the Republ i c of Li thuani a ( her ei nafter cal l ed Li thuani a),

Transcription

1 FREE TRADE AGREEMENT BETWEEN THE EFTA STATES AND THE REPUBLIC OF LITHUANI A PREAMBLE The Republ i c of I cel and, t he Pr i ncipal i t y of Li echt enstei n, t he Ki ngdom of Nor way, t he Swiss Confeder at i on ( her ei naf t er cal l ed t he EFTA St at es) and the Republ i c of Li thuani a ( her ei nafter cal l ed Li thuani a), Recalling their intention to participate act ivel y i n t he pr ocess of economic i nt egr ati on in Europe and expr essi ng t hei r pr epar edness to co- oper at e i n seeki ng ways and means to str engthen thi s pr ocess, Consi der i ng t he i mpor t ance of t he li nks exi sti ng bet ween t he EFTA St at es and Li thuani a, i n par t i cul ar t he Decl ar at i on si gned i n Geneva i n December 1991, and recognizing the common wish to str engthen these links, thus establ i shi ng close and lasting relations, Recalling their firm commitment to the Final Act of the Confer ence on Secur i t y and Cooper at i on i n Eur ope, t he Char t er of Par i s f or a new Eur ope, and in par t i cular t he pr i nci pl es contai ned i n the fi nal document of t he CSCE Bonn Conf er ence on Economi c Co- oper at i on i n Eur ope, Reaf fi r mi ng t hei r commi t ment t o pl ur al i st i c democr acy based on t he r ul e of l aw, human r i ght s, incl udi ng r i ght s of per sons belongi ng t o mi nor i t i es, and f undament al fr eedoms, and recalling their membership in the Council of Europe, Desi r i ng t o cr eate favourable conditi ons for the devel opment and di ver si f i cat i on of tr ade between them and f or t he pr omot i on of commer ci al and economi c co- oper at i on i n ar eas of common i nt er est on t he basi s of equal i t y, mut ual benef i t, most - f avour ednati on tr eat ment and i nt er nat i onal l aw, Resolved t o cont r i but e t o t he st r engt heni ng of t he mul ti l at er al tr adi ng syst em and t o develop t hei r r el at i ons in t he f i eld of t r ade i n accor dance wi t h t he pr i ncipl es of t he Agreement Est abl i shi ng t he Wor l d Tr ade Or ganizat i on ( WTO), Li t huani a havi ng t he obj ect i ve t o become a Member of WTO, Consi der i ng t hat no pr ovisi on of t hi s Agr eement may be i nt er pr et ed as exempt i ng t he St at es Par t i es t o this Agr eement from t hei r obl i gat i ons under ot her i nt er nat i onal agr eement s, especi al l y WTO, Determined t o impl ement thi s Fr ee Tr ade Agr eement wi t h t he obj ecti ve t o pr eser ve and pr otect the envi r onment and t o ensur e an opt imal use of nat ur al r esour ces in accor dance wi t h t he pr i nci pl e of sust ai nabl e gr owt h, Fi rmly convinced that this Free Trade Agreement will foster the creation of an enl ar ged and har moni ous fr ee t r ade ar ea wi t hin Eur ope, t hus consti t ut i ng an i mpor t ant contr i buti on to Eur opean i nt egr at i on, Decl ar ing t hei r r eadi ness t o exami ne, i n t he l i ght of any r el evant f act or, t he possibility of developing and deepeni ng t hei r economi c r el at i ons i n or der to ext end them to fields not covered by this Agr eement,

2 HAVE DECI DED, in pur sui t of t he above, t o concl ude t he f ol l owi ng Agr eement (hereinafter cal l ed t hi s Agr eement ) : Ar t i cl e 1 Obj ect i v es 1. The EFTA St at es and Li t huani a shal l establ i sh a fr ee t r ade ar ea i n accor dance with the pr ovi si ons of t he pr esent Agr eement. 2. The obj ectives of t hi s Agr eement, whi ch i s based on t r ade r el at i ons bet ween mar ket economi es and on the r espect of democr at i c pr i nci pl es and human r i ght s, ar e: (a)to promote, t hr ough t he expansi on of r eci pr ocal t r ade, t he har moni ous devel opment of t he economi c r el at i ons bet ween the EFTA Stat es and Li t huani a and t hus t o f ost er i n the EFTA States and i n Lit huani a t he advance of economic act i vi t y, t he i mpr ovement of living and employment condi t i ons, and i ncr eased pr oducti vi t y and f i nanci al st ability; (b)to pr ovi de fai r condi ti ons of compet i t i on f or t r ade bet ween t he St at es Par t i es t o this Agr eement ; (c)to contribute i n t hi s way, by t he r emoval of bar r i er s t o t r ade, t o Eur opean economi c i nt egr at i on and t o t he har moni ous devel opment and expansi on of wor l d t r ade. Ar t i cl e 2 Scope Thi s Agr eement shal l apply: (a)to pr oducts falling within Chapters 25 to 97 of the Harmonized Commodity Descr i pti on and Codi ng Syst em, excludi ng t he pr oduct s li st ed i n Annex I ; (b)to pr oduct s speci f i ed i n Pr ot ocol A, wi t h due r egar d t o t he ar r angement s pr ovi ded for in that Pr otocol ; (c)to fish and ot her mar ine pr oducts as pr ovided f or i n Annex I I ; or i ginat i ng i n an EFTA Stat e or Li thuani a. Ar t i cl e 3 Rules of or i gi n and co- oper at i on i n cust oms admi ni st r ati on 1. Pr otocol B l ays down t he r ul es of or i gi n and met hods of admi ni st r at i ve cooper at i on. 2. The Stat es Par ti es t o t his Agr eement shal l t ake appr opr i at e measur es, includi ng r egular r evi ews by t he Joi nt Commi tt ee and ar r angement s f or admi ni st r at i ve co- oper at ion, t o ensur e t hat the pr ovi sions of Ar ti cl es 4 ( Cust oms dut i es on i mpor t s and char ges havi ng equi val ent ef f ect ), 5 ( Basi c dut i es), 6 ( Cust oms dut i es of a f i scal nat ur e), 7 ( Customs dut i es on expor ts and char ges havi ng equi val ent ef f ect ), 8 ( Quant i t at i ve r est r i ct i ons on i mpor t s or expor t s and measur es havi ng equi val ent ef f ect ), 1 3 ( Int er nal t axat i on) and 2 2 ( Re- expor t and ser i ous shor t age) of this Agr eement and Pr ot ocol B ar e ef f ect i vel y and har moni ousl y appl i ed, and t o r educe,

