were completed at the customs inspection stations at the border. No customs duty, customs clearance 
charge, sales tax or excise tax were levied on goods in transit.     
104. The representative of Estonia confirmed that  his Government would apply its laws and 
regulations governing transit operations and would act in full conformity with the provisions of the 
WTO Agreement, in particular Article V of the GA TT 1994.  The Working Party took note of this 
commitment. 
Agricultural Policies  
105. Some members of the Working Party requested information on Estonia's current agricultural 
policy, including main principles, and specific policies regarding tariffs and tariff bindings, trade measures in the grain sector, safeguards, farm  support programmes and incomes policy, price 
controls, export subsidies, privatiza tion and preferential trade arrangements. 
106. The representative of Estonia said that the retu rn of land to former owners had been a 
cumbersome process but the major part of agri culture had been privatized.  Remaining State 
enterprises still played an important role in the de velopment of seeds and breeds.  Foreign ownership 
existed in the food processing industry.  Estoni a had no tariffs or non-tariff measures affecting 
agricultural imports and no subsidies or price c ontrols on food.  However, the Law on Market 
Arrangements would allow the introduction of ta riffs.   The initial offer for the market access 
negotiations (WT/L/60) included no zero-tariff bindings in agriculture and Estonia indicated that its 
tariffs would be bound at a level similar to th e neighbouring countries.  The 1994 Law on Grain WT/ACC/SPEC/EST/2/Rev.3 
Page 38  
 
allowed the Government to restrict grain imports  when domestic demand was fully covered by local 
production.  However, quotas had not been implem ented until now.  The representative of Estonia 
agreed that the Law on Grain was inconsistent w ith the WTO and the Agreement on Agriculture and 
Estonia was ready to take a commitment to bring the Law on Grain into conformity with WTO Agreements by the date of accession.  The provision s in the Grain Law authorizing the use of import 
quotas when domestic demand was fully covered by lo cal production would be amended in order to 
bring the Law into full conformity with the provi sions of the WTO Agreements.  The amended Law 
on Grain was planned to be ela borated and adopted in 1999. 
107. The representative of Estonia confirmed Estoni a's awareness of the WTO requirement not to 
use quantitative restrictions and to rely on customs du ties and said that this rule would be followed in 
future policy.  The representative of Estonia said that drafting of a Law on Food Licensing had not 
been completed as foreseen by the end of 1996 due to amendments made in the Food Law.  Rather 
than prescribing food licensing by law, it had been decided to develop secondary legislation 
regulating the issuance of licences for importing f ood.  A regulation had been prepared and submitted 
to the Government for discussion.  The regulation w as likely to enter into force in early 1999.  He 
stressed that licensing arrangements for food imports  would be of automatic nature and would not 
have restrictive effect on imports. 
108. [Some members of the Working Party noted that the provisions regarding special safeguard 
measures in the Agreement on Agriculture were  reserved for WTO Members having undertaken 
tariffication of non-tariff measures in the Uruguay Round.  Therefore, as a non-member of the WTO 
at that time, Estonia would not be entitled to reso rt to special safeguard measures.  A member sought 
a commitment from Estonia not to invoke special safeguard measures on any agricultural products.  
The representative of Estonia said that Estoni a's understanding was that non-Uruguay Round 
countries also had a possibility to use such measure s.  Accordingly, Estonia would not exclude any 
future resort to special safeguard measures, but he  was not able to indicate any specific areas where 
such measures might be used.] 
109. [The representative of Estonia said that the l ack of financial resources had so far prevented 
subsidization of agricultural exports, but Estoni a would reserve the right to introduce domestic 
support programmes and export subsidies.  An o ffer on domestic support and export subsidies for 
agriculture was circulated to members of the Working Party in September 1995 (WT/SPEC/13) 
including export subsidy ceilings for butter, chees e, milk powder, beef, pig meat and poultry meat; 
income support measures subject to reduction commi tments;  and various "green box" measures.  
Estonia also listed a number of current support programmes it considered "green box" support in 
WT/ACC/EST/4. Some members of the Working Party did not agree that Estonia should be entitled to  WT/ACC/SPEC/EST/2/Rev.3 
 Page 39 
 
