WORLD TRADE
ORGANIZATIONWT/REG108/1
25 July 2000
(00-3070)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN ESTONIA AND UKRAINE
The following text reproduces the Free Trade Agreement.1
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FREE TRADE AGREEMENT BETWEEN ESTONIA AND UKRAINE
The Republic of Estonia  and Ukraine  (hereafter referred to as "the Parties"),
Recalling  their intention to participate actively in the process of economic integration in
Europe and expressing their preparedness to cooperate in seeking ways and means to strengthen this
process,
Recalling  their firm commitment to the Final Act of the Conference on Security and
Cooperation in Europe, the Paris Charter, and in particular the principles contained in the final
document of the CSCE Bonn Conference on Economic Cooperation in Europe,
Reaffirming  their commitment to the idea of law state based on the rule of law, human rights
and fundamental freedoms,
Desiring  to create favourable conditions for the development and diversification of trade
between them and for the promotion of commerci al and economic cooperation in areas of common
interest on the basis of equality, mutual benefit and international law,
Resolved  to contribute to the strengthening of th e multilateral trading system and to develop
their relations in the field of trade in accordance with the basic principles of the General Agreement
on Trade and Tariffs (GATT/WTO),
Declaring  their readiness to examine the possibility of developing and deepening their
relations in order to extend them to fields not covered by this Agreement,
Have agreed  as follows:
                                                     
1 The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).WT/REG108/1
Page 2
Article 1
Objectives
1. The Parties shall gradually establish a free-trade area in accordance with the provisions of this
Agreement.
2. The objectives of this Agreement, which is based on trade relations between market
economies, are:
(a) to promote, through the expansion of mutual trade, the harmonious development of
the economic relations between Estonia and Ukraine and thus to foster the advance ofeconomic activity, the improvement of living and employment conditions, increased
productivity, financial stability and sustained growth of both Parties;
(b) to provide fair conditions of competition for trade between the Parties;
(c) to develop and intensify, as far as possible, cooperation in the areas which are not
covered by this Agreement, especially in the promotion of investments, economic
and scientific cooperation, economic aid and the environment protection
Article 2
The Joint Committee
1. The Joint Committee is hereby established, which shall be responsible for the administration
of this Agreement and shall review its implementation.  For this purpose it shall follow closely thedevelopment of the trade and economic cooperation between the Parties and take any corresponding
measure which is necessary to improve and further develop those relations.  The decisions of the Joint
Committee shall be put into effect by the Parties in accordance with their own laws.
2. For the purpose of the proper implementation of this Agreement the Parties shall exchange
information and, at the request of either Party, shall hold consultations within the Joint Committee.
3. The Joint Committee shall consist of equally authorized representatives of Estonia on the one
side and of representatives of Ukraine on the other.
4. The Joint Committee shall act by mutual agreement.
5. Each Party shall preside alternately over the Joint Committee.
6. The meetings of the Joint Committee should be held at least once a year in order to review the
general functioning of the Agreement.  The Joint Committee shall, in addition, meet whenever special
circumstances so require at the request of either Party,
7. The Joint Committee may decide to set up any working group that can assist it in carrying out
its duties.
8. The Joint Committee may take independent decisions concerning the application of this
Agreement.  The Joint Committee shall make recommendations on the amendments and changes of
this Agreement.WT/REG108/1
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Article 3
Scope
This Agreement shall apply to products falling within Chapters 1 to 97 of the Harmonized
Commodity Description and Coding System, originating in Estonia or in Ukraine.
Article 4
Rules of origin and cooperation in customs administration
1. Protocol A lays down the rules of origin and methods of administrative cooperation.2. The Parties shall take appropriate measures, including regular reviews by the Joint Committee
and arrangements for administrative cooperation, to ensure that the provision of Article 5 (Prohibition
and abolition of customs duties on imports and charges having equivalent effect), Article 6
(Prohibition and abolition of customs duties on exports and charges having equivalent effect),Article 7 (Prohibition and abolition of quantitative restrictions on imports or exports and measures
having equivalent effect), Article 10 (Internal taxation) and Article 18 (Re-exports and serious
shortage) of the Agreement and Protocol A are effectively and harmoniously applied, and to reduce,
as far as possible, the formalities imposed on trade,  and to achieve mutually satisfactory solutions to
any difficulties arising from the operation of those provisions.
