WORLD TRADE  
ORGANIZATION  WT/REG186/1 
18 February 2005 
 
 (05-0685) 
Committee on Regional Trade Agreements Original:   English 
  
FREE TRADE AGREEMENT BETWEEN MOLDOVA AND BULGARIA 
 
  The following communication, dated 14 January 2 005, is being circulated at the request of the 
Delegation of Moldova. 
_______________ 
 
 
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF BULGARIA  
AND THE REPUBLIC OF MOLDOVA
* 
 
PREAMBLE  
  The Republic of Bulgaria  and the Republic of Moldova  hereinafter referred to as Contracting 
Parties,    Reaffirming  their firm commitment to pluralistic democracy based on the rule of law, human 
rights and fundamental freedoms; 
  Reaffirming  their desire to actively participate in the process of economic integration in 
Europe;  
 Taking into account  the importance of historic, traditiona l and spiritual relationships between 
them and spiritual values they share;   Reaffirming  their commitment to the principles of a market economy, which constitutes the 
basis for their relations;   
 Desirous  to develop and strengthen fri endly relations, especially in the fields of trade and 
economic co-operation, with the aim to contribut e to the development of economic co-operation 
between the two countries and to increase the scope of mutual trade exchange;   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; 
  Resolved  to this end to eliminate progressively the obstacles to substantially all their mutual 
trade, in accordance with the provisions of the General Agreement on Tariffs and Trade 1994 
(hereinafter referred to as "GATT 1994") a nd the Agreement establishing the World Trade 
Organisation (hereinafter referred to as "Agreement establishing WTO"); 
  Considering  that no provision of this Agreemen t may be interpreted as exempting the 
Contracting Parties from their obligations under othe r international agreements, in particular, the 
Agreement establishing the WTO; 
                                                     
 
* The associated Annexes have been submitted to  the Secretariat for consultation by interested 
Members (office 1174). WT/REG186/1 
Page 2  
 
  
 Have agreed  as follows: 
Article 1 
 
Objectives
 
 
1. The Contracting Parties shall gradually establish a free trade area in a transitional period 
ending on 1 January 2007 in accordance with the provis ions of this Agreement and in conformity with 
the definition, set out in Article XXIV of th e GATT 1994 and the Agreement establishing WTO. 
2. The objectives of this Agreement are: 
(a) to promote, through the expansion of mutu al trade, the harmonious development of 
economic relations between the Contracting Parties, improvement of living standards 
and conditions of work, raising producti vity and enhancing financial stability; 
(b) to provide fair conditions for carrying out  loyal competition for trade between the 
Contracting Parties; 
(c) to gradually eliminate difficulties and restric tions in trade in goods, including also the 
agricultural products; 
(d) to create conditions for further encouragemen t of investments, particularly for the 
development of joint investments in both countries; 
(e) to contribute in this way, 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 sh all apply to industrial products originating in the Contracting 
Parties. 
2. The term “industrial products” means for the purpose of this Agreement the products falling 
within Chapters 25 to 97 of the Harmonized Co mmodity Description and Coding System with the 
exception of the products listed in Annex I to this Agreement. 
Article 3 
 
Basic Duties
 
 
1. For the commercial exchange covered by this  Agreement, the Customs Tariffs of the 
Contracting Parties shall be applied to the classification of goods for imports into them. 
2. For each product the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied shall be the MFN duty in force on the date of entry into force of this Agreement.  WT/REG186/1 
 Page 3 
 
 
 3. If after the date of application of this Ag reement, 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, such reduced duties shall replace the basic duties referred to in paragraph 2 of 
this Article as from that date when such reductions are applied. 
4. The reduced duties, calculated in accordance w ith paragraph 2 of this Article, shall be 
rounded off to the second decimal place.  
5. The Contracting Parties shall communicate to  each other their respective basic duties. 
Article 4 
 
