. /.WORLD TRADE
ORGANIZATIONWT/REG128/4
3 November 2003
(03-5836)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN HUNGARY AND ESTONIA
Questions and Replies
This document reproduces the questions addressed to the Parties and the responses submitted.
The questions and replies set out below are organized in accordance with document WT/REG128/3.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
3. Scope
In addition to the tariff differential and/ or enhanced services commitments created by
the elimination of duties in the context of the FTA, does the Agreement have other provisions
that affect the comparative economic market access opportunity of countries that are not
parties to the Agreement?
The provisions of the Free Trade Agreement (FTA) between the Republic of Hungary and the
Republic of Estonia are applied to substantially all trade between the contracting parties. The
Agreement does not contain any specific provision that could affect third countries’ market access
opportunities.
II. TRADE PROVISIONS
1. Import Restrictions
1.1 Duties and Charges
Please describe the transitional period – when and how tariffs will be eliminated for
substantially all trade.
Customs duties on imports of industrial produ cts and all charges having equivalent effect
were abolished between the parties of the FTA with the entry into force of the Agreement except for
products listed in Annex II. Annex II lists produc ts where Hungary applied customs duties on imports
to products originating in Estonia that were reduced progressively at the following pace:
on 1 January 1999 - to 30 % of the basic duty
on 1 January 2000 - to 15 % of the basic duty
on 1 January 2001 - to 0 % of the basic duty
(the basic duty is the MFN rate of duty in force on 1 January 1998)WT/REG128/4
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Concerning customs duties on agricultural products no customs duties were to be applied in
Estonia to products originating in Hungary from the date the FTA entered into force (provisional
application 1 January 1999). Hungary granted preferential treatment to agricultural products
originating in Estonia as listed in Annex V starting from the same date. It means that 98,7 % of
imports from Estonia to Hungary and 100 % of imports from Hungary to Estonia were subject to “0”duty in 2001.
7. Subsidies and State-aid
7.2 State Monopolies
Article 18 required adjustments in state monopolies before 1 July 1999. What
monopolies were affected and what adjustments were made?
Neither in Hungary nor in Estonia such monopolies existed.
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