RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG7/3
WT/REG8/3
WT/REG9/3
7 August 1998
(98-3116)
Committee on Regional Trade Agreements Original:  English
EXAMINATION OF THE FREE TRADE AGREEMENTS BETWEEN
THE EUROPEAN COMMUNITIES AND ESTONIA, LATVIA AND LITHUANIA
Communication from the European Communities
The following information has been received from the Permanent Delegation of the European
Commission, with the request that it be distributed to WTO Members:
A. Timetables for the elimination of barriers to trade
B. Trade statistics
_______________
A. TIMETABLES FOR THE ELIMINATION OF BARRIERS TO TRADE
A1. Free Trade Agreement between the European Communities (EC) and Estonia
Entry into force of the Free Trade Agreement (FTA):  1 January 1995
Entry into force of the Europe Agreement (EA):1  1 February 19982
Industrial products  (EA Title III, Chap. 1, Articles 9-15)
EC Estonia
Customs duties At entry into force of the FTA At entry into force of the FTA
Quantitative restrictions
(QRs) on imports andmeasures having equivalenteffectAt entry into force of the FTA At entry into force of the FTA
Customs duties, QRs and
measures having an
equivalent effect on exportsAt entry into force of the FTA At entry into force of the FTA
Processed Agricultural Products Title III, (EA Chap. 1 Article 16 and Protocol 2)
EC Estonia
Customs duties on imports
(Protocol 2 with Annexes)Tariff concessions on products
listed in Annex I of Protocol 2 forquantities increasing until year2000, as indicated in  Annex II ofProtocol 2No restrictions
                                                     
1The trade provisions were transferred from the FTA.
2Text of the Europe Agreement:  Official Journal of the European Communities (OJ) L 68 of
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Agriculture (EA Title III, Chapter II)
EC Estonia
Customs duties on imports
(EA Article 19)Concession for products listed in
Annex III, IV and V for gradually
increasing quantitiesNo restrictions
QRs  At entry into force of the FTA
(Article 19)No restrictions
Fishery Products (EA Title III, Chapter III)
EC Estonia
Customs duties on imports Tariff quotas at preferential duties,
as indicated in Annex VINo restrictions
A2. Free Trade Agreement between the EC and Latvia
Entry into force of the FTA:  1 January 1995
Entry into force of the EA: 1 February 19983
Additional Protocol establishing a free trade regime in textiles products entered into force ona provisional basis on 01/01/98 (Council Division 98/137/EC); it is now waiting formal
adoptionAdditional Protocol following the latest enlargement and the conclusion of the Uruguay
Round is awaiting finalization
Industrial products except textiles (EA Chap. I, Articles 8-15)
EC Latvia
Customs duties At entry into force of the FTA At entry into force of the FTA, except for
products listed in:Annex II: as of 1.1.1997
Annex III:  basic duty reduction of 50%
on 1.1.1997, to be eliminated on 1.1.1999
QRs on imports andmeasures having equivalenteffectAt entry into force of the FTA At entry into force of the FTA
Customs duties, QRs and
measures having an
equivalent effect on exportsAt entry into force of the FTA Customs duties:  at entry into force of the
FTA, except for Annex IV (at the latest
on 31.12.1998)
QRs:  at entry into force of the FTA
Textiles: Additional Protocol, Council Decision 98/ 137/EC applied on a provisio nal basis since 01/01/98
(formal adoption on-going)
EC Latvia
Customs duties on imports(new Article 16 of EAaccording to Additional
Protocol)From 1.1.1998, on a  provisional
basis, for products in Chap. 50 to63 of the combined nomenclatureFrom 1.1.1998, on a  provisional basis,
for products in Chap. 50 to 63 of thecombined nomenclature
QRs and measures having anequivalent effect on importsAlready eliminated from 1.1.1993 Non-discriminatory treatment as regards
QRs (Protocol 1, Article 13)
                                                     
3Text of the EA: OJ L 26 of 2 February 1998.WT/REG7/3
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Processed Agricultural Products (EA Article 19 and Protocol 2)
EC Latvia
Customs duties on imports
(Protocol 2 with Annexes)Tariff concessions on products
listed in Annex I of Protocol 2 forquantities increasing until
year 2000Tariff concessions on products listed in
Annex II, with duties to decrease until1.1.2002
Agriculture (EA Chapter II)
EC Latvia
Customs duties on imports(EA Article 20)Concessions for products listed in
Annexes VII and VIII (forgradually increasing quantities)Concessions for products listed in
Annexes IX, X and XI; tariff reductionsgradually until 2000.  Quotas forproducts are listed in Annex XI of which
