WT/TPR/S/91 Trade Policy Review
Page 76
IV. TRADE POLICIES BY SECTOR
(1) O VERVIEW
1. Slovakia’s structure of production has conti nued to change during the review period, away
from agriculture and to a lesser extent manufacturing, towards services.  Services accounted for 73%
of GDP in 2000, up from 68% in 1994.  Agriculture’s share over this period continued to decline from
almost 7% to 4%, and that of manufacturing from 24% to 22%.
2. Slovak sectoral policies are largely influenced by EU accession requirements.  The
Government's objectives are to promote trade and investment as the basis of economic prosperity.
While industrial restructuring initially concentrated on shrinking production, recent evidence suggests
that some manufacturing activities are beginning to record positive developments, based on emerging
new export markets and foreign investment.  These include motor vehicles, machinery and equipment,primary plastics, and rubber and plastic products.  Other sectors, such as textiles, garments and leather
production, and food processing, have performed poorly.
3. The pace and depth of reform has varied substantially across sectors.  Trade and economic
reforms in agriculture were largely reversed since the mid 1990s.  The sector’s Producer Support
Estimate (PSE) averaged 22% in 2000, compared with 1% in 1996 and 8% in 1997.  Agriculturalassistance levels are likely to increase following EU accession.  Slovakia’s diverging sectoral policies
may widen disparities in assistance, potentially causing substantial costs to the economy.
4. Renewed privatization efforts, especially in key services, such as finance and
telecommunications, should help improve economic efficiency.  Privatization of these sectors, aided
by foreign participation, is facilitated by on-goin g deregulatory reforms designed to replace state-
owned monopolies with competitive markets.  Regulatory authorities are being established in key
sectors to safeguard competition.
(2) A
GRICULTURAL AND OTHER PRIMARY PRODUCTS
5. The share of agriculture (including forestry) in GDP has declined since Slovakia's previous
Trade Policy Review, from 6.6% in 1994 to 4.1% in 2000 (Chart IV.1).1  Agricultural GDP
nevertheless increased over this period from Sk 29.3 billion to Sk 36 billion.  The sector’s share of
employment also fell over the same period, from 9.3% to 5%.  However, agriculture still plays animportant role in the Slovak economy, with almost half of the population living in rural areas;  many
rural communities depend heavily on agriculture.  A large share of Slovakia’s poorest population lives
in these areas where there are few economic activities apart from farming.  About half of Slovakia’s
land is used for agriculture.
                                                          
1 However, such sectoral shares may underplay the significance of agricultural development.
Agriculture, defined much more broadly as agri-business to include food processing and many services such asmarketing and distribution, represents a much larger share of GDP, as it includes many activities that would
traditionally be classified as "manufacturing" and "services".  As an economy develops, agri-business becomes
more complex and agriculture is increasingly integrated with other sectors in the economy.  Thus, although bothagriculture and agri-business decline - albeit still usually growing - relative to other sectors, with development,these linkages intensify so that developing efficient agri-business sectors with large foreign investment canprovide an important impetus to economic growth.Slovak Republic WT/TPR/S/91
Page 77
6. Commercial agriculture accounts for most of agricultural output.  The privatization of
Slovakia’s farms is now virtually complete.2  At end 1999, less than 1% of farmland was state owned.
Collective and state-owned farms were replaced with privately owned co-operative farms.3  Many of
these were subsequently restructured into corporate farms.4  At end 1999, corporate farms accounted
for 27% of farmland, compared with zero in 1989.  Over the same period, the share of co-operative
farms declined from 69% of farmland to around 50%.  Individual holdings have increased over thesame period from 4% to 9%.  Farm sizes vary, averaging about 10 hectares for individual farms to
over 1,500 hectares for the co-operative farms and up to 2,000 hectares for corporate farms.
7. Despite substantial efforts by the Ministry of Agriculture to register private land and
administer titles using the cadastral system, land restitution and registration is incomplete.
5
Uncertainty over land ownership remains a major obstacle to farm investment and development.Ownership uncertainties also discourage the long-term leasing of land and reduce availability of farm
                                                          
2 The privatization of state farms accelerated quickly in 1996 as a result of the privatization of all farm
assets through direct sales organized by the National Property Fund.  By end 1996, almost three quarters offarmland had been privatized.  This process was almost completed in 1997.
3 Some 98% of collective farms opted for transformation into co-operative farms.
4 These are large farms run by joint-stock companies with limited liability.  Splitting co-operatives as
several corporate farms and using bankruptcy proceedings became an effective means of extinguishing the high
pre-transition debts inherited by co-operative farms.  Extinguishing the accumulated debt of co-operative farms,
estimated currently at Sk 4.8 billion, remains one of the major structural problems facing the farm sector.
5 The Slovak Land Fund is responsible for restitution of land to entitled persons. Of the total
agricultural land area of 2,400,000 ha, one quarter is currently privately owned, and about 5% is state owned.Chart IV.1
Sectoral composition of GDP, current prices, 1994 and 2000
Per cent
 Imputed banking services charges, indirect taxes and own supplies.
IMF (2001 ), "Slovak Re public: Selected Issues and Statistical A ppendix", Staff ReportNo. 01/129,  Au gust.a
Source:Agriculture
6.6
Mining and quarrying 0.9
Manufacturing
24.1
Electricity 3.5Construction 4.6
Transportation
6.8 Communicatio
nWholesale and 
retail trade
26.2Other market 
services
8.5Non-market 
services
12.0Othera
4.9Agriculture
4.1Mining and 
quarrying
0.8
Manufacturing
21.8
Electricity 3.7Construction
4.8
Transportation
7.5
Communication
2.7Wholesale and 
retail trade
15.1Other market 
services
18.5Non-market 
services
12.0Othera
9.21994 2000
Total GDP:Sk billion 441.3 Total GDP:Sk billion 887.2 Services
68.4Industry
25.0Services
73.4Industry
22.6WT/TPR/S/91 Trade Policy Review
Page 78
credit due to collateral problems.6  Greater land consolidation would increase farm efficiency.  Rigid
restrictions also prohibit foreign ownership of agricultural land.7  Agricultural investment remains
relatively low - the annual value of fixed assets in farming has declined continuously since 1994.
Farms are increasingly poorly mechanized as equipment becomes more obsolete due to inadequate
investment.8  Farming profitability continues to decline, especially for livestock production.  Losses in
1999 were twice those in 1998, largely due to increased input costs, lower yields, reduced outputprices, and unfavourable climatic conditions.  Overall, Slovak agriculture is said to be currently
inefficient by European and world standards, and to face declining crop yields and stocking rates.
9
8. Most farming is mixed, although limited specialization is occurring among the larger farms.
Livestock currently accounts for just over half (54%) the value of agricultural production.  Livestock
production was far more affected by the transformation process, because of its greater capital intensityand generally less flexible production methods used by co-operative farms, where most grazing
occurs.  Moreover, livestock products have experienced the largest reductions in farm assistance.
Demand for livestock products, especially meat and milk, also contracted more sharply than for crops
during the 1990s.
(i) Policy and assistance trends
9. Slovakia is traditionally a net importer of agricultural products, partly due to temporary
shortages created by extreme climatic conditions.  About two thirds of Slovakia’s food imports are
commodities not produced domestically, including coffee, certain alcoholic beverages, cocoa, and
cigarettes.  Most growth in food imports has been in this group of commodities, increasingly from the
EU but also from the Czech Republic, which do not compete directly with domestic production.
10
Remaining food imports are mainly commodities, such as dairy products, meat, cereals, and sugar,also produced by Slovakia.  The share of these imported commodities is reduced by food self-sufficiency policies, and the substantial protection provided many of these products, including export
subsidies on certain commodities.
11  It is in these sectors that the greatest backlog and need for
restructuring remains.  For example, Slovakia, traditionally a net importer of sugar, has produced all
its requirements since 1996 and has exported sugar in some years, assisted by subsidies.  Since 1991,
Slovakia has produced surplus output that has benefited from increased export subsidies on malt andpreviously on cereal and flour products. Dairy production also benefits from substantial export
subsidies on processed products, including milk powder.
10. Slovak agricultural policy provides for relatively high MFN tariffs, of up to 100%, on some
commodities.  Some import quotas are in place, such as currently, bilaterally, on imported sugar from
                                                          
6 The lack of commercial mortgages involving farmland in Slovakia is because land may not be
pledged as collateral due to unsettled titles.  See Ministry of Agriculture(1999) (Green Report), p. 44.
7 Under the framework of negotiations for accession to the EU, Slovakia has requested a transitional
period of seven years for restricting foreign ownership of agricultural land.
8 Based on national account figures, the share of agricultural investment in total investment has fallen
from 4% in 1995 to 3% in 2000.  See IMF (2001a). p. 73.
9 Hectare crop yields in 1999-2000, for example, ranged from 42% (potatoes) to 71% (wheat) of EU
levels.  Production efficiency of livestock is also well below EU levels.  See Ministry of Agriculture (2000a),pp. 3-4.
10 EC (1998), p. 35.
11 Agricultural policy is to improve Slovakia’s foreign trade balance in agricultural and food products
by "supporting production and export of exportable products (malt, dairy products, frozen and tinned goods,pasta, selected oil products) using export subsidies up to the WTO limit and taking into account the export
conditions in neighbouring countries (especially the Czech Republic, Poland and Hungary)".  Ministry ofAgriculture (2001), p. 12.Slovak Republic WT/TPR/S/91
Page 79
the Czech Republic12, and from all other sources as Slovakia’s first multilateral safeguard measure.
Slovakia also applies a complex system of tariff quotas on major agricultural products, which, in
practice, provides only limited access at lower in-quota tariff rates.  Both bilateral, favouring regional
trading partners, and multilateral tariff quotas apply.  Through prohibitively high out-of-quota tariff
rates, these tariff quotas effectively operate mainly as restrictive import quotas with volume levels set
relatively low.  Many of the multilateral tariff quotas applied by Slovakia under the WTO AgriculturalAgreement are substantially under-filled.  By counting preferential imports towards multilateral
quotas, Slovakia’s bilateral tariff quotas also undermine global access on products where they overlap
with MFN tariff quotas and, as is generally the case, provide lower in-quota preferential rates.
Production of certain commodities benefits from multiple forms of assistance measures, including
border protection and domestic support payments.
(a) Policy developments
11. Slovak agricultural and trade-related policies are almost exclusively directed towards
harmonization and application of the EU Common Agri culture Policy (CAP), which are necessary for
EU accession.  The "primary national and strategic interest" of Slovak agricultural polices is food
security, defined as self-sufficiency, supplemented by the importation of certain types of foodstuffs toenhance the domestic market.
13  In Slovakia, this requires maintaining domestic supply to at least 90%
of current domestic demand for basic commodities, namely cereals, meat, and milk.
12. Within the WTO agricultural negotiations, Slovakia is of the view that the so-called "non-
trade concerns" must be treated equally, especially the social implications of liberalizing agricultural
trade.14  Slovakia also supports the views on multifunctionality of agriculture in contributing to
environmental, social, and other functions.  These roles are seen to include the provision of affordable
high-quality and safe food, as well as conservation and development of natural resources, preservationof cultural character of the landscape, maintenance of employment and rural structure of settlement.
15
13. According to the Government’s policy statemen t, implementing such a model of agricultural
development will "place high demands on resources flowing to the agricultural sector, either from
consumers (through high prices of foodstuffs) or  from tax payers (through budgetary transfers)."16
With these objectives in mind, Slovakia intends changing its agricultural support policies to:
− increase the efficiency of existing income support for agriculture through its
diversification and clear specification of its purpose;
− gradually change the support scheme (from 2001) of less favoured areas by moving to
multi-level support, which means separating the support oriented at maintenance of
                                                          
