RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG34/4
9 April 1999
(99-1418)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF SLOVENIA
AND THE REPUBLIC OF LATVIA
Questions and Replies
This document reproduces questions addressed to the Parties and the joint responses provided
by them.  The questions and replies set out below are organized in accordance with document
WT/REG34/3.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
3. Scope and Product Coverage
Article 2 (Scope) seems to suggest that the Free-Trade Agreement (FTA) covers only
Harmonized System (HS) Chapters 25-97 and th at the general provisions of the agreement do
not apply to HS Chapters 1-24.  This would suggest that substantially all trade is not covered by
the agreement.  Most of the concessions applied on the limited number of agricultural products
in the protocol are tariff quotas.
 
The FTA covers also products of HS Chapter 1-24 which are specified in Protocol A.  In spite
of the fact that most of the concessions applied on the limited number of agricultural products in the
protocol are tariff quotas, the agreement does cover substantially all trade which is supported by the
fact that 97 per cent of all mutual trade is traded at zero customs duty.  More data can be found in
WT/REG34/3.
What percentage of FTA trade (both in total and by sector) between the parties (for
each party):
- has the duties eliminated?
- has other regulations of commerce eliminated?
- is given concessions (rather than having duties etc. removed)?
- is excluded from the FTA?
All data has been provided in Annex I to WT/REG34/3.WT/REG34/4
Page 2
Please provide details on the types of products of Chapters 25-97 which are excluded
from the Agreement?  Are these products subject to MFN rates of duty?
Annex I - MFN Duty
CN Code Product Description 1997 (USD)
3502 Albumins, albuminates and other albumin derivatives: -
3502 10 Egg albumin: -
3502 10 91 Dried (e.g. in sheets, scales, flakes, powder) -
3502 10 99 Other -
3502 90 Milk albumin (lactaalbumin) -
3502 90 51 Dried  (for example,  in sheets, scales, flakes, powder) -
3502 90 59 Other -
4501 Natural cork, raw or  simply  prepared; waste cork; crushed, granulated or round cork -
5201 00 Cotton, not carded or combed 82,239
5301 Flax, raw or processed but not spun; flax tow and waste (including yarn waste and
gartnetted stock)-
5302 True hemp (Cannabis sativa L.),  raw or processed but not spun; tow and waste of true hemp
(incl. yarn waste and gartnetted stock)-
Yes, these products are subject to MFN rates of duty.
Please provide details on the types of produc ts of Chapter 1-24 which are included in the
Agreement.
Annex I to Protocol A - Imports into Latvia - MFN Minus
CN Code Products Description 1997 (USD)
040690 Cheese (emmentaler and sbrinz) -
0701 Potatoes (period from 01.06 to 01.07) -
0704 Cabbages, cauliflower (period from 15. to 15.06) -
1601 Sausages -
1602 Meat preserves -
ex 170490750 Toffees, caramels and similar sweets -
1806 Chocolate and other food preparations containing cocoa -
1902 Pasta -
1905 Bread, pastry, cakes, biscuits and other bakers' wares -
200990 Mixtures of fruit juices -
2104 Soups and preparations 164
2105 Ice cream -
220110 Mineral waters and aerated waters -
2204 Wine -
2209 Vinegar -WT/REG34/4
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Annex II To Protocol A - Imports into Slovenia - MFN Minus
CN Code Products Description 1997 (USD)
040640 Blue-veined cheese -
08081010 Cider apples -
110813 Potato starch -
1601 Sausages -
1602 Meat preserves -
170490750 Toffees, caramels and similar sweets -
180690 Chocolate and chocolate products -
190190 Malt extract -
1905 Bread, pastry, cakes, biscuits and other bakers' wares -
2105 Ice cream -
220110 Mineral waters and aerated waters -
2203 Beer -
22089031 Vodka -
22089065 Liqueurs -
Annex III to Protocol A - Imports into Slovenia - Zero Customs Duty (No Imports in 1997)
List of products
0301 0304 2301 10 000
0302 0306
0303 0307
Annex III - Imports into Slovenia - MFN duty (No Imports in 1997)
List of products
0301 91   0302 69 650 0304 10 110
0301 93   0302 69 910 0304 10 130
0302 11       0303 21  0304 10 1900302 12 000 0303 22 000 0304 20 110
0302 40   0303 50 0304 20 130
0302 61   0303 71 0304 20 190
0302 69 110 0303 77 000
0302 69 550 0303 79 110
4. Trade Data
We would appreciate trade and tariff statistics on intra FTA-trade and MFN trade
according to major products and partners.
