WORLD TRADE
ORGANIZATIONWT/REG77/1
15 June 1999
(99-2408)
Committee on Regional Trade Agreements Original:  English
AGREEMENTS BETWEEN THE REPUBLIC OF ESTONIA,
THE REPUBLIC OF LATVIA AND THE REPUBLIC OF LITHUANIA
Communication from Latvia
The following texts reproduces the Agreements between Latvia, Estonia and Lithuania.
_______________
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF ESTONIA,
THE REPUBLIC OF  LATVIA AND THE REPUBLIC OF LITHUANIA
Preamble
The Republic of Estonia, the Republic of Latvia and the Republic of Lithuania  (hereinafter
referred to as "the Parties"),
Recalling  their intention to participate actively in the process of economic integration in
Europe and expressing their preparedness to cooperate in seeking ways and means to strengthen this
process,
Having regard  to the Protocol on the Development of Free Trade Regime between the
Republics of Estonia, Latvia and Lithuania signed in Tallinn on 26 March, 1992,
Taking into account  the need for the better trade and economic cooperation between the three
Baltic countries as well as to foster the process of the full implementation of the common Balticmarket,
Recalling  their firm commitment to the Final Act of the Conference on Security and
Cooperation in Europe, the Charter of Paris for a New Europe, and in particular the principles
contained in the final document of the CSCE Bonn Conference on Economic Cooperation in Europe,
Reaffirming  their commitment to the idea of creating the State based on the rule of law,
human rights and fundamental freedoms,
Desiring  to create favourable conditions for the development and diversification of the trade
between them and for the promotion of commerci al and economic cooperation in areas of common
interest on the basis of equality, mutual benefit and international law,
Resolved  to contribute to the strengthening of the multilateral trading system and develop
their relations in the field of trade in accordance with the basic principles of the General Agreement
on Tariffs and Trade,WT/REG77/1
Page 2
Declaring  their readiness to examine, in the light of any relevant factor, the possibility of
developing and deepening their relations in order to extend them to fields not covered by this
Agreement,
Have decided  to conclude this Agreement:
Article 1
Objectives
1. The Parties shall establish a free trade area in accordance with the provisions of this
Agreement.
2. The objectives of this Agreement, which is based on trade relations between market
economies, are:
(a) to  promote,  through  the  expansion  of  mutual  trade,  the harmonious development
of  the  economic  relations between Estonia, Latvia and  Lithuania  and thus to foster
the advancement of economic activity,  the  improvement  of  living  and
employment  conditions, increased productivity, financial stability and sustainable
growth of all three Parties;
(b) to provide fair conditions of competition for the trade between the Parties;
(c) to contribute in this way, by the removal of barriers to trade, to the harmonious
development  and expansion of trade in the Baltic Sea area;
(d) to develop and intensify, as far as possible, cooperation in the areas  which are not
covered by this Agreement, especially in the promotion of investments, economic and
scientific cooperation, economic aid in the environment protection.
Article 2
Scope
This Agreement  shall apply to products falling within Chapters 25 to 97 of the Harmonized
Commodity Description and Coding System, originating in Estonia, Latvia or Lithuania.
Article 3
Trade in agricultural products
1. The Parties declare  their  readiness to foster, in so far as their agricultural policies allow,
harmonious development of trade in agricultural products.
2. The Parties shall conclude a separate Agreement on Trade in Agricultural Products falling
within Chapters 1-24 of the Harmonized Commodity Description and Coding System.
3. The Parties shall apply their regulations in veterinary, plant health and health  matters in a
non-discriminatory fashion and shall not introduce any new measures that have the effect of unduly
obstruction trade.WT/REG77/1
Page 3
Article 4
Rules of origin and cooperation in customs administration
1. Protocol A lays down the rules of origin and methods of administrative cooperation.2. Protocol B lays down the provisions of cumulation.3. The Parties of this Agreement shall take appropriate measures, including regular reviews by
the Joint Committee and arrangements for administrative cooperation, to ensure that the provisions of
Article 5 (Prohibition and abolition of customs duties and imports and charges having equivalent
effect), Article 7 (Prohibition and abolition of quantitative restrictions on  imports or exports andmeasures having equivalent effect), Article 11 (Internal  taxation) and Article 20  (Re-exports and
serious shortage) of this Agreement and Protocol A are effectively and harmoniously applied, and to
reduce, as far as possible, the formalities imposed on trade, and to achieve mutually satisfactory
solutions to any difficulties arising from the operation of those provisions.
Article 5
Prohibition and abolition of customs duties of 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 and charges having equivalent effect shall be abolished upon the
date of entry into force of this Agreement.
3. The provisions of this Article shall also apply to customs duties of a fiscal nature.  The Parties
may replace a customs duty by an internal tax.
Article 6
Prohibition and abolition of customs duties on exports and
charges having equivalent effect
1. No new customs duty on exports and charges having equivalent effect shall be introduced in
trade between Estonia, Latvia and Lithuania.
2. Customs  duties on exports and charges having equivalent effect shall be abolished upon the
entry into force of this Agreement except as provided for in Annex 1.
Article 7
Prohibition and abolition of quantitative restrictions on imports
or exports and measures having equivalent effect
1. No new quantitative restriction on imports or exports and measures having equivalent effect
shall be introduced in trade between Estonia, Latvia and Lithuania.
2. Quantitative restrictions on imports or exports and measures having equivalent effect shall be
abolished on trade upon the date on entry into force of this Agreement except as provided for in
Annex 2.WT/REG77/1
Page 4
Article 8
General exceptions
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public policy or public security; the protection of
health and life of humans, animals or plants; the protection of the environment; the protection of
national treasures possessing artistic, historic or archaeological value; the protection of intellectual
property; laws and regulations relating to precious stones and metals.  Such prohibitions or restrictions
shall not however, constitute means of arbitrary discriminations or a disguised restriction on trade
between the Parties.
Article 9
State monopolies
1. he Parties shall ensure that any state monopoly of commercial character be adjusted, so that
no discrimination regarding the conditions under which goods are procured and marketed will exist
between nationals of Estonia, Latvia and Lithuania.  These goods shall be procured and marketed in
accordance with commercial considerations.
2. This Article shall apply to the institutions through which the competent authorities of the
Parties, in law or in fact, either directly or indi rectly supervise, determine or appreciably influence
imports or exports between the Parties.  These provisions shall likewise apply to monopolies
delegated by the state to others.
Article 10
National treatment
The goods  originating from the territory of one Party imported into the territory of  any other
Party shall be accorded treatment no less favorable than that accorded to like goods of national origin
in respect of all laws, regulations and  requirements affecting their internal sale, offering for sale,purchase, transportation, distribution or use.
Article 11
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 one
Party and like products originating in the one of the other Parties.
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 12
Payments
1. Payments relating to trade and the transfer to  such payments to the territory of the Party
where the creditor resides shall be free from any restrictions.WT/REG77/1
Page 5
2. The Parties shall refrain from administrative restrictions on the grant, repayment or
acceptance of short-term and medium-term credits covering commercial transactions.
3. Payments are effected on the basis of the Agreements between the Bank of Estonia, the Bank
of Latvia and the Bank of Lithuania.
Article 13
Public procurement
The Parties consider the effective liberalization of their respective public procurement
markets as an integral objective of this Agreement.
Article 14
The legal protection of intellectual property
1. To achieve the objectives of this Agreement, the Parties shall guarantee adequate, effective
and non-discriminatory legal protection of intellectual property rights.  With the establishment of this
legal protection, especially against counterfeiting and piracy, they will adopt and apply adequate,
effective and non-discriminatory measures.