 
claim protection for programmes it had not yet impl emented, such as export subsidy programmes, or 
programs that had been implemented after Estonia applied for accession to the WTO.] 
[to be completed] 
Trade in Civil Aircraft  
110. A member of the Working Party sought a commitment that Estonia would implement the 
Agreement on Trade in Civil Aircraft without excepti ons or transition periods at the time of accession. 
111. The representative of Estonia confirmed that Estonia would become a signatory to the 
Agreement on Trade in Civil Aircraft upon accession to the WTO.  The Working Party took note of this commitment. 
TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS 112. Some members of the Working Party requested details about legislation and enforcement of 
intellectual property right protection in Estonia a nd the compatibility with requirements of the TRIPS 
Agreement.  Specific questions were addressed re garding exceptions from national or MFN treatment, 
non-patentable inventions, protection of plant varieties, patent holders' rights, extension of patent 
terms, granting of compulsory licences, judicial  review, semiconductors, copyright, trademarks, 
industrial design and competition and anti-trust. 
113. The representative of Estonia said that Estonia deemed its intellectual property right 
protection compatible with the TRIPS Agreement with  no exceptions to the principles of national and 
MFN treatment.  The status of legislation on inte llectual property in Estonia as per October 1998 is 
presented in Table 6.  He added that the Patent Office had opened in March 1992.  During 1992 and 
1994 Estonia had enacted  a Patent Law;  a Utility  Model Law;  a Trademark Law; and a Copyright 
Law, and provisions related to TRIPS-obligations  had been included in the Law on Competition of 
7 July 1993.  A Law on Industrial Design Protection ha d been prepared and adopted by Parliament on 
18 November 1997;  the Law had entered into fo rce on 11 January 1998.  The Trademark Law had 
been amended in 1995, 1996 and 1997.  Legislation on industrial property was said to be modelled on 
corresponding laws of the Nordic countries and Eu ropean and international legislative acts.  
According to the Constitution, the provisions of an international treaty ratified by Parliament 
prevailed over national law.  An indication of this rule was included in all intellectual and industrial 
property laws. WT/ACC/SPEC/EST/2/Rev.3 
Page 40  
 
Table 6:  Status of Legislation on In tellectual Property in Estonia (October 1998)
 
TRIPS Agreement Laws and other legal provisions 
addressing and covering the subject matters Effective and draft legislation 
relating to requirements of the TRIPS Agreement 
Part II, Section 1 Copyright and related rights Copyright Act of 1992 
The Criminal Code and the Code of Administrative Offences Amendment Act of  1995 Copyright Act and amendments are 
effective and full compliance with WTO TRIPS requirements ensured  
Part II, Section 2 Trademarks Trademark Act of 1992 
 Trademark Act is effective and full 
compliance with TRIPS ensured since 1997 
Part II, Section 3 Geographical Indications Trademark Act of 1992  
 Estonia does not have a 
Geographical Indications Act, requirements of Art.22-23 are partly fulfilled by the Trademark Act and 
the Competition Act. Draft  
Trademark Act is foreseen to include regulations on geographical indications. 
Part II, Section 4 Industrial Designs Industrial Designs Act of 1997 
 Effective and full compliance with 
TRIPS requirements ensured 
Part II, Section 5 Patents Patents Act of 1994 
Utility Model Act of 1994 In effect and full compliance with 
TRIPs requirements ensured since 1998 In effect, the compliance with TRIPs requirements ensured 
Part II, Section 6 Layout Designs  Draft Act on Layout Designs 
(topographies) of Integrated Circuits is in full compliance with TRIPs 
requirements 
Part II, Section 7 Protection of 
Undisclosed Information Partly regulated by Patent Act of 
1994  
Part II, Section 8 
Control of Anti-Competitive Practices in Contractual Licenses  Partly to be regulated by draft 
regulation for block exemptions on some categories of technology transfer and draft regulation for block exemptions on certain 
categories of franchise agreements 
Part III, Section 3  
Provisional measures Code of Civil Procedure passed in 
1998 
Law on Competition passed in 1998 
Chapter 8 “Unfair Competition” Effective and full compliance with 
WTO TRIPS requirements ensured  WT/ACC/SPEC/EST/2/Rev.3 
 Page 41 
 
 
TRIPS Agreement Laws and other legal provisions 
addressing and covering the subject matters Effective and draft legislation 
relating to requirements of the TRIPS Agreement 
Part III, Section 4  
Special requirements related to border measures Customs Code passed in 1997 The draft-law of the Copyright Act, 
the Code of Administrative Offences, the Criminal Code, the Consumer Protection Act and the Customs 
Code Amendment Act submitted to 
Parliament in October, expected to be adopted by the beginning of 1999 and  will provide full compliance and WTO TRIPS requirements ensured      
Part III, Section 5  
Criminal procedures Code of Criminal Procedure of 1995 
Criminal Code passed in 1992 Code of Criminal Procedure is 
effective and full compliance with WTO TRIPS requirements ensured 
the draft-law of the Copyright Act, 
the Code of Administrative Offences, the Criminal Code, the Consumer Protection Act and the Customs Code Amendment Act submitted to Parliament in October, expected to 
be adopted by the beginning of 1999 
and will ensure TRIPS requirements  
114. In 1994, Estonia had become full member of the World Intellectual Property Organization, 
joined the Patent Cooperation Treaty and restored its membership to the Paris Convention for the 
Protection of Industrial Property and the Berne Conv ention for the Protection of Literary and Artistic 
Works which Estonia originally joined in 1924 and 1927, respectively.  The Ministry of Culture was 
preparing Estonia's accession to the 1971 Geneva Convention and the 1961 Rome Convention.  The 
text of the Rome Convention had been translated in to Estonian, and Estonia was expected to join the 
Convention by the end of 1999.  Es tonia had declared its intention to accede to the Protocol relating to 
the Madrid Agreement on International Regist ration of Marks and Trademark Law Treaty.  
Parliament had adopted a Law concerning Estonia's accession to this Protocol on 16 June 1998.  The 
Protocol would come into force in Estonia on 18 November 1998.  In response to further questions, 
the representative of Estonia said that plant varie ties were protected under the 1994 Variety Protection 
Law and patent protection for micro-organism stra ins could be granted following Estonia's accession 
to the Budapest Treaty.  As of 14 September 1996, Estonia had been a member of the Budapest Treaty 
on the International Recognition of the Deposit of  Micro-organism for the Purposes of Patent 
Procedure.  From that date, the Estonian Patent Office had accepted patent applications on the micro-
organism strains and the novel use of micro-organism strains.  Estonia intended to accede to the 
Union for the Protection of New Plant Varieties (UPOV) and the Variety Protection Law would be 
harmonized with the 1991 UPOV Convention. WT/ACC/SPEC/EST/2/Rev.3 
Page 42  
 
