WORLD TRADE
ORGANIZATIONWT/REG55/1
27 January 1999
(99-0310)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN CROATIA AND SLOVENIA
The following text reproduces the Agreement between the Republic of Slovenia and the
Republic of Croatia.
_______________
Agreement between the Republic of Slovenia and the Republic of Croatia
The Republic of Slovenia and the Republic of Croatia  (hereinafter “the Parties”),
Reaffirming  their firm commitment to pluralistic democracy based on the rule of law, human
rights and fundamental freedoms;
Recalling  their intention to participate actively in the process of economic integration in
Europe and expressing their preparedness to co-operate in seeking ways and means to strengthen this
process;
Having  regard to the Protocol from the first meeting of the Committee for economic
co-operation between Slovenia and Croatia signed on October 5, 1994 and to the Joint declaration of
intent on the conclusion of the Free Trade Agreement between the Parties signed on February 7, 1994;
Reaffirming  their firm commitment to the principles of a market economy which constitutes
the basis for their relations;
Recalling  their firm commitment to the Final Act of the Conference on Security and
Co-operation in Europe, the Paris Charter, and in particular the principles contained in the finaldocument of the Bonn Conference on Economic Co-operation in Europe;
Resolved  to this end to eliminate progressively th e obstacles to substantially all their mutual
trade, in accordance with the provisions of the General Agreement on Tariffs and Trade 1994
(hereinafter “GATT 1994") and the Agreement Establishing the World Trade Organization(hereinafter “WTO”), the Republic of Croatia having objective to become a Member of the WTO;
Firmly  convinced that this Agreement will foster the intensification of mutually beneficial
trade relations among them and contribute to the process of integration in Europe;
Considering  that no provision of this Agreement may be interpreted as exempting the Parties
from their obligations under other international agreements;
Have  agreed as follows:WT/REG55/1
Page 2
Article 1
Objectives
1. The Parties shall gradually establish a free trade area on substantially all their bilateral trade
in a transitional period ending on January 1, 2001, in accordance with the provisions of this
Agreement and in conformity with  Article XXIV of the GATT 1994   and the WTO.
2. The objectives of this Agreement are:
(a) to promote through the expansion of mutual trade the harmonious development of
economic relations between the Parties and thus to foster in the Parties the advance ofeconomic activity;
(b) to provide fair conditions of competition for trade between the Parties;(c) to contribute by the removal of barriers to trade to the harmonious development and
expansion of world trade.
CHAPTER I
Industrial Products
Article 2
Scope
1. The provisions of this Chapter shall apply to industrial products originating in one of  the
Parties.
2. The term "industrial products" means for the purpose of this Agreement the products falling
within Chapters 25 to 97 of the Harmonized Comm odity Description and Coding System, with the
exception of the products listed in Annex I to this Agreement.
Article 3
Basic Duties
1. For each product the basic duty to which the successive reductions set out in this Agreement
are to be applied shall be the Most Favoured Nation rate of duty in force on  January 1, 1998.
2. If, after entry into force of this Agreement, any tariff reduction is applied on an erga omnes
basis, in particular reductions resulting from the tariff agreement concluded as a result of the GATT
Uruguay Round of multilateral trade negotiations, such reduced duties shall replace the basic duties
referred to in paragraph 1 as from that date when such reductions are applied.
3. The reduced duties calculated in accordance with paragraph 2 shall be applied rounded to the
first decimal place.
4. The Parties shall notify each other their respective customs duties.WT/REG55/1
Page 3
Article 4
Customs Duties on Imports
1. No new customs duty on imports shall be introduced in trade between the Parties as of the
date of entry into force of this Agreement.
2. All customs duties on imports shall be abolished in accordance with the provisions of the
Protocol 1 to this Agreement (hereinafter “Protocol 1").
Article 5
Charges Equivalent to Customs Duties
1. No new charge having an effect equivalent to a customs duty on imports shall be introduced
in trade between the Parties as of the date of entry into force of this Agreement.
2. All charges having an effect equivalent to customs duties on imports shall be abolished on the
date of the entry into force of this Agreement.