2. The Parties shall take all necessary measures after the entry into force of  this Agreement to
comply with the substantive provisions of international conventions in the field of protection of
intellectual property rights.
3. In the field of intellectual property, the Parties shall not grant treatment less favorable to each
other's nationals than that accorded to nationals of a third state.
4. The Parties may apply, using their national laws and regulations, legal protection with
exceeds the provisions of this Article provided that this legal  protection  is not in contradiction with
the provisions of this Agreement.
5. If one of the Parties considers that one of the other Parties has failed to fulfil the obligations
under this Article, Article 26 (Fulfilment of obligations), paragraph 2 shall apply.
6. The Parties shall agree upon appropriate modalities for technical assistance and cooperation
of their respective authorities.
Article 15
Rules of competition concerning undertakings
1. The following are incompatible with the proper functioning of this Agreement insofar as they
may affect trade between Estonia, Latvia and Lithuania:
(a) all agreements between undertakings, decisions taken 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 one or more undertakings of a dominant position in the territories of the Parties
as a whole or in a substantial part thereof.WT/REG77/1
Page 6
2. If a Party to this Agreement considers that  a given practice is incompatible with the
provisions of paragraph 1 of this Article, it may take appropriate measures after consultations within
the Joint Committee or after thirty days following referral to such consultations.
Article 16
State aid
1. Any aid granted by a Party to this Agreement or through State resources in any form
whatsoever which distorts or threatens to distort competition by favouring certain undertaking or 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 Parties shall ensure transparency of state aid by exchanging information on the request of
any Party.
3. The Joint Committee shall keep the situation regarding the application of state aid measures
under review, and shall with regard to other state aid than export aid, elaborate further rules of
implementation.
4. If a Party considers that a given practice is incompatible with paragraph 1 of this Article, it
may take appropriate measures under the conditions and in accordance with the procedure laid downin Article 22.
Article 17
Dumping
If a Party finds that dumping within the meaning of Article 6 of the General Agreement on
Tariffs and Trade is taking place in trade relations governed by this Agreement, it may take
appropriate measures against that practice in  accordance  with  that Article and agreement related to,
under conditions and in accordance with the procedure laid down in Article 22 of this Agreement.
Article 18
Emergency action on imports of a particular product
If an increase in imports of a given product origin ating in Estonia, or in Latvia or in Lithuania
occurs in quantities or under conditions which cause, or are likely to cause:
(a) serious injury to domestic producers of like or directly competitive products in the
territory of the Party, or
(b) serious disturbances in any related sector of the economy or difficulties which could
bring about serious deterioration in the economy or the economic situation of a
region, the party concerned may take  appropriate measures under the conditions and
in accordance with procedure laid down in Article 22 of this Agreement.WT/REG77/1
Page 7
Article 19
Structural adjustment
1. Exceptional measures may only concern industries or certain sectors undergoing restructuring
or facing serious difficulties, particularly where these difficulties produce important social problems.
2. Customs duties on imports applicable in one Party to products originating in any other Party
introduced by these measures may not exceed 25 per  cent  ad  valorem.  Such customs duties shall
maintain an element of preference for  products originating in any of the Parties and they may not
exceed 15 per cent of total imports of industrial products from Estonia, Latvia and Lithuania as
defined in Article 2 during the last year for which statistics are available.
3. These measures shall be applied for a period not exceeding five years unless a longer duration
is authorized by the Joint Committee, and cannot be introduced  later than five years after the entry
into force of this Agreement.
4. The Parties shall inform the Joint Committee of  any exceptional measures it intends to take
and, at the request of one Party consultations shall be held in the Joint Committee on such measures
and the sectors to which they  apply before they are introduced.  When taking such measures the
Parties shall provide the Joint 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 duties starting atthe latest two years after their introduction, at equal annual rates.  The Joint Committee may decide on
a different schedule.
Article 20
Re-exports and serious shortage
Where compliance with the provisions of Article 6 and 7 leads to:(a) re-export towards a third country against which the exporting Party maintains for the
products 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 a 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 procedures laid down in Article 22 of thisAgreement.
Article 21
Balance of payments difficulties
1. If one Party is in serious balance of payments difficulties, or under imminent threat  thereof,
Estonia, Latvia or Lithuania, as the case may be, may, in accordance with the terms and conditions
established under the General Agreement on Tariffs and Trade and associated legal instruments, adopt
trade restrictive measures, which shall be of limited duration and may not go beyond what isnecessary to remedy the balance of payments situation.  The Parties shall give preference to price-
based measures.  The measures shall be eliminated when conditions no longer justify their
maintenance.  The Party concerned shall inform the Joint Committee forthwith of their introduction
and of a time schedule for their removal.WT/REG77/1
Page 8
2. The Parties shall, nevertheless, endeavour to avoid the imposition to restrictive measures for
balance of payments purposes.
Article 22
Procedure for the application of safeguard measures
1. Without prejudice to paragraph 5 of this Article, the Party which considers resorting a
safeguard measures shall promptly notify the other Parties thereof and supply all relevant information.
Consultations shall take place without delay in the Joint Committee with a view of finding a mutually
acceptable solution.
2. (a) As regards Article 26 (State aid) the Parties concerned shall give to the Joint
Committee all the assistance required in order to examine the case and, where
appropriate, eliminate this practice.  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 JointCommittee fails to reach an agreement after consultations, or after thirty days
following referral to such consultati ons, the party concerned may adopt the
appropriate measures to deal with the difficulties resulting from the practice in
question.
(b) As regards Article 17 (Dumping), 18 (Emergency action on import of a particular
product) and 20 (Re-exports and serious shortage), 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 absence of such a decision
within thirty days of the matter being re ferred to the Joint Committee, the party
concerned may  adopt  the  measures  necessary in order to remedy the  situation.
(c) As regards Article  26 (Fulfilment of obligations) the party concerned shall supply the
Joint Committee with all relevant information required for a thorough examination of
the situation with a view  to seeking a mutually acceptable solution.  If the Joint
Committee fails to reach such a solution or if a period of three months has elapsed
from the date of notification, the party concerned  may take appropriate measures.
3. The safeguard measures taken shall be notified immediately to other Parties.  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 by
the practice or the difficulty in question.  Priority shall be given to such measures as will least disturbthe functioning of this Agreement.
4. The safeguard measures taken shall be the object of regular consultations with a view to their
relaxation, substitution or abolition as soon as possible.
5. Where exceptional circumstances requiring immediate action make prior examination
impossible, the Party concerned may, in the cases of Articles 16 (State aid), 17 (Dumping),
18 (Emergency action on imports of a particular product) and 20 (Re-exports and serious shortage)
apply forthwith the precautionary and provisional measures strictly necessary to deal with the
situation.  The  measures shall be notified to the Joint Committee without delay and consultationsbetween the Parties shall take place as soon as possible.WT/REG77/1
Page 9
Article 23
Security exceptions
Nothing in this Agreement shall prevent a Part y to this Agreement from taking any measures
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 interest 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 conditioned  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 and other nuclear explosive devices; or
(iii) taken  in  time  of  war  other  serious  international tension.
Article 24
The Joint Committee
1. A Joint Committee is hereby established, which shall be responsible for the administration of
this Agreement and shall review its implementati on. For this purpose it shall follow closely the
development of the trade and economic cooperation between the Parties and take any corresponding
measure to improve and further develop those relations.  The decisions of the Joint Committee shall
be put into effect by the Parties  in accordance with their own laws.