Customs Duties On Import And Charges Having Equivalent Effect  
And Import Duties Of A Fiscal Nature  
 1. From the date of entry into force of this  Agreement no new customs duties on imports or 
charges having equivalent effect and other import duties of a fiscal nature shall be introduced, nor 
shall those already applied be increased in  trade between the Contracting Parties. 
2. Customs duties on imports, applied in the Republic  of Bulgaria on products, originating in the 
Republic of Moldova, specified in Annex II, sh all be progressively redu ced and abolished in 
accordance with the timetable, provided in this Annex. 
3. Customs duties on imports, applied in the Repub lic of Moldova on products, originating in 
the Republic of Bulgaria, specified in Annex III, shall be progressively re duced and abolished in 
accordance with the timetable, provided in this Annex. 
4. Customs duties on imports, applicable in the Republ ic of Bulgaria to products originating in 
Republic of Moldova, which are not listed in Annex II, shall be abolished on the date of entry into 
force of this Agreement. 
5. Customs duties on imports, applicable in Republic  of Moldova to products originating in the 
Republic of Bulgaria, which are not listed in Annex III, shall be abolished on the date of entry into 
force of this Agreement. 
 
Article 5 
 
Customs Duties On Export And Charges Having Equivalent Effect
 
 
1. No new custom duties on exports, charges havi ng equivalent effect to customs duties, and 
other export duties of a fiscal nature shall be intro duced in trade between the Contracting Parties, as 
from the date of entry into force of this Agreement. 
2. The Contracting Parties shall abolish all customs duties on exports or charges having 
equivalent effect to custom duties, and other export  duties of a fiscal nature on the date of entry into 
force of this Agreement. 
  WT/REG186/1 
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 Article 6 
 
Quantitative Restrictions On Imports And Measures Having Equivalent Effect
 
  
1. No new quantitative restrictions on imports or measures having equivalent effect shall be 
introduced in trade between the Contracting Parties as from the date of entr y 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. 
Article 7 
 
Quantitative Restrictions On Exports And Measures Having Equivalent Effect
 
 1. No new quantitative restrictions on exports or measures having equivalent effect shall be 
introduced in trade between the Contracting Parties as from the date of entr y into force of this 
Agreement. 
2. All quantitative restrictions on exports and me asures having equivalent effect shall be 
abolished on the date of entry into force of this Agreement. 
Article 8 
 
Elimination Of Technical Barriers To Trade
 
 1. The rights and obligations of the Contracting Parties relating to standards or technical 
regulations and related measures shall be gove rned in accordance with the WTO Agreement on 
Technical Barriers to Trade. 
2. The Contracting Parties shall co-operate a nd exchange information in the field of 
standardization, metrology, conformity assessment and accreditation with the aim of reducing and/or 
eliminating technical barriers to trade. 
3. Each Contracting Party, upon a request of th e other Contracting Party, shall provide 
information on particular individual cases of standards, technical norms or related measures. 
4. The Contracting Parties shall aim to reduce t echnical barriers to trade. To this end the 
Contracting Parties shall further discuss the possi bility to conclude Agreements for the mutual 
recognition in the field of conformity assessment, for the products subject to mutual trade between the 
Contracting Parties. 
 
CHAPTER II: AGRICULTURAL PRODUCTS 
 
Article 9 
 
Scope
 
 1. The provisions of this Chapter shall apply to agricultural products originating in the 
Contracting Parties.  WT/REG186/1 
 Page 5 
 
 
 2. The term "agricultural products " means for the purpose of this Agreement the products falling 
within Chapters 1 to 24 of the Harmonized Co mmodity Description and Coding System and the 
products listed in Annex  I to this Agreement. 
 
Article 10 
 
Exchange Of Concessions  
 1. The Contracting Parties shall grant each other th e concessions specified in Protocol A to the 
Agreement, in accordance with the provisions of th is Chapter and those laid  down in that Protocol. 
2. Taking into account: 
 - the role of agriculture in their economies, 
  - the development of trade in agricultura l products between the Contracting Parties, 
 
 - the particular sensitivity of the agricultural products, 
  - the rules of their agricultural policies,   - the results of the multilateral trade negotiations under WTO,  
the Contracting Parties shall examine the possib ilities of granting each other further concessions. 
 
