Article 24.
1. The fishery products originating in Slovenia listed in Annex VIII(a) shall be subject from the date of entry into force of this Agreement to the reduced customs duties provided for in that Annex. The provisions of Articles 21 and 22 shall apply mutatis mutandis to fishery products.
2. The fishery products originating in the Community listed in Annex VIII(b) shall be subject from the date of entry into force of this Agreement to the reduced customs duties provided for in that Annex. The provisions of Articles 21 and 22 shall apply mutatis mutandis to fishery products.
Chapter IV. COMMON PROVISIONS
Article 25.
The provisions of this Chapter shall apply to trade in all products between the two parties except where otherwise provided herein or in Protocols 1, 2 and 3.
Article 26. Standstill
1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in trade between the Community and Slovenia from the date of entry into force of this Agreement.
2. No new quantitative restriction on imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in trade between the Community and Slovenia from the date of entry into force of this Agreement.
3. Without prejudice to the concessions granted under Article 21, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuit of the respective agricultural policies of Slovenia and the Community or the taking of any measures under those policies in so far as the import regime in the Annexes VI and VII is not affected.
Article 27. Prohibition of Fiscal Discrimination
1. The parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one party and like products originating in the territory of the other party.
2. Products exported to the territory of one of the two parties may not benefit from repayment of internal indirect taxation in excess of the amount of indirect taxation imposed on them.
Article 28. Customs Unions, Free Trade Areas, Cross-border Arrangements
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement. This Agreement shall in particular not affect the implementation of the specific arrangements governing the movement of goods laid down in frontier agreements previously concluded between one or more Member States and the Socialist Federal Republic of Yugoslavia and succeeded to by the Republic of Slovenia.
2. Consultations between the parties shall take place within the Association Council concerning agreements establishing such customs unions or free trade areas and, where requested, on other major issues related to their respective trade policies towards third countries. In particular in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account is taken of the mutual interests of the Community and Slovenia stated in this Agreement.
Article 29. Exceptional Tariff Measures
Exceptional measures of limited duration which derogate from the provisions of Article 11 and Article 26(1) may be taken by Slovenia in the form of increased customs duties.
These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce major social problems.
Customs duties introduced by these measures on imports into Slovenia of products originating in the Community may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products which are subject to these measures may not exceed 15 % of total imports from the Community of industrial products as defined in Chapter I, during the last year for which statistics are available.
The measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Association Council. They shall cease to apply at the latest on the expiry of the transitional period.
No such measures may be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having equivalent effect concerning that product.
Slovenia shall inform the Association Council of any exceptional measures it intends to adopt and, at the request of the Community, consultations shall be held in the Association Council on such measures and the sectors to which they apply before they are put into effect. When adopting such measures Slovenia shall provide the Association Council 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 at equal annual rates starting at the latest two years after their introduction. The Association Council may decide on a different schedule.
Article 30. Dumping
If one of the parties finds that dumping is taking place in trade with the other party within the meaning of Article VI of the GATT 1994, it may take appropriate measures against this practice in accordance with the Agreement on implementation of Article VI of the GATT 1994, its own related internal legislation and the conditions and procedures laid down in Article 34.
Article 31. General Safeguard Clause
When any product is being imported in such increased quantities and under such conditions as cause or threaten to cause:
- serious injury to domestic producers of like or directly competing products in the territory of one of the parties, or
- serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region,
the Community or Slovenia, whichever is concerned, may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34.
Article 32. Shortage Clause
Where compliance with Articles 14 and 26 leads to
- re-export to a third country of a product in respect of which the exporting party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect,
or
- a serious shortage, or threat thereof, of a product essential to the exporting party,
and where the situations described above 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 34. The measures shall be non-discriminatory and shall be abolished when conditions no longer justify their maintenance.
Article 33. State Monopolies
The Member States and Slovenia shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fourth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of Slovenia. The Association Council shall be informed about the measures adopted to attain this objective.
Article 34. Procedures
1. In the event of the Community or Slovenia subjecting imports of products liable to give rise to the difficulties referred to in Article 31 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.
2. In the cases specified in Articles 30, 31 and 32, before taking the measures provided for therein or, in cases to which paragraph 3(d) applies, as soon as possible, the Community or Slovenia, as the case may be, shall supply the Association Council with all relevant information, with a view to seeking a solution acceptable to the two parties.
In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement.