Article 6
Fiscal Duties
1. The provisions of Article 4 shall also apply to customs duties of a fiscal nature.
Article 7
Customs Duties on Exports and Charges Having Equivalent Effect
1. No new customs duty on exports or charge having equivalent effect shall be introduced in
trade between the Parties as of the date of entry into force of this Agreement.
2. All customs duties on exports and charges having equivalent effect  shall be abolished on the
date of entry into force of this Agreement.
Article 8
Quantitative Restrictions on Imports and Measures Having Equivalent Effect
1. No new quantitative restriction on imports or measure having equivalent effect shall be
introduced in trade between the Parties as of th e date of entry into force of this Agreement.
2. All quantitative restrictions on imports and measures having equivalent effect shall be
abolished on the date of entry into force of this Agreement.WT/REG55/1
Page 4
Article 9
Quantitative Restrictions on Exports and Measures Having Equivalent Effect
1. No new quantitative restriction on exports or measure having equivalent effect shall be
applied in trade between the Parties as of the date of entry into force of this Agreement.
2. All quantitative restrictions on exports and measures having equivalent effect shall be
abolished on the date of entry into force of this Agr eement, except as provided for in Annex II to this
Agreement.
Article 10
Elimination of Technical Barriers to Trade
1. The rights and obligations of the Parties relating to technical barriers to trade shall be
governed by the WTO Agreement on Technical Barriers to Trade.
2. The Parties shall co-operate and exchange information in the field of standardization,
metrology, conformity assessment and accreditation with the aim of reducing technical barriers to
trade.
3. In order to eliminate technical barriers and effectively implement this Agreement, the Parties
may on the basis hereof conclude an agreement on mutual recognition of test reports, certificates of
conformity and other documents directly or indirectly related to conformity assessment of the
products which are the subject of the goods exchange between the Parties with the regulationseffective in the importing country.
CHAPTER II
Agricultural Products
Article 11
Scope
1. The provisions of this Chapter shall apply to agricultural products originating in one of the
Parties.
2. The term "agricultural products" means for the purpose of this Agreement the products falling
within Chapter 1 to 24 of the Harmonized Commodity Description and Coding System and  all theproducts listed in Annex I to this Agreement.WT/REG55/1
Page 5
Article 12
Exchange of Concessions
1. The Parties shall  grant each other the concessions specified in the Protocol 2 to this
Agreement (hereinafter “Protocol 2")  as laid down in that Protocol and in accordance with provisions
of this Chapter.
2. Taking account of:
- the role of agriculture in their economies,
- the development of trade in agricultural products between the Parties,- the particular sensitivity of the agricultural products,
- the rules of their agricultural policies,
- the results of the multilateral trade negotiations under the WTO,
the Parties shall examine,  within the framework of the Joint Committee, the possibilities of
granting each other further concessions in trade in agricultural products.
Article 13
Concessions and Agricultural Policies
1. Without prejudice to the concessions granted under Article 12 to this Agreement, the
provisions of this Chapter shall not restrict in any way the pursuance of the respective agricultural
policies of the Parties or the taking of any measures under such policies, including the implementationof the results of the Uruguay Round agreements.
2. The Parties shall notify to the Joint Comm ittee changes in their respective agricultural
policies pursued or measures applied which may affect the conditions of trade in agricultural products
between them. On the request of a Party, prompt consultations shall be held, to examine the situation.
Article 14
Specific Safeguards
1. Notwithstanding other provisions of this Agreement, in particular Article 27 to this
Agreement, and given the particular sensitivity of the agricultural products, if imports of products
originating in a Party which are subject to concessions granted under this Agreement cause serious
disturbances to the market of the other Party, the Party concerned shall immediately enter into
consultations to find an appropriate solution. Pending such solution, the Party concerned may take
measures it deems necessary.
Article 15
Sanitary and Phytosanitary Measures
1. The Parties shall apply their regulations in veterinary, plant health and health matters, in
particular in the exchange of information on infectious diseases of domestic animals, quarantine
diseases, plant pests and weed, as well as in the adjustment of similar documents in the exchange andWT/REG55/1
Page 6
transport of goods, taking into account that the Agreement on co-operation in the field of veterinary
medicine has already been signed in Zagreb on September 13, 1995.
2. The Parties shall apply their regulations in veterinary, plant health and health matters in a
non-discriminatory fashion and shall not introduce any new measures that have the effect of undulyobstructing trade.