12 Government sanctioned auto-limitation agreements between respective producers’ associations also
apply on some sensitive foodstuffs imported from the Czech Republic, as well as import monitoring of manyproducts, under custom union arrangements (Chapter III).
13 The Government views the means of food security to be: "self-sufficiency in the production of
foodstuffs; sufficient supply of foodstuffs; accessibility of foodstuffs for consumers; nutritional adequacy and
wholesomeness of foodstuffs.  The necessary level of self-sufficiency is seen to be determined by the risk ofprice shocks and shortages.  Food security is on the one hand a means of protection against risk, and on the otherhand it is closely linked to the overall economic and commercial position of the country.  As a rule, the lessfavourable the foreign balance of a country, the higher degree of food security it strives for."  Ministry of
Agriculture (2001), p.4.
14 Ministry of Agriculture online information:  "Nature and Food Safety", Address by the Minister of
Agriculture at the Agribusiness Forum 2001.  Available at:  www.mpsr.sk/english/dok/prejav.htm.
15 Ministry of Agriculture (2001), p. 8.
16 Ministry of Agriculture (2001), p. 9.WT/TPR/S/91 Trade Policy Review
Page 80
the landscape, fulfilment of environmental tasks and suitable agricultural production
for these areas; and
− orient other support (for all areas) at "purpose-oriented programmes for the desirable
production, investment renewal and restructuring" of the food sector, rural
development, diversification of agricultural production, development of general
services, environmental programmes as well as increasing the quality and safety of
the food produced.17
14. Particular emphasis is also placed on adaptation and expansion of the role and operations of
the State Fund for Market Regulation (SFMR) and the system of direct payments to comply with EU
requirements for administering the CAP.  To facilitate the adoption of the CAP, the SFMR is to be
transformed into an intervention agency adopting the EU system gradually from 2002.  The
Government intends to approve the Act on the intervention agency and on organization and support ofagricultural markets during 2001.  Market rules for intervention, based on EU principles, will be
prepared gradually, firstly for milk, cereals, oilseeds, and sugar from 2002, and for cattle, legumes,
wine, fruit, and vegetables from 2003.  These rules are to specify the support instruments to be used
for each commodity.  While they may differ between commodities, they will generally specify, where
relevant, the intervention price, the reference or minimum price, production quotas, specific directpayment schemes, including per unit payments fo r "high quality" output on some commodities, and
export subsidies.  Border measures are also specified, namely import duties and concessional tariff
quotas in line with Slovakia’s multilateral commitments, as well as the application of contingency
measures.  These marketing orders are forecast to cost a total of Sk 28.4 billion over the period 2001
to 2005, or Sk 5.9 billion in 2005.
18
15. The subsidy policy to support less favourable areas is to be changed from 2001 by transition
to a multi-level programme based on a new classification of areas as applied by the EU.  These areaswill include mountainous areas; other less favoured areas; and areas with specific disadvantages.  The
basic form of support will be direct payments per hectare of agricultural land.  Payment rates will be
differentiated within, and between, areas according to the degree of disadvantage and land use.
Payments will be aimed at preserving the minimum density of cattle and sheep.  Moreover, a special
system for financing agriculture using subsidized commercial loans will partially replace direct statesubsidies from 2002, aimed at improving efficiency of government subsidies.  In addition to using
export subsidies on selected commodities, the Government intends to improve its agricultural exports
by reviewing the non-automatic export licensing system and making more use of Eximbank support
and insurance schemes.
19
16. Implementation of the EU’s Structural and Regional Policy is also a high priority.  The
Government approved the Agricultural and Rural Development Plan (Government Resolution
No. 1007) in November 1999.  It forms part of the National Plan of Regional Development being
prepared by the Ministry of Construction and Regional Development.
(b) Assistance levels
17. Slovakia’s self-sufficiency in major foodstuffs relies on substantial government assistance,
and has been associated with considerable excess capacity in food processing industries.  Following
transformation, Slovakia’s agricultural policy reforms, including trade liberalization, reduced farm
support considerably, as measured by the OECD (Box IV.1).  The sector’s Producer Support Estimate
                                                          
17 Ministry of Agriculture (2001), p. 11.
18 Ministry of Agriculture (2001), p. 17.
19 Ministry of Agriculture (2001), p. 17.Slovak Republic WT/TPR/S/91
Page 81
(PSE) fell from 63% in 1986 to 1% in 1996.20  However, subsequently, assistance surged to 8% in
1997 and 27% in 1998, before falling slightly to 24% in 1999 and 22% in 2000 (Chart IV.2).
Farmers’ assistance, although falling slightly, remains substantial:  assistance raised their gross
returns in 2000 by on average 28%, compared with 31% in 1999 (as measured by the producer
Nominal Assistance Coefficient, or NAC).  However, the implicit tax on consumers, as measured by
the extent to which domestic food prices exceeded world levels (the consumer NAC) fell sharply,from 17% in 1999 to 5% in 2000, due to change of the main mode of delivering assistance, from price
support to direct payments.
Box IV.1
Measurement and definitions of OECD indicators of agricultural support
In 1998, the OECD method of measuring support to agriculture was revised. There are now four indicators of
support: the Producer Support Estimate (PSE), the Consumer Support Estimate (CSE), the General Services
Support Estimate (GSSE) and the Total Support Estima te (TSE). In addition, producer and consumer
Nominal Assistance Coefficients (NAC) are calculated from the PSE and CSE.
Producer Support Estimate (PSE):  an indicator of the annual monetary value of gross transfers from
consumers and taxpayers to agricultural producers, me asured at the farm-gate level, arising from policy
measures that support agriculture, regardless of their nature, objectives or impacts on farm production or
income. The PSE measures support to farmers, from consumers through higher commodity prices and from
taxpayers through budgetary transfers. The overall monetary value of this support is, of course, dependent on
the size and structure of a country’s agriculture sector, as well as on the monetary unit used. The % PSE,
expressed as a percentage of gross farm receipts, shows the amount of support to farmers, irrespective of the
sectoral structure of a given country. For this reason, the % PSE is the most widely used indicator for
comparisons of support across countries, commodities and time.
Consumer Support Estimate (CSE) : an indicator of the annual monetary value of gross transfers to (from)
consumers of agricultural commodities, measured at th e farm-gate level, arising from policy instruments that
support agriculture, regardless of their nature, objectives, or impacts on consumption of farm products. If
negative, the CSE measures the implicit burden placed on consumers by agricultural policies, from higher
prices and consumer charges or subsidies that lower prices to consumers. The % CSE measures the implicit
tax (or subsidy if the CSE is positive) on consumers due to agricultural policy as a share of expenditure at the
farm gate.
Nominal Assistance Coefficient (NAC):  the producer NAC is the ratio of the PSE to the value of total gross
farm receipts valued at world market prices, excludin g budgetary support. The consumer NAC is the ratio of
the CSE to the total value of consumption expenditure on commodities domestically produced valued at
world market prices, excluding budgetary support to consumers.
The OECD indicators also include estimates of the gross transfers to general services  provided to agriculture
collectively, arising from policy measures that support agriculture, regardless of their nature, objectives and
impacts on farm production, income or consumption of farm products. However, this assistance, called the
General Services Support Estimate (GSSE) , is not included in the PSE. It is included with the PSE as part of
the Total Support Estimate (TSE) . Categories of general support included are research and development,
agricultural schools, inspection services, infrastructu re, marketing and promotion, and public stockholding.
Source:  OECD, "Market access, domestic support and export subsidy aspects of the Uruguay Round 
Agreement on Agriculture", OECD/AGR/TD/WP(2000)89, OECD, Paris.
                                                          
20 OECD (2001).  Slovakia is now covered by the annual monitoring and reporting of agricultural
policies in OECD countries following its recent membership of the OECD.WT/TPR/S/91 Trade Policy Review
Page 82
18. Most recent assistance comes from direct payments, funded by taxpayers.  Assistance paid by
consumers, through higher prices due to market price support provided by the SFMR, has declined
substantially, although market price support remains the main measure for commodities such as sugar(PSE of 44% and NAC of 78%).  It dropped in 2000 to Sk 1.5 billion, from Sk 5.9 billion in 1999 and
Sk 8.6 billion in 1998, due mainly to lower support prices for pigmeat, sugar, and eggs (Chart IV.3).
However, direct payments to farmers, which had fallen in 1999 from a total of Sk 9.5 billion to
Sk 9.2 billion, rose in 2000 to Sk 12.2 billion.  This mainly reflected an increase in direct payments
based on overall farming income, from Sk 0.4 billion to Sk 3.3 billion, as well as increased paymentson input use, from Sk 4 billion to Sk 4.3 billion.  Payments based on area planted or animal numbers
remained fairly constant at Sk 3.5 in 2000, and those based on output rose slightly to Sk 1.2 billion.
In 2000, 35% of direct payments were related to inputs, 28% to area planted or animal numbers, and
27% to overall farm income.  The share of direct payments in farm assistance has increased from 34%
in 1986-88 to 61% in 1999 and to 89% in 2000.  The total value of assistance to farmers fromtaxpayers and consumers in 2000 was estimated at  Sk 15.6 billion, down from Sk 17.1 billion in 1999
and Sk 20.3 billion in 1998.
19. Agricultural support remains a high policy priority in the Slovak Republic.  A wide range of
measures assist farmers, including high tariffs, import quotas, market price support, supply control
measures, credit, and other input subsidies, as well as direct outlays, including export subsidies andpayments (Table IV.1).020406080100120140
1986-88 1995 1996 1997 1998 1999 2000Producer Support EstimatebProducer NACa
Consumer NACcChart IV.2
Measures of agricultural support, 1986-88 and 1995-2000
a
b
c
Source:Producer Nominal Assistance Coefficient (PNAC) is the value of the Producer Support Estimate (PSE) expressed 
as a per cent of total gross farm receipts valued at world market prices, excluding budgetary support.Producer Support Estimate is the value of gross transfers from consumers and taxpayers to support agricultural 
producers measured at the farm gate, expressed as a per cent of the value of total gross farm receipts, measured 
by the value of total production (at farm gate prices), plus budgetary support.Consumer Nominal Assistance Coefficient (CNAC) is the value of the Consumer Support Estimate (CSE) 
expressed as a per cent of the domestic consumption expenditure on commodities produced domestically valued at world market prices, excluding budgetary support to consumers.
OECD 
(2001 ), Agricultural Policies in OECD Countries: Monitorin g and Evaluation 2001, Paris.Per centSlovak Republic WT/TPR/S/91
Page 83
20. Substantial disparities exist between assistance levels for individual commodities
(Chart IV.4).  Commodities receiving the highest levels of support in 2000 were sugar (PSE of 44%
and producer NAC of 78%), poultry (39% and 65%), milk (40% and 54%), pigmeat (19% and 23%),
wheat (17% and 21%) and eggs (13% and 15%).  However, a few farming activities were actually
penalised by the assistance structure in 2000, especially beef (-15% and -13%) and maize (-1%
and -1%).  For these products, consumers benefited by paying below world prices.
Table IV.1
Policy measures on agriculture
Policy Measure
Border protection Tariff-based protection of domestic market in line with obligations vis-à-vis WTO, including preferential
duties and concession quotas as part of the European Agreement, CEFTA, EFTA, and other FTA obligations
Market support Market regulation by intervention purchases of selected products (in particular of grains and meat) at minimum
guaranteed prices
Market regulation by granting export subsidies (mainly for dairy products, beef, and sugar)
Production support Input subsidies to mitigate the impact of high prices of foodstuff, seedlings, agri-chemicals and other mater ials
Milk quality premia
Support for animal and plant breeding, irrigation
Table IV.1 (cont'd)Chart IV.3
Components of agricultural assistance, 1986-88 and 1998-2000
Source: OECD (2001 ), Agricultural Policies in OECD Countries: Monitorin g and Evaluation 2001, Paris.Market price 
support
66.4
Output 3.3Input use
7.5Overall farming 
income
22.8Market price 
support
48.2
Output 6.9Input use
26.0Overall farming 
income 0.8
Market price 
support
39.1
Output7.0Input use
26.4Overall farming 
income
2.7Market price 
support 11.0
Output 
8.6
Input use
31.1Overall farming 
income
23.81986-88 1998
1999 2000Area 
planted/animal 
numbers
17.6
Area 
planted/animal 
numbers
23.7Other 1.1
Area 
planted/animal 
numbers
25.3Other 0.3Total PSE: Sk million 31,069 Total PSE: Sk million 18,368
Total PSE: Sk million 15,121Total PSE: Sk million 13,763Per cent
Direct
Payments
33.6Direct
Payments
51.8
Direct
Payments
60.9Direct
Payments
89.0WT/TPR/S/91 Trade Policy Review
Page 84
Policy Measure
Structural Direct payments to farmers operating in less favoured areas
Investment grants and soft loans
Direct budgetary transfers to establish and run general agricultural services
Rural development Establishment of an Agency for Rural Development
Funding several programmesPlanning of a conception for a coherent programme to promote rural development
Agri-environmental Several legislative measures for water and soil protection and nature conservation
Funding and tax concessions to support nature protective agricultural practices
Veterinary and phytosanitary Adaptation of administration and legislation to the needs of the market partners and in view of EU legislation
Application of hygienic and technical standards
Source : EC (1998), Agricultural Situation and Prospects in the Central European Countries, Slovak Republic , Working
document, DG VI (Agriculture), p. 43, June.
21. Promoting food self-sufficiency based on pr otection could prevent the Slovak economy from
realizing the full benefits from trade liberalization.  It may have also detrimental effects on theeconomy’s efficiency and resource allocation, especi ally if associated with widening disparities in
assistance between agricultural commodities, and across other sectors.  Slovakia’s sectoral trade
policies appear to be reducing protection for industrial products while simultaneously maintaining,
and possibly increasing, agricultural assistance.  Su ch widening intra and inter-sectoral disparities of
protection induce potential economic costs.
21  High protection for agriculture, for example,
undermines the international competitiveness of Slovakia’s food processing industry and contributes
to the sector’s substantial excess capacity problems.  Increasing agricultural protection also runs
counter to the Government’s stated objective of promoting an efficient agricultural sector.
22. Actual support levels remain well below Slovakia's Uruguay Round commitments on export
subsidies and domestic support (Chapter III).  However, the measure adopted in the Uruguay Roundon which members base their domestic support commitments, the Aggregate Measure of Support
(AMS), captures only a portion of overall agricultural assistance in the Slovak Republic.
 22  In 2000,
for example, Slovakia’s notified level of AMS of Sk 7.9 billion was only 57% of its estimated PSE,
due mainly to substantial "green box" measures of support, estimated at Sk 3.4 billion – comprising
mainly natural disaster relief.  Slovakia also notified to the WTO in 2001, a "set aside" measure
(blue box) for 2000, costing an estimated Sk 69 million.  Slovakia had indicated to WTO Members in
2000 that it no longer intended to apply such "b lue box" measures of support (Chapter III).
23. The effects on Slovakia’s agriculture assistance of EU accession will depend upon the agreed
terms of membership for agriculture.  The Government is of the view that Slovak farmers should be
fully integrated into the CAP system, and be entitled upon accession to the same levels of budgetary
and market support as existing EU Members.  On  direct payments, however, it would consider a lower
level of payments, provided the coverage of products was the same as the CAP, and alternativestructural payments to assist Slovak farmers were provided.  The Government sees EU accession on
these terms benefiting Slovakia’s farming interests by increasing financial support for agricultural and
rural development; improving market access for expor ts; and raising farm incomes due to the EU’s
generally higher agricultural product prices and other support payments.
                                                          