115. Certain inventions were non-patentable (inven tions contrary to public order and morality, 
treatment and diagnostic methods practised on huma ns or animals, topology of micro-circuits and 
substances derived from nuclear fi ssion).  Patent protection was provided to equipment, methods, 
substances or micro-organism strains, including their combination and use for novel purposes, in accordance with Article 6 of the Estonian Patent  Law.  Supplementary protection certificates for 
pharmaceutical and agricultural chemical products w ould be introduced through passage of the Law 
on Amending the Patent Law in the second half of 1 998.  Provisions regarding a patentee's exclusive 
rights and exceptions were found in Chapter IV (sections  15, 17, 45 and 46) of Estonia's Patent Law.  
There were no restrictions on a patent owner's ri ghts to assign, transfer or licence rights, but a 
licensing agreement needed to be registered with th e Patent Office to be valid.  Compulsory licences 
could be granted by court order only (section 47).  Es tonia considered this provision to fulfil entirely 
the requirements of Article 31(b) and (c) of the TR IPS Agreement.  Patents were not extendable under 
present legislation.  Parliament had adopted th e Law on Amending the Patent Law on 16 June 1998 in 
order to establish provisions corresponding to Articles 27 and 34 of the TRIPS Agreement.  
According to paragraph 2 of Article  11 of the Patent Law, Estonia recognized the right of priority on 
the basis of an earlier patent application filed w ithin a period of twelve months in any other WTO 
Member or in a Member of the Paris Convention.  A Draft Law on Protection of Layout-Design of Integrated Circuits had been prepared and would be presented to Parliament in the second half of 
1998. 
116. With respect to copyright and related rights, the representative of Estonia said that Estonia 
applied the principle of national treatment in th e protection of works.  The Copyright Law also 
protected works originating in countries where intern ational treaties did not apply, provided that the 
other country guaranteed similar protection to the wo rks of Estonian authors or works first published 
in Estonia.  The representative of Estonia added th at the drafting and enactment of legislation on 
protection of semiconductor layout design was sche duled for 1998.  The conditions governing free use 
and free decompilation of computer programs were se t out in Chapter IV, Sections 24 and 25, of the 
Copyright Law.  The Law did not contain provisions on compulsory licensing of copyrightable works and sound recordings;  full retroactive protection w as provided under Sections 38 and 74.  Section 75 
prescribed the limitations on rights neighbouring on copyright.  The collection of a levy to 
compensate for the use of audiovisual works and sound recordings had begun in January 1996. 
117. With regard to trade marks, the representative of Estonia said that signs registrable as trade 
marks were enumerated in Section 6 of the Trad e Marks Law.  The Law protected well known marks 
whether or not registered in the Republic of Estoni a.  Section 5 of the Law set out the rights (and 
limitations) granted to holders of trademarks;  regi stration satisfied notice of the exclusive right, and 
no specific provisions restricted the licensing or transfer of trademarks.  The registration of an  WT/ACC/SPEC/EST/2/Rev.3 
 Page 43 
 
