FREE TRADE AGREEMENT
BETWEEN THE REPUBLIC OF SLOVENIA AND THE REPUBLIC OF HUNGARY
The Republic of Slovenia and the Republic of Hungary (hereinafter called the Parties),
Reaffirming their commitment to a pluralistic democracy based on the rule of law, human rights and fundamental freedoms,
Having regard to the Declaration of Intent concerning the liberalisation of mutual trade relations between the Republic of Slovenia and the Republic of Hungary of 1 December 1992,
Recalling their intention to participate actively in the process of economic integration in Europe and expressing their preparedness to co-operate in seeking ways and means to strengthen this process,
Reaffirming their firm commitment to the principles of a market economy, which constitute the basis for their relations,
Recalling their firm commitment to the Final Act of the Conference on Security and Co-operation in Europe, the Paris Charter, and in particular to the principles contained in the final document of the Bonn Conference on Economic Cooperation in Europe,
Resolved to this end to eliminate progressively the obstacles to substantially all their mutual trade, in accordance with the provisions of the General Agreement on Tariffs and Trade,
Firmly convinced that this Agreement will foster the intensification of mutually beneficial trade relations among them and contribute to the process of integration in Europe,
Considering that no provision of this Agreement may be interpreted as exempting the Parties from their obligations under other international agreements, especially the General Agreement on Tariffs and Trade,
Have decided as follows:
Article 1
Objectives
1. The Parties shall gradually establish a free trade area in accordance with the provisions of this Agreement and in conformity with Article XXIV of the General Agreement on Tariffs and Trade in a transitional period ending on 31st December 2000, at the latest.
2. The objectives of this Agreement are:
(a) to promote through the expansion of trade the harmonious development of the economic relations between the Parties and thus to foster in the Parties the advance of economic activity, the improvement of living and employment conditions, and increased productivity and financial stability,
(b) to provide fair conditions of competition in trade between the Parties,
(c) to contribute in this way, by the removal of barriers to trade, to the harmonious development and expansion of world trade.
Chapter I.
Industrial products
Article 2
Scope
The provisions of this Chapter shall apply to industrial products originating in the Parties. The term "industrial products" means, for the purpose of this Agreement, the products falling within Chapters 25 to 97 of the Harmonised Commodity Description and Coding System, with the exception of the products listed in Annex I.
Article 3
Customs duties on imports
1. No new customs duty on imports shall be. introduced in trade between the Parties.
2. Customs duties on imports shall be abolished in accordance with the provisions of Protocol 1.
Article 4
Basic duties
1. For each product the basic duty, to which the successive reductions set out in this Agreement are to be applied, shall be the Most Favoured Nation rate of duty applicable on the 29 February 1992.
2. If, after entry into force of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff agreement concluded as a result of the Uruguay Round of Multilateral Trade Negotiations, such reduced duties shall replace the basic duties referred to in paragraph 1 as from the date when such reductions are applied.
3. The reduced duties calculated in accordance with paragraph 2 shall be applied rounded to the first decimal place.
4. The Parties shall communicate to each other their respective customs duty rates.
Article 5
Charges equivalent to duties
1. No new charge having an effect equivalent to a customs duty on imports shall be introduced in trade. between the Parties.
2. All charges having an effect equivalent to customs duties on imports shall be abolished on the date of entry into force of this Agreement, except as provided for in subparagraphs of paragraphs 3 arid 4.
3. The Republic of Hungary shall abolish on its imports from the Republic of Slovenia charges having an effect equivalent to customs duties on imports in accordance with the following timetable:
1. 1. 1995 1. 1. 1996 1. 1. 1997 (i) 1% licensing fee 1% – - (ii) 2% customs clearance fee 1% 1% (iii) 3% statistical fee 1% 1% 1%
4. The Republic of Slovenia shall abolish on its imports from the Republic of Hungary the following charges having an effect equivalent to customs duties, in accordance with the following timetable:
(i) 1% customs clearance fee:
1994 1. 1. 1995 1. 1. 1996
- - 1%
(ii) 1% equalisation tax (special charge for imports tax equalisation):
1994 1. 1. 1995 1. 1. 1996
- 0,5% 0,5%
(iii) 15% import tax on imports of used automobiles and motor vehicles for the transportation of goods:
1994 1. 1. 1995 1. 1. 1996
- – 5%
Article 6
Fiscal duties
The Parties shall not apply nor introduce customs duties of a fiscal nature.