CHAPTER III
General Provisions
Article 16
Rules of Origin and Co-operation in Customs Administration
1. Protocol 3 to this Agreement (hereinafter “Protocol 3") lays down the rules of origin and
related methods of administrative co-operation.
2. The Parties shall take appropriate measures, including regular reviews by the Joint Committee
and arrangements for administrative co-operation, to ensure that the provisions of Protocol 3 andArticles 3 to 9, 12, 17, 27, 28 and 29 to this Agreement are effectively and harmoniously applied, and
to reduce, as far as possible, the formalities impos ed on trade, and to achieve mutually satisfactory
solutions to any difficulties arising from the operation of those provisions.
3. Protocol 4 to this Agreement (hereinafter “Protocol 4")  shall stipulate mutual assistance and
co-operation between Customs Administrations of the Parties.
Article 17
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 the Parties.
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.
Article 18
General Exceptions
1. 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; of the protection of
health and life of humans, animals or plants; of the protection of national treasures possessing artistic,
historic or archaeological value; of the protection of intellectual property, or of the rules relating togold or silver or to the conservation of exhaustible natural resources, if such measures are made
effective in conjunction with restrictions on domestic production or consumption. Such prohibitions
or restrictions shall not, however, constitute a  means of arbitrary discrimination or a disguised
restriction on trade between the Parties.WT/REG55/1
Page 7
Article 19
Security Exceptions
1. Nothing in this Agreement shall prevent a Party from taking any appropriate measure which it
considers necessary:
(a) to prevent the disclosure of information contrary to its essential security interests;(b) for the protection of its essential security interests or for the implementation of
international obligations or national policies:
(i) relating to the traffic in arms, ammunition and implements of war, provided
that such measures do not impair the conditions of competition in respect of
products not intended for specifically military purposes, and to such traffic 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
weapons or other nuclear explosive devices; or
(iii) taken in time of war or other serious international tension.
Article 20
State Monopolies
1. The Parties shall adjust progressively any State monopoly of a commercial character so as to
ensure that by the end of the transitional period laid down in Article 1 to this Agreement,  no
discrimination regarding the conditions under which goods are procured and marketed exists  between
nationals of the Parties. The Parties shall inform each other about the measure adopted to implement
this objective.
2. The provisions of this Article shall apply to any body through which the competent
authorities of the Parties, in law or in fact, either directly or indirectly supervise, determine or
appreciably influence imports or exports between the Parties.  These provisions shall likewise apply to
monopolies delegated by the State to other bodies.
Article 21
Payments
1. Payments in freely convertible currencies relati ng to trade in goods  between the Parties 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 or administrative restrictions on the grant,
repayment or acceptance of short and medium term credits to trade in goods in which a resident of a
Party participates.WT/REG55/1
Page 8
3. Notwithstanding the provisions of paragraph 2, any measures concerning current payments
connected with the movement of goods shall be in  conformity with the co nditions laid down under
Article VIII of the Articles of the Agreement of the International Monetary Fund.
Article 22
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 undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the
Parties as a whole or in a substantial part thereof.
2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public
undertakings and undertakings to which the Parties grant special or exclusive rights.  Undertakings
entrusted with the operation of services of general economic interest or having the character of arevenue-producing monopoly, shall be subject to provisions of paragraph 1 in so far as the application
of these provisions does not obstruct the performance, in law or fact, of the particular public tasks
assigned to them.
3. With regard to products referred to in Chapter II to this Agreement the provisions of
paragraph 1a. shall not apply to such agreements, decisions and practices which form an integral part
of a national market organization.
4. If a Party considers that a given practice is incompatible with paragraphs 1, 2 and 3 and if
such practice causes or threatens to cause serious prejudice to the interest of that Party or material
injury to its domestic industry, it may take appropriate measures under the conditions and in
accordance with the procedure laid down in Article 31 to this Agreement.
Article 23
State Aid
1. Any aid granted by a State being Party to this Agreement or through State resources 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 provisions of paragraph 1 shall not apply to products covered by  Chapter II to this
Agreement.