3 as f ar as possibl e, t he for mal i t i es i mposed on t r ade, and t o achieve mut uall y sati sfactor y solutions to any difficulties arising from the oper at i on of t hose pr ovi si ons. 3. A first review referred to in paragraph 2 will take place within one year after the entr y into for ce of this Agr eement. Subsequent r eviews shal l t ake pl ace ever y second year. On the basis of these r eviews, t he St at es Par t i es to t hi s Agr eement shal l deci de on t he appr opr i at e measur es t o be t aken. Ar t i cl e 4 Cust oms duti es on i mpor t s and char ges havi ng equi val ent ef f ect 1. No new customs duty on i mpor t s or char ge having equi valent ef f ect shal l be intr oduced i n tr ade bet ween t he EFTA St at es and Li t huani a. 2. The EFTA States shal l abol i sh on t he dat e of ent r y i nt o f or ce of t hi s Agr eement al l cust oms duti es on i mpor t s and any char ges havi ng equi val ent ef f ect on pr oduct s or i ginat i ng i n Li t huani a. 3. Lithuani a shal l abol i sh on t he dat e of ent r y i nt o f or ce of t hi s Agr eement al l customs dut i es on i mpor t s and any char ges havi ng equi val ent ef f ect on pr oduct s or i ginat i ng i n an EFTA Stat e, except as pr ovided f or i n Annex I I I. Ar t i cl e 5 Basi c dut i es 1. For each pr oduct t he basic dut y t o whi ch t he successi ve r educt i ons set out i n this Agr eement ar e t o be appl i ed, shal l be t he Most - Favour ed- Nat ion r at e of dut y (conventional rate of duty) applied on 1 November If, befor e, by or after entr y into for ce of this Agr eement, any tar iff r educt i on is appl i ed on an er ga omnes basis, i n par ti cul ar r educti ons i mpl emented as a r esult of the accessi on of Li thuania to the WTO, such r educed dut i es shal l r eplace t he basi c dut i es r ef er r ed t o i n par agr aph 1 as f r om t he dat e when such r educt i ons ar e appl i ed, or f r om t he entr y i nt o f or ce of t his Agr eement i f t hi s i s l at er. 3. The reduced duti es cal culat ed i n accor dance wi t h Ar t i cle 4 ( Cust oms dut i es on imports and char ges havi ng equi val ent ef f ect ) shal l be appl i ed r ounded t o the f i r st deci mal pl ace or, i n case of speci fi c dut i es, t o t he second deci mal pl ace. Ar t i cl e 6 Cust oms duti es of a f i scal nat ur e The pr ovi si ons of Ar t i cl e 4 ( Cust oms dut i es on i mpor t s and char ges havi ng equi val ent ef f ect ) shal l al so appl y t o cust oms dut i es of a f i scal nat ur e, except as pr ovi ded f or i n Pr otocol C. Ar t i cl e 7 Cust oms duti es on expor t s and char ges havi ng equi val ent ef f ect 1. No new customs duty on expor t s or char ge having equi valent ef f ect shal l be intr oduced i n tr ade bet ween t he EFTA St at es and Li t huani a.

4 2. The EFTA States and Li t huani a shal l abol i sh on t he dat e of entr y i nt o f or ce of this Agr eement al l cust oms dut i es on expor t s and any char ges having equi valent ef f ect. Ar t i cl e 8 Quanti t ative r estrictions on imports or expor t s and measur es havi ng equi val ent ef f ect 1. No new quant i t at i ve r est r i ct ion on i mpor t s or expor t s and measur es havi ng equi val ent ef f ect shal l be i nt r oduced i n t r ade bet ween t he EFTA St at es and Li t huani a. 2. The EFTA States shal l abol i sh on t he dat e of ent r y i nt o f or ce of t hi s Agr eement quanti t at i ve r est r i ct i ons on i mpor ts or expor t s and measur es having equi valent ef f ect, except as pr ovided f or i n Annex I V. 3. Lithuani a shal l abol i sh on t he dat e of ent r y i nt o f or ce of t hi s Agr eement al l quanti t at i ve r est r i ct i ons on i mpor ts or expor t s and measur es having equi valent ef f ect. Ar t i cl e 9 Gener al ex ceptions Thi s Agr eement shal l not pr ecl ude pr ohi bi t i ons or r est r i ct i ons on i mpor t s, expor t s or goods i n t r ansit j ust i f i ed on gr ounds of publi c mor al i ty, publ i c pol i cy or publ i c security; the pr ot ect i on of heal t h and l i f e of humans, ani mal s or pl ant s and t he envi r onment ; t he pr ot ect ion of nat ional t r easur es possessi ng ar t ist i c, hi stor i c or ar chaeol ogi cal val ue; t he pr ot ect i on of i nt ell ect ual pr oper t y; r ul es r el at ing t o gol d or silver; or the conser vat ion of exhaust i bl e nat ur al r esour ces, i f such measur es ar e made ef f ect i ve i n conj unct i on wi t h r est r i ct i ons on domest i c pr oduct i on or consumpt i on. Such pr ohi bi t i ons or r est r i ct i ons shal l not, however, const i tut e a means of ar bi t r ar y discr i mi nat ion or a disgui sed r est r i ct i on on t r ade bet ween t he St at es Par ties to this Agr eement. Ar t i cl e 1 0 St at e monopol i es 1. The Stat es Par ti es t o t his Agr eement shal l ensur e t hat any st at e monopol y of a commer ci al char acter be adj usted, subj ect t o t he pr ovi si ons l ai d down i n Pr ot ocol D, so that no di scr i mi nat i on r egar di ng t he condit i ons under whi ch goods ar e pr ocur ed and market ed will exist between nationals of the EFTA States and of Lithuania. These goods shal l be pr ocur ed and mar ket ed i n accor dance wi t h commer ci al consi der at i ons. 2. The pr ovi si ons of t hi s Ar t i cl e shal l appl y to any body t hr ough whi ch t he competent aut hor i t i es of t he St at es Par t i es to t hi s Agr eement, i n l aw or i n f act, ei ther di r ect l y or i ndi r ect l y super vi se, det er mi ne or appr eci abl y i nf l uence i mpor ts or expor t s bet ween t he St at es Par t i es t o t hi s Agr eement. These pr ovi si ons shal l l i kewi se appl y t o monopol i es del egat ed by t he St at e t o ot her bodi es. Ar t i cl e 1 1 Techni cal r egulat i ons 1. The Stat es Par ti es t o t his Agr eement agr ee:

