 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/EST/7 
18 March 1999 
 (99-1103) 
Working Party on the 
Accession of Estonia  
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF ESTONIA 
TO THE WORLD TRADE ORGANIZATION  
Introduction  
1. In March 1994, the Government of Estonia requested accession to the General Agreement on 
Tariffs and Trade (GATT 1947).  At its meeting on 23-24 March 1994, the GATT Council of 
Representatives established a Working Party to examine the application of the Government of Estonia to accede to the General Agreement under Article XXXIII, and to submit to the Council recommendations 
which may include a draft Protocol of Accession.  Membership of the Working Party was open to all 
contracting parties indicating the wish to serve on it.  In pursuance of the Ministerial Decision of 
14 April 1994 on Acceptance of and Accession to the Marrakesh Agreement Establishing the World Trade Organization (WTO) and to the decision of 31 May 1994 of the Preparatory Committee for the 
WTO, the Working Party examined the application of Estonia for membership in the WTO and agreed to pursue the market access negotiations for goods, including an agricultural country schedule, and for 
services.  The WTO Agreement entered into force on 1 January 1995.  In pursuance of the decision adopted by the WTO General Council on 31 January 1995, the GATT 1947 Accession Working Party 
was transformed into a WTO Accession Working Party.  The terms of reference and the membership of the Working Party are reproduced in document WT/ACC/EST/7/Rev.1. 
2. The Working Party met on 25 November 1994;  6-7 June and 14 November 1995;  28 March and 
18 September 1996;  11 February 1997 and [24 March 1999] under the Chairmanship of 
H.E. Mr. D. Kenyon (Australia).  
Documentation
 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Estonia (L/7423) and the questions submitted by Members on the foreign trade 
regime of Estonia, together with the replies thereto, and other information provided by the Estonian authorities (L/7529 and Addenda 1 and 2, WT/ACC/EST/2, WT/ACC/EST/4,  WT/ACC/EST/9 and WT/ACC/SPEC/EST/7 
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 Corrigendum 1, WT/ACC/EST/11, WT/ACC/EST/12 and WT/ACC/SPEC/EST/3).  The Government of 
Estonia made available to the Working Party the following documentation: 
- Law of the Central Bank of the Republic of Estonia of 31 May 1993; 
- Law on Amending the Law of the Central Bank of the Republic of Estonia of 20 April 1994; - The Law of the Republic of Estonia on Foreign Investments of 11 September 1991; - Restrictions on Transfer of Immovable Property Ownership to Aliens, Foreign States and  Legal 
 Persons Act of 29 May 1996;  
- Law on Bankruptcy of the Republic of Estonia of 10 June 1992; - Statutes of the Estonian Foreign Investment Agency (9 May 1994); 
- Law on Privatization of 7 July 1993; 
- Privatization in Estonia (summary); 
- Competition Act of 11 March 1998; - Law on Foreign Relations of 16 November 1993; 
- Law on the State Border of 30 June 1994; - Public Service Act of 25 January 1995; 
- Law on State Budget (amended version of 20 April 1994); - Law on Municipal and Town Budget of 28 June 1993; 
- Law on Correlation between Municipal and Town Budgets and the State Budget (amended  version of 2 February 1994); 
- Commercial Code, consolidated on 12 June 1996; 
- The Customs Act of 17 December 1997, consolidated on 13 May 1998; - The Customs Tariff Act of 14 October 1997; 
- Law on Taxation of 29 December 1993; 
- Law on Amending the Law on Taxation of 30 March 1994; 
- Income Tax Law of 21 December 1993; - Law on Land Tax of 12 May 1993; 
- Law on Local Taxes of 10 October 1994; - Law on Motor Vehicle Excise Tax of 8 February 1995; 
- Law on Alcohol Excise Tax (with 1994 amendments); - Law on Amending the Law on Alcohol Excise Tax; 
- Alcohol Excise Duty Act of 8 November 1995, consolidated on 15 April 1997; - Law on Tobacco Excise Tax (new version of 13 July 1994); 
- Tobacco Excise Duty Act of 29 June 1994, consolidated on 22 October 1997;  WT/ACC/SPEC/EST/7 
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 - Law on Revenue Stamps of 28 March 1994; 
- Packaging Excise Duty Act of 19 December 1996; 
- Law on Value Added Tax (amended version of 30 June 1994); - The Food Law of 9 February 1995; 
- Resolution No. 249 of 5 November 1998 – Approval of the Order for Issuing State Licence for 
Importing Foodstuffs into Estonia; 
- Law on Customs Valuation of 8 February 1995; 
- Rules of Origin in Free-Trade Agreements with the European Union, the Ukraine and the  - Rules of Origin in Free-Trade Agreements with EFTA countries (Norway and Switzerland); - Law on Export and Transit of Strategic Goods of 21 April 1994; 
- Memorandum on the Export Control System in Estonia; - Information on the Estonian Innovation Foundation; 
- Medicinal Products Act, consolidated on 15 October 1996; 
- Draft Law on Standardization; 
- Draft Technical Regulations and Standards Act of the Republic of Estonia; 
- Information on standardization in Estonia (July 1998); - Harmonization of the TBT Notification Requirements in Estonia; 
- Estonian legislation on sanitary and phytosanitary measures (October 1998); - Animal Protection Act of 17 December 1992, consolidated on 22 February 1998; 
- Farm Animal Breeding Act of 25 June 1995, consolidated on 9 December 1997; - Plant Protection Act No. 332 of 1 January 1999; 
- Legislation and draft legislation in the field of veterinary measures (April 1997); - Veterinary conditions for importing goods into Estonia (April 1997); 
- Regulations for the import of plants and part of plants to Estonia (April 1997); - Law of the Republic of Estonia on Veterinary Services of 1 January 1993; 
- Draft Veterinary Services Act; 
- The Order of Registration for Veterinary Medicines of 15 September 1994; 
- Law on Public Procurement of 1 January 1996; 
- Public Procurement Amendment Act of 1 January 1997; 
- Grains Act of 8 June 1994, as amended; 
- A comparison of the old and new version of the Food Act, concerning food control in Estonia; 
- Fertilizers Act of 1 July 1998; - Organic Agriculture Act of 17 July 1997; WT/ACC/SPEC/EST/7 
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 - Legislation on the Agreement on Trade-Related Aspects of Intellectual Property Rights; 
- Copyright Law of 23 November 1992; 
- Trade Marks Act of 27 August 1992, consolidated on 17 December 1997; - Packaging Act of 3 May 1995, consolidated on 30 June 1997; 
- Patent Law of 30 March 1994; - Industrial Design Protection Act of 18 November 1997; 
- Utility Model Law of 30 March 1994; 
- Plant Variety Rights Act of 1 July 1998; - Copyright Act, Code of Administrative Offences , Criminal Code, Consumer Protection Act and 
Customs Act Amendment Act; 
- Explanatory Note to the Act Amending the Copyright Act, Code of Administrative Offences, Criminal Code, Consumer Protection Act and Customs Act; 
- Law on Securities Market of 14 June 1993; 
- Insurance Law of 18 November 1992; 
- Law of Property Act, consolidated on 8 October 1996; 
- Trilateral Free-Trade Agreement with Latvia and Lithuania; - Economic bulletins. 
Introductory Statements
 
4. The representative of Estonia noted that Estonia had been an observer to the GATT 1947 since 
June 1992 and had accordingly witnessed the successful conclusion of the Uruguay Round and looked forward to its implementation.  Estonia had adopted new laws and regulations forming a solid legislative 
foundation.  Moreover, Estonia's economy, which encouraged competition and an entrepreneurial spirit 
through a liberal trade regime for agricultural and industrial products and openness regarding foreign 
investment and foreign exchange, was expanding steadily.  Estonia's free and open market had been underpinned by bilaterally binding and mutually beneficial market opening commitments in trade 
agreements covering more than two thirds of Estonia's trade.  Bilateral free trade agreements had been 
concluded with Latvia, Lithuania, EFTA States, Ukraine, Czech Republic, Slovak Republic, the European 
Union, Faroe Islands, Slovenia, Turkey, Poland and Hungary, and Estonia had trade agreements based on 
the GATT 1947 principles with several other countries.  Having followed the code of conduct laid down 
by GATT 1947 principles, full membership in the GATT 1947 and upon its entry into force in the 
Marrakesh Agreement Establishing the World Trade Or ganization - was the one important missing aspect 
in Estonia's trade policy.  Estonia intended to join the multilateral trading system embodied in the  WT/ACC/SPEC/EST/7 
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 WTO Agreement as a developed country, fully aware of, and ready to assume, all the obligations and 
responsibilities this entailed.  T he representative of Estonia looked forward to the beginning of an active 
negotiating process which should be concluded by Estonia's accession to the WTO in the very near future. 
5. Members of the Working Party welcomed Estonia's initial application for accession to the 
General Agreement and, upon conclusion of the Uruguay Round, to the WTO.  The rise in exports and 
foreign direct investment were indicative of the rela tive success of Estonia's liberal economic policies.  
Membership in the WTO would offer Estonia the opportunity to consolidate its small, open economy 
within a multilateral framework and to develop and increase trade exchanges with WTO Members 
worldwide.  The liberal, open market principles cu rrently being implemented by Estonia would also 
facilitate its assumption of obligations and commitments arising from the Uruguay Round.  Several members accordingly expressed the expectation that the establishment of market access conditions for 
goods and services would proceed in an expeditious manner and looked forward to the successful and 
timely conclusion of the tasks of the Working Party. 
6. The Working Party reviewed the economic policies and foreign trade regime of Estonia and the 
possible terms of a draft Protocol of Accession to the WTO.  The views expressed in the course of the 
deliberations of the Working Party are summarized below in paragraphs 7-141. 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
7. Questions by some members of the Working Party focused on the tax components of government 
revenue and the scope for raising revenue from taxes on trade in Estonia in the light of important free 
trade agreements which covered a large share of Estonia's foreign trade. 
8. In response, the representative of Estonia recalled that as a way to improve the competitiveness of 
domestic industries at the present time Estonia did not apply import or export duties.  The main sources of 
government revenue in 1997 were the Value Added Tax (47.9 per cent), income taxes (25.4 per cent), and excise taxes (17.2 per cent). WT/ACC/SPEC/EST/7 
Page 6   
 Foreign Exchange and Payments
 
9. Some members of the Working Party requested up-to-date information on Estonia's foreign 
exchange regime, i.e. the determination of the exchange rate, convertibility, availability of foreign 
exchange for trade and payments purposes, and the retention of foreign currency. 
10. The representative of Estonia confirmed that Estonia, as a member of the International Monetary 
Fund, followed internationally accepted monetary rules. Since June 1992, the Estonian Kroon had been 
pegged against the Deutsche mark at the official rate  of 8 kroon to 1 DM, with a technical fluctuation 
limit of 3 per cent.  The fixed exchange rate was enshrined in the Law on the Security of the Estonian Kroon;  a devaluation required approval by Parliament.  He also said that the Bank of Estonia guaranteed 
free exchange within Estonia of the Kroon at the official rate according to current needs of customers for 
convertible currencies.  Non-convertible currencies were obtained at commercial banks.  The last 
restrictions on current account transactions had been lifted in March 1994, when Estonia accepted the obligations under Article VIII of the Articles of Agreement of the International Monetary Fund.  Capital 
account transactions were unrestricted, but exports of cash and securities were subject to a customs 
declaration. 
Investment Regime
 
11. Some members of the Working Party sought information on Estonia's strategies in attracting 
foreign investment and in the application of any rest rictions or conditions attached to foreign investment 
and to land ownership.  The representative of Estonia replied that no specific promotion programmes 
were envisaged;  foreign investments were encouraged through an open, non-restrictive regime.  The 
Tallinn Stock Exchange had been established on 31 May 1996.  The Government had established a Foreign Investment Agency in 1994, providing various services to foreign investors.  The Agency had 
been restructured in 1997, and was now operating under the Estonian Trade and Investment Board.  
Estonia had concluded bilateral agreements on investment promotion and protection with the following 
countries: Austria, Belgo-Luxembourg Economic Un ion, China, Czech Republic, Denmark, Finland, 
France, Germany, Greece, Israel, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Spain, Sweden, 
Switzerland, Turkey, Ukraine, United Kingdom, and the United States.  He added that the procedures for registration of companies in Estonia distinguished  between domestic and foreign investment in only six 
areas namely, mining;  power engineering, gas and water supply;  administration of waterways, ports, dams and similar structures;  railways and air transport;  telecommunication and communication network;   WT/ACC/SPEC/EST/7 
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 and retail trade in medicines;  where foreign investors would need a "Foreign Investment Licence" from 
the Ministry of Finance while a "Licence of Activity" was required for domestic investors.  The Foreign 
Investment Licence and the Licence of Activity carried the same rights, the procedural difference being the issuing authority.  The criteria for determining whether or not to grant these two types of licence were 
identical.  He confirmed that the differentiation between foreign and domestic investment in the communications and telecommunications sector was of technical nature and did not affect negatively the 
market access and national treatment commitments made in Estonia's GATS schedule. 
12. The representative of Estonia added that when State enterprises were sold against privatization 
vouchers majority stakes were offered to "core" in vestors, i.e. majority shareholders (domestic or 
foreign), who were selected by an open bid.  In purchasing State-owned enterprises investors (domestic or foreign) might undertake specific commitments with regard to the amount of capital to be invested and 
minimum workforce ("performance guarantee").  The Estonian Privatization Agency checked the 
compliance with agreed conditions.  The performance guarantee did not extend to local content or export requirements. 
13. Regarding purchase of land, the representative of Estonia said that foreign commercial 
undertakings would need permission from local authorities, and permits would only be granted when the branch of a foreign commercial undertaking had been entered in Estonia's Commercial Register.  
Non-residents were not allowed to purchase land in border areas and on Estonia's islands, except on the 
four largest islands (Saaremaa, Hiiumaa, Vormsi and Mu hu).  In these areas the purchase of land required 
special permission of the Government.  Non-reside nts would be permitted to buy land provided the 
purchase was not in conflict with the interests of the State, local governments or national security. 
14. Concerning taxation of foreign investment the repr esentative of Estonia said that the Income Tax 
Law allowed losses to be carried forward up to five years.  The Income Tax Law applied to income earned in and outside Estonia by residents, and income derived from Estonian sources by non-residents.  
Revenue could be repatriated freely. 
15. The representative of Estonia confirmed that Esto nia applied national treatment with respect to 
direct taxation and Estonia would continue to apply the national treatment principle in the case of 
amendments to the tax regime in the future.  He further confirmed that Estonia did not use national 
taxation for export promotion or performance.  The Working Party took note of this commitment. WT/ACC/SPEC/EST/7 
Page 8   
 State Ownership and Privatization
 
16. Some members of the Working Party requested details concerning progress in Estonia's 
privatization programme and plans to retain State ownership in enterprises or sectors.  Further questions 
addressed relations between the State and company management, the application of competition 
legislation to State-owned enterprises, bankruptcy or enterprise dissolution provisions in Estonian 
legislation and general or exclusive funds available for State-owned enterprises.  A member requested a 
detailed report on firms remaining in Government hands, the nature of goods they consumed, exported or distributed; and a report on plans, as appropriate, to complete the privatization process.  To ensure full 
transparency, Estonia should keep WTO Members informed about progress in privatization, and provide periodic reports on developments in privatization and economic reform issues as relevant to its obligations under the WTO. 
17. The representative of Estonia said that an enterprise was considered privatized when the majority 
share holding was in private ownership (i.e. not including assets held by the Estonian Privatization 
Agency).  According to this definition all agricultural enterprises had been privatized by January 1995, and more than 90 per cent of all industrial enterprises by August 1996.  Companies had been sold in 
16 tender rounds with successful bidders offering guarantees with regard to investment and employment.  The public offering of shares had begun in mid-1994;  in a public offer the majority stake was sold to a 
local or foreign "core" investor.  The Estonian Privatization Agency became the temporary owner of the 
shares in the interim period needed for selection of "core" investors or sale of minority stakes.
 
