WORLD TRADE
ORGANIZATIONWT/REG62/1
6 August 1998
(98-3098)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN THE CZECH REPUBLIC
AND THE REPUBLIC OF ESTONIA
The following text reproduces the Free Trade Agreement.1
_______________
The Czech Republic  and the Republic of Estonia , hereinafter called the Parties,
Recalling  their intention to participate actively in the process of economic integration as an
important dimension of the stability on the European continent and expressing their preparedness to
co-operate in seeking ways and means to strengthen this process,
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 final
document 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,
Firmly  convinced that this Agreement will foster the intensification of mutually beneficial
trade relations between 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 and organizations, especially the World
Trade Organization,
Hereby agreed as follows:
                                                     
1 The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).WT/REG62/1
Page 2
Article 1
Objectives
1. The Parties shall gradually establish a free-trade area on substantially all their bilateral trade
in accordance with the provisions of this Agr eement and in conformity with Article XXIV of the
General Agreement on Tariffs and Trade 1994 and with the Understanding on the Interpretation of
Article XXIV of the General Agreement on Tariffs and Trade 1994.
2. The objectives of this Agreement are:
(a) to promote through the expansion of mutual trade the harmonious development of the
economic relations between the Parties and thus to foster the advance of economic
activity in the Parties, the improvement of living and employment conditions, and
increased productivity and financial stability,
(b) to provide fair conditions of competition for trade between the Parties,(c) 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
The provisions of this Chapter shall apply to industrial products originating in the Parties.
The term "industrial products" means for the purpos e of this Agreement the products falling within
Chapters 25 to 97 of the Harmonized Commodity Description and Coding System.
Article 3
Customs Duties on Imports and Charges having Equivalent Effect
1. No new customs duty on imports or charge having equivalent effect shall be introduced in
trade between the Parties.
2. The Parties shall abolish between them on the date of entry into force of this Agreement all
customs duties on imports and all charges having equivalent effect.
Article 4
Fiscal Duties
The provisions of Article 3 shall also apply to customs duties of a fiscal nature.WT/REG62/1
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Article 5
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.
2. The Parties shall abolish between them on the date of entry into force of this Agreement all
customs duties on exports and all charges having equivalent effect.
Article 6
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.
2. All quantitative restrictions and measures having equivalent effect on imports of products
originating in the Parties shall be abolished on the da te of entry into force of this Agreement, except
as provided for in Annex I to this Agreement.
Article 7
Quantitative Restrictions on Exports and Measures having Equivalent Effect
1. No new quantitative restriction on exports or measure having equivalent effect shall be
introduced in trade between the Parties.
2. All quantitative restrictions and measures having equivalent effect on exports of products
originating in the Parties shall be abolished on the da te of entry into force of this Agreement, except
as provided for in Annex II to this Agreement.
Article 8
Information Procedure on Draft Technical Regulations
1. The Parties shall notify each other of the draft technical regulations and draft amendments
thereto, which they intend to issue, at the earlie st practicable stage and in accordance with the
provisions as set out in Annex III to this Agreement.
2. The Joint Committee shall decide on the date for implementing the provisions in paragraph 1.WT/REG62/1
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CHAPTER II
Agricultural Products
Article 9
Scope
The provisions of this Chapter shall apply to ag ricultural products originating in the Parties.
The term "agricultural products" means for the purpose of this Agreement the products falling within
Chapters 1 to 24 of the Harmonized Comm odity Description and Coding System.
Article 10
Customs Duties on Imports and Charges having Equivalent Effect
1. No new customs duty on imports or charge having equivalent effect shall be introduced in
trade between the Parties.
2. Customs duties on imports shall be applied in accordance with the provisions of Protocol 1 to
this Agreement.
3. The Parties shall abolish between them on the date of entry into force of this Agreement all
charges having equivalent effect to customs duties on imports.
Article 11
Fiscal Duties
The provisions of Article 10 shall also apply to customs duties of a fiscal nature.
Article 12
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 1 January 1996.
2. If, after entry into force of this Agreement, any tariff reduction is applied on an erga omnes
basis, 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 communicate to each other their respective national basic rates of duties in
accordance with the provisions of paragraph 2.WT/REG62/1
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Article 13
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.
2. The Parties shall abolish between them on the date of entry into force of this Agreement all
customs duties on exports and all charges having equivalent effect.
Article 14
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.
2. All quantitative restrictions and measures having equivalent effect on imports of products
originating in the Parties shall be abolished on the date of entry into force of this Agreement.
Article 15
Concessions and Agricultural Policies
1. Without prejudice to the concessions granted under Protocol 1 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 respective provisions of the Agreement on Agriculture within the framework of the World
Trade Organization.
