WORLD TRADE  
ORGANIZATION  WT/REG89/R/B/3 
G/L/775 26 April 2006 
 
(06-1957) 
Committee on Regional Trade Agreements  
  
 
CZECH REPUBLIC-SLOVAK REPUBLIC CUSTOMS UNION 
 
Biennial Report on the Operation of the Agreement
 
  
 The following communication, dated 11 April 2006,  is being circulated at the request of the 
Delegation of the Czech Republic.  
_______________ 
  
 The Czech Republic and the Slovak Republic submit this third biennial report on the 
Implementation of the Agreement establishing th e Customs Union between the Czech Republic and 
the Slovak Republic (the Agreement). The report is organized in accordance to the Standard Format 
for Information on Regional Trade Agreement (WT/RE G/W/6). It complements the previous biennial 
reports on the implementation of the Agreement,  as distributed on 14 March 2000 and 14 May 2002 
(WT/REG89/R/B/1 and WT/REG89/R/B/2, respectively). 
 Main developments
 
  During the period under review, the Parties to th e Agreement agreed to terminate all existing 
safeguard measures and not to introduce any new on es. Furthermore, they negotiated an agreement 
amending Article 38 of the Agreement in order to  allow a termination of the Agreement as of 
accession of any Party to the European Union. Based on this provision, the Agreement ceased to exist 
as of 1 May 2004 when both Parties became the Member States of the EU.   I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership and Dates of Signatu re, Ratification and Entry into Force 
 
 The Agreement was signed on 29 October 1992 a nd was implemented since 1 January 1993. 
The Agreement entered into force on 3 May 1993 after ratification in both countries. As of 1 May 
2004 it was superseded by the accession of the Czech and Slovak Republic to the EU.  
  The Agreement was concluded in accordance with the provisions of Article XXIV of the 
GATT and constituted a part of a far broader spect rum of agreements and arrangements ensuring a 
smooth split of the former Czech and Slovak Federal Republic. 
 
 The Agreement was notified to the GATT
1 and examined in 1994 when the respective 
Working Party concluded that the Agreement was co nsistent with the provisions of Article XXIV of 
the GATT2.  
                                                      
1 L/7212 and L/7212/Add.1, dated 30 April 1993 and 12 May 1993 
2 L/7501, dated 15 July 1994 WT/REG89/R/B/3 
G/L/775 Page 2 
 
 
  4. Trade data  
 
 Trade data are given in Annex 2.  
 
II. TRADE PROVISIONS 
1. Import Restrictions & 
 
2. Export Restrictions 
 
 Since the day of entry into force of the Agre ement the Parties applied zero customs duties and 
eliminated quantitative restrictions or other measures having equivalent effect in their mutual trade. 
The Agreement did not envisage any transitiona l period, which is normally necessary for the 
elimination of trade barriers, as no duties and other restrictive regulations of commerce existed 
between the Parties within the former Federation.   Moreover, the Agreement prohibited their future 
introduction with the exception of certain particular circumstances. In 2002, as a temporary emergency safeguard measures, the Slovak Republic  applied quantitative restrictions on imports 
originating in the Czech Republic: non-alcoholic beverages – 630.000 hl , sugar – 3.500 tons, rape oil 
– 3.188 tons and homogenized preparations (ca nned meat) – 1.013 tons and the Czech Republic 
restricted imports of sugar – 3.500 tons and is oglucose – 5.000 tons originating in the Slovak 
Republic. 
   At the 21
st regular session of the Council of the Customs Union held on 13 December 2002, 
the Parties agreed to terminate by 31 December  2002 all existing safeguard measures imposed in the 
mutual trade pursuant Article 22 of the Agreement.  Furthermore, the Parties have agreed not to 
introduce any new safeguard measures as of 1 January 2003. 
 
3. Rules of Origin 
 
 The rules of origin introduced in 1993, as modified in 1997, were further modified in 
December 2001 by the Agreement between the Government of the Cz ech Republic and the 
Government of the Slovak Republic regarding th e rules of origin of goods and methods of 
administrative co-operation. This Agreement ente red into force on 1 January 2002 with a view to 
changes in pan-European cumulation of origin of goods.   III. GENERAL PROVISIONS 
 At its two regular sessions in 2002, the Council of the Customs Union discussed in particular 
development of mutual trade, including issues of trade in agricultural and foodstuff products, coordination of trade policy with respect to thir d countries and coordination of accession procedures 
of the Czech and Slovak Republic to the EU in  the framework of accession negotiations of both 
countries to the European Union. 
 
