Under WTO rules, Hungary will phase out quotas on textiles and apparel by 2004. As a result of the WTO Agricultural Agreement, quotas on agricultural products and processed foods have been progressive replaced by tariff-rate quotas. In 1997, Hungary eliminated an import surcharge imposed as part of the March 1995 austerity package. This permit may be replaced by other national certification and testing agency documents, such as those of the National Institute for Drugs. Foreign investment is allowed in every sector open to private investment.
Foreign ownership is restricted to varying degrees in civil aviation, defense, and broadcasting.
Only Hungarian citizens may own farmland. Bids containing more than 50 percent Hungarian content receive a 10 percent price preference. This process does not apply to military purchases affecting national security, or to gas, oil, and electricity contracts. Hungary is not a party to the WTO Government Procurement Code, and some U.S. firms have taken legal action against non-transparency and procedural irregularities in government tenders. There are no direct export subsidies on industrial products, but some agricultural products receive export subsidies from the state.