2. The Parties shall notify each other of changes in their respective agricultural policies pursued
or measures applied which may affect the conditions of agricultural trade between them as provided
for in this Agreement.  Prompt consultations shall be held, upon request of any Party, to examine the
situation.
3. Taking into account the Estonian customs tariff structure on the date of entry into force of this
Agreement, where no customs duties are applied for agricultural products, in the event that a new
tariff regime for the imports of agricultural products is established, the Republic of Estonia may, by
way of derogation from the provisions of Article 10 of this Agreement and pursuant to theimplementation of its agricultural policy, introduce customs duties on imports on a limited number of
agricultural products originating in the Czech Republic.
4. Customs duties on imports may be introduced by the Republic of Estonia during the first
two years following the entry into force of this Agreement and after consultations in the JointCommittee.  If necessary, the period of two years ma y be prolonged by one year by the decision of the
Joint Committee.  These measures shall be applied for a period not exceeding three years.
5. In all such cases the Republic of Estonia shall ensure a sizeable margin of preference for
products originating in the Czech Republic granting them treatment not less favourable, than grantedby the Czech Republic to the products originating in the Republic of Estonia.WT/REG62/1
Page 6
Article 16
Special Safeguards
Notwithstanding other provisions of this Agreement and, in particular, Article 29, if, given the
particular sensitivity of the agricultural markets, imports of products originating in a Party, which are
subject to concessions granted under this Agreement, cause serious disturbance to the markets of the
other Party, the Party concerned shall enter into consultations immediately to find the appropriate
solution.  Pending such solution, the Party concerned may take the measures it deems necessary.
Article 17
Veterinary, Health and Phytosanitary Measures
1. Measures concerning veterinary and phytosanitary control will be harmonized with the
European Union legislation and between the Parties.
2. The veterino-sanitary measures and the work of the veterinary services will be in accordance
with the Office International des Epizoodies Codex and other international conventions in this field.
3. The Parties commit themselves not to introduce discriminatory measures which would limit
the flow of information, animals, plants or products.
CHAPTER III
General Provisions
Article 18
Rules of Origin and Co-operati on in Customs Administration
1. Protocol 2 to this Agreement 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 2 to this
Agreement and Articles 3 to 7, 10 to 14, 19 and 30 of this Agreement are effectively and
harmoniously applied, and to reduce, as far as possible, the formalities imposed on trade, and toachieve mutually satisfactory solutions to any difficulties arising from the operation of those
provisions.
3. The mutual assistance between administrative authorities in customs matters shall take place
in accordance with the provisions of Protocol 3 to this Agreement.
Article 19
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.WT/REG62/1
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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 20
General Exceptions
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on the grounds of public morality, public policy or public security;  the protection of
human, animal or plant life or health;  the protection of national treasures possessing artistic, historic
or archaeological value;  the protection of intellectual property or rules relating to gold or silver or to
the conservation of exhaustible natural resources if such measures are made effective in conjunctionwith 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.
Article 21
Security Exceptions
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 22
State Monopolies
1. The Parties shall adjust progressively any State monopoly of commercial character so as to
ensure that by 1 July 1999 no discrimination regarding the conditions under which goods are procured
and marketed exists between nationals of the Parties.
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 orappreciably influence imports or exports between the Parties.  These provisions shall likewise apply to
monopolies delegated by a Party to other bodies.WT/REG62/1
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Article 23
Payments
1. Payments in freely convertible currencies relating to trade in goods between the Parties and
the transfer of such payments to the territory of  the Party to this Agreement, 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 related to trade in goods in which a
resident participates.
3. Notwithstanding the provisions of paragraph 2, any measures concerning current payments
connected with the movements of goods shall be in conformity with the conditions laid down under
Article VIII of the Articles of Agreement of the International Monetary Fund.
Article 24
Rules of Competition concerning Undertakings
1. The following are incompatible with the proper functioning of this Agreement insofar 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 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 a
revenue-producing monopoly, shall be subject to provisions of paragraph 1 insofar as the applicationof these provisions does not obstruct the performance, in law or in fact, of the particular public tasks
assigned to them.
3. With regard to products referred to in Chapter II the provisions stipulated in paragraph 1(a)
shall not apply to such agreements, decisions and practices which form an integral part of a nationalmarket 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 inaccordance with the procedure laid down in Article 33.
Article 25
State Aid
1. Any aid granted by a State being a Party to this Agreement or through state resources in any
form whatever which distorts or threatens to distort competition by favouring certain undertakings orWT/REG62/1
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the production of certain goods shall, insofar 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 referred to in Chapter II.
3. The Joint Committee shall, within three years from 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.
4. The Parties shall ensure transparency in the area of state aid, inter alia , by reporting annually
to each other on the total amount and the distributio n of the aid given and by providing to the other
Party, upon request, information on aid schemes a nd 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 such rules, 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 of and in accordance with the provisions of
Article 33.  Such appropriate measures may only be taken in conformity with the procedures and
under the conditions of the World Trade Organizati on and any other relevant instrument negotiated
under its auspices which are applicable between the Parties.