18. The representative of Estonia provided informat ion on progress in privatization of State 
enterprises, summarized in Table 1.  Privatization was entering its final stage, involving privatization of 
major infrastructure services such as communications, transportation and energy supply.  These enterprises would be privatized in accordance with a program established through Government Order 
No. 155-k of 20 February 1996. The Government had confirmed a final list of companies to be privatized.  In all, 18 enterprises were sold in 1997.  However, the main task in 1997 was to prepare the privatization 
of Eesti Energia , Eesti Põlevkivi , the operational parts of Estonian Railways and the privatization of land.  
Eesti Energia  and Eesti Põlevkivi  were complex privatization projects which were unlikely to be 
completed before 2000.  Estonia also intended to privatize the Port of Tallinn and Estonian Telecom.  
Estonia provided a summary of privatization in Estonia (1993-1998), circulated in document 
WT/ACC/EST/25.  According to the most recent data available (1998, third Quarter), Estonia had 160 
state enterprises employing 37,954 persons.  The Estonian Privatization Agency (EPA) became the holder  WT/ACC/SPEC/EST/7 
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 of the shares of a firm upon the inclusion of the firm  in the list of companies to be privatized.  The EPA 
did not hold shares in infrastructure companies.  The Privatization Agency kept the shares until 
privatization contracts had been signed;  the time period for this varied case-by-case, on average lasting from one to six months.  At present, the EPA held shares in 4 companies (31.9 per cent of the shares of 
Eesti Buss , 35 per cent of Meie Meel , 30.4 per cent of Valga Autoveod , and 100 per cent of Kunda 
Tehased ) to the total value of approximately EEK 1 millio n.  According to the privatization program, the 
companies to be privatized in 1999 were Liviko , Narva Elektrivõrk , Edelaraudtee , Eesti Raudtee , Moe 
Piiritustehas , Eesti Gaas  (State share 11.38 per cent), Tarmeko  (State share 33.4 per cent), and Eesti 
Merelaevandus  (State share 30 per cent).  The output (net sales) of State-owned firms in per cent of GDP 
had declined from nearly 60 per cent of GDP in 1994 to just over 20 per cent in 1997.  Further details are 
provided in Table 1. 
Table 1:  Information on Progress in Privatization of State Enterprises
 
(a) Data on enterprises sold and revenue raised  
Year 1993 1994 1995 1996 1997 
Number of enterprises sold through: 
- privatization contracts 54 215 142 43 18 
- open bids 252 126 120 84 64 
- public sales of shares 0 1 16 16 6 
Revenue raised from:  (EEK million) 
- privatization contracts 353.2 1,330.4 919.1 474.5 1,295.4 
- liabilities accepted by the buyers 195.6 700.2 617.9 230.3 416.3 
- investment guarantees 236.8 858.5 1,002.9 453.6 1,714.9 
- total obligations accepted by new 
 owners 922.0 3,272.7 2,799.1 1,177.5  - 
- open bids 122.8 68.2 79.8 148.7 160.6 
- public sale of shares  99.9 604.5 662.1 944.5 
Privatization contracts:   
- number of jobs under employment 
 guarantees  
9,099.0  
25,573.0  
17,279.0  
1,274.0  
2,929.0 
  
 WT/ACC/SPEC/EST/7 
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(b) Economic Indicators of Enterprises in 1997  
 
Economic sector Total net sales 
(EEK million) Net sales of 
State 
enterprises 
(EEK 
million) Net sales of 
State 
enterprises in 
per cent of 
total net sales Total 
exports 
(EEK 
million) Exports of 
State 
enterprises 
(EEK million) Exports of 
State 
enterprises in 
per cent of 
total exports Net sales of 
State 
enterprises in 
per cent of 
GDP 
Agriculture, hunting and forestry 5,021.375 43.547 0.02 1,304.891 0.118 0.0003 0.07 
Construction 12,805.869 34.948 0.02 960.200 11.066 0.003 0.05 
Education, health and social work, and other community, social and personal service activities 2,957.871 389.630 0.22 160.065 7.157 0.02  
Electricity, steam, gas and water 
supply 7,765.850 3,764.637 2.08 419.692 398.774 0.97 5.78 
Financial intermediates 1,616.040 -- -- 54.070 -- -- -- 
Fishing 783.755 -- -- 264.773 -- -- -- 
Hotels and restaurants 2,091.068 69.316 0.04 162.557 1.752 0.004 0.1 
Manufacturing 40,420.902 840.759 0.46 17,256.623 92.476 0.22 1.29 
Mining 2,521.490 2,181.817 1.21 145.056 0.112 0.0003 3.35 
Real estate, renting and business 
activities 8,622.751 525.070 0.29 586.366 6.726 0.02 0.8 
Transport, storage and 
communication 20,583.161 4,780.199 2.65 12,305.940 1,537.964 3.74 7.34 
Wholesale and retail trade; repair of 
motor vehicles, motorcycles and personal and household goods 75,428.046 859.573 0.47 7,494.341 423.975 1.03 1.32 
Total 180,618.178 13,489.496 7.46 41,114.574 2,480.120 6.03 20.73 
  WT/ACC/SPEC/EST/7 
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 (c) Economic Indicators of Enterprises 1994-1997  
 1994 1995 1996 1997 
Total number of enterprises 28,113 23,858 24,609 27,627 
Number of state enterprises 805 496 303 206 
Percentage of State enterprises in 
total number of enterprises 2.86 2.07 1.23 0.74 
Total output of enterprises  
(net sales in EEK million)  76,443.030 114,124.372 135,932.342 180,618.178 
Output of state enterprises  
(net sales in EEK million) 17,527.179 16,805.778 14,233.674 13,489.496 
Output of State enterprises in per 
cent of total output (net sales)  22.92 14.72 10.47 7.46 
GDP in current prices (EEK million) 29, 644.700 40,705.100 52, 445.900 65,079.900 
Output (net sales) of State enterprises 
in per cent of GDP 59.1 41.2 27.1 20.7 
19. The representative of Estonia said that some privatization tenders had only been published in 
Estonia, but foreign investment had only been re stricted in the case of  enterprises processing 
agricultural commodities or offering services to farmers.  These companies were now owned by 
farmers' co-operative societies. 
20. In response to questions concerning the appoint ment and dismissal of the management of 
State-owned enterprises, the represen tative of Estonia said  that both the Minister  of Finance and the 
Minister in charge of the Ministry managing the State-owned shares of a company had the right to appoint the members (State representatives) of th e administrative council or board of a State-owned 
enterprise or joint stock company.  The management was appointed by the board according to the 
company's by-law.  The administrative council or board could dismiss the general director of the 
enterprise;  council or board members were released  by the Government or the appointing Ministry.  
The provisions of the Law on Competition, including its sanctions, applied equally to private and State-owned enterprises.  Since 1 September 1995, the Civil Code and the Commercial Code 
contained procedures for the liquidati on of enterprises.  The representative of Estonia confirmed that 
State-owned enterprises acted on a purely commer cial basis and were required to make their 
purchases and sales solely in accord ance with commercial considerations, and the purchases and sales 
of State firms, either for their own use or for use in the production process, were not considered 
government procurement.  The representative of Es tonia further confirmed that their directors and 
administrative council or board were not gove rnment employees, even though they could be 
dismissed or released by the Government or the appointing Ministry.  The State-owned enterprises 
could not be considered to be in State trading acti vities because they did not enjoy any exclusive or 
special privileges and were not subject to any control by the Government, nor to Government WT/ACC/SPEC/EST/7 
Page 12  
 
 directives in relation to their operations in the sense of Article XVII of GATT 1994 (see also 
paragraph 102 in the section "State-trading").  Th eir operations were not funded by the State budget, 
and the Government had no right to intervene in  the daily operations of these enterprises.  
State-owned and private enterprises had equal ac cess to Government funds, i.e. the Export Credit 
Fund, the Fund of Credit to Agriculture and Rural Life, the Fund of Credit to Small Enterprises and the Innovation Fund. 
21. The representative of Estonia confirmed the readin ess of Estonia to ensure  the transparency of 
its ongoing privatization programme and to keep WTO Members informed of its progress in the reform of its transforming economic and trade regime .  He stated that his Government would provide 
annual reports to WTO Members on developments in  its programme of privatization as long as the 
privatization programme would be in existence along the lines of that provided to the Working Party.  
He also stated that his Government would prov ide annual reports on other issues related to its 
economic reforms as relevant to its obligations under the WTO until 31 December 2003. The Working Party took note of these commitments. 
Pricing Policies
 
22. Some members of the Working Party request ed information on the process of price 
liberalization in Estonia and the extent of any re maining controls on prices for goods and services.  
Estonia was requested to provide a description of existing price controls;  list the affected products by HS tariff line with reference to the legal provisions  under which controls were applied;  provisions, if 
any, for border charges that would increase im port prices;  and the conditions under which the 
authority to control prices was to be exercised. 
23. The representative of Estonia confirmed that prices of all goods and services were determined 
freely by market forces except for oil-shale and electr icity.  The prices set for these items, valid as of 
18 November 1997 for electricity and as of 1 May 1997 for oil shale, are reproduced in the Annex 
(Tables 2 and 3).  He added that price controls on oil-shale and electricity were subject to gradual 
deregulation programs;  prices would approach world market levels with due regard to the balance 
between the required return on the i nvested capital and the interests of consumers.  He also noted that 
the present producers of energy, heating and oil-shale were not monopolies since there was no 
prohibition for anybody to start similar operations in  Estonia or offer a competitive solution for the 
entire Estonian energy system including price reform .  The legal basis for the price controls were the 
Price Law of 1989 and the Decree of the Ministry of Economic Affairs No. 7 of 15 May 1996.  Heating and local transport charges were regulat ed to some limited extent at the level of  WT/ACC/SPEC/EST/7 
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 municipalities.  The representative of Estonia confir med that price controls on oil-shale and electricity 
were applied only to final products, not to the imports of Eesti Energia  and Eesti Põlevkivi . 
24. The representative of Estonia said that Estoni a could not foresee any further conditions for the 
application of any price controls, including those for imports, except for those in place for electricity 
and oil-shale.  These incumbent pr ice controls covered only domestic  transactions via the facilities of 
Eesti Energia  and Eesti Põlevkivi .  The representative of Estonia confirmed that prices for goods and 
services in every sector of Estonia were determined freely by mark et forces with the exception of 
those listed in Tables 2 and 3 attached to this report. 
25. The representative of Estonia confirmed that prices for goods and services other than for oil-
shale and electricity would not be subject to State control.  He confirmed that Estonia would apply 
such controls, from the date of accession without re course to a transition period, in a WTO-consistent 
fashion, and would take account of the interests of exporting WTO Members as provided for in 
Article III.9 of the GATT 1994.  Estonia would publish any list of goods and services subject to State price controls in the Official Journal " Riigi Teataja"  (State Gazette), including any changes regarding 
existing price controls on oil-shale and electricity.  The Working Party took note of these 
commitments.   
Competition Policy
 
26. Some members of the Working Party requested a detailed description of Estonia's competition 
policy, including the provi sions in the Law on Competition whic h prohibits unfair trade practices and 
the authority of the Competition Board to permit agreements restricting competition. 
27. In response, the representative of Estonia sa id that a new Competition Act had entered into 
force on 1 October 1998.    The purpose of the Act was to safeguard free competition in the extraction of natural resources, manufacture of goods, prov ision of services, sale and purchase of services 
products, and to prevent and eliminate the restriction of competition in other economic activities 
based on the interests of free enterprise.  The Ac t could also be applied against anti-competitive 
practices taking place outside Estonia insofar as these pr actices  resulted in restrictions on competition 
within the territory of Estonia.  The Act prohibited agreements and concerted practices restricting competition and abuse of dominant position, a nd contained provisions regarding individual 
exemptions on restrictive agreements;  market domination;  undertaking with special or exclusive 
rights or natural monopoly;  State aid;  merger control;  unfair competition;  State supervision;  liability;  and implementing provisions.  Unfair trade practices were dealt with in a separate chapter and referred to the following types of activities:   WT/ACC/SPEC/EST/7 
Page 14  
 
  (i) publication of misleading information, or presentation or requests for publication of 
misleading information; 
 (ii) disparaging a competitor or his/her goods; 
 (iii) abuse of confid ential information; 
 (iv) abuse of an employee or represen tative of another enterprise;  and 
 (v) unfair restriction or promotion of the sale of goods. 
The Competition Board had been established in 1993 a nd currently employed some 38 officials.  The 
Competition Board supervised the implementation of the Competition Act except in respect of credit institutions, securities brokers and insurance compan ies.  State supervision of credit institutions, 
securities brokers and insurance comp anies was exercised by the Stat e supervision authorities in the 
relevant sector.  However, the Competition Board maintained the right to present recommendations 
and exercise control on mergers in all sectors.  The rights and obligations of the Competition Board 
under the Competition Act to supervise competiti on was also extended to the sectorial State 
supervision authorities. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
28. The representative of Estonia stated that, in ac cordance with the Constitu tion, the activities of 
the Riigikogu  (Parliament), the President of the Republic, the Government of the Republic, and the 
judiciary courts were based on the principle of sep aration and balance of powers.  Legislative power 
was vested in the Riigikogu and executive power in the Government of the Republic.  Justice was 
administered solely by the courts which acted i ndependently as provided in the Constitution and the 
laws.  The main government entities responsible fo r the formulation and implementation of policies 
affecting foreign trade were the Ministries of Economic Affairs;  Foreign Affairs;  Finance;  
Agriculture;  and Transport and Communications.  All local issues were resolved and managed by 
local governments  - municipalities and townships - operating autonomously.  The representative 
body of local government was the council, elected in free elections for a term of three years. 
29. Municipal and town councils had the right to impose local taxes according to the Law on 
Local Taxes.  Considered as local taxes were the poll tax, local income tax, sales tax, boat tax, motor vehicles tax, commercial and advertisement tax, tax on closing roads and streets, taxes for keeping 
pets and entertainment tax.  Sub-central Government s also had the right to provide "green box" and 
non-actionable subsidies from local budgetary revenues.   
30. The representative of Estonia stated that if Es tonian laws or other acts should be found to 
contradict international treaties ratified by the Riigikogu  (Parliament), the provisions of the  WT/ACC/SPEC/EST/7 
 Page 15 
 
 
 international treaty would apply.  The WTO Agreem ent would have the status of an international 
treaty.  The representative of Estonia confirmed th at sub-central entities ha d no autonomous authority 
over issues of subsidies, taxation, trade policy a nd any other measures covered by WTO provisions.  
He confirmed that the provisions of the WTO Ag reement, including Estonia's Protocol, shall be 
applied uniformly throughout its customs territory and other territories under its control, including in regions engaging in border trade or frontier traffi c, special economic zones, and other areas where 
special regimes for tariffs, taxes and regulations are established.  He added that when apprised of a 
situation where WTO provisions were not being a pplied or were applied in a non-uniform manner, 
central authorities would act to enforce WTO provisi ons without requiring affected parties to petition 
through the courts.  The Working Party took note of these commitments. 
POLICIES AFFECTING TRADE IN GOODS 
Trading Rights
 
