RESTRICTED
WORLD TRADE WT/REG18/6
10May1996
ORGANIZATION(96-1835)
Original:English/French/Spanish
EUROPE AGREEMENT BETWEEN
THE EUROPEAN COMMUNITIES AND THE CZECH REPUBLIC
Thefollowing textreproduces theEurope Agreement1between theEuropean Communities
andtheCzech Republic.
_________________________
EUROPE AGREEMENT
establishing anassociation between theEuropean Communities andtheirMember States,
oftheonepart,andtheCzech Republic, oftheother part
THE KINGDOM OFBELGIUM, THE KINGDOM OFDENMARK, THE FEDERAL
REPUBLIC OFGERMANY, THE HELLENIC REPUBLIC, THE KINGDOM OFSPAIN, THE
FRENCH REPUBLIC, IRELAND, THE ITALIAN REPUBLIC, THE GRAND DUCHY OF
LUXEMBOURG, THEKINGDOM OFTHENETHERLANDS, THEPORTUGUESE REPUBLIC,
THE UNITED KINGDOM OFGREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties totheTreaty establishing theEuropean Economic Community, theTreaty
establishing theEuropean CoalandSteelCommunity andtheTreaty establishing theEuropean Atomic
Energy Community,
hereinafter referred toas'Member States ',and
THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN COAL AND STEEL
COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred toas
'theCommunity ',
oftheonepart,and
THE CZECH REPUBLIC
oftheother part,
1TheAnnexes andProtocols thereto havebeensubmitted totheSecretariat forconsultation by
interested Members (Office 3006).WT/REG18/6
Page2
Considering theimportance ofthelinksexisting between theCommunity, itsMember States
andtheCzech Republic andthecommon values thattheyshare;
Recognizing thattheCommunity andtheCzech Republic wishtostrengthen these linksand
toestablish close andlasting relations, based onreciprocity, which would allow theCzech Republic
totakepartintheprocess ofEuropean integration, thusstrengthening andwidening therelations
established inthepastnotably bytheAgreement onTrade andCommercial andEconomic Cooperation,
signed between theCommunity andtheCzech andSlovak Federal Republic on7May1990, andby
theInterim Agreement between theCommunity andtheCzech andSlovak Federal Republic which
entered intoforce on1March 1992;
Recognizing thatthedissolution oftheCzech andSlovak Federal Republic asof1January 1993
prior totheentry intoforce oftheEurope Agreement signed between theCommunity andtheCzech
andSlovak Federal Republic on16December 1991hasmade itnecessary toconclude separate Europe
Agreements witheachoftheSlovak Republic andtheCzech Republic;
Considering theopportunities forarelationship ofanewquality offered bytheemergence
ofanewdemocracy intheCzech Republic;
ConsideringthecommitmentoftheCommunityanditsMemberStatesandoftheCzechRepublic
tostrengthening thepolitical andeconomic freedoms which constitute theverybasisoftheassociation;
Recognizing theestablishment intheCzech Republic ofanewpolitical order which represents
theruleoflawandhuman rights, including therights ofpersons belonging tominorities, andoperates
amulti-party system withfreeanddemocratic elections;
Acknowledging thereadiness oftheCommunity tocontribute tothestrengthening ofthisnew
democratic order aswellastosupport thecreation intheCzech Republic ofaneweconomic order
founded upon theprinciples ofafreemarket economy;
Considering thefirmcommitment oftheCommunity anditsMember States andoftheCzech
Republic tothefullimplementation ofallprinciples andprovisions contained inparticular intheFinal
ActoftheConference onSecurity andCooperation inEurope (CSCE), theconcluding documents of
Vienna andMadrid andtheCharter ofParis foranewEurope;
Conscious oftheimportance ofthisEurope Agreement, hereinafter referred toasthe
'Agreement ',toestablishing inEurope asystem ofstability based oncooperation, withtheCommunity
asoneofthecornerstones;
Believing thatalinkshould bemade between fullimplementation ofassociation ontheone
hand, andtheactual accomplishment oftheCzech Republic 'spolitical, economic, andlegalreforms
ontheother hand, aswellastheintroduction ofthefactors necessary forcooperation andthe
rapprochement between theparties 'systems, notably inthelightoftheconclusions ontheCSCE Bonn
Conference;
Desirous ofestablishing regular political dialogue onbilateral andinternational issues ofmutual
interest;
Taking account oftheCommunity 'swillingness toprovide decisive support forthe
implementation ofreform andtohelptheCzech Republic cope with theeconomic andsocial
consequences ofstructural readjustment;WT/REG18/6
Page3
TakingaccountfurthermoreoftheCommunity'swillingnesstosetupinstrumentsofcooperation
andeconomic, technical andfinancial assistance onaglobal andmultiannual basis;
Considering thecommitment oftheCommunity andtheCzech Republic tofreetrade, andin
particular tocompliance withtherights andobligations arising outoftheGeneral Agreement onTariffs
andTrade;
Bearing inmind theeconomic andsocial disparities between theCommunity andtheCzech
Republicandthusrecognizingthattheobjectivesofthisassociationshouldbereachedthroughappropriate
provisions ofthisAgreement;
Convinced thatthisAgreement willcreate anewclimate fortheireconomic relations andin
particularforthedevelopmentoftradeandinvestment,instrumentswhichareindispensableforeconomic
restructuring andtechnological modernization;
Desirous ofestablishing cultural cooperation anddeveloping exchanges ofinformation;
Recognizing thefactthattheCzech Republic 'sultimate objective istoaccede totheCommunity,
andthatthisassociation, intheviewoftheParties, willhelptheCzech Republic toachieve thisobjective,
Have decided toconclude thisAgreement andtothisendhave designated astheir
plenipotentiaries,
THE KINGDOM OFBELGIUM:
Robert URBAIN
Secretary ofState forForeign Trade andEuropean Affairs
THE KINGDOM OFDENMARK:
Niels HELVEG PETERSEN
Minister forForeign Affairs
THE FEDERAL REPUBLIC OFGERMANY:
Klaus KINKEL
Minister forForeign Affairs
THE HELLENIC REPUBLIC:
Michel PAPAKONSTANTINOU
Minister forForeign Affairs
THE KINGDOM OFSPAIN:
Javier SOLANA
Minister forForeign AffairsWT/REG18/6
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THE FRENCH REPUBLIC:
Alain JUPPÉ
Minister forForeign Affairs
IRELAND:
Dick SPRING
Minister forForeign Affairs
THE ITALIAN REPUBLIC:
Paolo BARATTA
Secretary ofState forForeign Trade
THE GRAND DUCHY OFLUXEMBOURG:
Jacques POOS
Minister forForeign Affairs
THE KINGDOM OFTHE NETHERLANDS:
Peter KOOIJMANS
Minister forForeign Affairs
THE PORTUGUESE REPUBLIC:
JoséManuel DURÃOBARROSO
Minister forForeign Affairs
THE UNITED KINGDOM OFGREAT BRITAIN AND NORTHER IRELAND:
David HEATHCOAT-AMORY
Minister ofState forForeign Affairs
THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY
COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY:
Willy CLAES
Minister forForeign Affairs oftheKingdom ofBelgium,
President-in-Office oftheCouncil oftheEuropean Communities
SirLeon BRITTAN
Vice-President oftheCommission oftheEuropean Communities
Hans vandenBROEK
Member oftheCommission oftheEuropean CommunitiesWT/REG18/6
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THE CZECH REPUBLIC:
Josef ZIELENIEC
Minister forForeign Affairs
Whohaving exchanged theirfullpowers, found ingood anddueform,
HAVE AGREED ASFOLLOWS:
Article 1
1. AnAssociation ishereby established between theCommunity anditsMember States, onthe
onepart,andtheCzech Republic, ontheother part.
2. TheaimofthisAgreement is:
- toprovideanappropriateframeworkforthepoliticaldialogue,allowingthedevelopment
ofclose political relations between theParties,
- topromote theexpansion oftradeandtheharmonious economic relations between the
Parties andsotofoster thedynamic economic development andprosperity intheCzech
Republic,
- toprovide abasisfortheCommunity 'sfinancial andtechnical assistance totheCzech
Republic,
- toprovide anappropriate framework fortheCzech Republic 'sgradual integration into
theCommunity. Tothisend,theCzech Republic shallwork towards fulfilling the
necessary conditions,
- topromote cooperation incultural matters.
TITLE I
POLITICAL DIALOGUE
Article 2
Aregular political dialogue isestablished between theParties which theyintend todevelop
andintensify asaneffective means toaccompany andconsolidate therapprochement between the
Community andtheCzech Republic, support thepolitical andeconomic changes under wayinthat
country andcontribute totheestablishment oflasting linksofsolidarity andnewforms ofcooperation.
Thepolitical dialogue andcooperation, based onshared values andaspirations:
- willfacilitate theCzech Republic 'sfullintegration intothecommunity ofdemocratic
nations andprogressive rapprochement with theCommunity. Theeconomic
rapprochementprovidedforinthisAgreementwillleadtogreaterpoliticalconvergence,WT/REG18/6
Page6
- willleadtoanincreasing convergence ofpositions oninternational issues, andin
particular onthose issues likely tohavesubstantial effects ononeortheother Party,
- willcontribute totherapprochement oftheParties 'positions onsecurity issues.
Article 3
Atministerial level, political dialogue shalltakeplace within theAssociation Council. This
shallhavegeneral responsibility forallmatters which theParties might wishtoputtoit.
Article 4
Other procedures andmechanisms forpolitical dialogue shallbesetupbytheParties, and
inparticular inthefollowing forms:
- meetings asappropriate ofthePresident oftheCzech Republic ontheonehand, and
thePresident oftheEuropean Council andthePresident oftheCommission ofthe
European Communities, ontheother,
- meetings atsenior official level (political directors) between officials oftheSlovak
Republic, ontheonehand, andthePresidency oftheCouncil oftheEuropean
Communities andtheCommission, ontheother,
- taking fulladvantage ofdiplomatic channels,
- including theCzech Republic inthegroup ofcountries receiving regular information
ontheissues dealtwithbytheEuropean Political Cooperation aswellasexchanging
information withtheviewtoachieving theobjectives defined inArticle 2,
- anyother means which would make auseful contribution toconsolidating, developing
andstepping upthisdialogue.
Article 5
Political dialogue atparliamentary level shall takeplace within theframework ofthe
Parliamentary Association Committee.
TITLE II
GENERAL PRINCIPLES
Article 6
Respect forthedemocratic principles andhuman rights established bytheHelsinki Final Act
andtheCharter ofParis foranewEurope, aswellastheprinciples ofmarket economy, inspire the
domestic andexternal policies oftheParties andconstitute essential elements ofthepresent association.WT/REG18/6
Page7
Article 7
1. TheAssociation includes atransition period ofamaximum duration oftenyears divided into
twosuccessive stages, eachinprinciple lasting fiveyears. Thefirststage shall begin when this
Agreement enters intoforce.
2. TheAssociation Council shallproceed regularly toexamine theapplication ofthisAgreement
andtheaccomplishment oftheCzech Republic 'seconomic reforms onthebasis oftheprinciples
established inthepreamble.
3. During thecourse ofthe12months preceding theexpiration ofthefirststage, theAssociation
Council shallmeettodecide thetransition tothesecond stage aswellasanypossible changes tobe
brought about asregards measures concerning thecontent oftheprovisions governing thesecond stage.
Indoing this,itwilltakeintoaccount theresults oftheexamination mentioned inparagraph 2.
4. Thetwostages envisaged inparagraphs 1,2and3donotapply toTitleIII.
TITLE III
FREE MOVEMENT OFGOODS
Article 8
1. TheCommunityandtheCzechRepublicshallgraduallyestablishafreetradeareainatransitional
period lasting amaximum oftenyears starting fromtheentryintoforceofthisAgreement inaccordance
withtheprovisions ofthisAgreement andinconformity withthose oftheGeneral Agreement onTariffs
andTrade (GATT).
2. Thecombined nomenclature ofgoods shallbeapplied totheclassification ofgoods intrade
between thetwoParties.
3. Foreachproduct thebasic dutytowhich thesuccessive reductions setoutinthisAgreement
aretobeapplied shallbethedutyactually applied bytheCzech andSlovak Federal Republic erga
omnes on29February 1992.
4. If,afterentry intoforce ofthisAgreement, anytariff reduction isapplied onanergaomnes
basis, inparticular reductions resulting fromthetariff agreement concluded asaresult oftheGATT
Uruguay Round, suchreduced duties shallreplace thebasic duties referred toinparagraph 3asfrom
thatdatewhen suchreductions areapplied.
