WORLD TRADE WT/REG44/1
24September 1997
ORGANIZATION(97-3961)
Original: English Committee onRegional Trade Agreements
FREE TRADE AGREEMENT BETWEEN ROMANIA
AND THE REPUBLIC OFMOLDOVA
Thefollowing textreproduces theAgreement between Romania andtheRepublic ofMoldova.
_______________
PREAMBLE
Romania andtheRepublic ofMoldova, hereinafter called theparties,
Recalling theirintention toparticipate actively intheprocess ofeconomic integration inEurope,
Considering theimportance ofthetraditional, historical andspiritual linksexisting between
Romania andtheRepublic ofMoldova andthecommon values theyshare, andrecognizing thatRomania
andtheRepublic ofMoldova wishtostrengthen theselinksandtoestablish closeandlasting cooperation
andeconomic integration relations,
Reaffirming theircommitment topluralistic democracy based ontheruleoflaw,ofhuman
rights andfundamental human freedoms,
Firmly convinced thatthisAgreement willpromote theincreasing ofbilateral mutually
advantageous tradeexchanges, willfoster tothecreation ofenlarged free-trade area,thusconstituting
animportant contribution totheEuropean integration process,
Resolved tothisendtoeliminate progressively theobstacles intheirbilateral trade, inaccordance
withtheGeneral Agreement onTariffs andTrade (GATT),
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theStates
Parties tothisAgreement from theirobligations under other international agreements,
Have decided :
Article 1
Objectives
1. Romania andtheRepublic ofMoldova shallestablish afree-trade area, inaccordance with
theprovisions ofthepresent Agreement.WT/REG44/1
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2. Theobjectives ofthisAgreement are:
(a) topromote, through theexpansion ofmutual trade, theharmonious development of
theeconomicrelationsbetweenRomaniaandtheRepublicofMoldova,theimprovement
ofliving andemployment standards, increasing ofproductivity andfinancial stability;
(b) toprovide fairconditions ofcompetition fortrade between theStates Parties tothis
Agreement;
(c) tocontribute inthisway, bytheremoval ofbarriers totrade, totheharmonious
development andexpansion ofworld trade.
Article 2
Scope
TheAgreement shallapply toproducts originating intheStates Parties tothisAgreement.
Article 3
Customs duties onimports andcharges having equivalent effect
1. Nonewcustoms dutyonexports orcharge having equivalent effect shallbeintroduced intrade
between Romania andtheRepublic ofMoldova.
2. Upon thedateofentry intoforce ofthisAgreement, Romania andtheRepublic ofMoldova
shallabolish allcustoms duties onimports forproducts originating inRomania, andrespectively, in
theRepublic ofMoldova.
3. Onthesamedate,Romaniaappliesanimportchargeof0.5percentadvaloremtoallitsimports,
andtheRepublic ofMoldova animport charge of0.25percent.
Article 4
Customs duties ofafiscal nature
Theprovisions ofArticle 3shallalsoapply tocustoms duties ofafiscal nature.
Article 5
Customs duties onexports andcharges having equivalent effect
1. Nonewcustoms dutyonexports orcharge having equivalent effect shallbeintroduced intrade
between Parties.
2. Onthedateofentry intoforce oftheAgreement, Romania applies anexport charge of
0.5percentadvalorem toallitsexports, andtheRepublic ofMoldova anexport charge of
0.25percent.WT/REG44/1
Page3
Article 6
Quantitative restrictions onimports andmeasures having equivalent effect
Noquantitative restrictions onimports andmeasures having equivalent effect shallbeintroduced
intrade between theParties.
Article 7
Quantitative restrictions onexports andmeasures having equivalent effect
1. Noquantitative restriction onexports ormeasures having equivalent effect shallbeintroduced
intrade between theParties.
2. Quantitative restrictions andmeasures having equivalent effect shallbeabolished onthedate
ofentry intoforce oftheAgreement, except those provided forinAnnex I,forRomania and,those
provided forinAnnex II,fortheRepublic ofMoldova.