 
assignment was not mandatory, but it was not considered  valid without registration.  Registrability of 
a trademark generally did not depend on use.  App lications were lodged with the Patents Office, its 
refusal to register a trademark (contravention of  sections 7 and 8) might be contested through the 
Board of Appeals of Industrial Property.  Decisions  of the Appeal Board could be brought before a 
court of law.  The Government intende d to draft a new Trademark Law in 1999. 
118. The representative of Estonia said that the Law on Industrial Design Protection had entered 
into force in January 1998.  The legislative aspects of geographical indications of origin would be 
provided in the new Trademark Law, which would be dr afted by the end of 1999.  For the time being, 
geographical indications of origin were protected indirectly through the Trademark Law and the Law 
on Competition.  Taking into account that WIPO was revising the Washington Treaty on Intellectual Property in respect of Integrated Circuits, the dr afting of the a Law on Semiconductor Layout Designs 
would not take place before the amendments to th e Washington Treaty had been made.  Trade secrets 
were not protected by separate legislation, but were  covered under Article 148 of the Criminal Code.  
Undisclosed information was protected under the provisions governing the abuse of business secrets 
in the Law on Competition.  Information submitte d to government agencies was protected under the 
Public Service Law.  The Second Part of Est onia's Competition Law:  Unfair Competition was 
consistent with the Paris Convention and Article  40 of the TRIPS Agreement.  The Customs Law 
formed the legal basis for the prevention of im ports of infringing goods.  In accordance with 
Article 38 of the Customs Law, customs officers ex amined goods to check that their nature, origin, 
condition, quantity and value corresponded to the in formation provided in the customs declaration.  
Proceedings could be instituted in cases of forg ed, falsified or incomplete documentation.  
Amendments to the Criminal Code and the Code of Infringement of Administrative Law to include 
specific provisions on legal protection of industrial property had been approved by Parliament in 
1996. 
119. A member asked Estonia to become a member  of the Geneva Phonograms Convention, noting 
that the restoration of protection for copyrighted  works was required under Article 18 of the TRIPS 
Agreement.  Protection of industrial designs, semiconductor chip layout designs and new plant 
varieties was also required under TRIPS.  On patents,  this member asked for confirmation that a court, 
in deciding on a compulsory licence, would follow the procedures outlined in Article 8, paragraph 6 
of its bilateral agreement with Estonia. 
120. In reply, the representative of Estonia said th at Estonia was preparing to accede to the 1971 
Geneva Convention, the 1961 Rome Convention a nd the Union for the Protection of New Plant 
Varieties (UPOV).  Parliament had adopted  the Law on Industrial Design Protection in WT/ACC/SPEC/EST/2/Rev.3 
Page 44  
 
November 1997, and would examine the Law on Protec tion of Layout-Design of Integrated Circuits 
in the second half of 1998. 
121. The representative of Estonia stated that Estoni a would fully apply all the provisions of the 
Agreement on Trade-Related Aspects of Intellectua l Property Rights from the date of its accession to 
the WTO, without recourse to any transitional pe riod.  The Working Party took note of this 
commitment.  
POLICIES AFFECTING TRADE IN SERVICES 
122. In the interest of accelerating the pro cess of accession to the WTO Agreement, the 
representative of Estonia submitted Estonia's draft schedule of specific commitments in services (document WT/L/59), and a Revised Draft Schedule of Specific Commitments in Trade in Services 
(document WT/ACC/EST/6).  Certain services activiti es were subject to licensing;  the required 
licences and the corresponding regulatory authorities are listed in Table 7.  Estonia's schedule of 
specific commitments on services is reproduced in th e annex to this report.  As indicated in the 
conclusions of this report, the Working Party took  note of the services commitments of Estonia.  
[Revert to this section at an appropriate time.] 
123. Some members of the Working Party commented  on Estonia's draft schedule of commitments 
on trade in services.  In their view, the initial offer was not sufficient since the documentation 
indicated an open services regime and Estonia ha d entered unbound in several modes of delivery.  
Specific questions covered procedures or restric tions on the entry of foreign labour, including 
lawyers, architects and accountants and cross-border trade in such services;  market access conditions, 
cross-border trade, the effect of the economic st abilization programme, and recent legislation in the 
financial services sector;  licensing of operators in telecommunications and air transport;  restrictions on foreign investment;  establishment of trade offi ces and  the coverage of services in preferential 
trading arrangements. 
124. The representative of Estonia presented a revised services schedule undertaking further 
commitments.  According to the representative of  Estonia the unbound entries in the first draft 
reflected the lack of specific regulations with regard to specific services.  He added that visa 
regulations governed the temporary entry of fore igners;  a residence permit and a work permit was 
required for foreign personnel to take up employment in Estonia.  The annual immigration quota 
corresponded to 0.1 per cent of Estonia's population.  Foreign lawyers, architects and accountants could act as consultants to Estonian firms and th ere were no legal obstacles to the purchase of such 
services abroad.  The representative of Estonia stated  that the financial services sector was free from 
restrictions and that no restrictive measures were pl anned for the near term.  Estonia confirmed that  WT/ACC/SPEC/EST/2/Rev.3 
 Page 45 
 
