1997

T h i r t y- s e v e n t h An n e a l R e p o r t OP T h e E u r o p e a n F r e e T r a d e As s o c ia t io n

April 1998 T h ir t y - s e v e n t h A n n u a l R e p o r t o f iT h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

Editor: Nikulas Hannigan Assistant editor: Camilla Blom EFTA Rue de Treves 74 1040 Brussels

Design and production by Tuuli Sauren INSPIRIT International Advertising, Brussels

Printed by Edition Imprimerie S.A., Brussels ■ //

rC - T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n FOREWORD

Last year we took time out from our ordinary tasks to look at what EFTA am ounts to in world terms. The figures provide support for our belief that EFTA is a grouping which makes polit­ ical and economic sense - four countries which have a lot in common and much to offer to present and future free trade and cooperation partners.

The combined GNP of the four EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) is $454 billion (1996), a figure which ranks EFTA above Australia or Mexico, and not very far behind Canada. In terms of GNP per capita (1995) the EFTA countries rank in the first six, led by Switzerland in first position.

The EFTA countries also have good trade credentials. Their trade is worth $247 billion, or just over 3% of world trade - considerable for countries with a combined population of just under 12 million. We are the EU’s second largest trading partner after the USA. Indeed, trade is vital to our countries, illustrated by the fact that exports per capita put Switzerland, Norway and Iceland in the top five exporting economies, only behind Singapore and Hong Kong.

The EFTA countries are strong, stable economies with low inflation, low unemployment and low government debts. They are major inward investors into other economies as well as being rich markets. EFTA is justified in its confidence that it can play a meaningful role in world trade.

EFTA activities in recent years are illustrative of the Association’s role in action. By the end of 1997 we had established the second widest network of free trade agreements, comprising thirteen non-EU countries.

Our oldest partners in the Mediterranean region are Israel and Turkey. And our network continues to expand in this area, as we have broadened our activities in line with the EU’s Euromed policy. We signed our newest free trade agreement with Morocco in June of 1997. We have declarations on co-operation with Tunisia, Egypt and the Palestinian Authority, and most recently, with Jordan and Lebanon, and we are holding discussions with Cyprus and Malta.

We have continued to look outside Europe. When Prime Minister Chretien of Canada announced in October 1997 that he would like to see a free trade agreement with EFTA, the EFTA countries rapidly reciprocated the interest. As a result exploratory talks are beginning in the spring of 1998. Our biggest trading partner remains the EU. While Switzerland’s relations are based on a bilateral free trade agreement, Iceland, Liechtenstein and Norway participate with the EU States in the internal market through the Agreement on a European Economic Area (EEA). The management of the EEA Agreement continued to run smoothly. The EEA Joint Committee incorporated 146 acts, including five programmes, into the Agreement. The analysis of this legis­ lation and preparation of these decisions represents a considerable amount of work in the Secretariat, by experts in the EEA EFTA capitals and, of course, by the responsible service of the European Commission.

The EEA EFTA States, supported by the Secretariat, are now involved in the work of about 300 EU committees preparing policy and legislation. We also take part in 23 EU programmes on a wide variety of subjects.

As might be expected, the major preoccupations of our EU partners very often become our own preoccupations. This has certainly proven true of the revision of the Treaties, finalised in the Amsterdam Treaty, and of enlargement of the EU. The Secretariat prepared papers analysing the Commission’s Agenda 2000, its blueprint for the enlargement process, and the Amsterdam Treaty. Both papers were delivered to the EFTA States by the end of the year as contributions to further work on these important matters.

Enlargement will have a profound impact on the European Union, and the implementation of the enlargement strategy will set its imprint on the workings of the entire EU system in the years to come. The impact on the EEA EFTA States will also be profound, as new members of the EU will inevitably become members of the EEA Agreement. Switzerland will be considerably affected too, both through its free trade agreement with the EU and through the agreements which all the EFTA States have with the accession countries. The EFTA States will look for a close dialogue with the EU and candidate countries on the enlargement process and expect to use 1998 to find practical arrangements for such a dialogue.

Kjartan Johannsson Secretary-General T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F re e T r a d e A s s o c ia t io n TABLE OF CONTENTS

FOREWORD......

THE EFTA MEMBER STATES:

I c e l a n d ......

L i echtenstein ......

N o r w a y ......

S w it z e r l a n d ......

I NTRODUCTION ...... 12

EFTA HISTORY AT A GLANCE ...... 12

T HE STRUCTURE OF EFTA UNDER THE EFTA COUNCIL ...... 14

T HE STRUCTURE OF EFTA FOR MATTERS RELATED TO

THE EEA AGREEMENT ...... 17

A CTIVITIES UNDER THE EFTA CO UNCIL ...... 18

T HIRD-COUNTRY RELATIONS ...... 18

B a c k g r o u n d ...... 19

S it u a t io n at t h e b e g in n in g o f 1 9 9 7 ...... 19

EFTA’s g r o w in g n e t w o r k o f a g r e e m e n t s in t h e M editerranean ...... 19

Free trade agreement signed with M o r o c c o ...... 2 0

D eclarations on co -operation signed w ith Jordan an d Le b a n o n ...... 2 0

Further work in the M editerranean r e g io n ...... 2 0

C o - o pe r a t io n w it h c o u n t r ie s a n d g r o u p in g s b e y o n d

THE IMMEDIATE CONFINES OF EUROPE...... 21

Ca n a d a ...... 21

T he G ulf Co -operation C ouncil (gcc) ...... 21

A SEAN ...... 21

M ercosur a n d So uth A fr ic a ...... 21

M a n a g e m e n t o f e x is t in g free t r a d e a g r e e m e n t s ...... 23

Customs matters and origin r u l es...... 2 3

P rocessed agricultural g o o d s ...... 23

Services, investment a n d establishment...... 2 4

Intellectual property...... 2 4

Public procurement...... 2 5

T echnical regulations...... 2 5

State a i d ...... 2 6

A rbitration...... 2 6

T e c h n ic a l a ssist a n c e f o r n o n -E U c o u n t r i e s ...... 2 7

Joint EFTA-EU proiects...... 2 7

EFTA trade- policy pro iects...... 2 9

EFTA scholarship progr am m e...... 2 9 T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