Article 26
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 develop their respective regulations for public procurement
with a view to grant suppliers of the other Party, on 1 January 1999 at the latest, access to contract
award procedures on their respective public procurem ent markets according to the provisions of the
Agreement on Government Procurement within the framework of the World Trade Organization.
3. The Joint Committee shall examine developments related to the achievement of the objectives
of this Article and may recommend practical modalities of implementing the provisions of
paragraph 2 so as to ensure free access, transparency and full balance of rights and obligations.
4. During the examination referred to in paragraph 3, the Joint Committee may consider,
especially in the light of developments in this  area in international relations, the possibility of
extending the coverage and/or the degree of the market opening provided for in paragraph 2.
5. The Parties shall endeavour to accede to the relevant Agreements negotiated under the
auspices of the World Trade Organization.WT/REG62/1
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Article 27
Protection of Intellectual Property
1. The Parties shall grant and ensure the protection of intellectual property rights on a
non-discriminatory basis, including measures for granting and enforcing such rights.  The protection
shall be gradually improved on a level corresponding to the substantive standards of the multilateral
agreements which are specified in Annex IV to this Agreement before 1 January 1999.
2.  For the purpose of this Agreement "intellectual property protection" includes, in particular,
protection of copyright, comprisi ng computer programs and databases, and neighbouring rights, trade
marks, geographical indications, industrial designs, patents, topographies of integrated circuits, aswell as undisclosed information on know-how.
3. The Parties shall co-operate in matters of intellectual property.  They shall hold, upon request
of any Party, expert consultations on these matters, in particular, on activities relating to the existing
or to future international conventions on harmonization, administration and enforcement ofintellectual property and on activities in international organizations, such as the World Trade
Organization and the World Intellectual Property Organization, as well as relations of the Parties with
any third country on matters concerning intellectual property.
Article 28
Dumping
If a Party finds that dumping within the meaning of Article VI of the General Agreement on
Tariffs and Trade 1994 is taking place in trade relations governed by this Agreement, it may takeappropriate measures against that practice in accordance with Article VI of the General Agreement on
Tariffs and Trade 1994 and the Agreement on Implementation of Article VI of the General Agreement
on Tariffs and Trade 1994 under the conditions and in accordance with the procedure laid down in
Article 33.
Article 29
General Safeguards
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 33.WT/REG62/1
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Article 30
Structural Adjustment
1. Exceptional measures of limited duration which derogate from the provisions of Article  3
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 by these measures may not exceed 25 per cent ad valorem  and shall maintain
an element of preference in customs duty rate for products originating in the other Party.  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 during the last year
for which statistics are available.
4. These measures shall be applied for a period not exceeding three years.  They shall cease to
apply on 1 January 2001 at the latest.
5. No such measures can be introduced in respect of a product if more than two years have
elapsed since the elimination of all customs duties and quantitative restrictions or charges or measures
having an equivalent effect concerning that product.
6. The Party concerned shall inform the other Party of any exceptional measures it intends to
take and, upon request of the other Party, consultations shall be held within the Joint Committee onsuch measures and the sectors to which they apply prior to their introduction.  When taking such
measures the Party concerned shall provide the Join t Committee with a schedule for the elimination of
the customs duties introduced under this Article.  This schedule shall provide for a phasing out of
these customs duties starting at the latest one year after their introduction.  The Joint Committee may
decide on a different schedule.
Article 31
Re-Export and Serious Shortage
Where compliance with the provisions of Articles 5 and 7 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 or
charges 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 or 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 33.WT/REG62/1
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Article 32
Fulfilment of Obligations
1. The Parties shall take any general or specific  measures required to fulfill 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 fulfill 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 33.
Article 33
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 29 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, a Party which considers resorting to safeguard measures
shall promptly notify to the other Party thereof and supply all relevant information.  Consultations
between the Parties shall take place without delay in the Joint Committee with a view to finding a
solution.
4. (a) With regard to Articles 28, 29 and 31, the Joint Committee shall examine the case or
the situation and may take any decision needed to put an end to the difficulties
notified by the Party concerned.  In the case of the absence of such a 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) With regard to Article 32, the Party concerned may take appropriate measures after
the consultations have been concluded or a period of three months has elapsed from
the date of the first notification to the other Party.
(c) With regard to Articles 24 and 25, the Party concerned shall give the Joint Committee
all the assistance required in order to examine the case and, where appropriate,
eliminate the practice objected to.  If the Party in question fails to 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 days of the matter being referred
to it, the Party concerned may adopt the appropriate measures to deal with thedifficulties resulting from the practice in question.