21 Such disparities in assistance reduce efficiency by attracting resources out of less assisted into more
assisted activities where they are used less productively.
22 For an explanation of the differences between the AMS and the PSE measures of agricultural
support, and of why the latter are likely to be better indicators of assistance levels for assessing marketdistortions induced by a country’s agricultural policy interventions, see OECD (2000b).Slovak Republic WT/TPR/S/91
Page 85
-40-20020406080100120
-30-20-100102030405060
Chart IV.4
Agricultural assistance by commodity, 1995 and 1998-2000
Per cent
(a) PSE
(b) PNAC
PNAC is the producer nominal assistance coefficient expressed as a per cent.
OECD (2001 ), Agricultural Policies in OECD Countries: Monitorin g and Evaluation 2001, Paris.Note:
Source:1995 1998 1999 2000WT/TPR/S/91 Trade Policy Review
Page 86
24. In doing so, however, EU accession and full CAP appliance has the potential to increase
Slovakia’s agricultural assistance, which may adversely affect economic efficiency and the rest of the
economy generally, including efficient exporting and manufacturing industries.  Already, the return to
high assistance since 1998 has coincided with efforts to harmonize Slovak agricultural policies with
the EU.  Moreover, increases in assistance after EU accession appear highly probable since Slovakia’s
assistance in 2000 was on average just over half of EU levels.23
25. Slovakia’s agricultural commodities are negatively affected by reportedly subsidized EU
exports to the home market, as are Slovak exports to third markets, including the Czech Republic,
Poland and Hungary.24  However, Slovakia’s policy of increasing export subsidies to counter these
effects and to dispose of surplus production induced by high farm assistance is likely to have similar
adverse effects on other third-country exporters trying to compete in the same markets without suchassistance.  Following EU accession, such surplus production is likely to be incorporated into the EU
system of export subsidies.
25  While Slovak farmers will have to compete with EU producers
following accession - largely sheltered so far because of the asymmetrical agricultural liberalization
under the Europe Agreement - higher protection is likely to further divert Slovakia’s food imports
away from third sources.  Possible increases in MFN tariffs following EU accession, which arecurrently higher on some foodstuffs, such as on poultry, potatoes and oilseeds, will contribute to this
diversion.
(ii) Sectoral policies and trade developments
26. The main crops grown, by value, are cereals, especially wheat, maize, and barley.  These
account for one third of the value of crop production.  Other important crops include fruit and
vegetables, including potatoes, oilseeds, mainly sunflower and rapeseed, and sugar beet.  Livestock
production is mainly pork and dairy products, accounting for 35% and 25% of total agriculturaloutput.  The livestock industry has contracted sharply, especially during 1989-92, with major
reductions in herd sizes for cattle and pigs.
27. Slovakia is self-sufficient predominantly in cereals, sugar, oilseeds, potatoes, meat (beef, pork
and poultry), and milk, but production levels fluctuate due to weather conditions.  Agricultural
production declined sharply in the early 1990s, and fell by 35% in volume terms during the 1990s.However, unlike the livestock sector, which is still contracting, crop production has expanded in
recent years.  Nevertheless, the gross (farm gate) value of agricultural output declined by 5.1% in
2000 to Sk 51.5 billion, compared with an average level of Sk 46.6 billion for the period 1986-88.
(a) Livestock
28. Livestock production, traditionally the most important farming activity, has been hardest
affected by the economic transition.  It has seen the largest reductions in assistance, having started
with much higher levels of support.
26  Cattle and dairy productivity is low because of reliance on
"dual use" cattle breeds, i.e. for both beef and milk production.  Pure breed cattle are rare, although
                                                          
23 The OECD estimated the EU’s level of PSE assistance to be 38% in 2000.  See OECD (2001).
24 Minister of Agriculture, Mr Pavel Koncos, National Council of the Slovak Republic,
12 November 1999.
25 The impact of Slovakia’s accession on EU surpluses depends upon many factors, including what will
happen to Slovak assistance levels following EU accession.  Since Slovakia already has high levels of self-
sufficiency in key commodities, and high levels of excess capacity in many food processing activities, increasesin assistance are likely to generate additional Slovak surpluses, unless strictly controlled by production quotas.
26 In 1986, the PSE for crops averaged 39% compared with 63% for livestock products.  See OECD
(1998), p. 279.Slovak Republic WT/TPR/S/91
Page 87
several specialized farms have developed recently.  Herd numbers continue to fall:  in 2000, for
example, there were about 650,000 cattle, compared with 930,000 in 1995.
29. As indicated, except for beef, which received negative assistance in 2000, livestock products
receive substantial assistance;  PSEs on poultry, milk and pigmeat were above 15% in that year.
Livestock farmers benefit from various general and specific assistance arrangements, including
numerous schemes providing direct payments and other financial incentives, such as tax concessions,interest and input subsidies, as well as price support arrangements underpinned by SMFR purchases.
Per head subsidies and other payments are also made to preserve and improve animal breeds.  In
addition, a milk quality premium is paid directly to dairy farmers, at around Sk 1 billion annually.
Border protection also assists farmers:  high MFN tariffs, of up to 125% on meat products and of 68%
on dairy products apply, and tariff quotas provide limited liberalization.  Quota levels are relativelylow, and in-quota rates relatively high on some products, ranging from 55% to 35%.  Quota usage
rates are also low on some goods, averaging from zero for meat offal up to 69% for yoghurt over 1998
to 2000 (Chapter III).
30. Beef consumption is relatively low at about 10.2 kg. per head per year.  In the early 1990s,
surplus production was exported with the aid of subsidies.  However, since the mid 1990s, the marketfor beef has stabilized around consumption levels, at an annual production of about 90,000 tonnes
(live weight).  Nevertheless, although surpluses have been reduced considerably, export subsidies
have periodically assisted beef production.  The last subsidies, of Sk 80 million, were paid in 1998
(Sk 71 million in 1997).  Beef was added to the intervention and minimum price activities of the
SFMR from 1997.  A new market order on government intervention for beef and veal and payment of
export subsidies was implemented in 2000.  In addition to intervention prices, the order provides for
direct payments in the form of a premium for cows not used for market milk production, and anincreased rate of payment in areas with unfavourable natural conditions, as well as a slaughter bull
premium.
31. Milk production continues to fall, and is currently around 1 billion litres annually.  Under the
milk market order introduced in 1996, farm gate prices were fixed for milk, subject to quarterly-set
annual production quotas.  Prices are determined on a cost-plus basis.  There is no penalty for above-quota production, but the fixed price is not guaranteed and must be negotiated with processors.  In
1999, the production quota was set at 945 million litres.  The local Chamber of Agriculture using its
own rules allocates the quotas and all certified farmers are eligible.
32. Exports of surplus production of milk products, especially of skim milk powder, butter and
cheese, are subsidized.  In 2000, Sk 345.1 million was paid in export subsidies, of whichSk 178.6 million related to skim milk powder.  The corresponding payments in 1999 were
Sk 316.6 million and Sk 144.5 million.  Export subsidies are not paid on above-quota milk
production.  The rate of export subsidy is also capped.  Farm gate prices of milk were partially
deregulated from 2001 with fixed prices replaced by minimum prices, and a new intervention system
is to apply for milk and dairy products from 2002.  This will set a minimum target raw milk price forprocessing, and intervention prices for skimmed milk  powder, butter, and selected cheeses, linked to
the target milk price.  Intervention purchases of butter and selected cheeses are to occur when the
market price falls below 92% of the intervention price.  Specific direct payments include a premium
per dairy cow (calculated from the quota amount and standard milking capacities), with a higher rate
of payment in areas with worse production conditions.
27  Subsidies to support school milk
consumption and consumption of milk for feeding and as a component of milk-feed mixtures are also
included.  A national production quota of approximate ly 1.2 billion litres of milk, with transferable
quotas allocated on a regional and company basis is allowed.
                                                          
27 Ministry of Agriculture (2001), p. 15.WT/TPR/S/91 Trade Policy Review
Page 88
33. Pigmeat, poultry and eggs are also subject to intervention purchases at guaranteed minimum
prices, and the payment of export subsidies is needed to dispose of surplus production.  A new market
order was introduced for pigmeat in 2000, and for poultry and eggs in 2001.  However, reflecting the
balance between supply and demand in recent years, no export subsidies have been paid on these
products since 1996 when Sk 16.7 million was paid  on pigmeat and Sk 13.1 million on poultry.
(b) Crops
34. Slovakia is self-sufficient in key crops.  Cereals, especially wheat, are the most important
cash crop in Slovakia.  About one third of output is used for human consumption, with the rest used as
feed.  Average annual output of wheat is about 3 to 4 million tonnes.  In addition to benefiting from
numerous direct payments and other forms of general financial support, several key commodities have
been assisted by specific price support measures supported by the SFMR.
35. A market order adopted in 1999 for cereals continued the practice of setting guaranteed
minimum prices for a fixed volume supported by intervention buying by the SFMR.  The price is set
for the cropping year and is based on production costs;   it increases if input costs rise by more than
5% during the year.  Intervention purchases in some years have been substantial.  A revised
intervention support system is to apply for cereals (wheat, including durum, rye, barley, oats, andmaize) and cereal products, such as flour, bran, and malt, from 2002-03.  A national production quota
is to be set for food wheat.  Direct per hectare compensation payments are also allowed.
28  Cereals
benefit from export subsidies, especially on malt in recent years.  In 2000, export subsidies of
Sk 187 million were paid on malt, up from Sk 169.9 million in 1999 and Sk 43.2 million in 1998.
Relatively high tariffs, of mainly 21.2%, apply on imported wheat, barley, rye, and oats.
36. Slovakia’s self-sufficiency objectives include sugar.  Sugar production suffers from large
excess capacities and is assisted mainly by border protection, especially relatively high MFN tariffs ofmainly 59.5% but as high as 68%.  Intervention prices were also extended as from 1997, subject to a
production quota, and a new market order was introduc ed in 2000.  A revised market order is to start
from 2002-03;  it allows minimum target and intervention prices of white sugar as well as basic and
minimum prices of sugarbeet.  Production quotas are also to be set for sugar consumed domestically
(A quota), for elimination of market fluctuations, including subsidized export (B quota) and exported
without subsidy (C volume).
29  Export subsidies are also paid on sugar; the last payment was of
Sk 14.8 million in 1998.  The industry agreed in 1998 to reduce contracted sugarbeet production to
reduce excess output.
37. Oilseeds production is supported mainly by relatively high tariffs, of up to 26% on imported
oilseeds and fats and oils.  While no guaranteed minimum price arrangements apply, the SFMR hason occasions intervened to clear the market in times of low prices.  Direct per hectare payments are
made to oilseed farmers, and are provided for in the new marketing order to apply from 2002-03.
30
                                                          