3. The Joint Committee shall, within three years from the entry into force of this Agreement,
adopt the criteria on the basis of which the practices contrary to paragraph 1 shall be assessed, as well
as the rules for their implementation.WT/REG55/1
Page 9
4. The Parties shall ensure transparency in the area of state aid, inter alia  by reporting annually
to the Joint Committee on the total amount and the distribution of the aid given and by providing to
the other Party, upon request, information on aid schemes and on particular individual cases of state
aid.
5. If a Party considers that a particular practice, including that in agriculture:
- is incompatible with the terms of paragraph 1, and is not adequately dealt with under
the implementing rules referred to in paragraph 3, or
- in the absence of rules, referred to in paragraph 3, causes or threatens to cause serious
prejudice to the interest of that Party or material injury to its domestic industry,
it may take appropriate measures under the conditions of and in accordance with the
provisions laid down in Article 31 to this Agreement.
6. Such appropriate measures may only be taken in conformity with the procedures and under
the conditions laid down by the GATT 1994 and by the WTO, and any other relevant instruments
negotiated under their auspices, which are applicable between the Parties concerned.
Article 24
Public Procurement
1. The Parties consider the liberalization of their respective public procurement markets as an
objective of this Agreement.
2. The Parties shall progressively adjust their respective rules, conditions and practices with a
view to grant suppliers of the other Party by the end of the transitional period at the latest access to
contract award procedures on their respective public procurement markets taking into account the
provisions of the Agreement on Government Procurement of the WTO.
3. The Joint Committee shall examine developments related to the achievement of the objectives
of this Article so as to ensure free access, transparency and mutual opening of their respective public
procurement markets.
4. The Parties shall endeavour to accede to the relevant Agreements negotiated under the
auspices of the GATT 1994 and the WTO.
Article 25
Protection of Intellectual Property
1. The Parties shall grant and ensure protection of intellectual property rights on a
non-discriminatory basis, including measures for the grant and enforcement of such rights, even in the
cases when they are violated.  By the end of transitional period the protection shall be gradually
improved to a level corresponding to the substantive standards of the multilateral agreements whichare specified in Annex III to this Agreement.
2. For the purpose of this Agreement "intellectual property protection" includes in particular
protection of copyright and related  rights, includin g computer programs, data bases, trade and serviceWT/REG55/1
Page 10
marks, geographical indicators including mark of or igin, patents, industrial designs, new varieties of
plants, topographies of integrated circuits, as well as undisclosed information.
Article 26
Dumping
1. If a Party finds that dumping within the mean ing of Article VI of the GATT 1994 is taking
place in trade relations governed by this Agreement, it may take appropriate measures against that
practice in accordance with the WTO Agreement on Implementation of Article VI of the GATT 1994
under the conditions and in accordance with the procedure laid down in Article 31 to this Agreement.
Article 27
General Safeguards
1. Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause:
(a) serious injury to domestic producers of like or directly competitive products
in the territory of the importing 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 31 to this Agreement.
Article 28
Structural Adjustment
1. Exceptional measures of limited duration which derogate from the provisions of Article 4 to
this Agreement may be taken by any of the Parties in the form of increased customs duties.
2. These measures may only concern infant industries, or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce important
social problems.
3. Customs duties on imports applicable in the Party concerned to products originating in the
other Party introduced in accordance with the paragraphs 1 and 2 of this Article  may not exceed25 per cent ad valorem  and shall maintain an element of preference in customs duties for products
originating in the Parties. The total value of imports of the products which are subject to these
measures may not exceed 15 per cent of total imports of industrial products from the other Party as
defined in Chapter I to this Agreement, during the last year for which statistics are available.
4. These measures shall be applied for a period not exceeding the transitional period determined
in paragraph 1 of the Article 1 to this Agreement.  They shall cease to apply on January 1, 2001 at the
latest.WT/REG55/1
Page 11
5. The Party concerned shall inform the other Party of any exceptional measures it intends to
take and, at the request of the other Party, cons ultations shall be held immediately within the
Joint Committee on such measures and the sectors to which they apply prior to their introduction.
When taking such measures the Party concerned shall provide the Joint Committee with a schedule
for the elimination of the customs duties introduced under this Article.  This schedule shall providefor a phasing out of these duties starting at the latest two years after their introduction, at equal annual
rates. The Joint Committee may decide on a different schedule.