Article 7
Customs duties on exports and charges having an equivalent effect
1. No new customs duty on exports or charge having an equivalent effect shall be introduced in trade between the Parties.
2. The Parties shall abolish between them at the latest by 31st December 1995 any customs duties on exports and charges having an equivalent effect.
Article 8
Quantitative restrictions on imports and measures having an equivalent effect
1. No new quantitative restrictions on imports or measures having an equivalent effect shall be introduced in trade between the Parties.
2. All quantitative restrictions and measures having an equivalent effect on imports of products originating in the Parties shall be abolished on the date of entry into force of this Agreement, except as provided for in Annexes II/A and II/B.
Article 9
Quantitative restrictions on exports and measures having an equivalent effect
1. No new quantitative restrictions on exports or measures having an equivalent effect shall be introduced in trade between the Parties.
2. All quantitative restrictions on exports from the Parties and measures having an equivalent effect shall be abolished on the date of entry into force of this Agreement, except as provided for in Annexes III/A and III/B.
Article 10
Information procedure on draft technical regulations
1. The Parties shall notify each other in accordance with the provisions laid down in Annex IV of draft technical regulations and draft amendments thereto, which they intend to issue.
2. The Joint Committee (Article 34) shall decide on the date for implementing the provision in paragraph 1 and Annex IV.
Chapter II.
Agricultural products
Article 11
Scope
1. The provisions of this Chapter shall apply to agricultural products originating in the Parties.
2. The term "agricultural products" means, for the purpose of this Agreement, the products falling within Chapter 1 to 24 of the Harmonised Commodity Description and Coding System and the products listed in Annex I.
Article 12
Exchange of concessions
1. The Parties to this Agreement grant each other concessions, specified in Protocol 2 in accordance with provisions of this chapter and laid down in that Protocol.
2. The Parties, having regard to the role of agriculture in their economies, the development of trade in agricultural products between the Parties, the particular sensitivity of the agricultural products, the rules of their agricultural policies, the outcome of the multilateral trade negotiations under the General Agreement on' Tariffs and Trade, shall examine the possibilities of granting each other further concessions.
Article 13.
Concessions and agricultural policies
1. The provisions of this Chapter shall not restrict in any way the pursuance of the respective agricultural policies of the Parties or the taking of any measures under such policies, including the implementation of the results of the Uruguay Round agreements provided that the concessions granted under Article 12 and their value are preserved.
2. The Parties shall notify to the Joint Committee changes in their respective agricultural policies pursued or measures applied which may affect the conditions of agricultural trade among them as provided for in this Agreement. On the request of a Party, prompt consultations shall be held to examine the situation.
Article 14
Specific safeguards
Notwithstanding other provisions of this Agreement and in particular Article 27, and given the particular sensitivity of the agricultural products, if trade conducted under the concessions granted under this Agreement causes a serious disturbance in the market of the other Party, the Parties concerned shall enter into consultations immediately to find an appropriate solution. The Party concerned may, if circumstances so require, take measures it deems necessary, for a specified period of time, or for as long as market disturbances exist, or until a mutual solution can be found.
These measures shall not result in worse market access conditions for the products originating in the other Party, than those applied to third countries on a most-favored-nation basis.
Article 15
Sanitary and phytosanitary measures
The Parties shall apply their regulations in veterinary, plant health and health matters in a non-discriminatory fashion and shall not introduce any new measures that have effect of unduly obstructing trade.
Chapter III.
General provisions
Article 16
Rules of origin and co-operation in customs administration
1. Protocol 3 lays down the rules of origin and related- methods of administrative co-operation.
2. The Parties shall take appropriate measures, including regular reviews by the Joint Committee and arrangements for administrative co-operation, to ensure that the provisions of Protocol 3 and Articles 3 to 9, 12, 17 and 27 of this Agreement are effectively and harmoniously applied, and to reduce, as far as possible, the formalities imposed on trade, and to achieve mutually satisfactory solutions to any difficulties arising from the operation of those provisions.