28 Ministry of Agriculture (2001), p. 15.
29 The intervention price for purchases will be 5.2% below the target price for quota A (domestic
consumption) sugar.  The basic sugarbeet price will be the price for the grower derived from the white sugarintervention price, allowing for the processing margin, sugar yield, income of processors from selling molassesand the costs of transporting sugarbeet.  The minimum price of sugarbeet will be the price sugar mills pay the
sugarbeet growers, after deducting transfers to the sugar fund to finance the scheme (for A quota this will be 2%
of the basic price and for B quota up to 39.5% of the basic price).  Production quotas are to be set on the basis ofan estimate of domestic consumption and for individual producers on the basis of real output in the referenceperiod.  See Ministry of Agriculture (2001), p. 16.
30 Ministry of Agriculture (2001), p. 15.Slovak Republic WT/TPR/S/91
Page 89
38. No internal market price support measures exist for fruit and vegetables, but higher domestic
prices are maintained by seasonal tariffs, which provide relatively high duties especially during the
marketing season.  Tariffs on potatoes, for example, are 100% during the main marketing season.
National production quotas apply to potatoes under a market order implemented in 2000.31  T h e s e
quotas, allocated at regional levels, are set to equate with consumption.  Direct compensation
payments made on a per hectare basis are determined according to standard yields and the allocatedquota.  Import licences are also mandatory for a wide range of products, such as tomatoes, garlic, and
grapes.
(c) Forestry
39. Around 2 million hectares of forests cover around 40% of Slovakia’s land area.  About 40%
of forests are state owned.  The second largest share is owned by various communities; these own25% of forests.  Agricultural co-operatives own only 0.1% of forests.  The Slovak Land Fund is
responsible for providing restitution compensation to  rightful owners and administering state forests.
Forestry production accounts for around 1% of GDP.  The annual harvest is about 5.8 million cubic
metres.
40. Prices of timber and forest products are unregulated.  Timber is used mainly in the production
of sawn timber, construction-joinery products, furniture, paper, and cellulose.  Domestic timber
accounts for almost all processed production.  Slovakia is a net exporter of timber products, mainly to
the EU.  There has been a shortage of higher  quality softwood and hardwood timber, and export
quotas were introduced in 1998 to help ensure sufficient domestic supplies of quality timber.  These
were  abolished in 1999 and automatic licences, administered by the Ministry of Economy (Act on
Licences No. 487/2000), now apply.
41. Forests depend upon direct state aid and other financial assistance.  In 1999, direct state
subsidies to support both state and non-state-owned forests amounted to Sk 452 million.  The implicit
subsidies provided for management of state forests declined as a share of forest revenues from 29% in
1990 to 5% in recent years.  The Ministry of Agriculture allocates additional funds from the State
Fund of Forest Improvement, to assist forest production;  these amounted to Sk 366.4 million in 1999
and Sk 698 million in 1998.
32  About two thirds of these payments assisted non-state forests.  It also
provided additional subsidies for various forest activities, amounting to Sk 227 million in 1999.  In
1999, the State Support Fund for Agriculture and Food Industry allocated loans to the forestry sector
totalling Sk 29.3 million and bonds amounting to Sk 127million.  The sector is heavily in debt:  in
1999, unpaid interest on past loans totalled Sk 12 million, and additional bank credits of Sk 332
million were provided.
42. The Government approved the programme on Wood - Raw Material of the 21st Century, in
1999, aimed at more effective utilization of forests.  It envisaged the construction of a pulp mill with
annual capacity of 350-400,000 tonnes, and a veneer factory capable of processing 290,000 cubic
metres annually.  The programme is also intended to increase sawmill capacity to 2.6 million cubic
metres.  To help meet these objectives, the Government intends to establish a supportive fund to assistproduction, processing, and wood utilization.  It will also harmonize standards for raw wood with
those of the EU.
                                                          
31 Ministry of Agriculture (2001), p. 16.
32 Ministry of Agriculture (2000b), p. 42.WT/TPR/S/91 Trade Policy Review
Page 90
(3) M INING AND ENERGY
(i) Mining
43. The mining sector accounts for less than 1% of GDP.  The main mining activity is brown coal
and magnesite.  Black coal, which accounts for almost  half of Slovakia’s annual consumption, is fully
imported.  About a quarter of brown coal consumption is imported from the Czech Republic, mainly
for energy use.  The Slovak coal industry has excess capacity, producing more coal than is used, andhas been subsidized through the state budget.  Most coal is used for power generation.
44. Three joint-stock companies currently mine brown coal.  Under a 1993 decree, annual
production is set to decline gradually to 4 million tonnes as the Dolina mine is phased out.  However,
new environmental standards, to operate by 2006, will limit the use of brown coal for power
generation to about 1.6 million tonnes.  This will accelerate the contraction of the Slovak coalindustry, since its coal generally has high sulphur content and is environmentally polluting.  The
relatively high price of brown coal also reduces  its competitiveness as an energy source compared to
natural gas.
45. The principal short-term objective is not to open any new coal mines and to provide for the
orderly contraction of existing mines.  The State will not support any new mines.  State subsidies toexisting coal mines are substantial.  In 2000, state assistance in the form of grants to the three mines
totalled Sk 164 million, slightly down from Sk 184 million in 1999.  The subsidies are mainly grants
to compensate for losses incurred due to the “sifted”  coal sale price for inhabitants being less than the
cost of production, and to the costs of providing so cial compensation.  The State provides no subsidies
for brown coal used in power generation.  The State Aid Office also agreed on non-investment grants
of Sk 123.8 million in 1999 and Sk 115.3 million in 2000, comprising mainly  grants for meeting
social costs and for providing “sifted” coal to inhabitants.
33
46. There are no import barriers on minerals; only automatic licences for monitoring purposes
apply.  During the review period, Slovakia remo ved coal from the list of non-automatic licences.
(ii) Energy
47. Slovakia adopted a new energy policy in 2000, aimed at further preparing for its integration
into the EU, and providing for greater security of energy supply as well as promoting sustainable
development.  Energy efficiency is a high priority  for the Slovak Government.  New legislation, fully
harmonized with EU directives, is being prepared, and is expected to operate from 1 January 2002.  In
the electricity and gas industries, state monopolies are to be broken down by separating production
from distribution.  The objective is to create a competitive energy sector with minimal state
involvement.  An integral part of this is to establish an independent regulatory office that will beresponsible for creating  a competitive environment to deliver efficient and reliable services, and for
protecting consumers.  This body was established on 1 August 2001 and  regulates production and
distribution of gas and electricity;  from 1 January 2003, it will regulate prices.  The Government’s
objective is to remove all gas and electricity subsidies to consumers, including cross subsidies, by
2003 at the latest.
48. Before the recent changes, the energy sector was regulated by the Energy Act of 1998.  The
Ministry of Economy issued production licences in the energy sector and authorized the building and
reconstruction of energy utilities.
                                                          
33 State Aid Office (2001), p. 22.Slovak Republic WT/TPR/S/91
Page 91
(a) Hydrocarbons and gas
49. Slovakia imports virtually all of its crude oil from the Russian Federation based on a long-
term agreement.  About 6 million tonnes annually is piped into Slovakia for processing by the private
joint-stock company, Slovnaft, which is the biggest refiner and petrochemical operator in the Slovak
Republic.  In order to ensure long-term supplies of crude oil, Slovakia is attempting to diversify its
source of crude oil imports.  In 2001, legislation was approved enabling 90-day emergency oilreserves to be maintained until end-2008.
50. In April 2000, the Hungarian oil and gas company, MOL, acquired a 36.2% interest in
Slovnaft, including the right to increase its stake to above 50% after two years.
34  The Antimonopoly
Office approved the merger in 2000.35  Although it concluded that it would strengthen a dominant
market position, the merger was previously allowed on the grounds that the benefits of the mergeroutweighed the restricted competition.  The approval was conditional on the merged parties
maintaining the number of owned motor-fuel filling stations at the existing level of 333, until end-
2004.
51. The state-owned operator of the crude oil pipeline,  Transpetrol, is to be privatized  by end-
2001.  In 2000, the Government agreed to the sale of 49% equity.  The Company’s profitability hasbeen enhanced by its expansion into petrol distribution.  At present, there are no restrictions on the
importation of refined petroleum products into the Slovak Republic.
52. Consumption of natural gas has grown in recent years.  It provided about one third of
Slovakia’s total energy consumption in 1997.  This is expected to rise to 35% by 2010.  Almost 90%
of the population was connected to the gas distribution network at end 1998.  Almost all of Slovakia’s
natural gas is imported by pipeline from the Russian Federation.  Slovakia also plays an important
role in the transit of natural gas via pipeline from Russia to Western Europe.
53. The Government has agreed to sell 49% of the state-owned gas utility, Slovak Gas, in 2001.
This company was converted into a joint-stock company in July 2001.  It currently has a monopoly on
the transportation and distribution of natural gas, and a major share of its storage.  It is responsible for
domestic treatment, storage, and distribution of natural gas as well as for the international transit of
Russian gas exported to Western Europe.  Slovak Gas had previously purchased, in January 2000,45.9% of the gas storage company, Nafta Gbely, to give it almost a 56% interest.
36  The privatization
tender of 49% of  Slovak Gas is to be announced in September 2001.  The Government intends to
liberalize the gas market in 2002 - for large customers consuming above 25 million cubic metres
annually - and for all producers of electricity from gas.   This limit is to be reduced to 15 million cubic
metres in 2003 and to 5 million cubic metres in 2004.
54. Gas prices are regulated by the Government.  In 1999, household gas prices were increased by
50%.  They were further increased, by 30% in  February 2000 and 25% in February 2001, in an
attempt to implement price reforms and to reduce the cross-subsidy from industrial to household
users.  Prices for industrial users were raised by 11% in January 2000 and by another 20% in February
2001.
                                                          