 The Agreement was also among legal instruments,  which the Parties agreed to abolish by the 
date of their accession to the EU. To that purpose, the Prime Ministers of Czech Republic and Slovak 
Republic signed on 30 November 2002 the Agreem ent between the Czech Republic and Slovak 
Republic regarding the amendment of Article 38 of  the Agreement, which entered into force on 
29 January 2004. Based on provision of the modified Article 38, the Agreement ceased to exist as of 
1 May 2004.    WT/REG89/R/B/3 
 G/L/775 
 Page 3 
 
 
   More than eleven years of a successful  functioning of the Agreement witnessed above-
standard relationship between both Pa rties. It helped to stabilize their economies in the difficult period 
of transformation from centrally planned economies to the marked-oriented ones, consolidation of 
results of this transformation and was a useful in strument in the network of trade relations among 
European countries, which resulted into the conclu sion of accession agreements of the Parties to the 
EU.  WT/REG89/R/B/3 
G/L/775 Page 4 
 
 
  ANNEX 1  
 
Customs Union between the Czech Re public and the Slovak Republic:
 
Agreements Concluded since the Previous Review  
 
 
Description 
  
Remarks 
  
Entry into force 
Agreement between the Ministry of Industry and Trade of the Czech 
Republic and the Ministry of 
Construction and Regional Development of the Slovak Republic 
on the manners and conditions for 
utilisation of documents relating to conformity assessment of 
construction products and recognition 
of test results of construction products covered by the trade between the 
business entities of the Czech 
Republic and the Slovak Republic Conformity assessment of 
construction products Signed on 6.9.2002 
In force since 1.12.2002 
Agreement between the Government 
of the Czech Republic and the 
Government of the Slovak Republic on mutual recognition of results of 
laboratory test for agricultural and 
foodstuff products Recognition of results of laboratory 
test for agricultural and foodstuff 
products Signed on 13.12.2002 
In force since 1.1.2003 
Agreement between the Czech Republic and Slovak Republic 
regarding the amendment of Article 38 of the Agreement establishing the 
Customs Union between the Czech 
Republic and the Slovak Republic Amendment of Article 38 deals with 
the notice period of the Agreement 
establishing the Customs Union Signed on 30.11.2002 
In force since 29.1.2003 
Agreement on cooperation between 
the Ministry of Industry and Trade of 
the Czech Republic and the Ministry 
of Economy of the Slovak Republic Economic co-operation between the 
Czech Republic and the Slovak 
Republic after the accession of both 
countries to the EU Signed on 16.4.2004 
In force since 1.5.2004 
Political memorandum of governments of the Czech and Slovak 
Republics in relation to both countries 
acceding to the European Union Declaration of co-operation of both 
countries after acceding to the EU Signed on 20.5.2004 
In force since 20.5.2004 
 
  
  WT/REG89/R/B/3 
 G/L/775 
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  ANNEX 2 
 
Trade Data  
 
Trade of Czech Republic and Slovak Republic, 2001 - 2004  
(Million of US dollars)  
 
Customs Union Trade Imports from third countries 
Year Czech Rep. Imports 
from Slovak Rep. Slovak Rep. Imports 
from Czech Rep. Czech Rep. (without 
Slovak Rep.) Slovak Rep.(without 
Czech Rep.) 
2001 1 960,3 2 225,8 34 476,3 12 536,7 
2002 2 117,7 2 518,3 38 618,3 14 110,4 
2003 2 590,8 3 235,6 48 665,2 19 369,9 
1-4/2004 949,6 1 203,5 19 416,3 7 422,3 
 
 
Share of Bilateral Trade in Total Foreign Trade  
 
Year Czech Republic Slovak Republic 
2001 6,6% 15,8% 
2002 6,4% 15,2% 
2003 6,5% 13,6% 
1-4/2004 6,8% 12,9% 
 
 
Imports of the Slovak Republic from the Czech Republic by HS Chapters  
(Thousands of US dollars) 
 
