RESTRICTED
WORLD TRADE WT/REG19/1
21August 1995
ORGANIZATION(95-2453)
Original: English
FREE TRADE AGREEMENT BETWEEN
THE REPUBLIC OFHUNGARY AND THE REPUBLIC OFSLOVENIA
ThefollowingtextreproducestheAgreement1betweentheRepublicofHungaryandtheRepublic
ofSlovenia.
____________________
TheRepublic ofHungary andtheRepublic ofSlovenia (hereinafter called theParties),
Reaffirming theircommitment topluralistic democracy based ontheruleoflaw,human rights
andfundamental freedoms,
Having regard totheDeclaration ofIntent concerning theliberalization ofmutual traderelations
between theRepublic ofHungary andtheRepublic ofSlovenia of1December 1992,
Recalling theirintention toparticipate actively intheprocess ofeconomic integration inEurope
andexpressing theirpreparedness toco-operate inseeking ways andmeans tostrengthen thisprocess,
Reaffirming theirfirmcommitment totheprinciples ofamarket economy, which constitute
thebasis fortheirrelations,
RecallingtheirfirmcommitmenttotheFinalActoftheConferenceonSecurityandCo-operation
inEurope, theParis Charter, andinparticular theprinciples contained inthefinaldocument ofthe
Bonn Conference onEconomic Co-operation inEurope,
Resolved tothisendtoeliminate progressively theobstacles tosubstantially alltheirmutual
trade, inaccordance withtheprovisions oftheGeneral Agreement onTariffs andTrade,
Firmly convinced thatthisAgreement willfoster theintensification ofmutually beneficial trade
relations among them andcontribute totheprocess ofintegration inEurope,
Considering thatnoprovision ofthisAgreement maybeinterpreted asexempting theParties
fromtheirobligations under otherinternational agreements, especially theGeneral Agreement onTariffs
andTrade,
Have decided asfollows:
1TheAnnexes andProtocols thereto havebeensubmitted totheSecretariat forconsultation by
interested Members (Office 3006).WT/REG19/1
Page2
Article 1
Objectives
1. TheParties shallgradually establish afreetradeareainaccordance withtheprovisions ofthis
Agreement andinconformity withArticle XXIV oftheGeneral Agreement onTariffs andTrade in
atransitional period ending on31December 2000, atthelatest.
2. Theobjectives ofthisAgreement are:
(a) topromotethroughtheexpansionoftradetheharmoniousdevelopmentoftheeconomicrelations
between theParties andthustofoster intheParties theadvance ofeconomic activity, the
improvement ofliving andemployment conditions, andincreased productivity andfinancial
stability,
(b) toprovide fairconditions ofcompetition fortrade between theParties,
(c) tocontribute inthisway, bytheremoval barriers totrade, totheharmonious development
andexpansion ofworld trade.
CHAPTER I-INDUSTRIAL PRODUCTS
Article 2
Scope
Theprovisions ofthisChapter shallapply toindustrial products originating intheParties.
Theterm"industrial products" means, forthepurpose ofthisAgreement, theproducts falling within
Chapters 25to97oftheHarmonized Commodity Description andCoding System, withtheexception
oftheproducts listed inAnnex I.
Article 3
Customs Duties onImports
1. Nonewcustoms dutyonimports shallbeintroduced intrade between theParties.
2. Customs duties onimports shallbeabolished inaccordance withtheprovisions ofProtocol 1.
Article 4
Basic Duties
1. Foreachproduct thebasic duty, towhich thesuccessive reductions setoutinthisAgreement
aretobeapplied, shallbetheMost Favoured Nation rateofdutyapplicable on29February 1992.
2. If,afterentry intoforce ofthisAgreement, anytariff reduction isapplied onanergaomnes
basis, inparticular reductions resulting fromthetariffagreement concluded asaresult oftheUruguay
Round ofMultilateral Trade negotiations, suchreduced duties shallreplace thebasic duties referred
toinparagraph 1asfrom thatdatewhen suchreductions areapplied.WT/REG19/1
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3. Thereduced duties calculated inaccordance withparagraph 2shallbeapplied rounded tothe
firstdecimal place.