COMMITTEE ON TECHNICAL BARRIERS TO TRADE...... CONVENTION ON COMMON TRANSIT AND SIMPLIFICATION

O F F O R M A L IT IE S I N G O O D S T R A D E ...... 3 0

GROUP OF EXPERTS ON EFFICIENT TRADE PROCEDURES ...... 31

M u t u a l administrative a ssist a n c e in c u s t o m s m a t t e r s ...... 31

E CONOMIC COMMITTEE ...... 31

M EETING OF EFTA AND EU MINISTERS OF FINANCE AND

ECONOMY ...... 3 2

T HE EFTA CONSULTATIVE COMMITTEE ...... 3 2

E FTA PARLIAMENTARY COMMITTEES ...... 3 3

T HE EFTA BOARD OF AUDITORS ...... 3 4

E FTA INDUSTRIAL DEVELOPMENT FUND FOR PORTUGAL ...... 3 5

T HE LUGANO CONVENTION ...... 3 5

THE EEA AGREEMENT ...... 3 6

F REE MOVEMENT OF GOODS ...... 3 6

In t e r n a l M a r k e t A d v is o r y C o m m i t t e e ...... 3 7

S c ie n t if ic c o m m i t t e e s ...... 3 7

T e c h n ic a l b a r r ie r s t o t r a d e ( t b t ) ...... 3 7

Legislation relating to medicinal pr o d u c t s...... 3 7

EFTA participation in European Standardisation O rganisations...... 3 8

M utual Recognition A greem ents...... 3 8

V e t e r in a r y m a t t e r s ...... 3 8

F e edingstuffs ...... 3 8

P h ytosanitary m a t t e r s ...... 3 8

E n e r g y ...... 3 9

S tate a i d ...... 3 9

P u b l ic procurement ...... 3 9

C o m p e t it io n p o l ic y ...... 41

Intellectual p r o pe r t y r i g h t s ...... 41

F REE MOVEMENT OF CAPITAL AND SERVICES ...... 4 1

F in a n c ia l s e r v ic e s ...... 4 2

T r a n s p o r t ...... 4 2

Inla nd transpo rt...... 4 2

M aritime transpo rt...... 4 2

C ivil aviation...... 4 3

N e w t e c h n o l o g y s e r v ic e s ...... 4 3

T elecommunications services...... 4 3

Audiovisual services...... 4 3

Inform ation services...... 4 3

P ostal services...... 4 4

F REE MOVEMENT OF PERSONS ...... 4 4

S o c ia l s e c u r it y ...... 4 5

M u t u a l recognition o f d i p l o m a s ...... 4 5

E m p l o y m e n t ...... 4 5

E u r o p e a n e m pl o y m e n t ser v ic es ( E U R E S ) ...... 4 5 T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

gH %

FLANKING AND HORIZONTAL POLICIES ...... 4 6 ^

S o c ia l p o l ic y ...... 4 6

Equal opportunities...... 4 6

H ealth a n d safety at w ork a n d labour la w ...... 4 7

Public h ealth...... 4 7

D isabled people a n d the elderly...... 4 8

R e se a r c h a n d development ...... 4 8

E d u c a t io n , t r a in in g a n d y o u t h ...... 4 8

S m all a n d m e d iu m - s iz e d enterprises ...... 4 9

E n v i r o n m e n t ...... 4 9

C iv il p r o t e c t io n ...... 5 0

T o u r i s m ...... 5 0

C u l t u r e ...... 5 0

C o n s u m e r p r o t e c t io n ...... 5 0

E C PROGRAMMES AND ACTION PLANS WITH EFTA

PARTICIPATION (PROTOCOL 31 EEA) ...... 51

L EGAL AND INSTITUTIONAL QUESTIONS ...... 5 2

T HE EEA CONSULTATIVE COMMITTEE (EEA-CC)...... 5 3

E E A J O I N T P A R L IA M E N T A R Y C O M M I T T E E (E E A -J P C )...... 5 4

E E A F IN A N C IA L M E C H A N I S M ...... 5 5

B a c k g r o u n d a n d a i m s ...... 5 5

A ppro vals o f g r a n t s ...... 5 5

A ppr o v a l s o f in t e r e st r e b a t e s ...... 5 6

T h e f in a n c ia l m e c h a n is m a c c o u n t at t h e e i b ...... 5 7

E EA CO-OPERATION ON STATISTICS ...... 5 8

Pa rticipation in E u r o st a t c o m m it t e e w o r k in 1 9 9 7 ...... 5 8

D e v e l o p m e n t o f legislation in t h e fiel d o f s t a t is t ic s ...... 5 8

E F T A exper t s at E u r o st a t a n d jo in t p r o j e c t s ...... 5 8

D issemination o f E F T A s t a t is t ic s ...... 5 9

A DMINISTRATION ...... 6 0

T RANSLATION AND PUBLICATION ...... 6 0

M UTUAL RECOGNITION OF TESTS AND INSPECTIONS ...... 61

P h armaceutical In s p e c t io n C o n v e n t io n ( P I C ) ...... 61

P harmaceutical I n s p e c t io n C o - o pe r a t io n S c h e m e ( P I C / S ) ...... 61

P h armaceutical E va l u a tio n R e p o r t S c h e m e ( P E R ) ...... 61

H a l l m a r k in g C o n v e n t i o n ...... 6 2

APPENDICES .63 P

T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

Altar-cloth from Holar cathedral with embroidered figures of the Icelandic saints, early 16th century. Photo: National Museum of Iceland.