34 The Government negotiated a return of 10% equity to the National Property Fund following
irregularities detected in Slovnaft’s earlier partial privatization.
35 It found that Slovnaft had a 70% market share in the motor crude oil wholesale market; 63.2% in the
motor petrol wholesale market; 45.1% in the crude oil retail market; and 42.5% in the petrol retail market.  SeeAntimonopoly Office (2000), p. 22.
36 In 1999, the Government had reversed the 45.9% privatization of Nafta Gbely by the previous
Government due to concerns over how it had been carried out.WT/TPR/S/91 Trade Policy Review
Page 92
(b) Electricity
55. Power generation is mainly from nuclear plants (59%), followed by coal- and gas-fired plants
(23%) and hydro-generation (18%).  The dominant electricity producer and distributor, Slovak
Electricity (state-owned joint-stock company), produces and distributes electricity in conjunction with
three state-owned distribution companies.  Electricity prices are regulated by the Government, and
have been increased substantially since July 1999.
56. The electricity market is to be  liberalized from 2002 for all customers consuming above
100 GWh annually.  This limit will be lowered progressively to 40GWh in 2003.  Full liberalization,
including allowing foreign suppliers, is envisaged for 2006 at the latest.  Structural reforms will also
separate the grid from electricity generation by Slovak Electricity, by end-June 2001.  Its partial
privatization will commence in 2002.  Privatization of the three regional distribution companiesstarted in 2001.
(4) M
ANUFACTURING
(i) Policy trends
57. Reforms in Slovakia’s policies in manufacturing are largely aimed at EU accession.  The
Government approved the Elaboration of the EU’s Industrial Policy Principles in the Conditions of
the Slovak Republic (Resolution No.761/1999).  Industrial policy is geared towards promoting
"sweeping and deep-seated restructuring."  Its objectives are to shift resources from traditional
inefficient industries into newly emerging activitie s that will be internationally competitive.  The
Government recognizes the critical role that foreign investment must play in this process.  It also
believes that far less reliance should be given to selective direct interventions, tailored to specific
industrial policies, in favour of general policies that are designed to create a favourable business
environment.  However, sectoral programmes to aid industry restructuring may still have a role insome industries, such as mechanical engineering,  mining, metallurgy, textiles, and woodworking, but
only if run in strict compliance with state-aid and competition rules.  Policies are to focus on
industrial restructuring and modernization through privatization and better directed state aid.
58. The Government believes that increasing international competitiveness of Slovakia’s
industrial sector is crucial.  Its small domestic market means that exports must sustain growth.Substantial industrial restructuring is needed to im prove performance and efficiency, especially in the
engineering, textiles, electro-mechanical, and wood processing industries.  The Government believes
that all processing industries, especially metallurgy, mechanical and electrical engineering, chemicals,
and wood processing will benefit from better ma rket access following Slovakia’s EU accession.
In 2000, the Ministry of Economy prepared a report titled the Elaboration of Industrial Policy inSelected Branches of Processing Industries Until 2004.  The report assessed the production
competitiveness of these industries in accordance with EU methodology.  While the study showed that
Slovak competitiveness had improved in most sectors, it still lagged substantially behind the EU.
59. Privatization coupled with foreign direct investment remain the key policy instruments for
restructuring Slovakia’s industrial base.  The private sector now dominates the manufacturing sector,accounting for 85% of GDP, up from 37% in 1993.  Privatization has been accelerated and there are
some significant entities currently being or about to be divested, including to foreign investors.
However, completing the privatization process an d avoiding further slippage will be a major
challenge, and greater foreign investment will be required.  Enterprise insolvency is high, with
substantial debt and accumulated arrears between firms.  Large public debts also exist.  In 1999,Slovak Republic WT/TPR/S/91
Page 93
Sk 43 billion was owed to the Social Insurance Agency, and tax arrears have increased, from Sk 35
billion in 1998 to Sk 52 billion in 1999.
60. The progressive removal of almost all tariffs on imports of manufactured products from the
EU under the Europe Agreement has already exposed Slovak industry to greater competition.
Slovakia’s industrial MFN tariffs would remain, on average, at about their same level, based on 2000
rates, on adopting the EU common external tariff.  Since EU accession would not initially result inMFN liberalization of Slovakia’s industrial tariffs, industries would not be exposed to greater
competition from non-preferential exporters.
(ii) Sectoral policies and trade developments
61. The manufacturing sector accounted for 22% of GDP in 2000, down from 24% in 1994
(Chart IV.1).  It employed 19% of the workforce in 2000 down from almost 23% in 1994.  The largest
manufacturing groups, by output, were metals and metal products, food and beverages, chemicals,
motor vehicles, and machinery equipment (Chart IV.5).  Industry attracted about half of Slovakia’s
foreign direct investment in 1999 (Chapter II).
62. Industrial restructuring during the early to mid 1990s was handicapped by institutional and
commercial policy bottlenecks.  The sector was hard hit, with virtually all industries experiencingheavy production cutbacks.  However, since the mid 1990s, some industries have experienced
substantial growth, based on successful reorientat ion and restructuring encompassing new markets
and foreign investment.  Indeed, analysis of im portant indicators of industries during the 1990s,
including production, value added and exports, reveal that a substantial degree of industrial
restructuring has occurred in Slovakia during transition.
37  It suggests an overall positive trend in
Slovak industries, with strong growth in production of motor vehicles, machinery and equipment,
office machines, as well as rubber and plastic products.  In 1998, these industries represented 60% ofmanufacturing output (65% in 1995 and 59% in 1989).  Although the share of industrial value added
from these industries also declined from 78% in 1995 to 76% in 1998, the evidence suggests that the
manufacturing sector is changing its production patterns towards more high-value-added products.
63. Slovakia’s main industrial products also appear to have become more export intensive.  Their
share of exports rose substantially, from 69% in 1989 to 78% in 1995 and to 80% in 1998;  inaddition, the ratio of these shares to their share of production rose over the same period from 1.18 to
1.20, and to 1.33, respectively.
64. Other industries, especially textiles, garments, and leather products, have undergone constant
decline due to tough competition in the market, large excess capacities and low investment levels.
Their share of production fell substantially, from 9% in 1989 to 7% in 1995 and to 5% in 1998;  andexport shares fell from 12% in 1989 to 7% in 1995 and 5% in 1998.  But there is some evidence of
positive changes in 1999 and 2000 following on-going restructuring.
                                                          
37 Ministry of Economy (2000).WT/TPR/S/91 Trade Policy Review
Page 94
0510152025
051015202530350510152025(a) ProductionChart IV.5
Indicators of industrial activity, 1989-98
Per cent (share of total)
(b) Value added a
(c) Export
Data not available before 1995.
Com piled from data provided b y Slovak authorities.a
Source:1989 1995 1998
Slovak Republic WT/TPR/S/91
Page 95
65. Another indicator of industrial restructuring is the changing composition of firms in the sector
with respect to their size.  Slovakia’s largest i ndustrial companies increased their share of domestic
production from 51% in 1993 to 67% in 1998.  This evidence of production patterns restructuring
towards larger firms is likely to improve efficiency, as larger firms benefit more from economies of
scale, can better attract foreign investment, and can adopt the latest technology and management
techniques.  There is no evidence to suggest that Slovakia’s manufacturing sector is becoming moreconcentrated overall, although this may have increased in a few industries.  Of the 22 NACE
industrial subsectors, three-firm concentration ratios exceeded 80% in only tobacco products; coke,
refined petroleum products; and motor vehicles.
38  Since 1995, the Antimonopoly Office has approved
all merger cases reviewed, with the exception of one, in 1999, which was prohibited.39  In six cases,
the merger was approved subject to certain conditions.40
66. MFN tariffs on industrial products (using the ISIC classification) averaged 6.2% in 2001, or
4.5% excluding food processing (Table AIV.1).  F ood processing (including beverages and tobacco)
had the highest average tariff of 13.7%, with maximum tariffs of up to 125% on meat products.
"Non-metallic mineral products" carried the next highest MFN tariffs, averaging 6.8%, followed by
textiles and clothing at 6.4%.  Outside foodstuffs, maximum MFN tariffs of 30.1% applied to certaintextiles, and of 25.6% to certain glass products.
(a) Food, beverages, and tobacco
67. Food processing is an important economic activity, contributing almost 16% of
manufacturing output in 1998 (Chart IV.5).  Privatiza tion of the food industry is almost complete.  It
has attracted the largest share of foreign investment in manufacturing, at 12% of the total.  The main
sectors for foreign investment have been non-alcoholic beverages, tobacco, and sugar, mainly sourced
from the EU.  It was previously claimed that  the food-processing sector was dominated by
monopolistic and oligopolistic processors that had close links with the State, such as an oilseed
crushing company.
41  However, this is no longer the case, according to Slovak authorities.  Losses by
non-profitable food processors, totalling Sk 2,635 million in 2000, exceeded total profits from
profitable firms of Sk 1,170 million.  The most profitable subsectors were the spirits industry, sugar
mills, canning plants, and breweries, while the heaviest losses occurred in beverages (soft drinks),wineries, bakeries, and dairies.
68. The food sector is one of the most heavily protected in the economy.  Although the average
MFN tariff in 2001 on food processing was 13.7%, some high rates of over 100% applied.  Such
protection compensates for the high cost of food inputs generated by protection to farmers.  Many of
the assistance arrangements for farmers, such as export subsidies, apply to processed products.
69. The food and beverage subsector performed relatively poorly during the 1990s.  Although one
of the largest activities, its share of production fell continuously, from 19% in 1989 to 17% in 1995
                                                          
38 Based on information supplied by the Slovak authorities.
39 This case involved the merger of daily newspaper producers.  The Antimonopoly Office concluded
that the merger would strengthen a dominant market position, and that the overall economic advantages that theconcentration would allegedly bring could also be achieved by other means than restricting competition.  SeeAntimonopoly Office, (2000), p. 26.
40 Greater concentration of industry by itself is neither a necessary nor sufficient condition for
demonstrating anti-competitive behaviour, and indeed may be indicative of efficient rationalization and market
restructuring needed for industries to compete openly with imports and on export markets.  Markets with onlyone or two domestic producers, for example, may be highly competitive if the market is contestable with noimport or entry barriers.
41 EU (1998), p.40.WT/TPR/S/91 Trade Policy Review
Page 96
and 16% in 1998.  Its value-added shares also declined, from 17% in 1995 to 16% in 1998;  and
export shares fell from 5% in 1989 to 4% in 1995 and 3% in 1998.  The subsector has a low ratio of
value added to production, and contributes a lower share of value added than it does to production.  It
also has a low share of exports relative to domestic production.
70. Some food processing activities have substantial excess capacity, especially in the early
processing stages, such as fruit and vegetables, some meats, starch and certain cereal preparations(Table IV.2).  Dairy processing, for example, had only two thirds capacity utilization in 1999, while
cheese production was much higher.  Capacity utiliz ation tended to be best at higher processing
stages, such as canning, vegetable oils, bakeries, sugar, and beer.
71. The dairy industry has contracted substantially in recent years, despite relatively high
protection.  About 1 billion litres of milk is processed annually, mainly into fluid milk, butter, cheese,skim milk powder, and ice cream.  Subsidies of up to Sk 4 per litre are provided to support the
consumption of dairy milk and of up to Sk 0.25 per litre per pupil per day to school children.
Additional subsidies exist on the use of pasteurized milk for supplying dairy products.  Subsidies also
apply to domestically produced skim milk powder for the production of dairy mixed feed and feed
substitutes of up to Sk 14,280 per tonne.
72. New rules on the composition, quality and labelling of dairy products became effective from
1 June 2000.  An example of privatization in the dairy sector is the 98.8% stake in the country’s
largest milk processor, Rajo, by NOM AG, an Austrian firm.  Recently, production of Gouda cheese
has commenced, funded by Dutch investment, aimed at producing 1,000 tonnes annually for export to
the Czech Republic, Hungary, and Russia.
73. The sugar industry is heavily indebted and relies on substantial government assistance, mainly
relatively high tariffs.  Automatic import licences are issued for imports of sugar, except from the
Czech Republic where an annual quota of 3,500 tonnes applies.  The Slovak refineries, averaging
27,000 tonnes output annually, are too small to reap significant economies of scale and need to be
modernized.  Some rationalization has occurred with the recent closure of two sugar refineries,
leaving currently five.  These are joint-stock companies with foreign share capital, and some
modernization is occurring.
74. Oilseeds processing has expanded rapidly based on a monopoly state company that has an
annual crushing capacity of 140,000 tonnes of rapeseed and 70,000 tonnes of sunflower seed.  Imports
of oilseeds are dutiable at tariffs as high as 60% for rape or colza seeds and 40% for sunflower seeds.
Imports of such oils are dutiable at tariffs of up to 26%, and margarine at 30%.  There are no
restrictions on farmers exporting oilseeds.
75. The brewery industry is well established in Slovakia and has attracted substantial foreign
investment, led by the Dutch Company, Heineken.  Following recent purchases of 51.1% of KK
Company and 52.5% of Gemer Breweries, Heineken has increased its market share to 38%.  South
African Breweries purchased the seco nd largest brewery, Saris, with 15% of the market, in 1997.  The
locally owned brewery, Topvar, has a 12% market share.
76. Beer imports are subject to an MFN tariff of 20%, and sweetened mineral waters and soft
drinks to a rate of 22%.  An annual quota of 532,00 0 hl and 540,000 hl apply to imports of Czech beer
and non-alcoholic beverages (including sweetened mineral waters), respectively.  According to
authorities, these quotas are not fully used.  Imports of spirits are dutiable at various MFN rates: for
example, whisky at 8.5%; rum and gin at 12.7%; and vodka and liqueurs at 56%.  Imported wine isSlovak Republic WT/TPR/S/91
Page 97
dutiable at an MFN tariff of 30% in bottles of over 2 litres and 75% in other sized bottles.  Brandy and
cognac are dutiable at 21.2%.
Table IV.2
Food industry capacity utilization rates, 1999
(Per cent)
Commodity Capacity utilization
Milk processing 79
Milk for human consumption 77
Cheeses
- Natural
-O t h e r83
86
Milk powder 61
Acidophilic products 66
Butter 39
Poultry - slaughtered 84
Poultry  - products 116
Beef cattle – slaughtered 33
Pigs – slaughtered 44
Meat products
- canned meat98
78
Sugar beet processing 102
Milled wheat 77
Milled rye 39
Bread 62
Pastry and cakes from wheat 80
Pasta 52
Malt 67
Beer 68
Non-alcoholic beverages (sweetened) 79
Mineral and soda water 59
Processed oilseeds 99
Vegetable fats (margarine) 52
Chocolate and chocolate confectionery 65
Non-chocolate confectionery 40
Biscuits 89
Preserved stewed fruits 28
Fermented cabbage 12
Preserved vegetables 46
Canned meals 75
Vinegar 98
Yeast 54
Raw spirit 45
Refined spirit 38
Spirits and distillates 44
Frozen vegetable products 67
Frozen fruit products 32
Dry starch 80
Source:  Ministry of Agriculture (2000a), Report on Agriculture and Food Sector in the Slovak Republic 2000 , Green Report.WT/TPR/S/91 Trade Policy Review
Page 98
(b) Wood processing, pulp, and paper
77. This subsector accounted for some 8% of manufacturing output in 1998 (Chart IV.5).  Export
growth has been substantial, especially in paperboard and veneer, pulp paper, and cardboard.
78. Substantial foreign investment exists in the pulp and paper, furniture, and timber industries.
For example, Swedish interests currently hold 94% of JCP Sturovo, which produces fluting,
corrugated board, and cartons.  Since foreign management became involved, the firm’s profitabilityhas increased significantly.  Another Swedish comp any accounts for 20% to 30% of the hygiene paper
products market; the company is geared to exports and is undergoing major modernization and
investment, including introduction of new technologies.
79. The country’s leading producer of particleboard (mainly used in furniture production),
plywood, and other specialized products, Bucina, was fully privatized in 1995.  Bucina exportsparticleboard, mainly to the Czech Republic and the EU.  It has undergone considerable
modernization and investment to enhance the quality and efficiency of its particleboard production.
(c) Chemicals and pharmaceuticals
80. The chemical industry accounts for around 9% of manufacturing output.  The main products
are rubber and plastics, organic chemicals, fertilizers, and resins.
81. Exports of chemicals are significant, with some 60% of production exported, mainly to the
Czech Republic and the EU.  It has been difficult for fertilizer production to compete with imports
from Ukraine and Russia, which have access to cheaper natural gas.
82. The demand for pharmaceutical products has grown.  Four domestic producers supply about
15% of the market, mainly producing generic antibiotics, vitamins, minerals, and analgesics.  There
are some 70 pharmaceutical distributors in Slovakia.  One of these, Medika, is state-owned and has
been converted to a joint-stock company for privat ization involving foreign investment.  Imuna, a
state-owned pharmaceutical producer, incurring large losses, has also been converted to a joint-stock
company ready for privatization.
83. MFN tariffs on pharmaceuticals are zero.   Pharmaceutical imports no longer require a licence,
as from 1 January 1999.  All pharmaceuticals must be registered with the State Institute for Drug
Control.  Registration is valid for five years.  Registration of new drugs may take up to nine months.Prices of pharmaceuticals have to be approved by the Ministry of Finance.  Long delays can be
incurred in having drugs listed on the system for government reimbursement for lower priced drugs
under the health system.  A new system is being introduced.
(d) Iron and steel
84. Iron and steel products accounted for 19% of manufacturing output in 1998 (Chart IV.5).
Steel output is around 3.5 million tonnes annually, which is processed mainly into flat products and
seamless and welded pipes.  In addition, iron alloys and aluminium is produced.  Copper production
ceased in 1999.  The metallurgy market is liberalized and substantial import competition comes from
the Czech Republic, the EU, Ukraine, and Russia.  However, the subsector still benefits from
substantial state aid, estimated at Sk 125.7 million in 1999.  About three quarters of steel output isexported.  Most raw materials are imported.Slovak Republic WT/TPR/S/91
Page 99
85. The major steel producer, VSZ, encountered severe financial difficulties in 1998 when it
defaulted on its foreign debt of US$35 million.  It has since been restructured and was recently
privatized, with the US Steel Group taking over its core assets in September 2000.
(e) Machinery and electrical equipment
86. The manufacture of machinery and electrical equipment accounts for over one quarter of
manufacturing output.  The largest subsector is the manufacture of transport equipment.  The industryis largely privatized and there is substantial foreign investment in motor vehicle and white goods
production.
87. The only motor vehicle producer is the foreign-owned Volkswagen, converted to a joint-stock
company in 1999.  Its current annual capacity is over 200,000 vehicles.  Many VW models are
assembled for export;  only 5% of production is so ld locally.  A consortium between Volkswagen and
Porsche has decided to produce a new vehicle model for export starting in 2001.  Volkswagen has
also invested heavily in the production of spare parts, including gearboxes.  There is substantial
production of other motor-vehicle components to service the Slovak and regional markets.  There are
some 40 component manufacturers, most with fore ign equity.  Volkswagen uses about half of
domestically produced components.
88. Imports play a significant role in the motor-vehicle market, especially from France, Korea,
Italy, and the Czech Republic.   Volkswagen, which also makes the Slovak Skoda, has about 40% of
the market.  MFN tariffs on motor vehicles are relatively high: up to 17.1% on passenger motor
vehicles; 16.2% on trucks; and 13.5% on buses (unless non-diesel, on which the rate is 5.4%).
Components are dutiable at MFN tariffs between 3% and 6%, including imported CKD (completely
knocked-down) kits.  This tariff structure may therefore be providing considerable incentives to
assemble motor vehicles from imported CKD parts.  For environmental and roadworthiness reasons,imports of cars produced later than 1 January 1993 are prohibited (Decree of the Ministry of
Transport, Post and Telecommunication No. 116/97).
89. There are two main manufacturers of telecommunications equipment.  One is partially owned
by Alcatel.  Telecommunications equipment must comp ly with Slovak technical and safety standards,
and importers are subject to certification from the National Testing Centre.  This usually takes aboutsix weeks.  The national testing centre for telecommunications equipment is the Electro-technical
Research and Design Institute.  Since 1 July 2000, the Telecommunications Regulatory Office is
responsible for approving this equipment for sale in Slovakia.
(5) S
ERVICES
90. The services sector remains the most important in the Slovak economy.  Services accounted
for 73% of GDP in 2000 (including construction and electricity, and water and gas distribution), up
from 68% in 1994.  Investment in services, mainly trade and repairs, real estate, electricity, water
distribution and gas, and financial intermediation, amounted to 63% of total investment in 1999, up
from 59% in 1995.42  The share of foreign direct investment in services is also high, accounting for
about half of the total in 1999;  finance and insurance as well as wholesale and retail trade (includingmotor vehicle repairs) were the main areas (Chapter II).
                                                          