4. TheParties shallcommunicate toeachother theirrespective customs dutyrates.
Article 5
Charges Equivalent toDuties
1. Nonewcharge having aneffect equivalent toacustoms dutyonimports shallbeintroduced
intrade between theParties.
2. Allcharges having aneffect equivalent tocustoms duties onimports shallbeabolished onthe
dateofentry intoforce ofthisAgreement, except asprovided forinsubparagraphs ofparagraphs 3
and4.
3. TheRepublic ofHungary shallabolish onitsimports fromtheRepublic ofSlovenia charges
having aneffect equivalent tocustoms duties onimports inaccordance withthefollowing timetable:
1/1/95 1/1/96 1/1/97
(i) 1%licensing fee 1% - -
(ii) 2%customs clearance fee - 1% 1%
(iii) 3%statistical fee 1% 1% 1%
4. TheRepublicofSloveniashallabolishonitsimportsfromtheRepublicofHungarythefollowing
charges having aneffect equivalent tocustoms duties, inaccordance withthefollowing timetable:
1994 1/1/95 1/1/96
(i) 1%customs clearance fee - - 1%
(ii) 1%equalization tax(special charges
forimports taxequalization) - 0.5% 0.5%
(iii) import taxonimports ofusedautomobiles
andmotor vehicles forthetransportation
ofgoods - - 15%
Article 6
Fiscal Duties
TheParties shallnotapply norintroduce customs duties ofafiscal nature.
Article 7
Customs Duties onExports andCharges Having anEquivalent Effect
1. Nonewcustoms dutyonexports orcharge having anequivalent effect shallbeintroduced
intrade between theParties.
2. TheParties shallabolish between thematthelatest by31December 1995anycustoms duties
onexports andcharges having anequivalent effect.WT/REG19/1
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Article 8
Quantitative Restrictions onImports andMeasures Having anEquivalent Effect
1. Nonewquantitative restrictions onimports ormeasures having anequivalent effect shallbe
introduced intrade between theParties.
2. Allquantitative restrictions andmeasures having anequivalent effect onimports ofproducts
originating intheParties shallbeabolished onthedateofentry intoforce ofthisAgreement, except
asprovided forinAnnexes II/AandII/B.
Article 9
Quantitative Restrictions onExports andMeasures Having anEquivalent Effect
1. Nonewquantitative restrictions onexports ormeasures having anequivalent effect shallbe
introduced intrade between theParties.
2. Allquantitative restrictions onexports from theParties andmeasures having anequivalent
effect shallbeabolished onthedateofentry intoforce ofthisAgreement, except asprovided forin
Annexes III/A andIII/B.
Article 10
Information Procedure onDraft Technical Regulations
1. TheParties shallnotify eachother inaccordance withtheprovisions laiddown inAnnex IV
ofdrafttechnical regulations anddraftamendments thereto, which theyintend toissue.
2. TheJointCommittee (Article 34)shalldecide onthedateforimplementing theprovisions in
paragraph 1,andAnnex IV.
CHAPTER II-AGRICULTURAL PRODUCTS
Article 11
Scope
1. Theprovisions ofthisChapter shallapply toagricultural products originating intheParties.
2. Theterm"agricultural products" means forthepurpose ofthisAgreement, theproducts falling
within Chapter 1to24oftheHarmonized Commodity Description andCoding System andtheproducts
listed inAnnex I.
Article 12
Exchange ofConcessions
1. ThePartiestothisAgreementgranteachotherconcessions,specifiedinProtocol2inaccordance
withprovisions ofthisChapter andlaiddown inthatProtocol.WT/REG19/1
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2. TheParties, having regard totheroleofagriculture intheireconomies, thedevelopment of
tradeinagricultural products between theParties, theparticular sensitivity oftheagricultural products,
therulesoftheiragriculturalpolicies,theoutcomeofthemultilateraltradenegotiationsundertheGeneral
Agreement onTariffs andTrade, shall examine thepossibilities ofgranting each other further
concessions.