Article 8
Information procedure ondrafttechnical regulations
TheParties tothisAgreement shallnotify eachother, attheearliest practicable stage, thedraft
technical regulations anddraftamendments thereto which theyintend toissue.
Article 9
Rules oforigin andco-operation incustoms administration
1. Protocol Alaysdown therules oforigin andmethods ofadministrative co-operation.
2. TheParties tothisAgreement shalltakeappropriate measures, including regular reviews by
theJoint Committee andarrangements foradministrative co-operation, toensure thattheprovisions
oftheProtocol AandoftheAgreement areeffectively andharmoniously applied.
Article 10
Internal taxation
1. TheParties tothisAgreement shallrefrain fromanymeasure orpractice ofaninternal fiscal
nature establishing, whether directly orindirect, discrimination between theproducts originating in
theStates Parties.WT/REG44/1
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2. Products exported totheterritory ofoneoftheStates Parties tothisAgreement maynotbenefit
fromrepayment ofinternal taxation inexcess oftheamount ofdirect orindirect taxation imposed on
them.
Article 11
Sanitary andphyto-sanitary measures
TheParties shall apply their veterinary, phyto-sanitary andsanitary measures inanon-
discriminatory manner andnonewmeasure having trade restrictive effect willbeintroduced.
Article 12
General exceptions
1. ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified ongrounds ofpublic morality, public policy orpublic security; theprotection or
health ofhumans, animals orplants andtheenvironment; theprotection ofnational treasures possessing
artistic, historical orarchaeological value; theprotection ofintellectual property; rules relating to
goldorsilver; ortheconservation ofexhaustible natural resources, ifsuchmeasures areeffectively
applied inrelation withdomestic consumption orproduction restrictions.
2. Suchprohibitionsorrestrictionsshallnot,however,constituteameansofarbitrarydiscrimination
oradisguised restriction ontrade between theParties tothisAgreement.
Article 13
Security exceptions
1 NothinginthisAgreementshallpreventaStatePartytothisAgreementfromtakinganymeasures
which itconsiders necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;
(b) fortheprotection ofitsessential security interests orfortheimplementation of
international obligations ornational policies;
(c) relating tothetraffic inarms, ammunition andimplements ofwar,provided thatsuch
measures donotimpair theconditions ofcompetition inrespect ofproducts notintended
forspecifically military purposes, andtosuchtraffic inother goods, materials and
services asiscarried ondirectly orindirectly forthepurpose ofsupplying amilitary
establishment;
(d) relating tothenon-proliferation ofbiological andchemical weapons, nuclear weapons
orother nuclear explosive devices; or
(e) taken intimeofwarorother serious international tension constituting threat ofwar.WT/REG44/1
Page5
Article 14
State monopolies
TheStates Parties tothisAgreement shallensure thatanystatemonopoly ofacommercial
character beadjusted, sothattheobjectives oftheAgreement arenottobeaffected. Attheendof
thefifthyearuponentry intoforce oftheAgreement, therewillbenodiscrimination ontheconditions
under which goods areprocured orsoldbetween thenationals ofthetwoParties tothisAgreement.
TheJoint Committee willexamine thenecessary measures tofulfil thisobjective.
Article 15
Payments
1. Payments infreecurrency relating totradebetween theParties andthetransfer ofsuchpayments
totheterritory oftheState Party tothisAgreement, where thecreditor resides, shallbefreefrom
anyrestrictions.
2. ThePartiesshallrefrainfromanyexchangeoradministrativerestrictionsonthegrant,repayment
oracceptance ofshort ormedium termcredits covering commercial transactions inwhich aresident
participates.
3. Until afullconvertibility ofthecurrency inthemeaning ofArticle VIIIoftheArticles of
Agreement oftheInternational Monetary Fund isintroduced, theParties reserve theright toapply
exchange restrictions connected tothegranting ortacking upofshortandmedium termcredits, provided
thatthese restrictions areapplied inanon-discriminatory manner. They shallbeapplied insucha
manner astocause theleastpossible disruption tothisAgreement. TheParties shallpromptly inform
theJoint Committee ontheintroduction ofsuchmeasures andonanychanges therein.