2. For the purpose of the power implementation of this Agreement the Parties shall exchange
information, and at the request of any Party, shall hold consultations within the Joint Committee.
3. The Joint Committee shall consist of representatives of Estonia, Latvia and Lithuania.4. The Joint Committee shall act by mutual consensus.5. Each Party shall preside alternately over the Joint Committee.6. The meetings of the Joint Committee shall be held at least once a year in order to review the
general functioning of this Agreement. The Joint Committee shall, in addition, meet whenever specialcircumstances so require at the request of any Party.
7. The Joint Committee may decide to set up any working groups that can assist it in carrying
out its duties.
8. The Joint Committee may take independent decisions concerning the application of this
Agreement.  The Joint Committee shall make recommendations and decisions on the amendments in
accordance with the formal procedure of each Party.WT/REG77/1
Page 10
Article 25
Evolutionary clause
The Parties shall recognize the growing importance of such areas as services, investments and
the implementation  of joint projects.  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 sh all submit a reasoned request to the other  Parties.
The Parties may instruct the Joint Committee  to examine this request and, where appropriate, to make
recommendations to them, particularly with a view of opening up negotiations.
Article 26
Fulfilment of obligations
1. The Parties shall take all necessary measures to ensure the achievement of the objectives of
this Agreement and the fulfilment of their obligations under this Agreement.
2. If one of the Parties considers that any other Party has failed to fulfil an obligation under this
Agreement, the party concerned may take appropriate measures after consultations in the Joint
Committee under the conditions and  in accordance with the procedure laid down in Article 22
(Procedure for the application of safeguard measures).
Article 27
Annexes and Protocols
The Annexes  and the Protocols A and B to th is Agreement are an integral part of it.
Article 28
Customs unions, free trade areas and frontier trade
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 29
Amendments
Amendments to this Agreement shall be submitte d to the Parties for acceptance in accordance
with Article 24, paragraph 8 of this Agreement and shall enter into force from the moment of receiptof the respective notifications from the Depositary.
Article 30
Depositary
The Government  of  the  Republic of Estonia shall act as the Depositary for this Agreement.WT/REG77/1
Page 11
Article 31
Entry into force
The Parties will notify the Depositary in writing when the constitutional requirements
necessary to give effect to this Agreement in th eir respective states have been complied with.  This
Agreement shall, when notifications have been received from the last Party, enter into force on the
first day of  the second month following the date of that deposit and shall remain in force indefinitely.
Article 32
Denunciation
Any party may denounce this Agreement by means of a written notification to the Depositary.
This Agreement shall cease to be in force six months after the date on which the depositary has
informed all Parties about the receipt of such notification.
IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorized thereto
have signed the present Agreement.
DONE at Tallinn, this 13. day of September 1993, in a single copy in the Estonian, Latvian,
Lithuanian and English languages which shall be deposited with the Government of the Republic of
Estonia.
In case of a dispute the English text shall prevail.
For the Republic For the Republic For the Republic
of Estonia of Latvia of LithuaniaWT/REG77/1
Page 12
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF ESTONIA
AND THE REPUBLIC OF LATVIA AND THE REPUBLIC OF LITHUANIA
ON TRADE IN AGRICULTURAL PRODUCTS
Preamble
The Republic  of  Estonia (hereinafter referred to as "Estonia"), the Republic of  Latvia
(hereinafter referred to as "Latvia") and the Republic of Lithuania  (hereinafter referred to as
"Lithuania"), jointly referred to as "the Parties",
Having regard   to the Preamble and Article 3 of the Free Trade Agreement between the
Republic of Estonia and the Republic of Latvia and the Republic of Lithuania signed on13 September 1993,
Recalling  their intention to participate actively in the process of integration in Europe and
expressing their preparedness to co-operate in seeking ways and means to strengthen this process,
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,
Desiring  to create favourable conditions for the development and diversification of trade
between them and for the promotion of commercial and economic co-operation in areas of commoninterest on the basis of equality, mutual benefit and international law,
Resolved  to contribute to the strengthening of th e multilateral trading system and to develop
their relations in the field of trade in accordance wi th the principles of the Agreement Establishing the
World Trade Organisation (WTO), Estonia, Latvia and Lithuania having the objective to become aMember of WTO,
Determined  to implement this Free Trade Agreement with the objective to preserve and
protect the environment and to ensure an optimal use of natural resources in accordance with the
principle of sustainable growth,
Declaring  their readiness to examine, in the light of any relevant factor, the possibility of
developing and deepening their economic relations in order to extend them to fields not covered by
this Agreement,
Have decided , in pursuit of the above, to conclude the following Agreement (hereinafter
referred to as "this Agreement"):
Article 1
Objectives
The objectives of this Agreement are:
(a) to create a free trade area for agricultur al, food and fish products between Estonia,
Latvia and Lithuania;
(b) to promote, through liberalisation of trade in agricultural products, the harmonious
development of the economic relations between Estonia, Latvia and Lithuania;
(c) to provide fair conditions of competition for trade between the Parties.WT/REG77/1
Page 13
Article 2
Scope
This Agreement shall apply to products falling within Chapters 01 to 24 of the Harmonised
Commodity Description and Coding System orig inating in Estonia, Latvia or Lithuania.
Article 3
Customs duties on imports and charges having equivalent effect
1. The Parties shall abolish in trade between them on the date of entry into force of this
Agreement all customs duties on imports and all charges having equivalent effect on products
originating in the Parties in accordance with the provisions of Article 7 (Rules of origin).
2. No new customs duty on imports or charge having equivalent effect shall be introduced in
trade between the Parties.
Article 4
Fiscal duties
The provisions of Article 3 (Customs duties on imports and charges having equivalent effect)
shall also apply to customs duties of a fiscal nature.
Article 5
Customs duties on exports and charges having equivalent effect
1. The Parties shall abolish in trade between them on the date of entry into force of this
Agreement all customs duties on exports and charges having equivalent effect to customs duties on
exports.
2. No new customs duty on exports or charge having equivalent effect shall be introduced in
trade between the Parties.
Article 6
Quantitative restrictions on imports or exports
and measures having equivalent effect
1. Quantitative restrictions on imports or exports and measures having equivalent effect in trade
between the Parties shall be abolished upon the entry into force of this Agreement.
2. No new quantitative restrictions on imports or exports and measures having equivalent effect
shall be introduced in trade between the Parties.WT/REG77/1
Page 14
Article 7
Rules of origin
The rules of origin for the purposes of implementation of this Agreement are set  out in
Protocol A to the Free Trade Agreement between the Republic of Estonia  and the Republic of Latvia
and the Republic of Lithuania signed on 13 September 1993.
Article 8
General exceptions
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit, justified on grounds of public morality, public policy or public security; the protection of
health and life of humans, animals or plants and the environment; the protection of national treasures
possessing artistic, historic or archaeological value, protection of intellectual property.  Such
prohibitions or restrictions shall not, however, cons titute a means of arbitrary discrimination or a
disguised restriction on trade between the Parties.
Article 9
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 one Party and like
products originating in the other Parties.
2. Exporters may not benefit from  repayment of internal taxation in excess of the amount of
direct or indirect taxation imposed on products exported to the territory of one of the Parties.
Article 10
Payments
1. Payments relating to trade between Estonia, Latvia and Lithuania and the transfer of such
payments to the territories of the Parties where the creditor resides, shall be free from any restrictions.
Payments between the Parties shall be effected in freely convertible currencies, unless otherwise
agreed by individual companies in individual cases.
2. The Parties shall refrain from any currency exchange or administrative restrictions on the
grant, repayment or acceptance of short and medium-term credits covering commercial transactions in
which a resident participates.