Article 13
Concessions andAgricultural Policies
1. Theprovisions ofthisChapter shallnotrestrict inanywaythepursuance oftherespective
agricultural policies oftheParties orthetaking ofanymeasures under suchpolicies, including the
implementation oftheresults oftheUruguay Round agreements provided thattheconcessions granted
under Article 12andtheirvalue arepreserved.
2. TheParties shallnotify totheJointCommittee changes intheirrespective agricultural policies
pursued ormeasures applied which mayaffect theconditions ofagricultural trade among them as
provided forinthisAgreement. Ontherequest ofaParty prompt consultations shallbeheldtoexamine
thesituation.
Article 14
Specific Safeguards
Notwithstanding other provisions ofthisAgreement andinparticular Article 27,andgiven
theparticular sensitivity oftheagricultural products, iftradeconducted under theconcessions granted
under thisAgreement causes aserious disturbance inthemarket oftheotherParty, theParties concerned
shallenter intoconsultations immediately tofindanappropriate solution. TheParty concerned may,
ifcircumstances sorequire, takemeasures itdeems necessary foraspecified period oftime, orfor
aslongasmarket disturbances exist, oruntilamutual solution canbefound.
These measures shallnotresult inworse market access conditions fortheproducts originating
intheother Party thanthose applied tothirdcountries onamost-favoured-nation basis.
Article 15
Sanitary andPhytosanitary Measures
TheParties shallapply theirregulations inveterinary, plant health andhealth matters ina
non-discriminatory fashion andshallnotintroduce anynewmeasures thathavetheeffect ofunduly
obstructing trade.
CHAPTER III-GENERAL PROVISIONS
Article 16
Rules ofOrigin andCo-operation inCustoms Administration
1. Protocol 3laysdown therules oforigin andrelated methods ofadministrative co-operation.WT/REG19/1
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2. TheParties shalltakeappropriate measures, including regular reviews bytheJointCommittee
andarrangements foradministrative co-operation, toensure thattheprovisions ofProtocol 3and
Articles 3to9,12,17and27ofthisAgreement areeffectively andharmoniously applied, andtoreduce,
asfaraspossible, theformalities imposed ontrade, andtoachieve mutually satisfactory solutions to
anydifficulties arising from theoperation ofthose provisions.
Article 17
Internal Taxation
1. TheParties shallrefrain fromanymeasures orpractice ofaninternal fiscal nature establishing,
whether directly orindirectly, discrimination between theproducts originating intheParties.
2. Products exported totheterritory ofoneoftheParties maynotbenefit from repayment of
internal taxes inexcess oftheamount ofdirect orindirect taxes imposed onthem.
Article 18
General Exceptions
ThisAgreement shallnotpreclude prohibitions orrestrictions onimports, exports, ofgoods
intransit, justified ongrounds of:
- public morality, public policy orpublic security;
- theprotection ofhealth andlifeofhumans, animals orplants;
- theprotection ofnational treasures possessing artistic, historic orarchaeological value;
- protection ofintellectual property;
- rules relating togoldorsilver;
- theprotection oftheenvironment, among other things theconservation ofexhaustible natural
resources;
ifsuch measures aremade effective inconjunction withrestrictions ondomestic production or
consumption.
Suchprohibitionsorrestrictionsshallnot,however,constituteameansofarbitrarydiscrimination
oradisguised restriction ontrade between theParties.
Article 19
Security Exemptions
Nothing inthisAgreement shallprevent aParty fromtaking anymeasure which itconsiders
necessary:
(a) toprevent thedisclosure ofinformation contrary toitsessential security interests;WT/REG19/1
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(b) fortheprotection ofitsessential security interests andforimplementation ofinternational
obligations ornational policies;
(i) relating tothetraffic inarms, ammunition andimplements ofwar,provided thatsuch
measures donotimpair theconditions ofcompetition inrespect ofproducts notintended
forspecifically military purposes, andtosuchtraffic inother goods, materials and
services asiscarried ondirectly orindirectly forthepurpose ofsupplying amilitary
establishment; or
(ii) relating tothenon-proliferation ofbiological andchemical weapons, nuclear weapons,
other nuclear explosive devices; or
(iii) taken intimeofwarorother serious international tension.