Article 17
Internal taxation
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products originating in the Parties.
2. Products exported to the territory of one of the Parties may not benefit from repayment of internal taxes in excess of the amount of direct or indirect taxes imposed on them.
Article 18
General exceptions
"This Agreement shall not preclude prohibitions or restrictions on imports, exports, of goods in transit, justified on grounds of:
– public morality, public policy or public security;
– the protection of health and life of humans, animals or plants;
– the protection of national treasures possessing artistic, historic or archaeological value;
– protection of intellectual property;
– rules relating to gold or silver;
– the protection of the environment, among other things the conservation of exhaustible natural resources,
if such measures are made effective in conjunction with restrictions on domestic production or consumption. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 19
Security exceptions
Nothing in this Agreement shall prevent a Party from taking any measure which it considers necessary:
(a) to prevent the disclosure of information contrary to its essential security interests;
(b) for the protection of its essential security interests and for the implementation of international obligations or national policies:
(i) relating to the traffic in arms, ammunitions and implements of war, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes, and to such traffic in other goods, materials and services as is carried on directly or indirectly for the purpose of supplying a military establishment; or
(ii) relating to the non proliferation of biological and chemical weapons, nuclear weapons, other nuclear explosive devices; or
(iii) taken in time of war or other serious international tension.
Article 20
State monopolies
1. The Parties shall adjust progressively any State monopoly of commercial character so as to ensure that by the end of the fifth year after the entry into force of the Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Parties. The Joint Committee will be informed of the measures adopted to implement this objective.
2. The provisions of this Article shall apply to any body through which the competent authorities of the Parties, in law or in fact, either directly or indirectly supervise, determine or appreciably influence imports or exports between the Parties. These provisions shall likewise apply to monopolies delegated by the State to others.
Article 21
Payments
1. Payments in freely convertible currencies relating to trade in goods between the Parties and the transfer of such payments to the territory of the Party to this Agreement, where the creditor resides, shall be free from any restrictions.
2. The Parties shall refrain from any exchange or administrative restrictions on the grant, repayment or acceptance of short and medium term credits to trade in goods in which a resident participates.
3. Notwithstanding paragraph 2, until Article VIII of the Articles of Agreement of the International Monetary Fund becomes applicable for the Parties, the Parties reserve the right to apply exchange restrictions on the grant or acceptance of short and medium term credits related to trade in goods to the extent permitted according to. their status under the International Monetary Fund, provided that these restrictions are applied in a non-discriminatory manner as regards the origin of the products and that they are not applied only to specific products or group of products.
The restrictions shall be of limited duration and shall be eliminated when conditions no longer justify their maintenance. The Parties shall inform the Joint Committee promptly of the introduction of such measures and of any changes therein.
Article 22
Rules of competition concerning undertakings
1. The following are incompatible with the proper functioning of this Agreement in so far as they may affect trade between the Parties:
(a) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the Parties as a whole or in substantial part, thereof.
2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public undertakings and undertakings to which the Parties grant special or exclusive rights.
Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly, shall be subject to provisions of paragraph 1 insofar as the application of these provisions does not obstruct the performance, in law or in fact, of the particular public tasks assigned to them.
3. With regard to products referred to in Chapter II, the provisions stipulated in paragraph 1 (a) of this Article shall not apply to such agreements, decisions and practices which form an integral part of regulation of the national market.
4. If a Party considers, that a given practice is incompatible with paragraphs 1, 2 and 3 of this Article and if such practice causes or threatens to cause serious prejudice to the interest of that Party or material injury to its domestic industry, it may take appropriate measures under the conditions and in accordance with the procedure laid down in Article. 31.
Article 23
State Aid
1. Any aid granted by a Party to this Agreement or through State resources in any form whatsoever which distorts or threatens to distort competition by favoring certain undertakings or the production of certain goods shall, in so far as it may affect trade between this Party and the other Party to this Agreement, be incompatible with the proper functioning of this Agreement.
2. The provisions of paragraph 1 shall not apply to products referred to in Chapter II.
3. The Joint Committee shall, within three years from the entry into force of this Agreement, adopt the criteria on the basis of which the practices contrary to paragraph 1 shall be assessed, as well as the rules for their implementation.