HS chapter 2001 2002 2003 1-4/2004 
01 10 062 12 561 12 102 6 308 
02 17 789 26 580 24 781 7 248 
03 2 353 3 431 4 274 909 
04 20 989 23 766 28 402 10 896 
05 211 357 211  
06 1 163 1 414 1 940  
07 2 684 2 432 2 956 1 322 
08 2 499 1 648 1 817 562 
09 5 024 4 242 4 509 1 185 
10 15 722 2 475 10 157 2 871 
11 8 397 5 708 6 326 2 027 
12 6 957 8 250 7 940 3 421 
13 456 441 654 324 
14 16 19 17 8 
15 29 509 19 486 21 562 8 966 
16 11 714 11 423 11 801 4 317 WT/REG89/R/B/3 
G/L/775 Page 6 
 
 
  HS chapter 2001 2002 2003 1-4/2004 
17 7 318 9 344 11 397 6 628 
18 17 644 21 952 22 541 8 121 
19 25 903 28 739 33 821 12 096 
20 10 512 11 482 12 425 4 812 
21 19 035 27 029 30 119 11 555 
22 33 466 42 589 50 500 14 958 
23 9 077 10 644 11 570 3 549 
24 51 347 58 664 67 159 24 863 
25 15 290 18 537 24 700 8 827 
26 952 1 360 2 041 468 
27 163 971 205 985 322 217 130 982 
28 22 055 18 771 21 856 9 159 
29 59 162 46 761 40 542 19 042 
30 45 414 52 498 74 066 26 856 
31 1 509 1 258 2 222 1 079 
32 15 781 16 999 19 666 6 272 
33 10 414 13 068 14 301 5 100 
34 16 119 20 585 25 731 10 827 
35 1 053 1 128 1 732 601 
36 1 564 1 481 2 174 813 
37 703 749 739 221 
38 14 912 19 391 25 624 8 291 
39 88 611 107 264 157 259 59 919 
40 33 921 33 803 61 044 21 610 
41 5 961 5 624 9 033 3 820 
42 3 012 3 484 2 591 604 
43 961 970 1 002 186 
44 30 080 39 201 44 375 16 386 
45 62 71 124 22 
46 116 118 103 41 
47 13 294 16 645 19 912 9 368 
48 66 303 78 301 98 493 36 347 
49 27 381 30 539 37 148 13 045 
50 3 3 10 2 
51 2 474 2 150 2 920 1 597 
52 18 947 20 927 18 386 6 771 
53 1 154 1 242 1 978 785 
54 4 028 3 742 4 479 2 165 
55 11 587 11 404 14 214 5 114 
56 5 947 5 924 6 331 1 779 
57 754 821 2 448 4 858 
58 4 052 4 372 5 806 2 226 
59 17 773 19 393 22 522 10 045 
60 4 096 4 192 4 524 1 335 
61 13 657 13 497 13 136 5 244 
62 10 766 10 972 12 507 5 260 
63 8 820 14 017 17 604 4 129 
64 8 821 6 473 11 301 4 433  WT/REG89/R/B/3 
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  HS chapter 2001 2002 2003 1-4/2004 
65 936 1 116 1 162 289 
66 282 342 559 362 
67 34 62 92 50 
68 23 927 25 110 30 164 8 724 
69 23 136 28 644 34 440 10 950 
70 31 342 37 419 43 637 13 427 
71 5 926 6 044 6 183 3 592 
72 122 769 127 863 172 214 72 793 
73 124 863 129 394 162 999 63 575 
74 12 813 10 877 12 933 6 161 
75 130 72 202 12 
76 21 146 27 246 37 282 13 371 
78 705 545 588 245 
79 836 950 1 177 439 
80 176 209 436 136 
81 381 484 842 456 
82 13 545 16 353 20 609 8 726 
83 12 023 20 714 29 665 9 823 
84 197 645 239 132 319 038 108 443 
85 129 176 156 730 188 828 60 678 
86 38 010 25 855 35 956 13 377 
87 322 943 375 507 484 518 180 477 
88 1 564 2 442 3 346 184 
89 60 74 152 22 
90 21 098 29 280 34 125 10 475 
91 352 264 255 89 
92 231 395 542 76 
93 3 528 2 963 3 471 639 
94 43 075 50 998 71 160 28 070 
95 4 952 5 279 6 129 2 146 
96 6 864 7 376 7 033 2 258 
97 44 211 76 23 
 