Article 11 
 
Agricultural Policy
 
 
1. Without prejudice to the provisions under Article 10 of this Agreement, the provisions of the 
Chapter II of this Agreement shall not restrict in  any way the pursuance of the respective agricultural 
policies of the Contracting Parties or the taking any measures under such policies, including the implementation of the provisions of  the WTO Agreement on Agriculture. 
2. The Contracting Parties shall notify to the Joint Committee changes in their respective 
agricultural policies pursued or measures which may affect the conditions of trade in agricultural 
products between them. On the request  of either Contracting Party, pr ompt consultations shall be held 
within the Joint Committee, to examine the situation. 
Article 12 
 
Specific Safeguards
 
  Notwithstanding other provisions of this Agre ement, in particular Article 26 of this 
Agreement, given the particular sensitivity of th e agricultural products, if imports of products 
originating in one of the Contracting Parties, wh ich are subject of concessions, granted under this 
Agreement, cause serious disturbances to the market of the other Contracting Party, the Contracting 
Party concerned shall enter into prompt consultations  to find an appropriate solution. Pending such 
solution, the Contracting Party concerned may take appropriate measures it deems necessary.  
 
 
 WT/REG186/1 
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 Article 13 
 
Sanitary And Phytosanitary Measures
 
 1. The Contracting Parties shall apply their nationa l regulations in veterinary, phytosanitary and 
sanitary matters, in particular in the exchange of information on infectious diseases of domestic 
animals, quarantine diseases, plant pests and weed, in a way that complies to the WTO Agreement on 
the Application of Sanitary and Phytosanitary Measures. 
2. The Contracting Parties shall apply their regula tions in veterinary, phytosanitary and sanitary 
matters in a non-discriminatory way and shall not in troduce new measures that may have the effect of 
unduly obstructing trade. 
3. The Contracting Parties undertake the obligations to exchange information on the level of the 
sanitary and phytosanitary protection of  animals, plants and products.  
4. The sanitary and phytosanitary measures and f unctioning of veterinary services shall comply 
with the Code of the International Epizootic Office and other international conventions in this area to 
which the Contracting Parties are part of.  
 
CHAPTER III: GENERAL PROVISIONS 
 
Article 14 
 
Internal Taxation
 
 1. The Contracting Parties shall refrain from any meas ure or practice of an internal fiscal nature 
establishing, whether directly or indirectly, discr imination between the products originating in the 
Contracting Parties. 
2. Products exported to the territory of one of  the Contracting Party may not benefit from 
repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them. 
Article 15 
 
Rules Of Origin And Co-Operation In Customs Administration
 
 
1. The Contracting Parties agree to apply the harmoni zed European preferential rules of origin in 
the mutual trade including all existing and further am endments thereto. In case the European rules of 
origin are amended, the Joint Committee sha ll make a decision on amending rules of origin. 
2. Protocol B to this Agreement (hereinafter refe rred to as “Protocol B”) lays down the rules of 
origin and related methods of administrative co-operation. 
3. The Contracting 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 B and Articles 3 to 7, 10, 26, 27 and 28 of this Agreement are effectively and harmoniously 
applied, and to reduce, as far as po ssible, the formalities imposed on trade, and to achieve mutually 
satisfactory solutions to any difficulties arising from the operation of those provisions. 
  WT/REG186/1 
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 Article 16 
 
General Exceptions  
 1. The provisions of this Agreement shall not preven t from applying interdictions or restrictions 
on import, export, or goods in transit justified on grounds of public morality, public policy or public 
security; the protection of health and human life, animals or plants as well as environment protection; protection of national treasures possessing artistic, histor ical or archaeological value; the protection of 
intellectual property; regulations relating to gold or silver, or the conservation of exhaustible natural 
resources, if such measures are effectively appl ied in relation with do mestic consumption or 
production restrictions. 
2. Such prohibitions or restrictions shall not , however, constitute a means of arbitrary 
discrimination or disguised restriction on trade between the Contracting Parties. 
Article 17 
 
Security Exceptions
 
  Nothing in this Agreement shall prevent a Contracting Party from taking any appropriate 
measures which it considers necessary:  
(a) to prevent the disclosure of information c ontrary 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, ammun ition and implements of war, provided 
that such measures do not impair the c onditions 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 constituting the 
threat of war. 
Article 18 
 