5 (a)to hold immediat e consul t at i ons i n t he f r amewor k of t he Joi nt Commi t t ee i n case a St at e Par t y consi der s t hat anot her St at e Par ty has t aken measur es whi ch ar e l i kel y t o cr eate, or have cr eat ed, an obst acle t o t r ade, i n or der t o f i nd an appr opr iat e sol ut ion; (b)to discuss in the Joi nt Committee possibilities to co- oper ate mor e closely on matter s r elated to r emoving obstacles. This co- operation may take place i n f i el ds related t o t echni cal r egul at i ons and st andar di zat i on as wel l as test i ng and cer t i f i cat i on. 2. The Stat es Par ti es t o t his Agr eement commi t themsel ves t o not i fy t he t echni cal r egulat i ons i n accor dance wi t h t he pr ovi si ons of t he WTO Agr eement on Techni cal Barriers to Tr ade. Ar t i cl e 1 2 Tr ade i n agr i cul t ur al pr oduct s 1. The Stat es Par ti es t o t his Agr eement decl ar e t hei r r eadi ness t o fost er, i n so f ar as t hei r agr i cul t ur al poli ci es al l ow, har monious devel opment of tr ade i n agr i cul t ur al pr oduct s. 2. In pur suance of thi s obj ect i ve each i ndi vi dual EFTA St at e and Li thuani a have concluded a bi lat er al ar r angement pr ovi di ng for measur es t o f aci li t at e t r ade i n agr i cul t ur al pr oduct s. 3. The Stat es Par ti es t o t his Agr eement shal l appl y t hei r r egul at i ons i n sani tar y and phyt osani t ar y mat t er s i n a non- di scr i mi nat or y manner and shal l not i nt r oduce any new measur es t hat have t he ef f ect of undul y obst r uct i ng t r ade. Ar t i cl e 1 3 Internal taxation 1. The Stat es Par ti es t o t his Agr eement shal l r ef r ai n f r om any measur e or pr acti ce of an i nt er nal fi scal nat ur e est abl ishi ng, whet her di r ect l y or i ndi r ect l y, di scr i mi nat i on bet ween t he pr oduct s or i gi nat ing i n an EFTA St at e and l i ke pr oduct s or i ginat i ng i n Li t huani a. 2. Exporter s may not benef i t f r om r epayment of int er nal t axat i on i n excess of t he amount of di r ect or i ndi r ect t axat ion i mposed on pr oduct s expor t ed t o t he ter r i t or y of one of t he St ates Par t i es t o t hi s Agr eement. Ar t i cl e 1 4 Payments 1. Payments relating to tr ade bet ween an EFTA Stat e and Lit huani a and t he tr ansfer of such payments to the ter r itor y of the State Par ty to this Agr eement wher e the cr edi t or r esi des, shal l be f r ee f r om any r est r i ct i ons. Payment s bet ween t he Parties shal l be ef f ect ed i n f r eel y conver t i bl e cur r enci es, unl ess ot her wi se agr eed by individual compani es i n indi vi dual cases. 2. The St at es Par ti es t o t his Agr eement shal l r ef r ai n f r om any cur r ency exchange or admi ni st r at ive r est r i ct i ons on the gr ant, r epayment or accept ance of shor t and

6 medi um- t er m cr edi t s cover i ng commer ci al t r ansact i ons i n whi ch a r esi dent par tici pat es. Ar t i cl e 1 5 Publ ic pr ocur ement 1. The Stat es Par ti es t o t his Agr eement consi der t he ef f ect i ve l i ber al i zat i on of their r espect i ve publ i c pr ocur ement mar ket s on t he basis of non- di scr i mi nati on and reciproci t y, i n par t i cul ar on t he basi s of t he Agr eement on Gover nment Pr ocur ement (GPA) at Annex IV to the Agr eement Establishing the WTO, as an i nt egr al obj ect i ve of this Agr eement. 2. To this effect, the Par ties shall, within one year after the entry into force of this Agr eement, el abor at e r ul es wi thi n t he f r amewor k of t he Joi nt Commi t t ee wi t h a view to ensur e such a l i ber al i zat i on. 3. The St at es Par ti es t o t his Agr eement concer ned shal l endeavour t o accede t o t he WTO Agr eement on Gover nment Pr ocur ement. Ar t i cl e 1 6 Pr otecti on of int el l ect ual pr oper t y 1. The St at es Par ti es t o t his Agr eement shal l gr ant and ensur e adequat e, ef f ect i ve and non- di scr i mi nat or y pr ot ect i on of i nt el l ect ual pr oper t y r i ght s, i ncl udi ng measur es for the enf or cement of such r i ght s agai nst i nf r i ngement t her eof, count er f eit i ng and pi r acy. Particular obl i gat i ons of the St at es Par t i es t o t hi s Agr eement ar e cont ai ned i n Annex V. 2. In accor dance wi t h t he subst ant i ve pr ovi si ons of t he TRI PS Agr eement, i n par ticul ar Ar ticl es 4 and 5 ther eof, t he St ates Par t i es t o t hi s Agr eement shal l not gr ant t r eat ment l ess f avour abl e t o nat i onal s of each other t han that accor ded t o nati onal s of any ot her Stat e. I n accor dance wi t h Ar t i cl e 4, par agr aph ( d) of t he TRIPS Agreement, any advant age, f avour, pr i vi l ege or i mmuni t y der i vi ng f r om i nt er nat i onal agr eement s i n for ce f or a St at e Par t y t o t hi s Agr eement at t he ent r y i nt o for ce of t hi s Agr eement and not i f i ed t o t he ot her St at es Par t i es at the l at est si x mont hs af t er t he ent r y i nt o f or ce of t hi s Agr eement, shal l be exempt ed fr om t hi s obl i gat i on, pr ovi ded that i t does not const i t ut e an ar bit r ar y or unj ust i f i abl e di scr i mi nat i on of nat i onal s of the other St at es Par t i es. 3. Two or mor e St at es Par t i es t o t hi s Agr eement may concl ude fur t her agr eement s exceedi ng t he r equi r ements of t hi s Agr eement, pr ovi ded t hat such agr eement s shal l be open t o al l ot her St at es Par t i es t o t hi s Agr eement on ter ms equi val ent t o those under the agr eement s and t hat they shal l be r eady to ent er i nt o good f ai t h negot iat i ons t o t hi s end. 4. The Stat es Par ti es t o t his Agr eement agr ee, upon r equest of an EFTA St at e or Li thuani a, t o r evi ew t he pr ovi si ons on t he pr ot ect i on of i nt el l ect ual pr oper t y r i ght s contai ned i n t he pr esent Ar t i cl e and i n Annex V, wi t h a vi ew t o fur t her i mpr ove l evels of pr ot ect i on and t o avoid or r emedy t r ade dist or t i ons caused by act ual l evel s of pr otecti on of int el l ect ual pr oper t y r i ght s. Ar t i cl e 1 7 Rul es of competi tion concer ni ng under taki ngs