Bowl - steel, brass, copper, glass, Jon Snorri Sigurdsson. Jon Snorri is an Icelandic silver smith who has participated in numerous exhibitions in Iceland G e n e r a l and elsewhere. Status: Republic of Iceland Form o f state: Parliamentary Republic Head of state: President Olafur Ragnar Grimsson E c o n o m i c in d ic a t o r s (1996) Capital: Reykjavik (Source: Statistics Iceland) Total area: 103 000 sq. kms GDP: 485 168 million ISK ■ GDP per capita: 1 804 million ISK Population: 269 874 Consumer Price Inflation 2.3% Population density: 2.6 per sq. km. EXPORTS (TOTAL GOODS): IM P O R T S ( t o t a l g o o d s ): Principal languages: Icelandic 125 690 million ISK 135 994 million ISK Religions: Evangelical Lutheran 94% Seafood 73.7% Industrial supplies 27.2% Currency: Icelandic krona (ISK) Aluminium 9.6% Capital goods 22.0% Ferro-silicon 3.0% Transport equipment 14.3% Social indicators (1996) Agricultural products 2.0% Food and beverages 9.3% Average life expectancy: Fuels and lubricants 7.7% men: 76.2 women: 80.6 Main trading partners: Main trading partners: EU; 56.4% Infant mortality: 3.7 per 1000 EU 62.4%; UK 19.1%; USA 11.7%; Germany 10.9%; UK 10.2%; Unemployment: 4.3% Japan 9.8% Denmark 9.4%; USA 8.4% Doctors per population: 2.8 per 1000 Growth rate of population: 0.71% II T h ir t y -s e v e n t h A n n u a l R e p o r t OFjW 9 fr ^Th e E u r o p e a n F r e e T r a d e A s s o c ia t io n

G e n e r a l Status: Principality of Liechtenstein Form of state: Constitutional Monarchy with parliamentary democracy Flead o f state: H.S.H. Prince Hans-Adam von Liechtenstein Capital: Vaduz Gold ring with a garnet and Total area: 160.0 sq. km a brilliant designed and made by Population: 31 143 Barbara Schadler, goldsmith, Vaduz. Population density: 195 pr. sq. km. Principal languages: Alemanni, German Economic indicators (1996) Religions: Roman Catholic 80%, (Source: Office of National Economy, Liechtenstein) Protestant 7%, and other 13% Consumer Price Inflation 0.8% Currency: Swiss franc (CHF) EXPORTS (TOTAL GOODS ): IMPORTS (TOTAL GOODS): Social indicators ( 1996) 3 045 million CHF 1 133 million CHF Infant mortality: 4.0 per 1000 Machinery/transport Machinery/transport (average for the last 5 years) equipment: 47% equipment: 33.9% Unemployment: 1.6 % Main trading partners: Doctors per population: 1 per 1000 EU 45.4%; Switzerland 14.5%; Growth rate of population: 0.71 % r f - T h ir t y - s e v e n t h A n n u a l R e p o r t o f 10 T h e E u r o p e a n F r ee T r a d e A s s o c ia t io n

“Mtitfe’s Rectangle", silver and enamel, designed by Millie Behrens, 1994. The set won the 1997 Nordic Design Council’s prize for Good Design. Photo: David Andersen

6th October 1942 - a day of horror in Trondheim’’, tapestry by Hannah Ryggen, 1942. Photo: National Museum of Decorative Arts, Trondheim.

G e n e r a l Status: Kingdom of Norway Form of state: Constitutional Monarchy with parliamentary democracy Head o f state: H.R.H. King Harald V Economic indicators (1996) Capital: Oslo (source: Statistics Norway) Total area: 323 758 sq. km GDP: 1 017 794 million NOK ■ GDP per capita: 232 320 NOK (excl. Spitzbergen and Jan Mayen) Consumer Price Inflation: 1.3% Population: 4.4 million Population density: 14.3 per sq. km. e x p o r t s ( t o t a l g o o d s ): IMPORTS ( t o t a l g o o d s ): 320 128 million NOK 229 720 million NOK Principal languages: Norwegian Oil/gas products 48.9% Machinery/transport (Bokmal and Nynorsk), Sami language Fish products 6.7% Equipment: 40.8% Religions: Evangelical Lutheran 92% Main trading partners: EU 76.7%; Manufactured goods 17.0% Currency: Norwegian krone (NOK) UK 19.6%; Germany 11.1% Road vehicles 10.7% Exports (total sendees) Electrical machinery/app.: 5.3% Social indicators (1996) 90 991 million NOK Main trading partners: EU 70.0%; Average life expectancy: shipping 51.4% Sweden 16.5%; Germany 13.1%; men: 74.80 women: 80.82 UK 9.9% Infant mortality: 4.0 per 1000 Imports (total services) Unemployment: 4.9% 81 639 millions NOK Doctors per population: 3.26 per 1000 Growth rate o f population: 0.52% r f ' T h ir t y - s e v e n t h A n n u a l R e p o r t o f "7r 11 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

G e n e r a l Status: Swiss Confederation Form o f state: Federal State Head o f state: President of the Confederation Flavio Cotti Capital: Bern Bracelet in white gold set with 723 princess cut diamonds. Designed by Oliver Pasetto and awarded the De Beers Diamonds - Total area: 41 285 sq. km International Awards for 1998. Photo copyright: Gery Nitsch. Population: 7 081.3 million Population density: 172 pr. sq. km. Principal languages: German 63.6%, E c o n o m i c in d ic a t o r s (1996) French 19.2%, Italian 7.6%, (Source: Swiss Federal Statistical Office) Raeto-Romanisch 0.6%, others 8.9% GDP: 368 890 million CHF I GDP per capita: 52 069 CHF Religions: Protestant 40%, Consumer Price Inflation 0.8% (average 1996) Roman Catholic 46.1%, EXPORTS (TOTAL GOODS): IMPORTS (TOTAL GOODS): other 5.0% and no religion 8.9% 98 588.8 million CHF 96 664.0 million CHF Currency: Swiss franc (CHF) Machinery/elec. Equipment: 28.4% Machinery/elec. Equipment: 21.5% Chemical industry: 26.3% Chemical industry: 14.0% S o c i a l i n d ic a t o r s Watches, jewellery: 14.9% Vehicles: 11.6% Average life expectancy: Metal industry: 8.3% Watches, jewellery: 6.0% men: 75.7 women: 81.9 Main trading partners: Main trading partners: Infant mortality: 4.7 per 1000 EU 60.7%; Germany 22.7%; EU 79.0%; Germany 31.4%; Unemployment: 4.7 % France 9.3%;USA 9.3% France 11.6%; Italy 10.7% Doctors per population: 1.7 per 1000 Growth rate of population: 0.2% T h ir t y - s e v e n t h A n n u a l R e p o r t o f 12 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n I1VTR0DUCTI0K

The European Free Trade Association (EFTA) is an international organisation comprising four states, Iceland, Liechtenstein, Norway and Switzerland, with headquarters in Geneva and offices in Brussels and Luxembourg.