some will increase over six years
QRs At FTA entry into force At FTA entry into force
Fishery Products (FTA Chapter III)
EC Latvia
Customs duties on imports Tariff quotas at preferential duties,
as indicated in Annex XIITariff quotas at preferential duties, as
indicated in Annex XIII
A3. Free Trade Agreement between the European Communities (EC) and Lithuania
Entry into force of the FTA:  1 January 19954
Signature of the EA:  12 June 1995
Entry into force of the EA: 1 February 19985
Additional Protocol establishing a free trade regime in textiles products entered into force on01/01/98 (Council Decision 98/137/EC);Additional Protocol following the latest enlargement and the conclusion of the
Uruguay Round is awaiting finalization
Industrial products other than ECSC and textiles (EA Chap. I, Articles 9-17)
EC Lithuania
Customs duties At entry into force of the FTA At entry into force of the FTA, except for
products listed in:
Annex II: as of 1.97
Annex III:  basic duty reduction of 50%on 1.98 to be eliminated on 1.2001Annex VI: on 12.2001
QRs on imports andmeasures having equivalenteffectAt entry into force of the FTA At entry into force of the FTA
Customs duties, QRs and
measures having an
equivalent effect on exportsAt entry into force of the FTA Customs duties:  at entry into force of the
FTA, except for Annex V (at the latest on1.2001)
QRs: :  at entry into force of the FTA
                                                     
4Text of the FTA: OJ L 375 of 31 December 1994.
5Text of the EA: OJ L 51 of 20 February 1998.WT/REG7/3
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Textiles: Additional Protocol, Council Decision 98/ 137/EC applied on a provisio nal basis since 01/01/98
(formal adoption on-going)
EC Lithuania
Customs duties on imports
(new Article 16 of EA
according to Additional
Protocol)From 1.1.1998 (free trade in textiles
apply)From 1.1.1998 (free trade in textiles
apply)
QRs and measures having anequivalent effect on importsFrom 1.1.1998 Non-discriminatory treatment on
application of QRs (Protocol 1,Article 13)
Processed Agricultural Products (EA Article 19 and Protocol 2)
EC Lithuania
Customs duties on imports(Protocol 2 with Annexes)Tariff concessions on products
listed in Annex I of Protocol 2increasingProtocol 2: duties reduced up to 12.2001
(except for goods in Annex III)Non-agricultural duty componentremoved by 12.2001 and agriculturalduty component reduced to 0% by 2001
Agriculture and Fisheries (EA Articles 18 to 21 and 22-23), except Fish Products not included in AnnexesXIV and XV
EC Lithuania
Customs duties on imports(EA Article 20)Annex IX sets variable customs
duties from zero up to 2001Annex X sets variable tariff quotasup to 2001
Annex XI reduces by 60% duties
within tariff quotas up to 2001Since 1.1995 except for goods in:
Annex XII: diminishing duties up to1.2001Annex XIII:  diminishing duties up to
2001 (as per Annex XII) but within tariff
quotas
QRs and measures having anequivalent effect on importsAnnex XIV grants tariff quotas at
preferential duties to fisheryproducts originating in Lithuania upto 2001Annex XV fishery products are granted
sliding tariff reductions up to 1.2001
B. TRADE STATISTICS
B1. EU trade with Estonia
Table 1:  EU's exports to and imports from Estonia in 1992-1997
Exports Imports Balance Export/
import
ratioExport
growthImport
growthExport share
in extra-EU
tradeImport share
in extra-EU
trade
Million ECU % Annual % change %
1992 125 95 +30 132 … … 0.03 0.02
1993 211 182 +29 116 68 91 0.04 0.04
1994 308 267 +41 115 46 47 0.06 0.05
1995 (EU-15) 1,348 889 +459 152 32* 50* 0.24 0.16
1996 1,685 1,130 +555 149 25 27 0.27 0.19
1997 2,346 1,496 +850 157 39 32 0.33 0.22
*Compared to 1994 EU-12 figure plus 3 new Member States' trade with Estonia.WT/REG7/3
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Table 2:  Most important EU-15 exports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Machinery & electrical (XVI) 657 28 54
2.  Agriculture, incl. processed (I-IV) 274 12 21
3.  Transport equipment (XVII) 262 11 82
4.  Textiles (XI) 181 8 20
5.  Base metals & articles (XV) 179 7 40
6.  Mineral products (V) 147 6 25
7.  Chemical products (VI) 145 6 32
Subtotal 1,845 78 41
ALL SECTORS 2,346 100 40
Table 3:  Most important EU-15 imports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Mineral products (V) 301 20 37
2.  Wood, etc. (IX) 290 19 48
3.  Machinery & electrical (XVI) 242 16 55
4.  Textiles (XI) 230 15 21
5.  Base metals & articles (XV) 120 8 17
6.  Misc. manufactures (XX) 101 7 36
7.  Agriculture, incl. processed (I-IV) 60 4 62
Subtotal 1,344 90 36
ALL SECTORS 1,496 100 32
Source:  Eurostat.