31. The representative of Estonia said that fr om 1 September 1995, the Commercial Code had 
replaced the Enterprise Law.  The Commercial Code defined five types of business association 
(general partnership, limited partnership, limite d liability company, joint stock company and co-
operative association) and the individual private en trepreneur, and stipulated procedures for opening a 
foreign company's branch office in Estonia.  A firm obtained the relevant rights and obligations, becoming legally a subject of Estonian law, through registration in the Commercial Register.  An entry in the Commercial Register was made upon appl ication.  Registration was applied uniformly to 
all firms, including those which had applied for a Foreign Investment Licence, covering all types of 
business operations.  A trader subm itted the required documents and th e application, with notarized 
signatures, to the registrar.  An  enterprise wishing to perform business in an area which required a 
Licence of Activity would also n eed to obtain such a licence and subm it it to the registrar.  The 
Commercial Register was to be kept by local city co urts.  The registrar had no right to deny an entry if 
the applicant had submitted all necessary documen tation in compliance with the requirements. 
32. Enterprises set up under previous legislation, not meeting the requirements of the new Code, 
had to be restructured or terminated by 1 Septem ber 1997.  Stricter mandatory capital requirements 
would apply from 1 September 1999.  The Commercial Code did not contain any provision which was 
inconsistent with the national treatment principle;  all its provisions applied equally to domestic and 
foreign-owned companies. 
33. Some members of the Working Party noted that laws and regulations relating to the right to 
trade in goods (also sometimes referred to as "reg istration requirements" or "activity licensing") WT/ACC/SPEC/EST/7 
Page 16  
 
 should not restrict imports of goods in violation of  the general prohibition on quantitative restrictions 
in GATT Article XI:1, nor should they discriminate against imported goods in violation of the 
non-discrimination provisions of GATT Article III:4.  Furthermore, fees and charges levied on the 
right to import should be limited to the approximate  cost of services rendere d (Article VIII:1(a)) and 
taxes and charges on the right to trade in imported goods should not lead to discrimination in favour 
of like domestic products (Article III:2). 
34. The representative of Estonia confirmed that the former State monopoly in foreign trade had 
been abolished and that no restrictions existed on the right of foreign and domestic individuals and 
enterprises to import and export goods within Estoni a's customs territory, except as provided in WTO 
Agreements.  He confirmed that individuals and firm s were not restricted in their ability to import and 
export based on their registered scope of business,  and the criteria for enrolment in the Commercial 
Register of companies in Estonia were generall y regulated in the Commercial Code which was 
published in the Official Journal " Riigi Teataja"  (State Gazette).  There was no special system of 
registration of persons or firms to engage in im portation, except for those businesses covered by 
activity licences, in which case anybody fulfilling a set of objective criteria (e.g. relevant education, a 
place to carry out the activity, fulfilling the sanitar y requirements, clean tax record, etc.) could have 
such a licence.  There was no differentiation between foreign-owned and domestic firms for either the 
non-automatic or automatic (obligation to announce the beginning of the business activity) activity licences. 
35. The representative of Estonia stressed that general government policy was to maintain a 
liberal economic policy and to reduce the areas of activ ity subject to licensing.  He noted that Estonia 
considered the licensing arrangements to be consis tent with the WTO Import Licensing Agreement.  
In its submission, Estonia listed 43 economic activ ities in which operators needed a "Licence of 
Activity" for production and/or trade, valid for up to five years, and the corresponding regulatory 
authority (Table 4 which is reproduced in the Anne x).  Among the justifications listed were safety 
(e.g. medicaments);  a technological level adequate  to comply with compulsory standards (e.g. 
alcoholic beverages);  registration requirements to prevent threats to security and the environment (e.g. firearms and vehicles);  and registration and accounting requirements for tax purposes (alcoholic 
beverages, tobacco, metals, etc.).  The criteria for the issuing of licences were published in the 
Official Journal " Riigi Teataja " (State Gazette).  Any person or firm fulfilling a set of objective 
criteria (e.g. regarding relevant education, proper place of business, sanitary requirements, a clean tax 
record, etc.) could obtain a "Licence of Activity".  He confirmed that the number of licences was not 
restricted and that licences were granted to nati onal and foreign operators under equal conditions.  In 
each licensed sector identical criteria, objectively neutral and systematically administered, were  WT/ACC/SPEC/EST/7 
 Page 17 
 
 
 applied regarding importation, exportation and domestic  trade.  An expired licence could be renewed 
or replaced by a new valid licence.  The fees for issuing licences were no higher than necessary to 
cover the relevant costs.  In most cases the fee did not exceed EEK 2,000 while alcohol and tobacco 
licences cost EEK 15,000. 
36. The representative of Estonia confirmed that  Estonia undertook to observe the relevant WTO 
provisions, in particular the Agreement on Import Li censing Procedures, in different acts covering 
specific fields of activity.  Activity licences had so far been established under different regulations 
dealing separately with specific fields of activity. 
37. The representative of Estonia stated that the importation of products covered by activity 
licences were subject only to requirements consiste nt with the WTO Agreement.  He confirmed that 
no restrictions existed on the right of foreign and domestic individuals and enterprises to import and 
export goods within Estonia's customs territory, with the exception of those specifically listed in 
Table 4.  The activity licenses enumerated in Table 4 did not restrict foreign participation as they applied equally to foreign and domestic businesses.   Activity licences were administered for the 
purpose of ensuring product safety.  The criteria fo r granting activity licences differed according to 
the area of activity and had been published in the Official Journal " Riigi Teataja " (State Gazette).  
Upon request, the representative of Estonia would pr ovide a more detailed tabl e containing references 
to relevant Government Regulations.  The criter ia for engaging in import and export trade in the 
restricted sectors were consistent with generally applicable restrictions placed on trade in similar 
domestically produced goods and based on crit eria published in the Official Journal " Riigi Teataja " 
(State Gazette).  The availability of activity licences was not restrict ed nor was the licensing applied 
to restrict imports, the production, wholesale or retail trade in any product. 
38. The representative of Estonia c onfirmed that procedures to grant licences for importing food 
had been finalized, and the Government Resolution No. 249 on "the Order for Issuing State Licence 
for Importing Foodstuffs into Estonia" had entered into force on 1 December 1998.  In his view, the 
procedures were in full conformity with the pr ovisions of the WTO Agreement on Import Licensing 
Procedures, notably its Articles 2, 3 and 5. 
39. A member expressed concerns about the c onformity of this Resolution with WTO 
requirements.  The Resolution appeared to institute a system of discretionary, non-automatic licences 
approved by majority vote by a commission which included representatives of the domestic industry.  The Resolution also appeared to  omit a mechanism for appeal, required by the Import Licensing 
Agreement in the case of non-automatic licences.  Estonia was encouraged to amend its legislation to WT/ACC/SPEC/EST/7 
Page 18  
 
 establish an automatic licensing system for foodstu ff imports in conformity with Articles 1 and 2 of 
the WTO Agreement on Import Licensing Procedures. 
40. In reply, the representative of Estonia said that Resolution No. 249 had been amended on 
16 March 1999 to ensure compliance with WTO requirements.  Licences would be issued automatically within ten working days to importe rs submitting correct and complete applications.  
The representative of Estonia added that licences gr anted for importing food would not act to restrict 
the quantity of imports;  they would be granted automatically with the exception of conditions related 
to TBT and sanitary and phytosanitary requirements.  The composition of the licensing committee would be modified to ensure that the committee was formed exclusively of civil servants. 
41. The representative of Estonia confirmed that from  the date of accession Estonia would ensure 
that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied 
on such rights would be in full conformity with  its WTO obligations, including Articles VIII:1(a), 
XI:1 and III:2 and 4 of the GATT 1994 and that it w ould also implement such laws and regulations in 
full conformity with these obligations.  The Working Party took note of this commitment. 
1. Import Regulations
 
Customs Tariff  
42. The representative of Estonia presented an in itial offer for market access negotiations on 
goods in April 1995 and submitted a Revised Genera l Offer for Market Access Negotiations on Goods 
in August 1995.  A number of members entered into market access negotiations with Estonia.  The 
commitments agreed between Estonia and members of  the Working Party are annexed to the Protocol 
of Accession of Estonia which is reproduced in the Appendix to this Report. 
Customs Duties  
43. Noting that the current absence of a customs tariff demonstrated Estonia's free trade 
determination, some members of the Working Part y commended the successful and effective outcome 
of Estonia's free trade policies and hoped that Estonia would continue to pursue these same sound and 
progressive policies in the future. Some members also asked Estonia to provide details about the 
imposition of customs duties and the criteria for application of zero and non-zero rates.  A member expressed concern about Estonia's intentions in this  area and requested further clarification, noting 
that the Estonian authorities had drafted a Law on Customs Tariff although the draft law apparently 
had remained unadopted at that time.  This member requested that the draft law be provided to the  WT/ACC/SPEC/EST/7 
 Page 19 
 
 
 Working Party for review and comment, noting that progress on market access negotiations was 
contingent upon review of this document by members of the Working Party. 
44. The representative of Estonia said that Parlia ment had adopted the Law on Customs Tariff on 
14 October 1997, and it had been in force since 22 November 1997.  The Law on Customs Tariff, which was a framework law laying down the legal basis for the application of customs tariffs, included tariff ceiling rates for all commodities (at th e four-digit level of the Harmonized System), but 
actual application of customs duties had to be enacte d by a separate law.  Prior to the adoption of the 
Law, Estonia had imposed import duties on furs (16 per cent), sea scooters, small vessels and snow-scooters (10 per cent), and the exports of vint age cars presenting a cultural value (100 per cent) 
as provided for in Government Decree No. 200 of  10 July 1993.  In accordance with the Law on 
Customs Tariff, his Government had decided to abolish all cust oms tariffs in accordance with 
Government Decree No. 115 of 2 June 1998, effective as of that date, and there are no tariffs currently 
applied on imports into Estonia. 
45. The representative of Estonia reaffirmed the free trade orientation of  his country noting, 
however, that Estonia would reserve the right to  impose customs duties in the future, in full 
consistency with its concessions and commitments as a member of the WTO.  A ceiling tariff binding 
would offer Estonia the same regulatory opportunities in external trade as its main trading partners.  
When the Estonian Parliament ratifies Estonia's Protocol of Accession to the WTO, the commitments annexed thereto in its sche dule of concessions will prevail over th e tariff ceiling rates provided in the 
Law on Customs Tariff, the text of which has been provided to the Working Party. 
Other Duties and Charges
 
46. The representative of Estonia stated that Es tonia levied no duties and charges on imports 
other than ordinary customs duti es and charges for services rendered .  Any such charges applied to 
imports after accession would be in accordance with  WTO provisions.  He further confirmed that 
Estonia would not list any other charges in its G oods Market Access Schedule under Article II:1(b) of 
GATT 1994, binding such charges at "zero". 
Fees and Charges for Services Rendered  
47. Some members of the Working Party noted that Estonia had applied an ad valorem  tax to 
customs clearance operations and questioned whet her the revised fee was commensurate with the 
approximate costs of the services rendered as provi ded for in Article VIII of the GATT 1994.  Estonia 
was also asked to provide details on the exemptions from the fee.  WT/ACC/SPEC/EST/7 
Page 20  
 
 48. The representative of Estonia informed the Working Party that, as of 1 April 1995, a 
0.5 per cent customs procedure tax had been replaced  by a flat fee per customs declaration.  The 
representative of Estonia confirmed that a fixed fee of EEK 200 per import and export declaration was 
charged as a State fee for customs declaration and th at this was the only fee or charge for services 
rendered currently in force.  The fee was collected  by the National Customs Board as a procedure fee 
covering the cost of customs formalities.  He confirmed that the State fee for customs declaration was 
applied on a non-discriminatory basis to trade with all Estonia's trading partners. 
49. The representative of Estonia said  that the fee relate d only to the cost of  customs formalities, 
and represented some 1.14 per cent of all revenue co llected by Estonian Customs during 1997;  other 
revenue was derived from excise taxes (19.51 pe r cent), value added tax (79.22 per cent), customs 
duties (0.01 per cent) and other fees (0.12 per cent).  The fee was levied on imports from all trading 
partners, but not on transit trade or goods in customs warehouses, re-exports after customs 
warehousing, goods declared by phys ical persons, or preliminary decl arations.  Also exempt were 
goods for official use by foreign diplomatic represen tations, consular representations or international 
organizations;  printed matter and information carr iers addressed to libraries;  irrecoverable economic 
aid;  humanitarian aid received by the Estonian Red Cross;  containers, pallets or other kind of 
transferable containers and medical and laborator y equipment for emergency aid (exported with an 
obligation to re-import in unchanged state and impo rted with an obligation to re-export in unchanged 
state). 
50. The representative of Estonia confirmed that, fr om the date of accessi on, Estonia would not 
reintroduce an ad valorem  customs fee.  The State fee for customs declaration would be applied in 
conformity with WTO obligations,  in particular Articles VIII and X of the GATT 1994.  The level of 
the applied fee would not exceed the approximate cost of processing import and export declarations, revenues from the fee would be used solely for customs processing of imports and exports, and total 
annual revenue from collection of the fee would not exceed the approximate cost of customs 
processing operations for the items subject to the fees.  He confirme d that revenues from the State fee 
were not used for customs processing of imports ex empted from the fee.  Information regarding the 
application and level of the fee, revenues collected and their use, would be provided to WTO 
Members upon request.  The Working Party took note of these commitments. 
Application of internal taxes to imports
 
51. Some members of the Working Party noted that the excise taxes  for certain domestic and 
imported tobacco products and alcoholic beverages were different.  These members requested Estonia 
to phase out all measures inconsistent with Article III of th e GATT 1994.  Some members also  WT/ACC/SPEC/EST/7 
 Page 21 
 
 
 questioned the conformity of Estonia's excise tax on automobiles with Articles III, VII and VIII of the 
GATT 1994 and the WTO Agreement on Customs Valu ation and requested deta ils about the new tax 
regime.  Estonia was also asked to provide details  on excise tax exemptions.  Some members held the 
view that excise tax exemptions for small domest ic producers of beer (annual domestic production not 
exceeding 5,000 dekalitres) and of  wine (annual production not exceed ing 100 dekalitres), and the 
exemption from the excise tax on domestically-own ed second-hand motor vehicles, were inconsistent 
with the national treatment provision of Article III of the GATT 1994.  In their view, Estonia would 
need to change its excise tax legislation to bring it into conformity with Article III of the GATT 1994. 
52. The representative of Estonia described the ra tes of excise tax applied on tobacco, petroleum 
products, alcohol, motor vehicles and packaging mate rials (Tables  5 and 6).  These tax levels were 
considered optimal and no reductions were fore seen upon accession to the WTO.  An excise duty of 
16 per cent on furs and fur products, levied only on domestic producers, had been eliminated. 
53. The representative of Estonia said that according to amendments to the Law on Alcohol 
Excise Tax, the excise rates on domestic and impor ted beer had been equalized on 1 December 1996. 
However, in support of regional development, sma ll-scale producers of beer and wine had been tax 
exempt, and the excise tax on beer had been diff erentiated depending on the annual output of the 
manufacturer.  In addition, the excise tax on wines had distinguished between bulk and bottled 
imports to encourage bottling and further processing in Estonia.  Estonia had no domestic production 
of wine from fresh grapes.  He confirmed that the tax rates for bulk and bottled wine had been 
equalized at EEK 10.40 per litre (up to 15 per cen t alcohol content by volume) and EKK 15.40 per 
litre (over 15 per cent alcohol content by volume) on 1 December 1998, and that the tax exemption for small-scale producers of wine (annual production not exceeding 100 dekalitres) had been abolished as 
from the same date.  A new taxation system for beer would enter into force on 1 April 1999;  the excise tax would amount to EEK 0.55 per litre by volume of pure alcohol.  Thus, the excise tax would 
no longer be differentiated according to the output of the manufacturer, and the tax exemption for 
small-scale beer producers (annual production not ex ceeding 5,000 dekalitres) would lapse as from 
the same date.  
54. The excise tax on alcoholic beverages was fixed in Estonian Kroon per litre, by volume of 
pure alcohol (e.g. the tax on 1 litre of vodka (40 per cent vol.) amounted  to EEK 1.45 x 40 = EEK 58), 
and assessed on the amount of alcohol sold, exchange d, for free transfer or own consumption.  
Domestic manufacturers paid the tax to the Stat e Budget through the local Tax Board three times per 
month - on the third day following each ten-day period - on the basis of their actual turnover during WT/ACC/SPEC/EST/7 
Page 22  
 
 that period.  Importers were re quired to pay the excise tax upon importation, before release for free 
circulation in Estonia. 
55. The representative of Estonia added that ex cise taxes on alcoholic beverages were not 
collected on domestically produced alcohol expor ted by the manufacturer directly or through a 
customs warehouse;  supplies to maritime or air transport vessels  engaging in foreign travel;  
temporary importation by foreign juridical persons  of limited amounts of alcohol for fairs and 
exhibitions;  alcohol to be included in a data base on alcohol brands;  and alcohol imported for official 
functions under diplomatic status.  The Estonian National Tax Board supervised compliance with the 
rules. 
Table 5
:  Excise Taxes in Estonia  
Tariff Heading, subheading Product description Tax rate (EEK) 
Alcohol 
2203 00 011, 2203 00 091, 2203 00 101, 
2203 00 019, 2203 00 099, 2203 00 109 1. Beer  0.55** 
(from 1 April 
1999) 
2204 10 110 - 2204 21 101,  
2204 21 110 - 2204 21 840,  
2204 29 101, 2204 29 105,  
2204 29 121-2204 29 849, 2205 10 101, 2205 90 101, 2205 90 103. 2. Sparkling wines and other 
wines of fresh grapes with an 
alcoholic content by volume up 
to 15% 10.40* 
2204 21 109, 2204 21 870 - 2204 21 990, 
2204 29 103, 2204 29 109,  2204 29 871- 2204 29 999,  2205 10 109 – 2205 10 900, 2205 90 105, 2205 90 109, 2205 90 901, 2205 90 902. 3. Sparkling wines and other 
wines of fresh grapes with an alcoholic content by volume exceeding 15% 15.60* 
 4. Other fermented drinks (e.g. 
cider, berry, wine etc.) and their blends:  
2206 00 810, 2206 00 891 a)   with an alcoholic content by 
volume up to 15 %vol. 4.90* 
2206 00 592, 2206 00 892, 2204 30 109, 
2204 30 969, 2204 30 989 b)   with an alcoholic content by 
volume exceeding 15 %vol. 6.50* 
2207 10 009, 2208 
2106 90 200, 3302 10 100 5. Other alcohol 1.45** 
ex2207 10 000  
ex2208 90 910 ex2208 90 990 6. Rectified spirits  used in 
medicine, pharmaceutics, veterinary, scientific research and study purposes, the 
production of perfumery 0.20** 
* per litre 
** per one %vol. of absolute alcohol in a litre 
 