4. The Parties shall ensure transparency in the area of state aid, inter alia, by reporting annually to the Joint Committee on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes and on particular individual cases of state aid.
5. If a Party considers that a particular practice is incompatible with the terms of paragraph 1, and is not adequately dealt with under the implementing rules referred to in paragraph 3, or in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of that Party or material injury to its domestic industry, it may take appropriate measures under the conditions of and in accordance with the provisions laid down in Article 31.
Such appropriate measures may only be taken in conformity with the procedures and under the conditions laid down by the General Agreement on Tariffs and Trade and any other relevant instruments negotiated under its auspices which are applicable between the Parties concerned.
Article 24
Government Procurement
1. The Parties consider the liberalisation of their respective government procurement markets as an objective of this Agreement.
2. The Parties shall develop their respective regulations for government procurement with a view to grant suppliers of the other Party by the end of the transition period of this Agreement access to contract award procedures on their" respective government procurement markets according to the provisions of the GATT Agreement on Government Procurement of 12 April 1979, as amended by a Protocol of Amendments of 2 February 1987.
3. The Joint Committee shall examine developments related to the achievement of the Objectives of this Article and may recommend practical modalities of implementing the provisions of paragraph 2 of this Article so as to ensure free access, transparency and full balance of rights and obligations.
4. During the examination referred to in paragraph 3 of this Article, the Joint Committee may consider, especially. in the light of developments in this area in international relations, the possibility of extending the coverage and the degree of the market opening provided for in paragraph 2.
5. The Parties shall endeavour to accede to Agreements negotiated under the auspices of the General Agreement on Tariffs and Trade, relevant to government procurement.
Article 25
Protection of intellectual property
1. The Parties shall grant and ensure protection of intellectual property rights on a non-discriminatory basis, including measures for the grant and enforcement of such rights. The protection shall be gradually improved and, before the end of the fifth year after the entry into force of this Agreement, of a level corresponding to the substantive standards of the multilateral agreements which are specified in Annex V.
2. For the purpose of this Agreement "intellectual property protection" includes in particular protection of copyright, comprising computer programs and databases, related and neighbouring rights, trade marks, geographical indications, industrial designs, patents, technical and design improvements, topographies of integrated circuits, as well as undisclosed information on know-how.
3. Protection of topographies of integrated circuits ensured by a Party shall be granted on a reciprocal basis.
4. The Parties shall co-operate in matters of intellectual property. They shall hold, upon request expert consultations on these matters, in particular on activities relating to the existing or to future- international conventions on harmonisation, administration and enforcement of intellectual property and on activities in international organisations, such as World Intellectual Property Organization, as well as the General Agreement on Tariffs and Trade, as well as relations of Parties with third countries on matters concerning intellectual property.
Article 26
Dumping
If a Party finds that dumping within the meaning of Article VI of the General Agreement on Tariffs and Trade is taking place in trade relations governed by this Agreement, it may take appropriate measures against that practice in accordance with Article VI of the General Agreement on Tariffs and Trade and agreements related to that Article, under the conditions and in accordance with the procedure laid down in Article 31.
Article 27
General safeguards
Where any product is being imported in such increased quantities and under such conditions as to cause or threaten to cause:
(a) serious injury to domestic producers of like or directly competitive products in the territory of the importing Party, or
(b) serious disturbances in any related sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region, the Party concerned may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.
Article 28
Structural adjustment
1. Exceptional measures of limited duration which derogate the provisions of Article 3 may be taken by either Party in the form of increased customs duties.
2. These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce significant social problems.
3. Customs duties on imports applicable in the Party concerned to products originating in the other Party introduced by these measures may not exceed 25% ad valorem and shall maintain an element of preference for products originating in the other Party. The total value of imports of the products which are subject to these measures may not exceed 15% of total imports of industrial products from the other Party as defined in Chapter I., during the last year for which statistics are available.
4. These measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Joint Committee. They shall cease to apply not later than by the end of the transition period.
5. With regard to paragraph 1 of this Article, no such measures can be introduced in respect of a product if more than three years elapsed since the elimination of all duties and quantitative restrictions or charges or measures having an equivalent effect concerning that product.