 
Imports of the Czech Republic from th e Slovak Republic by HS Chapters  
(Thousands of US dollars) 
 
HS chapter 2001 2002 2003 1-4/2004 
01 1 381 3 992 4 463 1 496 
02 7 781 7 956 7 549 4 646 
03 426 596 929 281 
04 22 073 35 470 52 152 17 665 
05 779 693 374 193 
06 1 658 1 632 2 024 1 887 
07 12 907 12 833 13 672 1 436 
08 4 743 3 775 6 723 378 
09 154 421 433 137 
10 2 631 9 801 9 849 6 639 WT/REG89/R/B/3 
G/L/775 Page 8 
 
 
  HS chapter 2001 2002 2003 1-4/2004 
11 3 214 3 945 4 525 2 280 
12 5 403 7 556 7 403 1 639 
13 112 209 204 42 
14 9 18 58 4 
15 13 678 17 133 21 956 9 232 
16 148 310 519 274 
17 11 519 14 330 12 534 5 674 
18 14 237 17 169 18 628 8 052 
19 20 375 26 085 29 477 11 879 
20 3 547 4 518 7 073 2 562 
21 16 664 15 086 17 560 6 779 
22 17 049 20 501 31 564 10 229 
23 1 624 2 695 2 590 522 
24 12 090 12 149 22 963 11 109 
25 44 967 57 647 66 825 17 736 
26 3 399 3 798 3 457 1 516 
27 367 016 355 473 458 364 121 270 
28 16 352 18 736 23 066 9 371 
29 34 247 27 312 22 377 8 585 
30 56 958 65 769 77 555 29 743 
31 23 238 20 293 24 241 8 943 
32 3 472 4 883 5 271 1 537 
33 6 119 7 573 8 879 3 078 
34 19 417 22 181 22 541 4 816 
35 2 163 2 040 2 330 957 
36 1 314 1 681 1 888 859 
37 270 409 415 131 
38 9 919 12 002 15 072 5 691 
39 106 895 113 086 133 880 50 108 
40 47 522 58 351 72 184 24 200 
41 5 384 4 092 4 316 2 426 
42 1 543 1 527 2 000 529 
43 290 233 443 76 
44 39 044 47 152 49 429 21 344 
45 7 87 101 4 
46 32 55 121 43 
47 3 510 4 346 5 197 1 568 
48 69 426 78 704 86 971 31 394 
49 22 318 28 892 33 166 12 995 
50 0 0 0 13 
51 1 684 872 604 173 
52 3 286 5 019 4 745 1 636 
53 323 373 456 267 
54 44 169 43 482 52 428 20 405 
55 3 415 4 117 4 341 1 636 
56 767 684 793 366 
57 314 524 669 314 
58 207 319 540 242  WT/REG89/R/B/3 
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  HS chapter 2001 2002 2003 1-4/2004 
59 568 775 1 264 451 
60 604 1 054 1 479 703 
61 10 730 11 473 13 049 5 481 
62 25 148 34 446 40 178 13 081 
63 1 936 2 860 3 038 1 824 
64 13 421 16 340 14 102 4 548 
65 129 181 286 50 
66 117 225 248 141 
67 58 225 149 4 
68 16 632 18 402 20 158 6 228 
69 18 919 19 227 21 361 8 025 
70 20 650 26 774 27 432 11 699 
71 3 920 5 402 5 543 3 052 
72 259 036 240 336 337 195 148 901 
73 70 562 82 929 92 961 40 390 
74 12 258 12 794 9 922 4 598 
75 43 18 37 24 
76 33 365 40 420 32 462 15 572 
78 493 83 849 486 
79 476 445 768 795 
80 25 51 77 37 
81 44 52 48 8 
82 1 686 2 224 4 839 1 790 
83 7 091 6 874 8 747 3 575 
84 108 314 129 838 149 202 52 809 
85 98 897 94 896 137 312 55 593 
86 10 168 18 547 15 013 7 443 
87 93 329 87 534 126 928 50 819 
88 131 140 529 43 
89 16 30 102 13 
90 8 870 11 420 16 265 5 363 
91 294 311 265 57 
92 21 7 14 10 
93 662 1 334 4 672 650 
94 25 015 30 916 38 854 14 497 
95 2 996 4 358 4 101 1 431 
96 486 838 1 022 329 
97 75 3 320 256 49 
 
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