Article 29
Re-export and Serious Shortage
Where compliance with the provisions of Articles 7 and 9 to this Agreement leads to:
(a) re-export towards a third country against which the exporting Party maintains for the
product concerned quantitative export restrictions, export duties or measures orcharges 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 to 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 procedure laid down in Article 31 to this Agreement.
Article 30
Fulfilment of Obligations
1. The Parties shall take any general or specific measures required to fulfil their obligations
under  this Agreement. They shall see to it that the objectives set out in this Agreement are attained.
2. If a Party considers that the other Party has failed to fulfil an obligation under this
Agreement, the Party concerned may take appropriate measures under the conditions and in
accordance with the procedure laid down in Article 31 to this Agreement.
Article 31
Procedure for the Application of Safeguard Measures
1. Before initiating the procedure for the application of safeguard measures set out in the
following paragraphs of this Article, the Parties shall endeavour to solve any differences betweenthem through direct consultations.
2. In the event of a Party subjecting imports of products liable to give rise to the situation
referred to in Article 27 to this Agreement to an administrative procedure having as its purpose the
rapid provision of information on the trend of trade flows, it shall inform the other Party.
3. Without prejudice to paragraph 7 of this Article, a Party which considers resorting to
safeguard measures shall promptly notify the other Party thereof and supply all relevant information.WT/REG55/1
Page 12
Consultations between the Parties shall take pla ce without delay within the Joint Committee with a
view to finding a solution acceptable to the Parties.
4. (a) With regard to Articles 26, 27 and 29 to this Agreement, the Joint Committee shall
examine the case or situation and may take any decision needed to put an end tothe difficulties notified by the Party concerned. In the case of the absence of such
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.
(b) As regards Article 30 to this Agreement, the Party concerned may take appropriate
measures after the consultations have been concluded or  a period of three monthshas elapsed from the date of the  notification to the other Party.
(c) With regard to Article 22 and 23 to this Agreement, the Party concerned shall give
the Joint Committee all the assistance requi red in order to examine the case and,
where appropriate, eliminate the practice objected to. If the Party in question failsto put an end to the practice objected to within the period fixed by the Joint
Committee or if the Joint Committee fails to reach an agreement within thirty
working days of the matter being referred to it, the Party concerned may adopt the
appropriate measures to deal with the difficulties resulting from the practice in
question.
5. The safeguard measures taken shall be immediately notified to the other Party.  They shall be
limited with regard to their extent and to their duratio n to what is strictly necessary in order to rectify
the situation giving rise to their application and shall not be in excess of the injury caused by the
practice or the difficulty in question. Priority shall be given to such measures which will least disturbthe functioning of this Agreement. The measures ta ken by a Party against an action or an omission of
the other Party may only affect the trade with that Party.
6. The safeguard measures taken shall be the object of periodic consultations within the
Joint Committee with a view to their relaxation as soon as possible, or abolition when conditions no
longer justify their maintenance.
7. Where exceptional circumstances requiring immediate action make prior examination
impossible, the Party concerned may, in the cases of Articles 26, 27 and 29 to this Agreement, apply
forthwith the provisional measures strictly necessary to remedy the situation. The measures taken
shall be notified  without delay and consultations between the Parties shall take place as soon as
possible within the Joint Committee.
Article 32
Balance of Payments Difficulties
1. The Parties shall endeavour to avoid the imposition of restrictive measures including
measures relating to imports for balance of payments purposes.
2. Where one of the Parties is in serious balance of payments difficulties, or under imminent
threat thereof, the Party concerned may, in accordance with the conditions established under the
GATT 1994 and the WTO, adopt restrictive measures, including measures related to imports, which
shall be of limited duration and may not go beyond what is necessary to remedy the balance of
payments situation. The measures shall be progressively relaxed as balance of payments conditionsWT/REG55/1
Page 13
improve and they shall be eliminated when conditio ns no longer justify their maintenance.  The Party
concerned shall inform the other Party forthwith of their introduction and, whenever practicable, of a
time schedule for their removal.
Article 33
Evolutionary Clause
1. Where a Party considers that it would be useful in the interests of 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 theJoint Committee to examine such request and, where appropriate, may make recommendations,
particularly with a view to opening negotiations.