7 1. The following are incompatible with the proper f unct i oni ng of t his Agr eement in so far as t hey may af fect t r ade bet ween an EFTA St ate and Li t huani a: (a)all agr eement s bet ween under t akings, deci si ons by associ at i ons of under taki ngs and concer ted pr acti ces between under taki ngs whi ch have as thei r obj ect i ve or ef f ect t he pr eventi on, r est r i ct i on or di st or t ion of compet i t i on; (b)abuse by one or mor e under t aki ngs of a domi nant posit i on i n t he t er r i t or i es of t he St at es Par t i es t o this Agr eement as a whol e or i n a subst ant i al par t t her eof. 2. The pr ovi si ons of par agr aph 1 shal l al so apply t o t he act i vi t i es of publ i c under taki ngs, and under taki ngs for whi ch the St at es Par t i es t o t hi s Agr eement gr ant special or exclusi ve r i ght s, i n so f ar as t he appl i cat ion of t hese pr ovi si ons does not obst r uct t he per f or mance, i n l aw or i n f act, of t he par t i cul ar publ i c t asks assi gned t o them. 3. If a State Par ty to this Agr eement consi der s t hat a gi ven pr act i ce i s incompatible with the provisions of paragr aphs 1 and 2, i t may t ake appr opr i at e measur es under t he condi ti ons and in accor dance wi t h t he pr ocedur es l ai d down i n Ar t i cl e 25 ( Procedure for the appl icat i on of saf eguar d measur es). Ar t i cl e 1 8 St at e ai d 1. Any aid gr ant ed by a St ate Par t y t o t hi s Agr eement or thr ough St at e r esour ces in any f or m what soever whi ch di st or t s or t hr eat ens t o di st or t compet i t i on by favour i ng cer t ai n under t aki ngs or the pr oducti on of cer t ai n goods shal l, i n so f ar as i t may affect tr ade between an EFTA Stat e and Lit huani a, be i ncompati bl e wi t h t he pr oper functi oni ng of t hi s Agr eement. 2. Any pr act i ces cont r ar y t o par agr aph 1 shoul d be assessed on t he basi s of t he cr i ter ia set out in Annex VI. 3. The Stat es Par ti es t o t his Agr eement shal l ensur e t r anspar ency of st at e ai d measur es by exchangi ng i nf or mat i on as pr ovi ded i n Annex VI I. 4. If a State Par ty to this Agr eement consi der s t hat a gi ven pr act i ce i s incompatible with the provisions of paragr aph 1, i t may t ake appr opr i at e measur es under t he condit i ons and i n accor dance wi t h the pr ocedur es l ai d down i n Ar ti cl e 2 5 (Procedure for the application of safeguar d measur es). Ar t i cl e 1 9 Dumping If an EFTA State f i nds t hat dumpi ng wi t hi n t he meani ng of Ar t i cl e VI of t he Gener al Agreement on Tar i f f s and Tr ade 1994 is taking place in tr ade wi t h Li t huani a, or i f Li thuani a f i nds t hat dumpi ng wi t hi n t hi s meani ng i s t aki ng pl ace i n t r ade wi t h an EFTA St at e, t he St ate Par t y concer ned may t ake appr opr i at e measur es agai nst t hi s pr act i ce in accor dance wi t h t he Agr eement on I mpl ementat i on of Ar t i cl e VI of t he Gener al Agreement on Tar i f f s and Tr ade 1994 and with the pr ocedur e laid down in Ar ticle 25 (Procedure for the application of safeguar d measur es). Ar t i cl e 2 0 Emer gency act i on on i mpor t s of par ti cul ar pr oducts