B2. EU trade with Latvia
Table 1:  EU's exports to and imports from Latvia in 1992-1997
Exports Imports Balance Export/
import
ratioExport
growthImport
growthExport share
in extra-EU
tradeImport share
in extra-EU
trade
Million ECU % Annual % change %
1992 171 466 -295 37 … … 0.04 0.095
1993 310 629 -319 49 81 32 0.06 0.13
1994 486 734 -248 66 56 20 0.09 0.14
1995 (EU-15) 939 1,126 -187 83 32* 18* 0.17 0.21
1996 1,103 1,191 -88 93 17 6 0.18 0.20
1997 1,525 1,288 +237 118 38 8 0.21 0.19
*Compared to 1994 EU-12 figure plus 3 new Member States' trade with Latvia.
Table 2:  Most important EU-15 exports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Machinery & electrical (XVI) 331 22 63
2.  Agriculture, incl. processed (I-IV) 211 14 -4
3.  Transport equipment (XVII) 176 11 67
4.  Chemical products (VI) 145 9.5 61
5.  Mineral products (V) 144 9 58
6.  Textiles (XI) 131 8 28
7.  Base metals & articles (XV) 68 4 41
Subtotal 1,206 79 40
ALL SECTORS 1,525 100 38WT/REG7/3
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Table 3:  Most important EU-15 imports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Wood, etc. (IX) 483 37 57
2.  Mineral products (V) 360 28 -29
3.  Textiles (XI) 178 14 15
4.  Base metals & articles (XV) 91 7 7
5.  Machinery & electrical (XVI) 36 3 63
6.  Misc. manufactures (XX) 31 2 63
7.  Chemical products (VI) 30 2 0
Subtotal 1,209 94 7
ALL SECTORS 1,288 100 8
Source:  Eurostat.
B3. EU trade with Lithuania
Table 1:  EU's exports to and imports from Lithuania in 1992-1997
Exports Imports Balance Export/
import
ratioExport
growthImport
growthExport share
in extra-EU
tradeImport share
in extra-EU
trade
Million ECU % Annual % change %
1992 225 442 -217 51 … … 0.05 0.09
1993 478 641 -163 75 112 45 0.10 0.13
1994 724 750 -26 97 51 17 0.13 0.14
1995 (EU-15) 1,017 970 +47 105 19* 15* 0.18 0.18
1996 1,452 1,136 +316 128 43 17 0.23 0.20
1997 2,138 1,311 +827 163 47 15 0.30 0.19
*Compared to 1994 EU-12 figure plus 3 new Member States' trade with Lithuania.
