. /.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG80/4/Add.1
7 May 2001
(01-2311)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN POLAND AND LATVIA
Questions and Replies
Addendum
This document reproduces additional questions addressed to the Parties and the responses
submitted.  The questions and replies set out below are organized in accordance with documentWT/REG80/3.
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I. BACKGROUND INFORMATION ON THE AGREEEMENT
4. Trade Data
It is unclear whether and, if so, when, all agricultural trade will be subject to zero
duties.  The document WT/REG80/4 contains  an Annex setting out the proportion of
agricultural imports (1) from Latvia into Pola nd and (2) from Poland into Latvia that were
subject to zero duty in 1999.  It states that only 24.21 per cent of agricultural imports from
Latvia received zero duty treatment, while only 16.9 per cent of agricultural imports from
Poland received zero duty treatment.  Can the Parties clarify whether, if one assumed trade at
1999 levels,  these proportions would remain indefinitely under the agreement, or would they
decline by the end of some transition period?
We thank the Parties for the trade statisti cs provided in WT/REG80/4.  We would be
grateful if the Parties could elaborate on what percentage of trade in agriculture will be covered
by the end of the transition period in 2002.
The Free Trade Agreement (FTA) between Poland and Latvia does not determine a timetable
for full elimination of tariff duties of agricultural products.  It is difficult to make an estimation
concerning trade in agricultural products in 2002 because of change in trade flows as a result of FTA
operation.
The Agreement does not exclude further liberalization of trade in agricultural products
between the Parties by granting Parties each other further concessions.  So far no date has been set forfurther liberalization.
Please clarify the percentage of the wh ole trade coverage on tariff line basis.
Parties believe that data on a tariff-line basis is not necessary to determine compatibility of
the Agreement with GATT Article XXIV.WT/REG80/4/Add.1
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II. TRADE PROVISIONS
1. Import Restrictions
According to the reply given in WT/REG80/4 on import restrictions, the Parties have
included in their trade coverage the WTO conces sion rates into the FTA tariff rates;  it is
further explained that such treatment does no t contradict with the GATT Article XXIV.  In
addition, with regard to the trade statistics s ubmitted in Annex of WT/REG80/4, it is indicated
that the FTA trade coverage is 100 per cent.
GATT Article XXIV: 8 states that Members are to eliminate the duties and other
restrictive regulations of commerce on substantially all the trade basis.  When speaking of trade
coverage, the duties and other restrictive regulations of commerce which have been eliminated
from the whole trade volume and from the share of goods raises a question.  We thus consider
that it is inappropriate to include those item s if duties and other restrictive regulations of
commerce are not abolished.  We would apprecia te if you could introduce your view on this
issue.
As from 1999 the whole trade between Parties in industrial products is subject to preferential
treatment.  As of 1 January 2002 the tariff treatment will be 0 per cent for all industrial products.
Exceptions listed in Annex III reflect monitoring the trade through automatic import licensing.  AnnexIII does not impinge upon the FTA tariff treatment.
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