8 Wher e any pr oduct i s bei ng i mpor t ed i n such incr eased quant i t i es and under such conditi ons as to cause, or thr eat en t o cause: (a)ser ious injury to domest i c pr oducer s of l ike or di r ect l y compet i t i ve pr oduct s i n the ter r itor y of the importing State Par t y t o t hi s Agr eement, or (b)serious disturbances in any r elated sect or of t he economy or di f f i cul t i es whi ch coul d br i ng about ser i ous det er i or at i on i n t he economi c si t uat i on of a r egion, the Stat e Par t y concer ned may t ake appr opr i ate measur es under t he condi t i ons and i n accor dance wi t h t he pr ocedur e l ai d down i n Ar t i cl e 2 5 ( Pr ocedur e f or t he appl i cat i on of saf eguar d measur es). Ar t i cl e 2 1 St r uct ur al adj ust ment 1. Except i onal measur es of li mi t ed dur at i on whi ch der ogat e f r om t he pr ovi si ons of Ar t i cl e 4 ( Customs dut i es on i mpor ts and char ges havi ng equi val ent ef f ect ) may be taken by Li t huani a i n t he f or m of incr eased cust oms duti es. 2. These measur es may onl y concer n i nfant i ndustr i es, or cer t ai n sect or s under goi ng r estr uct ur i ng or f aci ng ser i ous dif f i cul t i es, par t i cular l y wher e t hese di f f icul t i es pr oduce i mpor t ant social pr obl ems. 3. After the intr oduction of these measur es, the total ad val or em customs duti es appl icabl e i n Li t huani a to pr oduct s or i gi nat ing i n t he EFTA St at es may not exceed 2 5 % and shal l mai ntai n an el ement of pr ef er ence for pr oducts or i gi nati ng i n t he EFTA St at es. The total value of imports of the pr oduct s whi ch ar e subj ect t o these measur es may not exceed 1 5 % of t otal i mpor t s of i ndustr i al pr oduct s f r om the EFTA Stat es as def i ned i n Ar t icl e 2 ( a) dur i ng t he l ast year f or whi ch st ati st i cs ar e avai l abl e. 4. These measur es shal l be appl i ed f or a per i od not exceedi ng t hr ee year s unl ess a longer duration i s aut hor i zed by t he Joi nt Commi t t ee. They shal l cease t o appl y at the latest by 31 December 2000 and no such measur es can be i nt r oduced i n r espect of a pr oduct i f mor e t han t hr ee year s have el apsed si nce t he ent r y i nto f or ce of t hi s Agreement or since t he eli mi nat i on of al l duti es and quant i t at i ve r est r i ct ions or char ges or measur es havi ng an equi val ent ef f ect concer ni ng t hat pr oduct, whi chever i s later. 5. Lithuani a shal l i nf or m t he Joi nt Commi t t ee of any except i onal measur es i t intends t o t ake and, at the r equest of t he EFTA St at es, consul t ati ons shal l be hel d in t he Joint Commi ttee on such measur es and t he sector s t o which t hey appl y bef or e t hey ar e appl ied. When t aki ng such measur es Li t huani a shal l pr ovi de t he Joi nt Commit t ee wi t h a schedul e f or t he el i mi nat i on of the cust oms dut i es i nt r oduced under t hi s Ar t i cl e. Thi s schedul e shal l pr ovi de for a phasi ng out of these duti es at equal annual r ates star ting at the latest two year s after their intr oduction. The Joint Commi t tee may deci de on a di f f er ent schedul e. Ar t i cl e 2 2 Re- expor t and ser i ous shor t age Wher e compliance with the pr ovisions of Ar t i cl es 7 ( Cust oms dut i es on expor t s and char ges havi ng equi val ent ef f ect ) and 8 ( Quant i t at i ve r est r i ct i ons on i mpor t s or expor t s and measur es having equi valent ef f ect) l eads t o:

9 (a)re-expor t t owar ds a t hi r d count r y agai nst whi ch t he expor t i ng St at e Par ty t o t hi s Agr eement mai ntai ns for the pr oduct concer ned quant i t ati ve expor t r est r i ct ions, expor t dut i es or measur es or char ges havi ng equi val ent ef f ect ; or (b)a serious shor t age, or t hr eat t her eof, of a pr oduct essent i al t o t he expor t i ng St at e Par ty to this Agr eement ; and wher e t he si t uat i ons r ef er r ed to above give r i se or ar e l i kely t o gi ve r i se t o maj or di f f icul t i es f or t he expor t i ng St ate Par t y, that St at e Par t y may t ake appr opr i at e measur es under t he condi ti ons and in accor dance wi t h t he pr ocedur es l ai d down i n Ar t i cl e 25 ( Procedure for the appl icat i on of saf eguar d measur es). The measur es shal l be non- di scr i minator y and be el i mi nat ed when condi t i ons no l onger j ust i f y thei r mai ntenance. Ar t i cl e 2 3 Bal ance of payment s di f f icul t i es 1. The St at es Par ti es t o t his Agr eement shal l endeavour t o avoi d t he i mposi t i on of restricti ve measur es for bal ance of payments pur poses. 2. Wher e an EFTA St at e or Lit huani a i s i n ser i ous bal ance of payments di f f icul t i es, or under i mmi nent t hr eat t her eof, t he EFTA St at e or Li t huani a, as t he case may be, may, i n accor dance wi t h t he condi t i ons est abl i shed under t he Gener al Agreement on Tar i f f s and Tr ade 1994 and the Under standing on the Balance- of- Payments Pr ovisions of t he General Agr eement on Tariffs and Tr ade 1994, adopt tr ade restricti ve measur es, which shal l be of l i mi ted dur at i on and non- di scr i mi nat or y, and may not go beyond what i s necessar y t o r emedy t he bal ance of payment s si t uat i on. Pr efer ence shall be gi ven t o pr i ce- based measur es whi ch shal l be pr ogr essi vel y relaxed as bal ance of payment s condi t i ons i mpr ove and el i mi nat ed when condit i ons no longer justify their maintenance. The EFTA St ate or Lit huani a, as the case may be, shal l i nfor m the ot her Stat es Par t ies t o t hi s Agr eement and t he Joi nt Commit t ee for thwith, if possi bl e, pr i or t o t hei r i nt r oduct i on and shal l pr ovi de a t i me schedul e f or thei r r emoval. The Joi nt Commi t t ee shal l, upon t he r equest of any ot her St at e Par t y, examine t he need f or mai nt ai ni ng t he measur es t aken. 3. No r estrictive measur es shal l appl y t o t r ansfer s r el at ed t o i nvest ment s and i n par ticul ar to the r epatr iati on of amount s i nvest ed or r ei nvest ed and of any ki nd of revenues st emming t her ef r om. Ar t i cl e 2 4 Ar bi tr at i on Pr ocedur e 1. Disputes bet ween St at es Par t i es t o t his Agreement, r elating to the interpretation of r ight s and obl i gat i ons of the St at es Par t i es t o t hi s Agr eement, which have not been settl ed thr ough consul tati on or i n the Joint Committee within six months, may be r eferred to ar bi t r ati on by any St at e par t y t o t he di sput e by means of a wr itten notification addr essed t o the ot her St at e par t y t o t he disput e. A copy of t hi s noti fi cati on shal l be communi cated to al l St at es Par t i es t o t hi s Agr eement. 2. The constitution and functioning of t he ar bi tr al t r i bunal i s gover ned by Annex VIII. Ar t i cl e 2 5