Article 11
Export subsidies
1. Export subsidies granted by a Party which distort or threaten to distort competition by
favouring certain undertakings or the production of certain goods shall, insofar as it may affect tradebetween Estonia, Latvia and Lithuania, be incompatible with the proper functioning of this
Agreement.WT/REG77/1
Page 15
2. If a Party considers that a given practice is incompatible with the provisions of paragraph 1 of
this Article, it may take appropriate measures under the conditions and in accordance with the
procedures laid down in Article 16 (Procedure for the application of safeguard measures).
Article 12
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 with other Party, the Party concerned may take
appropriate measures against this practice in accordance with the procedure laid down in Article 16
(Procedure for the application of safeguard measures).
Article 13
Emergency action on imports of particular products
Where any product originating in Estonia, Latvia or Lithuania 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 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 Party,
the Party  concerned  may take appropriate measures under the conditions and in  accordance with the
procedure laid down in Article 16 (Procedure of application of safeguard measures).
Article 14
Balance of payments difficulties
1. Notwithstanding the provisions of Article 3 (Customs  duties on imports and charges having
equivalent effect), Article 4 (Fiscal duties) and Article 6 (Quantitative restrictions on imports or
exports and measures having equivalent effect), a Party may, consistently with its other international
obligations, introduce restrictive measures on trade if it is in serious balance of payments difficulties
or under imminent threat thereof.  Such measures shall be of limited duration and non-discriminatory,
and may not go beyond what is necessary to remedy the balance of payments situation.  Preferenceshall be given to price-based measures which shall be progressively relaxed as balance of payments
conditions improve and eliminated when conditions no longer justify their maintenance.
2. Measures  taken  in accordance with paragraph 1 of this Article shall be notified to the Joint
Committee, if possible prior to their introduction.  The Joint Committee shall, upon the request of theother Party, examine the need for maintaining the measures taken.
3. The Parties shall, nevertheless, endeavour to avoid the imposition of restrictive measures for
balance of payments purposes.WT/REG77/1
Page 16
Article 15
Re-export and serious shortage
Where compliance with the provisions of Arti cle 5 (Customs duties on exports and charges
having equivalent effect) and Article 6 (Quantitative restrictions on imports or exports and measures
having equivalent effect) 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 procedures laid down in Article 16
(Procedure  for  the application of safeguard measures).  The measures referred to insubparagraph (b) shall be non-discriminatory.  The  measures  shall  be  eliminated
when conditions no longer justify their maintenance.
Article 16
Procedure for application of safeguard measures
1. The Party which considers resorting to safeguard measures shall promptly notify the other
Parties thereof and supply all  relevant information.  Consultations shall take place without delay in
the Joint Committee with a view of finding a mutually acceptable solution.
2. (a) As regards Article 11 (Export subsidies), the Parties shall give to the  Joint
Committee  assistance  required in order to examine the case and, where  appropriate,
eliminate this 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 after consultations, or after thirty days
following referral  to such  consultations, the Party concerned may adopt theappropriate measures to deal with the difficulties resulting from the practice in
question.
(b) As  regards  Article  12  (Dumping), Article 13 (Emergency action on imports of
particular  products)  and  Article  15  (Re-export and serious shortage), the  JointCommittee 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 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.
(c) As  regards Article 21 (Fulfilment of obligations), the Party concerned shall supply
the Joint Committee with all relevant information required for a thorough
examination of the situation with a view to seeking a commonly acceptable solution.
If the Joint Committee fails to reach such a solution or if a period of three months haselapsed from the date of notification, the Party concerned may take appropriate
measure.WT/REG77/1
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3. The safeguard measures taken shall be notified immediately 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 their injury caused by
the practice or the difficulty in question.  Priority shall be given to such measures as will least disturb
the functioning of this Agreement.
4. The safeguard measures taken shall be the subject of regular consultations with a view to their
relaxation as soon as possible.
5. Where exceptional circumstances requiring immediate action make prior examination
impossible, the Party concerned may, in the cases provided for in Article 12 (Dumping), Article 13
(Emergency action on imports of particular products) and Article 15 (Re-export and serious shortage),and also in  cases  of export subsidies having a direct and immediate incidence on trade between the
Parties, apply forthwith the precautionary and provisional measures strictly necessary to deal with the
situation.  The measures shall be notified to the Joint Committee without delay and consultations
between the Parties shall take place as soon as possible.
Article 17
The Joint Committee
The Joint Committee established by Article 24 (The Joint Committee) of the Free Trade
Agreement between the Republic of Estonia and the Re public of Latvia and the Republic of Lithuania
signed on 13 September 1993 shall be responsible for the administration of this Agreement.
Article 18
Scientific and technical co-operation
The Parties  will promote scientific and technical co-operation in agriculture and related fields
on the basis of mutual interests.  This co-operati on may include the establishment of joint ventures,
exchange of information and  documentation, exchange of experts as well organisation of seminars
and workshops.
Article 19
Sanitary and phytosanitary measures
The Parties shall apply their regulations in sanitary and phytosanitary matters in a
non-discriminatory fashion and shall not introduce any new measures that have effect of unduly
obstructing trade.
Article 20
Evolutionary clause
The Parties  undertake  to examine, in light of any relevant factor, the possibility of further
developing and deepening the co-operation under this Agreement and to extend it to areas not covered
therein.  The Parties may instruct the Joint Committee to examine this possibility and, whereappropriate, to make recommendations to them, particularly with a view to opening up negotiations.WT/REG77/1
Page 18
Article 21
Fulfilment of obligations
1. The Parties shall take all necessary measures to ensure the achievement of the objectives of
this Agreement and the fulfilment of their obligations under this Agreement.
2. If any Party considers that other Party has failed to fulfil an obligation under this Agreement,
the Party concerned may take the appropriate measures under the conditions and in accordance with
the procedures laid  down  in  Article  16  (Procedure  for  the application of safeguard measures).
Article 22
Customs unions, free trade areas and frontier trade
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 23
Depository
he Government of Lithuania shall act as the Depository for this Agreement.  The Depository
shall notify all Parties of the deposit of any instru ment of ratification, the entry into force of this
Agreement, any other act or notification relating to this Agreement of its validity.
Article 24
Entry into force
The Parties will notify the Depository by means of a written notification when constitutional
requirements necessary to give effect to this Agreement in their respective states have been compliedwith.  This Agreement shall, when notifications ha ve been received from the last Party, enter into
force on the first day of the second month following the date of that deposit and shall remain in force
for the period specified in corresponding provisions of the Free Trade Agreement between the
Republic of Estonia and the Republic of Latvia and the Republic of Lithuania signed on
13 September 1993.
Article 25
Denunciation
Either Party may denounce this Agreement by means of a written notification to the
Depository.  For this Party the Agreement shall cease to be in  force six months after the date on
which the Depository has received such notification.  The Agreement remains in force for the other
Parties and shall cease to be in force six months after the date when either of these Parties has
denounced it by means of a written notification.WT/REG77/1
Page 19
IN  WITNESS  WHEREOF, the undersigned plenip otentiaries, being duly authorised thereto
by  their respective Governments, have signed this Agreement.
Done in Vilnius this 16th day of June 1996 in a single copy in the Estonian, Latvian,
Lithuanian and English languages which shall be deposited with the Government of Lithuania.  Incase of dispute the English text shall prevail.