5. TheCommunity andtheCzech Republic shallcommunicate toeachother theirrespective basic
duties.WT/REG18/6
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CHAPTER I
Industrial products
Article 9
1. Theprovisions ofthisChapter shallapply toproducts originating intheCommunity andin
theCzech Republic listed inChapters 25to97ofthecombined nomenclature withtheexception of
theproducts listed inAnnex I.
2. Theprovisions ofArticles 10to14included donotapply toproducts mentioned inArticles 16
and17.
Article 10
1. Customs duties onimports applicable intheCommunity toproducts originating intheCzech
Republic other thanthose listed inAnnexes IIandIIIshallbeabolished ontheentry intoforce ofthis
Agreement.
2. Customs duties onimports applicable intheCommunity toproducts originating intheCzech
Republic listed inAnnex IIshallbereduced, onthedateofentry intoforce ofthisAgreement, by
20%ofthebasic dutyandoneyearthereafter byafurther 20%ofthebasic duty. Duties shallbe
totally abolished bytheendofthesecond yearaftertheentry intoforce oftheAgreement.
3. Theproducts ofCzech Republic origin listed inAnnex IIIshallbenefit fromasuspension of
customs duties onimports within thelimits ofannual Community tariff quotas orceilings increasing
progressively inaccordance withtheconditions defined inthatAnnex soastoarrive atacomplete
abolition ofcustoms duties onimports oftheproducts concerned attheendofthethirdyearafterthe
entry intoforce oftheAgreement.
Atthesame time, customs duties onimports applicable toimport quantities inexcess ofthe
quotas orceilings provided forabove shallbeprogressively dismantled from theentry intoforce of
thisAgreement byannual reductions of15%. Bytheendofthethird year, remaining duties shall
beabolished.
4. Quantitative restrictions andmeasures having aneffect equivalent toquantitative restrictions
onimports totheCommunity shallbeabolished onthedateofentry intoforce ofthisAgreement with
regard totheproducts originating intheSlovak Republic.
Article 11
1. Customs duties onimports applicable intheCzech Republic toproducts originating inthe
Community which arelisted inAnnex IVshallbeabolished onthedateofentry intoforce ofthis
Agreement.
2. Customs duties onimports applicable intheCzech Republic toproducts originating inthe
Community which arelisted inAnnex Vshallbeprogressively reduced inaccordance withthefollowing
timetable:
- onthedateofentry intoforce ofthisAgreement eachdutyshallbereduced to40%
ofthebasic duty,WT/REG18/6
Page9
- three years afterthedateofentry intoforce ofthisAgreement eachdutyshall be
reduced to40%ofthebasic duty,
- fiveyears afterthedateofentry intoforce ifthisAgreement theremaining duties shall
beeliminated.
3. Customs duties onimports applicable intheCzech Republic toproducts originating inthe
Community which arelisted inAnnex VIshallbeprogressively reduced according tothefollowing
timetable:
- three years afterthedateofentry intoforce ofthisAgreement eachdutyshall be
reduced to80%ofthebasic duty,
- fiveyears afterthedateofentry intoforceofthisAgreement eachdutyshallbereduced
to60%ofthebasic duty,
- seven years afterthedateofentry intoforce ofthisAgreement eachdutyshallbe
reduced to40%ofthebasic duty,
- nineyears afterthedateofentry intoforce ofthisAgreement theremaining duties
shallbeeliminated.
4. Customs duties onimports applicable intheCzech Republic toproducts originating inthe
CommunitywhicharelistedinAnnexVIIshallbeprogressivelyreducedinaccordancewiththefollowing
timetable:
- onthedateofentry intoforce ofthisAgreement eachdutyshallbereduced to80%
ofthebasic duty,
- three years afterthedateofentry intoforce ofthisAgreement eachdutyshall be
reduced to60%ofthebasic duty,
- fiveyears afterthedateofentry intoforceofthisAgreement eachdutyshallbereduced
to40%ofthebasic duty,
- seven years afterthedateofentry intoforce ofthisAgreement eachdutyshallbe
reduced to20%ofthebasic duty,
- nineyears afterthedateofentry intoforce ofthisAgreement theremaining duties
shallbeeliminated.
5. Quantitative restrictions onimports intotheCzech Republic ofproducts originating inthe
Community shall beabolished upon entry intoforce ofthisAgreement, except forthose listed in
Annex VIII, which shallbeprogressively abolished bytheendofthetransitional period.
6. Measures having aneffect equivalent toquantitative restrictions onimports intotheCzech
Republic ofproducts originating intheCommunity shallbeabolished upon entry intoforce ofthis
Agreement.WT/REG18/6
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Article 12
Theprovisions concerning theabolition ofcustoms duties onimports shallalsoapply tocustoms
duties ofafiscal nature.
Article 13
TheCommunity andtheCzech Republic shallabolish uponentry intoforce ofthisAgreement
intrade between themselves, anycharges having aneffect equivalent tocustoms duties onimports.
Article 14
1. TheCommunity andtheCzech Republic shallprogressively abolish between thematthelatest
bytheendofthefifthyearafterentry intoforce ofthisAgreement anycustoms duties onexports and
charges having equivalent effect.
2. Quantitative restrictions onexports totheCzech Republic andanymeasures having equivalent
effect shallbeabolished bytheCommunity ontheentry intoforce ofthisAgreement.
3. Quantitative restrictions onexports totheCommunity andanymeasures having equivalent
effect shallbeabolished bytheCzech Republic upon entry intoforce ofthisAgreement, except for
those restrictions listed inAnnex IXwhich shallbeabolished atthelatest bytheendofthefifthyear
aftertheentry intoforce ofthisAgreement.
Article 15
EachParty declares itsreadiness toreduce itscustoms duties intradewiththeother Party more
rapidly thanisprovided forinArticles 10and11ifitsgeneral economic situation andthesituation
oftheeconomic sector concerned sopermit.
TheAssociation Council maymake recommendations tothiseffect.
Article 16
Protocol 1laysdown thearrangements applicable tothetextile products referred totherein.
Article 17
Protocol 2laysdown thearrangements applicable toproducts covered bytheTreaty establishing
theEuropean CoalandSteel Community.
Article 18
1. Theprovisions ofthisChapter donopreclude theretention bytheCommunity ofanagricultural
component intheduties applicable toproducts listed inAnnex Xinrespect ofproducts originating
intheCzech Republic.
2. Theprovisions ofthisChapter donotpreclude theintroduction ofanagricultural component
bytheCzech Republic intheduties applicable totheproducts listed inAnnex Xinrespect ofproducts
originating intheCommunity.WT/REG18/6
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CHAPTER II
Agriculture
Article 19
1. Theprovisions ofthisChapter shallapply toagricultural products originating intheCommunity
andintheCzech Republic.
2. 'Agricultural products 'means theproducts listed inChapters 1to24ofthecombined
nomenclature andtheproducts listed inAnnex I,butexcluding fishery products asdefined byRegulation
(EEC) No.3687/91.
Article 20
Protocol 3laysdown thetrade arrangements forprocessed agricultural products which are
listed insuchProtocol.
Article 21
1. TheCommunity shallabolish atthedateofentry intoforce ofthisAgreement thequantitative
restrictions onimports ofagricultural products originating intheCzech Republic maintained byvirtue
ofCouncil Regulation (EEC) No.288/82 intheform existing onthedateofsignature hereof.
2. Theagricultural products originating intheCzech Republic listed inAnnex XIaorXIbshall
benefit, upon thedateofentry intoforce ofthisAgreement, from thereduction oflevies within the
limitofCommunity quotas orfromthereduction ofcustoms duties andupontheconditions provided
inthesame Annex.
3. Imports intotheCzech Republic ofagricultural products originating intheCommunity shall
befreeofquantitative restrictions.
4. TheCommunity andtheCzech Republic shallgrant eachother theconcessions referred to
inAnnexes XII,XIIIandXIV, onaharmonious andreciprocal basis, inaccordance withtheconditions
laiddown therein.
5. Taking account ofthevolume oftradeinagricultural products between them, oftheirparticular
sensitivity, oftherules ofthecommon agricultural policy oftheCommunity, oftherules ofthe
agricultural policy oftheCzech Republic, andoftheconsequences ofthemultilateral tradenegotiations
under theGeneral Agreement onTariffs andTrade, theCommunity andtheCzech Republic shall
examine intheAssociation Council, product byproduct andonanorderly andreciprocal basis, the
possibilities ofgranting eachother further concessions.
Article 22
Notwithstanding other provisions ofthisAgreement, andinparticular Article 31,if,given
theparticular sensitivity oftheagricultural markets, imports ofproducts originating inoneParty, which
arethesubject ofconcessions granted inArticle 21,cause serious disturbance tothemarkets inthe
other Party, bothParties shallenter intoconsultations immediately tofindanappropriate solution.
Pending suchsolution, theParty concerned maytakethemeasures itdeems necessary.WT/REG18/6
Page12
CHAPTER III
Fisheries
Article 23
Theprovisions ofthisChapter shallapply tofishery products originating intheCommunity
andintheCzech Republic, which arecovered byRegulation (EEC) No.3687/91 onthecommon
organization ofthemarket inthesector offishery products.
Article 24
Thefishery products originating intheCzech Republic listed inAnnex XVshallbenefit upon
thedateofentry intoforce ofthisAgreement from thereduction ofcustoms duties provided inthat
Annex. Theprovisions ofArticle 21(5)shallapply mutatis mutandis tofishery products.
CHAPTER IV
Common provisions
Article 25
Theprovisions ofthisChapter shallapply totrade inallproducts except where otherwise
provided herein orinProtocols 1,2and3.
Article 26
1. Nonewcustoms duties onimports orexports orcharges having equivalent effect shallbe
introduced, norshallthose already applied beincreased, intradebetween theCommunity andtheCzech
Republic from thedateofentry intoforce ofthisAgreement.
2. Nonewquantitative restriction onimports orexports ormeasure having equivalent effect shall
beintroduced, norshallthose existing bemade more restrictive, intradebetween theCommunity and
theCzech Republic from thedateofentry intoforce ofthisAgreement.
3. Without prejudice totheconcessions granted under Article 21,theprovisions ofparagraphs 1
and2ofthisArticle shallnotrestrict inanywaythepursuance oftherespective agricultural policies
oftheCzech Republic andtheCommunity orthetaking ofanymeasures under suchpolicies.
Article 27
1. ThetwoParties shall refrain from anymeasure orpractice ofaninternal fiscal nature
establishing, whether directly orindirectly, discrimination between theproducts ofoneParty andlike
products originating intheterritory oftheother Party.
2. Products exported totheterritory ofoneofthetwoParties maynotbenefit from repayment
ofinternal taxation inexcess oftheamount ofdirect ofindirect taxation imposed onthem.WT/REG18/6
Page13
Article 28
1. ThisAgreement shallnotpreclude themaintenance ofestablishment ofcustoms unions, free
trade areas orarrangements forfrontier trade except insofarastheyalterthetrade arrangements
provided forinthisAgreement.
2. Consultations between theParties shalltakeplace within theAssociation Council concerning
agreements establishing suchcustoms unions orfreetradeareas and,where requested, onother major
issues related totheirrespective trade policy withthirdcountries. Inparticular intheevent ofathird
country acceding totheCommunity, suchconsultations shalltakeplace soastoensure thataccount
canbetaken ofthemutual interests oftheCommunity andtheCzech Republic stated inthisAgreement.
Article 29
Exceptional measures oflimited duration which derogate from theprovisions ofArticles 11
and26(1)maybetaken bytheCzech Republic intheform ofincreased customs duties.
These measures mayonlyconcern infant industries, orcertain sectors undergoing restructuring
orfacing serious difficulties, particularly where these difficulties produce important social problems.
Customs duties onimports applicable intheCzech Republic toproducts originating inthe
Communityintroducedbythesemeasuresmaynotexceed25%advaloremandshallmaintainanelement
ofpreference forproducts originating intheCommunity. Thetotalvalue ofimports oftheproducts
which aresubject tothese measures maynotexceed 15%oftotalimports from theCommunity of
industrial products asdefined inChapter I,during thelastyearforwhich statistics areavailable.
These measures shallbeapplied foraperiod notexceeding fiveyears, unless alonger duration
isauthorized bytheAssociation Council. They shallcease toapply atthelatest attheexpiration of
thetransitional period.
Nosuchmeasures canbeintroduced inrespect ofaproduct ifmorethanthreeyears haveelapsed
sincetheeliminationofalldutiesandquantitativerestrictionsorchargesormeasureshavinganequivalent
effect concerning thatproduct.