Article 20
State Monopolies
1. TheParties shalladjust progressively anyState monopoly ofcommercial character soasto
ensure thatbytheendofthefifthyearaftertheentry intoforce oftheAgreement, nodiscrimination
regarding theconditions under which goods areprocured andmarketed exists between nationals of
theParties. TheJointCommittee willbeinformed ofthemeasures adopted toimplement thisobjective.
2. Theprovisions ofthisArticle shallapply toanybodythrough which thecompetent authorities
oftheParties, inlaworinfact,either directly orindirectly supervise, determine orappreciably influence
imports orexports between theParties. These provisions shalllikewise apply tomonopolies delegated
bytheState orothers.
Article 21
Payments
1. Payments infreely convertible currencies relating totrade ingoods between theParties and
thetransfer ofsuchpayments totheterritory oftheParty tothisAgreement, where thecreditor resides,
shallbefreefrom anyrestrictions.
2. ThePartiesshallrefrainfromanyexchangeoradministrativerestrictionsonthegrant,repayment
oracceptance ofshort andmedium termcredits totrade ingoods inwhich aresident participates.
3. Notwithstanding paragraph 2,untilArticle VIIIoftheArticles ofAgreement oftheInternational
Monetary Fund becomes applicable fortheParties, theParties reserve theright toapply exchange
restrictions onthegrant oracceptance ofshort andmedium termcredits related totrade ingoods to
theextent permitted according totheirstatus under theInternational Monetary Fund, provided that
these restrictions areapplied inanon-discriminatory manner asregards theorigin oftheproducts and
thattheyarenotapplied onlytospecific products orgroup ofproducts.
Therestrictions shallbeoflimited duration andshallbeeliminated when conditions nolonger
justify theirmaintenance. TheParties shallinform theJointCommittee promptly oftheintroduction
ofsuchmeasures andofanychanges therein.WT/REG19/1
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Article 22
Rules ofCompetition Concerning Undertakings
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement insofarasthey
mayaffect trade between theParties:
(a) allagreements between undertakings, decisions byassociations ofundertakings andconcerted
practices between undertakings which haveastheirobject oreffect theprevention, restriction
ordistortion ofcompetition;
(b) abuse byoneormore undertakings ofadominant position intheterritories oftheParties as
awhole orinasubstantial part,thereof.
2. Theprovisions ofparagraph 1shallapply totheactivities ofallundertakings including public
undertakings andundertakings towhich theParties grant special orexclusive rights.
Undertakings entrusted withtheoperation ofservices ofgeneral economic interest orhaving
thecharacter ofarevenue-producing monopoly, shallbesubject toprovisions ofparagraph 1inso
farastheapplication ofthese provisions doesnotobstruct theperformance, inlaworinfact,ofthe
particular public tasks assigned tothem.
3. With regard toproducts referred toinChapter II,theprovisions stipulated inparagraph 1(a)
ofthisArticle shallnotapply tosuchagreements, decisions andpractices which formanintegral part
oftheregulation ofthenational market.
4. IfaParty considers thatagiven practice isincompatible withparagraphs 1,2and3ofthis
Article andifsuchpractice causes orthreatens tocause serious prejudice totheinterest ofthatParty
ormaterial injury toitsdomestic industry, itmaytakeappropriate measures under theconditions and
inaccordance withtheprocedure laiddown inArticle 31.
Article 23
State Aid
1. Anyaidgranted byaParty tothisAgreement orthrough Stateresources inanyformwhatsoever
which distorts orthreatens todistort competition byfavouring certain undertakings ortheproduction
ofcertain goods shall, insofarasitmayaffect trade between thisParty andtheother Party tothis
Agreement, beincompatible withtheproper functioning ofthisAgreement.
2. Theprovisions ofparagraph 1shallnotapply toproducts referred toinChapter II.
3. TheJoint Committee shall, within three years from theentry intoforce ofthisAgreement,
adopt thecriteria onthebasisofwhich thepractices contrary toparagraph 1shallbeassessed, aswell
astherules fortheirimplementation.