For the Republic of Estonia For the Republic of Latvia For the Republic of LithuaniaWT/REG77/1
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AGREEMENT ON THE ABOLITION OF NON-TARIFF BARRIERS TO TRADE
BETWEEN THE REPUBLIC OF ESTONIA, THE REPUBLIC OF LATVIA
AND THE REPUBLIC OF LITHUANIA
Preamble
The Republic of Estonia, the Republic of Latvia and the Republic of Lithuania , hereinafter
referred to as "the Parties",
Whereas  the Parties recognise that the ultimate objective of the Parties is to become members
of the European Union;
Whereas  the Parties acknowledge the need for improving regional co-operation among the
Republic of Estonia, the Republic of Latvia and the Republic of  Lithuania, taking into account that
closer integration between the European Union and the Parties, and the Parties among themselves
should proceed in parallel;
Recognising  that the removal of remaining obstacles to trade between the Parties calls  for
concerted action in order to guarantee steady expansion of trade and fair competition;
Desiring  to ensure that technical regulations and standards, including packaging, marking and
labelling requirements and conformity assessment procedures with technical regulations and standards
do not create unnecessary obstacles to trade between the Parties;
Desiring  to guarantee that sanitary and phytosanitary measures do not create disguised
restrictions to trade;
Anxious  to strengthen their economies and to ensure their harmonious development by
reducing the differences existing between the various regions and the backwardness of the less
favoured regions;
Having regard  to the Free Trade Agreement between the Republic of Estonia, the Republic of
Latvia and the Republic of Lithuania signed on 13 September, 1993  and  to  the  Free TradeAgreement between the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania on
Trade in Agricultural Products  signed  on  16 June, 1996 hereinafter referred to as "Agreements";
Intending  to develop and deepen the Baltic free trade area by abolishing between the Parties
all remaining obstacles to the free movement of goods.
Recognising  their desire to become members of the World  Trade Organisation, Hereby agree
as follows:WT/REG77/1
Page 21
CHAPTER I
General Provisions
Article 1
Objectives
The objectives of this Agreement are:
1. To abolish the non-tariff barriers to trade between the Parties.
2. To develop and deepen the free trade area between the Parties.
Article 2
Scope
This Agreement shall apply to products falling within Chapters 01 to 97 of the Harmonised
Commodity Description and Coding System, originating in the Parties, which is subject of the
Agreements.
Article 3
Definitions
Non-tariff barriers shall mean all forms of actio n which may be taken by, or with the authority
of,  the  State;  legislation, by-laws, the administrative practice of any public authority, injunctions or
interdicts pronounced by courts, and rules promulgated by professional regulatory bodies which are
capable of hindering directly or indirectly, actually or potentially, trade between the Parties.
Sanitary or phytosanitary measure shall mean any measure applied:(a) to protect animal or plant life or health within the territory of a Party from risks
arising from the entry, establishment or spread of pests, diseases, disease carrying
organisms or disease-causing organisms;
(b) to protect human or animal life or health within the territory of a Party from risks
arising from additives, contaminants, toxins or disease-causing organisms in foods,beverages or feedstuffs;
(c) to protect human life or health within the territory of a Party from risks arising from
diseases carried by animals, plants or products thereof, or from the entry,
establishment or spread of pests; or
(d) to prevent or limit other damage within the territory of a Party from the entry,
establishment or spread of pests.
Such measures shall include all relevant laws, decrees, regulations, requirements and
procedures including, inter alia, end product criteria; processes and production methods; testing and
inspection, certification and approval procedures;  quarantine treatments including relevant
requirements associated with the transport of animals or plants, or with the materials necessary forWT/REG77/1
Page 22
their survival during transport;  provisions on relevant statistical methods, sampling procedures and
methods of risk assessment; and packaging and labelling requirements directly related to food safety.
Harmonisation shall mean the establishment, recognition and application of equivalent
sanitary and phytosanitary measures and technical regulations by the Parties.
Technical regulation shall mean a document which lays down product characteristics or their
related processes and production methods, including the applicable administrative provisions, with
which compliance is mandatory.  It may also include or deal exclusively with terminology, symbols,
packaging, marking or labelling requirements as they apply to a product, process or production
method.
Standard shall  mean a document approved by a recognised standardisation body, that
provides, for common  and repeated use, rules, guidelines or characteristics for products or related
processes and production methods with which compliance is not mandatory.  It may also include or
deal exclusively with terminology, symbols, pack aging, marking or labelling requirements as they
apply to a product, process or production method.
Conformity assessment procedure shall mean any procedure used, directly or indirectly, to
determine that relevant requirements in technical regulations or standards are fulfilled.
Article 4
Exceptions
The provisions of  this Agreement shall not preclude prohibitions or restrictions on  imports,
exports or goods in transit justified on grounds of legitimate objectives such as national securityrequirements, the prevention of deceptive practices; the protection of human health or safety, animal
or plant life, or health or the environment.  Such prohibitions or restrictions shall not, however,
constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article  5
Abolition of non-tariff barriers
1. All existing non-tariff barriers to trade which are not consistent with the provisions of this
Agreement, and are in force between the Parties, shall be abolished upon the entry into force of this
Agreement.
2. No new non-tariff barriers to trade which are inconsistent with the provisions of this
Agreement  shall be introduced by the Parties from  the date of entry into force of this Agreement.
Article 6
Application of national regulation and basis for mutual recognition
1. Once goods have been lawfully produced and marketed in one Party in accordance with
International and European standards and European Community regulations, the sale of such products
may not be subject to legal prohibition in another Party and these goods shall be admitted into theother Party without restriction, except in cases described in Article 4 of this Agreement.
2. In case national regulations applied by one of the Parties find more restrictive requirements
than those defined by International and European standards and European Community regulations,WT/REG77/1
Page 23
obstacles to free movement of goods which  are  the  consequence  of  applying,  to  goods originating
in another Party where they are lawfully manufactured and marketed, rules that lay down
requirements to be met by such goods (relating to designation, form, size, weight, composition,
presentation, labelling, packaging etc.) constitute non-tariff barriers prohibited by the present
Agreement.
3. In the absence of harmonisation of legislation with International and European standards and
European Community regulations or in a case of more restrictive national requirements, equivalence
of different requirements for goods shall be established by the agreed procedure between the Parties.
Approval of equivalence shall be the responsibility of the Joint Committee.
4. Parties shall recognise suppliers' declarations of conformity, approvals of  testing and
certification bodies issued and operating according to the relevant European and International
standards issued by relevant European and International standard bodies.
5. Parties shall recognise National Accreditation systems operating according to the European
standards of series EN  45000 in the other Parties.
CHAPTER II
Sanitary and Phytosanitary Measures
Article 7
General principles
This Agreement applies to all sanitary and phytosanitary measures which directly or
indirectly, affect trade between the Parties.  Such measures shall be developed and applied in
accordance with the provisions of this Agreement.
Article 8
Basic rights and obligations
The Parties  have  the right to take sanitary and phytosanitary measures necessary for the
protection of human, animal or plant life or health, provided that such measures are not inconsistent
with the provisions of this Agreement.
The Parties shall ensure that any sanitary or phytosanitary measure is applied only to the
extent necessary to protect human, animal or plant life or health, is based on scientific principles and
is not maintained without sufficient scientific  evid ence,  except  as  provided  for  in paragraph 7
Article 11.