State Monopoly
 
 1. The Contracting Parties shall adjust progressively any State monopoly of a commercial 
character so as to ensure that no discrimina tion regarding the conditio ns under which goods are 
procured and marketed, exists between natural an d legal persons of the Contracting Parties. The 
Contracting Parties shall inform each other about the measures adopted to implement this objective. 
2. The provisions of this Article shall apply to any body through which the competent 
authorities of the Contracting Parties, in law or in  fact, either directly or indirectly supervise, 
determine or appreciably influence imports or exports between the Contracting Parties. These 
provisions shall likewise apply to monopolies delegated by the State to other bodies. WT/REG186/1 
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 Article 19 
 
Payments
 
 1. Payments in freely convertible currencies rela ting to trade in goods between the Contracting 
Parties and the transfer of such payments to the territory of the Contracting Party where the creditor 
resides shall be free from any restrictions. 
2. The Contracting 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 person 
residing in one of the Contracting Parties participates.  
3. Notwithstanding the provisions of paragraph 2,  any measure regarding current payments 
related to flow of goods shall conform to the conditi ons stipulated in Article VIII of the Articles of the 
International Monetary Fund (IMF). 
Article 20 
 
Rules Of Competition Concerning Undertakings
 
 1. The following are incompatible with the proper functioning of this Agreement insofar as they 
can affect trade between the Contracting Parties: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings whic h have as their objective 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 
Contracting Parties, as a whole or in substantial part thereof.  
2. The provisions of paragraph 1 of this Article shall apply to the activities of all undertakings 
including public undertakings and undertakings to which the Contracting Parties grant special or 
exclusive rights. Undertakings entrusted with the op eration of services of general economic interest or 
having the character of a revenue-producing monopoly, shall be subject to provisions of paragraph 1 
of this Article insofar as the application of th ese provisions does not obstruct the performance, in law 
or in fact, of the particular public tasks assigned to them. 
3. With regard to agricultural products the provision s of paragraph 1 a. of this Article shall not 
apply to such agreements, decisions and practices wh ich form an integral part of a national market 
organisation. 
4. If one Contracting Party considers that a certain  practice is incompatible with the provisions 
of paragraph 1, and if such a practice causes or th reatens to cause serious prejudice to the interests of 
this Contracting Party or material injury to its domestic industry, it may ta ke appropriate measures, 
under the conditions and in accordance with the procedur e laid down in Article 23 of this Agreement. 
Article 21 
 
State Aid
 
 1. Any aid granted by one Contracting Party or th rough State resources in any form whatsoever, 
distorting or threatening to distort competition by favoring certain undertakings  or the production of 
certain goods shall be incompatible with the proper functioning of this Agreement, insofar as it may  WT/REG186/1 
 Page 9 
 
 
 affect trade between the Contracting Parties, excep t for agricultural products for which state aid may 
be granted in compliance with the releva nt provisions of the WTO Agreements. 
2. The Joint Committee, within tree years since th e date of the entry into force of this 
Agreement, shall set out the basic cr iteria to verify any practices cont rary to this Article, as well as 
rules for their implementation.  
3. The Contracting Parties shall ensure transparency of state aid measures, inter alia  also 
through annual reporting to the Joint Committee on the whole volume of the state aid and its distribution and will provide, on the other Contracting Party’s request, information on the schemes in specific cases. 
4. If a Contracting Party considers that a particular practice: 
− is incompatible with the terms of paragraph 1 of this Article, and is not adequately dealt 
with under the implementing rules referred to  in paragraph 2 of this Article, or 
 
− in the absence of rules, referred to in paragr aph 2 of this Article, causes or threatens to 
cause serious prejudice to the interest of that Contracting 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 23 of this Agreement.  5. Such appropriate measures may only be taken in conformity with the procedures and under 
the conditions laid down by the GATT 1994 and the WTO, and any other relevant instruments negotiated under their auspices, which are applicab le between the Contracting Parties concerned. 
Article 22 
 
Public Procurement
 
 1. The Contracting Parties consider the liberalization of their respective public procurement 
markets as an objective of this Agreement. 
2. The Contracting Parties shall progressively deve lop regulations on public procurement for the 
purpose of ensuring mutual access to bidding b ased contracting on their respective public 
procurement markets. 
Article 23 
 