10 Pr ocedur e f or the appl i cat i on of saf eguar d measur es 1. Before initiating the procedur e f or t he appl icat i on of saf eguar d measur es set out in t he f ol lowi ng par agr aphs of t he pr esent Ar t i cl e, t he St at es Par t i es t o t hi s Agreement shal l endeavour t o sol ve any di f f er ences bet ween t hem thr ough di r ect consul tations, and i nf or m t he ot her St at es Par t i es t o thi s Agr eement t her eof. 2. Without pr ej udice to par agr aph 6 of the pr esent Ar ticle, a St at e Par t y whi ch consider s r esor ti ng to safeguar d measur es shal l pr ompt ly not i f y the ot her St at es Parties and the Joint Commi ttee ther eof and suppl y al l r el evant infor mati on. Consul t ations bet ween t he St at es Par t i es t o thi s Agr eement shal l t ake pl ace wi t hout del ay i n t he Joi nt Commi tt ee wi t h a vi ew t o fi ndi ng a commonl y accept abl e sol ut i on. 3.(a)As r egar ds Ar t i cl es 1 7 ( Rul es of compet it i on concer ni ng under t aki ngs) and 1 8 (State ai d), t he St at es Par t i es concer ned shal l gi ve t o t he Joi nt Commi t t ee al l t he assi st ance r equi r ed i n or der t o exami ne t he case and, wher e appr opr i at e, eli mi nat e t he pr acti ce obj ected t o. I f t he St at e Par t y i n quest i on fai l s t o put an end to t he pr act i ce obj ect ed t o wi thi n t he per i od f i xed by t he Joi nt Commi tt ee or i f t he Joi nt Commi t t ee fails to r each an agr eement after consultations, or after thir ty days following r eferr al for such consultations, the St at e Par t y concer ned may adopt t he appr opr i at e measur es to deal wi t h t he di f f i cult i es r esult i ng f r om t he pr act ice i n quest i on. (b)as r egar ds Ar t i cl es 1 9 ( Dumpi ng), 2 0 ( Emer gency act ion on i mpor t s of par t i cul ar pr oduct s) and 22 ( Re- expor t and ser i ous shor tage), t he Joi nt Commi t t ee shall examine t he case or t he si t uat i on and may t ake any decisi on needed t o put an end t o the di f f icul t i es not i f i ed by t he St at e Par t y concer ned. I n t he absence of such a deci si on within thir ty days of the matter being r efer red to the Joint Committee, the State Party concer ned may adopt t he measur es necessar y i n or der t o r emedy t he si t uat i on. (c)as r egar ds Ar t i cl e 3 1 ( Ful f i l ment of obl i gat i ons), the St at e Par t y concer ned shal l supply the Joi nt Commi ttee wi th al l r el evant i nfor mati on r equi r ed for a thor ough examinat i on of t he si t uati on wi t h a vi ew t o seeki ng a commonl y accept abl e sol ut i on. If the Joint Committee fails to r each such a solution or if a per i od of t hr ee mont hs has el apsed f r om t he dat e of not i f i cat ion, t he Stat e Par t y concer ned may t ake appr opr i at e measur es. 4. The safeguar d measur es t aken shal l be not i f i ed i mmedi atel y t o t he St at es Par ties to this Agr eement and t o t he Joi nt Commi t t ee. They shal l be r est r ict ed wi t h r egar d t o t hei r ext ent and t o t hei r dur at i on t o what i s st r i ct l y necessar y i n or der to rectify the si tuati on gi vi ng r i se to t hei r appl i cat i on and shal l not be i n excess of t he injury caused by t he pr act i ce or t he di f f i cult y i n quest i on. Pr ior i t y shall be gi ven t o such measur es that will least disturb the functioning of this Agreement. The measures taken by Li t huani a agai nst an act i on or an omi ssi on of an EFTA Stat e may onl y af f ect t he tr ade with that Stat e. The measur es t aken agai nst an act i on or omi ssi on of Li t huani a may be onl y t aken by t hat or t hose EFTA St at es t he t r ade of whi ch i s af f ected by t he sai d act i on or omi ssi on. 5. The safeguar d measur es t aken shal l be t he obj ect of r egul ar consul t at i ons within the Joint Committee with a view to their relaxation, substi tution or abol i t i on, when conditions no l onger j usti fy thei r mai ntenance. 6. Wher e except i onal ci r cumst ances r equi r i ng i mmedi at e acti on make pr i or examinat i on i mpossi bl e, the St at e Par t y concer ned may, i n t he cases of Ar t icl es 1 9 (Dumping), 20 (Emergency acti on on i mpor t s of par t i cul ar pr oduct s) and 2 2 ( Reexpor t and ser ious shor t age) and i n cases of st at e ai d havi ng a di r ect and i mmedi at e inci dence on t r ade bet ween t he St ates Par t i es, appl y f or t hwi t h t he pr ecaut ionar y and pr ovisi onal measur es str ictl y necessar y to remedy t he si t uat i on. The measur es shal l