 
foreign suppliers were not treated less favourably than national provi ders of financial services, with 
the exception of some special requirements concer ning foreign-owned insurance companies indicated 
in its draft Schedule of Specific Commitments (W T/L/59).  Applications to establish representation 
offices or subsidiaries in banking were addressed to  the Bank of Estonia.  Recent amendments in 
financial sector legislation incl uded further regulations on prudentia l requirements and the adoption of 
a new Credit Institution Law with additional instrume nts for the supervisory authority and provisions 
on money laundering.  The Estonian securities market  was in its early stages of development, but 
growth had been substantial.  The demand for in surance had been boosted by compulsory insurance 
for motor vehicles. 
125. With regard to telecommunications, the repres entative of Estonia said that a foreign firm 
would need a foreign investment licence and register as a legal person in Estonia to do business in 
telecommunications. A concession conferring monop oly rights to "Eesti Telefon" (Estonian 
Telephone) was valid until year 2003.  The Law of  Broadcasting (Article 22) limited foreign 
ownership and possession of broadcasting transmitters  to less than 50 per cent of the shares.   
126. With regard to transportation, the represen tative of Estonia said that only companies 
registered in Estonia could obtain a licence for conve yance of goods and passengers;  a ferry had to be 
owned by a citizen of Estonia or a company with headquarters in Estonia and have a minimum 51 per cent national ownership.  The shipping  company "Estline" currently had a monopoly 
concession, valid for a further three years, on th e conveyance of passengers between Estonia and 
Sweden.  Aviation licences were issued to permanen t residents of Estonia or legal persons with 
minimum 51 per cent resident or national ownershi p.  Air carriers operating in Estonia included 
Estonian Air and several foreign carriers. 
127. The representative of Estonia stated that Est onia did not prohibit foreign services suppliers 
from establishing trade offices in any sector a nd that no services sectors and activities were 
completely closed to foreign companies.  Licen sing requirements such as the Foreign Investment 
Licence and the Licence of Activity fell under GA TS Article VI (Domestic Regulation) and were 
accordingly not indicated in the GATS Schedule of Estonia.  In sectors in which Estonia would 
undertake specific commitments, Estonia would not  apply technical standards, licensing or 
qualification requirements that nullify or impair  such specific require ments in a manner not 
complying with the criteria outlined in subparagraph 4 of Article VI of the GATS, or which could not 
reasonably have been expected of Estonia at the time the commitments were made.  Regarding 
Estonia's commitments on professional services, Es tonia would provide for adequate procedures to 
verify the competence of professionals of any other Member. WT/ACC/SPEC/EST/2/Rev.3 
Page 46  
 
128. He added that Estonia's free trade agreements  mainly covered goods;  no current agreement 
gave any country preferential status in services trade in Estonia. 
[to be completed] 
TRANSPARENCY Publication of Information on Trade
 
129. The representative of Estonia said that Article 2 of the Law on Official Journal " Riigi 
Teataja " (State Gazette) stipulated 14 different groups  of legislative acts (normative acts) to be 
published in the Official Journal " Riigi Teataja " (State Gazette), including:  (i) Laws, decisions, and 
declaration of Parliament;  (ii) decisions and regula tions of the President;  (iii) regulations and orders 
of Government;  (iv) regulations of ministers;  a nd (v) the annual report and general regulations of the 
Central Bank.  Prompt publication of laws and normative acts ensured the highest transparency 
possible. 
130. The representative of Estonia said that, at the la test from the date of accession, all laws and 
other normative acts related to trade would be published in the Official Journal " Riigi Teataja " (State 
Gazette) promptly and no law, rule, etc. related to international trade would become effective prior to 
such publication.  He further stated that Estoni a would fully implement Article X of the GATT 1994 
and the other transparency requirements in WTO Agreements requiring notification and publication. 
Notification  
131. The representative of Estonia said that, at the latest upon entry into force of the Protocol of 
Accession, Estonia would submit all notifications (oth er than those required to be made on an ad hoc 
basis) required by any Agreement constituting part of the WTO Agreement.  His Government would 
notify its Innovation Fund at the latest upon entry in to force of Estonia's Protocol of Accession.  Any 
regulations subsequently enacted by Estonia which ga ve effect to the laws enacted to implement any 
Agreement constituting part of the WTO Agreement w ould also conform to the requirements of that 
Agreement.  The Working Party t ook note of this commitment. 
TRADE AGREEMENTS 132. Some members of the Working Party enquired a bout Estonia's preferential agreements with 
the European Union and EFTA member countries, Latv ia and Lithuania, further plans to conclude 
such agreements, including a possible Baltic Cust oms Union, and the existence of countertrade 
agreements with former CMEA members.  Questions  were also raised concerning the consistency of  WT/ACC/SPEC/EST/2/Rev.3 
 Page 47 
 