Table 2:  Most important EU-15 exports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Machinery & electrical (XVI) 465 22 41
2.  Transport equipment (XVII) 305 14 85
3.  Agriculture, incl. processed (I-IV) 302 14 40
4.  Textiles (XI) 233 11 36
5.  Chemical products (VI) 197 9 57
6.  Plastic products (VII) 133 6 44
7.  Base metals & articles (XV) 118 5 57
Subtotal 1,753 82 49
ALL SECTORS 2,138 100 47
Table 3:  Most important EU-15 imports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1  Textiles (XI) 390 30 40
2.  Wood, etc. (IX) 173 13 15
3.  Chemical products (VI) 149 11 -9
4.  Mineral products (V) 136 10 -12
5.  Machinery & electrical (XVI) 112 8 23
6.  Base metals & articles (XV) 88 7 13
7.  Agriculture, incl. processed (I-IV) 85 6 31
Subtotal 1,133 86 15
ALL SECTORS 1,311 100 15
Source:  Eurostat.WT/REG7/3
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B4. EU trade with the three Baltic States
Table 1:  EU's exports to and imports from the three Baltic States in 1992-1997
Exports Imports Balance Export/
import
ratioExport
growthImport
growthExport share
in extra-EU
tradeImport share
in extra-EU
trade
Billion ECU % Annual % change %
1992 0.5 1.0 -0.4 52 … … 0.12 0.21
1993 1.0 1.4 -0.4 69 100 43 0.21 0.30
1994 1.5 1.7 -0.2 87 52 21 0.28 0.32
1995 (EU-15) 3.3 2.9 +0.3 111 28* 25* 0.59 0.45
1996 4.2 3.4 +0.8 122 27 17 0.68 0.59
1997 6.0 4.1 +1.9 146 43 20 0.84 0.61
*Compared to 1994 EU-12 figure plus 3 new Member  States' trade with the three Baltic States.
Table 2:  Most important EU-15 exports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Machinery & electrical (XVI) 1,450 24 51
2.  Agriculture, incl. processed (I-IV) 787 13 18
3.  Transport equipment (XVII) 743 12 80
4.  Textiles (XI) 546 9 29
5.  Chemical products (VI) 488 8 50
6.  Base metals & articles (XV) 366 6 46
7.  Plastic products (VII) 319 5 46
Subtotal 4,703 78 44
ALL SECTORS 6,009 100 42
Table 3:  Most important EU-15 imports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Wood, etc. (IX) 946 23 44
2.  Textiles (XI) 799 19.5 28
3.  Mineral products (V) 798 19 -10
4.  Machinery & electrical (XVI) 391 9 45
5.  Base metals & articles (XV) 299 7 13
6.  Chemical products (VI) 210 5 -14
7.  Agriculture, incl. processed (I-IV) 172 4 41
Subtotal 3,615 88 18
ALL SECTORS 4,096 100 18
Source:  Eurostat.
B5. EU-15 trade with 10 Associated CEECs6
Table 1:  EU-15 exports to and imports from 10 Associated CEECs in 1996-1997
Exports Imports Balance Export/
import
ratioExport
growthImport
growthExport share
in extra-EU
tradeImport share
in extra-EU
trade
Billion ECU % Annual % change %
1996 51.3 47.1 +4.2 109 … … 10.2 8.1
1997 78.2 56.6 +21.6 138 52 20 10.9 8.4
                                                     
6Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak
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Table 2:  Most important EU-15 exports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Machinery & electrical (XVI) 24,391 31 28
2.  Transport equipment (XVII) 9,195 12 26
3.  Textiles (XI) 7,213 9.2 17
4.  Chemical products (VI) 7,046 9 22
5.  Base metals & articles (XV) 5,864 7.5 28
6.  Plastic products (VII) 4,855 6.2 27
7.  Agriculture, incl. processed (I-IV) 4,766 6 6
Subtotal 63,330 81 23
ALL SECTORS 78,266 100 23
Table 3:  Most important EU-15 imports in 1997
Sector (Common Customs Tariff sections) Million ECU % share of total % change over 1996
1.  Machinery & electrical (XVI) 12,736 22.5 40
2.  Textiles (XI) 7,972 14 14
3.  Base metals & articles (XV) 7,463 13 18
4.  Transport equipment (XVII) 5,310 9 29
5.  Misc. manufactures (XX) 3,464 6 14
6.  Agriculture, incl. processed (I-IV) 3,056 5.4 5
7.  Mineral products (V) 3,007 5 2
Subtotal 43,008 76 23
ALL SECTORS 56,656 100 20
Source:  Eurostat.
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