TheCzech Republic shallinform theAssociation Council ofanyexceptional measures itintends
totakeand,attherequest oftheCommunity, consultations shallbeheldintheAssociation Council
onsuchmeasures andthesectors towhich theyapply before theyareapplied. When taking such
measures theCzech Republic shallprove theAssociation Council withaschedule fortheelimination
ofthecustoms duties introduced under thisArticle. Thisschedule shallprovide foraphasing outof
theseduties starting atthelatest twoyears aftertheirintroduction atequal annual rates. TheAssociation
Council maydecide onadifferent schedule.
Article 30
IfoneoftheParties finds thatdumping istaking place intrade withtheother Party within
themeaning ofArticle VIoftheGeneral Agreement onTariffs andTrade, itmaytakeappropriate
measures against thispractice inaccordance withtheAgreement relating totheapplication ofArticle VI
oftheGeneral Agreement onTariffs andTrade, withrelated internal legislation andwiththeconditions
andprocedures laiddown inArticle 34.WT/REG18/6
Page14
Article 31
Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocase:
- serious injury todomestic producers oflikeordirectly competitive products inthe
territory ofoneoftheContracting Parties, or
- serious disturbances inanysector oftheeconomy ordifficulties which could bring
about serious deterioration intheeconomic situation ofaregion.
TheCommunity ortheCzech Republic, whichever isconcerned, maytakeappropriate measures
under theconditions andinaccordance withtheprocedures laiddown inArticle 34.
Article 32
Where compliance withtheprovisions ofArticles 14and26leads to-
(i) re-export towards athirdcountry against which theexporting Party maintains, fortheproduct
concerned, quantitative export restrictions, export duties ormeasures having equivalent effect;
or
(ii) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party,
andwhere thesituations abovementioned giverise,orarelikely togiverise,tomajor difficulties
fortheexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedureslaiddowninArticle34.TheMeasuresshallbenon-discriminatoryandbeeliminated
when conditions nolonger justify theirmaintenance.
Article 33
TheMember States andtheCzech Republic shallprogressively adjust anyState monopolies
ofacommercial character soastoensure that,bytheendofthefifthyearfollowing theentry into
force ofthisAgreement, nodiscrimination regarding theconditions under which goods areprocured
andmarketed exists between nationals oftheMember States andoftheCzech Republic. TheAssociation
Council willbeinformed about themeasures adopted toimplement thisobjective.
Article 34
1. Intheevent oftheCommunity ortheCzech Republic subjecting imports ofproducts liable
togiverisetothedifficulties referred toinArticle 31toanadministrative procedure having asitspurpose
therapid provision ofinformation onthetrend oftrade flows, itshallinform theother Party.
2. Inthecasespecified inArticles 30,31and32,before taking themeasures provided fortherein
or,incasestowhich paragraph 3(d)applies, assoonaspossible, theCommunity ortheCzech Republic,
asthecasemaybe,shallsupply theAssociation Council withallrelevant information, withaview
toseeking asolution acceptable tothetwoParties.
Intheselection ofmeasures, priority mustbegiven tothose which leastdisturb thefunctioning
ofthisAgreement.WT/REG18/6
Page15
Thesafeguard measures shallbenotified immediately totheAssociation Council andshall
bethesubject ofperiodic consultations within thatbody, particularly withaview toestablishing a
timetable fortheirabolition assoonascircumstances permit.
3. Fortheimplementation ofparagraph 2,thefollowing provisions shallapply:
(a) asregards Article 31,thedifficulties arising fromthesituation referred tointhatArticle shall
bereferred forexamination totheAssociation Council, which maytakeanydecision needed
toputanendtosuchdifficulties.
IftheAssociation Council ortheexporting Party hasnottaken adecision putting anendto
thedifficulties ornoother satisfactory solution hasbeenreached within 30daysofthematter
being referred, theimporting Party mayadopt theappropriate measures toremedy theproblem.
These measures mustnotexceed thescope ofwhatisnecessary toremedy thedifficulties which
havearisen;
(b) asregards Article 30,theAssociation Council shallbeinformed ofthedumping caseassoon
astheauthorities oftheimporting Party haveinitiated aninvestigation. When noendhasbeen
puttothedumping within themeaning ofArticle VIoftheGATT ornoother satisfactory
solution hasbeenreached within 30daysofthematter being referred totheAssociation Council,
theimporting Party mayadopt theappropriate measures;
(c) asregards Article 32,thedifficulties arising fromthesituations referred tointhatArticle shall
bereferred forexamination totheAssociation Council.
TheAssociation Council maytakeanydecision needed toputanendtothedifficulties. If
ithasnottaken suchadecision within 30daysofthematter being referred toit,theexporting
Party mayapply appropriate measures ontheexportation oftheproduct concerned;
(d) where exceptional circumstances requiring immediate action make prior information or
examination, asthecasemaybe,impossible, theCommunity ortheCzech Republic whichever
isconcerned may, inthesituations specified inArticles 30,31and32,apply forthwith the
precautionary andprovisional measures strictly necessary todealwiththesituation, andthe
Association Council willbeinformed immediately.
Article 35
Protocol 4laysdown rules oforigin fortheapplication oftariff preferences provided forin
thisAgreement.
Article 36
TheAgreement shallnotpreclude prohibitions orrestrictions onimports, exports orgoods
intransit justified ongrounds ofpublic morality, public policy orpublic security; theprotection of
health andlifeofhumans, animals orplants; theprotection ofexhaustible natural resources; the
protectionofnationaltreasuresofartistic,historicorarchaeologicalvalueortheprotectionofintellectual,
industrial andcommercial property orrulesrelating togoldandsilver. Suchprohibitions orrestrictions
shallnot,however, constitute ameans ofarbitrary discrimination oradisguised restriction ontrade
between theParties.WT/REG18/6
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Article 37
Protocol 5laysdown thespecific provisions toapply totrade between theCzech Republic,
oftheonepart,andSpain andPortugal, oftheother part.
TITLE IV
MOVEMENT OFWORKERS, ESTABLISHMENT, SUPPLY OFSERVICES
CHAPTER I
Movement ofworkers
Article 38
1. Subject totheconditions andmodalities applicable ineachMember State:
- treatment accorded toworkers ofCzech Republic nationality, legally employed inthe
territory ofaMember Stateshallbefreefromanydiscrimination based onnationality,
asregards working conditions, remuneration ordismissal, ascompared toitsown
nationals,
- thelegally resident spouse andchildren ofaworker legally employed intheterritory
ofaMember State, withtheexception ofseasonal workers andofworkers coming
under bilateral agreements within themeaning ofArticle 42,unless otherwise provided
bysuchagreements, shallhaveaccess tothelabour market ofthatMember State, during
theperiod ofthatworkers 'authorized stayofemployment.
2. TheCzech Republic shall, subject totheconditions andmodalities applicable inthatcountry,
accord thetreatment referred toinparagraph 1toworkers whoarenationals ofaMember Stateand
arelegally employed initsterritory aswellastotheirspouse andchildren whoarelegally resident
inthesaidterritory.
Article 39
1. Withaviewtocoordinating social security systems forworkers ofCzech Republic nationality,
legally employed intheterritory ofaMember Stateandforthemembers oftheirfamily, legally resident
there, andsubject totheconditions andmodalities applicable ineachMember State:
- allperiods ofinsurance, employment orresidence completed bysuchworkers inthe
various Member States shallbeadded together forthepurpose ofpensions andannuities
inrespect ofoldage,invalidity anddeath andforthepurpose ofmedical careforsuch
workers andsuchfamily members,
- anypensions orannuities inrespect ofoldage,death, industrial accident oroccupational
disease, orofinvalidity resulting therefrom, withtheexception ofnon-contributory
benefits, shallbefreely transferable attherateapplied byvirtue ofthelawofthedebtor
Member State orStates,WT/REG18/6
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- theworkers inquestion shallreceive family allowances forthemembers oftheirfamily
asdefined above.
2. TheCzech Republic shallaccord toworkers whoarenationals ofaMember Stateandlegally
employed initsterritory, andtomembers oftheirfamilies legally resident there, treatment similar
tothatspecified inthesecond andthirdindents ofparagraph 2.
Article 40
1. TheAssociation Council shallbydecision adopt theappropriate provisions toimplement the
objective setoutinArticle 39.
2. TheAssociation Council shallbydecision adopt detailed rulesforadministrative cooperation
providing thenecessary management andcontrol guarantees fortheapplication oftheprovisions referred
toinparagraph 1.
Article 41
Theprovisions adopted bytheAssociation Council inaccordance withArticle 40shallnot
affect anyrights orobligations arising from bilateral agreements linking theCzech Republic andthe
Member States where those agreements provide formorefavourable treatment ofnationals oftheCzech
Republic oftheMember States.
Article 42
1. Taking intoaccount thelabour market situation intheMember State, subject toitslegislation
andtotherespect ofrules inforce inthatMember State intheareofmobility ofworkers:
- theexisting facilities foraccess toemployment forCzech Republic workers accorded
byMember States under bilateral agreements ought tobepreserved andifpossible
improved,
- theother Member States shallconsider favourably thepossibility ofconcluding similar
agreements.
2. TheAssociationCouncilshallexaminegrantingotherimprovementsincludingfacilitiesofaccess
forprofessional training, inconformity withrulesandprocedures inforce intheMember States, and
taking account ofthelabour market situation intheMember States andintheCommunity.
Article 43
During thesecond stagereferred toinArticle 7,orearlier ifsodecided, theAssociation Council
shallexamine further ways ofimproving themovement ofworkers, taking intoaccount interaliathe
social andeconomic situation intheCzech Republic andtheemployment situation intheCommunity.
TheAssociation Council shallmake recommendations tosuchend.
Article 44
Intheinterest offacilitating therestructuring oflabour resources resulting fromtheeconomic
restructuringintheCzechRepublictheCommunityshallprovidetechnicalassistancefortheestablishment
ofasuitable social security system intheCzech Republic assetoutinArticle 88.WT/REG18/6
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CHAPTER II
Establishment
Article 45
1. TheCzech Republic shall, during thetransitional periods referred toinArticle 7,facilitate
thesetting upofoperations onitsterritory byCommunity companies andnationals. Tothatend,it
shall:
(i) grant, fromentry intoforce ofthisAgreement fortheestablishment ofCommunity companies
andnationals atreatment nolessfavourable thanthataccorded toitsownnationals and
companies, saveforthesectors andmatters referred toinAnnexes XVIa andXVIb, where
suchtreatment shallbegranted atthelatest bytheendofthetransitional period referred to
inArticle 7;and
(ii) grant, fromentry intoforce ofthisAgreement, intheoperation ofCommunity companies and
nationals established intheCzech Republic atreatment nolessfavourable thanthataccorded
toitsowncompanies andnationals;
(iii) notwithstanding theprovisions ofindents (i)and(ii),thenational treatment asdescribed in
indents(i)and(ii)shallbeapplicableforCommunitynationalsestablishingintheCzechRepublic
asself-employed persons onlyfrom thestartofthesixth yearfollowing entry intoforce of
thisAgreement.
2. TheCzech Republic shall, during thetransitional periods referred toinparagraph 1,notadopt
anynewregulations ormeasures which introduce discrimination asregards theestablishment and
operations ofCommunity companies andnationals initsterritory incomparison toitsowncompanies
andnationals.
3. Each Member Stateshallgrant, fromentry intoforce ofthisAgreement, atreatment noless
favourable thanthataccorded toitsowncompanies andnationals fortheestablishment ofCzech Republic
companies andnationals andshallgrant intheoperation ofCzech Republic companies andnationals
established initsterritory atreatment nolessfavourable thanthataccorded toitsowncompanies and
nationals.
4. Forthepurposes ofthisAgreement:
(a) establishment shallmean:
(i) asregards nationals, therighttotakeupandpursue economic activities asself-employed
persons andtosetupandmanage undertakings, inparticular companies, which they
effectively control. Self-employment andbusiness undertakings bynationals shallnot
exceed toseeking ortaking employment inthelabour market ofanother Party.
Theprovisions ofthisChapter donotapply tothose whoarenotexclusively
self-employed;
(ii) asregards companies, therighttotakeupandpursue economic activities bymeans
ofthesetting upandmanagement ofsubsidiaries, branches andagencies;WT/REG18/6
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(b) subsidiary ofacompany shallmean acompany which iseffectively controlled bythefirst
company;
(c) economic activities shallinparticular include activities ofanindustrial character, activities
ofacommercial character, activities ofcraftsmen andactivities oftheprofessions.
5. TheAssociation Council shallduring thetransitional periods referred toinparagraph 1(i)
and(iii)examine regularly thepossibility ofaccelerating thegranting ofnational treatment inthesectors
referred toinAnnexes XVIa andXVIb andtheinclusion ofareas ormatters listed inAnnex XVIc
within thescope ofapplication oftheprovisions ofparagraphs 1,2and3ofthisArticle. Amendments
maybemade tothese Annexes bydecision oftheAssociation Council.