Article 5
Prohibition and abolition of customs duties on imports and charges having equivalent effect
1. No new customs duties on imports or charges ha ving equivalent effect shall be introduced in
trade between the Parties.
2. Customs duties on imports and charges having equivalent effect shall be abolished upon the
date of entry into force of this Agreement.
3. The provisions of this Article shall also apply to customs duties of a fiscal nature.  The Parties
may replace a customs duty by an internal tax.
Article 6
Prohibition and abolition of customs duties on exports and charges having equivalent effect
1. No new customs duties on exports or charges having equivalent effect shall be introduced in
trade between the Parties.
2. Customs duties on exports and charges having equivalent effect shall be abolished upon the
entry into force of this Agreement.WT/REG108/1
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Article 7
Prohibition and abolition of quantitative restrictions on
imports or exports and measures having equivalent effect
1. No new quantitative restrictions on imports or exports and measures having equivalent effect
shall be introduced in trade between the Parties.
2. Quantitative restrictions on imports or exports and measures having equivalent effect shall be
abolished in trade upon the date of entry into force of this Agreement.
Article 8
General exceptions
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public policy or public security; the protection ofhealth and life of humans, animals or plants; the protection of the environment; the protection of
national treasures possessing artistic, historic or archaeological value; the protection of intellectual
property; laws and regulations relating to precious stones and metals.  Such prohibitions or restrictions
shall not, however, constitute means of arbitrary discriminations or a disguised restriction on trade
between the Parties.
Article 9
State monopolies
1. The Parties shall ensure that any state monopoly of commercial character be adjusted, so that
no discrimination regarding the conditions under which goods are procured and labelled will exist
between nationals of the Parties.  These goods shall be produced and marketed in accordance with
commercial considerations.
2. This Article shall apply to the institutions through which the competent authorities of the
Parties, in law or in fact, either directly or indi rectly supervise, determine or appreciably influence
imports or exports between the Parties.  This Article shall likewise apply to monopolies delegated by
the Party to others.
Article 10
Internal taxation
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing,
whether directly or indirectly, discrimination between the products originating in one Party and the
similar products originating in the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of
internal taxation in excess of the amount of direct or indirect taxation imposed on them.WT/REG108/1
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Article 11
Payments
1. Payments relating to the trade and the transfer of such payments to the territory of the Party
where the creditor resides shall be free from any restrictions.
2. The Parties shall refrain from any exchange and administrative restrictions on the grant,
repayment or acceptance of short and medium-term credits covering commercial transactions.
Article 12
Legal protection of intellectual property
1. The Parties shall guarantee adequate, effective and non-discriminatory legal protection of
intellectual property rights.  With the establishment of this legal protection, especially against
counterfeiting and piracy, they will adopt and apply adequate, effective and non-discriminatorymeasures.
2. In the field of intellectual property, the Parties shall not grant treatment less favourable to
each other's nationals than that accorded to the nationals of a third State.
3. The Parties may apply, using their national laws and regulations, legal protection which
exceeds the provisions of this Article provided that this legal protection is not in contradiction to the
provisions of this Agreement.
4. If one of the Parties considers that the other Party has failed to fulfil the obligations under this
Article, Article 23 (Fulfilment of obligations), paragraph 2 shall apply.
5. The Parties to this Agreement shall agree upon appropriate modalities for technical assistance
and cooperation of respective authorities of the Parties.
Article 13
Rules of competition concerning undertakings
1. The following are incompatible with the proper functioning of this Agreement in so far as
they may affect trade between the Parties:
(a) all agreements between the undertakings, decisions taken by associations of
undertakings and concerted practices between undertakings which have as their object
or effect the prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the
Parties as whole or in a substantial part thereof.
2. If a Party considers that a given practice is incompatible with the provisions of paragraph 1 of
this Article, it may take appropriate measures afte r consultations within the Joint Committee or after
thirty days following referral to such consultations.WT/REG108/1
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Article 14
State-aid
1. Any aid granted by a Party in any form whatsoever which distorts or threatens to distort
competition by favouring certain undertakings or the production of certain goods shall, in so far as it
may affect trade between the Parties, be incompatible with the proper functioning of this Agreement.