Article 16
Rules ofcompetition between theundertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofar asthey
affect trade between theParties:
(a) allagreements between theundertakings, decisions byassociations ofundertakings
andconcerted practices between theundertakings which haveastheirobjective oreffect
theprevention, restriction ordistortion ofcompetition;
(b) abuse byoneormore economic undertakings ofadominant position intheterritories
oftheStates Parties tothisAgreement asawhole orinasubstantial partthereof.
2. IfaState Party tothisAgreement considers thatagiven practice isincompatible withthe
provisions ofparagraph 1andifsuchpractice causes orthreatens tocause serious prejudice tothe
interest ofthatStateParty ormaterial injury toitsdomestic industry, itmaytakeappropriate measures,
uponconsultation within theJointCommittee or30daysafterarequest forsuchconsultations ismade.WT/REG44/1
Page6
Article 17
State aid
1. Anyaidgranted byaState Party tothisAgreement orthrough State resources inanyform
whatsoever, distorting orthreatening todistort competition byfavouring certain undertakings orthe
production ofcertain goods shallbeincompatible withtheproper functioning ofthisAgreement, insofar
asitmayaffect trade between theParties.
2. TheJoint Committee shall setoutthebasic criteria toverify anypractices contrary to
paragraph 1,andtherules oftheirapplication.
3. TheParties shallensure transparency ofstateaidmeasures; theywillsubmit eachyearareport
totheJointCommittee onthewhole volume ofthestateaidanditsdistribution andwillprovide, on
theother Party'srequest, information ontheaidschemes inspecific cases.
4. IfaState Party tothisAgreement considers thatagiven practice isincompatible withthe
provisions ofparagraph 1,itmaytakeappropriate measures against thispractice, which shallnotbe
inexcess oftheinjury caused, under theconditions andinaccordance withtheprocedures laiddown
inArticle 25.
Article 18
Public procurement
1. TheParties consider theliberalization oftheirrespective public procurement markets asan
objective ofthisAgreement.
2. TheParties shallprogressively develop therulesgoverning thepublic procurement, inorder
toensure mutual access tocontract award procedures, based onauctions ontheirrespective public
procurement markets.
3. TheJoint Committee shallexamine thedevelopment ofregulations inthisfield, inorder to
fulfil theobjective ofthisArticle, andmayrecommend specific modalities tofulfil itsprovisions.
Article 19
Protection ofintellectual property
1. TheStates Parties tothisAgreement shall grant andensure adequate, effective andnon-
discriminatory protection ofintellectual property rights, including measures fortheenforcement of
suchrights against infringement, counterfeiting andpiracy.
2. Forthepurposes ofthisAgreement, theprotection ofintellectual property rights includes mainly
theprotection ofcopyright, computer programs, databases andrelated rights, trademarks, geographical
indications, industrial projects, patents, integrated circuits anddrawings, aswellasunpublished know-
howinformation.WT/REG44/1
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3. TheParties shallco-operate inintellectual property rights protection matters and,attherequest
oftheother Party, consultations atexpert levelregarding these problems shallbeheld, mainly inareas
dealing with theexisting andfuture international treaties onharmonization, administration and
enforcement ofintellectual property rights andinternational specialized organizations 'activities.
Article 20
Dumping
IfoneoftheParties tothisAgreement findsthatdumping istaking place initstrade, theState
Party concerned maytakeappropriate measures against thispractice under theconditions andin
accordance withtheprocedure laiddown inArticle 25.
Article 21
General safeguard actions
Where aproduct isbeing imported insuchincreased quantities andunder suchconditions as
tocause, orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products inthe
territory oftheimporting state, or
(b) serious disturbance inanysector oftheeconomy ordifficulties which could bring about
serious deterioration intheeconomic situation ofaregion,
theconcerned StateParty maytakeappropriate measures under theconditions andinaccordance with
theprocedures laiddown inArticle 25.
Article 22
Structural adjustment
1. Exceptional measures ofalimited duration which derogate from theprovisions ofArticle 3,
maybetaken intheform ofcustoms duties.