The Parties shall ensure that their sanitary and phytosanitary measures do not  arbitrarily or
unjustifiably discriminate between the Parties where identical or similar conditions prevail, including
between their own territory and  that of the other Parties.  Sanitary and phytosanitary measures shall
not be applied in a manner which would constitute a disguised restriction on international trade.WT/REG77/1
Page 24
Article 9
Harmonisation
1. To harmonise sanitary and phytosanitary measures on as wide a basis as possible, the Parties
shall base their sanitary or phytosanitary measures on international standards, guidelines and
recommendations developed by  the relevant international organisations, including the Codex
Alimentarius Commission, the International Office of Epizootic, the relevant international and
regional organisations operating within the framework of the International Plant  Protection
Convention and European Community regulations, guidelines or recommendations, European
standards where they exist, except as otherwise provided for in this Agreement, and in particular in
paragraph 3 of this Article.
2. Sanitary or phytosanitary measures which conform to international standards, guidelines or
recommendations developed by the relevant international organisations, including the Codex
Alimentarius Commission, the International Office of Epizootic, the relevant international and
regional organisations operating within the framework of the International Plant ProtectionConvention, European Community regulations shall be deemed to be necessary to protect human,
animal or plant life or health, and presumed to be consistent with the relevant provisions of this
Agreement.
3. The Parties may introduce or maintain sanitary or phytosanitary measures which result in a
higher level of sanitary or phytosanitary protection than would be achieved by measures based on the
relevant international standards, guidelines or recommendations developed by the relevant
international organisations, including the Codex Alimentarius Commission, the International Office of
Epizootic, the relevant international and  regional organisations operating within the framework of the
International Plant Protection Convention and European Community regulations, if there is ascientific justification, or as a consequence of the level of sanitary or phytosanitary protection a Party
determines to be appropriate in accordance with the relevant provisions of paragraphs 1 through 8 of
Article 11.  Notwithstanding the above, all measures which result in a level of sanitary or
phytosanitary protection different from that which would be achieved by measures based on
international standards, guidelines or recommendations developed by the relevant international
organisations, including the Codex Alimentarius Commission, the International Office of Epizootic,
the relevant international and regional organi sations operating within the framework of the
International Plant Protection Convention  and  European Community regulations shall not be
inconsistent with any other provision of this Agreement.
4. The Parties shall play a full part, within the limits of their resources, in the relevant
international organisations and their subsidiary bodies, in particular the Codex AlimentariusCommission, the International Office of  Epizootic, and the international and regional organisations
operating within the framework of the Internatio nal Plant Protection Convention, to promote within
these organisations the development and periodic review of standards, guidelines and
recommendations with respect to all aspects of sanitary and phytosanitary measures.
Article  10
Equivalence
1. The Parties shall accept the sanitary or phytosanitary measures of other Parties  as equivalent,
even if these measures differ from their own or from those used by other Parties trading in the same
product, if the exporting Party objectively demonstrates to the importing Party that its measures
achieve the importing Party's  appropriate level of sanitary or phytosanitary protection.  For thisWT/REG77/1
Page 25
purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing
and other relevant procedures.
2. The Parties shall, upon request, enter into consultations in the Joint Committee, with the aim
of achieving Agreement on recognition of the equivalence of specified sanitary or phytosanitarymeasures.
Article  11
Assessment of risk and determination of the appropriate level
of sanitary or phytosanitary protection
1. The Parties shall assure that their sanitary or phytosanitary measures are based on an
assessment, as appropriate to the circumstances, of the risks to human, animal or plant life or health,
taking into account risk assessment techniques developed by the relevant international organisations.
2. In the assessment of risks, the Parties shall take into account available scientific evidence;
relevant processes and production methods; re levant inspection, sampling and testing methods;
prevalence of specific diseases or pests; existence of pest-free or disease-free areas; relevant
ecological and environmental conditions; and quarantine or other treatment.
3. In assessing the risk to animal or plant life or health and determining the  measure to be
applied for achieving the appropriate level of sanitary or phytosanitary protection from such risk, the
Parties shall take into account as relevant economic factors: the potential damage in terms of loss of
production or sales in the event of the entry, establishment or spread of a pest or disease; the costs of
control or eradication in the territory of the importing Party; and the relative cost-effectiveness of
alternative approaches to limiting risks.
4. The Parties should, when determining the appropriate level of sanitary or phytosanitary
protection, take into account the objective of minimising negative trade effects.
5. With the objective of achieving consistency in the application of the concept of appropriate
level of sanitary or phytosanitary protection against risks to human life or health, or to animal and
plant life or health, each  Party shall avoid arbitrary or unjustifiable distinctions in the levels itconsiders to be appropriate in different situations, if such distinctions result in discrimination or
disguised restriction on intra-Baltic trade.
6. Without prejudice to paragraph 2, Article 9, when establishing or maintaining sanitary or
phytosanitary measures to achieve the appropriate level of sanitary or phytosanitary protection, theParties shall ensure that such  measures are not more trade-restrictive than required to achieve their
appropriate level of sanitary or phytosanitary protection, taking into account technical and economic
feasibility.
7. In cases where relevant scientific evidence is insufficient, a Party may provisionally adopt
sanitary or phytosanitary measures on the basis of available pertinent information, including that from
the relevant international organisations as  well as from sanitary or phytosanitary measures applied by
other Parties.  In such circumstances, the Partie s shall seek to obtain the additional information
necessary for a more objective assessment of risk and review the sanitary or phytosanitary measure
accordingly within a reasonable period of time.
8. When a Party has reason to believe that a specific sanitary or phytosanitary measure
introduced or maintained by another Party is constraining, or has the potential to constrain, its exports,
and the measure is not based on the relevant international standards, guidelines or recommendations,WT/REG77/1
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or such standards, guidelines or recommendations do not exist, an explanation of the reasons for such
sanitary or phytosanitary measure may be requested and shall be provided by the Party maintaining
the measure.
Article 12
Transparency and notification procedures on sanitary and phytosanitary measures
1. The Parties shall notify changes in their sanitary or phytosanitary measures at least 1 (one)
month before their introduction and shall provide information on their sanitary or phytosanitary
measures in accordance with the provisions of this Article.
2. The Parties shall ensure that all sanitary and phytosanitary regulations which have been
adopted are published promptly in such a manner as to enable interested Parties to become acquainted
with them.
3. Except in urgent circumstances, the Parties shall allow a reasonable interval between the
publication of a sanitary or phytosanitary regulation and its  entry into force in order to allow time for
producers in exporting Parties to adapt their products and methods of production to the requirements
of the importing Party.
4. Each Party shall ensure that one Enquiry Point exists which is responsible for the provision of
answers to all reasonable questions from interested Parties as well as for the provision of relevant
documents regarding:
4.1. any sanitary or phytosanitary regulations adopted or proposed within its territory;
4.2. any control and inspection procedures, production and quarantine treatment, pesticide
tolerance and food additive approval procedures operated within its territory;
4.3. risk assessment procedures, factors taken into consideration, as well as the
determination of the appropriate level of sanitary or phytosanitary protection;
4.4. the location of the Enquiry Points.
5. Parties shall take such reasonable measures as may be available to them to ensure that where
copies of documents are requested by other Parties, or by interested Parties in other Parties in
accordance with the provisions of this Agreement, they  are supplied at the same price (if any) as to the
nationals of the Party concerned.