The activities of EFTA can be (EEA), through which they partici­ Council is assisted by a substruc­ divided into three broad areas. pate in the Single Market. The ser­ ture of committees and working Firstly, the monitoring and man­ vicing of the EFTA pillar of this groups. agement of relationships between extensive Agreement is undertaken the EFTA States on the basis of the by the Secretariat in Brussels. Substantive decisions relating to Stockholm Convention, which is Statistical co-operation on the basis the EEA Agreement and its opera­ the legal basis of the Association. In of the EEA Agreement is handled in tion are a joint venture with the line with the broad objectives of the Luxembourg by the Office of the EU, and in the hands of common Convention, EFTA has developed Statistical Adviser. The Secretariat bodies. The forum on the EFTA relations with a large number of is headed by a Secretary-General, side with respect to decision mak­ non-EU countries (usually referred who is assisted by two Deputy ing, administration and manage­ to as third country relations); Secretaries-General, one located in ment of the EEA Agreement is the the management and development Geneva and one in Brussels. Standing Committee of the EFTA of these relations is the second area States. It is assisted by a substruc­ of activity and is managed from The governing body of EFTA is the ture of committees and working the Geneva office, which also EFTA Council. The EFTA Council groups which, to a large extent, services the operation of certain deals with all non-EEA matters reflects that of the joint bodies with conventions and schemes. concerning relations between the the EU. EFTA States, matters concerning Thirdly, three of the four member relations with third-countries and In order to facilitate communica­ states (Iceland, Liechtenstein and supervision of the Industrial tion with the social partners and Norway) have structured their rela­ Development Fund for Portugal. In the parliaments of the EFTA States, tions with the European Union particular, financial and common special committees deal with these (EU) in the form of the Agreement administrative matters are the matters both at the EFTA level and on a European Economic Area responsibility of the Council. The the EEA level.

EFTA HISTORY AT A GLANCE

The European Free Trade Association (EFTA) is founded by Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the UK

Finland becomes an associate member

full free trade achieved among the EFTA States / / / [s Iceland becomes a member of EFTA of the Stockholm Convention, 1960 P

T h ir t y - s e v e n t h A n n u a l R e p o r t o f 13 /' T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

1 9 7 2 Denmark and the UK leave EFTA to join the European Economic Community (EEC)

the remaining EFTA States sign bilateral Free Trade Agreements (FTAs) with the EEC

1 9 7 7 elimination of tariffs on industrial goods in trade between the EEC and the EFTA States

1 9 8 4 Luxembourg Declaration on broader co-operation the EEC and EFTA

1 9 8 5 Portugal leaves EFTA to become a member of the EEC " : : K'" « MI 1 » XriRvfaj, : 1 9 8 9 start of negotiations on a European Economic Space, later to become the European Economic Area

1 9 9 1 Liechtenstein becomes a member of EFTA

Free Trade Agreement signed with Turkey

1 9 9 2 the Agreement on a European Economic Area (EEA) is signed in Oporto; Portugal

Free Trade Agreements signed with the former Czechoslovakia (CSFR), Israel, Poland and Romania. Declaration of co-operation signed with Albania.

Switzerland rejects participatioff fn tfie £EA in a-referendum

1 9 9 3 Free Trade Agreement signed with Bulgaria and Hungary. Protocol on the succession of the Czech and Slovak republics to the EFTA-CSFR Free Trade Agreement signed. -C.CU - ' A - u . t v , 1 9 9 4 the Agreement on a European Economic Area (EEA) enters into force

1 9 9 5 Austria, Finland and Sweden leave EFTA to join the European Union

Liechtenstein becomes a full participant in the EEA Agreement

Free Trade Agreements signed with Estonia, Latvia, Lithuania and Slovenia. Declarations of co-operation signed with Egypt, Morocco and Tunisia.

1 9 9 6 Declarations of co-operation Signed with Macedonia and the Palestine Liberation Organisation.

1 9 9 7 Free Trade Agreement signed with Morocco. Declarations of co-operation signed with Jordan and Lebanon. Technical talks on FTAs begun with Cyprus and Malta.

C.Cheysson (France and M.Hellstrom (EFTA) f L discussing the Luxembourg I Declaration 1984/f Summit in Vienna, 1977, the Portuguese delegation. r f ' T h ir t y - s e v e n t h A n n u a l R e p o r t o f # 14 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

THE STRUCTURE UNDER THE EFTA COUNCIL

■■

The EFTA Council as the governing Council discusses and takes deci­ The Economic Committee exchanges body of EFTA is a forum in sions on the development of EFTA views on economic policy in the which the Member States consult, relations with third countries and Member States and engages in negotiate and act together. It usually on the management of the free a dialogue with the EU. The meets twice a month at the level of trade agreements and keeps under Committee on Customs and officials (Heads of Permanent general review relations with the Origin Matters oversees the co­ ■Delegations to EFTA) and twice a EU. Administrative and budgetary operation in this field, particularly year at Ministerial level. Each matters in EFTA are also the in relation to the free trade agree­ Member Country is represented responsibility of the Council. ments. The Committee on and has one vote, though decisions Technical Barriers to Trade (TBT) tend to be by consensus. Under the Council, a substructure oversees notifications on technical of Committees has evolved to deal regulations and co-operation in In substantive matters, the Council with special issues (Figure 3). In this area, and generally meets in manages relations between the addition, six expert groups report conjunction with its counterpart in EFTA States under the Stockholm directly to the Council, but also assist the Standing Committee structure Convention. This includes a broad where necessary the Committees of for matters related to the EEA mandate to consider possible policies Trade Experts and on Third Country Agreement. The Committee of to promote the overall objectives of Relations. The Committee on Third Trade Experts deals with policies the Association and to facilitate the Country Relations oversees the to facilitate trade by technical and development of links with other functioning and development of legislative means; it also tends to states, unions of states or interna­ free trade and co-operation agree­ meet in conjunction with its tional organisations. Thus the ments with third countries. counterpart in the EEA EFTA