The safeguard measures shall be notified immediately to the Association Council and shall be the subject of periodic consultations within that body, notably with a view to establishing a timetable for their abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply.
(a) As regards Article 31, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Association Council, which may take any decision needed to put an end to such difficulties.
If the Association Council or the exporting party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within thirty days of the matter being referred, the importing party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen.
(b) As regards Article 30, the Association Council shall be informed of the instance of dumping as soon as the authorities of the importing party have initiated an investigation. Where no end has been put to the dumping within the meaning of Article VI of the GATT 1994 or no other satisfactory solution has been reached within thirty days of the matter being referred to the Association Council, the importing party may adopt the appropriate measures.
(c) As regards Article 32, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Council.
The Association Council may take any decision needed to put an end to the difficulties. If it has not taken such a decision within thirty days of the matter being referred to it, the exporting party may apply appropriate measures to the export of the product concerned.
(d) Where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Slovenia whichever is concerned may, in the situations specified in Articles 30, 31 and 32, apply forthwith the safeguard measures strictly necessary to deal with the situation and inform the Association Council immediately.
Article 35.
Protocol 4 lays down rules of origin for the application of tariff preferences provided for in this Agreement.
Article 36. Restrictions Authorised
This Agreement shall not preclude prohibitions or restrictions on imports, exports or 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 exhaustible natural resources; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property, or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the parties.
Article 37.
The application of this Agreement shall be without prejudice to Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands.
Title IV. MOVEMENT OF WORKERS, ESTABLISHMENT, SUPPLY OF SERVICES
Chapter I. MOVEMENT OF WORKERS
Article 38.
1. Subject to the conditions and modalities applicable in each Member State:
- treatment accorded to workers of Slovenian nationality, legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals;
- the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers coming under bilateral agreements within the meaning of Article 42, unless otherwise provided by such agreements, shall have access to the labour market of that Member State, during the period of that worker's authorised stay of employment.
2. Slovenia shall, subject to the conditions and modalities applicable in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in the said territory.
Article 39.
1. With a view to coordinating social security systems for workers of Slovenian nationality legally employed in the territory of a Member State and for the members of their family, legally resident there, and subject to the conditions and modalities applicable in each Member State:
- all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members;
- any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States;
- the workers in question shall receive family allowances for the members of their family as defined above.
2. Slovenia shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in the second and third indents of paragraph 1.
Article 40.
1. The Association Council shall by decision adopt the appropriate provisions to give effect to the objectives set out in Article 39.
2. The Association Council shall by decision adopt detailed rules for administrative cooperation providing the necessary management and control guarantees for the application of the provisions referred to in paragraph 1.
Article 41.
The provisions adopted by the Association Council in accordance with Article 40 shall not affect any rights or obligations arising from bilateral agreements linking Slovenia and the Member States where those agreements provide for more favourable treatment of nationals of Slovenia or of the Member States.
Article 42.
1. Taking into account the labour market situation in the Member States, subject to their legislation and to compliance with rules in force in those Member States in the area of mobility of workers:
- the existing facilities for access to employment for Slovenian workers accorded by Member States under bilateral agreements should be preserved and if possible improved;
- the other Member States shall consider the possibility of concluding similar agreements.
2. The Association Council shall examine the granting of other improvements, including facilities for access to vocational training, in accordance with rules and procedures in force in the Member States, and taking account of the labour market situation in the Member States and in the Community.
Article 43.
During the second stage referred to in Article 3, or earlier if so decided, the Association Council shall examine further ways of improving the movement of workers, taking into account inter alia the social and economic situation in Slovenia and the employment situation in the Community. The Association Council shall make appropriate recommendations.
Article 44.
In the interest of facilitating the redeployment of labour resources resulting from economic restructuring in Slovenia, the Community shall provide technical assistance for the establishment of a suitable social security system in Slovenia as set out in Article 89.
Chapter II. ESTABLISHMENT
Article 45.
1. Slovenia shall, during the transitional period referred to in Article 3, facilitate the setting-up of operations on its territory by Community companies and nationals. To that end, it shall grant, from the entry into force of this Agreement:
(i) as regards the establishment of Community companies treatment no less favourable than that accorded to its own companies or to any third country company, whichever is the better, save for the sectors referred to in Annex IX(a), where such treatment shall be granted at the latest by the end of the transitional period referred to in Article 3 and;
(ii) as regards the operation of subsidiaries and branches of Community companies in Slovenia, once established, treatment no less favourable than that accorded to its own companies and branches or to any Slovenian subsidiary and branch of any third country company, whichever is the better.
