ADDITIONAL PROTOCOL NO. 3 TO THE FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF HUNGARY AND THE REPUBLIC OF LATVIA

Representatives of the Republic of Hungary and the Republic of Latvia (hereinafter called the Parties);

Reaffirming their commitment to the principles of a market economy, which constitutes the basis for their relations,

Recalling their intention to eliminate progressively the obstacles to substantially all their mutual trade,

In accordance with the provisions of Articles 11 and 37 of the Free Trade Agreement between the Republic of Hungary and the Republic of Latvia,

Have decided as follows:

Article 1

Annexes A and B to the Protocol 2 of the Free Trade Agreement between the Republic of Hungary and the Republic of Latvia shall be replaced by Annexes A and B appearing in the Annex to this Additional Protocol No. 3.

Article 2

This Additional Protocol No 3 shall constitute an integral part of the Free Trade Agreement between the Republic of Hungary and the Republic of Latvia.

Article 3

This Additional Protocol No.3 shall enter into force on the first day of the second month following the receipt of the latter diplomatic note confirming that the internal legal requirements for the entry into force of this Additional Protocol No.3 have been fulfilled.

Done at Budapest this 30 day of May.2003 in two originals, each in English language, both texts being equally authentic.

Annex A

LIST OF PRODUCTS

Referred to in Article 1 of Protocol 2

(Export of Latvia to Hungary)

1) Latvia is bound within the framework of the WTO not to grant any export subsidies.

2) For the diabetic version of products 0% tariff rate in the framework of tariff quota is applied

3) Notwithstanding the rules for the interpretation of the Combined Nomenclature, the preferential scheme being determined, within the context of this annex, by the coverage of the CN code. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.

Annex B

LIST OF PRODUCTS

referred to in Article 2 of Protocol 2

(Export of Hungary to Latvia)

1)This concession is only applicable to products non-benefiting from any kind of export subsidies.

2) Hungary is bound within the framework of the WTO not to grant any export subsidies

3) Except CN codes when the MFN duty rate is 0,5% or 0%

4) Notwithstanding the rules for the interpretation of the Combined Nomenclature, the preferential scheme being determined, within the context of this annex, by the coverage of the CN code. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.