4. TheParties shallensure transparency intheareaofStateaid,interalia,byreporting annually
totheJointCommittee onthetotalamount andthedistribution oftheaidgiven andbyproviding, upon
request, information onaidschemes andonparticular individual cases ofState aid.WT/REG19/1
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5. IfaParty considers thataparticular practice
- isincompatible withtheterms ofparagraph 1,andisnotadequately dealt withunder the
implementing rules referred toinparagraph 3,or
- intheabsence ofsuchrules, andifsuchpractice causes orthreatens tocause serious prejudice
totheinterest ofthatParty ormaterial injury toitsdomestic industry,
itmaytakeappropriate measures under theconditions ofandinaccordance withtheprovisions laid
down inArticle 31.
Such appropriate measures mayonlybetaken inconformity withtheprocedures andunder
theconditions laiddown bytheGeneral Agreement onTariffs andTrade andanyother relevant
instruments negotiated under itsauspices which areapplicable between theParties concerned.
Article 24
Government Procurement
1. TheParties consider theliberalization oftheirrespective government procurement markets
asanobjective ofthisAgreement.
2. TheParties shalldevelop theirrespective regulations forgovernment procurement withaview
togrant suppliers oftheother Party bytheendofthetransition period ofthisAgreement access to
contract award procedures ontheir respective government procurement markets according tothe
provisions oftheGATT Agreement onGovernment Procurement of12April 1979, asamended by
aProtocol ofAmendments of2February 1987.
3. TheJointCommittee shallexamine developments related totheachievement oftheobjectives
ofthisArticle andmayrecommend practical modalities ofimplementing theprovisions ofparagraph 2
ofthisArticle soastoensure freeaccess, transparency andfullbalance ofrights andobligations.
4. During theexamination referred toinparagraph 3ofthisArticle, theJointCommittee may
consider, especially inthelightofdevelopments inthisareaininternational relations, thepossibility
ofextending thecoverage andthedegree ofthemarket opening provided forinparagraph 2.
5. ThePartiesshallendeavourtoaccedetoAgreementsnegotiatedundertheauspicesoftheGeneral
Agreement onTariffs andTrade, relevant togovernment procurement.
Article 25
Protection ofIntellectual Property
1. The Parties shall grant andensure protection ofintellectual property rights ona
non-discriminatory basis, including measures forthegrant andenforcement ofsuchrights. The
protection shallbegradually improved and,before theendofthefifthyearaftertheentry intoforce
ofthisAgreement, ofalevelcorresponding tothesubstantive standards ofthemultilateral agreements
which arespecified inAnnex V.WT/REG19/1
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2. Forthepurpose ofthisAgreement "intellectual property protection" includes inparticular
protection ofcopyright, comprising computer programs anddatabases, related andneighbouring rights,
trademarks, geographical indications, industrial designs, patents, technical anddesign improvements,
topographies ofintegrated circuits, aswellasundisclosed information onknow-how.
3. Protection oftopographies ofintegrated circuits ensured byaParty shall begranted ona
reciprocal basis.
4. TheParties shallco-operate inmatters ofintellectual property. They shallhold, uponrequest,
expert consultations onthese matters, inparticular onactivities relating totheexisting ortofuture
international conventions onharmonization, administration andenforcement ofintellectual property
andonactivities ininternational organizations, suchasWorld Intellectual Property Organization, as
wellastheGeneral Agreement onTariffs andTrade, aswellasrelations ofParties withthirdcountries
onmatters concerning intellectual property.
Article 26
Dumping
IfaParty finds thatdumping within themeaning ofArticle VIoftheGeneral Agreement on
Tariffs andTrade istaking place intraderelations governed bythisAgreement, itmaytakeappropriate
measures against thatpractice inaccordance withArticle VIoftheGeneral Agreement onTariffs and
Trade andagreements related tothatArticle, under theconditions andinaccordance withtheprocedure
laiddown inArticle 31.