Following theexpiration ofthetransitional periods referred toinparagraph 1(i)and(iii),the
Association Council mayexceptionally, uponrequest oftheCzech Republic, andifthenecessity arises,
decide toprolong theduration ofexclusion ofcertain areas ormatters listed inAnnexes XVIa and
XVIb foralimited period oftime.
6. Theprovisions concerning establishment andoperation ofCommunity andCzech Republic
companies andnationals contained inparagraphs 1,2and3ofthisArticle shallnotapply totheareas
ormatters listed inAnnex XVIc.
7. NotwithstandingtheprovisionsofthisArticle,Communitycompaniesestablishedintheterritory
oftheCzech Republic shallhave, upon entry intoforce ofthisAgreement, where necessary forthe
conduct oftheeconomic activities forwhich theyareestablished, therighttoacquire, use,rentand
sellrealproperty, andasregards natural resources, agricultural landandforestry, therighttolease.
TheCzech Republic shallgrant these rights, where necessary fortheconduct oftheeconomic
activities forwhich theyareestablished, tobranches andagencies established intheczech Republic
ofCommunity companies atthelatest bytheendofthesixth yearfollowing theentry intoforce of
thisAgreement.
TheCzech Republic shallgrant these rights, where necessary fortheconduct oftheeconomic
activities forwhich theyareestablished, toCommunity nationals established intheCzech Republic
asself-employed persons atthelatest bytheendofthetransitional period referred toinArticle 7.
Article 46
1. Subject totheprovisions ofArticle 45,withtheexception offinancial services described in
Annex XVIa, eachParty mayregulate theestablishment andoperation ofcompanies andnationals on
itsterritory, insofarasthese regulations donotdiscriminate against companies andnationals ofthe
other Party, incomparison toitsowncompanies andnationals.
2. Inrespect offinancial services, described inAnnex XVIa, thisAgreement doesnotprejudice
therightoftheParties toadopt measures necessary fortheconduct oftheParty'smonetary policy,
orforprudential grounds inorder toensure theprotection ofinvestors, depositors, policy holders,
orpersons towhom afiduciary dutyisowed, ortoensure theintegrity andstability ofthefinancial
system. These measures shallnotdiscriminate ongrounds ofnationality against companies andnationals
oftheother Party incomparison toitsowncompanies andnationals.WT/REG18/6
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Article 47
Inorder tomake iteasier forCommunity nationals andCzech Republic nationals totakeup
andpursue regulated professional activities intheCzech Republic andtheCommunity respectively,
theAssociation Council shallexamine which stepsarenecessary tobetaken toprovide forthemutual
recognition ofqualifications. Itmaytakeallnecessary measures tothatend.
Article 48
Theprovisions ofArticle 46donotpreclude theapplication byaContracting Party ofparticular
rulesconcerning theestablishment andoperation initsterritory ofbranches andagencies ofcompanies
ofanother Party notincorporated intheterritory ofthefirstParty, which arejustified bylegal or
technical differences between suchbranches andagencies ascompared tobranches andagencies of
companies incorporated initsterritory, or,asregards financial services, forprudential reasons. The
difference intreatment shallnotgobeyond whatisstrictly necessary asaresult ofsuchlegalortechnical
differences, or,asregards financial services, described inAnnex XVIa, forprudential reasons.
Article 49
1. A'Community company 'anda'Czech Republic company 'respectively shall, forthepurpose
ofthisAgreement, mean acompany orafirmsetupinaccordance withlawsofaMember State or
oftheCzech Republic respectively andhaving itsregistered office, central administration, orprincipal
place ofbusiness intheterritory oftheCommunity ortheCzech Republic respectively. However,
should thecompany orfirm, setupinaccordance withthelawsofaMember State oroftheCzech
Republic respectively, haveonlyitsregistered office intheterritory oftheCommunity ortheCzech
Republic respectively, itsoperations mustpossess arealandcontinuous linkwiththeeconomy ofone
oftheMember States ortheCzech Republic respectively.
2. With regard tointernational maritime transport, shallalsobebeneficiaries oftheprovisions
ofthisChapter andChapter IIIofthisTitle, anational orashipping company oftheMember States
oroftheCzech Republic respectively established outside theCommunity ortheCzech Republic
respectively andcontrolled bynationals ofaMember State, orCzech Republic nationals respectively,
iftheirvessels areregistered inthatMember StateorintheCzech Republic respectively inaccordance
withtheirrespective legislations.
3. ACommunity andaCzech Republic national respectively shall, forthepurpose ofthis
Agreement, mean anatural person whoisanational ofoneoftheMember States oroftheCzech
Republic respectively.
4. TheprovisionsofthisAgreementshallnotprejudicetheapplicationbyeachPartyofanymeasure
necessary toprevent thecircumvention ofitsmeasures concerning thirdcountry access toitsmarket
through theprovisions ofthisAgreement.
Article 50
Forthepurpose ofthisAgreement 'financial services 'shallmean those activities described
inAnnex XVIa. TheAssociation Council mayextend ormodify thescope ofAnnex XVIa.WT/REG18/6
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Article 51
During thefirstsixyears following thedateofentry intoforce ofthisAgreement, orforthe
sectors referred toinAnnexes XVIa andXVIb, during thetransitional period referred toinArticle 7,
theCzech Republic mayintroduce measures which derogate from theprovisions ofthischapter as
regards theestablishment ofCommunity companies andnationals ifcertain industries:
- areundergoing restructuring, or
- arefacing serious difficulties, particularly where these entail serious social problems
intheCzech Republic, or
- facetheelimination oradrastic reduction ofthetotalmarket share heldbyCzech
Republic companies ornationals inagiven sector orindustry intheCzech Republic,
or
- arenewly emerging industries intheCzech Republic.
Such measures:
(i) shallcease toapply atthelatest twoyears aftertheexpiration ofthesixthyearfollowing
thedateofentry intoforce ofthisAgreement orforthesectors included inAnnex
XVIa andinAnnex XVIb upon theexpiration ofthetransitional period referred to
inArticle 7;and
(ii) shallbereasonable andnecessary inorder toremedy thesituation; and
(iii) shallonlyrelate toestablishment intheCzech Republic tobecreated aftertheentry
intoforce ofsuchmeasures andshall notintroduce discrimination concerning the
operations ofCommunity companies ornationals already established intheCzech
Republic atthetimeofintroduction ofagiven measure compared toCzech Republic
companies ornationals.
TheAssociation Council mayexceptionally, upon request oftheCzech Republic, andifthe
necessity arises, decide toprolong theperiods referred toinpoint (i)above foragiven sector fora
limited period oftime.
While devising andapplying suchmeasures, theCzech Republic shallgrant whenever possible
toCommunitycompaniesandnationalsapreferentialtreatment,andinnocaseatreatmentlessfavourable
thanthataccorded tocompanies ornationals from anythirdcountry.
Prior totheintroduction ofthese measures, theCzech Republic shallconsult theAssociation
Council andshallnotputthemintoeffect before aone-month period following thenotification tothe
Association Council oftheconcrete measures tobeintroduced bytheCzech Republic, except where
thethreat ofirreparable damage requires thetaking ofurgent measures inwhich casetheCzech Republic
shallconsult theAssociation Council immediately aftertheirintroduction.
Upon theexpiration ofthesixthyearfollowing theentry intoforce ofthisAgreement, orfor
thesectors included inAnnexes XVIa andXVIb upon expiration ofthetransitional period referred
toinArticle 7,theCzech Republic mayintroduce suchmeasures onlywiththeauthorization ofthe
Association Council andunder conditions determined bythelatter.WT/REG18/6
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Article 52
1. TheprovisionsofthisChaptershallnotapplytoairtransportservices,inland-waterwaystransport
services andmaritime cabotage transport services.
2. TheAssociationCouncilmaymakerecommendationsforimprovingestablishmentandoperations
intheareas covered byparagraph 1.
Article 53
1. Notwithstanding theprovisions ofChapter IofthisTitle, thebeneficiaries oftherights of
establishmentgrantedbytheCzechRepublicandtheCommunityrespectivelyshallbeentitledtoemploy,
orhaveemployed byoneoftheirsubsidiaries, inaccordance withthelegislation inforce inthehost
country ofestablishment, intheterritory oftheCzech Republic andtheCommunity respectively,
employeeswhoarenationalsofCommunityMemberStatesandtheCzechRepublicrespectively,provided
thatsuchemployees arekeypersonnel asdefined inparagraph 2,andthattheyareemployed exclusively
bysuchbeneficiaries ortheirsubsidiaries. Theresidence andwork permits ofsuchemployees shall
onlycover theperiod ofsuchemployment.
2. Keypersonnelofthebeneficiariesoftherightsofestablishmenthereinreferredtoasorganization
are:
(a) senior employees ofanorganization whoprimarily direct themanagement oftheorganization,
receiving general supervision ordirection principally fromtheboard ofdirectors orshareholders
ofthebusiness, including:
- directing theorganization oradepartment orsub-division oftheorganization,
- supervising andcontrolling thework ofother supervisory, professional ormanagerial
employees,
- having theauthority personally toengage anddismiss orrecommend engaging,
dismissing orother personnel actions;
(b) persons employed byanorganization whopossess highoruncommon:
- qualificationsreferringtoatypeofworkortraderequiringspecifictechnicalknowledge,
- knowledge essential totheorganization 'sservice, research equipment, techniques or
management.
These mayinclude, butarenotlimited to,members ofaccredited professions.
Eachsuchemployee musthavebeenemployed bytheorganization concerned foratleastone
yearpreceding thedetachment bytheorganization.
Article 54
1. Theprovisions ofthischapter shallbeapplied subject tolimitations justified ongrounds of
public policy, public security orpublic health.WT/REG18/6
Page23
2. They shall notapply toactivities which intheterritory ofeachParty areconnected, even
occasionally, withtheexercise ofofficial authority.
Article 53
Companies which arecontrolled andexclusively owned jointly byCzech Republic companies
ornationals andCommunity companies ornationals shallalsobebeneficiaries oftheprovisions of
thisChapter andChapter IIIofthisTitle.
CHAPTER III
Supply ofservices between theCommunity andtheCzech Republic
Article 56
1. TheParties undertake inaccordance withtheprovisions ofthisChapter totakethenecessary
steps toallow progressively thesupply ofservices byCommunity orCzech Republic companies or
nationals whoareestablished inaParty other thanthatoftheperson forwhom theservices areintended
taking intoaccount thedevelopment oftheservices sector intheParties.
2. Instepwiththeliberalization process mentioned inparagraph 1,andsubject totheprovisions
ofArticle 59(1),theParties shallpermit thetemporary movement ofnatural persons providing the
service orwhoareemployed bytheservice provider askeypersonnel asdefined inArticle 53(2),
including natural persons whoarerepresentatives ofaCommunity orCzech Republic company or
national andareseeking temporary entryforthepurpose ofnegotiating forthesaleofservices orentering
intoagreements tosellservices forthatservice inmaking direct sales tothegeneral public orin
supplying services themselves.
3. TheAssociation Council shalltakethemeasures necessary toimplement progressively the
provisions ofparagraph 1.
Article 57
Withregard tosupply oftransport services between theCommunity andtheCzech Republic,
thefollowing replaces theprovisions ofArticle 56:
1. With regard tointernational maritime transport theParties undertake toapply effectively the
principle ofunrestricted access tothemarket andtraffic onacommercial basis.
(a) Theabove provision doesnotprejudice therights andobligations under theUnited
Nations Code ofConduct forLiner Conferences, asapplied byoneortheother
Contracting Party tothisAgreement. Non-conference liners willbefreetooperate
incompetition withaconference aslongastheyadhere totheprinciple offair
competition onacommercial basis.
(b) TheParties affirm theircommitment toafreely competitive environment asbeing an
essential feature ofthedryandliquid bulktrade.WT/REG18/6
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2. Inapplying theprinciples ofparagraph 1,theParties shall:
(a) notintroduce cargo sharing clauses infuture bilateral agreements withthirdcountries,
other thaninthose exceptional circumstances where linershipping companies from
oneorother Party tothisAgreement would nototherwise haveaneffective opportunity
toplyfortrade toandfrom thethirdcountry concerned;
(b) prohibit cargo sharing arrangements infuture bilateral agreements concerning dryand
liquid bulktrade;
(c) abolish,uponentryintoforceofthisAgreement,allunilateralmeasures,administrative,
technical andother obstacles which could haverestrictive ordiscriminatory effects
onthefreesupply ofservices ininternational maritime transport.