EFTA’S EXPORTS TO THE EFTA’S EXPORTS TO NON-EU W O R LD 1996 C O U N TRIES 1996 T^tal EFjTA trade with the world: 131,237 million $ j'ade Mrithvlrith the world exceotexcept thedie EU:43.622EU:43,622 millmillion $

FIGURE 1 FIGURE 2 T h ir t y - s e v e n t h A n n u a l R e p o r t o f 15 T h e E u r o p e a n F re e T r a d e A s s o c ia t io n

EFTA COUNCIL

Ol'JJ'JTTEE JI'li'IITTEE Q\ 'JEiEF .DE E/.PEDl .HE) T

DOFii-irrrEE r n / EXPERT GROUPS P.D C O 'Ji n e.tio j i: Group of state aid experts

Group of experts on public procurement cdfifjittee gr Group of experts on Of'JGJi I /.I IE intellectual property

Group of experts on price compensation

Group of experts on services, investment and : h j iic a ! establishment

Group of experts on efficient trade procedures

ID) IOullC l c io m im t jt STEEP.] I t'JJTTEE OF’

FIGURE 3 structure. On matters related to the The Consultative Committee pro­ The management and development EFTA budget the Council is assisted vides a forum for representatives of of the free trade agreements and by the Budget Committee. The industry and labour in the EFTA declarations of co-operation is car­ auditing of the EFTA accounts is States to exchange views among ried out through Joint Committees overseen by the Board of Auditors. themselves and with the Council, with each of EFTA’s third country The Steering Committee of the while the Committee of Members partners. Portuguese Fund, made up of rep­ of Parliament provides a forum resentatives of all eight contributing in which MPs of the EFTA States states, supervises the fund. can discuss issues of concern. T h ir t y - s e v e n t h A n n u a l R e p o r t E u r o p e a n F r e e T r a d e A s s o c ia t io n

COMMITTEE OF MEMBERS OF STANDING COMMITTEE PARLIAMENT

OF THE EFTA STATES CONSULTATIVE COMMITTEE

Free Movement o f Free Movement of Free Movement of Legal and Institutional Goods Capital and Services Persons Matters

WORKING GROUPS

Formation

ytosanitary

Iroduet Liability

Sodal k $ l i i’u b ik : lip ) Li|imI OpOT'pportunities ■lipI l .ii niiy )! Fw lth aii'l at W o rk ar l abour I a;| ) OllHUllffS Ojimilfativ OlulMlittOO T h ir t y - s e v e n t h A n n u a l R e p o r i o f nr 17 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

THE STRUCTURE OF EFTA FOR MATTERS RELATED TO THE EEA AGREEMENT

The EEA Agreement establishes an consultation and information during for joint committees between the economic area in which there is the preparation of Community legis­ Social Partners on each side and freedom of movement of goods, lation by the Commission. EFTA between Members of Parliament of persons, services and capital. In experts are consulted on the same the EFTA States and the European essence it extends the EU’s internal basis as EU experts in the prepara­ Parliament. market to the EEA EFTA States, tory phase of EC legislation and, creating an area of 18 countries through the Joint Committee The joint structure is, by and large, with a total population of some 380 structure, the EEA EFTA States are reflected by an internal EFTA million. In addition, the EEA consulted on proposals for legisla­ structure (Figure 4) consisting of Agreement provides for co-opera­ tion once they have been presented the Standing Committee of the tion in such areas as research and to the EU Council. EFTA States made up of represen­ development, education, environ­ tatives from Iceland, Liechtenstein ment, social policy, culture, health The forum in which decisions are and Norway, with observers and equal opportunities and a taken to extend Community legis­ from Switzerland and the EFTA range of other programmes and lation to the EEA is the EEA Joint Surveillance Authority. Five sub­ activities carried out in the EU Committee. The Joint Committee committees and a large number (see page 51 below fo r a fu ll is made up of representatives of the of working and expert groups overview of EFTA participation in EEA EFTA States, the European assist the Standing Committee. EU programmes) Commission and the EU Member Substantive issues covered by the States and generally meets once a Standing Committee and its sub­ A central concept of the EEA month. The Joint Committee is structure are described below in the Agreement is hom ogeneity; in assisted by five Subcommittees section on the EEA Agreement. other words, the economic area covering (I) free movement of should have the same rules and the goods, (II) free movement of capi­ Surveillance of the implementation same conditions of competition for tal and services and company law, of common rules across the Area is economic operators. To maintain (III) free movement of persons, carried out by the Commission homogeneity, the EEA Agreement (IV) horizontal and flanking policy for the EU territory on the one is designed to be dynamic and is and (V) legal and institutional hand and the EFTA Surveillance amended on a continuous basis to matters. There are a number of Authority for the 3 EFTA States on ensure that relevant and acceptable working groups responsible to the the other. There is also an EFTA Community legislation is integrated Subcommittees. Court to provide judicial control. via the EEA Agreement into the These bodies are important ele­ national legislation of the EEA Political impetus and guidelines ments of the two pillar structure EFTA States. for the implementation of the under the EEA Agreement (Figure Agreement are provided by the 7; see separate Annual Reports from In addition to taking over EEA Council, which is made up of both bodies). C om m unity legislation, the EEA EU and EEA EFTA ministers. In EFTA States have ample rights for addition, the Agreement provides S' T h ir t y - s e v e n t h A n n u a l R e p o r t o f iI ir 18 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n ACTIVITIES UNDER THE EFTA COUNCIL

The EFTA Council met twenty times in the course of 1997. In the first half of the year, the Chairmanship was held by Switzerland and in the second half by Norway. Two Ministerial Council meetings were held, both in Geneva, on 19 June and 4 December (Communiques at Annex).