   WT/ACC/SPEC/EST/7 
 Page 23 
 
 
 Tariff Heading, subheading Product description Tax rate (EEK) 
Motor Fuel (from 1 December 1998) 
2710 00 271, 2710 00 272, 2710 00 290, 
2710 00 320, 2710 00 341, 2710 00 342 2710 00 343, 2710 00 344, 2710 00 360 Petrol, per 1,000 litre 3,000  
2710 00 660, 2710 00 671, 2710 00 681  Diesel oil, per kg 2.32 
2710 00 260, 2710 00 370 Aviation gasoline, per kg 1.50 
2710 00 510 Aviation petrol, per kg 3.50 
2711 12 940, 2711 12 970 
2711 13 910, 2711 13 970 Liquid gas used as motor fuel, 
per kg 1.50 
2711 21 000 Compressed gas used as engine 
fuel, per kg 1.20 
2710 00 871 Motor oil, per kg 0.38 
2710 00 679, 2710 00 689 Light motor oil, per kg 0.24 
Tobacco products (from 1 Jan. 99/from 1 July 99) 
2402 20 Filtered cigarettes 5.00*/5.50* 
2402 20 Unfiltered cigarettes 5.00*/5.50* 
2402 20 Russian cigarettes 5.00*/5.50* 
2402 10 001 Cigarillos 5.00*/5.50* 
2402 10 009 Cigars 5.00**/5.50** 
2403 10 Smoking tobacco 6.35***/7.00*** 
2403 99 100 Snuff 6.35***/7.00*** 
2403 99 100 Chewing tobacco 6.35***/7.00*** 
ex2403 99 900 Other tobacco products 6.35***/7.00*** 
*per package containing up to 20 (incl.) cigarettes, Russian cigarettes or cigarillos 
**per one cigar ***per package containing up to 50 (incl.) grams of a tobacco product 
Packaging 
Alcohol and soft drink packaging, depending 
on the material Per unit Per litre 
Glass and ceramics 0.50 2.00 
Plastics 1.00 2.00 
Metal 0.75 2.00 
Other 0.25 1.00 
Excise is calculated according to both rates and summarized.  As from 1 January 1999, excise tax is 
not imposed on packaging of which at least 60 per cent is recycled. 
56. The representative of Estonia said that the Law on Stamp Duty established revenue stamps, 
issued against payment of taxes by the National Tax Board at no extra charge, for goods subject to 
excises.  At present the Stamp Duty concerned only imported and domestically produced tobacco products.  For example, the excise tax per package of 20 cigarettes amounted to EEK 5.00 (EEK 5.50 
from 1 July 1999).  Domestic firms paid excise taxes to the local Tax Board three times per month, 
taxes on imported tobacco products were payable befo re release for free circulation in Estonia.  The 
representative of Estonia confirme d that excise rates for imported and domestically-produced tobacco 
products had been equalized on 1 Ja nuary 1996 by bringing taxes on domestic products up to the level 
applied to imports. WT/ACC/SPEC/EST/7 
Page 24  
 
 57. Concerning the taxation of automobiles, a member said that the exemption of used 
domestically owned automobiles from the excise tax on used automobiles was inconsistent with 
Article III of the GATT 1994 and should be cha nged to bring it into conformity with WTO 
requirements.  In response, the representative of Estonia said that used au tomobiles imported into 
Estonia had been subject to a 10 per cent import ta x levied in accordance wi th original invoices for 
legal persons and a valuation list fo r natural persons in order to avoi d fraud.  The import tax had been 
replaced by excise taxes levied  in accordance with the Law on Mo tor Vehicle Excise Tax, in force 
since 1 April 1995. 
58. All new motor vehicles and used motor vehicles im ported into Estonia were subject to excise 
tax.  Passenger automobiles were subject to a tax ba sed on age and cylinder capacity either at the time 
they were imported or at the point of manufacture within Estonia.  The tax was therefore applied at 
the point of first sale, i.e. either at the time of importation or sale by domestic manufacturer.  The 
subsequent sale was not taxed.  There were no manuf acturers of motor vehicles  in Estonia except that 
buses were assembled in small quantities.  At pres ent there were no sales of domestically produced 
new or used motor vehicles.  According to the Law, if there would be manufacturers of motor 
vehicles, they would pay the excise tax upon sale, exchange, gratuitous transfer or self-consumption 
of motor vehicles.  According to the Law on Moto r Vehicle Excise Tax buses  were not subject to 
excise tax.  Estonia considered the Law on Motor Vehicle Excise Tax to be in conformity with 
Article III of GATT 1994 because imported motor vehicles were treated as favourably as domestically 
produced motor vehicles.  In order to explain how excise duties on automobiles were calculated an 
example was included in Table 6.  The excise tax was designed to encourage importation of modern 
vehicles. 
Table 6:  Motor Vehicles
 
Tariff heading, 
subheading Product description Tax rate applicable 
from 1 April 1999 
1. Excise tax based on the cyli nder capacity of motor vehicles 
8703 Motor cars and other motor vehicles principally 
designed for the transport of persons (other than those
of heading No. 8702), including station wagons an d
racing cars:  
ex8703 10 Motor vehicles specially designed for travelling on
snow; golf cars and similar vehicles EEK 15/cc 
 Other vehicles, with spark-ignition internal 
combustion reciprocating piston engine of a cylinde r
capacity:  
8703 21 not exceeding 1,000 cc EEK 1/cc 
8703 22 exceeding 1,000 cc but not 1,500 cc EEK 2.5/cc  WT/ACC/SPEC/EST/7 
 Page 25 
 
 
 Tariff heading, 
subheading Product description Tax rate applicable 
from 1 April 1999 
ex8703 23 ex8703 23 ex8703 23 and  ex8703 24 ex8703 23 
ex8703 23 exceeding 1,500 cc but not 1,600 cc 
exceeding 1,600 cc but not 2,000 cc 
Station wagons, land rovers of a cylinder capacityexceeding 1,600 cc exceeding 2,000 cc but not 2,500 cc 
exceeding 2,500 cc but not 3,000 cc EEK 2.5/cc 
EEK 4/cc  EEK4/cc EEK 8/cc 
EEK 15/cc 
8703 24 exceeding 3,000 cc EEK 30/cc 
 Other vehicles with compression-ignition internal 
combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity:  
8703 31 not exceeding 1,500 cc EEK 2.5/cc 
8703 32 
ex8703 32 and 
 ex8703 33 exceeding 1,500 cc but not 2,500 cc 
Station wagons, land rovers of a cylinder capacity 
exceeding 1,600 cc EEK 4/cc 
EEK 4/cc 
ex8703 33 ex8703 33 exceeding 2,500 cc 
exceeding 3,000 cc EEK 8/cc 
EEK 15/cc 
8711  (except under sub-heading 8711 90) Motorcycles (including mopeds) and cycles fitted with
an auxiliary motor, with or without side-cars; side-cars EEK 2.5/cc 
2. Excise tax on used motor vehicles  
 of up to 10 years of age EEK 500/year 
 from 11 years of age EEK 1,000/year 
3. Excise tax on new motor vehicles  EEK 1,000 
Example: 
A used automobile, cylinder capacity 2 000 cm³, age 10 years and price according to the purchase documents is 35,000 EEK: 
35,000 - price according to the purchase documents 8,000 - excise tax on the basis of the cylinder capacity 5,000 - excise tax on the basis of age
 
48,000 
8,640 - VAT (18% of EEK 48,000)  
56,640 - price for importer after importation 
59. Some members of Working Party requested information on the application of the value-added  
tax, including product and user-specific exemptions and equal treatment for imported and domestic 
products.  Questions were also raised regardi ng the calculation of the VAT on motor vehicles. 
60. The representative of Estonia confirmed that th e value-added tax at an 18 per cent rate was 
applied equally to domestic goods and to all imports  regardless of country of origin.  VAT on motor 
vehicles imported by natural persons had been base d on a standard valuation list until the excise tax 
system was changed on 1 April 1995.  He also conf irmed that the exemptions for certain goods and 
services from the VAT were applied equally to domestic and imported goods and services.  The 
following goods and services were exempt from VA T:  education and advanced training, postage 
stamps and public postal services, medical servic es, banking and insurance, funeral services and 
requisites, organization of gambling and lottery tickets, residential rent (letting of housing), WT/ACC/SPEC/EST/7 
Page 26  
 
 medicines, medical goods, medical equipment, treatm ent of dangerous waste (since February 1995), 
social services and scientific research activities of universities and State research establishments 
funded from the State budget, and municipal sauna services.  Exports, subscriptions to periodicals 
published and printed in Estonia, theatre tickets, tick ets to concerts of State concert organizations and 
State collectives of performers, textbooks and wo rkbooks for basic schools and gymnasiums, had 
zero-rate VAT.  The Government had the right to grant exemptions from VAT on imports for non-
profit purposes.  Imports required for official purpo ses of foreign representations and diplomats were 
not subject to VAT provided that foreign country gr anted the same right to Estonia's representations 
abroad.  Regarding the VAT exemption on subscriptions  to periodicals, the representative of Estonia 
stated that national treatment will be applied to s ubscriptions to foreign periodicals by the date of 
accession to the WTO. 
61. Noting that certain legal entities with a tu rnover below EEK 250,000 were not registered as 
obligatory payers of VAT, a member questioned the rationale for this provision and its conformity 
with Article III of the GATT 1994.  In his view, th is exemption would appear to constitute a subsidy 
program for sales of domestic goods by small Estonian businesses since imports were assessed for the 
VAT in any case upon importation.  Estonia should revise its legislation in the near term or propose a 
method by which the deficiencies identified in  its excise tax and VAT application would be 
addressed.  The representative of Estonia replied that legal persons whose taxable base (except 
imports) exceeded the threshold value of EEK 250,000 in a calendar year were obliged to register 
with the Tax Board as persons liable to taxation.   Legal persons with a taxable base below the 
threshold value could also seek registration as liab le to taxation at the Tax Board.  In his view, 
non-registration did not amount to a subsidy program for small Estonian companies for sales of domestic goods and services since only registered tax payers could claim a refund for VAT paid on 
goods and services used as inputs in their production.  Experience suggested that most firms making 
use of the threshold were small services providers with relatively low input costs. 
62. The representative of Estonia confirmed that, fr om the date of accession, Estonia will apply 
its domestic taxes, including those on products listed in paragraphs 52 to 61 in strict compliance with 
Article III of the GATT 1994.  The Worki ng Party took note of this commitment.  WT/ACC/SPEC/EST/7 
 Page 27 
 
 
 Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems  
63. Some members of the Working Party sought  information about the use of quantitative 
restrictions and import licensing arrangements.  Some members expressed the concern that under 
certain circumstances the conditions of sale of im ported products could be affected in a manner not 
consistent with Article III of the GATT 1994, for instance, trade in alcohol and tobacco required a preliminary declaration. 
64. The representative of Estonia said that no product was subject to  quantitative import 
restrictions in Estonia and that licensing was not applied to restrict imports, the production or the 
wholesale of any product.  The "preliminary declaration" requirement simply implied that all customs procedures and formalities needed to be complete d before goods could cross the border.  The 
representative of Estonia stated fu rther that licences were required to engage in certain activities, 
including importation of certain products as described in paragraphs 34 to 40 of this report.  These 
requirements, including licensing arrangements for fo od imports, were of automatic nature and did not 
have restrictive effect on imports.  In Estonia's vi ew, the procedures for activit y licensing were in full 
conformity with the provisions of the WTO Agreem ent on Import Licensing Procedures, notably its 
Articles 2, 3 and 5. 
65. The representative of Estonia confirmed that, fr om the date of accessi on, Estonia would not 
introduce, re-introduce or apply quantitative restric tions on imports, or other non-tariff measures such 
as licensing, quotas, bans and other restrictions havi ng equivalent effect that  could not be justified 
under the provisions of the WTO Agreement.  If balance-of-payment measures were ever necessary in 
the future, Estonia would impose them in a manner  consistent with the relevant WTO provisions, 
including Article XII of the GATT 1994 and the Understanding on Balance-of-Payments Provisions 
of the GATT 1994.  The Working Party took note of these commitments. 
Customs Valuation
 
66. Some members of the Working Party asked about the status of the Customs Valuation Law 
and its content.  Relating the request for information to Estonia's implementation of the WTO Agreement on the Implementation of Article VII of the GATT 1994, these members enquired whether Estonia's Customs Valuation Law was fully cons istent with the WTO Agreement.  A member 
understood that Estonia was considering legislation which could provide for minimum prices on 
importation of certain food products and questioned the conformity of such legislation with GATT 
rules.  Estonia also appeared to use price lists of reference prices to verify invoices.  This member WT/ACC/SPEC/EST/7 
Page 28  
 
 reminded Estonia that the use of minimum import prices or reference prices was a violation of 
Article VII. 
67. The representative of Estonia explained that the Customs Valuation Law had been adopted on 
8 February 1995 and had entered into force on 1 January 1996.  The delay had been necessary to 
undertake preparatory work for its implementation,  including practical arrangements such as the 
printing of documents, the training of  customs officers, informing traders,  etc.  Estonia considered  the 
Law to be in full conformity with WTO rules, including the WTO Agreement on the Implementation 
of Article VII of the GATT 1994. 
68. Estonia's response to the questionnaire on "Information on Implementation and 
Administration of the Agreement" was submitted in August 1995 (WT/ACC/EST/4, annexes 1 and 6, 
listed in document WT/ACC/EST/5).  The representative  of Estonia was asked to clarify provisions in 
the Customs Valuation Law relating to the use of transaction value between related parties 
(Article 4(3));  verifi cation of transaction values between related parties based on test values 
(Articles 4(5)(4) and (5));  and a re ference to minimum customs values in Article 9(2)(4) of the Law.  
Estonia was also asked about the implementati on of Decision 4.1 of the Customs Valuation 
Committee concerning the valuation of carrier media bearing software for da ta processing equipment 
(the Software Decision). 
69. The representative of Estonia said that Estonia had introduced the provisions of the Software 
Decision.  A decree, issued by the Ministry of Finance on 11 January 1996, stipulated that only the 
cost of the carrier medium itself would be accounted for in the customs value.  He stated that the 
value of imported merchandise was determined in c onformity with GATT Article  VII (2)(a) also in  
transactions between related parties;   test values were used for the verification of the declared value 
with the actual value only at the request of the importer. 
70. The representative of Estonia assured member s of the Working Party that the Law on 
Customs Valuation would be applied in full conformity with the WTO Agreement on the 
Implementation of Article VII of the GATT 1994.  In addition, he confirmed that Article 9(2)(4) of the Law would be applied consistent with Article VII (Valuation for Customs Purposes).  He stressed 
that Article 9(2)(4) of the Customs Valuation Law prohibited the setting up of minimum import 
values.  He underlined that Estonia did not have any measures in place which would be inconsistent 
with WTO rules, nor would Estonia introduce such measures in the future.  Estonia did not use measures such as minimum prices, reference prices or  lists of prices in order to calculate customs 
value or to verify invoices.  WT/ACC/SPEC/EST/7 
 Page 29 
 