2. These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce important social problems.
3. Theinterested Party shallinform theJointCommittee ofanyexceptional measures itintends
totakeand,attherequest oftheother Party, consultations shallbeheldwithin theJointCommittee
regarding suchmeasures andthesectors towhich theyapply, evenbefore theyareputintoforce.
When taking suchmeasures, theParty concerned shallprovide theJointCommittee withaschedule
fortheelimination ofthecustoms duties introduced under thisArticle.WT/REG44/1
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Article 23
Re-export andserious shortage
Where thecompliance withtheprovisions ofthisAgreement leads to:
(a) re-export towards athird country against which theexporting State Party tothis
Agreement maintains forthatproduct quantitative export restrictions, export duties
ormeasures orcharges having equivalent effect; or
(b) aserious shortage, orthreat thereof, ofaproduct essential totheexporting StateParty
tothisAgreement;
andwhere thesituation referred toabove gives riseorislikely togiverisetomajor difficulties for
theexporting State Party, thatParty maytakeappropriate measures under theconditions andin
accordance withtheprocedures laiddown inArticle 25.
Article 24
Fulfilment ofobligations
1. TheStates Parties tothisAgreement shalltakeallnecessary measures toensure thefulfilment
oftheirobligations under theAgreement.
2. IfoneState Party considers thattheother Party hasfailed tofulfil anobligation under this
Agreement, theState Party concerned maytaketheappropriate measures under theconditions and
inaccordance withtheprocedures laiddown inArticle 25.
Article 25
Procedure fortheapplication ofsafeguard measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthepresent Article, theStates Parties tothisAgreement shallendeavour tosolve any
differences between them through direct consultations.
2. Without prejudice toparagraph 6ofthepresent Article, aStateParty tothisAgreement, which
considers resorting tosafeguard measures, shallpromptly notify theother State Party andsupply all
relevant information. Consultations between theState Parties shalltakeplace without delay witha
viewtofinding amutually acceptable solution.
3. (a) Asregards Article 17,theStates Parties shallgivetheJointCommittee alltheassistance
required inorder toexamine thecase. IftheState Party failstoputanendtothe
practice objected to,within theperiod fixed bytheJoint Committee, oriftheJoint
Committee failstoreach anagreement afterconsultations, orafter30daysfollowing
thereferral forsuchconsultations, theStateParty concerned mayadopt theappropriate
measures todealwiththedifficulties resulting from thepractice inquestion.WT/REG44/1
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(b) Asregards Articles 20,21and22,theJointCommittee shallexamine thecaseorthe
situation andmaytakeanydecision needed toputanendtothedifficulties notified
bytheStateParty concerned. Intheabsence ofsuchadecision within 30daysofthe
matter being referred totheJoint Committee, theState Party concerned mayadopt
themeasures necessary inorder toremedy thesituation.
(c) Asregards Article 24,theStateParty concerned shallsupply theJointCommittee with
allrelevant information required forathorough examination ofthesituation witha
viewtoseeking amutually acceptable solution. IftheJointCommittee failstoreach
suchasolution orifaperiod of30dayshaselapsed fromthedateofnotification, the
State Party concerned maytakeappropriate measures.
4. Thesafeguard measures taken shallbenotified immediately totheotherParty tothisAgreement
andtotheJointCommittee. They willberestricted withregard totheirextent andtotheirduration
towhatisstrictly necessary inorder torectify thesituation giving risetotheirapplication andshall
notbeinexcess oftheinjury caused bythepractice orthedifficulty inquestion. Priority shallbe
given tosuchmeasures aswillleastdisturb thefunctioning oftheAgreement.
5. Thesafeguard measures taken shall betheobject ofregular consultation within theJoint
Committee withaviewtotheirrelaxation, substitution orabolition, assoonapossible.
6. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theStateParty concerned may,inthecases ofArticles 20,21and22apply forthwith theprecautionary
andprovisional measures strictly necessary toremedy therespective situation.
Themeasures shallbenotified without delay andconsultations between theStates Parties to
thisAgreement shalltakeplace assoonaspossible within theJoint Committee.