THIRD COUNTRY RELATIONS

In recent years, and more particu­ larly since 1995, when three member countries left to join the European Union, EFTA has become increasingly outward- looking, seeking to extend and develop its relations with non-EU countries. There are a number of reasons for this. Firstly, relations with the EU, EFTA’s most impor­ tant trading partner, are firmly anchored in the EEA Agreement (for Iceland, Liechtenstein and Norway) and in bilateral free trade agreements (chiefly relevant for Switzerland). Secondly, trade with non-EU partners has become increasingly important. In 1996 the EFTA States’ exports to free trade partners outside the EU amounted to over 4.8 billion dollars, equiva­ lent to more than half of their exports to the United States, their second largest trade partner after the EU, and considerably more □ EFTA STATES: Iceland, Liechtenstein, Norway, Switzerland than their exports to Japan. □ FREE TRADE AGREEMENT: Bulgaria, Czech Republic, Estonia, Hungary, Israel, Latvia, Lithuania, Morocco, Poland, Romania, Slovakia, Slovenia, Turkey Thirdly, despite the reduction in its size, EFTA remains in economic ] DECLARATION O N CO-OPERATION AND DEMARCHES FOR FTAs: Albania, Egypt, Jordan, terms a significant global trading Lebanon, Macedonia, PLO on behalf of the Palestinian Authority, Tunisia, Cyprus, Malta association providing it with the political clout to make joint action • //

T h ir t y - s e v e n t h A n n u a l R e p o r t o f , ~ 7 r 19 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

worthwhile. With a combined GDP of 1994 did not weaken the EFTA and other restrictions for products of about 454 billion dollars in 1996 States’ resolve to continue on this covered by the agreement upon and external trade amounting to path. It might even be said that entry into force, the partners abol­ over 247 billion dollars for the their resolve was strengthened. At ish their duties only gradually. same period, EFTA carries signifi­ their meeting in Bergen in June Transition periods are, in most cant economic weight. In certain 1995, EFTA Ministers adopted a cases, of eight years or less. Further­ fields such as financial services, declaration on the future third- more, special provisions on struc­ pharmaceuticals, energy, maritime country policy of the Association, tural adjustment allow most of transport and fisheries, EFTA the main objective being that the the free trade partners to introduce, Member States are world leaders. EFTA States should continue to if necessary, temporary measures make a dynamic and independent to protect infant industries and Third country issues are co-ordi­ contribution to improving eco­ sectors undergoing restructuring or nated by the Committee on Third nomic conditions across Europe facing difficulties, particularly when Country Relations, which oversees and beyond. these difficulties produce impor­ the functioning and development tant social problems. of free trade and co-operation S i t u a t i o n a t t h e agreements. In addition there are BEGINNING OF 1 9 9 7 EFTA free trade agreements are six expert groups which assist this By the beginning of 1997, the EFTA modern instruments which take Committee. The Committee met States had common contractual into account recent developments five times in the course of 1997. relations with eighteen non-EU in multilateral and regional trade partners, representing the world’s regimes. They comprise provisions B a c k g r o u n d second largest network of multilat­ relating to payments and transfers, The developm ent o f EFTA’s eral trade agreements. EFTA has rules of competition, protection relations with non-EU countries free trade agreements with twelve of intellectual property, state was given great impetus by the end countries: Hungary, Poland, the monopolies, state aid and arbitra­ of the cold war in 1989, when the Czech Republic, Slovakia, Bulgaria, tion, as well as evolutionary clauses EC started concluding Europe Romania, Slovenia, Estonia, Latvia, allowing the Parties to develop and Agreements with the transition Lithuania, Turkey and Israel, deepen their relations to other economies of central and eastern and declarations on co-operation, fields not covered by the original Europe. The EFTA States also usually the first step on the road to agreement. wished to contribute to the recon­ free trade, with six others: Albania, struction of these former commu­ Macedonia, Egypt, Morocco, Tunisia EFTA’s GROWING nist countries by stimulating and the PLO. By the end of the year NETWORK OF AGREEMENTS market economy principles and, in the number of non-EU partners in the M editerranean broader terms, to bring about had risen to twenty. From December 1995, when the economic prosperity which would EFTA States signed declarations on then consolidate stability and EFTA free trade agreements with co-operation with Egypt, Morocco democracy. Since the Europe non-EU partners are similar to the and Tunisia, EFTA’s network of Agreements foresaw eventual trade regime prevailing among the agreements in the Mediterranean industrial free trade between the EFTA States themselves providing has been expanding progressively. EC and central and east European for free trade in industrial prod­ Free trade agreements had already countries, this could have led to a ucts, processed agricultural goods, been signed with Turkey and Israel situation whereby companies based as well as fish and other marine in the early 1990s. The aim is to in the EFTA States faced discrimi­ products. Trade in unprocessed create the necessary preconditions nation on those markets as agricultural products is subject to for companies based in EFTA compared to their EC competitors. bilateral protocols between indi­ countries to benefit from EFTA Consequently, the EFTA States, in vidual EFTA countries and each participation in a future Euro- Gothenburg in June 1990, decided free trade partner. Mediterranean free trade area. In to start building up their own, addition, EFTA policy in this area parallel, network of free trade Except for those with Estonia, can be seen as a contribution agreements. Latvia, Turkey and Israel, EFTA towards the aims of the EU agreements are asymmetric in Barcelona Declaration; the creation The departure of Austria, Finland favour of non-EU partners; while of a Euro-Mediterranean free trade and Sweden from EFTA at the end the EFTA States eliminate all duties zone by 2010. ■ //

Vr T h ir t y - s e v e n t h A n n u a l R e p o r t o f m 20 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