 
 71. The representative of Estonia confirmed that, fr om the date of accession, Estonia would apply 
fully the WTO provisions concerning customs valuation, including in addition to the Agreement on 
the Implementation of Article VII of the GATT 1994, the provisions on the Treatment of Interest 
Charges in Customs Value of Imported Goods and for the Valuation of Carrier Media Bearing Software for Data Processing Equipment.  In accord ance with these latter provisions, only the cost of 
the carrier medium itself would be accounted for in the customs value.  He stated that Estonia would 
not use any form of reference price or fixed valuation schedule for the valuation of imports or to apply 
duties and taxes, and that all methods of valuation us ed were in strict confor mity with those provided 
for in the WTO Agreement on the Implementation of Article VII of the GATT 1994.  He further confirmed that, as an international agreement, the provisions of the WTO Agreement on the Implementation of Article VII of the GATT 1994 w ould supersede domestic law upon accession.  The 
Working Party took note of these commitments. 
Other Customs Formalities
 
72. The representative of Estonia confirmed that  other customs formalities were applied in 
accordance with internationally accepted rules and were based on the Kyoto Convention.  He added 
that Estonia had been a member of the World Customs Organization since June 1992.  In reply to a 
specific question, he confirmed that Estonia did not require authentication of import/export documents 
by its consulates overseas.   
Rules of Origin  
73. Some members of the Working Party requested in formation about the elaboration of rules of 
origin in Estonia whether in the context of free tr ade agreements or otherwise.  A member requested 
Estonia to confirm that its rules of origin for both preferential  and non-preferential trade complied 
fully with the WTO Agreement on Rules of Origin.  Estonia was asked to describe, in particular, 
measures consistent with the disciplines under Article 2 of the Agreement and the Common 
Declaration in Annex II of the Agreement. 
74. The representative of Estonia said that the draf ting of rules of origin was a continuous process 
evolving in accordance with developments in th e Technical Committee on Rules of Origin of the 
WTO.  Due to the liberal foreign trade regime the el aboration of national rules of origin had not been 
considered essential in Estonia, but  agreed rules of origin were u sed in the framework of free trade 
agreements.  Estonia applied unified rules of origin  within the system of diagonal cumulative origin 
among the countries of the European Economic Area, Switzerland and ten associated countries in central and eastern Europe.  Members of the Working Party were supplied copies of the rules of origin WT/ACC/SPEC/EST/7 
Page 30  
 
 of Estonia's free trade agreements with EFTA countr ies;  the European Union, the Ukraine and the 
trilateral free-trade agreement with Latvia and Lithuani a.  He said that the preferential rules of origin 
complied fully with the disciplines under the Common Declaration in Annex II of the WTO 
Agreement on Rules of Origin.  Th e Estonian authorities envisaged the elaboration of legislation on 
rules of origin along the lines of existing rules of origin in preferential trade agreements and the suggestions and decisions of the Committee on Rules of Origin of the World Customs Organization 
and the WTO Agreement on Rules of Origin.  Est onia had not developed its own non-preferential 
rules of origin and was waiting for the new set of rul es of origin to be elaborated by the WTO.  The 
new Customs Act that entered into force on 19 January  1998 provided the basis for enactment of those 
rules. 
75. The representative of Estonia stated that th e Government Regulation establishing Estonia's 
non-preferential rules of origin would be adopted by 30 June 1999, or in any case no later than by the 
date of accession.  He confirmed that from the da te of accession the non-preferential rules of origin 
would comply fully with the WTO Agreement on Rules of Origin.  The Working Party took note of this commitment. 
Anti-Dumping, Countervailing Duties, and Safeguard Regimes
 
76. Some members of the Working Party noted that  Estonia appeared not to have any specific 
anti-dumping legislation, but that an Anti-dum ping Law, including countervailing duties procedures, 
was in preparation.  In view of the uncertainty rega rding the date of entry into force of such a law and 
its content, Estonia was asked to submit draft le gislation for comment to members of the Working 
Party.  
77. The representative of Estonia confirmed that, at this point, Estonia did not have legal 
authority to apply anti-dumping duties, countervaili ng duties, and safeguards, and therefore did not 
use these measures to regulate trade.  Chapter 4, Article 14 of the Law on Competition mentioned 
among abuses of dominant position the imposition of unfair pricing conditions or other unfair trading 
conditions.  However, the listed unfair trade pract ices in the Act did not overlap with any pending 
anti-dumping statute.  He added that no text of any Anti-dumping Law existed yet.  Provisions on anti-dumping and countervailing measures were not included in the Law on Customs Tariff. 
78. The representative of Estonia confirmed that  Estonia would not apply any anti-dumping, 
countervailing or safeguard measure until it had impl emented appropriate laws in conformity with the 
provisions of the WTO Agreements on the Implementation of Article VI, on Subsidies and Countervailing Measures, and on Safeguards.  In th e elaboration of any legislation concerning such  WT/ACC/SPEC/EST/7 
 Page 31 
 
 
 anti-dumping, countervailing and safeguard measures Es tonia would ensure their full conformity with 
the relevant WTO provisions, including Article VI  and XIX of the GATT 1994 and the Agreements 
on the Implementation of Article VI, the Agreement on Subsidies and Countervailing Measures and 
the Agreement on Safeguards.  After such legislation was implemented, Estonia would also apply any anti-dumping duties, countervailing duties and safeguard measures in full conformity with the relevant WTO provisions.  The Working Party took note of these commitments. 
2. Export Regulations
 
Customs Tariffs, Fees and Charges for Services Rendered, Application of Internal Taxes to Exports  
79. Some members of the Working Party noted that  Estonia had applied export taxes on metals 
and objects of cultural value.  In response, the representative of Estonia said that a 100 per cent export tax had been levied on objects of cultural value, i.e. dating from before 1950, but this tax had been 
abolished by Government Decree No. 115, which ente red into force on 2 June  1998.  Export taxes on 
metals had also been abolished, thus Estonia di d not impose export taxes on any product at present. 
80. The representative of Estonia confirmed that  after accession to the WTO, Estonia would 
minimize the use of export taxes and any such taxes applied would be in accordance with the 
provisions of the WTO Agreement and published in the Official Journal " Riigi Teataja " (State 
Gazette).  Changes in the application of such measur es, their level, scope, or justification, would also 
be published in the Official Journal " Riigi Teataja " (State Gazette).  The Working Party took note of 
these commitments. 
Export Restrictions
 
81. Noting that the Ministry of Economic Affairs had the right to impose export quotas on certain 
goods, some members of the Working Party asked the representative of Estonia to clarify licensing arrangements affecting trade in metals, spirits, tobacco products and medicaments and to justify 
export quotas/licences on gravel and clay.  Some members also sought clarification on Estonia's 
intentions regarding the use of non-tariff measures on exports for emergency purposes.  The 
representative of Estonia replied that the Ministry of Economic Affairs' right to determine export quotas had been eliminated.  The last remaining e xport quota (on quartz sand) had been abolished and 
Estonia did not foresee any further quantitative regul ation of export trade.  As the export quota/licence 
on gravel and clay had been terminated on 1 Janua ry 1995, no justification would be required under 
GATT or WTO provisions and Estonia would seek no transitional period for this measure.  Export 
and import licences as such did not exist, but he re ferred to the earlier response regarding "Licence of WT/ACC/SPEC/EST/7 
Page 32  
 
 Activity" (in paragraphs 34 to 40 above).  He added that Estonia would not apply regulations on 
exports beyond WTO mechanisms. 
82. Export control measures (licences) on scrap metal and radioactive waste material did not 
carry any limitation of quantity.  Licences were i ssued automatically provid ed the applicant could 
prove that the goods had been obtained legally.  Fail ure to do so could constitute a criminal offence.  
The monopoly rights of the former State Monopoly on trade in scrap metals and dangerous metal 
waste had been abolished by Government Regula tion  No. 200 "On the Approval of the Order of 
Issuing Activity Licences for Commercial Interm ediation of Scrap Metal and Metal Waste" as of 
15 September 1998, and the enterpri se itself had been privatized. The regulation granted access to any 
private enterprise to trade in scrap metal, provided the enterprise fulfilled the conditions stipulated in the Regulation.  All firms trading in scrap metal or  radioactive metal waste were required to follow 
the rules established by the regulation.  The representative of Estonia confirmed that all export quotas 
and licences and measures having similar effect had been eliminated. 
83. The representative of Estonia confirmed that any remaining export control requirements were 
fully consistent with WTO provisions, including those contained in Articles XI, XVII, XX and XXI of 
the GATT 1994.  The Working Party took note of this commitment. 
Export Subsidies
 
84. Some members of the Working Party sought information about subsidies, including tax 
incentives related to exports, the activities of the Export Credit Fund, the consideration of wide 
ranging use of export incentives, and existing or pl anned measures to tackle market disturbances or 
balance-of-payments problems.  The representative of  Estonia said that no tax incentives, including 
tax holidays, existed to promote exports.  He confirmed that loans from the Export Credit Fund carried 12 to 16 per cent annual interest, comparable to the commercial interest rates of 12 to 18 per cent in effect for short-term loans in Estonia in 1996.  Plans existed to develop the Fund into an 
Export Credit and Guarantee Board which would receive  the initial capital injection from the National 
Budget.  Estonia would not consider wide ranging  export incentives, but, due to an increasingly 
negative trade balance, had the intention to intr oduce moderate export incentive schemes.  Enterprise- 
or sector-specific subsidies were not envisaged;  the schemes would be of horizontal nature and 
allocations would be base d on objective economic criteria.  The representative of Estonia added that 
the incentives schemes would be applied in conformity with WTO requirements.  
85. The representative of Estonia stated that fr om the date of accession Estonia would not 
maintain any subsidies, including export subsidie s, which met a definition of a prohibited subsidy  WT/ACC/SPEC/EST/7 
 Page 33 
 
 
 within the meaning of Article 3 of the Agreem ent on Subsidies and Countervailing Measures, and 
would not introduce such prohibited subsidies from the day of accession.  The Working Party took 
note of this commitment. 
3. Internal Policies Affecting Foreign Trade in Goods  
Industrial Policy, including subsidies  
86. Some members of the Working Party requested details on any subsidies to private or State-
owned enterprises and asked whether Estonia maintained any industry support to be notified in 
accordance with the Agreement on Subsidies and Countervailing Measures.  Some members also asked Estonia to state its attitude regarding future reso rt to subsidies in the pursuit of industrial policy 
and clarification of the intention to restore historical trade links. 
87. The representative of Estonia said that the restoration of historical trade links would involve 
free and balanced economic links  with countries offering Estonia the best possibilities and real 
potential for mutually beneficial economic partne rship.  Estonia confirmed that it had some 
programmes providing subsidies to industries, in  particular the Innovation Foundation, which 
provided grants for research and developmen t activities, and the Law on State Support for 
Entrepreneurship, which regulated State support to smal l and medium sized enterprises.  In this latter 
case support - loans and loan guarantees  - were made available by an eleven-member Council.  The Estonian Innovation Foundation was a non-profit orga nization, established by the Government.  Its 
operations were coordinated by the Estonian Research and Development Council, a collective 
advisory body to the Government.  The main functions of the Foundation were to initiate and fund 
State technology programmes;  finance project s to improve production technology at the pre-
industrial stage;  promote technical and technologic al research and development;  and to support the 
development of science and technology parks and production infrastructure.  The Foundation provided grants for applied research (up to 50 pe r cent of project costs) and loans for industrial 
projects (maximum 75 per cent of project costs).  In the period 1991-1997, the Estonian Innovation 
Foundation had supported 257 projects, providing grants  totalling EEK 27 million and loans of more 
than EEK 84 million;  the Foundation's budget for 1998 amounted to EEK 30 million.  Estonia provided a draft notification under Article 8.3 (N on-actionable subsidies) of the Agreement on 
Subsidies and Countervailing Measures regarding th e activities of the Estonian Innovation Foundation 
to the Working Party (document WT/ACC/EST/20). 
88. The representative of Estonia confirmed that any subsidy programmes would be administered 
in line with the Agreement on Subsidies and Countervailing Measures and that all necessary WT/ACC/SPEC/EST/7 
Page 34  
 
 information on notifiable programmes would be notified to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the Agreement upon entry into force of 
Estonia's Protocol of Accession.  The Working Party took note of this commitment.  
Technical Barriers to Trade, Sani tary and Phytosanitary Measures 
 
89. Some members of the Working Party inquired about the application of international and 
national standards in Estonia and the compliance with various provisions of the Agreement on 
Technical Barriers to Trade (TBT ) and on Sanitary and Phytosanit ary Measures (SPS).  Regarding 
agriculture, some members asked about the objective s of the Food Law and the resort to sanitary and 
phytosanitary measures, with particular referenc e to Government Regulations 300 and 340 of 1992. 
90. The representative of Estonia supplied information on technical barriers to trade in document 
WT/ACC/EST/9 (Annex III) and a notification on sanitary and phytosanitary measures.  The National 
Standards Board of Estonia (EVS) was responsible  for standardization issues.  The EVS was a 
correspondent member of ISO and an affiliated member of CEN, the Estonian Electrotechnical Committee was an associated memb er of IEC and an affiliated member of CENELEC, and the 
Estonian Telecommunications Board had become a member of ETSI.  The EVS had accepted the 
Code of Good Practice for the Preparation, Adop tion and Application of Standards (Annex 3 to the 
WTO TBT Agreement), and this had encouraged th e application of international and European 
standards.  Current Estonian standards were based mainly on standards of in ternational organizations 
and on national standards of other countries.  Estonian standards were  harmonized with the regulation 
of the European Union and were generally voluntary,  except the application of some standards (e.g. 
on purchasing requirements of milk, on fire safety, etc.) made mandatory by ministries' regulations and in the case of technical regulations on spirit s (white vodka) and construction cement.  Former 
USSR criteria, the so-called GOST standards, remain ed temporarily valid in some areas but were no 
longer mandatory.  All standards applied equally to  domestic and imported products.  EVS prepared 
its standards programme twice a year (1 January and 1 July);  the latest standards programme had also 
been submitted to the ISO/IEC information unit.  All European standards implemented by Estonia 
were registered and submitted to CEN.  All dr aft standards presented for adoption as Estonian 
standards, including those received from internat ional standardization orga nizations, were published 
in the official bulletin of the National Standards Board "EVS Teataja"  for comment. 
91. Conformity assessments were organized in  accordance with European requirements 
(EN 45000).  Acceptance of foreign certification was based on the principle of mutual recognition between the relevant body in Estonia and its counter part in another country.  Estonia was harmonizing 
its conformity assessment legislation to ensure  compliance with the requirements of the TBT  WT/ACC/SPEC/EST/7 
 Page 35 
 
 
 Agreement, including the acceptance of foreign conformity assessment without a mutual recognition 
agreement, by the date of accession. 
92. The representative of Estonia said that "high quality" and "internationally competitive food" 
were key objectives cited in Estonia's Food Law, wh ich was to serve as a basis for further legislation 
regulating food handling, quality, safety, control a nd inspection.  A National Food Board had been 
established to deal with all matters concerning food and nutrition policy, however, its tasks had been 
transferred to the Ministry of Agriculture in accordance with the amendments to the Food Law of 
26 June 1996.  The responsibilities of the Ministry t hus included planning and analysis of the status of 
food and nutrition, elaboration of relevant stra tegic proposals, drafting laws on food and food 
handling, organization of food safety inspection,  advising authorities certifying and testing food 
quality and safety, and elaboration and implementation of food monitoring programmes. 
93. The representative of Estonia added that borde r controls on plants and plant products were 
effected by the Plant Quarantine Department of the Plant Protection Inspect orate in accordance with 
Government Regulation No. 300 (of 19 October 1992)  on "Regulation of arranging phytosanitary 
control on the State border" and amendments to th is done on 15 December 1992 (Regulation No. 340) 
and 31 March 1995 (Regulation No. 147) as well as the Law on Plant Protection and the Temporary 
Regulation on the State Control, Sale, Export and Im port of the Seeds of Field Crops, and the Law on 
Veterinary Services of 1992.  Sanitary and phytosan itary measures and the work of veterinary services 
were in accordance with the Codex of the OIE (Office International des Epizooties), in which Estonia 
had been member since 1992.  Goods subject to veterinary controls, border check points, requirements 
for veterinary certificates and the procedures for settling claims were laid down in a Decree of the Minister of Agriculture of 3 August 1994 and Government Regulation No. 17 of 10 April 1995.  The authorities considered the health and safety provisions of the Food Law to be consistent with the 
WTO Agreement on Sanitary and Phytosanitary Measures.  Amendments to the Food Law, adopted 
by Parliament in February 1999, included acceptance of exporters' certificates, issued in conformity 
with international principles of certification, at the border. 
94. Some members of the Working Party noted that Estonia had adopted no laws, regulations or 
administrative procedures relating to the implementation and administration of the WTO obligations 
on  technical barriers to trade and that regulations  concerning SPS were being developed.  In their 
view, these procedures should be enacted by th e time of Estonia's accession to the WTO. 
95. The representative of Estonia provi ded copies of draft legislation related to technical barriers 
to trade and sanitary and phyto sanitary measures to Members for comment.  He confirmed that 
Estonia had established an Enquiry Point as re quired in Article 10 of the WTO Agreement on WT/ACC/SPEC/EST/7 
Page 36  
 