3. Withaviewtoassuring acoordinated development andprogressive liberalization oftransport
between theParties adapted totheirreciprocal commercial needs, theconditions ofmutual market access
inairtransport andininland transport shallbedealtwithbyspecial transport agreements tobenegotiated
between theParties aftertheentry intoforce ofthisAgreement.
4. Prior totheconclusion oftheagreements referred toinparagraph 3,theParties shallnottake
anymeasuresoractionswhicharemostrestrictiveordiscriminatoryascomparedtothesituationexisting
onthedaypreceding thedayofentry intoforce ofthisAgreement.
5. During thetransitional period, theCzech Republic shallprogressively adapt itslegislation
including administrative, technical andother rulestothatoftheCommunity legislation existing atany
timeinthefieldofairandinland transport insofarasitserves liberalization purposes andmutual
access tomarkets oftheParties andfacilitates themovement ofpassengers andofgoods.
6. Instepwiththecommon progress intheachievement oftheobjectives ofthisChapter, the
Association Council shallexamine ways ofcreating theconditions necessary forimproving freedom
toprovide airandinland transport services.
Article 58
Theprovisions ofArticle 54shallapply tothematters covered bythisChapter.
CHAPTER IV
General provisions
Article 59
1. Forthepurpose ofTitleIVofthisAgreement, nothing intheAgreement shallprevent the
Parties from applying theirlawsandregulations regarding entry andstay, work, labour conditions
andestablishment ofnatural persons, andsupply ofservices, provided that,insodoing, theydonot
apply them inamanner astonullify orimpair thebenefits accruing toanyParty under theterms of
aspecific provision ofthisAgreement. Thisprovision doesnotprejudice theapplication ofArticle 54.WT/REG18/6
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2. Theprovisions ofChapters II,IIIandIVofTitleIVshall beadjusted bydecision ofthe
Association Council inthelightoftheresult ofthenegotiations onservices taking partintheUruguay
Round andinparticular toensure thatunder anyprovision ofthisAgreement aParty grants tothe
other Party atreatment nolessfavourable thanthataccorded under theprovisions ofafuture General
Agreement onTrade andServices (GATS).
3. Theexclusion ofCommunity companies andnationals established intheCzech Republic in
accordance withtheprovisions ofChapter IIofTitleIVfrompublic aidgranted bytheCzech Republic
intheareas ofpublic education services, health related andsocial services andcultural services shall,
fortheduration ofthetransitional period referred toinArticle 7,bedeemed compatible withthe
provisions ofTitleIVandwiththecompetition rules referred toinTitleV.
TITLE V
PAYMENTS, CAPITAL, COMPETITION AND OTHER
ECONOMIC PROVISIONS, APPROXIMATION OFLAWS
CHAPTER I
Current payments andmovement ofcapital
Article 60
TheContracting Parties undertake toauthorize, infreely convertible currency, anypayments
onthecurrent account ofbalance ofpayments totheextent thatthetransaction underlying thepayments
concern movements ofgoods, services orpersons between theParties which havebeenliberalized
pursuant tothisAgreement.
Article 61
1. Withregard totransactions onthecapital account ofbalance ofpayments, fromtheentry into
force ofthisAgreement, theMember States andtheCzech Republic respectively shallensure thefree
movement ofcapital relating todirect investments made incompanies formed inaccordance withthe
lawsofthehostcountry andinvestments made inaccordance withtheprovisions ofChapter IIof
TitleIV,andtheliquidation orrepatriation oftheseinvestments andofanyprofit stemming therefrom.
Notwithstanding theabove provision, suchfreemovement, liquidation andrepatriation shallbeensured
bytheendofthefifthyearfollowing theentry intoforce ofthisAgreement forallinvestments linked
toestablishment ofnationals establishing intheCzech Republic asself-employed persons pursuant
toChapter IIofTitleIV.
2. Without prejudice toparagraph 1,theMember States, asfrom theentry intoforce ofthis
Agreement, andtheCzech Republic asfrom theendofthefifthyearfollowing theentry intoforce
ofthisAgreement, shallnotintroduce anynewforeign exchange restrictions onthemovement ofcapital
andcurrent payments connected therewith between residents oftheCommunity andtheCzech Republic
andshallnotmake existing arrangements more restrictive.
3. TheParties shallconsult eachother withaviewtofacilitating themovement ofcapital between
theCommunity andtheCzech Republic inorder topromote theobjectives ofthisAgreement.WT/REG18/6
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Article 62
1. During thefiveyears following thedateofentry intoforce ofthisAgreement, theContracting
Parties shalltakemeasures permitting thecreation ofthenecessary conditions forthefurther gradual
application ofCommunity rules onthefreemovement ofcapital.
2. Bytheendofthefifthyearfromtheentry intoforceofthisAgreement, theAssociation Council
shallexamine ways ofenabling Community rules onthemovement ofcapital tobeapplied infull.
Article 63
Withreference totheprovisions ofthisChapter, andnotwithstanding theprovisions ofArticle
65,untilafullconvertibility oftheCzech Republic currency within themeaning ofArticle VIIIof
theInternational Monetary Fund isintroduced, theCzech Republic mayinexceptional circumstances
apply exchange restrictions connected withthegranting ortaking upofshort- andmedium-term credits
totheextent thatsuchrestrictions areimposed ontheCzech Republic forthegranting ofsuchcredits
andarepermitted according totheCzech Republic 'sstatus under theIMF.
TheCzech Republic shallapply theserestrictions inanon-discriminatory manner. They shall
beapplied insuchamanner astocause theleastpossible disruption tothisAgreement. TheCzech
Republic shallinform theAssociation Council promptly oftheintroduction ofsuchmeasures andof
anychanges therein.
CHAPTER II
Competition andother economic provisions
Article 64
1. Thefollowing areincompatible withtheproper functioning oftheAgreement, insofarasthey
mayaffect trade between theCommunity andtheCzech Republic:
(i) allagreements between undertakings, decisions byassociations ofundertakings andconcerted
practices between undertakings which haveastheirobject oreffect theprevention, restriction
ordistortion ofcompetition;
(ii) abuse byoneormore undertakings ofadominant position intheterritories oftheCommunity
oroftheCzech Republic asawhole orinasubstantial partthereof;
(iii) anypublicaidwhichdistortsorthreatenstodistortcompetitionbyfavouringcertainundertakings
ortheproduction ofcertain goods.
2. Anypractices contrary tothisArticle shallbeassessed onthebasis ofcriteria arising from
theapplication oftherulesofArticles 85,86and92oftheTreat establishing theEuropean Economic
Community.WT/REG18/6
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3. TheAssociation Council shall, within three years oftheentry intoforce ofthisAgreement,
adopt thenecessary rulesfortheimplementation ofparagraphs 1and2.Until theimplementing rules
areadopted, practices incompatible withparagraph 1shallbedealt withbytheContracting Parties
ontheirrespective territories according totheirrespective legislations. Thisiswithout prejudice to
paragraph 6.
4.(a) Forthepurposesofapplyingtheprovisionsofparagraph1(iii),thePartiesrecognizethatduring
thefirstfiveyears aftertheentry intoforce ofthisAgreement, anypublic aidgranted bythe
Czech Republic shallbeassessed taking intoaccount thefactthattheCzech Republic shall
beregarded asanareaidentical tothose areasoftheCommunity described inArticle 92(3)(a)
oftheTreaty establishing theEuropean Economic Community. TheAssociation Council shall,
taking intoaccount theeconomic situation oftheCzech Republic, decide whether thatperiod
should beextended byfurther periods offiveyears.
4.(b) EachParty shallensure transparency intheareaofpublic aid,interaliabyreporting annually
totheother Party onthetotalamount andthedistribution oftheaidgiven andbyproviding,
upon request, information onaidschemes. Upon request byoneParty, theother Party shall
provide information onparticular individual cases ofpublic aid.
5. With regard toproducts referred toinChapters IIandIIIofTitleIII:
- theprovision ofparagraph 1(iii)doesnotapply,
- anypractices contrary toparagraph 1(i)should beassessed according tothecriteria
established bytheCommunity onthebasis ofArticles 42and43oftheTreaty
establishing theEuropean Economic Community andinparticular ofthose established
inCouncil Regulation No.26/62.
6. IftheCommunity ortheCzech Republic considers thataparticular practice isincompatible
withtheterms ofparagraph 1,and:
- isnotadequately dealtwithunder theimplementing rulesreferred toinparagraph 3,
or
- intheabsence ofsuchrules, andifsuchpractice causes orthreatens tocause serious
prejudice totheinterest oftheother Party ormaterial injury toitsdomestic industry,
including itsservices industry,
itmaytakeappropriate measures afterconsultation within theAssociation Council orafter
30working daysfollowing referral forsuchconsultation.
Inthecaseofpractices incompatible withparagraph 1(iii),suchappropriate measures may,
where theGeneral Agreement onTariffs andTrade applies therefrom, onlybeadopted inaccordance
withtheprocedures andunder theconditions laiddown bytheGeneral Agreement onTariffs andTrade
andanyotherrelevant instrument negotiated under itsauspices which areapplicable between theParties.
7. Notwithstanding anyprovisions tothecontrary adopted inaccordance withparagraph 3,the
Parties shallexchange information taking intoaccount thelimitations imposed bytherequirements
ofprofessional andbusiness secrecy.WT/REG18/6
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8. ThisArticle shallnotapply totheproducts covered bytheTreat establishing theEuropean
CoalandSteel Community which arethesubject ofProtocol 2.
Article 65
1. WhereoneormoreMemberStatesoftheCommunityortheCzechRepublicisinseriousbalance
ofpayments difficulties, orunder imminent threat thereof, theCommunity ortheCzech Republic,
asthecasemaybe,may, inaccordance withtheconditions established under theGeneral Agreement
onTariffs andTrade, adopt restrictive measures, including measures relating toimports, which shall
beoflimited duration andmaynotgobeyond whatisnecessary toremedy thebalance ofpayments
situation. Themeasures shallbeprogressively relaxed asbalance ofpayments conditions improve
andtheyshallbeeliminated when conditions nolonger justify theirmaintenance. TheCommunity
ortheCzech Republic, asthecasemaybe,shallinform theother Party forthwith oftheirintroduction
and,whenever practicable, ofatimeschedule fortheirremoval.
2. TheParties shallnevertheless endeavour toavoid theimposition ofrestrictive measures for
balance ofpayments purposes.
3. Anyrestrictive measures shallnotapply totransfers related toinvestment andinparticular
totherepatriation ofamounts invested orreinvested andofanykindofrevenues stemming therefrom.
Article 66
Withregard topublic undertakings, andundertakings towhich special orexclusive rights have
beengranted, theAssociation Council shallensure thatasfrom thethirdyearfollowing thedateof
entry intoforce ofthisAgreement, theprinciples oftheTreaty establishing theEuropean Economic
Community, inparticular Article 90,andtheprinciples oftheconcluding document oftheApril 1990
Bonn meeting oftheConference onSecurity andCooperation inEurope, inparticular entrepreneurs '
freedom ofdecision, areupheld.
Article 67
1, TheCzech Republic shallcontinue toimprove theprotection ofintellectual, industrial and
commercial property rights inorder toprovide, bytheendofthefifthyearaftertheentry intoforce
ofthisAgreement, alevelofprotection similar tothatexisting intheCommunity, including comparable
means ofenforcing suchrights.
2. Within thesame time, theCzech Republic shallapply toaccede totheMunich Convention
onthegranting ofEuropean patents of5October 1973. TheCzech Republic shallalsoaccede tothe
other multilateral conventions onintellectual, industrial andcommercial property rights referred to
inAnnex XVII, paragraph 1towhich Member States areParties, orwhich aredefacto applied by
Member States.
Article 68
1. TheContracting Parties consider theopening upoftheaward ofpublic contracts onthebasis
ofnon-discrimination andreciprocity, inparticular intheGATT context, tobeadesirable objective.
2. TheCzech Republic companies asdefined inArticle 49,shallbegranted access tocontract
award procedures intheCommunity pursuant toCommunity procurement rulesunder atreatment no
lessfavourable thanthataccorded toCommunity companies asoftheentryintoforceofthisAgreement.WT/REG18/6
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Community companies asdefined inArticle 49shall begranted access tocontract award
procedures intheCzech Republic under atreatment nolessfavourable thanthataccorded toCzech
Republic companies atthelatest attheendofthetransitional period referred toinArticle 7.
Community companies established intheCzech Republic under theprovisions ofChapter II
ofTitleIVshallhaveupon entry intoforce ofthisAgreement access tocontract award procedures
under atreatment nolessfavourable thanthataccorded toCzech Republic companies.
TheAssociation Council shallperiodically examine thepossibility fortheCzech Republic to
introduce access toaward procedures intheCzech Republic forallCommunity companies prior to
theendofthetransitional period.