As can be seen in Annex II-B to WT/REG34/3, there has been only 86,7541 USD of MFN
imports into Slovenia out of 3,063,937 USD of all imports in the year 1997.  Thus, the FTA imports
amounted to 2,977,183 USD in the year 1997.
                                                     
In this number the amount of 82.239 USD is included which represents the imports of
CN Code 5201 00 900 -  Other, cotton, not carded or combed. CN Code 5201 is excluded from Chapter I and
MFN is applied.WT/REG34/4
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II. TRADE PROVISIONS
5. Safeguards
Can the parties explain whether there is  any difference in practice between the
obligations under Articles 21, 22 and 24 (Eme rgency Safeguards/Re-export/Safeguards
Procedures) and the manner in which they will operate, and the obligations of the parties under
the WTO?
The parties have no experience in introduction of measures based on Articles 21, 22 and 24;
however, they obliged themselves to respect provisions of WTO and GATT 1994.
- General safeguards:  any suspension of obligation in whole or in part or withdrawal
or modification of the concessions under these provisions shall be applied in the sense
of requirements of Article XIX of the GATT 1994 particularly the Agreement on
Safeguards unless they are based on Article XX.
- Re-export:  any export restrictions introduced under these provisions shall be applied
in the sense of the requirements of Article XI of GATT 1994 unless they are based on
Article XX.
In general there are no big differences between FTA and WTO provisions regarding
procedure for the application of such measures.  However, the differences that exist are a reflection of
the fact that the FTA is a bilateral agreement.  Thus , the procedures had to be modified to support the
bilateral relations between contracting parties.
The provisions of Article 24 follow in principle the relevant WTO provisions regarding the
application of such measures.  In addition the Joint Committee, which is responsible for the
supervision and administration of the Agreement, has the authority to examine such cases.
Measures taken under the provisions of agreement can be applied only toward the party to the
agreement.  However, measures taken under the provisions of GATT 1994 have to be taken toward all
contracting parties.  The party to the bilateral agreement is no exemption.
Have any safeguard measures under Article 24 been taken?  What sort of measures
have been taken, or were envisaged under this Article?
No, safeguard measures under Article 24 have been taken or envisaged.
Please provide more detailed description reg arding the intra-trade (i.e. trade between
the Parties) safeguard measure which the Parties can take under the Agreement.
All specific safeguards are of transitional nature and can be applied only when serious
disturbance on the market occurs.  Such action can be only taken toward concessions granted underthe FTA.  The nature of the measure is decided case-by-case.  No measures can be taken for industrial
products.
Will balance of payments (BOP) measures under Article 23 be applied in a
non-discriminatory manner and without prejudice to the interests of non-parties to thisagreement?
Yes, BOP measures under Article 23 will be applied in a non-discriminatory manner and
without prejudice to the interests of non-parties to the agreement.WT/REG34/4
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7. State-Aid and Countervailing Measures
We acknowledge that competition policy (Artic le 16) is not covered in explicitly by the
WTO rules.  However, certain aspects of competition are captured by various WTO rules and
we therefore would be grateful for comments on the following question.
What criteria are to be applied in assessing whether actions prevent, restrict or distort
competition, or whether actions by dominant undertakings constitute an abuse of their position?
Are these considerations subject to specific legally based processes?
No further criteria have been defined in Article 22 of the agreement.  The assessment of
conduct of undertakings is made on a case-by-case basis, taking into consideration the effects ofcompetition and trade between the parties.  The implementation of provisions of Article 22 does not
discriminate against interests of non-parties to the agreement.
Under Article 17 (State Aid) the Joint Commi ttee shall keep the situation on State Aid
under review and elaborate rules.  Has the Joint Committee elaborated rules on State Aid?  Has
either party taken appropriate measure under Article 17:4?
The Joint Committee has not elaborated rules on State Aid yet and neither party has taken any
measures under Article 17:4.
IV. OTHER
2. State Monopolies
Which products are currently subject to state monopolies (Article 18)?  This Article
suggests that state monopolies might currently dis criminate in their commercial decisions.  Can
the parties confirm that such monopoli es operate in a manner consistent with
GATT Article XVII in their purchases from and sales to third countries?
There are no products currently subject to state monopolies in Slovenia.  The objective of the
Article has been to clearly ensure that there wo uld be no discrimination.  Both parties are bound by
the existing provisions and obligations of Article XVII.
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