 Technical Barriers to Trade and the Agreement on the Application of Sanitary and Phytosanitary 
Measures (Annex B).  The Enquiry Point at the Nati onal Standards Board of Estonia (EVS) was fully 
operational at present, and covere d both TBT and SPS issues.  Th e EVS had accepted the Code of 
Good Practice established in Annex 3 of the TBT Agreement.  Programmes on the drafting of standards in Estonia were submitt ed to the ISO/IEC twice a year.  Agencies drafting standards and 
conformity assessment or certification procedures took into account existing international standards or 
guidelines prior to drafting domestic legislation, and would notify WTO Members at the draft stage 
and take into account comments from WTO Memb ers before finalizing regulations.  Estonia 
submitted information on national enquiry points to the Working Party in document WT/ACC/EST/19. 
96. The representative of Estonia provided a draf t notification under Ar ticle 15.2 of the TBT 
Agreement in April 1997 (document WT/ACC/EST/ 17).  The Law on Technical Regulations and 
Standards, adopted by Parliament on 22 February  1999, provided the legal and organizational basis 
for standardization activities and notification pro cedures in Estonia.  Technical regulations were 
published in the Official Journal "Riigi Teataja"  (State Gazette).  According to the Law on Technical 
Regulations and Standards, a technical regulation c ould make reference to existing standards, which 
could remain voluntary, or be made mandatory standa rds.  Detailed procedures for the notification of 
technical regulations would be provided in a Government Regula tion, to be presented to the 
Government for adoption in May 1999.  Preparations  had begun to establish a Notification Centre at 
the Ministry of Economic Affairs.  The Notificati on Centre would be responsible for the notification 
of technical regulations, collection of incoming notifications, collection of comments, and consultations with the authors of technical regula tions on notification requirements.  Institutions 
drafting technical regulations would be require d to provide all relevant information and 
documentation to the Notification Centre, which would decide on notification in close co-operation 
with the drafting institution.  The Notification Centre would forward the notification form to the WTO 
Secretariat, and the TBT Enquiry Point (EVS) woul d file the documentation and publish a note in its 
official bulletin "EVS Teataja" about the draft technical regulation being available for comment.  The 
Notification Centre would forward any requirement for consultations to the drafting institution, the 
Enquiry Point and the Ministry of Foreign Affairs, and the agencies would prepare a common position 
on the comments/requirements for consultations.  Th e drafting institution was required to submit the 
adopted text of a technical regulation to the Notif ication Centre, which forwarded it to the Enquiry 
Point for filing.  Concerning incoming notifications, notifications sent by the WTO Secretariat to the Notifications Centre would be forwarded to the E nquiry Point for publication, and to the relevant 
Ministry.  Interested parties would present their comments to the Notification Centre, which would 
prepare the comments/requirements for consultations in close co-operation with the relevant Ministry  WT/ACC/SPEC/EST/7 
 Page 37 
 
 
 and the Ministry of Foreign Affairs.  The Notification Centre would send Estonia's comments, 
requirements for consultations and de tailed opinions to the WTO Member. 
97. The representative of Estonia said that the Mi nistry of Agriculture had reviewed the Food 
Law, the Law on Veterinary Services, the Law on Plant Protection, the Law on Grain, the Law on 
Consumer Protection and the Law on Common Health with a view to ensuring their conformity with WTO requirements upon accession to the WTO, including the Agreement on Technical Barriers to 
Trade and the Agreement on Sanitary and Phytosanitary Measures. 
98. The representative of Estonia confirmed that Estonia would apply all obligations under the 
WTO Agreements on Sanitary and Phytosanitary Measu res and Technical Barriers to Trade from the 
date of accession without recourse to any transi tion period.  The Working Party took note of these 
commitments. 
Trade-Related Investment Measures (TRIMs)
 
99. The representative of Estonia said that Estoni a would not maintain any measures inconsistent 
with the TRIMs Agreement and would apply the TRIMs Agreement from the date of accession without recourse to any transitional period.  The Working Party took note of this commitment. 
State-trading
 
100. Some members of the Working Party noted that a significant portion of Estonia's output and 
trade remained in State hands and that tobacco and alcohol had been subject to State monopoly.  Estonia was requested to notify under Article XVII any de facto or de jure trade monopoly and trade 
activities of any State-owned firm benefitting from selective support or subject to State intervention. 
101. The representative of Estonia replied that foll owing extensive privati zation State-owned firms 
accounted for less than 5 per cent of domestic trade.  The process of privatization was continuing and shares in privatized companies we re traded actively on the Tallinn St ock Exchange.  He stressed that 
the influence on international trade of the shares remaining in Govern ment ownership was difficult to 
estimate as Estonian law did not allow the custom s authorities to disclose enterprise-specific trade 
information to any third party except the tax author ities.  Estimates based on trade per share were not 
meaningful in practice because of rapid changes in  share ownership.  Therefore, he could only 
confirm a strong tendency for State-ownership to decrease as the State sold shares to the public to 
encourage the development of Estonia's stock market.  With the exception of Eesti Energia  and Eesti 
Põlevkivi , the representative of Estonia said that enterprises part-privatized through the sale of State-WT/ACC/SPEC/EST/7 
Page 38  
 
 owned shares did not constitute a State trading enterp rise in the sense of Article XVII since they had 
no special rights or privileges in relation to any other enterprises.   
102. Estonia notified under Article XVII of the GATT 1994 in its Information on State-trading 
(WT/ACC/EST/9 (Annex IV)) that a State monopoly ha d been established on scrap metal to control 
metal trade.  The purpose of the scrap metal monopol y (EMEX) was to prevent serious crime;  i.e. 
trade in metal stolen from unguarded installations  and construction sites.  Such thefts had caused 
extensive damage to domestic infrastructure, in particular to the operations of Estonian Railways, 
Estonian Energy and Estonian Telephone.  The mo nopoly could also be used to control trade in 
radioactive scrap materials.  However, the monopol y rights on trade in scrap metals and radioactive 
metal waste had been abolished by Government Regulation  No. 200 "On the Approval of the Order 
of Issuing Activity Licences for Commercial Inte rmediation of Scrap Metal and Metal Waste", in 
force since 15 September 1998, and the enterprise itse lf had been privatized.  The representative of 
Estonia stated that his Government had id entified the trading activities of the firms Eesti Energia  and 
Eesti Põlevkivi  as subject to the provisions of Article XVII of the GATT 1994. 
103. The representative of Estonia confirmed that it was the intent of his Government to eventually 
eliminate its State trading rôle.  He further confir med that after accession to the WTO, Estonia would 
observe the provisions of Article XVII of the GAT T 1994, the WTO Understanding on that Article, 
and Article VIII of the GATS regard ing State trading, in particular  abiding by the provisions for 
notification, non-discrimination, and the application of commercial considerations for trade 
transactions.  The Working Party took note of these commitments. 
Free Zones, Special Economic Areas
 
104. The representative of Estonia said that there were currently no free trade zones in Estonia. 
Government Procurement  
105. Some members of the Working Party asked whet her Estonia intended to join the Agreement 
on Government Procurement and requested details about Estonia's procurement legislation, its 
coverage and its conformity with WTO principles. Th e representative of Estonia said that the Law on 
Public Procurement had been adopted in May 1995 and entered into force on 1 January 1996.  The 
Law was in line with WTO provisions.  The Governme nt had established a Public Procurement Office 
to coordinate and administer public procurement ac tivities.  The legislation defined four principal 
procedures of procurement;  open tender, two-stag e tendering, negotiated tendering, and single-source 
procurement.  Open tender implied that any intere sted supplier could submit a bid and no negotiation  WT/ACC/SPEC/EST/7 
 Page 39 
 
 
 would take place between the procuring entity and any tenderer.  Two-stage tendering would be 
applied when all technical and econo mic factors could not be assessed a priori  or the procurement 
carried uncertainty regarding research and deve lopment costs.  Negotiated tendering would be 
organized in procurement subsequent to an inconclu sive round of open tender (no bids received or all 
tenders rejected) or in case public procurement involved urgent works or public procurement was 
performed by the diplomatic representation of the Republic of Estonia, i.e. procurement taking place 
outside Estonia.  Prior to the commencement of the tendering the procuring entity should notify the 
Public Procurement Office in writing about th e performance of the tendering.  Single-source 
procurement could only take place in the existence of sole suppliers, extraordinary needs or time pressure;  as a continuation of prev ious procurement contra cts;  and when the supplier would carry out 
research and development resulting in prototypes.  Again, the relevant notice in writing should be sent 
to the Office prior to the tendering procedure.  In accordance with the amendments to the Law on 
Public Procurement of 1 January 1997, the observan ce of the rules established in the Law on Public 
Procurement were not obligatory when the object ive of the public procurement was;  (i) public 
procurement involving State secrets;  (ii) printed matte r and articles of virtue;  (iii) scientific research 
and special programmes;  (iv) ela boration of legal acts and legal assistance;  (v) purchase of an 
existing building or any part thereof from a natura l person;  and (vi) public procurement established 
by other laws.   
106. Estonia requested observer status in the Committee on Government Procurement in a letter 
dated 1 October 1998 and obtai ned observer status in that  committee on 7 October 1998. 
107. The representative of Estonia confirmed that, upon accession to the WTO, Estonia would 
initiate negotiations for membership in the Agreement on Government Procurement by tabling an entity offer.  He also confirmed that, if the results of the negotiations were satisfactory to the interests 
of Estonia and the other members of the Agreem ent, Estonia would complete negotiations for 
membership in the Agreement by 31 December 2000.  The Working Party took note of these 
commitments. 
Transit
 
108. The representative of Estonia said that Estonia had joined the "Convention on Customs for 
Goods in International Transit under the TIR Carnet" in April 1993.  Departure and arrival formalities 
were completed at the customs inspection stations at the border. No customs duty, customs clearance 
charge, sales tax or excise tax were levied on goods in transit. WT/ACC/SPEC/EST/7 
Page 40  
 
 109. The representative of Estonia confirmed that  his Government would apply its laws and 
regulations governing transit operations and would act in full conformity with the provisions of the 
WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this 
commitment. 
Agricultural Policies
 
110. Some members of the Working Party requested information on Estonia's current agricultural 
policy, including main principles, and specific policies regarding tariffs and tariff bindings, trade 
measures in the grain sector, safeguards, farm  support programmes and incomes policy, price 
controls, export subsidies, privatizati on and preferential trade arrangements. 
111. The representative of Estonia said that the re turn of land to former owners had been a 
cumbersome process but the major part of agriculture had been privatized.  Remaining State 
enterprises still played an important role in the development of seeds and breeds.  Foreign ownership 
existed in the food processing industry.  Estoni a had no tariffs or non-tariff measures affecting 
agricultural imports and no subsidies or price c ontrols on food.  However, the Law on Market 
Arrangements, adopted by Parliament on 25 Septem ber 1995, would allow the introduction of tariffs.  
The 1994 Law on Grain had allowed the Government to restrict grain imports when domestic demand 
was fully covered by local production, although no quotas had ever been implemented.  Agreeing that the Law on Grain was inconsistent with the WTO and the Agreement on Agriculture, the 
representative of Estonia informed the Working Part y that the provisions in the Grain Law authorizing 
the use of import quotas when domestic demand was fully covered by local production had been 
abolished by Parliament on 25 November 1998.  Estonia used tax exemptions in the years prior to accession as a measure of domestic support. 
112.  The representative of Estonia confirmed Est onia's awareness of the WTO requirement not to 
use quantitative restrictions and to rely on customs duti es and said that this rule would be followed in 
future policy.  The representative of Estonia said that drafting of a Law on Food Licensing had not 
been completed as foreseen by the end of 1996 due to amendments made in the Food Law.  Rather than prescribing food licensing by law, it had been decided to develop secondary legislation 
regulating the issuance of licences for importing food.  The Government Resolution No. 249 "on the 
Order for Issuing State Licence for Importing Foodstuffs into Estonia" had entered into force on 
1 December 1998.  He stressed that licensing arrange ments for food imports were of automatic nature 
and did not have restrictive effect on imports.  WT/ACC/SPEC/EST/7 
 Page 41 
 
 
 113. A member was concerned about the conformi ty of Government Resolution No. 249 with 
WTO requirements.  The regulation appeared to institute a system of discretionary licensing, 
prohibited in Article 4.2 of the Agreement on Agricultur e.  In reply, the representative of Estonia said 
that Resolution No. 249 had been amended on 16 March 1999 to ensure that licences would be issued automatically to all importers submitting a complete licence application. 
114. Estonia's commitments on agricultural tariffs, on domestic support and export subsidies for 
agricultural products are in the Schedule of Concessions and Commitments on Goods annexed to 
Estonia's Protocol of Accession to the WTO. 
Trade in Civil Aircraft
 
115. A member of the Working Party sought a commitment that Estonia would implement the 
Agreement on Trade in Civil Aircraft without exceptions or transition periods at the time of accession. 
116. The representative of Estonia confirmed that Estonia would become a signatory to the 
Agreement on Trade in Civil Aircraft upon accession to the WTO.  The Working Party took note of this commitment. 
TRADE-RELATED ASPECTS OF IN TELLECTUAL PROPERTY RIGHTS 
117. Some members of the Working Party requested details about legislation and enforcement of 
intellectual property right protection in Estonia and the compatibility with requirements of the TRIPS Agreement.  Specific questions were addressed regard ing exceptions from national or MFN treatment, 
non-patentable inventions, protection of plant varietie s, patent holders' rights, extension of patent 
terms, granting of compulsory licences, judicial review, semiconductors, copyright, trademarks, 
industrial design and competition and anti-trust. 
118. The representative of Estonia said that Est onia deemed its intellectual property right 
protection compatible with the TRIPS Agreement with  no exceptions to the principles of national and 
MFN treatment.  The status of legislation on inte llectual property in Estonia as per December 1998 is 
presented in Table 7.  He added that the Patent  Office had opened in March 1992.  During 1992 and 
1994 Estonia had enacted  a Patent Law;  a Utilit y Model Law;  a Trademark Law; and a Copyright 
Law, and provisions related to TRIPS-obligations had been included in the Law on Competition of 
11 March 1998.  A Law on Industrial Design Protection had been prepar ed and adopted by Parliament 
on 18 November 1997;  the Law had entered into force on 11 January 1998.  The Trademark Law had 
been amended in 1995, 1996 and 1997.  Legislation on industrial property was said to be modelled on 
corresponding laws of the Nordic countries and Eu ropean and international legislative acts.  WT/ACC/SPEC/EST/7 
Page 42  
 
 According to the Constitution, the provisions of an international treaty ratified by Parliament 
prevailed over national law.  An indication of this rule was included in all intellectual and industrial 
property laws. 
Table 7:  Status of Legislation on Intelle ctual Property in Estonia (January 1999)
 
TRIPS Agreement Laws and other legal provisions 
addressing and covering the subject 
matters Effective and draft legislation relating to 
requirements of the WTO TRIPS 
Agreement 
Part II, Section 1 Copyright and related 
rights Copyright Act of 1992 
The Act Amending the Criminal Code 
and the Code of Administrative Offences of 1995 Effective and full compliance with WTO 
TRIPS requirements ensured 
 