42 Based on national account figures in IMF (2001a), p. 73.WT/TPR/S/91 Trade Policy Review
Page 100
(i) Financial sector
91. Slovakia participated in the 1997 WTO negotiations on financial services, and has accepted
the Fifth Protocol of the GATS.  Its commitments included having no limitations on market access
and national treatment for cross-border supply and consumption abroad of most services covered by
Slovakia’s limited sectoral commitments.  It also made an indefinite MFN exception (Article II of the
GATS), covering all countries, whereby a foreign service supplier may be denied authorization toestablish a commercial presence or conduct new activities in Slovakia where Slovak suppliers are also
prevented such access and treatment by the country concerned.  Slovakia removed this reciprocal
condition from 1 March 1996 by amendment to the Banking Act.
(a) Banking
92. The Slovak banking system has become more competitive in recent years due to the growth of
private, including foreign, banks.  Private banks, often with substantial foreign capital, currently
account for about half of the banking system’s total assets.  At end 2000, there were 21 commercial
banks in Slovakia, of which about half had overseas participation and several were fully foreign
owned.  There were also two foreign branches and ten foreign representative offices.  The total
subscribed equity capital of the banking sector, including permanent resources provided by foreignbanks to their branches, was Sk 54 billion (Sk 49.2 billion excluding foreign branches).  Some 28% of
the total subscribed equity capital of banks (including foreign branches) was from foreign sources, up
from 25% at end 1999.  Total bank assets increased by 13% during 2000, to Sk 834 billion.  In
addition, the sector’s asset structure improved.  The ratio of earning assets to total assets rose during
2000 by 6 percentage points to almost 89%, and the ratio of classified (problem) loans to total loans
fell from almost 40% in September 1999 to 15% in December 2000.
Restructuring and privatization of the three large state banks93. Before 1999, the three large state-controlled banks (VUB, SLSP, and IRB) suffered from
political interference and poor management.  As a result, they accumulated large amounts of poor
quality non-performing assets and became deeply insolvent.  The Government, in cooperation with
the National Bank, embarked on a comprehensive restructuring programme involving two basic
operations, designed to reduce non-performing loans in these banks from 40% to 20% of assets.  Thefirst was a Sk 18.9 billion direct equity infusion provided by the National Bank through the state
budget at end-1999.  The second was a Sk 105 billi on carve-out of bad assets, conducted in two
stages, of Sk 74.1 million in December 1999 and Sk 30.9 million in June 2000.  These loans were
transferred to a new agency, the Slovenska konsolidacna (the Slovak Consolidation Agency - SC),
and to the state financial institution Konsolidacna banka (the Consolidation Bank - KOB), and werereplaced by loans to SC and KOB guaranteed by the Government.  These operations have restored the
capital adequacy ratio of these banks to levels above 8%, according to international standards.
94. A further measure supporting bank privatization was the conversion of the banks' state-
guaranteed loans to SC and KOB into state bonds in January and March 2001.  The bonds were issued
with maturities of either five, seven or ten years, with a combination of fixed and floating interestrates.  Interest is to be paid twice yearly, with the first payment due one year from the date of issue.
The issuance of these bonds will assist the banks by providing assets that can be used to manage
liquidity and other risks.
95. Privatization of the three large State-controlled banks is well advanced.  In January 2001 a
controlling share (87.18%) of SLSP was sold to a foreign strategic investor.  In the case of VUB,
a two-stage privatization was adopted.  In February 2001, 25% of its shares were sold to foreignSlovak Republic WT/TPR/S/91
Page 101
institutional investors, and at the same time the te nder process was instigated to divest the remaining
state equity to a strategic investor (with two foreign banks currently being considered).  In the case of
IRB, an overseas bid is being evaluated and it is expected to be privatized by end-2001.  The
privatization of a smaller bank (Banka Slovakia) is still in its infancy.
Banking reforms
96. In addition to restructuring and privatization of the three large State-controlled banks, banking
reforms in Slovakia are directed at resolving troubled small and medium-sized banks;  reforming the
deposit insurance system; and substantially strengthening the regulation and supervision of the
banking sector.  As well as completing bank privatization by end 2001, it is intended to substantiallyimprove the regulatory and supervisory framework of banks and other financial institutions.
97. The National Bank is responsible for regulating and supervising the banking sector.  It must
licence all banks (domestic and foreign) and foreign bank branches, as well as registering
representative offices of foreign banks.  Legislative changes in 1997 combined the licensing
procedures into a single licence; previously, separate licences were needed to establish a bank and to
operate it.  The same prudential requirements apply to domestic and foreign banks.  There is no set
limit on the number of banking licences.  The banking regulatory and supervisory functions remainwith the National Bank until at least end 2002, when they may be transferred to the recently
established Financial Market Authority, which is currently under the Ministry of Finance.
98. The regulatory and supervisory framework for the banking sector has improved
significantly.43  The Banking Act was amended in 1999 to strengthen the National Bank’s supervisory
powers.  In 1999, the Bank issued five decrees on banking supervision, binding on all banks.  Otheramendments, effective from May 2001, also reinforced the Bank’s supervisory role by reducing the
involvement of the Ministry of Finance, especially regarding licensing and on-site examinations.
 44  A
new Banking Act has also been drafted and is expected to become effective in Autumn 2001;  it
incorporates further improvements, including a legal framework closer to EU standards and to
implementing regulations based on the Basel Core Principles. Changes include mainly the areas ofbanking supervision on a consolidated basis; monitoring market risks; stregthening the Bank’s role in
setting rules of bank accountancy; deepening cooperation with external auditors and other authorities
supervising financial markets; and introducing the concept of “prompt corrective actions”, which in
practice means that the body responsible for banking supervision must act if a particular bank does
not meet the prudential criteria.
99. Compliance by banks with prudential limits has improved.  At end 2000, only two banks
(excluding KOB) did not meet the minimum 8% capital adequacy ratio.
45  For operations with non-
banks, credit exposure limits set were breached by ten banks;  with other banks, they were violated by
two banks; and with persons having a special relation, by ten banks.  Three banks violated the limit on
aggregated net credit exposure, and two banks failed to meet limits on their total open foreignexchange positions.  The limit on a bank’s monthly liquidity (ratio of assets to liabilities due in a
month ≥ 0.9) was not met by only one bank as at end-2000.  Although eight banks failed to meet the
new limit set on fixed and illiquid (non-performing) assets over own funds and reserves, which cannot
exceed one, they had generally improved their performance during 2000.
                                                          