5. The safeguard measures taken shall be immediately notified to the other Party.  They shall 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 bythe practice or the difficulty in question.  Priority shall be given to such measures which will least
disturb the functioning of this Agreement.WT/REG62/1
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6. The safeguard measures taken shall be the subject 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 28, 29 and 31, apply forthwith the
provisional measures strictly necessary to remedy the situation.  The measures shall be notified
without delay and consultations between the Parties shall take place as soon as possible within the
Joint Committee.
Article 34
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 relevant provisions of the General
Agreement on Tariffs and Trade 1994 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 paymentsconditions improve and they shall be eliminated when conditions no longer justify their maintenance.
The Party concerned shall inform the other Party forthwith of their introduction and, whenever
practicable, of a schedule for their removal.
Article 35
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 the
Joint Committee to examine such a request and, where appropriate, to make recommendations,particularly with a view to opening negotiations.
2. Agreements resulting from the procedure referred to in paragraph 1 will be subject to the
ratification or the approval by the Parties in accordance with their national legislation.
CHAPTER IV
Institutional and Final Provisions
Article 36
The Joint Committee
1. The Joint Committee is hereby established and shall consist of a representative appointed by
the Government of the Czech Republic, on the one hand, and of a representative appointed by the
Government of the Republic of Estonia, on the other hand.WT/REG62/1
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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, upon request of any Party, shall hold consultations within the Joint Committee.  TheJoint 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 Joint Committee may make recommendations.
Article 37
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 a representative in the Joint Committee of a Party has, under the reservation, accepted 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 day the lifting of the reservation is notified.
4. For the purpose of this Agreement the Joint Committee shall adopt its rules of procedure
which shall, inter alia , contain provisions for convening meetings and for the designation of the
Chairman and his term of office.
5. The Joint Committee may decide to set up such sub-committees and working groups as it
considers necessary to assist it in accomplishing its tasks.
Article 38
Trade Relations Governed by this and other Agreements
1. This Agreement shall apply to trade relations between the Czech Republic and the Republic
of Estonia.
2. 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 and, in particular, the provisions concerning rules of origin provided for by this
Agreement.
Article 39
Annexes and Protocols
1. The Annexes I to IV to this Agreement and the Protocols 1 to 3 to this Agreement shall form
an integral part of this Agreement.
2. The Joint Committee may decide to amend the Annexes and Protocols.  In this case the
amendments shall enter into force on the date of a receipt of the latter diplomatic note confirming
their approval by the Government of a respective Party.WT/REG62/1
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Article 40
Amendments
Amendments to this Agreement other than those referred to in paragraph 2 of Article 39 shall
enter into force on the date of a receipt of the latter diplomatic note confirming that all procedures
required by the national legislations of each Party for entry into force of the amendments have been
completed.
Article 41
Entry into Force
1. This Agreement is subject to the ratification and shall enter into force on the date of exchange
of the instruments of ratification.
2. The exchange of the instruments of ratification shall take place in Prague.
3. The Parties shall apply this Agreement provisionally from 1 July 1996 if this Agreement
cannot enter into force by 1 July 1996.
Article 42
Validity and Termination
1. This Agreement is concluded for an unlimited period.2. Either Party may terminate this Agreement by a written notification to the other Party.  The
termination shall take effect on the first day of the seventh month following 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 Tallinn this nineteenth day of April one thousand nine hundred and ninety six, in two
originals, each in the English language, both texts being equally authentic.
For the Czech Republic For the Republic of EstoniaWT/REG62/1
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RECORD OF UNDERSTANDINGS
1. The Parties shall continue in their efforts with a view to achieve further liberalization of trade
in agricultural products within the framework of their respective agricultural policies and theirinternational commitments.
2. In the second half of 1997 at the latest, the Parties shall examine the possibilities of granting
each other further concessions, aiming at full liberalization of trade in agricultural products between
the Parties.
3. The diagonal cumulation laid down in Article 4 of Protocol 2 to this Agreement may only be
applied when the countries mentioned in this Article have concluded the Free Trade Agreement or the
Agreement Establishing the Customs Union, containing identical rules of origin, with both Parties.
For the countries not complying with this condition on  the date of entry into force of this Agreement,
Article 4 shall apply from the date of entry into force either of the Free Trade Agreement or the
Agreement Establishing the Customs Union or of the amendment of such Agreement, containingidentical rules of origin, between that country and the latter of the Parties.
Each reference to Article 4 of Protocol 2 to this Agreement shall apply in accordance with
this Record of Understandings.
4. The prohibition of drawback of, or exempti on from, customs duties laid down in Article 15 of
Protocol 2 to this Agreement shall be temporarily derogated until it will be applied in the framework
of the diagonal cumulation between both Parties and the European Union.  Either Party may decide on
partial application of this Article in full conformity with the possible modalities of its partial
application with the European Union.
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