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Hungary Comprehensive Trade Package

UNITED STATES-HUNGARIAN DISCUSSIONS ON TRADE ISSUES

AGREED MINUTES ON A COMPREHENSIVE TRADE PACKAGE

Note: The U.S. Government pursued the following tariff agreement with the Hungarian Government to provide greater market opportunities for U.S. exporters in the Hungarian market. After May 1, 2004, when Hungary joins the European Union, U.S. exports to Hungary will be charged tariffs according to the European Union's Common External Tariff. Rates below are therefore void; the correct rates can be found at the Trade Information Center's web site: http://www.ita.doc.gov/td/tic/tariff/eu_schedule/index.html

Reference is made to the bilateral talks on economic issues between the delegations of the Government of the Republic of Hungary (Hungary) led by Deputy State Secretary, Dr. Péter Balás, and the Government of the United States of America (United States), led by Assistant United States Trade Representative for Europe and the Mediterranean, Ms. Catherine Novelli, in Washington, D.C., November 28-29, 2001 and subsequent discussions held in Budapest in January 2002.

After extensive discussion of the wide range of bilateral trade issues, both governments have agreed upon the following:

1. Both governments reaffirmed their desire to maintain and expand their bilateral economic ties.

2. Both governments desire to see Hungary continue to participate in the U.S. Generalized System of Preferences (GSP) program. The United States indicated that it supports legislation under consideration in Congress to extend the U.S. GSP program, which expired on September 30, 2001.

3. Both governments agreed to review the tariff differential problem affecting exports of U.S. agricultural and industrial goods to Hungary. As a result of the review through January 2002, the Hungarian government will make, consistent with Hungarian laws, the tariff modifications indicated in the attached schedule, which will enter into force by April 1, 2002.

4. The U.S. government agrees to recognize in future GATT Article XXIV enlargement compensation negotiations following Hungary's accession to the European Community the trade benefits that exporters of US products gain owing to the tariff reductions made by Hungary in accordance with paragraph 3.

5. The United States understands Hungarian interest in the progress of several processes which affect Hungarian exporters, namely the interest of North American Bus Industries (NABI) in marketing its buses in the United States and of meat producers in obtaining permission for imports of fresh meat into the U.S. market. The U.S. government commits to facilitating the progress of these regulatory processes under the existing rules and regulations with the aim of reaching a decision in the case of buses by the end of March 2002, and, in the case of meat products, arriving at a satisfactory outcome by the end of June, 2002. In the absence of such outcomes, the two sides will consult expeditiously in order to review the situation.

6. The U.S. government, consistent with U.S. laws, will support the continuation of Hungary's participation in the U.S. GSP program for agricultural and industrial goods until Hungary becomes a member of the EU. The U.S. and Hungarian governments agreed to consult regarding any petitions connected with Hungary's GSP eligibility.

7. The U.S. government will give positive consideration to all Hungarian product petitions relevant to the GSP program under its existing rules and regulations, a process that will begin with the next annual product review following reauthorization of the GSP program.

These minutes concerning the comprehensive trade package are agreed to by the representatives of the Government of Hungary and the United States on this 30th day of January, 2002 and will come into force following an exchange of diplomatic notes.

FOR THE DELEGATION OF

THE REPUBLIC OF HUNGARY

___________________________

Dr. Istvan Major

Deputy State Secretary FOR THE DELEGATION OF THE

UNITED STATES OF AMERICA

___________________________

Ms. Lisa Errion

USTR Director for Central Europe

--------------------------------------------------------------------------------

REDUCED MFN TARIFFS APPLICABLE AS OF APRIL 1, 2002

HU MFN Rate Applied MFN/EUCXT

["Common External Tariff"]

rate

Agricultural Products

0511.1000 Bovine semen 18.0 0*

0802.11.9000 Unshelled almonds 6.2 5.6

0808.12.9000 Shelled almonds 6.2 3.5

0802.90.2000 Pecans, Hickory Nuts 0

0805.4000 Grapefruit 28.8 2.4*

Industrial Products

Perfumery and Cosmetics

3304.20 Mascara and Eyeshadow 15 0

3304.30 Manicure and Pedicure Products 15 0

3304.91 Powders/Compressed 15 0

3304.99 Other types of beauty/skin preparations 15 0

3307.10 Shaving Preparations/Creams 15 6.5

3307.20 Personal Deoderants/Antiperspirants 15 6.5

Chemicals

3808.10.3000 Insecticides based on carbamates 8.5 6

3808.20.1500 Inorganic fungicides, not based on copper compounds 8.5 6

3808.30.1500 Herbicides, based on amides 8.5 6

3808.30.2700 Herbicides, antisprouting products and plant growth; other 8.5 6

3808.30.3000 Antisprouting products 8.5 6

3808.40.1000 Disinfectants based on quaternary ammonium salts 8.5 6

3808.40.9000 Disinfectants, other 8.5 6

3808.90.9000 Other Insecticides; not for rodents 8.5 6

3822.00.0001 Carriers made of polycondensed or polyadditive resin 7 0

3822.00.0002 Carriers made of hardened protein, ether resin or rubber derivatives 8 0

3822.00.0003 Other plastic carriers 6 0

3822.00.0004 Carriers that do not comply with conditions at head of ch. 39 18 0

3822.00.0005 Carriers made of paper 8 0

3822.00.0099 Other 4.5 0

3824.90.3000 Alkaline iron oxide for the purification of gas 6 5

3824.90.9904 Other products and preparations for pharmaceutical or surgical use 7 6

Plastics

3920.62.1100 Polyethylene terephthalate film, of a thickness of 72 micrometers or more but not exceeding 79 micrometres, for the manufacture of flexible magnetic disks 7 0