6. Whenever an international standard, guideline or recommendation does not exist or the
content of a proposed sanitary or phytosanitary regulation is not  substantially the same as the content
of an international standard, guideline or recommendation, and if the regulation may have a
significant effect on trade of other Parties, the Parties shall:
6.1. publish a notice at an early stage, at least 2 (two) month before the foreseen adoption
of such regulation in such a manner as to enable interested Parties to become
acquainted with the proposal to introduce a particular regulation;
6.2. notify other Parties, through the Enquiry Points, of the products to be covered by the
regulation together with a brief indication of the objective and  rationale of the
proposed regulation. Such notifications shall take place at an early stage, when
amendments can still be introduced and comments taken into account;WT/REG77/1
Page 27
6.3. provide upon request to other Parties copies of the proposed regulation and, whenever
possible, identify the parts which in substance deviate from international standards,
guidelines or recommendations;
6.4. without discrimination, allow reasonable time for other Parties to make comments in
writing, discuss these comments upon request, and take the comments and the results
of the discussions into account.
6.5. in case the results of the discussions are not taken into account, other Parties may
appeal to the Joint Committee.
7. However, where urgent problems of health protection arise or threaten to arise for a Party,
that Party may omit the steps enumerated in paragraph 5 of this Article as it finds necessary, provided
that the Party:
7.1. immediately notifies other Parties, through the Enquiry Points, of the particular
regulation and the products covered, with a brief indication of the  objective and therationale of the regulation, including the nature of the urgent problem(s);
7.2. provides, upon request, copies of the regulation to other Parties;7.3. allows other Parties to make comments in writing, discusses these comments upon
request, and takes the comments and  the results of the discussions into account.
8. Notifications to the Enquiry Points shall be in English according to the Notification forms
provided for the Agreement on Sanitary and Phyt osanitary Measures of World Trade Organisation.
CHAPTER III
Technical barriers to trade
Article 13
General provisions
1. General terms for standardisation and certification shall normally have the meaning given to
them by definitions adopted within the United Nations system and by international standardising
bodies taking into account their context and in the light of the object and purpose of this Agreement.
2. All references in this Agreement to technical regulations, standards, methods for assuring
conformity with technical regulations or standards and certification systems shall be construed to
include any amendments thereto and any additions to the rules or the product coverage thereof, except
amendments and additions of an insignificant nature.
Article 14
Technical regulations and standards
1. Parties shall ensure that technical regulations and standards are not prepared, adopted or
applied with a view to creating obstacles to trade.   Furthermore, products imported from the territory
of any Party shall be accorded treatment no less favourable than that accorded to like products ofWT/REG77/1
Page 28
national origin and to like products originating in any other Party in relation to such technical
regulations or standards.
2. Where technical regulations or standards are required and relevant international standards
exist or their completion is imminent, the Parties shall use them, or the relevant parts of them, as abasis for the technical regulations or standards except where, as duly explained upon request, such
international standards or relevant parts are inappropriate for the Parties concerned, for inter alia such
reasons as national security requirements; the prevention of deceptive practices; protection for human
health or safety, animal or plant life or health, or the environment; fundamental climatic or other
geographical factors; fundamental technological problems.
3. Wherever appropriate, the Parties shall specify technical regulations and standards in terms of
performance rather than design or descriptive characteristics.
4. The Parties shall ensure that national standardisation bodies accept and comply with the Code
of Good Practice for the Preparation, Adoption and Ap plication of Standards in accordance with the
World Trade Organisation Agreement on Technical Barriers to Trade.
5. The Parties  shall notify changes in their technical regulations and standards at  least 1 (one)
month before their introduction and shall provide information on their technical regulations and
standards in accordance with the provisions of this Article.
6. Whenever a relevant international standard does not exist or the technical content of a
proposed technical regulation is not in accordance with the technical content of relevant international
standards, and if the technical regulation may have a significant effect on trade of other Parties,
Parties shall:
6.1. publish a notice at an early appropriate stage, at least 2 (two) month before the
adoption of such regulations that they propose to introduce a particular technical
regulation; it shall be published in such manner as to enable interested Parties in other
Parties to become acquainted with it;
6.2. notify other Parties through the Enquiry Points of the products to be covered by the
proposed technical regulation, together with a brief indication of  its objective andrationale.  Such notifications shall take place at an early appropriate stage, when
amendments can still be introduced and comments taken into account;
6.3. upon request, provide to other Parties particulars or copies of the proposed technical
regulation  and, whenever possible, identify the parts which in substance deviate fromrelevant international standards;
6.4. without discrimination, allow reasonable time for other Parties to make comments in
writing, discuss these comments upon request, and take these written comments and
the results of these discussions into account.
6.5. in  case the results of the discussions are not taken into account, other Parties may
appeal to the Joint Committee.
Article 15
Conformity with technical regulations and standardsWT/REG77/1
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1. In order to facilitate the determination of conformity with technical regulations and standards
where such positive assurance is required, the Parties shall ensure, whenever possible that their central
government bodies and authorised inspection institutions in harmonised or equivalent areas:
1.1. accept  test results, certificates or marks of conformity issued by relevant bodies in
the territories of other Parties; or rely upon suppliers' declaration of conformity in the
territories of other Parties;
1.2. accept test results even when the test methods differ from their own, provided they
are satisfied that the methods employed in the territory of the exporting Party provide
a sufficient means of determining conformity with the relevant technical regulations
or standards. It is recognised that prior consultations may be necessary in order toarrive at a mutually satisfactory understanding regarding suppliers' declaration of
conformity, test methods and results, and certificates or marks of conformity
employed in the territory of the exporting Party, in particular in the case of perishable
products or of other products which are liable to deteriorate in transit.
2. The Parties shall ensure that, in case where a positive assurance is required by the State that
imported products conform with technical regulations  or standards, central government bodies and
authorised inspection institutions apply the followi ng provisions to products originating in the
territories of other Parties:
2.1. imported products shall be accepted for testing under conditions no less favourable
than those accorded to like domestic or imported products in a comparable situation;
2.2. the test methods and administrative procedures for imported products shall be no
more complex and no less expeditious than the corresponding methods andprocedures, in a comparable situation for like products of national origin or
originating in any other country;
2.3. any fees imposed for testing imported products shall be equitable in relation to any
fees chargeable for testing like products of national origin or originating in any other
country;
2.4. the results of tests shall be made available to the exporter or importer or their agents,
if requested, so that corrective action may be taken if necessary;
2.5. the siting of testing facilities and the selection of samples for testing shall not be such
as to cause unnecessary inconvenience for importers, exporters or their agents;
2.6. the confidentiality of information about imported products arising from or supplied in
connection with such tests shall be respected in the same way as for domestic
products.
3. Nothing in this Article shall prevent the Parties from carrying out reasonable spot checks
within their territories.
Article 16
Conformity assessment procedures
1. Parties shall ensure that conformity assessment procedures are not formulated or applied with
a view to creating obstacles to international trade.  They shall likewise ensure that neither suchWT/REG77/1
Page 30
conformity assessment procedures themselves, nor their application, have the effect of creating
unnecessary obstacles to international trade.
2. The Parties shall ensure that conformity assessment procedure are formulated and applied so
as to grant access for suppliers of like products originating in the territories of other Parties underconditions no less favourable than those accorded to suppliers of like products of national origin or
originating in any other country.  The Parties shall make reference to the provisions of Article 6
paragraph 1.
3. Parties  shall,  from  the  date  of  entry into force of the present Agreement:
3.1. publish a notice at an early appropriate stage, that they propose to introduce a
conformity assessment procedure; it shall be published in such a manner as to enable
interested Parties to become acquainted with it;
3.2. notify the Enquiry Points of the products to be covered by the proposed conformity
assessment procedure together with a brief description of the objective of theproposed conformity assessment procedure;
3.3. upon  request  provide, without discrimination, to other Parties particulars or copies
of the proposed rules of the conformity assessment procedure;
3.4. allow, without discrimination, reasonable time for other Parties to make comments in
writing on the formulation and operation of the conformity assessment procedure,
discuss the comments upon request and take them into account.