3. Asregards establishment, operations, supply ofservices between theCommunity andtheCzech
Republic, aswellasemployment andmovement oflabour linked tothefulfilment ofpublic contracts,
theprovisions ofArticles 38to59areapplicable.
CHAPTER III
Approximation oflaws
Article 69
TheContractingPartiesrecognizethatthemajorpreconditionfortheCzechRepublic'seconomic
integration intotheCommunity istheapproximation oftheCzech Republic 'sexisting andfuture
legislation tothatoftheCommunity. TheCzech Republic shallendeavour toensure thatitslegislation
willbegradually made compatible withthatoftheCommunity.
Article 70
Theapproximation oflawsshallextend tothefollowing areas inparticular: customs law,
company law,banking law,company accounts andtaxes, intellectual property, protection ofworkers
attheworkplace, financial services, rules oncompetition, protection ofhealth andlifeofhumans,
animals andplants, consumer protection, indirect taxation, technical rulesandstandards, nuclear law
andregulation, transport andtheenvironment.
Article 71
TheCommunityshallprovidetheCzechRepublicwithtechnicalassistancefortheimplementation
ofthese measures, which mayinclude interalia:
- theexchange ofexperts,
- theprovision ofearly information especially onrelevant legislation,
- organization ofseminars,
- training activities,
- aidforthetranslation ofCommunity legislation intherelevant sectors.WT/REG18/6
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TITLE VI
ECONOMIC COOPERATION
Article 72
1. TheCommunity andtheCzech Republic shall establish economic cooperation aimed at
contributing totheCzech Republic 'sdevelopment andgrowth potential. Such cooperation shall
strengthen existing economic links onthewidest possible foundation, tothebenefit ofbothParties.
2. Policies andother measures willbedesigned tobring about economic andsocial development
oftheCzech Republic andwillbeguided bytheprinciple ofsustainable development. These policies
should ensure thatenvironmental considerations arealsofullyincorporated from theoutset andthat
theyarelinked totherequirements ofharmonious social development.
3. Tothisendthecooperationshouldfocusinparticularonpoliciesandmeasuresrelatedtoindustry
includingtheminingsector,investment,agriculture,energy,transport,regionaldevelopmentandtourism.
4. Special attention must bedevoted tomeasures capable offostering cooperation between the
countries ofcentral andeastern Europe withaviewtoaharmonious development oftheregion.
Article 73
Industrial cooperation
1. Cooperation shallaimatpromoting themodernization andrestructuring ofCzech Republic
industry inbothpublic andprivate sectors aswellasindustrial cooperation between economic operators
ofbothsides, withtheparticular objective ofstrengthening theprivate sector.
2. Particular attention shallbepaidto:
- therestructuring ofindividual sectors; inthiscontext, theAssociation Council will
examine inparticular theproblems affecting thesectors ofcoalandsteelandthe
conversion ofthedefence industry,
- theestablishment ofnewundertakings inareas offering potential forgrowth.
3. Industrial cooperation initiatives takeintoaccount priorities determined bytheCzech Republic.
Theinitiatives should seekinparticular toestablish asuitable framework forundertakings, toimprove
managementknow-howandtopromotetransparencyasregardsmarketsandconditionsforundertakings,
andwillinclude technical assistance where appropriate.
Article 74
Investment promotion andprotection
1. Cooperation shallaimtoestablish afavourable climate forprivate investment, bothdomestic
andforeign, which isessential toeconomic andindustrial reconstruction intheCzech Republic.WT/REG18/6
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2. Theparticular aimsofcooperation shallbe:
- toimprove theinstitutional framework forinvestments intheCzech Republic,
- theextension bytheMember States andtheCzech Republic ofagreements forthe
promotion andprotection ofinvestment,
- toimplement suitable arrangements forthetransfer ofcapital,
- toproceed withderegulation andtoimprove economic infrastructure,
- toexchange information oninvestment opportunities intheform oftrade fairs,
exhibitions, trade weeks andother events.
Article 75
Industrial standards andconformity assessment
1. TheParties shallcooperate withtheaimtoachieve theCzech Republic 'sfullconformity with
Community technical regulations andEuropean standardization andconformity assessment procedures.
2. Tothisend,thecooperation shallseek:
- topromote theuseofCommunity technical regulations andEuropean standards and
conformity assessment procedures,
- where appropriate, toachieve theconclusion ofagreements onmutual recognition in
these fields,
- toencourage theCzech Republic 'sparticipation intheworkofspecialized organizations
(CEN, Cenelec, ETSI, EOTC).
3. TheCommunity willprovide theCzech Republic withtechnical assistance where appropriate.
Article 76
Cooperation inscience andtechnology
1. TheParties shallpromote cooperation inresearch andtechnological development. They shall
devote special attention tothefollowing:
- theexchange ofinformation oneachother'sscience andtechnology policies,
- theorganization ofjointscientific meetings (seminars andworkshops),
- joint R&D activities aimed atencouraging scientific progress andthetransfer of
technology andknow-how,
- training activities andmobility programmes forresearchers andspecialists fromboth
sides,WT/REG18/6
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- thedevelopment ofanenvironment conducive toresearch andtheapplication ofnew
technologies andadequate protection oftheintellectual property oftheresults of
research,
- participation oftheCzech Republic intheCommunity programmes inaccordance with
paragraph 3.
Technical assistance shallbeprovided where appropriate.
2. TheAssociation Council shalldetermine theappropriate procedures fordeveloping cooperation.
3. Cooperation under theCommunity 'sframework programme inthefield ofresearch and
technological development shallbeimplemented according tospecific arrangements tobenegotiated
andconcluded inaccordance withthelegalprocedures ofeachParty.
Article 77
Education andtraining
1. TheParties shallcooperate withtheaimofraising thelevelofgeneral education andprofessional
qualifications intheCzech Republic, taking intoconsideration thepriorities oftheCzech Republic.
Institutional frameworks andplans ofcooperation willbeestablished building ontheEuropean Training
Foundation andtheTempus programme. Participation oftheCzech Republic inother Community
programmes could alsobeconsidered inthiscontext.
2. Thecooperation shallfocus inparticular onthefollowing areas andaccording tomodalities
tobedetermined jointly bytheParties:
- reform oftheeducation andtraining system intheCzech Republic,
- initial training, in-service training andretraining, including thetraining ofpublic and
private sector executives andsenior civilservants, particularly inpriority areas tobe
determined,
- cooperation between universities, cooperation between universities andfirms, and
mobility forteachers, students, administrators andyoung people,
- promoting teaching inthefieldofEuropean studies within theappropriate institutions,
- mutual recognition ofperiods ofstudies anddiplomas.
3. Inthefieldoftranslation, cooperation willfocus ontraining oftranslators andinterpreters
andpromotion ofCommunity linguistic norms andterminology.
Article 78
Agriculture andtheagro-industrial sector
1. Cooperation inthisareashall have asitsaimthemodernization ofagriculture andthe
agro-industrial sector. Itshallendeavour inparticular to:WT/REG18/6
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- develop private farms anddistribution channels, methods ofstorage, marketing, etc.,
- modernize therural infrastructure (transport, water supply, telecommunications),
- land-use planning, including construction andurban planning,
- improve productivity andquality byusing appropriate methods andproducts; provide
training andmonitoring intheuseofanti-pollution methods connected withinputs,
- develop andmodernize processing firms andtheirmarketing techniques,
- promote complementarity inagriculture,
- promoteindustrialcooperationinagricultureandtheexchangeofknow-how,particularly
between theprivate sectors intheCommunity andtheCzech Republic,
- develop cooperation onanimal health andplanthealth withtheaimofbringing about
gradual harmonization withCommunity standards through assistance fortraining and
theorganization ofchecks.
2. Tothese ends, technical assistance shallbeprovided bytheCommunity asappropriate.
Article 79
Energy
1. Within theprinciples ofthemarket economy, theParties shall cooperate todevelop the
progressive integration oftheenergy markets oftheCzech Republic andtheCommunity. They shall
payparticular attention totheCommunity 'sproposals foraEuropean energy charter andtheparallel
integration ofsuchmarkets withtheother countries ofcentral andeastern Europe.
2. Thecooperationshallincludeamongotherstechnicalassistancewhenappropriateinthefollowing
areas:
- formulation andplanning ofenergy policy bothatnational andregional level,
- opening uptheenergy market toagreater degree, including facilitating transit ofgas
andelectricity,
- study ofthemodernization ofenergy infrastructures,
- improvement ofdistribution aswellasimprovements anddiversification ofsupply,
- management andtraining fortheenergy sector,
- thedevelopment ofenergy resources,
- thepromotion ofenergy saving andenergy efficiency,
- theenvironmental impact ofenergy production andconsumption,WT/REG18/6
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- thenuclear energy sector,
- theelectricity andgassectors, including theconsideration ofthepossibility ofthe
interconnection ofthesupply networks,
- theformulation offramework conditions forcooperation between undertakings inthis
sector, which could include theencouragement ofjointventures,
- thetransfer oftechnology andknow-how, which mayinclude ifappropriate the
promotion andcommercialization ofefficient energy technologies.
Article 80
Nuclear safety
1. Theaimofcooperation istoprovide forasafer useofnuclear energy.
2. Cooperation shallmainly cover thefollowing topics:
- nuclear safety, nuclear emergency preparedness andmanagement,
- radiation protection, including environmental radiation monitoring,
- fuelcycle problems, safeguarding ofnuclear materials,
- radioactive waste management,
- decommissioning anddismantling ofnuclear installations,
- decontamination.
3. Cooperation willinclude exchange ofinformation andexperience andR&D activities in
accordance withArticle 76.
Article 81
1. TheParties shalldevelop andstrengthen theircooperation onenvironment andhuman health,
which theyhavejudged tobeapriority.
2. Cooperation shallconcern:
- effective monitoring ofpollution levels; systems ofinformation onthestateofthe
environment,
- combating regional andtransboundary airpollution,
- sustainable, efficient andenvironmentally effective useandproduction ofenergy; safety
ofindustrial plants; development ofrelevant technologies andproduction processes,
- classification andsafehandling ofchemicals,WT/REG18/6
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- effective prevention andreduction ofwater pollution, especially ofsources ofdrinking
water andtransboundary watercourses,
- waste reduction, recycling andsafedisposal (including radioactive wastes),
- theenvironmental impact ofagriculture; soilerosion; theprotection offorests and
floraandfauna; restoring ecological stability ofthecountryside,
- land-use planning, including construction andurban planning,
- useofeconomic andfiscal instruments,
- global climate change anditsprevention,
- environmental education andawareness,
- international conventions intheareaofenvironment.
3. Cooperation shalltakeplace through:
- exchange ofinformation andexperts, including information andexperts dealing with
thetransferofcleantechnologies;developmentofinformationsystemsonenvironment,
- training programmes,
- jointresearch activities,
- approximation oflaws(Community standards),
- cooperation atregional level (including cooperation within theframework ofthe
European Environment Agency, when established bytheCommunity) andat
international level,
- development ofstrategies, particularly withregard toglobal andclimatic issues.
Article 82
Transport
1. TheParties shalldevelop andstepupcooperation inorder toenable theCzech Republic to:
- restructure andmodernize transport,
- improve circulation ofpassengers andgoods andtheaccess tothetransport market
byremoving administrative, technical andother obstacles,
- facilitate Community transit intheCzech Republic byroad, rail,riverandcombined
transport,
- achieve operating standards comparable tothose intheCommunity.WT/REG18/6
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2. Thecooperation shallinclude thefollowing inparticular:
- economic, legalandtechnical training programmes,
- theprovision oftechnical assistance andadvice, andtheexchange ofinformation,
- theprovision ofmeans todevelop infrastructure intheCzech Republic.
3. Thecooperation shallinclude thefollowing priority areas:
- theconstruction andmodernization ofroadtransport, including thegradual easing of
transit conditions,
- themanagement ofrailways andairports, including cooperation between theappropriate
national authorities,
- themodernization, onmajor routes ofcommon interest andtrans-European links, of
road, inland waterway, railway, portandairport infrastructure,
- land-use planning including construction andurban planning,
- thepromotion ofroad-rail transport containerization, transhipment andtheconstruction
ofterminals,
- thereplacementoftransporttechnicalequipmentinordertomeetCommunitystandards,
- thepromotion ofjointtechnological andresearch programmes inaccordance with
Article 76,
- thedevelopment oflegislative measures andtheimplementation ofpolicies inallareas
oftransportation, compatible withthetransport policies applicable intheCommunity.