3920.62.1300 Polyethylene terephthalate film, of a thickness of 100 micrometers or more but not exceeding 150 micrometres, for the manufacture of photopolymer plates 7 0

3920.72.0000 Of vulcanized fibre 6 5.7

3920.91.0000 Of poly(vinyl butyral) 10 7.7

3920.94.0000 Of phenolic resins 7 6.5

3920.99.2100 Polyimide sheet and strip, uncoated, or coated or covered solely with plastic 6 0

3920.99.5100 Poly(vinyl flouride) sheet 6 0

3920.99.5300 Ion-exchange membranes of flourinated plastic material, for use in chlor-alkali electrolytic cells 6 0

3920.99.5500 Biaxially-oriented poly(vinyl alcohol) film, containing by weight 97% of more of poly(vinyl alcohol), uncoated, of a thickness not exceeding 1 mm 6 0

3920.99.5901 Of other plastics; other 8 7.7

Steam Turbines

8406.81.1099 Steam turbines for electricity generation with output exceeding 40 MW/other than without built-in furnace 11 2.7

8406.82.9099 Steam turbines for electricity generation with output not exceeding 40 MW/other than without built-in furnace 11 2.7

8406.90.9099 Parts, other; other than without built-in furnace 11 2.7

8411 Gas Turbines 8.9 4.1 to 0

8471 Automated data processing (ADP) machines 5 0

8473 Office Machine Parts 5 0

Electrical Apparatus for Line Telephony or Telegraphy

8517.50.9000 Other, not for carrier-current line systems 10 0

Recorded Media

8524.31 Laser Disks for reproduction phenomena other than sound or image 5 0

8703.23.19.06 Pass. Vehicles (>2000 ccs) 43 23 **

8703.24.10.02 Pass. Vehicles (>3000 ccs) 43 23 **

Auto and Tractor Parts

8708.99.1100 Airbags with Inflator system 6 3

8798.99.1900 Airbags, other 6 3

8708.99.9200 Other auto and tractor parts of closed-die forged steel 6 4.5

8708.99.9800 Other auto and tractor parts 6 3.5

Medical Equipment

9018.13 Magnetic Resonance Imaging Equipment 4 0

9018.19.1000 Monitoring apparatus for simultaneous monitoring of two or more parameters 4 0

9018.19.9000 Other products and preparations for pharmaceutical or surgical use 4 0

9018.31.1000 Syringes, of plastic 4 0

9018.32.9000 Needles for sutures 4 0

9018.41.0000 Dentral drill engines, whether or not combined on a single base with outher dental equipment 4 0

9018.49.1000 Burrs, discs, drills and brushes, for use in dental drills 4 0

9018.49.9001 Other instruments and appliacnes, used in dental sciences 5 0

9018.50.1000 Other ophthalmic instruments and applainces/non-optical 4 0

9018.90.4900 Diathermic apparatus; other than ultrasonic 3 0

9018.90.5000 Transfusion apparatus 3 0

9018.90.6000 Anaesthetic apparatus and instruments 3 0

Instruments: Oscilloscopes, Spectrum Analyzers

9030.10.9000 Instruments and apparatus for measuring or detecting ionising radiations; not for use in civil aircraft 8 4.2

9030.20.9000 Cathode-ray oscilloscopes and cathode-ray oscillographs; not for use in civil aircraft 8 4.2

9030.31.1000 Multimeters; for use in civil aircraft 8 0

9030.39.1000 Other; for use in civil aircraft 8 0

9030.39.3000 Other; not for use in civil aviation; electronic 8 4.2

9030.40.9000 Other instruments and apparatus, specially designed for telecom (cross-talk meters, gain measuring instruments, distortion factor meters, psophometers; not for use in civil aviation 8 0

9030.89.9900 Other instruments; not for use in civil aircraft; other than electronic 8 2.1

9030.90.1000 Parts and accessories; for use in civil aircraft 7.5 0

9030.90.2000 Parts and accessories; for apparatus in subheading 9030.82.00 7.5 0

*Within an annual tariff rate quota - 200 tons for grapefruit, 165, 000 doses for bovine semen

**Rate would go to 23 percent. [European Union CXT rate is 10 percent]


TANC offers these agreements electronically as a public service for general reference. Every effort has been made to ensure that the text presented is complete and accurate. However, copies needed for legal purposes should be obtained from official archives maintained by the appropriate agency.