2. The Parties shall ensure transparency of State-aid measures by exchanging information on the
request of either Party.
3. The Joint Committee shall keep the situation regarding the application of state-aid measures
under review, and shall with regard to other state-aid than export aid, elaborate further rules of
implementation.
4. If a Party considers that a given practice is incompatible with paragraph 1 of this Article, it
may take appropriate measures under the conditions and in accordance with the procedure laid downin Article 20 (Procedure for the application of safeguard measures) of this Agreement.
Article 15
Dumping
If a Party finds that dumping within the meaning of Article VI of the General Agreement on
Tariffs and Trade is taking place in trade relations governed by this Agreement, it may take
appropriate measures against that practice in accordance with that Article and Agreements related to,
under the conditions and in accordance with the procedure laid down in Article 20 (Procedure for theapplication of safeguard measures) of this Agreement.
Article 16
Emergency action on import of a particular product
If an increase in imports of a given product originating in Estonia or in Ukraine occurs in
quantities or under conditions which cause, or are likely to cause:
(a) serious injury to domestic procedures of like or directly competitive products in the
territory of the other Party; or
(b) serious disturbances in any related sector of the economy or difficulties, which could
bring about serious deterioration in the economic situation of a region,
the Party concerned may take appropriate measures under the conditions and in accordance with the
procedure laid down in Article 20 (Procedure for the application of safeguard measures) of thisAgreement.
Article 17
Structural adjustment
Exceptional measures may only concern infant industries or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce important
social problems.WT/REG108/1
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These measures shall be applied for a period not exceeding five years unless a longer duration
is authorized by the Joint Committee, and cannot be  introduced later than five years after the entry
into force of this Agreement.
Article 18
Re-exports and serious shortage
Where compliance with the provisions of Article 6 (Prohibition and abolition of customs
duties on exports and charges having equivalent effect) and Article 7 (Prohibition and abolition of
quantitative restrictions on imports or exports and measures having equivalent effect) leads to:
(a) re-exports towards a third country against which the exporting Party maintains for the
products concerned quantitative export restriction, export duties or measures or
charges having equivalent effect; or
(b) a serious shortage, or threat thereof, of a product essential to the exporting Party;
and where the situations referred to above give rise or are likely to give rise to major difficulties for
the exporting Party, that Party may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 20 (Procedure for the application of safeguard measures) of
this Agreement.
Article 19
Balance-of-payments difficulties
1. Where either Party is in serious balance-of-payments difficulties, or under imminent threat
thereof, the Party concerned may, in accordance with the terms and conditions established under the
General Agreement on Tariffs and Trade (GATT/WTO) and associated legal instruments, adopt trade
restrictive measures, which shall be of limited duration and may not go beyond what is necessary to
remedy the balance-of-payments situation.  The Parties shall give preference to price-based measures.
The measures shall be eliminated when conditions no longer justify their maintenance.  Parties shall
inform each other forthwith of their introduction and of the time schedule for their removal.
2. The Parties shall, nevertheless, endeavour to avoid the imposition of restrictive measures for
balance-of-payments purposes.
Article 20
Procedure for the application of safeguard measures
1. Without prejudice to paragraph 5 of this Article, the Party which considers resorting to
safeguard measures shall promptly notify the other Party thereof and supply with all relevantinformation.  Consultations shall take place without delay in the Joint Committee with a view to
finding a mutually acceptable solution.WT/REG108/1
Page 8
2 (a) As regards Article 14 (State-aid) the Party concerned shall give to the Joint
Committee all the assistance required in order to examine the case and, where
appropriate, eliminate this practice.  If the Party in question fails to put an end to the
practice objected to within the period fixed by the Joint Committee or if the Joint
Committee fails to reach an agreement after consultations, or after thirty daysfollowing referral to such consultati ons, the Party concerned may adopt the
appropriate measures to deal with the difficulties resulting from the practice in
question.
(b) As regards Articles 15 (Dumping), 16 (Emergency action on import of a particular
product) and 18 (Re-exports and serious shortage), the Joint Committee shall examine
the case or the situation and may take any decision needed to put an end to thedifficulties notified by the Party concerned.  In the absence of such a decision within
thirty days of the matter being referred to the Joint Committee, the Party concerned
may adopt the measures necessary in order to remedy the situation.