2. Slovenia shall not, during the transitional periods referred to in paragraph 1, adopt any new regulations or measures which introduce discrimination as regards the establishment of Community companies or nationals on its territory or in respect of their operation, once established, by comparison with its own companies and nationals.
3. The Community and its Member States shall grant, from the entry into force of this Agreement:
- as regards the establishment of Slovenian companies, treatment no less favourable than that accorded by Member States to their own companies or to any company of any third country, whichever is the better;
- as regards the operation of subsidiaries and branches of Slovenian companies, established in their territory, treatment no less favourable than that accorded by Member States to their own companies and branches, or to any subsidiary and branch of any third country company, established in their territory, whichever is the better.
4. The treatment described in paragraphs 1 and 3 shall be applicable for the establishment and operation of nationals as from the end of the transitional period referred to in Article 3.
5. The provisions concerning national treatment for the establishment and operation of Community companies and nationals contained in paragraph 1 of this Article shall not apply to the areas or matters listed in Annex IX(b).
6. The Association Council shall during the transitional period referred to in paragraph 1 (i) examine regularly the possibility of accelerating the granting of national treatment in the sectors referred to in Annex IX(a) and the inclusion of areas or matters listed in Annex IX(b) within the scope of the provisions of paragraphs 1 and 3 of this Article. Amendments may be made to these Annexes by decision of the Association Council.
Following the expiry of the transitional period referred to in paragraph 1(i), the Association Council may exceptionally, at the request of Slovenia, and if the necessity arises, decide to prolong the duration of exclusion of certain areas or matters listed in Annex IX(a) for a limited period of time.
7. Notwithstanding the provisions of this Article:
(a) Community nationals and subsidiaries and branches of Community companies shall have, from the entry into force of this Agreement, the right to use and rent real property in Slovenia;
(b) subsidiaries of Community companies shall also have the right to acquire and sell real property and, as regards natural resources, agricultural land and forestry, the same rights as enjoyed by Slovenian nationals and companies, where these rights are necessary for the conduct of the economic activities for which they are established;
(c) Slovenia shall grant the rights under (b) to Community nationals and branches of Community companies by the end of the first stage of the transitional period.
Article 46.
1. The provisions of this Chapter shall not apply to air transport services, inland waterway transport services and maritime cabotage transport services.
2. The Association Council may make recommendations for improving establishment and operations in the areas covered by paragraph 1.
Article 47.
For the purposes of this Agreement:
(a) a 'Community company` or a 'Slovenian company` respectively shall mean a company set up in accordance with the laws of a Member State or of Slovenia respectively and having its registered office or central administration or principal place of business in the territory of the Community or Slovenia respectively.
However, should the company, set up in accordance with the laws of a Member State or Slovenia respectively, have only its registered office in the territory of the Community or Slovenia respectively, the company shall be considered a Community or a Slovenian company respectively if its operations possess a real and continuous link with the economy of one of the Member States or Slovenia respectively;
(b) 'Subsidiary` of a company shall mean a company which is effectively controlled by the first company;
(c) 'Branch` of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;
(d) 'Establishment` shall mean:
(i) as regards nationals, the right to take up economic activities as self-employed persons, and to set up undertakings, in particular companies, which they effectively control. Self-employment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market or confer a right of access to the labour market of another party. The provisions of this Chapter do not apply to those who are not exclusively self-employed;
(ii) as regards Community or Slovenian companies, the right to take up economic activities by means of the setting up of subsidiaries and branches in Slovenia or in the Community respectively;
(e) 'Operations` shall mean the pursuit of economic activities;
(f) 'Economic activities` shall in principle include activities of an industrial, commercial and professional character and activities of craftsmen;
(g) 'Community national` and 'Slovenian national` shall mean respectively a natural person who is a national of one of the Member States or of Slovenia;
(h) with regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of Slovenia established outside the Community or Slovenia respectively, and shipping companies established outside the Community or Slovenia and controlled by nationals of a Member State or Slovenian nationals respectively, shall also be beneficiaries of the provisions of this Chapter and Chapter III, if their vessels are registered in that Member State or in Slovenia respectively, in accordance with their respective legislation;
(i) 'Financial services` shall mean those activities described in Annex IX(c). The Association Council may extend or modify the scope of that Annex.