Article 27
General Safeguards
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
(a) serious injury todomestic producers oflikeordirectly competitive products intheterritory
oftheimporting Party, or
(b) serious disturbances inanyrelated sector oftheeconomy ordifficulties which could bring about
serious deterioration intheeconomic situation ofaregion,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 31.
Article 28
Structural Adjustment
1. Exceptional measures oflimited duration which derogate theprovisions ofArticle 3maybe
taken byeither Party intheform ofincreased customs duties.
2. These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce significant social problems.WT/REG19/1
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3. Customs duties onimports applicable intheParty concerned toproducts originating inthe
otherParty introduced bythesemeasures maynotexceed 25%advalorem andshallmaintain anelement
ofpreference forproducts originating intheother Party. Thetotalvalue ofimports oftheproducts
which aresubject tothese measures maynotexceed 15%oftotalimports ofindustrial products from
theother Party asdefined inChapter I,during thelastyearforwhich statistics areavailable.
4. These measures shallbeapplied foraperiod notexceeding fiveyears unless alonger duration
isauthorized bytheJointCommittee. Theyshallcease toapply notlaterthanbytheendofthetransition
period.
5. With regard toparagraph 1ofthisArticle, nosuchmeasures canbeintroduced inrespect of
aproduct ifmore thanthreeyears elapsed sincetheelimination ofallduties andquantitative restrictions
orcharges ormeasures having anequivalent effect concerning thatproduct.
6. TheParty concerned shallinform theJoint Committee ofexceptional measures itintends to
takeand,attherequest oftheother Party, consultations shallbeheldintheJointCommittee onsuch
measures andthesectors towhich theyapply before theyareapplied. When taking suchmeasures
theParty concerned shallprovide theJointCommittee withaschedule fortheelimination ofthecustoms
duties introduced under thisArticle. Thisschedule shallprovide foraphasing outoftheseduties starting
atthelatest twoyears aftertheirintroduction, atequal annual rates. TheJointCommittee maydecide
onadifferent schedule.
Article 29
Re-export andSerious Shortage
Where compliance withtheprovisions ofArticles 7and9leads to:
(a) re-export towards athirdcountry against which theexporting Party maintains fortheproduct
concerned, quantitative export restrictions, export duties ormeasures orcharges having
equivalent effect; or
(b) aserious shortage orthreat thereof, ofaproduct essential totheexporting Party;
andwhere circumstances giveriseorarelikely togiverisetomajor difficulties fortheexporting Party,
thatParty maytakeappropriate measures under theconditions andinaccordance withtheprocedures
laiddown inArticle 31.
Article 30
Fulfilment ofObligations
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallensure thattheobjectives setoutintheAgreement areachieved.
2. IfaParty considers thattheother Party hasfailed tofulfilanobligation under thisAgreement,
theParty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedure laiddown inArticle 31.WT/REG19/1
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Article 31
Procedure fortheApplication ofSafeguard Measures
1. Before initiating theprocedure fortheapplication ofsafeguard measures setoutinthefollowing
paragraphs ofthisArticle, theParties shallendeavour tosolve anydifferences between themthrough
direct consultations.
2. Intheevent ofaParty subjecting imports ofproducts, liable togiverisetothesituation referred
toinArticle 27,toanadministrative procedure having asitspurpose therapid provision ofinformation
onthetrend oftrade flows, itshallinform theother Party.
3. Without prejudice toparagraph 7ofthisArticle, aParty which considers resorting tosafeguard
measuresshallpromptlynotifytheotherPartyandsupplyallrelevantinformation.Consultationsbetween
theParties shalltakeplace without delay withaviewtofinding asolution.
4. (a) Asregards Articles 26,27and29,incasethatajointsolution cannot befound, or
thattheParties cannot ordonotmeetwithin thirty daysinorder toconsult eachother,
theParty concerned mayadopt themeasures necessary inorder toremedy thesituation,
andappropriately notify theother Party.
(b) Asregards Article 30,theParty concerned maytakeappropriate measures afterthe
consultations havebeenconcluded orafteraperiod ofthree months haselapsed from
thedateofthenotification totheother Party.