Procedure For The Application Of Safeguard Measures
 
 1. Before initiating the procedure for the appli cation of safeguard measures set out in the 
following paragraphs of the present Article, the C ontracting Parties shall endeavor to solve any 
differences between them through direct consultations. 
2. Without prejudice to paragraph 6 of the presen t Article, each Contracting Party, which 
considers resorting to safeguard measures, shall pr omptly notify the other Contracting Party and shall 
supply all relevant information.  Consultations between the Contracting Parties shall take place 
without delay with a view to finding a solution. WT/REG186/1 
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 3. (a) As regards Articles 20 and 21, the Contr acting Parties shall give the Joint Committee 
all required assistance required in order to  examine the case. If the Contracting Party 
fails to stop 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 30 
days following the referral for such cons ultations, the Contracting Party concerned 
may adopt the appropriate measures to d eal with the difficulties resulting from the 
disputed practice. 
(b) As regards Articles 25, 26 and 28, the Jo int Committee shall ex amine the case or 
situation and may take any decision needed to put an end to the difficulties notified by the Contracting Party concerned. In absence of such a decision during 30 days of 
the matter being referred to the Joint Committee, the Contracting Party concerned 
may adopt the necessary measures in order to remedy the situation. 
(c) As regards Article 29 the Contracting Pa rty concerned shall supply to the Joint 
Committee with all relevant information re quired for a thorough examination of the 
situation with a view to seeking a mutu ally acceptable solution. If the Joint 
Committee fails to reach an agreement or if  a period of three months has elapsed from 
the date of notification, the Contracti ng Party concerned may take appropriate 
measures. 
4. The safeguard measures taken sh all be immediately notified to the other Contracting Party. 
They will be restricted with regard to their extent and to their 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 or the difficulty in question. Priority shall be given to such measures as will 
least disturb the functioning of the Agreement. 
5. The safeguard measures taken shall be the subject  of regular consultations within the Joint 
Committee with a view of their re-applying, substitution or abolition as soon as possible.  
6. When exceptional circumstances requiring immediate action make prior examination 
impossible, the Contracting Party concerned ma y, in the cases of Articles 25, 26 and 28, apply 
forthwith the precautionary and provisional measur es strictly necessary to remedy the respective 
situation.  The measures shall be notified without  delay and consultations between the Contracting 
Parties shall take place as soon as possi ble within the Joint Committee. 
Article 24 
 
Intellectual Property Protection
 
 1. The Contracting Parties shall grant and ensure  adequate, effective and non-discriminatory 
protection of intellectual property rights, including measures for the enforcement of such rights against infringement, counterfeiting and piracy. The Contacting Parties agree to comply with the 
substantive standards of the multilate ral agreements listed in Annex IV. 
2. For the purposes of this Agreement, the protection of intellectual property rights includes 
mainly the protection of copyright, computer progr ams, databases and related rights, trademarks, 
geographic indications, industrial pr ojects, patents, integrated circuits, undisclosed information, as 
well as know-how.  
3. The Contracting Parties shall co-operate in inte llectual property rights protection matters and, 
at the request of any Contracting Party, consultations on expert level regarding these problems shall 
be held, mainly in areas dealing with the existing and future international treaties on harmonization,  WT/REG186/1 
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 administration and enforcement of intellectual property rights and international specialized 
organizations such as the World Trade Organizati on and World Organization on Intellectual Property, 
as well as the relationships of the Contracting Pa rties with any other third country on the of 
intellectual property matter. 
Article 25 
 
Dumping  
  If one of the Contracting Parties finds that dumping, in the meaning of Article VI of GATT 
1994, is taking place in the trade relations governed by this Agreement, the concerned Contracting 
Party may take appropriate measures against this practice under the conditions and in accordance with 
the procedure laid down in Article 23 of this Agreement, as well as in conformity with Article VI of 
GATT 1994.  
Article 26 
 
General Safeguards
 
  Where any product is being imported in such  increased quantities and under conditions as to 
cause, or threatens to cause:  
(a) serious injuries to domestic producers of like or directly competitive products in the 
territory of the importing Contracting Party, or 
(b) serious disturbances in any related sector of the economy or difficulties which could 
bring serious deterioration in the economic situation of a certain region, 
the Contracting Party concerned may take a ppropriate measures under the conditions and in 
accordance with the procedures laid down in Article 23 of this Agreement. 
 