Part II, Section 2 
Trademarks Trade Marks Act of 1992 as amended 
in 1997 
 Effective and full compliance with WTO 
TRIPS requirements ensured   
Part II, Section 3 
Geographical Indications Trade Marks Act of 1992  
Competition Act of 1998 Requirements of TRIPS Art. 22-23 are 
covered. 
Protection of geographical indications 
will be addressed more specifically in a new act to be adopted in 1999. 
Part II, Section 4 Industrial Designs Industrial Design Protection Act of 
1997 
 Effective and full compliance with WTO 
TRIPS requirements ensured 
Part II, Section 5 Patents Patent Act of 1994 as amended in 1998 
Utility Model Act of 1994 Effective and full compliance with WTO 
TRIPS requirements ensured    
Part II, Section 6 Layout Designs Protection of Layout-Design of 
Integrated Circuits Act of 1998 Effective and full compliance with WTO 
TRIPS requirements ensured 
Part II, Section 7 Protection of 
Undisclosed Information Patent Act of 1994 
Trade Marks Act of 1992 Industrial 
Design Protection Act of 1997  
Protection of Layout-Design of Integrated Circuits Act of 1998 Effective and compliance with WTO 
TRIPS requirements ensured (protection 
of undisclosed information during 
registration procedures and from databases) 
Part II, Section 8 
Control of Anti-
Competitive Practices in Contractual Licenses  Draft Regulation on Block Exemptions 
of Some Categories of Technology 
Transfer and Draft Regulation on Block Exemptions of Certain Categories of 
Franchise Agreements 
Part III, Section 3  
Provisional measures Code of Civil Procedure of 1998 
Competition Act of 1998, Chapter 9 "State Supervision" and  
Chapter 10 "Liability"   Effective and full compliance with WTO 
TRIPS requirements ensured 
Part III, Section 4  
Special requirements 
related to border measures Customs Act of 1997  
Act of 1999 Amending the Copyright 
Act, the Code of Administrative Offences, the Criminal Code, the 
Consumer Protection Act and the 
Customs Act Effective and full compliance with WTO 
TRIPS requirements ensured 
Part III, Section 5  
Criminal procedures Code of Criminal Procedure of 1995 
Criminal Code of 1992 
Act of 1999 Amending the Copyright 
Act, the Code of Administrative Offences, the Criminal Code, the 
Consumer Protection Act and the 
Customs Act Effective and full compliance with WTO 
TRIPS requirements ensured  WT/ACC/SPEC/EST/7 
 Page 43 
 
 
 119. In 1994, Estonia had become full member of the World Intellectual Property Organization, 
joined the Patent Cooperation Treaty and restored its membership to the Paris Convention for the 
Protection of Industrial Property and the Berne Conven tion for the Protection of Literary and Artistic 
Works which Estonia originally joined in 1924 and 1927, respectively.  The Ministry of Culture was preparing Estonia's accession to the 1971 Geneva  Convention and the 1961 Rome Convention.  The 
texts of the Rome and Geneva Conventions had b een translated into Estonian, and Estonia was 
expected to join the Conventions by the end of 1999.  The Protocol relating to the Madrid Agreement 
on International Registration of Marks had entered into force in Estonia on 18 November 1998.  In 
response to further questions, the representative of Estonia said that plant varieties were protected 
under the 1994 Variety Protection Law and patent pr otection for micro-organism strains could be 
granted following Estonia's accession to the Budape st Treaty.  As of 14 September 1996, Estonia had 
been a member of the Budapest Treaty on the International Recognition of the Deposit of Micro-
organism for the Purposes of Pate nt Procedure.  From that date, the Estonian Patent Office had 
accepted patent applications on the micro-organism  strains and the novel use of micro-organism 
strains.  Estonia intended to acced e to the Union for the Protection  of New Plant Varieties (UPOV) 
and the Variety Protection Law would be harmonized with the 1991 UPOV Convention. 
120. Certain inventions were non-patentable (inventions contrary  to public order and morality, and 
treatment and diagnostic methods pr actised on humans or animals).  Patent protection was provided to 
equipment, methods, substances or micro-organism strains, including their combination and use for 
novel purposes, in accordance with Article 6 of the Estonian Patent Law.  Supplementary protection 
certificates for pharmaceutical and agricultural chemical products would be introduced through 
passage of the Law on Amending the Patent Law in the first half of 1999.  Provisions regarding a 
patentee's exclusive rights and exceptions were f ound in Chapter IV (sections 15, 17, 45 and 46) of 
Estonia's Patent Law.  There were  no restrictions on a patent owne r's rights to assign, transfer or 
licence rights, but a licensing agreement needed to be registered with the Patent Office to be valid.  
Compulsory licences could be granted by court order only (section 47) under terms and conditions 
consistent with Article 31 of the WTO Agreemen t on TRIPS.  Patents were not extendable under 
present legislation.  Parliament had adopted the Law on Amending the Patent Law on 16 June 1998 in 
order to establish provisions corresponding to Articles 27 and 34 of the TRIPS Agreement.  
According to paragraph 2 of Article 11 of the Patent  Law, Estonia recognized the right of priority on 
the basis of an earlier patent application filed within a period of twelve months in any other WTO Member or in a Member of the Paris Convention.  The Protection of Layout-Design of Integrated Circuits Act had been adopted by Parliament on 25 November 1998. WT/ACC/SPEC/EST/7 
Page 44  
 
 121. With respect to copyright and related rights, th e representative of Estonia said that Estonia 
applied the principle of national treatment in the protection of works.  The Copyright Law also 
protected works originating in countries where inte rnational treaties did not apply, provided that the 
other country guaranteed similar protection to the wo rks of Estonian authors or works first published 
in Estonia.  On 25 November 1998, Parliament had adopted the Protection of Layout-Design of Integrated Circuits Act, which also covered th e protection of semi-conductor layout design.  The 
conditions governing free use and free decompila tion of computer programs were set out in 
Chapter IV, Sections 24 and 25, of the Copyright  Law.  The Law did not contain provisions on 
compulsory licensing of copyrightable works and sound recordings;  full retroactive protection was provided under Sections 38 and 74.  Section 75 prescribed the limitations on rights neighbouring on 
copyright.  The collection of a levy to compensate for the use of audiovisual works and sound 
recordings had begun in January 1996. 
122. With regard to trade marks, the representative of Estonia said that signs registrable as trade 
marks were enumerated in Section 6 of the Trad e Marks Law.  The Law protected well known marks 
whether or not registered in the Republic of Estoni a.  Section 5 of the Law set out the rights (and 
limitations) granted to holders of trademarks;  regi stration satisfied notice of  the exclusive right, and 
no specific provisions restricted the licensing or tr ansfer of trademarks.  The registration of an 
assignment was not considered valid without registrati on.  Registrability of a trademark generally did 
not depend on use.  Applications were lodged with  the Patents Office, its refusal to register a 
trademark (contravention of sections 7 and 8) migh t be contested through the Board of Appeals of 
Industrial Property.  Decisions of the Appeal Boar d could be brought before a court of law.  The 
Government intended to draft a new Trademark Law in 1999. 
123. The representative of Estonia said that th e Law on Industrial Design Protection had entered 
into force in January 1998.  The legislative aspects of geographical indications of origin would be 
provided in a new Law, which would be drafted in 1999.  For the time being, geographical indications 
of origin were protected indirectly through the Trademark Law and the Law on Competition.  Trade 
secrets were not protected by separate legislation, but were covered under Article 148 of the Criminal 
Code.  Undisclosed information was protected unde r the provisions governing the abuse of business 
secrets in the Law on Competition.  Information submitted to government agencies was protected 
under the Public Service Law.  Chapter 8 of Estonia's Competition Law:  Unfair Competition was consistent with the Paris Convention and Article  40 of the TRIPS Agreement.  The Customs Law 
formed the legal basis for the prevention of im ports of infringing goods.  In accordance with 
Article 46 of the Customs Law, customs officers examined goods to check that their nature, origin, 
condition, quantity and value corresponded to the information provided in the customs declaration.   WT/ACC/SPEC/EST/7 
 Page 45 
 
 
 Proceedings could be instituted in cases of fo rged, falsified or incomplete documentation.  
Amendments to the Criminal Code and the Code of  Infringement of Administrative Law to include 
specific provisions on legal protection of industria l property had been approved by Parliament in 
1996. 
124. A member asked Estonia to become a member  of the Geneva Phonograms Convention, noting 
that the restoration of protection for copyrighted  works was required under Article 14 of the TRIPS 
Agreement which applies Article 18 of the Berne C onvention, mutatis mutandis, to sound recordings.  
Protection of industrial designs, semiconductor chip layout designs and new plant varieties was also required under TRIPS.  On patents, this member ask ed for confirmation that a court, in deciding on a 
compulsory licence, would follow the procedures outlined in Article 8, paragraph 6 of its bilateral agreement with Estonia. 
125. In reply, the representative of Estonia said th at Estonia was preparing to accede to the 1971 
Geneva Convention, the 1961 Rome Convention a nd the Union for the Protection of New Plant 
Varieties (UPOV).  Accession to the Geneva and Ro me Conventions, and to UPOV, was scheduled to 
take place before the end of 1999.  Parliament ha d adopted the Law on Industrial Design Protection in 
November 1997, and the Protection of Layout-Design of Integrated Circuits Act in November 1998. 
126. The representative of Estonia stated that Est onia would fully apply all the provisions of the 
Agreement on Trade-Related Aspects of Intellectual  Property Rights from the date of its accession to 
the WTO, without recourse to any transitional period.  The Working Party took note of this 
commitment.  
POLICIES AFFECTING TRADE IN SERVICES 127. In the interest of accelerating the process of accession to the WTO Agreement, the 
representative of Estonia submitted Estonia's draf t schedule of specific commitments in services 
(document WT/L/59), and a Revised Draft Schedule of Specific Commitments in Trade in Services 
(document WT/ACC/EST/6). 
128. Some members of the Working Party commented  on Estonia's draft schedule of commitments 
on trade in services.  In their view, the initial offer was not sufficient since the documentation 
indicated an open services regime and Estonia ha d entered unbound in several modes of delivery.  
Specific questions covered procedures or restrict ions on the entry of foreign labour, including 
lawyers, architects and accountants and cross-border tr ade in such services;  market access conditions, 
cross-border trade, the effect of the economic st abilization programme, and r ecent legislation in the WT/ACC/SPEC/EST/7 
Page 46  
 
 financial services sector;  licensing of operators in telecommunications and air transport;  restrictions 
on foreign investment;  establishment of trade offices and  the coverage of services in preferential 
trading arrangements. 
129. The representative of Estonia presented a revised services schedule undertaking further 
commitments.  According to the representative of Estonia the unbound entries in the first draft 
reflected the lack of specific regulations with re gard to specific services.  He added that visa 
regulations governed the temporary entry of foreigne rs;  a residence permit and a work permit was 
required for foreign personnel to take up employ ment in Estonia.  The annual immigration quota 
corresponded to 0.1 per cent of Estonia's population.  Foreign lawyers, architects and accountants could act as consultants to Estonian firms and ther e were no legal obstacles to the purchase of such 
services abroad.  The representative of Estonia stated  that the financial services sector was free from 
restrictions and that no restrictive measures were pl anned for the near term.  Estonia confirmed that 
foreign suppliers were not treated less favourably than national provi ders of financial services, with 
the exception of some special requirements concer ning foreign-owned insurance companies indicated 
in its draft Schedule of Specific Commitments (WT/ L/59).  Applications to establish representation 
offices or subsidiaries in banking were addressed to the Bank of Estonia.  Recent amendments in 
financial sector legislation incl uded further regulations on prudentia l requirements and the adoption of 
a new Credit Institution Law with additional instruments for the supervisory authority and provisions on money laundering.  The Estonian securities market was in its early stages of development, but 
growth had been substantial.  The demand for insu rance had been boosted by compulsory insurance 
for motor vehicles. 
130. With regard to telecommunications, the represen tative of Estonia said that a foreign firm 
would need a foreign investment licence and regist er as a legal person in Estonia to do business in 
telecommunications. A concession conferring monopoly rights to "Eesti Telefon" (Estonian 
Telephone) was valid until year 2003.  The Law of Broadcasting (Article 22) limited foreign 
ownership and possessi on of broadcasting transmitters to le ss than 50 per cent of the shares. 
131. With regard to transportation, the representa tive of Estonia said that only companies 
registered in Estonia could obtain a licence for conve yance of goods and passengers;  a ferry had to be 
owned by a citizen of Estonia or a company w ith headquarters in Estonia and have a minimum 
51 per cent national ownership.  The shipping company "Estline" currently had a monopoly concession, valid until August 1999, on the conveyan ce of passengers between Estonia and Sweden.  
Aviation licences were issued to permanent reside nts of Estonia or legal persons with minimum  WT/ACC/SPEC/EST/7 
 Page 47 
 
 
 51 per cent resident or national ownership.  Air ca rriers operating in Estonia included Estonian Air 
and several foreign carriers. 
132. The representative of Estonia stated that Estonia did not prohibit foreign services suppliers 
from establishing trade offices in any sector an d that no services sectors and activities were 
completely closed to foreign companies.  Certain services activities were subject to licensing;  the 
required licences and the corresponding regulatory aut horities are listed in Table 4.  Licensing 
requirements such as the Foreign Investment Licence and the Licence of Activity fell under GATS 
Article VI (Domestic Regulation) and were acco rdingly not indicated in  the GATS Schedule of 
Estonia.  In sectors in which Estonia would undertake specific commitments, Estonia would not apply technical standards, licensing or qualification requirements that nullify or impair such specific requirements in a manner not complying with the crit eria outlined in subparagraph 4 of Article VI of 
the GATS, or which could not reasonably have been expected of Estonia at the time the commitments 
were made.  Regarding Estonia's commitments on professional services, Estonia would provide for 
adequate procedures to verify the competen ce of professionals of any other Member. 
133. He added that Estonia's free trade agreements  mainly covered goods;  no current agreement 
gave any country preferential stat us in services trade in Estonia. 
134. Estonia's Schedule of Specific Commitments on Serv ices is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this Report (see paragraph 143 belo w).  This Schedule of 
Specific Commitments on Services contains th e legally binding market access commitments of 
Estonia in respect of services. 
TRANSPARENCY Publication of Information on Trade
 
135. The representative of Estonia said that Ar ticle 2 of the Law on Official Journal " Riigi 
Teataja " (State Gazette) stipulated 14 different groups of legislative acts (normative acts) to be 
published in the Official Journal " Riigi Teataja " (State Gazette), including:  (i) Laws, decisions, and 
declaration of Parliament;  (ii) decisions and regulat ions of the President;  (iii) regulations and orders 
of Government;  (iv) regulations of ministers;  a nd (v) the annual report and ge neral regulations of the 
Central Bank.  Prompt publication of laws and nor mative acts ensured the highest transparency 
possible.  He added that the Official Journal "Riigi Teataja"  (State Gazette) was available on the 
internet (www.rk.ee/~teataja). WT/ACC/SPEC/EST/7 
Page 48  
 
 136. The representative of Estonia said that, at the la test from the date of accession, all laws and 
other normative acts related to trade would be published in the Official Journal " Riigi Teataja " (State 
Gazette) promptly and no law, rule, etc. related to international trade would become effective prior to 
such publication.  He further stated that Estonia would fully implement Article X of the GATT 1994 and the other transparency requirements in WTO Agreements requiring notification and publication. 
Notification
 