(c) Asregards Articles 22and23,theParty concerned shallrequest fromtheother Party
toeliminate thepractice objected to.Iftheother Party failstoputanendtothepractice
objected to,orifanagreement cannot bereached within sixty days, theParty concerned
mayadopt appropriate countermeasures todealwiththeproblems resulting fromthe
practice inquestion.
5. Thesafeguard measures taken shallbenotified immediately totheother Party. They shall
belimited withregard totheirextent andtotheirduration towhatisstrictly necessary inorder torectify
thesituation giving risetotheirapplication andshallnotbeinexcess oftheinjury caused bythepractice
orthedifficulty inquestion. Priority shallbegiven tosuchmeasures aswillleastdisturb thefunctioning
oftheAgreement. Themeasures taken byaParty against anaction oranomission ofanother Party
mayonlyaffect thetrade withthatParty.
6. Thesafeguard measures taken shallbetheobject ofperiodic consultations withaviewtotheir
relaxation assoonaspossible, orabolition when conditions nolonger justify theirmaintenance.
7. Whereexceptionalcircumstancesrequiringimmediateactionmakepriorexaminationimpossible,
theParty concerned may, inthecases ofArticles 26,27and29,apply provisional measures strictly
necessary toremedy thesituation. Themeasures shallbenotified without delay andconsultations
between theParties shalltakeplace assoonaspossible.
Article 32
Balance ofPayments Difficulties
1. TheParties shallendeavour toavoid theimposition ofrestrictive measures including measures
relating toimports forbalance ofpayments reasons.WT/REG19/1
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2. Where oneoftheParties isinserious balance ofpayments difficulties, orunder imminent threat
thereof, theParty concerned may, inaccordance withtheconditions established under theGeneral
Agreement onTariffs andTrade, adopt restrictive measures, including measures related toimports,
which shallbeoflimited duration andmaynotgobeyond whatisnecessary toremedy thebalance
ofpayments situation. Themeasures shallbeprogressively relaxed asbalance ofpayments conditions
improve andtheyshallbeeliminated when conditions nolonger justify theirmaintenance. TheParty
shallinform theother Party forthwith oftheirintroduction and,assoonaspossible ofatimeschedule
fortheirremoval.
Article 33
Evolutionary Clause
1. Where aParty considers thatitwould beuseful intheinterests oftheeconomies oftheParties
todevelop anddeepen therelations established bytheAgreement byextending themtofields nothereby
covered, itshallsubmit areasoned request totheother Party. TheParties mayasktheJointCommittee
toexamine sucharequest and,where appropriate. tomake recommendations, particularly withaview
toopening ofnegotiations.
2. Agreements resulting fromtheprocedure referred toinparagraph 1willbesubject toratification
orapproval bytheParties inaccordance withtheirnational legislation.
Article 34
TheJoint Committee
1. TheParties agree tosetuptheJoint Committee composed ofrepresentatives oftheParties.
2. Theimplementation ofthisAgreement shall besupervised andadministered bytheJoint
Committee.
3. Forthepurpose oftheproper implementation ofthisAgreement, theParties shallexchange
information and,attherequest ofeither Party, shallholdconsultations within theJointCommittee.
TheCommittee shallkeepunder review thepossibility offurther removal oftheobstacles totrade
between theParties.
4. TheJointCommittee maytakedecisions inthecases provided forinthisAgreement. Onother
matters theCommittee maymake recommendations.
Article 35
Procedures oftheJoint Committee
1. Fortheproper implementation ofthisAgreement theJoint Committee shallmeetwhenever
necessary butatleastonceayear. Each Party mayrequest thatameeting beheld.
2. TheJoint Committee shalltakedecisions orrecommendations unanimously.
3. Ifeither sideintheJoint Committee accepts adecision, under reservation ofconstitutional
procedure, thedecision shall enter intoforce, ifnoother dateisforeseen therein, onthedayof
notification offulfilment oftheconstitutional procedure.WT/REG19/1
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4. TheJointCommittee shalladopt itsrulesofprocedure which shall, interalia,contain provisions
forconvening meetings andforthedesignation oftheChairman andatermofoffice.