11 be noti fi ed wi thout del ay and consul t at i ons bet ween t he St at es Par t i es t o thi s Agr eement shal l t ake pl ace as soon as possi ble wi t hi n the Joi nt Commi t t ee. Ar t i cl e 2 6 Secur i t y exceptions Not hing i n this Agr eement shal l pr event a St at e Par t y to t hi s Agr eement f r om t aki ng any measur es whi ch i t consi der s necessar y: (a)to prevent the di scl osur e of i nfor mat i on cont r ar y t o i t s essent i al secur i t y interests; (b)for the protect i on of i t s essenti al secur it y i nt er est s or f or t he i mpl ement at i on of internat i onal obl i gat i ons or nat i onal pol i ci es (i)relating to the t r af f i c i n ar ms, ammuni t i on and i mpl ement s of war, pr ovi ded t hat such measur es do not i mpai r t he condi t i ons of compet i t ion i n r espect of pr oduct s not intended f or speci f i cal l y military purposes, and to such traffic in other goods, materi al s and ser vi ces as i s car r i ed on di r ect l y or i ndi r ect l y f or t he pur pose of supplyi ng a mi li tar y establ i shment; or ( ii)relating to the non- pr ol i f er at ion of bi ologi cal and chemi cal weapons, nucl ear weapons or ot her nucl ear expl osi ve devi ces; or ( iii)taken in time of war or other serious international tension. Ar t i cl e 2 7 The Joi nt Committee 1. The implement ati on of t his Agr eement shal l be super vi sed and admini st er ed by a Joint Commi t tee whi ch shal l si mult aneousl y act under t he Decl ar at i on si gned i n Geneva in December For the pur pose of the pr oper i mpl ement at i on of t hi s Agr eement, the St at es Parties to this Agr eement shal l exchange i nf or mat i on and, at t he r equest of any St at e Par ty to this Agr eement, shall hold consultations within the Joint Committee. The Joint Committee shall keep under review the possibility of further removal of the obst acl es t o t r ade bet ween t he EFTA St at es and Li t huania. 3. The Joint Committee may take deci sions in the cases provided for in this Agr eement. On ot her mat ter s t he Joi nt Commi tt ee may make r ecommendati ons. Ar t i cl e 2 8 Pr ocedur es of the Joi nt Commi t t ee 1. For the pr oper i mpl ement at i on of t hi s Agr eement t he Joint Commi t tee shal l meet whenever necessar y but nor mal ly once a year. Each St at e Par t y t o t hi s Agr eement may r equest t hat a meet i ng be hel d. 2. The Joint Committee shal l act by common agr eement. 3. If a r epr esentative in the Joint Committee of a St at e Par t y t o t hi s Agr eement has accepted a deci si on, subj ect t o t he f ul f il ment of const i t ut i onal r equi r ement s, t he

12 deci si on shal l ent er i nt o f or ce, i f no l at er dat e i s cont ai ned t her ei n, on t he dat e the lifting of the r eser vat i on i s not i fi ed. 4. For the pur pose of t hi s Agr eement the Joi nt Commi t t ee shal l adopt i t s r ul es of pr ocedur e which shall, inter alia, cont ai n pr ovisi ons f or conveni ng meet i ngs and f or the designat i on of t he Chai r man and hi s/ her ter m of of fi ce. 5. The Joint Committee may deci de to set up such sub- committees and wor ki ng par ties as i t consi der s necessar y to assi st it i n accompl i shi ng its tasks. Ar t i cl e 2 9 Evol ut i onar y clause 1. The Stat es Par ti es t o t his Agr eement under t ake t o examine, i n l i ght of any relevant factor, the possibility of further developing and deepeni ng t he co- oper at i on under t hi s Agr eement and t o ext end i t t o ar eas not cover ed t her ein. The St at es Par t i es to this Agr eement may instr uct the Joint Committee to examine this possibility and, wher e appr opr i at e, t o make r ecommendat i ons t o t hem, par t i cul ar l y wi t h a vi ew t o opening up negot i at i ons. 2. Agreements resulting from the procedure referred to in paragraph 1 will be subj ect to r atification or appr oval by the Stat es Par t ies t o t hi s Agr eement i n accor dance wi t h t hei r own pr ocedur es. Ar t i cl e 3 0 Ser vices and I nvest ment 1. The Stat es Par ti es t o t his Agr eement r ecogni ze t he gr owi ng i mpor tance of certai n ar eas, such as ser vi ces and i nvest ment s. I n t hei r ef f or ts t o gr adual l y develop and br oaden t hei r co- oper at i on, i n par t i cul ar i n t he cont ext of Eur opean i nt egr at i on, they will co- oper at e wi t h t he ai m of achi evi ng a gr adual l i ber al izat i on and mut ual opening of mar ket s f or i nvest ment s and t r ade i n ser vi ces, t aki ng i nt o account t he results of the Ur uguay Round as well as any r el evant wor k under the auspi ces of t he WTO. They wi l l endeavour t o accor d t o each ot her s' oper at or s t r eat ment no l ess favour abl e t han t hat accor ded t o other f or ei gn oper at or s i n t hei r t er r i t or ies on conditi on that a bal ance of r i ght s and obl i gat i ons as wel l as a bal ance of oper at i ng conditi ons exi st between the St at es Par t i es to t hi s Agr eement. 2. The EFTA States and Li t huani a wi l l di scuss t hi s co- oper at i on i n the Joi nt Committee wi t h t he ai m of devel opi ng and deepeni ng t heir r el at i ons under t hi s Agr eement. Ar t i cl e 3 1 Ful fil ment of obl i gat i ons 1. The Stat es Par ti es t o t his Agr eement shal l t ake al l necessar y measur es t o ensur e t he achievement of t he obj ect i ves of thi s Agr eement and t he f ul f i l ment of t heir obl i gat i ons under t hi s Agr eement. 2. If an EFTA State consi der s t hat Li thuani a has, or i f Li t huani a consi der s t hat an EFTA State has f ai l ed t o f ul f i l an obl i gat i on under t his Agr eement, t he St at e Par t y concer ned may take t he appr opr i at e measur es under t he condi t i ons and i n accor dance