6. The Party concerned shall inform the Joint Committee of exceptional measures it intends to take and, at the request of the other Party, consultations shall be held in the Joint Committee on such measures and the sectors to which they apply before they are applied. When taking such measures the Party concerned shall provide the Joint Committee with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction, at equal annual rates. The Joint Committee may decide on a different schedule.
Article 29
Re-export and serious shortage
Where compliance with the provisions of Article 7 and 9 leads to:
(a) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures or charges having an equivalent effect; or
(b) a serious shortage or threat thereof, of a product essential to the exporting Party;
and where circumstances give rise or are likely to give rise to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 31.
Article 30
Fulfilment of obligations
1. The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall ensure that the objectives set out in the Agreement are achieved.
2. If a Party considers that the other Party has failed to fulfil an obligation under this Agreement, the Party concerned may take appropriate measures under the conditions and in accordance with the procedure laid down in Article 31.
Article 31
Procedure for the application of safeguard measures
1. Before initiating the procedure for the application of safeguard measures set out in the following paragraphs of this Article, the Parties shall endeavour to solve any differences between them through direct consultations.
2. In the event of a Party subjecting imports of products, liable to give rise to the situation referred to in Article 27, to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.
3. Without, prejudice to paragraph 7 of this Article, a Party which considers resorting to safeguard measures shall promptly notify the other Party and supply all relevant information. Consultations between the Parties shall take place without delay with a view to finding a solution.
4. (a) As regards Articles 26, 27 and 29, in case that a joint solution cannot be found, or that the Parties cannot or do not meet within thirty days in order to consult each other, the Party concerned may adopt the measures necessary in order to remedy the situation, and appropriately notify the other Party.
(b) As regards Article 30, the Party concerned may take appropriate measures after the consultations have been concluded or after a period of three months has elapsed from the date of notification to the other Party.
(c) As regards Article 22 and 23, the Party concerned shall request from the other Party to eliminate the practice objected to. If the other Party fails to put an end to the practice objected to, or if an agreement cannot be reached within sixty days, the. Party concerned may adopt appropriate countermeasures to deal with the problems resulting from the practice in question.
5. The safeguard measures taken shall be notified immediately to the other Party. They shall be limited with regard to their extent and to their duration to what is strictly necessary in order to rectify the situation giving rise to their application and shall not be in excess of the injury caused by the practice or the difficulty in question. Priority shall be given to such measures as will least disturb the functioning of the Agreement. The measures taken by. a Party against an action or an omission of another Party may only affect the trade with that Party.
6. The safeguard measures taken shall be the object of periodic consultations with a view to their relaxation as soon as possible, or abolition when conditions no longer justify their maintenance.
7. Where exceptional circumstances requiring immediate action make prior examination impossible, the Party concerned may, in the cases of Articles 26, 27 and 29, apply provisional measures strictly necessary to remedy the situation. The measures shall be notified without delay and consultations between the Parties shall take place as soon as possible.
Article 32
Balance of payments difficulties
1. The Parties shall endeavour to avoid the imposition of restrictive measures including measures relating to imports for balance of payments reasons.
2. Where one of the Parties is in serious balance of payments difficulties, or under imminent threat thereof, the Party concerned may, in accordance with the conditions established under the General Agreement on Tariffs and Trade, adopt restrictive measures, including measures related to imports, which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The measures shall be progressively relaxed as balance of payments conditions improve and they shall be eliminated when conditions no longer justify their maintenance. The Party shall inform the other Party forthwith of their introduction and, as soon as possible of a time schedule for their removal.
Article 33
Evolutionary clause
1. Where a Party considers that it would be useful in the interests of the economies of the Parties to develop and deepen the relations established by the Agreement by extending them to fields not hereby covered, it shall submit a reasoned request to the other Party. The Parties may ask the Joint Committee to examine such a request and, where appropriate, to make recommendations, particularly with a view to opening of negotiations.
2. Agreements resulting from the procedure referred to in paragraph 1 will be subject to ratification or approval by the Parties in accordance with their national legislation.