Article 83
Telecommunications
1. TheParties shallexpand andstrengthen cooperation inthisarea,andshalltothisendinitiate
inparticular thefollowing actions:
- exchange information ontelecommunications policies,
- exchange technical andother information andorganize seminars, workshops and
conferences forexperts ofbothsides,
- conduct training andadvisory operations,
- carry outtransfers oftechnology,
- havetheappropriate bodies from bothsides carry outjointprojects,
- promote European standards, systems ofcertification andregulatory approaches,WT/REG18/6
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- promotenewcommunications,servicesandfacilities,particularlythosewithcommercial
applications.
2. These activities shallfocus onthefollowing priority areas:
- themodernization oftheCzech Republic 'stelecommunications network andits
integration intoEuropean andworld networks,
- cooperation within thestructures ofEuropean standardization,
- theintegration oftrans-European systems; thelegal andregulatory aspects of
telecommunications,
- themanagement oftelecommunications inthenew economic environment:
organizational structures, strategy andplanning, purchasing principles,
- land-use planning, construction andurban planning.
Article 84
Banking, insurance, other financial services andaudit cooperation
1. TheParties shallcooperate withtheaimofestablishing anddeveloping asuitable framework
fortheencouragement ofbanking, insurance andfinancial services sector intheCzech Republic.
(a) Thecooperation shallfocus on:
- theadoption ofacommon accounting system compatible withEuropean standards,
- thestrengthening andrestructuring ofthebanking andfinancial sectors,
- theimprovement ofsupervision andregulation ofbanking andfinancial services,
- thepreparation oftranslations ofCommunity andCzech Republic legislation,
- thepreparation ofglossaries ofterminology,
- theexchange ofinformation inparticular inrespect ofproposed legislation.
(b) Tothisend,thecooperation shallinclude theprovision oftechnical assistance andtraining.
2. TheParties shallcooperate withtheaimofdeveloping efficient audit systems intheCzech
Republic following standard Community methods andproceedings.
(a) Cooperation shallfocus on:
- theestablishment intheCzech Republic ofanindependent Supreme Audi Office,
- theestablishment ofinternal audit units ingovernment agencies,
- theexchange ofrelevant audit information,WT/REG18/6
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- theuniformization ofaudit documentation,
- training andadvisory operations.
(b) Tothisend,technical assistance shallbeprovided bytheCommunity asappropriate.
Article 85
Monetary policy
AttherequestoftheCzechRepublicauthorities,theCommunityshallprovidetechnicalassistance
designed tosupport theefforts oftheCzech Republic towards theintroduction offullconvertibility
ofthecrown andthegradual approximation ofitspolicies tothose oftheEuropean Monetary System.
Thiswillinclude informal exchange ofinformation concerning theprinciples andthefunctioning of
theEuropean Monetary System.
Article 86
Money laundering
1. TheParties agree onthenecessity ofmaking every effort andcooperating inorder toprevent
theuseoftheirfinancial systems forlaundering ofproceeds from criminal activities ingeneral and
drugoffences inparticular.
2. Cooperation inthisareashallinclude administrative andtechnical assistance withthepurpose
ofestablishingsuitablestandardsagainstmoneylaunderingequivalenttothoseadoptedbythecommunity
andinternational forainthisfield, inparticular theFinancial Action Task Force (FATF).
Article 87
Regional development
1. TheParties shallstrengthen cooperation between themonregional development andland-use.
2. Tothisend,anyofthefollowing measures maybeundertaken:
- theexchange ofinformation bynational, regional orlocalauthorities onregional and
land-use planning policy,
- theprovision ofassistance totheCzech Republic fortheformulation onsuchpolicy,
- jointaction byregional andlocalauthorities intheareaofeconomic development,
- thestudy ofcoordinated approaches forthedevelopment ofborder areas between the
CommunityandtheCzechRepublicandotherCzechRepublicareaswithsevereregional
disparities,
- exchange visits toexplore theopportunities forcooperation andassistance,
- theexchange ofcivilservants orexperts,WT/REG18/6
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- theprovision oftechnical assistance,
- theestablishment ofprogrammes fortheexchange ofinformation andexperience, by
methods including seminars.
Article 88
Social cooperation
1. Withregard tohealth andsafety, theParties shalldevelop cooperation between themwiththe
aimofimproving thelevelofprotection ofthehealth andsafety workers, taking asareference the
levelofprotection existing intheCommunity. Cooperation shallcomprise thefollowing inparticular:
- theprovision oftechnical assistance,
- theexchange ofexperts,
- cooperation between firms,
- theexchange ofinformation andadministrative andother relevant assistance tofirms,
training operations.
2. Withregard toemployment, cooperation between theParties shallfocus notably onupgrading
job-finding andcareers-advice services, providing back-up measures andpromoting localdevelopment
toassist industrial restructuring.
Itshallalsoinclude measures suchastheperformance ofstudies, provision oftheservices
ofexperts andinformation andtraining.
3. With regard tosocial security, cooperation between theParties shallseektoadapt thesocial
security systems totheneweconomic andsocial situation, primarily byproviding theservices ofexperts
andinformation andtraining.
Article 89
Tourism
TheParties shallincrease anddevelop cooperation between them, which shallinclude:
- facilitating thetourist trade,
- increasing theflowofinformation through international networks, databanks, etc.,
- transferring know-how through training, exchanges, seminars,
- executing regional tourist projects suchascross-frontier projects, town-twinning, etc.,
- exchanging views andproviding forappropriate exchanges ofinformation onmajor
issues ofmutual interest affecting thetourism sector,WT/REG18/6
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- encouraging thedevelopment ofinfrastructure conducive toinvestment inthetourism
sector.
Article 90
Small andmedium-sized enterprises
1. ThePartiesshallaimtodevelopandstrengthenprivatesectorsmallandmedium-sizedenterprises
andcooperation between SMEs intheCommunity andtheCzech Republic.
2. They shallencourage theexchange ofinformation andknow-how inthefollowing areas:
- bringingaboutthelegal,administrative,technical,taxandfinancialconditionsnecessary
fortheestablishment andexpansion ofSMEs andforcross-border cooperation,
- theprovision ofthespecialized services required bySMEs (management training,
accounting,marketing,qualitycontrol,etc.)andthestrengtheningofagenciesproviding
suchservices,
- theestablishment ofappropriate links withCommunity operators withtheaimof
improving theflowofinformation toSMEs andpromoting cross-border cooperation
(e.g.theBusiness Cooperation Network (BC-NET), Euro-Info Centres, conferences,
etc.).
3. Thecooperation willinclude theprovision oftechnical assistance inparticular forthe
establishment ofappropriate institutional support forSMEs, atnational andregional level, inrespect
offinancial, training, advisory, technological andcommercial services.
Article 91
Information andcommunication
Withregard toinformation andcommunication, theCommunity andtheCzech Republic shall
takeappropriate steps tostimulate effective mutual exchange ofinformation. Priority shallbegiven
toprogrammes aimed atproviding thegeneral public withbasic information about theCommunity
andspecific circles intheCzech Republic withmorespecialized information, including, where possible,
access toCommunity databases.
Article 92
Consumer protection
1. TheParties shallcooperate withtheaimofachieving fullcompatibility oftheCzech Republic
withtheCommunity consumer protection system.
2. Tothisend,thecooperation shallcomprise, within existing possibilities:
- exchange ofinformation andexperts,
- access toCommunity databases,
- training operations andtechnical assistance.WT/REG18/6
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Article 93
Customs
1. Theaimofcooperation shallbetoguarantee compliance withalltheprovisions scheduled for
adoption inconnection withtrade andtoachieve theapproximation oftheCzech Republic 'scustoms
system tothatoftheCommunity, thushelping toeasethesteps towards liberalization planned under
thisAgreement.
2. Cooperation shallinclude thefollowing inparticular:
- theexchange ofinformation,
- thedevelopment ofcross-frontier infrastructure between theParties,
- theinterconnection between thetransit systems oftheCommunity andtheCzech
Republic,
- thesimplification ofinspections andformalities inrespect ofthecarriage ofgoods,
- theorganization ofseminars andplacements.
Technical assistance shallbeprovided where appropriate.
3. Without prejudice tofurther cooperation provided forinthisAgreement, andinparticular
Article96,themutualassistancebetweenadministrativeauthoritiesincustomsmattersoftheContracting
Parties shalltakeplace inaccordance withtheprovisions ofProtocol 6.
Article 94
Statistical cooperation
1. Cooperation inthisareashallhaveasitsaimthedevelopment ofanefficient statistical system
toprovide, inarapid andtimely fashion, thereliable statistics needed toplanandmonitor theprocess
ofreform andtocontribute tothedevelopment ofprivate enterprise intheCzech Republic.
2. TheParties shallcooperate inparticular:
- tostrengthen theservice ofstatistics oftheCzech Republic,
- tobring about harmonization withinternational (andparticularly Community) methods,
standards andclassifications,
- toprovide thedataneeded tomaintain andmonitor economic reform,
- toprovide private-sector economic operators withtheappropriate macro-economic
andmicro-economic data,
- toguarantee theconfidentiality ofdata,
- toexchange statistical information.WT/REG18/6
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3. Technical assistance shallbeprovided bytheCommunity asappropriate.
Article 95
Economics
1. TheCommunity andtheCzech Republic willfacilitate theprocess ofeconomic reforms and
integration bycooperating toimprove understanding ofthefundamentals oftheirrespective economies
andofimplementing economic policy inmarket economies.
2. Tothese endstheCommunity andtheCzech Republic will:
- exchange information onmacro-economic performance andprospects andonstrategies
fordevelopment where appropriate,
- analyse jointly economic issues ofmutual interest, including theframing ofeconomic
policy andtheinstruments forimplementing it,
- throughtheprogrammeofActionforCooperationinEconomicsinparticular,encourage
extensivecooperationamongeconomistsandmanagersintheCommunityandtheCzech
Republic, inorder tospeed thetransfer ofknow-how forthedrafting ofeconomic
policies, andprovide forwidedissemination oftheresults ofpolicy-relevant research.
Article 96
Drugs
1. Thecooperation isinparticular aimed atincreasing theefficiency ofpolicies andmeasures
tocounter thesupply andillicit traffic ofnarcotics andpsychotropic substances andthereduction of
abuse ofthese products.
2. TheContracting Parties shallagree onthenecessary methods ofcooperation toattain these
objectives, including themodalities oftheimplementation ofcommon actions. Their actions willbe
based onconsultation onaclose coordination oftheobjectives andthepolicy measures inthefields
targeted inparagraph 1.
3. Thecooperation between theContracting Parties willcomprise technical andadministrative
assistance which could dealinparticular withthefollowing areas: thecreation ofinstitutions and
information centres andofsocial andhealth centres; thetraining ofpersonnel andresearch; the
prevention ofdiversion ofprecursors usedforthepurpose ofillicit manufacture ofnarcotic drugs or
psychotropic substances.
TheParties mayagree toinclude other areas.WT/REG18/6
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TITLE VII
CULTURAL COOPERATION
Article 97
1. ThePartiesundertaketopromoteculturalcooperation.Whereappropriate,Community'scultural
cooperationprogrammes,orthoseofoneormoreMemberStatesmaybeextendedtotheCzechRepublic
andfurther activities ofinterest tobothsides developed.
Thiscooperation maynotably cover:
- literary translation,
- conservationandrestorationofmonumentsandsites(architecturalandculturalheritage),
- training forthose dealing withcultural affairs,
- theorganization ofEuropean-oriented cultural events.
2. TheParties shall cooperate inthepromotion oftheaudiovisual industry inEurope. The
audiovisual sector intheCzech Republic could inparticular participate inactivities setoutbythe
Community intheMEDIA programme for1991to1995inaccordance withtheprocedures laiddown
bythebodies responsible formanaging eachactivity andinaccordance withtheprovisions ofthe
Decision oftheCouncil oftheeuropean Communities of21December 1990, which established the
programme.
TheParties shallcoordinate, andwhere appropriate, harmonize, theirpolicies regarding the
regulation ofcross-border broadcasts, technical standards andthepromotion ofEuropean audiovisual
technology.
TITLE VIII
FINANCIAL COOPERATION
Article 98
Inorder toachieve theobjectives ofthisAgreement andinaccordance withArticles 99,100,
102and103,without prejudice toArticle 101,theCzech Republic shallbenefit fromtemporary financial
assistance from theCommunity intheform ofgrants andloans, including loans from theEuropean
Investment Bank according totheprovisions ofArticle 18oftheStatute oftheBank.WT/REG18/6
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Article 99
Thisfinancial assistance shallbecovered by:
- theoperation Phare measures provided forinCouncil Regulation (EEC) No.3906/89,
asamended, foraslongastheyareapplicable; thereafter grants willbemade available
bytheCommunity, either within theframework oftheoperation Phare onamultiannual
basis, orwithin anewfinancial multiannual framework established bytheCommunity
following consultations with theCzech Republic andtaking intoaccount the
consideration setoutinArticles 102and103,
- theloan(s) provided bytheEuropean Investment Bank untiltheexpiry dateofthe
availability thereof; following consultations withtheCzech Republic theCommunity
shallfixthemaximum amount andtheperiod ofavailability ofloans fromtheEuropean
Investment Bank fortheCzech Republic forsubsequent years.