4. However, where urgent problems of safety, health, environmental protection or national
security arise or threaten to arise for a Party, that Party may omit such of the steps enumerated in
paragraph 3 as it finds necessary provided that the Party, upon adoption of the conformity assessment
procedure, shall:
4.1. notify immediately the other Parties through the Enquiry Points of the particular
conformity assessment  procedure and the products covered, with a  brief  indication
of the objective and the rationale of the conformity assessment including the nature ofthe urgent problem(s);
4.2. upon request provide, without discrimination, other Parties with copies of the rules of
the conformity assessment procedure;
4.3. allow, without discrimination, other Parties to present their comments in writing,
discuss these comments upon request and take the written comments and results of
any such discussion into account.
5. The Parties shall ensure that all adopted rules of conformity assessment procedure are
published.
Article 17
International and regional systems
1. Where a positive assurance, other than by the supplier, of conformity with a technical
regulation or standard is required, the Parties shall, wherever practicable, formulate and adopt
international systems for conformity assessment and become members thereof or participate therein.WT/REG77/1
Page 31
2. Parties shall take such reasonable measures as may be available to them to ensure that
international and regional systems for conformity assessment in which relevant bodies within their
territories are members or participants comply with the provisions of Article 16, with the exception of
paragraph 2 having regard to the provisions of this Article , paragraph 3.  In addition, the Parties shall
not take any measures which have the effect of, directly or indirectly, requiring or encouraging suchsystems to act in a manner inconsistent with any of the provisions of Article 16.
3. Parties shall take such reasonable measures as may be available to them to ensure that
international and regional conformity assessment systems, in which relevant bodies within their
territories are members or participants, are formulated and applied so as to grant access for suppliers
of like products originating in the territories of other Parties, under conditions no less favourable than
those accorded to suppliers of like products originating in a member country, a participant country orin any other country, including the determination that  such suppliers are able and willing to fulfil the
requirements of the system.  Access for suppliers is obtaining certification from an importing Party
which is a member of or participant in the system, or from a body authorised by the system to grant
conformity assessment, under the rules of the system.  Access for suppliers also includes receiving the
mark of the system, if any, under conditions no less favourable than those  accorded  to  suppliers  oflike  products originating in a member country or a participant country.
4. Parties shall ensure that their central government bodies rely on international or regional
conformity assessment systems only to the extent that the systems comply with the provisions of
Article 16 and this Article, paragraph 3.
Article 18
Information and assistance on technical regulations, standards and
conformity assessment procedures
1. Each Party shall ensure that an Enquiry Point exists.  The Parties shall notify by diplomatic
channels institutions responsible for notifications of technical barriers to trade and sanitary and
phytosanitary measures.
2. An Enquiry Point shall be able to answer all reasonable enquiries from interested Parties in
other Parties regarding:
2.1. any technical regulations adopted or proposed within its territory;2.2. any standards adopted or proposed within its territory;
2.3. any conformity assessment procedures, or proposed conformity assessment
procedures, which are operated within its territory;
2.4. the location of notices published pursuant to this Agreement, or the provision of
information as to where such information can be obtained;
2.5. the location of the Enquiry Point(s) mentioned in this Article, paragraph 3.2.6. lists of the products subject to mandatory conformity assessment;
2.7. list of national accreditation institutions;
2.8. lists of the accredited testing laboratories, certification institutions and inspections;WT/REG77/1
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2.9. lists of enterprises whose quality systems have been certified;
2.10. information on accreditation bodies in the Parties;2.11. information  on  corresponding  surveillance  institutions  in the Parties.
3. Notifications to the Enquiry Points shall be in English according to the Notification forms
provided for the Agreement on Technical Barriers to Trade of the World Trade Organisation.
4. The Enquiry Points shall promptly circulate copies of the notification to all Parties.5. Parties shall take such reasonable measures as may be available to them to ensure that where
copies of documents are requested by other Parties, or by interested Parties in other Parties in
accordance with the provisions of this Agreement, they  are supplied at the same price (if any) as to the
nationals of the Party concerned.
6. Parties recognise the desirability of developing centralised information systems with respect
to the preparation, adoption and application of all technical regulations, standards and conformity
assessment procedures within their territories.
CHAPTER  IV
Institutional and Final Provisions
Article 19
Institutions
1. The Joint Committee is hereby established and shall consist of representatives appointed by
the Governments of the Republic of Latvia, the Republic of Estonia and the Republic of Lithuania.
2. The implementation of this Agreement shall be supervised and administrated by the Joint
Committee.
3. For the purpose of proper implementation of this Agreement, the Parties shall exchange
information and, upon request of any Party, shall hold consultations within the Joint Committee.  The
Joint 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 20
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.WT/REG77/1
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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/her term of office.
5. The Joint Committee may decide to set up such subcommittees and working groups as it
considers necessary to assist it in accomplishing its tasks.
6. The Joint Committee of this Agreement will inform the Joint Committee of the Agreements
after the fulfilment of procedures established  in paragraphs 2 and 3.
Article 21
Dispute settlement
1. The Parties shall take all necessary measures to ensure the implementation of the provisions
of this Agreement and the fulfilment of the Obligations of this Agreement.
2. If one Party considers that another Party has failed to fulfil any of the obligations arising from
this Agreement, the Party concerned may submit th e dispute for consultations in the Joint Committee
under the conditions and according to the provisions of Article 20 of this Agreement.
3. If the Joint Committee is unable to reach common consent on the dispute it shall present
relevant information to the Joint Committee of the Agreements, to decide on retaliatory measuresaccording to the provisions of the Agreements.
Article 22
Final provisions
The Government of the Republic of Latvia shall act as the Depository for this Agreement.
Article 23
Entry into force
The Parties shall notify the Depository in writing when the constitutional requirements
necessary to give effect to this Agreement in their respective states have been complied with.
This Agreement shall enter into force on the first day of the second month after the last
notifications have been received from all Parties.
Article 24
Validity and termination
1. This Agreement is concluded for an unlimited period of time.WT/REG77/1
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2. Any Party may renounce this Agreement by means of a written notification to the Depository.
This Agreement shall cease to be in force six months after the date on which the Depository has
informed all Parties about the receipt of such notification.
IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorised thereto,
have signed this Agreement.
Done at this 20th day of November one thousand nine hundred and ninety seven, in one
original, in the Estonian, Latvian, Lithuanian and the English languages.  In a case of differing
interpretations, the English text shall prevail.
For the Republic of Latvia
For the Republic of EstoniaFor the Republic of LithuaniaWT/REG77/1
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Memorandum of Understanding
on the
AGREEMENT ON THE ABOLITION OF NON-TARIFF BARRIERS TO TRADE
BETWEEN THE REPUBLIC OF ESTONIA, THE REPUBLIC OF LATVIA
AND THE REPUBLIC OF LITHUANIA
For the purpose of proper and effective implementation of the Agreement the Parties agreed
the following explanatory notes:
1. Article 20, paragraph 6 has the meaning that the Joint Committee of the present Agreement in
written form will inform institutions of the Parties responsible for administration of the
Joint Committee of the Agreements on implementation of the present Agreement.
2. Article 21, paragraph 3  "retaliatory  measures" may consist of all measures according to the
Article 26 of the Free Trade Agreement between the Republic of Estonia, the Republic of Latvia and
the Republic of Lithuania signed on 13 September 1993 and to the Article 21 of the Free Trade
Agreement between the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania on
Trade in Agricultural Products signed on 16 June, 1996.
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