137. The representative of Estonia said that, at the latest upon entry into force of the Protocol of 
Accession, Estonia would submit all initial notifica tions required by any Agr eement constituting part 
of the WTO Agreement.  His Government would notify its Innovation Fund at the latest upon entry into force of Estonia's Protocol of Accession.  An y regulations subsequently enacted by Estonia which 
gave effect to the laws enacted to implement an y Agreement constituting part of the WTO Agreement 
would also conform to the requirements of that Agreement.  The Working Party took note of this 
commitment. 
TRADE AGREEMENTS 138. Some members of the Working Party enquired a bout Estonia's preferential agreements with 
the European Union and EFTA States, Latvia and Lithuania, further plans to conclude such 
agreements, including a possible Baltic Customs Union,  and the existence of countertrade agreements 
with former CMEA members.  Questions were also raised concerning the consistency of Estonia's free 
trade agreements with the requirements of Arti cle XXIV of the GATT 1994, in particular the 
obligation to cover substantially all the trade between  the constituent territories.  A member requested 
information on the scope of Estonia's preferential agreements with particular attention to sectors 
where all measures and charges on trade had not yet been eliminated. 
139. The representative of Estonia replied that Esto nia had preferential trade agreements with 
EFTA States;  the EU;  Faroe Is lands;  Latvia and Lithuania;  the Czech Republic;  the Slovak 
Republic;  Poland;  Slovenia;  Turkey;  Ukraine a nd Hungary.  In 1998, about 73 per cent of Estonia's 
foreign trade was subject to preferential ag reements.  The Free Trade Agreement with the 
European Union had entered into force on 1 Janua ry 1995, also covering new members Austria, 
Finland and Sweden.  Estonia's Free Trade Agreement with the European Communities had been 
notified to the WTO in document WT/REG8/N/1 and was being examined in accordance with normal 
practice (document WT/REG8/1 contained the Agreement and document WT/REG8/2 the Terms of Reference).  The Free Trade Agreement with EFTA States had been notified to the WTO in document WT/REG28/N/1;  additional relevant docum entation included document WT/REG28/1 (the  WT/ACC/SPEC/EST/7 
 Page 49 
 
 
 Agreement), document WT/REG28/2 (Standard Format) and document WT/REG28/3 (Terms of 
Reference).  The Free Trade Agreements with Sl ovenia, the Czech Republic and the Slovak Republic 
had been notified to the WTO in documents WT/REG37/N/1, WT/REG62/N/1 and WT/REG63/N/1, 
respectively.  He stated that Es tonia had no countertrade agreements with countries in central and 
eastern Europe.  The free trade agreements gene rally provided  duty free importation and exportation 
of  industrial goods (HS Chapters 25-97) while trad e in agricultural goods were covered either in 
separate agreements or related protocols.  Some quantitative and qualitative requirements applied to 
Estonia's agricultural exports. 
140. The representative of Estonia said that the 1994 Free Trade Agreement between Estonia, 
Latvia and Lithuania did not cover HS Chapters 1 to 24, but an agreement covering trade in farm 
products had entered into force on 1 January 1997.   The two agreements complemented each other 
and, taken together, constituted a free trade area in terms of Article XXIV of the GATT 1994.  He 
noted that Estonia had had the possibility, until the end of 1997, to regulate agricultural imports with tariffs under the Free Trade Agreement with the European Union.  Should Estonia apply import duties in the future under the terms of any of its free trade agreements, he confirmed that preferential 
treatment would only be accorded in the context of free trade agreements as provided for in 
Article XXIV of the GATT 1994. 
141. The representative of Estonia stated that his Government would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its trade agreements, 
and would ensure that the provisions of these WT O Agreements for notifi cation, cons ultation and 
other requirements concerning preferential trading systems, free trade areas and customs unions of 
which Estonia was a member were met from the date of accession.  The Working Party took note of these commitments. 
Conclusions
 
142. The Working Party took note of the explanations and statements of Estonia concerning its 
foreign trade regime, as reflected in this report.  The Working Party took note of the commitments given by Estonia in relation to certain specific ma tters which are reproduced in  paragraphs 15, 21, 25, 
30, 41, 50, 62, 65, 71, 75, 78, 80, 83, 85, 88, 98, 99, 103, 107, 109, 116, 126, 137 and 141 of this 
Report.  The Working Party took note that these commitments had been incorporated in paragraph 2 
of the Protocol of Accession of Estonia to the WTO. 
143. Having carried out the examination of the foreign trade regime of Estonia and in the light of 
the explanations, commitments and concessions made  by the representative of Estonia, the Working WT/ACC/SPEC/EST/7 
Page 50  
 
 Party reached the conclusion that Estonia be i nvited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this report, and 
takes note of Estonia's Schedule of Specific Commitments on Services (document WT/ACC/EST/…/Add.1) and its Schedule of Conc essions and Commitments on Goods (document 
WT/ACC/EST/…/Add.2) that are annexed to the Protoc ol.  It is proposed that these texts be adopted 
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of 
Accession would be open for acceptanc e by Estonia which would become a Member thirty days after 
it accepts the said Protocol.  The Working Party ag reed, therefore, that it had completed its work 
concerning the negotiations for the accession of Es tonia to the Marrakesh Agreement Establishing the 
WTO.  WT/ACC/SPEC/EST/7 
 Page 51 
 
 
 ANNEX 
 
Table  2:  Electricity prices (since 18 November 1997)  
 
Consumers with capacity 400kW or more per one substation or measuring system unit (group I) 
 
IA IB IC Category 
description Unit 
(1EEK = 100 sent)  voltage in connection point 
  110kV or 
more 6-35 kV less than 6kV 
Capacity charge EEK/kW per month  53.00 58.00 64.00 
and Active Energy main 
price sent/kWh 29.6 38.9 49.8 
or daytime price  
(07.00.-23.00) sent/kWh 32.6 42.8 54.8 
and night time price sent/kWh 20.4 26.8 32.4 
or daytime price  
(07.00.-12.00) sent/kWh 33.0 43.9 56.3 
daytime price  
(12.00.-23.00) sent/kWh 31.4 41.7 53.3 
and night time price sent/kWh 20.4 26.8 32.4 
and Reactive Energy 
consumption sent/kvarh 3.8 4.6 6.0 
and releasing to the 
network sent/kvarh 7.6 8.1 8.1 
 
Consumers with capacity less than 400kW per one substation or measuring system unit (group II) 
 
voltage in connection point 
less than 6kV 6-35kV Category 
description Unit 
(1EEK = 100 sent)  
Variant A Variant B II C 
Consumption charge for 1-
phase consumer EEK/A per month  2.80 - - 
Consumption charge for  
3-phase consumer EEK/A per month  8.40 - - 
and Active Energy main 
price sent/kWh 61.0 74.6 53.2 
or daytime price  
(07.00.-23.00) sent/kWh 66.9 82.2 58.5 
and night time price sent/kWh 36.4 44.9 36.7 
or daytime price  
(07.00.-12.00) sent/kWh 68.7 - - 
daytime price  
(12.00.-23.00) sent/kWh 65.1 - - 
and night time price sent/kWh 36.4 - - 
and Reactive Energy 
consumption sent/kvarh 6.0 6.0 4.6 
and releasing to the 
network sent/kvarh 8.1 8.1 8.1 WT/ACC/SPEC/EST/7 
Page 52  
 
  
Resellers (group III) 
 
The category 
description Unit 
(1EEK = 100 sent)  
Active Energy main price sent/kWh C 
or daytime price (07.00.-23.00) sent/kWh 1.06C 
and night time price sent/kWh 0.62C 
and Reactive Energy 
consumption sent/kvarh 4.6 
and releasing to the network sent/kvarh 7.7 
 
Households (group IV) 
 
The category 
description Unit 
(1EEK = 100 sent) without VAT  VAT included 
Active Energy main 
price sent/kWh 55.1 65.0 
or daytime price 
(07.00.-23.00) sent/kWh 55.1 65.0 
and night time price sent/kWh 33.1 39.0 
 
Consumers without measuring (group V) 
 
The category description Unit 
(1EEK = 100 sent)  
Consumption charge for  
1-phase consumer EEK/A per month 77.40 
Consumption charge for  
3-phase consumer EEK/A per month 232.20 
 
Night consumers and consumption re gulators 100kW or more (group VI) 
 
voltage in connection point The category 
description Unit 
(1EEK = 100 sent) 6 kV or more less than 6 kV 
Consumption charge EEK/A per month 3.00 3.50 
and Active Energy during 
night time sent/kWh 24.0 28.5 
and Reactive Energy 
consumption sent/kvarh 4.6 6.0 
and releasing to the network sent/kvarh 8.1 8.1 
  WT/ACC/SPEC/EST/7 
 Page 53 
 
 
 Table 3: Oil-shale Prices (since 1 May 1997)  
 
 Quality class MJ/kg Price for clients with 
the deviation from 
the average monthly 
shipment by less than 
±15% 
EEK/t Price for clients 
without contract or 
for those with the 
deviation from the 
average monthly 
shipment by more 
than ±15%  
EEK/t 
1 PK over 11.51 71.63 127.27 
2 1PK over 10.97 70.73 125.70 
3 2PK 10.26 - 10.97 69.75 123.95 
4 3PK 9.59 - 10.25 68.86 122.39 
5 4PK 8.54 - 9.58 67.89 120.29 
6 P over 9.21 66.92 118.96 
7 1P over 8.79 66.04 117.38 
8 2P 7.79 - 8.79 65.13 115.79 
9 3P 7.29 - 7.78 64.16 114.09 
10 4P 6.28 - 7.28 63.26 112.50 
11 5P 6.07 - 6.27 62.31 110.78 
 
Table 4:  Activities subject to licensing (Activity Licence)  
 
Activity Issuing Authority 
1. Management of aviation and sea transport (exclude small 
private boats), international car and railway transport 
(excludes intra-enterprise rail transport) Ministry of Transport and 
Communications 
2. Geology-related activities, mining of natural resources Ministry of Economic Affairs 
3. Production and trade in objects containing precious metals and 
precious stones Ministry of Finance 
4. Production, possession and trade in weapons, parts thereof, 
ammunition, or pyrotechnic equipment; repairs of weapons Ministry of Internal Affairs 
5. Production and trade in medical narcotic, highly toxic, 
radioactive, and poisonous substances. Growing plants that 
contain narcotic, highly toxic and poisonous substances. Purchase and possessing of medi cal narcotic, highly toxic, 
radioactive, and poisonous substances Ministry of Social Affairs 
6. All forms of medical treatment Ministry of Social Affairs 
7. Production of and trade in medicines Ministry of Social Affairs 
8. Import and export, as well as production and wholesale of 
tobacco and production thereof, and alcohol; and retail of 
alcohol Ministry of Economic Affairs; 
Municipal Governments 
9. Printing and minting of money Bank of Estonia WT/ACC/SPEC/EST/7 
Page 54  
 
 Activity Issuing Authority 
10. Printing of securities Ministry of Finance 
11. Printing of postage stamps Ministry of Transport and 
Communications 
12. Building and management of public communications' 
networks of any kind Ministry of Transport and 
Communications 
13. Management of an educational institution of a higher or 
general level, both vocational, or  professional; together with 
the right to issue nation wide accep ted certificates of educationMinistry of Education 
14. Management of security services' firms, installation of 
security, guard, and signalization systems Ministry of Internal Affairs 
15.  Opening and management of private detective agencies Ministry of Internal Affairs 
16. Collation of measuring instruments Ministry of Economic Affairs 
17. Production and trade in micro- organisms, plants, and animals 
created by genetic engineering Ministry of Environment 
18. Insurance Ministry of Finance 
19. Projecting, expertise and inspection of buildings, construction 
contracting activities Ministry of Environment    
20. Geodetic and cartographic activities Ministry of Environment  
21. Ecological expertise Ministry of Transport and 
Communications 
22. Management of environmentally harmfu l substances Ministry of Transport and 
Communications 
23. Transmission or broadcas ting of radio and television 
programmes by means of the ra dio and television networks Ministry of Culture 
24. Management of casinos (gambling) Ministry of Finance 
25. Reproduction of the State symbols or their parts of the 
Republic of Estonia State Chancellery 
26. Exchange management Ministry of Finance 
27. Tourism Ministry of Economic Affairs 
28. Ships' agencies and organizing sea transport Ministry of Transport 
29. Lotteries Ministry of Transport and 
Communications 
30. Assessment of land property, selling a nd buying land Ministry  of Environment 
31. Activities on the securities' market Ministry of Finance 
32. Veterinary activities, veterinary practice Ministry of Agriculture 
33. Temporary storage of commercial goods, customs-storage 
procedures Ministry of Finance 
34. Commercial trade (imports, re-exports), wholesale and retail, 
and storage of imported fuels and lubricants Ministry of Economic Affairs  WT/ACC/SPEC/EST/7 
 Page 55 
 
 
 Activity Issuing Authority 
35. Production and repairs of  weapons, ammunition, and 
technology for national defence purposes Ministry of Defence 
36. Experiments with animals Ministry of Agriculture 
37. Management of imports and exports, as well as other trade, 
services, repairs, and dissem bling of motor vehicles and 
trailers Ministry of Economic Affairs 
38. Assessment of personal protective equipment types, quality 
certification; assessment of machinery and equipment types National Labour Inspec tion 
Board 
39. Logopedical aid Ministry of Social Affairs 
40. Conservation, restoration, cr eating of repairs projects, and 
carrying out the corresponding activities on the objects of cultural importance (the objects of archaeological, architectural, technological, and historical value, objects of fine arts) Ministry of Culture 
41. Classification of goods and measuring of goods for customs' 
purposes Ministry of Finance 
42. Commercial mediation of scrap metal and metal waste Ministry of Economic Affairs 
43. Importation of food stuffs Ministry of Agriculture WT/ACC/SPEC/EST/7 
Page 56  
 
  
APPENDIX 
 
ACCESSION OF ESTONIA 
 
Draft Decision
 
  
 The General Council, 
  Having regard
 to the results of the negotiations dire cted towards the es tablishment of the 
terms of accession of the Republic of Estonia to the Marrakesh Agreement Establishing the World 
Trade Organization and having prepared a Protocol for the Accession of Estonia, 
  Decides
, in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of Estonia may accede to the Marrakesh Agreement Establishing the World Trade Organization on the terms set out in the said Protocol.  WT/ACC/SPEC/EST/7 
 Page 57 
 
 
 PROTOCOL OF ACCESSION OF ESTONIA 
TO THE MARRAKESH AGREEM ENT ESTABLISHING THE  
WORLD TRADE ORGANIZATION  
 
Draft  
 
 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Republic of Estonia (hereinafter referred to as "Estonia"),  
 
 Taking note  of the Report of the Working Party on the Accession of Estonia to the WTO in 
document WT/ACC/EST/.... (hereinafter referred to as the "Working Party Report"),  
 Having regard
 to the results of the negotiations on the accession of Estonia to the WTO, 
  Agree
 as follows: 
 
Part I - General  
 
1. Upon entry into force of this Protocol, Estonia accedes to the WT O Agreement pursuant to 
Article XII of that Agreement and th ereby becomes a Member of the WTO. 
 
2. The WTO Agreement to which Estonia acced es shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal instruments as may have entered into force before the date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred to in paragraph 142 of the Working Party Report, shall be an integral part of the WTO Agreement. 
 
3. Except as otherwise provided for in the para graphs referred to in paragraph 142 of the 
Working Party Report, those obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be implemented over a period of time starting with the entry into force of that Agreement shall be implemented by Estonia as if it had accepted that Agreement on the date of its 
entry into force. 
 WT/ACC/SPEC/EST/7 
Page 58  
 
 4. Estonia may maintain a measure inconsistent with paragraph 1 of Article II of the GATS 
provided that such a measure is reco rded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
Part II - Schedules
 
 
5. The Schedules annexed to this Protocol sh all become the schedule of Concessions and 
Commitments annexed to the General Agreement on  Tariffs and Trade 1994 (hereinafter referred to 
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement 
on Trade in Services (hereinafter referred to as "GATS") relating to Estonia.  The staging of 
concessions and commitments listed in the Sche dules shall be implemented as specified in the 
relevant parts of the respective Schedules. 
 6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of that Agreement, the applicable date in respec t of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 
Part III - Final Provisions
 
 
7. This Protocol shall be open for acceptance,  by signature or otherwise, by Estonia until 
31 October 1999.  8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.  
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance thereto pursuant to paragraph 7 to  each member of the WTO and Estonia. 
 
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the 
Charter of the United Nations.    Done at Geneva this ... day of  .... one thousa nd nine hundred and ninety nine, in a single copy 
in the English, French and Spanish languages each text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages.  WT/ACC/SPEC/EST/7 
 Page 59 
 
 
 ANNEX 
 
SCHEDULE – REPUBLIC OF ESTONIA  
 
Part I - Goods 
 
[Circulated in document WT/ACC/SPEC/EST/7/Add.1] 
  
Part II - Services 
 
[Circulated in document WT/ACC/SPEC/EST/7/Add.2] 
 
__________ 