2. Agreements resulting  from the procedure referred to in paragraph 1 will be subject to
ratification or approval by the Parties in accordance with their internal legislation.
Article 34
The Joint Committee
1. A Joint Committee is hereby established and shall be composed of the representatives of the
Parties.
2. The implementation of this Agreement shall be supervised and administered by the
Joint Committee.
3. For the purpose of the proper implementation of this Agreement, the Parties shall exchange
information and, at the request of any Party, shall hold consultations within the Joint Committee.  The
Committee shall keep under review the possibility of further removal of the obstacles to trade between
the Parties.
4. The Joint Committee may take decisions in the cases provided for in this Agreement.  On
other matters the Committee may take recommendations.
Article 35
Procedures of the Joint Committee
1. For the proper implementation of this Agreement the Joint Committee shall meet whenever
necessary but at least once a year. Each Party may request that a meeting be held.
2. The Joint Committee shall act by common agreement.3. If the representative of a Party in the Joint Committee has accepted, under reservation, a
decision subject to the fulfilment of  internal lega l requirements, the decision shall enter into force, if
no later date is contained therein, on the date of the receipt of a written notification as to the fulfilment
of such requirements.WT/REG55/1
Page 14
4. For the purpose of this Agreement the Joint Committee shall adopt its rules of procedure
which shall inter alia contain provisions for conveying meeting and for the designation of the
Chairman and his/her term of office.
5. The Joint Committee may decide to set up such subcommittees and working groups as it
considers necessary to assist it in accomplishing its tasks.
Article 36
Services and Investment
1. The Parties recognise the growing importance of certain areas, such as services and
investments. In their efforts to gradually develop and broaden their cooperation, in particular in the
context of the European integration, they will co-operate with the aim of achieving a progressive
liberalization and mutual opening of markets for inve stments and trade in services, taking into account
relevant provisions of the General Agreement on Trade in Services.
2. The Parties will discuss in the Joint Committee the possibilities to extend their trade relations
to the fields of foreign direct investment and trade in services.
Article 37
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 of the Parties and in particular the provisions concerning rules of origin provided for by
this Agreement.
Article 38
Annexes, Protocols and Amendments
1. The Annexes and the Protocols to this Agreement are an integral part of it.  The
Joint Committee may decide to amend the Annexes and Protocols in accordance with the provisions
of paragraph 3 of the Article 35 to this Agreement.
2. Amendments to this Agreement other than those decided upon in accordance with
paragraph 4 of Article 34 to this Agreement, and which are approved by the Joint Committee, shall be
submitted to the other Party for acceptance and shall enter into force if accepted by both Parties.
Article 39
Entry into Force
This Agreement shall enter into force on the first day of the month following the date when
the Parties have notified each other through diplomatic channels that their respective internal
requirements for the entry into force of this Agreement have been fulfilled.WT/REG55/1
Page 15
Article 40
Provisional Application
This Agreement shall be applied provisionally from January 1, 1998.
Article 41
Validity and Denounciation
This Agreement is concluded for an indefinite period of time. Each Party may denounce it
through diplomatic channels by  a written notification to the other Party. In such case the Agreement
shall be terminated on the first day of seventh month 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 this Agreement.
DONE at Zagreb, this 12th day of December 1997 in duplicate copies in the Slovenian,
Croatian and English languages, all texts being equally authentic. In case of divergences in
interpretation the English text shall prevail.