(c) As regards Article 23 (Fulfilment of obligations), the Party concerned shall supply the
Joint Committee with all relevant information required for a thorough examination of
the situation with a view to seeking mutually acceptable solution.  If the Joint
Committee fails to reach such a solution or if a period of three months has elapsed
from the date of notification, the Party concerned may take appropriate measures.
3. The safeguard measures taken shall be notified immediately to the other Party.  They shall be
restricted with regard to their extent and to thei r duration to what is strictly necessary in order to
rectify the situation giving rise to their application and shall not be in excess of the injury caused by
the practice of the difficulty in question.  Priority shall be given to such measures as the least disturb
the functioning of this Agreement.
4. The safeguard measures taken shall be the object of regular consultations with a view to their
relaxation, substitution or abolition as soon as possible.
5. Where exceptional circumstances required immediate action make prior examination
impossible, the Party concerned may, in the case of Articles 13 (Rules of competition concerning
undertakings), 14 (State-aid), 15 (Dumping), 16 (Emergency action on imports of a particular
product) and 18 (Re-exports and serious shortage) apply forthwith the precautionary and provisional
measures strictly necessary to deal with the situation.  The measures shall be notified to the Joint
Committee without delay and consultations between the Parties shall take place as soon as possible.
Article 21
Security exceptions
Nothing in this Agreement shall prevent a Part y from taking any measures which it considers
necessary:
(a) to prevent the disclosure of information contrary to its essential security interests;(b) for the protection of its essential security interests or for the implementation of
international obligations or national policies:WT/REG108/1
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(i) relating to the traffic in arms, ammunition and implements of war, provided
that such measures do not impair the conditions of competition in respect of
products not intended for specifically military purposes, and to such traffic in
other goods, materials and services as is carried on directly or indirectly for
the purpose of supplying a military establishment; or
(ii) relating to the non-proliferation of biological and chemical weapons, nuclear
weapon, or other nuclear weapons explosive devices; or
(iii) taken in time of war or other serious international tension.
Article 22
Evolutionary clause
The Parties shall recognize the growing importance of such areas as services, investments and
the implementation of joint projects.  Where a Party considers that it would be useful in the interestsof the economies of the Parties to develop and deepen the relations established by this Agreement by
extending them to fields not covered thereby, it shall submit a reasoned request to the other Party.
The Parties may instruct the Joint Committee to examine this request and, where appropriate, to make
recommendations to them, particularly with a view to opening up negotiations.
Article 23
Fulfilment of obligations
1. The Parties shall take all necessary measures to ensure the achievement of the objectives of
this Agreement and the fulfilment of their obligations under this Agreement.
2. If either Party considers that the other Party has failed to fulfil an obligation under this
Agreement, the Party concerned may take the appr opriate measures after consultation in the Joint
Committee under the conditions and in accordance with the procedure laid down in Article 20
(Procedure for the application of safeguard measures).
Article 24
Annexes and protocols
The Annexes and Protocols to this Agreement are integral parts of it.
Article 25
Customs unions, free-trade areas and frontier trade
This Agreement shall not prevent the maintenance or establishment of customs unions,
free-trade areas or arrangements for frontier trade to the extent that these do not negatively affect the
trade regime and in particular the provisions concerning rules of origin provided by this Agreement.WT/REG108/1
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Article 26
Amendments
Amendments to this Agreement shall be submitted to the Parties for acceptance and shall
enter into force in accordance with Article 27 of this Agreement.
Article 27
Entry into force
This Agreement shall enter into force thirty days after the date when both Parties have
notified each other in writing and the constitutional or other legal requirements for the entry into force
have been fulfilled.  The Agreement shall remain in force for an inadequate period.
Article 28
Denunciation
Either Party may denounce this Agreement by means of a written notification to the other
Party.  This Agreement shall cease to be in force six months after the date on which the notification
was received by the other Party.
IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorized thereto,
have signed the present Agreement.
DONE at Tallinn, this 24 day of May 1995 in two originals, both in the Estonian, Ukrainian
and English languages.  In case of a dispute the English text shall prevail.
For the Republic of Estonia For the Ukraine
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