Article 34
The Joint Committee
1. The Parties agree to set up a Joint Committee composed of representatives of the Parties.
2. The implementation of this Agreement shall be supervised and administered by the Joint Committee.
3. For the purpose of the proper implementation of this Agreement, the Parties shall exchange information and, at the request of either Party, shall hold consultations within the Joint Committee. The Committee shall keep under review the possibility of further removal of the obstacles to trade between the Parties.
4. The Joint Committee may take decisions in the cases provided for in this Agreement. On other matters the Committee may make recommendations.
Article 35 Procedures of the Joint Committee
1. For the proper implementation of this Agreement the Joint Committee shall meet whenever necessary but at least once a year. Each Party may request that a meeting be held.
2. The Joint Committee shall take decisions or recommandations unanimously.
3. If either side in the Joint Committee accepts a decision, under reservation of constitutional procedure, the. decision shall enter into force, if no other date is foreseen therein, on the day of notification of fulfilment of the constitutional procedure.
4. The Joint Committee shall adopt its rules of procedure which shall, inter alia, contain provisions for convening meetings and for the designation of the Chairman and a term of office.
5. The Joint Committee may decide to set up such subcommittees and working groups as it may consider necessary, to assist in accomplishing its tasks.
Article 36
Trade relations governed by this and other agreements
This Agreement shall not prevent the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, to the extent that, they do not negatively affect the trade regime and in particular the provisions concerning rules of origin provided for by this Agreement.
Article 37
Annexes, Protocols and Amendments
1. The Annexes and the Protocols attached, to this Agreement are its integral part. The Joint Committee may decide to amend the Annexes and Protocols in accordance with the provisions of paragraph 3 of Article 35.
2. Proposals of amendments to this' Agreement other than those referred to in paragraph 4 of Article 34 which are approved by the Joint Committee shall be submitted to the other Party for acceptance and may enter into force when accepted by both Parties.
Article 38
Entry into force
This Agreement will be approved by the Parties in accordance with their own procedures.
This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first paragraph have been completed.
Article 39
Interim application
Pending the entry into force of this Agreement according to Article 38 the Parties agree to apply this Agreement on an interim basis from the first day of the third month following the signing of this Agreement.
Either Party may cease the interim application of this Agreement by means of written notification to the other Party. The interim application of this Agreement shall be closed six months after the date of such notification.
Article 40
Validity and withdrawal
This Agreement is concluded for an unlimited period.
Either Party may denounce this Agreement by means of a written notification to the other Party. This Agreement shall expire six months after the date of such notification.
Done in Ljubljana, on April 6, 1994 in duplicate in Slovenian, Hungarian and English languages, whereas, for interpretation purposes the English version shall prevail.
For the Republic of Slovenia
Davorin Kračun (s)
For the Republic of Hungary
Bela Kadar (s)
RECORD OF UNDERSTANDINGS
1. The Parties declare their readiness to examine in the Joint Committee the possibility of extending to each other any concessions they grant or will grant to third countries with which they concluded a Free Trade Agreement or other similar agreement to which Article XXIV of the General Agreement on Tariffs and Trade applies.
2. As regards paragraph 2 of Article 4, the Parties agree that where a reduction of duties is effected by way of a suspension of duties made for a particular period of time, such reduced duties shall replace the basic duties only for the period of such suspension; and that whenever a partial suspension of duties is made, the preferential margin between the Parties will be preserved.
3. The Parties agree that Article 9 does not apply when measures covered by this Article might be required for the administration of international obligations.
4. Concerning Article 15 the Parties intend to harmonise their veterinary and phytosanitary control, measures, with international codes and conventions and with the relevant regulations of the European Communities.
5. When elaborating the criteria and rules indicated in paragraph 3 of Article 23, the Parties:
– shall aim at ensuring their greatest possible conformity with the relevant criteria and rules used under the Agreement between each of the Parties of this Agreement and the European Communities;
– shall define the conditions and/or situations when temporary derogations of the provisions of paragraph 1 may be applicable;
– shall review the conditions under which actions against state aid practices may be taken.
6. Concerning paragraph 4 of Article 23 the Joint Committee shall within one year following the entry into force of this Agreement discuss and adopt the necessary rules for the implementation of transparency measures.
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