F r e e t r a d e a g r e e m e n t s i g n e d

w i t h M o r o c c o Eighteen months after the signa­ ture of a declaration on co-opera­ tion between the EFTA States and Morocco, the two sides signed a free trade agreement in Geneva on the margins of the spring EFTA Ministerial meeting. The agree­ ment is asymmetric in favour of Morocco: while the EFTA States will eliminate all duties and other restrictions for products covered by the agreement upon entry into force, Morocco will abolish its duties only gradually, over a transi­ tion period of twelve years. Moroccan Minister of Commerce and Industry, Mr. Driss Jettou, at the

D eclarations o n signature of the EFTA - Morocco Free Trade Agreement, Geneva, June 1997. CO-OPERATION SIGNED WITH

J o r d a n a n d L e b a n o n The signature of the free trade took place in Geneva during the At the same meeting EFTA States agreement with Morocco and the year, one in March, the other signed declarations on co-opera­ declarations on co-operation with in June. Following the signature of tion with Jordan and Lebanon. Jordan and Lebanon meant that, by a declaration on co-operation These declarations are often the the end of 1997, the EFTA coun­ between the EFTA States and the first step on the road to free trade tries were co-operating with twenty PLO on behalf of the Palestinian and cover fields such as trade, non-EU partners through thirteen Authority in December 1996, tech­ investment and economic co-oper­ free trade agreements and seven nical talks took place between the ation. The objectives of the declara­ declarations on co-operation. two sides in Geneva in October tions are to expand and widen 1997 to prepare for negotiations on contacts between the Parties with F u r t h e r w o r k i n t h e an interim free trade agreement. In the aim of achieving relations M editerranean r e g i o n 1996, the EFTA countries had pro­ founded on free competition and Free trade negotiations with posed free trade agreements to economic activity based on market Tunisia, which started in late 1996, both Cyprus and Malta. Technical forces. The EFTA countries and continued in 1997. Two rounds discussions on these two drafts Jordan and Lebanon, respectively, are to examine ways and means of expanding and liberalising their trade relations taking into account their international obligations and the applicable principles and provisions of the World Trade Organisation. Co-operation in trade concerns barriers to trade, information on foreign trade, as well as trade-related areas such as competition, public procurement markets and intellectual property rights. Co-operation is to be based on mutual benefit, non­ discrimination and reciprocity. Joint Committees are established Ambassador Abdul Latif al-Bawad, the Jordanian Ambassador to Bern at to implement the declarations’ the signature of the Declaration on Co-operation between EFTA and Jordan, various provisions. Geneva, June 1997. T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

formalised. Later that month the EFTA States proposed that the relationship be formalised through a declaration on co-operation which would constitute a forum to discuss, among other elements, prospects for free trade between the two regional organisations. This would then be the first such decla­ ration the EFTA States would sign with another regional grouping.

ASEAN As a result of the first meeting of EFTA and ASEAN Ministers in the margins of the Singapore WTO Ministerial Conference in Lebanese Minister of Economy and Commerce, Mr. Yassine Jaber, at the December 1996, it was agreed that signature of the Declaration on Co-operation between EFTA and Lebanon, the two regional organisations Geneva, June 1997 should have an exchange of visits and short-term stays between took place in Geneva in 1997, with charge of policy-formulation in the members of the two Secretariats. A Malta in August and with Cyprus in field of third-country relations, had member of the EFTA Secretariat October. a number of intensive discussions visited the ASEAN Secretariat from on the subject. 26 May to 6 June 1997. This visit C o - o p e r a t io n w it h proved to be very useful and, as a COUNTRIES AND C a n a d a next step, a member of the ASEAN GROUPINGS BEYOND THE In a speech made in London on 26 Secretariat is expected to visit the IMMEDIATE CONFINES OF October 1997, the Canadian Prime EFTA Secretariat. The ultimate aim E u r o p e Minister expressed the wish of his is, as m andated by EFTA and In 1997 the EFTA States increased country to conclude a free trade ASEAN Ministers in December activities concerning their relations agreement with EFTA. At their 1996, to help identify possible areas with countries and regional group­ twice-yearly gathering in Geneva of co-operation between the two ings beyond the immediate con­ on 4 December 1997, EFTA organisations. fines of Europe. An important Ministers welcomed this and development was the initiation of agreed to hold a first meeting to MERCOSUR informal discussions with Canada. explore the possibility of establish­ a n d S o u t h A f r i c a In addition, EFTA sought to ing such free trade relations in the The first meeting of EFTA and build on its earlier contacts with first half of 1998. This will be the MERCOSUR representatives took the Gulf Co-operation Council first time EFTA discusses free trade place in Geneva on 21 July 1997 to (GCC), the ASEAN Secretariat, with a country far beyond the exchange views on the present MERCOSUR and South Africa. immediate confines of Europe. activities and future prospects of the two organisations and to exam­

So far, the pattern EFTA has fol­ T h e G u l f C o - o p e r a t i o n ine the possibility of establishing lowed over the last years has been C o u n c i l ( G C C ) links between them. Iceland’s to establish relations between On 12 November 1997 the Foreign Minister, Mr. Halldor EFTA, as a regional grouping on the Secretary-General paid a visit to Asgrimsson, also raised the issue in one hand, and individual countries the Secretariat of the Gulf Co-oper­ the course of his official visit to on the other. But future trends ation Council (GCC) to propose Argentina in August 1997. Informal increasingly seem to be pointing to the re-activation of informal links talks with South Africa took place relations between regional group­ established between EFTA and the in 1997 to explore the possibility of ings themselves. EFTA Fleads of GCC in 1992. The GCC Secretary- developing relations. Delegation in Geneva, in their General welcomed the initiative capacity as the EFTA body in and suggested that relations be T h ir t y - s e v e n t h A n n u a l R e p o r t o f ir T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

RELATIONS BETWEEN EFTA AND THIRD COUNTRIES

JOINT DECLARATION COUNTRY Signature Signature

10 December 1992

10 December 1991

signed with former signed with former CSFR provisional application CSFR 13 June 1990 20 March 1992 A Protocol I October 1992 on the succession of the Czech Republic was signed and entered into force on 19 April 1993

10 December 1991 7 December I99S

17 September 1992

10 December 1991 7 December 1995

29 March 1996

not yet entered into force

10 December 1992 I September 1993

10 December 1992

signed with former CSFR signed with former 13 June 1990 CSFR 20 March 1992 A Protocol on the succession of the Slovak Republic was signed and entered into force on 19 April 1993