Article 100
Theobjectives andtheareas oftheCommunity 'sfinancial assistance shallbelaiddown in
anindicative programme tobeagreed between thetwoParties. TheParties shallinform theAssociation
Council.
Article 101
1. TheCommunity shall, incaseofspecial need, taking intoaccount theavailability ofallfinancial
resources, onrequest oftheCzech Republic andincoordination withinternational financial institutions,
inthecontext oftheG-24, examine thepossibility ofgranting temporary financial assistance:
- tosupport measures withtheaimtointroduce andmaintain theconvertibility ofthe
Czech Republic currency,
- tosupportmedium-termstabilizationandstructuraladjustmentefforts,includingbalance
ofpayments assistance.
2. Thisfinancial assistance issubject totheCzech Republic 'spresentation ofIMFsupport
programmes inthecontext ofG-24, asappropriate, forconvertibility and/or forrestructuring its
economy, totheCommunity 'sacceptance thereof, totheCzech Republic 'scontinued adherence to
these programmes and,asanultimate objective, torapid transition toreliance onfinance fromprivate
sources.
3. TheAssociation Council willbeinformed oftheconditions under which thisassistance will
beprovided andoftherespect oftheobligations undertaken bytheCzech Republic concerning such
assistance.
Article 102
TheCommunity financial assistance shallbeevaluated inthelightoftheneeds which arise
andoftheCzech Republic 'sdevelopment level, andtaking intoaccount established priorities andthe
absorption capacity oftheCzech Republic economy, theability torepay loans andaccomplishment
ofamarket economy system andrestructuring intheCzech Republic.WT/REG18/6
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Article 103
Inorder topermit optimum useoftheresources available theContracting Parties shallensure
thatCommunity contributions aremade inclose coordination withthose from other sources suchas
theMember States, other countries, including theG-24, andinternational financial institutions, such
astheInternational Monetary Fund, theInternational Bank forReconstruction andDevelopment and
theEuropean Bank forReconstruction andDevelopment.
TITLE IX
INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 104
AnAssociation Council ishereby established which shallsupervise theimplementation ofthis
Agreement. Itshallmeetatministerial levelonceayearandwhen circumstances require. Itshall
examine anymajor issues arising within theframework ofthisAgreement andanyother bilateral or
international issues ofmutual interest.
Article 105
1. TheAssociation Council shall consist ofthemembers oftheCouncil oftheEuropean
Communities andmembers oftheCommission oftheEuropean Communities, ontheonehand, and
ofmembers appointed bytheGovernment oftheCzech Republic, ontheother.
2. Members oftheAssociation Council mayarrange toberepresented, inaccordance withthe
conditions tobelaiddown initsrules ofprocedure.
3. TheAssociation Council shallestablish itsrules ofprocedure.
4. TheAssociation Council shallbepresided inturnbyamember oftheCouncil oftheEuropean
Communities andamember oftheGovernment oftheCzech Republic, inaccordance withtheprovisions
tobelaiddown initsrules ofprocedure.
5. Where appropriate, theEuropean Investment Bank willtakepart,asanobserver, inthework
oftheAssociation Council.
Article 106
TheAssociation Council shall, forthepurpose ofattaining theobjectives ofthisAgreement,
havethepower totakedecisions inthecases provided fortherein. Thedecisions taken shallbebinding
onthePartieswhichshalltakethemeasuresnecessarytoimplementthedecisionstaken.TheAssociation
Council mayalsomake appropriate recommendations.
Itshalldraw upitsdecisions andrecommendations byagreement between thetwoParties.
Article 107
1. Each ofthetwoParties mayrefer totheAssociation Council anydispute relating tothe
application orinterpretation oftheAgreement.WT/REG18/6
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2. TheAssociation Council maysettle thedispute bymeans ofadecision.
3. EachParty shallbebound totaken themeasures involved incarrying outthedecision referred
toinparagraph 2.
4. Intheevent ofitnotbeing possible tosettle thedispute inaccordance withparagraph 2,either
Party maynotify theother oftheappointment ofanarbitrator, theother Party must thenappoint a
second arbitrator within twomonths. Fortheapplication ofthisprocedure, theCommunity andthe
Member States shallbedeemed tobeoneParty tothedispute.
TheAssociation Council shallappoint athirdarbitrator.
Thearbitrator 'sdecisions shallbetaken bymajority vote.
EachPartytothedisputemusttakethestepsrequiredtoimplementthedecisionofthearbitrators.
Article 108
1. TheAssociation Council shallbeassisted intheperformance ofitsduties byanAssociation
Committee composed ofrepresentatives ofthemembers oftheCouncil oftheEuropean Communities
andofmembers oftheCommission oftheEuropean Communities ontheonehandandofrepresentatives
oftheGovernment oftheCzech Republic ontheother, normally atsenior civilservant level.
Initsrulesofprocedure theAssociation Council shalldetermine theduties oftheAssociation
Committee, which shallinclude thepreparation ofmeetings oftheAssociation Council andhowthe
Committee shallfunction.
2. TheAssociation Council maydelegate totheAssociation Committee anyofitspowers. In
thisevent theAssociation Committee shalltaken itsdecisions inaccordance withtheconditions laid
down inArticle 106.
Article 109
TheAssociation Council maydecide tosetupanyother special committee orbody thatcan
assist itincarrying outitsduties.
Initsrulesofprocedure, theAssociation Council shalldetermine thecomposition andduties
ofsuchcommittees orbodies andhowtheyshallfunction.
Article 110
AnAssociation Parliamentary Committee ishereby established. Itshallbeaforum formembers
oftheCzech Republic Parliament andtheEuropean Parliament tomeetandexchange views. Itshall
meetatintervals which itshallitself determine.
Article 111
1. TheAssociationParliamentaryCommitteeshallconsistofmembersoftheEuropeanParliament,
ontheonehand, andofmembers oftheCzech Republic Parliament, ontheother.
2. TheAssociation Parliamentary Committee shallestablish itsrules ofprocedure.WT/REG18/6
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3. TheAssociation Parliamentary Committee shall bepresided eachinturnbytheEuropean
Parliament andtheCzech Republic Parliament, inaccordance withtheprovisions tobelaiddown in
itsrules ofprocedure.
Article 112
TheAssociation Parliamentary Committee mayrequest relevant information regarding the
implementation ofthisAgreement fromtheAssociation Council, which shallthensupply theCommittee
withtherequested information.
TheAssociation Parliamentary Committee shallbeinformed ofthedecisions oftheAssociation
Council.
TheAssociation Parliamentary Committee maymake recommendations totheAssociation
Council.
Article 113
Within thescope ofthisAgreement, eachParty undertakes toensure thatnatural andlegal
persons oftheother Party haveaccess freeofdiscrimination inrelation toitsownnationals tothe
competent courts andadministrative organs oftheParties todefend theirindividual rights andtheir
property rights, including those concerning intellectual, industrial andcommercial property.
Article 114
Nothing inthisAgreement shallprevent aContracting Party from taking anymeasures:
(a) which itconsiders necessary toprevent thedisclosure ofinformation contrary toitsessential
security interests;
(b) which relate totheproduction of,ortradein,arms, munitions orwarmaterials ortoresearch,
development orproduction indispensable fordefence purposes, provided thatsuchmeasures
donotimpair theconditions ofcompetition inrespect ofproducts notintended forspecifically
military purposes;
(c) which itconsiders essential toitsownsecurity intheevent ofserious internal disturbances
affecting themaintenance oflawandorder, intimeofwarorserious international tension
constituting threat ofwarorinorder tocarry outobligations ithasaccepted forthepurpose
ofmaintaining peace andinternational security.
Article 115
1. InthefieldscoveredbythisAgreementandwithoutprejudicetoanyspecialprovisionscontained
therein:
- thearrangements applied bytheCzech Republic inrespect oftheCommunity shall
notgiverisetoanydiscrimination between theMember States, theirnationals, ortheir
companies orfirms,WT/REG18/6
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- thearrangements applied bytheCommunity inrespect oftheCzech Republic shall
notgiverisetoanydiscrimination between Czech Republic nationals oritscompanies
orfirms.
2. Theprovisions ofparagraph 1arewithout prejudice totheright oftheContracting Parties
toapply therelevant provisions oftheirfiscal legislation totaxpayers whoarenotinidentical situations
asregards theirplace ofresidence.
Article 116
Products originating intheCzech Republic shallnotenjoy more favourable treatment when
imported intotheCommunity thanthatapplied byMember States among themselves.
Thetreatment granted totheCzech Republic under TitleIVandChapter IofTitleVshall
notbemore favourable thanthataccorded byMember States among themselves.
Article 117
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
thisAgreement. They shallseetoitthattheobjectives setoutinthisAgreement areattained.
2. Ifeither Party considers thattheother Party hasfailed tofulfil anobligation under this
Agreement, itmaytakeappropriate measures. Before sodoing, except incases ofspecial urgency,
itshallsupply theAssociation Council withallrelevant information required forathorough examination
ofthesituation withaviewtoseeking asolution acceptable totheParties.
Intheselection ofmeasures, priority mustbegiven tothose which leastdisturb thefunctioning
ofthisAgreement. These measures shallbenotified immediately totheAssociation Council andshall
bethesubject ofconsultations within theAssociation Council iftheother Party sorequests.
Article 118
ThisAgreement shallnot,untilequivalent rights forindividuals andeconomic operators have
beenachieved under thisAgreement, affect rights assured tothemthrough existing agreements binding
oneormore Member States, ontheonehand, andtheCzech Republic, ontheother.
Article 119
Protocols 1,2,3,4,5,6,7and8andAnnexes ItoXVII shallform anintegral partofthis
Agreement.
Article 120
ThisAgreement isconcluded foranunlimited period.
Either Party maydenounce thisAgreement bynotifying theother Party. ThisAgreement shall
cease toapply sixmonths afterthedateofsuchnotification.WT/REG18/6
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Article 121
ThisAgreement shallapply, ontheonehand, totheterritories inwhich theTreaties establishing
theEuropean Economic Community, theEuropean Atomic Energy Community, andtheEuropean
CoalandSteel Community areapplied andunder theconditions laiddown inthose Treaties and,on
theother hand, totheterritory oftheCzech Republic.
Article 122
ThisAgreementisdrawnupinduplicateintheDanish,Dutch,English,French,German,Italian,
Spanish, Greek, Portuguese andCzech languages, eachofthese textsbeing equally authentic.
Article 123
ThisAgreement willbeapproved bytheContracting Parties inaccordance withtheirown
procedures.
ThisAgreement shallenter intoforce onthefirstdayofthesecond month following thedate
onwhich theContracting Parties notify eachother thattheprocedures referred tointhefirstparagraph
havebeencompleted.
Upon itsentry intoforce, thisAgreement shallreplace theAgreement between theEuropean
Economic Community, theEuropean Atomic Energy Community andtheCzech andSlovak Federal
Republic ontrade, economic andcommercial cooperation signed inBrussels on7May1990, andthe
Protocol between theEuropean CoalandSteelCommunity andtheCzech andSlovak Federal Republic
initialled inBrussels on28June1991, before theentry intoforce hereof.
Article 124
1. Inviewofthefactthatprovisions equivalent tothose ofcertain parts oftheAgreement and
thus oftheEuropean Agreement signed between theCommunity anditsMember States on
16December 1991 andtheCzech andSlovak Federal Republic, inparticular those relating tothe
movements ofgoods, wereputintoeffect since 1March 1992 bymeans ofanInterim Agreement on
trade andtrade related measures between theCommunity andtheCzech andSlovak Federal Republic
signed on16December 1991, asamended bytheSupplementary Protocols between theCommunity
andeachoftheCzech Republic andtheSlovak Republic, theParties agree thatinsuchcircumstances
forthepurposes ofTitleIII,Articles 64,66and67oftheAgreement andProtocols 1(with theexception
ofitsArticle 3),2,3,4and5and6,'dateofentry intoforce oftheAgreement 'shallmean:
- 1March 1992 inrelation toobligations taking effect onthedateofentry intoforce
oftheAgreement, and
- 1January 1992inrelation toobligations taking effect afterthedateofentry intoforce
byreference tothedateofentry intoforce.
2. Inthecaseofentry intoforce oftheAgreement after1January inanyyear, theprovisions
ofProtocol 7shallapply.