Article 48.
1. Subject to the provisions of Article 45, with the exception of financial services described in Annex IX(c), each party may regulate the establishment and operation of companies and nationals on its territory, in so far as these regulations do not discriminate against companies and nationals of the other party in comparison with its own companies and nationals.
2. In respect of financial services, notwithstanding any other provisions of this Agreement, a party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owned by a financial service supplier, or to ensure the integrity and stability of the financial system. Such measures shall not be used as a means of avoiding the party's obligations under the Agreement.
3. Nothing in the Agreement shall be construed to require a party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.
Article 49.
1. The provisions of Articles 45 and 48 do not preclude the application by a party of particular rules concerning the establishment and operation in its territory of branches of companies of another party not incorporated in the territory of the first party, which are justified by legal or technical differences between such branches as compared to branches of companies incorporated in its territory or, as regards financial services, for prudential reasons.
2. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences or, as regards financial services, for prudential reasons.
Article 50.
1. A Community company or a Slovenian company established in the territory of Slovenia or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of Slovenia and the Community respectively, employees who are nationals of the Community Member States and Slovenia respectively, provided that such employees are key personnel as defined in paragraph 2 and that they are employed exclusively by companies, subsidiaries or branches.
The residence and work permits of such employees shall only cover the period of such employment.
2. Key personnel of the abovementioned companies herein referred to as 'organisations` are 'intra-corporate transferees` as defined in (c) of this paragraph in the following categories, provided that the organisation is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement:
(a) Persons working in a senior position with an organisation, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent including:
- directing the establishment of a department or sub-division of the establishment;
- supervising and controlling the work of other supervisory, professional or managerial employees;
- having the authority personally to recruit and dismiss or recommend recruiting, dismissing or other personnel actions;
(b) Persons working within an organisation who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession;
(c) An 'intra-corporate transferee` is defined as a natural person working within an organisation in the territory of a party, and being temporarily transferred in the context of pursuit of economic activities in the territory of the other party; the organisation concerned must have its principal place of business in the territory of a party and the transfer be to an establishment (branch, subsidiary) of that organisation, effectively pursuing like economic activities in the territory of the other party.
3. The entry into and the temporary presence within the territory if the Community or Slovenia of Slovenian and Community nationals respectively shall be permitted, when these representatives of companies are persons working in a senior position, as defined in paragraph 2(a) above, within a company, and are responsible for the setting up of a Community subsidiary or branch of a Slovenian company or of a Slovenian subsidiary or branch of a Community company in a Community Member State or Slovenia respectively, when:
- those representatives are not engaged in making direct sales or supplying services, and
- the company has its principal place of business outside the Community or Slovenia, respectively, and has no other representative, office, branch or subsidiary in that Community Member State or Slovenia respectively.
Article 51.
In order to make it easier for Community nationals and Slovenian nationals to take up and pursue regulated professional activities in Slovenia and the Community respectively, the Association Council shall examine which steps are necessary for the mutual recognition of qualifications. It may take all necessary measures to that end.
Article 52.
During the first four years following the date of entry into force of this Agreement, or for the sectors referred to in Annex IX(a), during the transitional period referred to in Article 3, Slovenia may introduce measures which derogate from the provisions of this Chapter as regards the establishment of Community companies and nationals of certain industries:
- are undergoing restructuring, or
- are facing serious difficulties, particularly where these entail serious social problems in Slovenia, or
- face the elimination or a drastic reduction of the total market share held by Slovenian companies or nationals in a given sector or industry in Slovenia, or
- are newly emerging industries in Slovenia.
Such measures:
(i) shall cease to apply at the latest two years after the expiry of the fourth year following the date of entry into force of this Agreement or, for the sectors included in Annex IX(a), upon the expiry of the transitional period referred to in Article 3, and
(ii) shall be reasonable and necessary in order to remedy the situation, and
(iii) shall relate only to establishments in Slovenia to be set up after the entry into force of such measures and shall not introduce discrimination concerning the activities of Community companies or nationals already established in Slovenia at the time of introduction of a given measure, by comparison with Slovenian companies or nationals.
The Association Council may exceptionally, at the request of Slovenia, and if the necessity arises, decide to prolong the periods referred to in (i) above for a given sector for a limited period of time.