5. TheJointCommittee maydecide tosetupsuchsubcommittees andworking groups asitmay
consider necessary, toassist inaccomplishing itstask.
Article 36
Trade Relations Governed bythisandOther Agreements
ThisAgreement shallnotprevent themaintenance orestablishment ofcustoms unions, free
trade areas orarrangements forfrontier trade, totheextend thattheydonotnegatively affect thetrade
regime andinparticular theprovisions concerning rules oforigin provided forbythisAgreement.
Article 37
Annexes, Protocols andAmendments
1. TheAnnexesandProtocolsattachedtothisAgreementareitsintegralpart.TheJointCommittee
maydecide toamend theAnnexes andProtocols inaccordance withtheprovisions ofparagraph 3of
thisArticle 35.
2. Proposals ofamendments tothisAgreement, other thanthose referred toinparagraph 4of
Article 34which areapproved bytheJoint Committee, shall besubmitted totheother Party for
acceptance andmayenter intoforce, when accepted bybothParties.
Article 38
Entry intoForce
ThisAgreement willbeapproved bytheParties inaccordance withtheirownprocedures.
ThisAgreement shallenter intoforce onthefirstdayofthesecond month following thedate
onwhich theParties notify eachother thattheprocedures referred tointhefirstparagraph havebeen
completed.
Article 39
Interim Application
Pending theentry intoforce ofthisAgreement according toArticle 38theParties agree to
apply thisAgreement onaninterim basis fromthefirstdayofthethirdmonth following thesigning
ofthisAgreement.
Either Party maycease theinterim application ofthisAgreement bymeans ofawritten
notification totheother Party. Theinterim application ofthisAgreement shallbeclosed sixmonths
afterthedateofsuchnotification.WT/REG19/1
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Article 40
Validity andWithdrawal
ThisAgreement isconcluded foranunlimited period.
Either Party maydenounce thisAgreement bymeans ofawritten notification totheotherParty.
ThisAgreement shallexpire sixmonths afterthedateofsuchnotification.
Done inLjubljana, on6April 1994, induplicate intheHungarian, Slovenian andEnglish
languages, whereas, forinterpretation purposes theEnglish version shallprevail.
FortheRepublic ofHungary FortheRepublic ofSloveniaWT/REG19/1
Page16
RECORD OFUNDERSTANDINGS
1. TheParties declare theirreadiness toexamine intheJointCommittee thepossibility ofextending
toeachother anyconcessions theygrant orwillgrant tothird countries withwhich theyconcluded
aFreeTrade Agreement orother similar agreement towhich Article XXIV oftheGeneral Agreement
onTariffs andTrade applies.
2. Asregards paragraph 2ofArticle 4,theParties agree thatwhere areduction ofduties iseffected
bywayofasuspension ofduties made foraparticular period oftime, suchreduced duties shallreplace
thebasicduties onlyfortheperiod ofsuchsuspension; andthatwhenever apartial suspension ofduties
ismade, thepreferential margin between theParties willbepreserved.
3. TheParties agree thatArticle 9doesnotapply when measures covered bythisArticle might
berequired fortheadministration ofinternational obligations.
4. Concerning Article 15theParties intend toharmonize theirveterinary andphytosanitary control
measures, withinternational codes andconventions andwiththerelevant regulations oftheEuropean
Communities.
5. When elaborating thecriteria andrules indicated inparagraph 3ofArticle 23,theParties:
- shallaimatensuring theirgreatest possible conformity withtherelevant criteria andrulesused
under theAgreement between each oftheParties ofthisAgreement andtheEuropean
Communities;
- shalldefine theconditions and/or situations when temporary derogations oftheprovisions of
paragraph 1maybeapplicable;
- shallreview theconditions under which actions against State aidpractices maybetaken.
6. Concerning paragraph 4ofArticle 23theJoint Committee shallwithin oneyearfollowing
theentry intoforce ofthisAgreement discuss andadopt thenecessary rules fortheimplementation
oftransparency measures.