 
Estonia's free trade agreements with the requirements of Article XXIV of the GATT 1994, in 
particular the obligation to cover substantially a ll the trade between the constituent territories.  A 
member requested information on the scope of Est onia's preferential agreements with particular 
attention to sectors where all measures and ch arges on trade had not yet been eliminated. 
133. The representative of Estonia replied that Estonia had preferential trade agreements with 
EFTA; the EU;  Latvia and Lithuania;  the Czech Re public;  the Slovak Republic;  Poland;  Slovenia;  
Turkey;  Ukraine [and Hungary].  Based on th e period January-March 1996, about 73 per cent of 
Estonia's foreign trade was subject to preferentia l agreements.  The Free Trade Agreement with the 
European Union had entered into force on 1 Janua ry 1995, also covering new members Austria, 
Finland and Sweden.  Estonia's Free Trade Agre ement with the European Communities had been 
notified to the WTO in document WT/REG8/N/1 a nd was being examined in accordance with normal 
practice (document WT/REG8/1 contained the Agre ement and document WT/REG8/2 the Terms of 
Reference).  The Free Trade Agreement with EFTA States had been notified to the WTO in document 
WT/REG28/N/1;  additional relevant documen tation included document WT/REG28/1 (the 
Agreement), document WT/REG28/2 (Standard Fo rmat) and document WT/REG28/3 (Terms of 
Reference).  The Free Trade Agreement with Slove nia had been notified to the WTO in document 
WT/REG37/N/1.  He stated that Estonia had no coun tertrade agreements with countries in central and 
eastern Europe.  The free trade agreements generally provided  duty free importation and exportation of  industrial goods (HS Chapters 25-97) while trad e in agricultural goods were covered either in 
separate agreements or related protocols.  Some  quantitative and qualitative requirements applied to 
Estonia's agricultural exports. 
134. The representative of Estonia said that the 1994 Free Trade Agreement between Estonia, 
Latvia and Lithuania did not cover HS Chapters 1 to 24, but an agreement covering trade in farm 
products had entered into force on 1 January 1997.   The two agreements complemented each other 
and, taken together, constituted a free trade area in terms of Article XXIV of the GATT 1994.  He 
noted that Estonia had had the possibility, until the end of 1997, to regulate agricultural imports with 
tariffs under the Free Trade Agreement with the Euro pean Union.  Should Estonia apply import duties 
in the future under the terms of any of its free trade agreements, he confirmed that preferential 
treatment would only be accorded in the context of free trade agreements as provided for in 
Article XXIV of the GATT 1994. 
135. The representative of Estonia stated that his Government would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Ar ticle V of the GATS in its trade agreements, 
and would ensure that the provisions of these WT O Agreements for notification, consultation and 
other requirements concerning preferential trading systems, free trade areas and customs unions of WT/ACC/SPEC/EST/2/Rev.3 
Page 48  
 
which Estonia was a member were met from the date of accession, [in so far as these provisions had 
not already been met by one of the other Parties to  such an agreement.]  The Working Party took note 
of these commitments. 
Conclusions
 
136. The Working Party took note of the explanati ons and statements of Estonia concerning its 
foreign trade regime, as reflected in this report.   The Working Party took note of the commitments 
given by Estonia in relation to certain specific matte rs which are reproduced in  paragraphs [15], [21], 
[25], 30, [34], [44], [57], [63], [69], 75, [77], 80, 82, 85, 93, 94, [98], [102], 104, 111, 121, 131  and [135] of this Report.  The Worki ng Party took note that these commitm ents had been incorporated in 
paragraph 2 of the Protocol of Accession of Estonia to the WTO. 
137. Having carried out the examination of the foreign trade regime of Estonia and in the light of 
the explanations, commitments and concessions made  by the representative of Estonia, the Working 
Party reached the conclusion that Estonia be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this report, and 
takes note of Estonia's Schedule of Specific Commitments on Services (document .......) and its 
Schedule of Concessions and Commitments on Goods  (document ........) that are annexed to the 
Protocol.  It is proposed that these texts be adopted  by the General Council when it adopts the Report.  
When the Decision is adopted, the Protocol of Accession would be open for acceptance by Estonia 
which would become a Member thirty days after it accepts the said Protocol.  The Working Party 
agreed, therefore, that it had completed its work concerning the negotiations for the accession of Estonia to the Marrakesh Agreement Establishing the WTO. 
 
[TO BE COMPLETED]  WT/ACC/SPEC/EST/2/Rev.3 
 Page 49 
 
 
ANNEX 
 
Table  2:  Electricity prices (since 18 November 1997)  
 
Consumers with capacity 400kW or more per one  substation or measuring system unit (group I) 
 
IA IB IC Category 
description Unit 
(1EEK = 100 sent)  voltage in connection point 
  110kV or 
more 6-35 kV less than 6kV 
Capacity charge EEK/kW per month  53.00 58.00 64.00 
and Active Energy main 
price sent/kWh 29.6 38.9 49.8 
or daytime price (07.00.-
23.00) sent/kWh 32.6 42.8 54.8 
and night time price sent/kWh 20.4 26.8 32.4 
or daytime price (07.00.-
12.00) sent/kWh 33.0 43.9 56.3 
daytime price (12.00.-
23.00) sent/kWh 31.4 41.7 53.3 
and night time price sent/kWh 20.4 26.8 32.4 
and Reactive Energy 
consumption sent/kvarh 3.8 4.6 6.0 
and releasing to the 
network sent/kvarh 7.6 8.1 8.1 
 
Consumers with capacity less than 400kW per one substation or measuring system unit (group II) 
 
voltage in connection point 
less than 6kV 6-35kV Category 
description Unit 
(1EEK = 100 sent)  
Variant A Variant B II C 
Consumption charge for 1-
phase consumer EEK/A per month  2.80 - - 
Consumption charge for 3-
phase consumer EEK/A per month  8.40 - - 
and Active Energy main 
price sent/kWh 61.0 74.6 53.2 
or daytime price (07.00.-
23.00) sent/kWh 66.9 82.2 58.5 
and night time price sent/kWh 36.4 44.9 36.7 
or daytime price (07.00.-
12.00) sent/kWh 68.7 - - 
daytime price (12.00.-
23.00) sent/kWh 65.1 - - 
and night time price sent/kWh 36.4 - - 
and Reactive Energy 
consumption sent/kvarh 6.0 6.0 4.6 
and releasing to the 
network sent/kvarh 8.1 8.1 8.1 
 WT/ACC/SPEC/EST/2/Rev.3 
Page 50  
 