43 The National Bank is a member of the Group of Banking Supervisors of Central and Eastern Europe,
which belongs to the Basle Committee on Banking Supervision.
44 IMF, (2001a), p. 6.
45 For the banking sector as a whole (excluding KOB), the average capital adequacy ratio increased
from 8.1% in 1997 to 12.5% in 2000.  Over the same period, the average share of non-performing loans fellfrom 27.2% to 15.3%.WT/TPR/S/91 Trade Policy Review
Page 102
100. Compulsory deposit insurance was introduced from 1 July 1996 to protect depositors.  All
banks, including foreign bank branches, are required to contribute to the Deposit Protection Fund.
Amendments made in 1999 increased the effectiveness of the Fund and shortened the time limit for
compensation payments.  Fund payments of Sk 8.4 billion were made in 2000 to protect depositors
from collapsed banks.
101. Based on an analysis of compliance with prudential regulations of small and medium-sized
banks by the National Bank in 1999, and various on-site examinations combined with external audits,
the Bank undertook remedial action to strengthen the banking sector.  Two banks were placed under
receivership, and subsequently they filed for bankruptcy.  Shareholders of the Priemyselna banka
(Industrial Bank) agreed in 1999 to sell to Slovenska sporitelna (Slovak Savings Bank).  The National
Bank revoked the banking licence of AG Bank in May 2000, and imposed forced administration onSlovenska kreditna banka (Slovak Credit Bank) in April 2000.  In July 2000, this Bank officially filed
for bankruptcy.  Forced administration was also imposed on Dopravna banka (Transport Bank), in
July 2000, which filed for bankruptcy in August 2000.  Certain recovery measures were also
implemented to upgrade the capital assets of Polnobanka (Agrobank) and Postova banka (Postal
Bank).
(b) Insurance
102. The Slovak insurance market has grown substantially, along with the number of insurance
companies, thereby improving its competitivene ss.  This followed the removal of the monopoly on
insurance held by the 78.8% state-owned SP in the early 1990s.  There are now  29 insurance
companies operating in Slovakia;  SP is still th e largest, with a current market share of 48%
(down from 83% in 1994) and assets totalling Sk 30 billion.  Foreign companies are well established
in both life and non-life insurance markets:  21 companies have foreign ownership, of which 18 have90% or more foreign equity.
103. Only joint-stock companies resident in the Slovak Republic and, since 1 April 2000, branches
of a foreign insurance company can conduct insurance business.  This covers life insurance and  non-
life products, such as commercial and household property, and contents insurance.  Many insurance
companies provide motor vehicle damage insurance.  The only insurance activities reserved for the
state-owned insurance company are compulsory third-party motor-vehicle liability insurance and
mandatory business-liability insurance.  These are reserved for SP until January 2002, when third-
party motor-vehicle liability insurance is scheduled to be de-monopolized and mandatory business-
liability insurance transferred to the Social Insurance Company.  Basic health insurance and pension
insurance schemes are also reserved for the Social  Insurance Company.  All other insurance premiums
are set commercially by the market.  Life insurance of permanent residents of Slovakia, property
insurance, and public risk insurance against damage caused by physical and legal entities can be
provided only by an insurance company licensed in the Slovak Republic, unless certain risk categories
cannot be insured by these companies.  There are no nationality requirements on board members of
insurance companies.  They must be "fit and proper" people and foreigners must be long-termresidents of Slovakia.
46
104. The Ministry of Finance, through the Depa rtment of Financial Market Supervision,
supervised the insurance market (Insurance Act No. 24/1991, as amended) until November 2000,
when these responsibilities were transferred to the Financial Market Authority.  A licence is required
to conduct insurance activities, and approval is required to change the type of business conducted.
                                                          
46 The only limitation to national treatment noted by Slovakia in its GATS commitments on scheduled
insurance activities, was that the majority of a company’s board members must be domiciled in Slovakia (WTOdocument GATS/SC/77/Suppl. 3).Slovak Republic WT/TPR/S/91
Page 103
New legislation, effective 1 April 2000, also increased the scope for foreign insurers to insure selected
risks not covered by domestic insurers.  It also prevented insurance companies from offering both life
and non-life activities, except for universal insurance companies operating before 1 April 2000.  In
addition, the legislation strengthened prudential rules regarding minimum capital requirements;
extended the sanctioning powers of the supervisory body; and introduced new reporting duties for
insurers.  Board members of insurance companies or managers of foreign insurance branches musthave prior approval.  Any acquisition of an insurance company’s voting stock above 10% of the total
nominal share value, requires prior approval.  Insurance companies must establish several reserves
and maintain at least 30% of the average annual amount of these reserves with a Slovak bank.
Reserves can be invested in bank deposits, bonds, public shares, foreign securities or real estate.  Any
limitations are set by Ministry of Finance Decree No. 136/1996, as amended.
105. In May 2000, the Government approved the Concept for the Development of the Insurance
Sector (Resolution No. 282).  This involves the pr ivatization of the Slovak Insurance Company during
2001.   The Slovak Insurance Company is being prepared for privatization, and is expected to be closed
by end-2001.
(c) Other financial services106. Under the Government’s Concept of Capital Market Development, adopted in 1999, several
legislative changes are being made to improve the transparency and regulation of capital markets.
From 1 July 1999, the Securities Law was amended to allow branches of foreign securities dealers to
operate in Slovakia subject to being licensed by the Ministry of Finance.  A new Securities Act, aimed
at EU harmonization, is being prepared;  it will allow for new financial instruments (especially
derivatives), and specify strengthened prudential rules for securities dealers.  Legislation governing
bonds was amended from January 2000 to liberalize their issue, for maturities exceeding one year.Some of these changes stemmed from OECD requirements.
107. The Stock Exchange Act (No. 330/2000 Coll.), effective from 1 November 2000, regulates
conditions for securities trading on the Stock Exchange, in accordance with EU legislation.  It
tightened requirements for listing of securities, and unified regulation of securities by including
regulation of public market organizations excluded from the Securities Act (No. 600/1992 Coll.).  The
Stock Exchange Act considers only basic segmentatio n into listed markets and free markets, and the
Stock Exchange can further divide these markets according to capital market requirements.  Currently,
the listed market of the Bratislava Stock Exchange is divided into three segments:  the main market
(for so-called blue chips); the parallel market (for medium-sized companies); and the new market (for
new fast-growing companies).
108. The Collective Investment Act  (No. 385/1999 Coll.) has regulated such investments since
1 January 2000.  It determines the conditions of origin and of the activities of management
companies, and for the establishment and management of mutual funds by the management company.
The legislation also determines rules for mutual funds to dispose of assets; to issue and disburse units;
to invest; to restrict and diversify risk; and its reporting and informational obligations.  Foreigncorporations that are licensed to conduct collective investment activities by the appropriate body in
the country of their registered office (foreign management companies) can collect funds from the
public within Slovakia only through organization units and if licensed by the state supervisory body.
109. Legislation on securities and investment services is currently in the approval process.  It
provides for the introduction of new financial instru ments, and will regulate investment services,
which are divided into main and subordinated services.  The legislation especially regulates
subordinated investment services provided by non-banking institutions, which have not been subjectWT/TPR/S/91 Trade Policy Review
Page 104
to effective regulation.  These activities relate main ly to providing loans for the purpose of realizing
transactions with investment instruments, and prov iding certain investment advisory services.  The
proposed legislation also contains certain prudential rules for securities dealers.  A guarantee fund
will also be established to protect investors from insolvency of securities dealers.  This fund will
guarantee 90% of the value of the investor’s investment.
110. The Centre of Securities maintains the register of securities traded in Slovakia.  All bearer
shares must be registered from January 2000.  Since 1 November 2000, the Financial Market
Authority  has become responsible for the state supervision of the capital (and insurance) markets
instead of the Ministry of Finance, which has retained legislative responsibilities.
111. The Bratislava Stock Exchange is a joint-stock company.  It comprises three markets:  the
listed securities market, which includes the largest firms and has the maximum disclosurerequirements;  the registered securities market;  an d the free market for small firms.  The Exchange’s
market capitalization at end-1999 was Sk 188 billion.  New Stock Exchange legislation, adopted in
September 2000, tightened the listing requirements and introduced stricter rules on the provision of
information.
(ii) Telecommunications
112. Slovakia participated in the 1997 WTO negotiations on basic telecommunications, and has
accepted the Fourth Protocol of the GATS.  It incorporated the Reference Paper on Regulatory
Principles for Telecommunications as an additional commitment.  It also committed to providing full
market access and national treatment to foreign suppliers of telecom services, but only for cross-
border supply or consumption abroad.  Services can only be supplied through commercial presence
over the public network monopoly or using leased lines until 2003.  Horizontal commitments apply on
temporary presence of persons.  Slovakia permits the entry and temporary stay of senior executivesand specialists as intra-corporate transferees, provided they have been employed for at least one year
immediately prior to entry.
47  Business representatives are allowed similar entry to negotiate the sale
or agreements to supply services but cannot provide them directly to the public.
113. The Government believes that greater private-sector participation is necessary to improve
efficiency and to enhance Slovakia’s capacity to meet the growing demand for telecommunicationservices.
48  The promotion  of a competitive sector through full liberalization is a major objective of
the Government’s Telecommunication Policy for 2000-02, approved in June 2000.  The
telecommunications market was opened to competition in 1997, except for basic voice telephony
services provided through the fixed networ k.  According to the Telecommunication Act
(Act No. 195/2000), Slovenské tele komunikácie (ST) will retain its monopoly to provide this service
until 2003, after which the Government plans to allow an unlimited number of licensed operators.  ST
was converted to a 100% state-owned joint-stock company in December 1998, and was partially
privatized in July 2000 when 51% ownership was sold to Deutsche Telecom.  Part of the sale
proceeds is to be invested in improving Slovakia’s telecom infrastructure.  Deutsche Telecom is also
to meet certain investment and service targets, such as investing €1 billion over three years todigitalize the network and to increase fixed line penetration to 45%.
                                                          
47 Senior executives do not have to meet this one-year requirement if their purpose is to establish a
commercial presence in Slovakia.
48 The telephony market expanded considerable during the 1990s, but is still behind European
standards.  The density of main telephone lines increased from 21% in 1996 to 31% in 1999; the share ofdigitalized lines rose from 26% to 67% over the same period.  The Government’s 2000-02 policy is to increasethe density of lines to 35% and the digitilization rate to 78%, so that 84% of households are expected to have atelephone, up from 63% in 1999.Slovak Republic WT/TPR/S/91
Page 105
114. There are two mobile phone operators.  EuroTel Bratislava, the original provider, operates
both an analog (since 1991) and digital mobile network (since 1997), and is a joint venture 60%
owned by ST and 40% by Altantic West (itself a joint venture between Bell Atlantic and Media
One/US West).  EuroTel has about 45% of the market.  The second operator Globtel, has operated a
digital cellular mobile network since 1997.  It is a joint venture of France Telecom, which currently
holds 64% following its purchase of the 29% holding of Slovtel, a private Slovak holding company.The remaining 36% equity is held by various Slovak energy and natural gas companies.
49  The mobile
market has grown rapidly, doubling the penetration ratio in a few years to 21% at July 2000.  A
mobile GSM 1800 licence was sold to both EuroTel and Globtel in 1999;  this followed unsuccessful
international public tenders to attract a third operator, in October 1998 and March 1999, which
required a minimum price of US$10 million and at least 34% domestic ownership.  Other services,including internet and data transmission, have also expanded under competitive conditions.  There are
no restrictions on the provision of value-added telecommunication services.  From April 1999,
providing internet access no longer requires a licence, and voice transmission can be provided by
internet protocol (Voice over IP).  Three UMTS (Universal Mobile Telecommunications System)
licences are to be issued in the first half of 2002, to operate from 2003.  The conditions for grantingthese licenses have not been announced.
50
115. The new Telecommunications Act, effective from 1 July 2000, created a new regulatory
framework for telecommunications in preparation for the sector’s full liberalization from 2003.  A
new independent regulatory body, the Telecommunications Office, was formed to take over the
regulatory functions previously performed by the Ministry of Transport, Posts and
Telecommunications, including licensing of telecommunications activities and regulation of public
telecommunication networks.  It also regulates price instead of the Ministry of Finance. The Officeissues licences to all operators of public telecommunication networks, or providers of public
telecommunication services via fixed or mobile networks.  Licences can be granted for up to 20 years.
116. An important aspect of the new regulatory regime concerns future access by new entrants to
the public network.  From 2003, the public networ k operator (Slovak Telecom) will have to allow
access for new operators.
51  Also, the legislation applies to any owner of a public network with a
"significant influence" on the telecommunications mark et.  This is deemed in the legislation to be an
operator with a market share of at least 25% (but may be less if decided by the Office).  If an access
agreement cannot be reached between the parties within three months, the Office must issue a binding
decision in 60 days.  Interconnection must be non-discriminatory and provide the same level of
quality; within a reasonable time period at a price based on the justified costs of providing thenetwork services required.  Any access agreement must be notified to the Office.  It can stipulate to
the parties the method for calculating the interconnection price or share in the profits, and can suspend
the agreement if judged to be anti-competitive.  Similar access requirements apply to leasing
telecommunication circuits and using joint equipment.
117. The Office’s price regulations, in accordance with Act No. 18/1996 Coll. on prices, replace
the former price-caps used by the Ministry of Finance based on consumer-price-index movements.
Prices of universal services are regulated using "price caps" (Telecommunication Office decision
No. 223/2000).  Universal service obligations are specified in the legislation requiring public
telecommunication operators to provide such services at a stipulated quality throughout Slovakia for a
                                                          