Article 26
Balance-of-payments difficulties
1. WhereaPartyofthisAgreementisinseriousbalance-of-paymentsdifficulties,orunderimminent
threat thereof, theParty concerned mayadopt, inaccordance withtheconditions established inthis
Agreement, traderestrictive measures, which shallbeoflimited duration andmaynotgobeyond what
isnecessary toremedy thebalance-of-payments situation.
Themeasures shallbeprogressively relaxed asbalance-of-payments conditions improve and
theyshallbeeliminated when conditions nolonger justify theirmaintenance. TheStateParty concerned
shallinform theotherStateParty tothisAgreement andtheJointCommittee forthwith theirintroduction
and,whenever practicable, ofatimeschedule fortheirremoval.
2. TheStatePartiestothisAgreementshallendeavourtoavoidtheimpositionofrestrictivemeasures
based onbalance-of-payments difficulties.WT/REG44/1
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Article 27
Evolutionary clause
1. Where aState Party tothisAgreement considers that,intheinterest oftheireconomies, it
would beuseful todevelop anddeepen therelations established bytheAgreement, byextending them
tofields notcovered thereby, itshall submit areasoned request totheother State Party tothis
Agreement. TheStates Parties mayinstruct theJointCommittee toexamine theirrequest and,where
appropriate, tomake recommendations tothem, particularly withaviewtoopening negotiations.
2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
orapproval bytheStates Parties tothisAgreement, inaccordance withtheirownprocedures.
Article 28
TheJoint Committee
1. TheParties agree toestablish aJoint Committee composed oftheirrepresentatives.
2. Theimplementation ofthisAgreement shall besupervised andadministrated bytheJoint
Committee.
3. ForthepurposeoftheproperimplementationoftheAgreement,theStatesPartiesshallexchange
information and,attherequest ofanyStateParty, shallholdconsultations within theJointCommittee.
TheJointCommittee shallkeepunder review thepossibility offurther removal oftheobstacles totrade
between theParties.
4. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theJoint Committee maytakerecommendations.
Article 29
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butatleastonceayear. Each State Party tothisAgreement mayrequest thatameeting
beheld.
2. TheJoint Committee shallactbycommon agreement.
3. Forthepurpose ofthisAgreement theJoint Committee shalladopt itsrules ofprocedure.
4. TheJoint Committee maydecide tosetupsuchsub-committees andworking parties asit
considers necessary toassist itinaccomplishing itstasks.WT/REG44/1
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Article 30
Trade relations governed byother Agreements
1. ThisAgreement applies totrade relations between Romania andtheRepublic ofMoldova.
2. ThisAgreementshallnotpreventthemaintenanceorestablishmentofcustomsunions,free-trade
areas, economic unions orarrangements forfrontier trade.
Article 31
Annexes andProtocols
TheAnnexes andtheProtocols tothisAgreement formanentire partofit.TheJointCommittee
maydecide tomodify theAnnexes andProtocols ofthisAgreement, inaccordance withtheprovisions
ofArticle 29.
Article 32
Territorial application
ThisAgreement shallapply totheterritories ofRomania andtheRepublic ofMoldova.
Article 33
Amendments
Amendments tothisAgreement other thanthose referred toinArticle 31,which areapproved
bytheJointCommittee, shallbesubmitted totheStateParties foracceptance andshallenterintoforce
atthedateofcommunication oftheiracceptance.
Article 34
Withdrawal andexpiration
EachStateParty tothisAgreement maywithdraw therefrom bymeans ofawritten notification
totheother Party totheAgreement.
Thewithdrawal shalltakeeffect sixmonths afterthedateonwhich thenotification isreceived.
Article 35
Entry intoforce
ThisAgreement shallenterintoforce atthedateofthelastnotification through which theother
Party notifies itsratification.WT/REG44/1
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TheParties willdotheirutmost inorder tofulfiltheratification procedures, within amaximum
ofsixmonths from thedateofsignature ofthepresent Agreement.
Article 36
Depositary
Done atBucharest, this15thdayofFebruary 1994, intwoauthentic copies intheRomanian
language, bothcopies being equally valid.