Resellers (group III) 
 
The category 
description Unit 
(1EEK = 100 sent)   
Active Energy main price sent/kWh C 
or daytime price (07.00.-23.00) sent/kWh 1.06C 
and night time price sent/kWh 0.62C 
and Reactive Energy 
consumption sent/kvarh 4.6 
and releasing to the network sent/kvarh 7.7 
 
 
Households (group IV) 
 
The category 
description Unit 
(1EEK = 100 sent)  without VAT  VAT included 
Active Energy main 
price sent/kWh 55.1 65.0 
or daytime price 
(07.00.-23.00) sent/kWh 55.1 65.0 
and night time price sent/kWh 33.1 39.0 
 
 
Consumers without measuring (group V) 
 
The category description Unit 
(1EEK = 100 sent)   
Consumption charge for 1-
phase consumer EEK/A per month 77.40 
Consumption charge for 3-
phase consumer EEK/A per month 232.20 
 
 
Night consumers and consumption regulators 100kW or more (group VI) 
 
voltage in connection point The category 
description Unit 
(1EEK = 100 sent)  6 kV or more less than 6 kV 
Consumption charge EEK/A per month 3.00 3.50 
and Active Energy during 
night time sent/kWh 24.0 28.5 
and Reactive Energy 
consumption sent/kvarh 4.6 6.0 
and releasing to the network sent/kvarh 8.1 8.1 
  WT/ACC/SPEC/EST/2/Rev.3 
 Page 51 
 
 
Table 3: Oil-shale Prices (since 1 May 1997)  
 
 Quality class MJ/kg Price for clients with 
the deviation from 
the average monthly 
shipment by less than 
±15% 
EEK/t Price for clients 
without contract or 
for those with the 
deviation from the 
average monthly 
shipment by more 
than ±15%  
EEK/t 
1 PK over 11.51 71.63 127.27 
2 1PK over 10.97 70.73 125.70 
3 2PK 10.26 - 10.97 69.75 123.95 
4 3PK 9.59 - 10.25 68.86 122.39 
5 4PK 8.54 - 9.58 67.89 120.29 
6 P over 9.21 66.92 118.96 
7 1P over 8.79 66.04 117.38 
8 2P 7.79 - 8.79 65.13 115.79 
9 3P 7.29 - 7.78 64.16 114.09 
10 4P 6.28 - 7.28 63.26 112.50 
1
1 5P 6.07 - 6.27 62.31 110.78 
 WT/ACC/SPEC/EST/2/Rev.3 
Page 52  
 
Table 7:  Activities subject to licensing (Activity Licence)
 
 
Activity Issuing Authority 
1. Management of aviation an d sea transport (exclude small 
private boats), internationa l car and railway transport 
(excludes intra-enterprise rail transport) Ministry of Transport and 
Communications 
2. Geology-related activities, mining of natu ral resources Ministry of Economic Affairs 
3. Production and trade in objects containing precious metals and 
precious stones Ministry of Finance 
4. Production, possession and trade in weapons, parts thereof, 
ammunition, or pyrotechnic equipment; repairs of weapons Ministry of Internal Affairs 
5. Production and trade in medical narcotic, highly toxic, 
radioactive, and poisonous subs tances. Growing plants that 
contain narcotic, highly toxi c and poisonous substances. 
Purchase and possessing of medical narcotic, highly toxic, 
radioactive, and poisonous substances Ministry of Social Affairs 
6. All forms of medical treatment Ministry of Social Affairs 
7. Production of and trade in medicines Ministry of Social Affairs 
8. Import and export, as well as production and wholesale of 
tobacco and production thereof, and alcohol; and retail of alcohol Ministry of Economic Affairs; 
Municipal Governments 
9. Printing and minting of money Bank of Estonia 
10. Printing of securities Ministry of Finance 
11. Printing of postage stamps Ministry of Transport and 
Communications 
12. Building and management of public communications' 
networks of any kind Ministry of Transport and 
Communications 
13. Management of an educational institution of a higher or 
general level, both vocational, or professional; together with 
the right to issue nation wide accepted certificates of educationMinistry of Education 
14. Management of security services' firms, installation of 
security, guard, and signalization systems Ministry of Internal Affairs 
15.  Opening and management of private det ective agencies Ministry of Internal Affairs 
16. Collation of measuring instruments Ministry of Economic Affairs 
17. Production and trade in micro-organisms, plants, and animals 
created by genetic engineering Ministry of Agriculture 
18. Insurance Ministry of Finance 
19. Projecting, expertise and insp ection of buildings, construction 
contracting activities Ministry of Environment;   
Ministry of Agriculture 
20. Geodetic and cartographic activities Ministry of Environment  
21. Ecological expertise Ministry of Transport and 
Communications  WT/ACC/SPEC/EST/2/Rev.3 
 Page 53 
 