Article 27 
 
Structural Adjustment
 
 
1. Exceptional measures of limited duration, which de rogate from the provisions of Article 4 of 
this Agreement, may be taken in th e form of increased customs duties. 
2. These measures may only concern infant i ndustries, or certain sectors undergoing 
restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. 
3. Customs duties on imports applied by one of th e Contracting Parties for goods originating in 
other Contracting Part y shall not exceed 25% ad valorem  and shall contain a preference element in 
terms of the rate of customs duty for goods origina ting in other Contracting Party. The total value of 
imported goods subject to such measures cannot exceed 15% of the total amount of imports of 
industrial goods from the other Contracting Party during the last year for which statistic data is valid. 
4. These measures shall apply for a period that will not exceed three years, except otherwise 
decided by the Joint Committee. They shall seize to apply by the end of the transitional period at the 
latest. WT/REG186/1 
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 5. No measure can be applied to goods if more than two years passed since the removal of all 
customs duties and quantitative restrictions or me asures having equivalent effect for such goods. 
6. The interested Contracting Party shall inform the other Contracting Party of any exceptional 
measure it intends to take and, at the request of the other Contracting Party, consultations shall be held 
within the Joint Committee regarding such measure s and sectors to which they apply, even before 
they are put into force. When ta king such measures, the Contracting Party concerned shall provide the 
Joint Committee a schedule for the elimination of cu stoms duties introduced under this Article. This 
schedule shall provide for a phasing out of these duti es starting at the latest one year after their 
introduction, at equal annual rates. 
Article 28 
 
Re-Export And Serious Shortage
 
  Where the compliance with the provis ions of this Agreement leads to: 
 
(a) re-export towards a third country, agains t which the exporting Contracting Party 
maintains for that product quantitative export restrictions, export duties, or measures 
or charges having equivalent effect; or 
(b) a serious shortage, or a threat thereof, of a product essential to the exporting 
Contracting Party,  
and where the situation referred to above gives rise or  is likely to give rise to major difficulties for the 
exporting Contracting Party, that Contracting Party may take appropriate measures under the  
conditions and in accordance with the procedure laid  down in Article 23 of this Agreement. The 
measures shall be non-discriminatory and be elim inated when conditions no longer justify their 
maintenance.   
Article 29 
 
Fulfillment Of Obligations
 
 1. The Contracting Parties shall take all necessar y measures to ensure the fulfillment of their 
obligations under the provisions of this Agreement. 
2. If either Contracting Party considers that the other Contracting Party has failed to fulfill an 
obligation under this Agreement, the Contracting Pa rty concerned may take th e appropriate measures 
under the conditions and in accordance with the procedur e laid down in Article 23 of this Agreement.  
Article 30 
 
Balance-Of- Payments Difficulties
 
 1. Where a Contracting Party is in serious bala nce-of-payments difficulti es, or under imminent 
threat thereof, the Contracting Party concer ned may adopt, in accordance with the conditions 
established by GATT 1994 and the provisions of this Agreement, trade restrictive measures, which 
shall be of limited duration a nd may not go beyond what is necessary to remedy the balance-of-
payments situation.  The measures shall be progr essively attenuated, as the balance-of-payments 
conditions improve, and they  shall be eliminated when conditions no longer justify their maintenance. 
The Contracting Party in concerned shall inform the other Contracting Party and the Joint Committee 
forthwith their introduction and, whenever prac ticable, of a time schedule for their removal.   WT/REG186/1 
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 2. The Contracting Parties shall endeavor to a void the imposition of restrictive measures base on 
balance-of-payments difficulties. 
Article 31 
 