For the Republic of Slovenia For the  Republic of Croatia
Janez Drnovšek (s) Zlatko Mateša (s)
__________WT/REG55/1
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ANNEX I
(referred to in Articles 2 and 11)
CN Code Description of products
3502 Albumins (including concentrates of two or more whey proteins,
containing by weight more than 80% cent whey proteins, calculated
on the dry matter), albuminates and other albumin derivates.WT/REG55/1
Page 17
ANNEX II
(referred to in paragraph 2 of Article 9)
The Republic of Croatia shall abolish, by January 1, 2001 at the latest, quantitative restrictions
on exports of the following products:
HS Codes Description of products
27.09 2709.00 Petroleum oils and oils obtained from bituminous
minerals, crude:
2709.001 --- Petroleum oils
27.11 Petroleum gases and other gaseous hydrocarbons
2711.2 - In gaseous state:
2711.21 --- Natural gas
41.01 Raw hides and skins of bovine or equine animals
(fresh, or salted, dried, limed, pickled or otherwise
preserved, but not tanned, parchment-dressed or
further prepared), whether or not dehaired or split
41.02 Raw skins of sheep or lambs (fresh, or salted, dried,
limed, pickled or otherwise preserved, but not tanned,
parchment-dressed or further prepared), whether or
not with wool on or split, other than those excluded by
note 1.c) to this chapter:
41.04 Leather of bovine or equine animals, without hair on,
other than leather of heading No 41.08 or 41.09
44.01 Fuel wood, in logs, in bullets, in twigs, in faggots or in
similar forms; wood in chips or particles; sawdust and
wood waste and scrap, whether or not agglomerated in
logs, briquettes, pellets or similar forms:
4401.10 - Fuel wood, in logs, in bulle ts, in twigs, in faggots or
in similar forms.
44.03 Wood in the rough, whether or not stripped of bark or
sapwood, or roughly squared:
4403.10 - treated with paint, stains, creosote or other
preservativesWT/REG55/1
Page 18
HS Codes Description of products
4403.20 - Other, coniferous:
4403.201 --- exotic coniferous
4403.202 --- poles for splitting and for veneering from other
coniferous wood
4403.203 --- cellulose
4403.204 --- Poles for wires, not impregnated
4403.209 --- Other
4403.9 - Other
4403.91 -- Of oak (Quercus spp.)
4403.911 --- poles for splitting and for veneering
4403.912 --- cellulose
4403.919 --- Other
4403.92 -- Of beech (Fagus spp)
4403.921 --- for splitting and for veneering
4403.922 --- cellulose
4403.929 --- Other
4403.99 --- Other:
4403.991 --- Poles for splitting and for veneering of other hard
not - coniferous:
4403.9911 --- Poles for splitting and walnut tree veneer
4403.9919 --- Other
4403.992 --- Cellulose tree from other hard non-coniferous
4403.993 --- Poles for splitting and for veneering for poplar
4403.994 --- Cellulose wood of poplarWT/REG55/1
Page 19
HS Codes Description of products
4403.995 --- Poles for splitting and for veneering of other soft
non-coniferous
4403.996 --- cellulose wood of other soft non-coniferous
4403.999 --- other
47.07 Recovered (waste and scarp) paper or paperboard
4707.10 - Unbleached kraft paper or paperboard or corrugated
paper or paperboard
4707.20 - other paper or paperboard made mainly or bleached
chemical pulp not coloured in the mass
4707.30 - paper or paperboard made mainly of mechanical
pulp (for example, newspapers, journals and similar
printed material)
4707.301 --- Old and unsold newspapers
4707.90 - other, including unsorted waste and scarp
70.01 7001.00 Cullet and other waste and scarp of glass; glass in the
mass:
7001.002 --- other glass in the massWT/REG55/1
Page 20
ANNEX III
(referred to in paragraph 1 of Article 25)
On Intellectual Property
1. The Party which is not a member of one or more agreements listed below, shall accede to the
following conventions in the period of three years after the date of entry into force this Agreement.
- WTO Agreement on Trade Related Aspects of Intellectual Property Rights
(TRIPS Agreement;
- International Convention for the Protection of Performers, Producers of Phonograms
and Broadcasting Organizations of 26 October 1961 (Rome Convention);
- Convention for the Protection of Producers of Phonograms Against Unauthorised
Duplication of Their Phonograms (Geneva,1971);
- Protocol relating to the Madrid Agreement concerning the International Registration of
Marks (Madrid, 1989);
- Budapest Treaty on the International Recognition of the Deposit of Micro-organisms
for the purpose of Patent Procedures (Budapest, 1977);
- International Convention for the Protectio n of New Varieties of Plants (UPOV,
Geneva 1991).