13 with the pr ocedur es l ai d down i n Ar t i cl e 2 5 ( Pr ocedur e f or t he appl i cat i on of safeguar d measur es). Ar t i cl e 3 2 Annexes and Pr ot ocol s The Annexes and the Pr ot ocol s t o t hi s Agr eement ar e an i nt egr al par t of i t. The Joi nt Committee may deci de t o amend t he Annexes and Pr ot ocol s. Ar t i cl e 3 3 Tr ade r el at i ons gover ned by t hi s Agr eement 1. This Agr eement appl i es t o t r ade r elat i ons between, on the one si de, t he indi vi dual EFTA St at es and, on t he ot her si de, Li t huania, but not t o t he t r ade r el at ions between indi vi dual EFTA St at es, except i f ot her wi se pr ovi ded f or i n t hi s Agr eement. 2. The Par t i es t o t he Fr ee Tr ade Agr eement bet ween Nor way and Li t huani a and t o the Fr ee Tr ade Agr eement bet ween Swi t zer l and and Li t huani a agr ee t hat t hese agr eement s wi l l be t er mi nat ed at t he ent r y i nt o f or ce of t hi s Agr eement. Ar t i cl e 3 4 Territorial application Thi s Agr eement shal l apply t o t he ter r i t or i es of t he Stat es Par t ies t o t hi s Agr eement. Ar t i cl e 3 5 Customs uni ons, f r ee t r ade ar eas and f r ont i er t r ade Thi s Agr eement shal l not pr event t he mai nt enance or establ i shment of cust oms uni ons, fr ee t r ade ar eas or ar r angement s f or f r ont i er t r ade t o t he ext ent t hat t hese do not negati vel y af f ect t he t r ade r egi me and, i n par t i cul ar, t he pr ovi si ons concer ni ng r ul es of or i gi n pr ovided f or by t hi s Agr eement. Ar t i cl e 3 6 Amendment s Amendment s t o thi s Agr eement ot her t han t hose r ef er r ed t o i n Ar t icl e 3 2 ( Annexes and Pr otocol s) whi ch ar e appr oved by t he Joi nt Commi t t ee shal l be submi t t ed t o t he St at es Par ties to this Agr eement f or accept ance and shal l ent er i nt o f or ce i f accept ed by all t he St at es Par t i es t o this Agr eement. The i nst r ument s of acceptance shal l be deposi ted with the Depositar y. Ar t i cl e 3 7 Accessi on 1. Any St at e, Member of t he Eur opean Fr ee Tr ade Associ at i on, may accede t o t his Agreement, pr ovi ded t hat t he Joi nt Commi t t ee deci des t o appr ove it s accession, t o be negoti at ed bet ween t he accedi ng St at e and t he St at es Par t i es concer ned, on such t er ms

14 and condi t i ons as may be set out i n t hat decisi on. The i nst r ument of accessi on shal l be deposi t ed wi t h t he Deposit ar y. 2. In r elation to an accedi ng Stat e, t hi s Agr eement shal l ent er i nt o f or ce on t he fir st day of t he t hi r d mont h f ol l owi ng t he deposi t of it s i nst r ument of accessi on. Ar t i cl e 3 8 Wi thdr awal and expi r at i on 1. Each St at e Par ty t o t hi s Agr eement may wi t hdr aw t her ef r om by means of a wr itten noti fication to the Depositary. The wi thdr awal shal l t ake ef f ect si x mont hs af t er t he dat e on whi ch the not i f i cat i on i s r ecei ved by t he Deposi t ar y. 2. If Lithuani a withdr aws, thi s Agr eement shal l expi r e at t he end of t he not i ce period, and i f al l EFTA St at es wi t hdr aw i t shal l expi r e at t he end of t he lat est not ice per i od. 3. Any EFTA Member Stat e which wi t hdr aws f r om t he Convent ion est abl ishi ng t he Eur opean Fr ee Tr ade Associ at i on shal l ipso facto on the same day as t he wi t hdr awal takes effect cease to be a Stat e Par t y t o t his Agr eement. Ar t i cl e 3 9 Entr y into for ce 1. This Agr eement shall enter into force on 1 June 1996 in r elation to those Si gnat or y St at es whi ch by t hen have deposi t ed t hei r i nst r ument s of r at i f i cat i on or accept ance wi t h t he Deposi t ar y, pr ovi ded t hat Li t huani a i s among t he St at es t hat have deposi t ed t hei r i nst r ument s of r at if i cat i on or accept ance. 2. In r elation to a Signat or y St at e deposi t i ng it s i nst r ument of r ati f i cat i on or accept ance after 1 June 1996, this Agr eement shall enter into force on the fir st day of the second month fol l owi ng the deposi t of i t s i nst r ument, pr ovi ded t hat i n r el at i on to Li thuani a t hi s Agr eement ent er s i nto f or ce at t he l at est on t he same dat e. 3. Any Si gnat or y St at e may al r eady at t he t i me of si gnat ur e decl ar e t hat, dur i ng an initial phase, it shall apply this Agreement provisionally, if this Agreement cannot ent er i nto for ce in r elation to that State by 1 June For an EFTA State pr ovisi onal appl i cat i on is onl y possi bl e pr ovi ded t hat i n r el at i on t o Li t huani a t hi s Agr eement has ent er ed i nto f or ce, or t hat Li thuani a i s appl yi ng thi s Agr eement pr ovisi onally. Ar t i cl e 4 0 Deposi t ar y The Gover nment of Nor way, act i ng as Deposi t ar y, shal l not i f y al l St at es t hat have si gned or acceded t o t hi s Agr eement of t he deposi t of any i nst r ument of r ati f i cat i on, or pr ovisi onal appl i cat i on, accept ance or accessi on, as wel l as of the ent r y int o f or ce of this Agr eement, of i t s expi r y or of any wi t hdr awal t her ef r om. IN WITNESS WHEREOF t he under si gned pl eni pot ent i ar i es, bei ng dul y aut hor i zed ther eto, have si gned t he pr esent Agr eement.

15 DONE at Zermatt, this 7th day of December 1995, in authentic copies in the English and Li t huani an l anguages whi ch shall be deposi t ed wi t h t he Gover nment of Nor way. The Deposi t ar y shall transmit certified copies to all Signat or y St at es, and St at es acceding t o this Agr eement. For the Republ ic of Icel and Li thuani a For the Republ ic of For the Pr i nci pal i t y of Li echt enst ei n For the Ki ngdom of Nor way For the Swi ss Conf eder at ion