The 2005 Prague Agreement is a free trade agreement between the Baltic Union and the New Germanic Empire that was signed 31 March 2005 in the city of Prague. It is an extensive free trade agreement that guarantees almost complete freedom of goods, services, persons and capital. It also deals with competition and government subsidies and prohibits any kind of discrimination based on nationality except when it is specially provided for by the agreement. A notable exception to the free trade agreement is the special status of the arms industry. Any weapons of military technology transference have to be aproved by both governments. In addition to free trade, the agreement also provides a framework for increased cooperation between the nations regarding all the common interests of the nations.