The Joint Committee  
 
1. The Contracting Parties agree to establis h a Joint Committee composed of their 
representatives. 
2. The implementation of this Agreement shall be  supervised and administrated by the Joint 
Committee. 
3. For the purpose of the proper implementation of this Agreement, the Contracting Parties shall 
exchange information and, at the request of any C ontracting Party, shall hold consultations within the 
Joint Committee. The Joint Committe e shall keep under review the possibility of further removal of 
the obstacles to trade between the Contracting Parties.   
4. The Joint Committee may take deci sions in the cases provide for in this Agreement. On other 
matters the Joint Committee may take recommendations. 
Article 32 
 
Procedures Of The Joint Committee  
 1. For the proper implementation of this Agreemen t, the Joint Committee shall meet whenever 
necessary but at least once a year. Either Contr acting Party may request a meeting to be held. 
2. If the representative of a Contracting Party in  the Joint Committee has accepted a decision, 
subject to the fulfilment of internal legal requirement s, 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. 
3. For the purpose of this Agreement, the Joint Co mmittee shall adopt its rules of procedure hich 
shall inter alia  contain provisions for conveying meeting and for the designation of the Chairperson 
and his/her term of office. 
4. The Joint Committee may decide  to set up such sub-committe es and working parties as it 
considers necessary to assist it in accomplishing its tasks. 
Article 33 
 
Customs Unions, Free Trade Areas And Frontier Trade
 
 1. This Agreement shall not prevent the mainte nance or establishment of customs unions, free-
trade zones, economic unions or arrangements for frontier trade to the extent that these do not 
negatively affect the trade regime between the Cont racting Parties and in particular the provisions 
concerning rules of origin provided for by this Agreement.  
2. Upon request, the Contracting Parties shall inform  each other of any agreement, establishing 
customs union or free trade areas concluded. 
 WT/REG186/1 
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 Article 34 
 
Evolutionary Clause
 
 1. Where either Contracting Party considers that it would be useful in the interest of the 
economies of the Contracting Parties to develop the relations established by this Agreement by 
extending them to fields not covered thereby, it shall submit a reasoned request to the other 
Contracting Party. The Contracting Parties may inst ruct the Joint Committee to  examine this request 
and, where appropriate, to make recommendations to  them, particularly with a view to opening 
negotiations. 
2. Agreements resulting from the pro cedure referred to in paragraph 1 of this Article will be 
subject to ratification of approval by the Contrac ting Parties to this Agreement in accordance with 
their internal legal procedures. 
Article 35 
 
Annexes And Protocols
 
  Annexes and Protocols of this Agreement sha ll form an integral part thereof. The Joint 
Committee may decide to amend Annexes and Protocols.    
Article 36 
 
Amendments
 
  Amendments to this Agreement, including Anne xes and Protocol, may be proposed by either 
Contracting Party and shall enter into force on the date of receipt of the last notification, through 
diplomatic channels, confirming that all internal le gal procedures required by either Contracting Party 
for their entry into force have been fulfilled.  
Article 37 
 
Entry Into Force
 
 
1. This Agreement is subject to ratification. This  Agreement shall enter into force on the first 
day of the second month following the date when th e Contracting Parties have notified each other 
through diplomatic channels that th eir respective internal requirements for the entry into force of this 
Agreement have been fulfilled. 
2. This Agreement is concluded for an indefinite period of time. 
3. Each Contracting Party may denounce it through di plomatic channels by a written notification 
to the other Contracting Party. In such case the Agr eement shall be terminated on the first day of the 
seventh month after the date on which the othe r Contracting Party received the notification. 
4. The Contracting Parties agree, that in case of accession of one of the Contracting Parties to 
the European Union, the Agreement will be term inated without any compensations for the other 
Contracting Party, on the day before the date of the accession to the EU. In that case, the Contracting 
Party acceding to the EU shall inform the othe r Contracting Party of such accession within a 
reasonable period of time. 
  WT/REG186/1 
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  DONE in Sofia, on 20 of May  2004 in two origin al copies, each in Bulgarian, Moldavian and 
English languages, each being equally authentic. In case of different interpretation of provisions of 
this Agreement, the text of refere nce shall be in the English language. 
  
 
FOR THE REPUBLIC OF BULGARIA FOR THE REPUBLIC OF MOLDOVA       
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