 
Activity Issuing Authority 
22. Management of environmentally harmfu l substances Ministry of Transport and 
Communications 
23. Transmission or broadcasting of radio and television 
programmes by means of the radio and television networks Ministry of Culture 
24. Management of casinos (gambling) Ministry of Finance 
25. Reproduction of the State symbols or their parts of the 
Republic of Estonia State Chancellery 
26. Exchange management Ministry of Finance 
27. Tourism Ministry of Economic Affairs 
28. Ships' agencies and organizing sea transport Ministry of Transport 
29. Lotteries Ministry of Transport and 
Communications 
30. Assessment of land property, selling and buying land Ministry of Agriculture 
31. Activities on the securities' market Ministry of Finance 
32. Veterinary activities, veterinary practice Ministry of Agriculture 
33. Temporary storage of commercial goods, customs-storage 
procedures Ministry of Finance 
34. Commercial trade (imports, re-exports), wholesale and retail, 
and storage of imported fuels and lubricants Ministry of Economic Affairs 
35. Production and repairs of  weapons, ammunition, and 
technology for national defence purposes Ministry of Defence 
36. Experiments with animals Ministry of Agriculture 
37. Management of imports and exports, as well as other trade, 
services, repairs, and dissembling of motor vehicles and 
trailers Ministry of Economic Affairs 
38. Assessment of personal protective equipment types, quality 
certification; assessment of machinery and equipment types National Labour Inspection 
Board 
39. Logopedical aid Ministry of Social Affairs 
40. Conservation, restoration, creating of repairs projects, and 
carrying out the corresponding activities on the objects of 
cultural importance (the objects of archaeological, 
architectural, technological, and historical value, objects of fine arts) Ministry of Culture 
41. Classification of goods and me asuring of goods for customs' 
purposes Ministry of Finance 
42. Commercial mediation of scrap metal and metal waste Ministry of Economic Affairs WT/ACC/SPEC/EST/2/Rev.3 
Page 54  
 
 
APPENDIX 
 
ACCESSION OF ESTONIA 
 
Draft Decision
 
  
 The General Council, 
  Having regard
 to the results of the negotiations di rected towards the establishment of the 
terms of accession of the Republic of Estonia to  the Marrakesh Agreement Establishing the World 
Trade Organization and having prepared a Protocol for the Accession of Estonia, 
  Decides
, in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of Es tonia may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol.  WT/ACC/SPEC/EST/2/Rev.3 
 Page 55 
 
 
PROTOCOL OF ACCESSION OF ESTONIA  
TO THE MARRAKESH AGREEMENT ESTABLISHING THE   
WORLD TRADE ORGANIZATION  
 
Draft  
 
 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Republic of Estonia (hereinafter referred to as "Estonia"),  
 
 Taking note  of the Report of the Working Party on the Accession of Estonia to the WTO in 
document WT/ACC/EST/.... (hereinafter referred to as the "Working Party Report"),  
 Having regard
 to the results of the negotiations on the accession of Estonia to the WTO, 
  Agree
 as follows: 
 
 
Part I - General  
 
1. Upon entry into force of this Protocol, Es tonia accedes to the WTO Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO. 
 
2. The WTO Agreement to which Estonia acced es shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal inst ruments as may have entered into force before the 
date of entry into force of this Protocol.  Th is Protocol, which shall comprise the commitments 
referred to in paragraph [136] of the Working Part y Report, shall be an integral part of the WTO 
Agreement.  3. Except as otherwise provided for in the para graphs referred to in paragraph [136] of the 
Working Party Report, those obligations in the Multilateral Trade Agreemen ts annexed to the WTO 
Agreement that are to be implemented over a period of  time starting with the entry into force of that 
Agreement shall be implemented by Estonia as if it  had accepted that Agreement on the date of its 
entry into force. WT/ACC/SPEC/EST/2/Rev.3 
Page 56  
 
 
4. Estonia may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to  the GATS on Article II Exemptions.   
 
Part II - Schedules
 
 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to 
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement 
on Trade in Services (hereinafter referred to as "GATS") relating to Estonia.  The staging of 
concessions and commitments listed in the Schedu les shall be implemented as specified in the 
relevant parts of the respective Schedules.  6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 
Part III - Final Provisions
 
 
7. This Protocol shall be open for acceptance, by signature or ot herwise, by Estonia until ......... 
 8. This Protocol shall enter in to force on the thirtieth day following the day of its acceptance. 
 
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certifie d copy of this Protocol and a notification of 
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Estonia.  
10. This Protocol shall be registered in acco rdance with the provisions of Article 102 of the 
Charter of the United Nations.    Done at Geneva this ... day of  .... one thou sand nine hundred and ninety ….., in a single copy 
in the English, French and Spanish languages eac h text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages.  WT/ACC/SPEC/EST/2/Rev.3 
 Page 57 
 
 
ANNEX  
 
SCHEDULE CXLII - ESTONIA  
 
Part I - Goods  
 
[to be completed] 
  
Part II - Services
 
 
[to be completed] 
 
__________