2. The Parties confirm the importance they attach  to the obligations arising from the following
multilateral conventions:
- Bern Convention  for the Protection of Literary and  Artistic Works of
9 September 1971 (Paris Act, 1971);
- Paris Convention  for the Protection of Industrial Property of 20 March 1996
(Stockholm Act, 1967);
- Patent Co-operation Treaty (Washington, 1970, amended in 1979 and modified in
(1984).WT/REG55/1
Page 21
PROTOCOL 1
(referred to in paragraph 2 of Article 4)
Abolition of Customs Duties on Imports between the Republic of Slovenia
and the Republic of Croatia
1. Customs duties on imports applicable in the Republic of Croatia to products originating in the
Republic of Slovenia, listed in Annex A to this Protocol, shall be progressively reduced in accordance
with the following timetable:
-.on January 1, 1998 -.to 70% of the basic duty;
- on January 1, 1999 - to 40% of the basic duty;
- on January 1, 2000 -.the remaining duties shall be abolished.
2. Customs duties on imports applicable in the Republic of Croatia to products originating in the
Republic of Slovenia, listed in Annex B to this Protocol, shall be progressively reduced in accordance
with the following timetable:
- on January 1, 1998 - to 80% of the basic duty;
- on January 1, 1999 - to 60% of the basic duty;
- on January 1, 2000 - to 40% of the basic duty;
- on January 1, 2001 - the remaining duties shall be abolished.
3. Customs duties on imports applicable in the Republic of Slovenia to products originating in
the Republic of Croatia, listed in Annex C to this Protocol, shall be progressively reduced in
accordance with the following timetable:
- on January 1, 1998 - to 70% of the basic duty;
- on January 1, 1999 - to 40% of the basic duty;
- on January 1, 2000 - the remaining duties shall be abolished.
4. Customs duties on imports applicable in the Republic of Slovenia to products originating in
the Republic of Croatia, listed in Annex D to this Protocol, shall be progressively reduced in
accordance with the following timetable:
- on January 1, 1998 - to 80% of the basic duty;
- on January 1, 1999 - to 60% of the basic duty;
- on January 1, 2000 - to 40% of the basic duty;
- on January 1, 2001 - the remaining duties shall be abolished.
5. Customs duties on imports applicable in the Republic of Slovenia to products originating in
the Republic of Croatia, listed in Annex E to this Protocol, shall be for the years 1998 and 1999
reduced to the level set out in this Annex and abolished on January 1, 2000.
6. As from the entry into force of this Agreement all products, other than those listed in
Annexes A, B, C, D and E to this Protocol, and originating in the Republic of Croatia or in the
Republic of Slovenia, are subject to zero customs duties when imported to the Republic of Croatia or
to the Republic of Slovenia.WT/REG55/1
Page 22
RECORD OF UNDERSTANDINGS
1. The Parties declare their readiness to examine in the Joint Committee the possibility of
extending to each other any concessions they grant or will grant to third countries with which they
concluded a free trade agreement or other similar agreement to which Article XXIV of the
GATT 1994 applies. 
2. As regards paragraph 2 of Article 3 to this Agreement, the Parties agree that where a
reduction of duties is effected by way of a suspension of duties made for a particular period of time,
such reduced duties shall replace the basic duties only for the period of such suspension; and that
whenever a partial suspension of duties is made, the preferential margin between the Parties will bepreserved.
3. The Parties shall apply licences which shall not negatively affect the development of mutual
trade and shall be in accordance with the provisions of the GATT 1994. The Parties agree that
Article 9 to this Agreement does not apply when measures covered by this Article might be requiredfor the administration of international obligations.
4. When elaborating the criteria and rules indicated in paragraph 3 of Article 23 to this
Agreement, the Parties:
- shall aim at ensuring their greatest possible conformity with the relevant criteria and
rules used under the Agreements establishing an Association between each of theParties to this Agreement and the European Communities;
- shall define the conditions and/or situations when temporary derogations from the
provisions of paragraph 1 may be applicable;
- shall review conditions under which actions against state aid practices may be taken.
5. The Parties recognize the increasing significance of trade in services. With progressive
development and extension of co-operation the Parties shall aim to reach full liberalisation and mutual
opening of trade services markets.
The Parties shall discuss this co-operation within the Joint Committee and shall continue to
develop and deepen relations established by the Agreement.
6. The Parties consider that an arbitration procedure could be envisaged for disputes which
cannot be settled through consultations between the Parties or in the Joint Committee.  Such a
possibility may be further examined in the Joint Committee.
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