49 Draxtler (2000).
50 The Slovak Deputy Transport and Communication Minister has stated that two of these licences
would go to the two incumbent mobile phone operators, Eurotel and Globtel.  The third would most likely beoffered to an international operator in return for long-term development of the network rather than beingauctioned (Javurek, 2000).
51 The only legislative grounds for refusal is technical non-feasibility.WT/TPR/S/91 Trade Policy Review
Page 106
uniform price.  These universal services are public telephone services, fax and data transmission
services; free emergency call services; provision of operator public telecommunications services; and
provision of public pay-phone facilities.  Universal services will remain the responsibility of ST until
2002, after which the Office will require all providers of public telecommunication service to
contribute to the losses incurred in meeting their universal service obligations, if their share in the
telecommunication market of the public telephone service provided by the fixed telecommunicationnetwork is lower than 80%.  The Office will determine the annual contributions paid by providers,
based on their share of total profits from provision of the universal services.  Such procedures are set
out in binding regulations issued by the Ministry of Finance.
118. The Government’s postal policy, approved in 1999, provides for the gradual liberalization of
the postal sector, aimed at creating  a competitive market and ensuring the quality of the universalpostal service.  Based on this policy, a draft Act on Postal Services has been submitted for approval to
the National Council, to be effective from 1 January 2002.  The legislation will establish a new legal
framework and liberalize areas of postal services currently reserved for the state monopoly, Slovak
Post.  A new independent national regulatory author ity, the Postal Office, will be responsible for
regulating and supervising postal services, as well as regulating prices of universal postal service.Policies covering development projects of Slovak Post and state enterprises are contained in its 2004
Development Programme, which essentially plans for its modernization and the establishment of
logistic and information systems, as well as enhanced communication's infrastructure and the
introduction of new products.
119. A central objective of the Government’s postal policy is to transform the state-owned
company, Slovak Post, into a shareholding co mpany with 100% state ownership.  Its monopoly over
delivery of letters is to be reduced under the draft legislation in two stages on 1 January 2002, and1 January 2003.  In international postal services, the draft Act waives the reservation for Slovak Post
to transport incoming mail.  Slovakia made binding commitments in GATS to maintain no restrictions
on foreign firms delivering courier services via commercial presence, or from Slovak residents
consuming these services abroad.  However, limitations on cross-border supply are unbound, thereby
enabling restrictions on market access or national treatment.
52
(iii) Transportation
120. Slovakia listed MFN (GATS Article II) indefinite exemptions on transportation services,
mainly preserving the preferential access and regulation of traffic rights under bilateral agreements.
Such exemptions apply to passenger and freight tran sportation using internal waterways, rail and road.
Slovakia’s GATS sectoral commitments cover only repair of road and rail transportation equipment.It accords full market access and national treatment for these services but only where provided under
Mode 2 (consumption abroad).  No commitments were made for other modes of supplying these
services.
121. Almost 60% of freight is transported by rail and the remainder mainly by road, with minimal
water and air transportation.  Freight volumes declined during the 1990s, especially for road transport.The Government approved the Update and Specification of the Principles of the State Transport
Policy in January 2000.  The strategic goal is the long-term development and integration of all types
of transport.  Special emphasis is given to rail as an alternative to road transportation, and on
improving air access for Slovakia.  In July 2001, the Government approved the Strategy for Air
Transport Development.  The Ministry of Transport, Post, and Telecommunications is responsible for
transportation policy.
                                                          
52 Slovakia's specific commitments under the GATS are described in WTO (1995).Slovak Republic WT/TPR/S/91
Page 107
122. Only private carriers undertake truck transportation.  Road transportation on international and
long-distance routes is not subsidized.  The Government has approved plans to privatize the Slovak
Bus Transport Companies by divesting 49% of shares in the majority of companies by end-2001.  It
also intends to introduce regulations, during 2001, designed to improve the efficiency of state
subsidies provided for bus transport.  Subsides ar e to be terminated on routes over 100 kilometres.
Public tenders are also to be invited where subsidies exceed Sk 1 million annually.
123. Slovakia has 34 bilateral agreements with European countries regarding road transport.53
They are based on reciprocity and are aimed at cooperation in the field of personal transport and
freight transit, and cabotage rights.
124. The state-owned Slovak Railways is heavily indebted and continues to operate at large losses,
amounting to Sk 15 billion from 1993 to 1997.  The railway network requires substantial investmentto be modernized and extended.  The Government’s plans are currently concentrated on a gradual
restructuring of Slovak Railways according to the Project for the Transformation and Restructuring of
the Railways, approved in 2000.  Slovak Railways is to be separated into two enterprises from
1 August 2001.  Slovak Railways will maintain the ra ilroad network, while all freight and passenger
services will be transferred to a new 100% state-owned joint-stock company.  The latter will also besplit into passenger and freight operations and gradually privatized by 2005, involving both domestic
and foreign participation.  Government subsidies will cover only passenger services subject to fare
regulation by the Government, and these subsidies will be reduced progressively through
rationalization of loss-making routes and fare increases.  Passenger rail fares were raised by 15% from
February 2001.  Freight rates have been deregulated and are no longer subsidized.
125. Slovakia has bilateral agreements on railways with five neighbouring countries:  Austria, the
Czech Republic, Hungary, Poland, and the Ukraine.
126. Slovakia has international airports at Bratislava, Poprad, Piestany, Sliac, and Kosice, and
several regional airports.  These are state-owned and state-operated.  The previous Government
participated unsuccessfully in establishing a national carrier, Slovak Airlines;  the status of national
carrier  was withdrawn in January 1999.  The Govern ment has negotiated with the EU a multilateral
agreement on the creation of a common European aviation area.  This is expected to be approved by2002.  The Slovak Republic has concluded an "open skies" agreement with the United States.
127. Foreign shipping carriers can provide water transport services in Slovakia provided they meet
the requirements of their home countries.  Approval from the Ministry of Transport, Post, and
Telecommunications  is required to operate services within Slovakia.  Such approval can be issued for
single or multiple journeys or for a certain time period.  Cabotage rights are mainly extended on areciprocal basis according to bilateral agreements.  Slovakia has such agreements with Germany,
Bulgaria, Hungary, Russia, Luxembourg, the Netherlands, and Romania, and is negotiating
agreements with Croatia and the Czech Republic.
128. Ports are operated by the joint-stock company Slovak Shipping and Ports.  It is currently
being partly privatized by the sale by tender of almost 87% of its equity.
                                                          
53 WTO document S/C/W/159/Add.1, 17 August 2000.WT/TPR/S/91 Trade Policy Review
Page 108
(iv) Tourism
129. Tourism is growing in Slovakia.  Receipt s from tourism amounted to US$432 million in
2000, compared with expenditure by Slovak tourists overseas of US$295 million.
130. Tourist facilities have been privatized.  There were almost 2,000 accommodation facilities in
Slovakia in 2000, up from about 1,000 in 1995.  The average utilization rate was about one third;  this
has increased only slightly since 1995.  The number of visitors in such accommodation increasedfrom 2.1 million in 1995 to 2.8 million in 2000.  However, over this period, the number of foreign
visitors has  increased only slightly, to around 1.1 million.  Tourism is under the responsibility of the
Tourist Development Section of the Ministry of Economy.  The Slovak Agency for Tourism is
responsible for tourism marketing and promotion.
131. Under the GATS, Slovakia committed not to place limitations on consumption abroad and
accords full market access and national treatment to foreign firms establishing in Slovakia to provide
travel and tourism services.  It made no commitments on cross-border supply of all travel and tourism
services (possibly due to the technical impossibility, and/or commercial irrelevance of such supplies)
and the provision of tourist guide services through presence of natural persons in Slovakia.
132. The Ministry of Economy administers the "Support Programme for Tourism Development"
together with the state-owned Slovak Guarantee and Development Bank.  The Bank also provides
support to  entrepreneurs, especially small and medium-sized firms, in the form of bank guarantees,
up to 65% of justified costs.  Further aid is provided within this Support Programme in the form of
non-refundable financial assistance of up to Sk 4 million.  State aid to the tourism industry amounted
to Sk 29.2 million in 2000.
54  It is estimated to be Sk 45 million in 2001.
                                                          
54 State Aid Office (2001), p. 24.Slovak Republic WT/TPR/S/91
Page 109
REFERENCES
Antimonopoly Office (2000), Annual Report 1999 , Bratislava.
Draxtler, J (2000), Slovakia’s Globtel to List on LSE , Reuters, 14 September.
EC (1998), Agricultural Situation and Perspectives in the Central and Eastern European Countries ,
Slovakia, Directorate-General for Agriculture of the European Commission [Online]. Available at:
europa.eu.int/comm/dg06/pobli/peco/slovakia/fullrep/index/htm.
EC (2000), Regular Report from the Commission on Progress towards Accession - Slovakia ,
European Commission, November, Brussels.
FAO (2000), A Strategy for Agricultural and Rural Adjustment for the Slovak Republic , Main Report,
Phase I and II, Technical Cooperation Pr ogramme, TCP/SLO/4552 and TCP/SLO/8922, Rome.
IMF (2001a), "Slovak Republic; Selected Issues and Statistical Appendix", Staff Country Report  No.
01/129, Washington D.C.
IMF (2001b), Statement of Economic Policies attached to Letter of Intent, May [Online].  Available
at:  http://www.imf.org/external/np/loi/2001/svk/01/index.htm .
Institute of Slovak and World Economics (2001), Economic Development of Slovakia in 2000 , Study
prepared on behalf of the UN Economic Commission for Europe, April, Bratislava.
International Intellectual Property Alliance (2001), 2001 Special 301 Report – Slovakia , February,
Washington D.C.
Javurek, P (2000), Slovakia Plans UTMS Licences and Considers JPO , Reuters, 7 September.
Kimakova, Alena & Reza Rajabuin (1998), "Structural Consequences of Trade Policy in the Slovak
Republic; Preferential Verses multilateral Liberalisation", Working Paper No. 334, Keil Institute of
World Economics, December.
Ministry of Agriculture (1999), Report on Agriculture and Food Sector in the Slovak Republic 1999 ,
Green Report, November, Bratislava.
Ministry of Agriculture (2000a), Report on Agriculture and Food Sector in the Slovak Republic 2000 ,
Green Report, November, Bratislava.
Ministry of Agriculture (2000b), Report on Forestry in the Slovak Republic 2000 , Green Report,
Bratislava.
Ministry of Agriculture (2001), Concept of Agricultural and Food Policy of the Slovak Republic Until
2005 , Bratislava.
Ministry of Economy (2000), Introduction to a Review of Branch Profiles , Bratislava.
National Bank of Slovakia (2000a), Prospects of the Central Bank and its Monetary Policy , Vice-
Governor, BIATEC Banking Journal , Volume VIII, November, Bratislava.WT/TPR/S/91 Trade Policy Review
Page 110
National Bank of Slovakia (2000b), Applying a Stabilisation Monetary Policy , Governor, BIATEC
Banking Journal, Volume VIII, August, Bratislava.
National Bank of Slovakia (2001 ), Monetary Survey , April, Bratislava.
National Bank of Slovakia (2001a), "The Monetary Programme of the National Bank of Slovakia for
the Year 2001", Governor, BIATEC Banking Journal , Volume IX, January, Bratislava.
National Bank of Slovakia (2001b), Forecast of Economic Development in Slovakia for 2001 With an
Outlook Until 2004 , BIATEC Banking Journal , Volume IX, February, Bratislava.
OECD (1998), Agricultural Policies in Emerging and Transition Economies, Monitoring and
Evaluation , Paris.
OECD (2000a), Interim Economic Assessment, Slovak Republic , May, Paris.
OECD (2000b), "Market Access, Domestic Support and Export Subsidy Aspects of the Uruguay
Round Agreement on Agriculture", OECD/AGR/TD/WP(2000)89, Paris.
OECD (2001), Agricultural Policies in OECD Countries:  Monitoring and Evaluation 2001 , Paris.
Slovak Institute for Standardization (2000), Annual Report 2000 , Bratislava.
State Aid Office (2001), Report About State Aid Granted for the Period of 1999 , March, Bratislava.
UNDP (2000), Human Development Report .
World Bank (2001), Memorandum of the President, "Country Assistance Strategy for the Slovak
Republic", Report No. 20232-SK, January [Online].  Available at: http://www.worldbank.org .
World Bank (1999), Slovak Republic Data Profile  [Online].  Available at:
http://worldbank.org/external/dgprofile.asp?rmdk.
WTO (1995), Trade Policy Review – Slovak Republic , Geneva.