17 September 1992

8 December 1995

10 December 1991 I October 1992 M a n a g e m e n t o f e x i s t i n g Work in the different fields covered traders alike, both within the FREE TRADE AGREEMENTS by EFTA free trade agreements with pan-European cumulation area The updating and upgrading non-EU countries continued apace and outside it. For example, cus­ of existing EFTA free trade agree­ throughout 1997, and broadly toms procedures have been simpli­ ments is a continuous process. speaking, concerned the following fied and companies have more Relevant trade policy develop­ areas: freedom to use input material ments, in particular in the frame­ originating in any country in the work of the WTO, have to be incor­ C u s t o m s m a t t e r s system, which makes it easier to porated. Any modernisation of the a n d decide in which country to invest EU’s agreements with third coun­ ORIGIN RULES for their production facilities. As tries is assessed to establish whether The full entry into force of the regards materials originating in it could lead to discrimination pan-European cumulation network countries outside the system, the against EFTA economic operators on 1 July 1997 represents a new rules are generally more flexi­ on the same markets. If so, remedial milestone in European economic ble than before, containing, among action is taken by making relevant integration. It links more than other elements, a ten per cent changes to the respective EFTA thirty countries - all the EU general tolerance rule. free trade agreements. Finally, the Member States, the EFTA States, functioning of existing EFTA ten partner countries in central and In 1997 the EFTA States continued agreements is reviewed regularly. eastern Europe including the Baltic expert discussions with Turkey on states and Slovenia and, through the replacement of the rules of EFTA experts in various fields meet special legal instruments, Andorra origin currently applied under periodically to review recent devel­ and San Marino - into a Europe- the EFTA-Turkey agreement by a opments and propose future wide free trade area through eighty new set of rules based on the action. Their reports are assessed separate agreements. pan-European arrangement. Since by the Committee on Third- Turkey may soon have free trade Country Relations, the body in Before the establishment of this agreements with all countries charge of the day-to-day manage­ new structure, the different agree­ linked to the pan-European cumu­ ment of EFTA free trade agree­ ments in Europe had incompatible lation system, it might also be ments with non-EU countries, and, origin rules. For instance, in the included in the pan-European where appropriate, are used in the framework of each set of parallel cumulation network as soon as preparation of Joint Committee agreements concluded by both 1999. The EFTA States held similar meetings with partner countries. the EFTA States and the EU with expert talks with Israel on the The Joint Committees established countries in central and eastern replacement of the present rules of under the different free trade agree­ Europe, cumulation of input mate­ origin by a more m odern set. ments meet regularly to address rials under the respective parallel trade problems, if any, between agreement was not allowed. P r o c e s s e d agricultural EFTA and the country concerned. g o o d s They may also agree on changes to The new system has many impor­ In order to take account of the the respective agreements. tant advantages for producers and results of the Uruguay Round, the protocols on processed agricultural goods in all EFTA free trade JOINT COMMITTEE MEETINGS IN 1997 agreements with non-EU countries are gradually being reviewed. The product lists in these protocols, Joint EFTA-Hungary Committee Budapest 27 and 28 February 1997 which are different for each Joint EFTA-Estonia Committee Tallinn 2 June 1997 country concerned due to specific agricultural policies, are being Joint EFTA-Latvia Committee Riga 4 June 1997 updated to the Harmonised System Joint EFTA-Lithuania Committee Vilnius 5 June 1997 1996 standard at the same time.

Joint EFTA-lsrael Committee Jerusalem 12 November 1997 This review process started in earnest in 1997 and will continue in Joint EFTA-Bulgaria Committee Sofia 16 December 1997 1998. Joint EFTA-Romania Committee Bucharest 18 December 1997 T h ir t y - s e v e n t h A n n u a l R e p o r t o f a 24 I T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

S e r v i c e s , i n v e s t m e n t a n d took place in 1997 during which OECD Multilateral Agreement on ESTABLISHMENT the Expert Group proceeded with Investment (MAI), as well as In December 1996, the EFTA the assignment, taking into account services liberalisation between the Council asked the Expert Group developments in relation to the EU and partner countries in the on Services, Investment and WTO General Agreement on framework of the respective Europe Establishment to assess the need to Trade in Services (GATS), the or Association Agreements. introduce or upgrade provisions in OECD Codes of Liberalisation of its areas in free trade agreements Capital Investments and Current I ntellectual p r o p e r t y with partner countries. Six meetings Invisible Operations and the International protection of intel­ lectual property rights is an impor­ tant element for the good functioning THE INS AND OUTS OF EUROPEAN of a free trade area. Since 1 January CUMULATION 1995 the WTO Agreement on Trade Related Aspects of Intellectual An umbrella is produced in Norway and is to be exported from Norway to Hungary. Under the Property Rights (TRIPS) has set the old system this umbrella would not have qualified for Norwegian origin as it does under the minimum degree of protection at new system. the international level by imposing obligations concerning both national Composition of the ex-works price of the umbrella: and most-favoured nation treat­ - 10% materials originating in Switzerland ment. The TRIPS Agreement and - 10% materials originating in Hungary the evolution of international intel­ - 10% materials originating in Romania lectual property rights (IPR) agree­

- 15% materials (and other value added) originating in Norway ments have led to a revision of the old provisions on intellectual prop­ - 30% materials originating in the EU erty protection in EFTA free trade - 15% materials originating in the USA agreements. The new provisions - 10% materials originating in China. are intended to provide the highest 100% available standards of protection in the field. Origin rule: the value o f a ll the non-originating materials used in the make-up of the product cannot exceed 50% of the ex-works price of the product in order to be a The provisions proposed by the dmitted duty-free. EFTA States in their more recent Before pan-European cumulation: free trade agreements provide ade­ Materials used originating in the EU, Romania, USA and China were considered as non­ quate, effective and non-discrimi- originating materials. Only materials originating in a country Party to the EFTA-Hungary natory protection of intellectual agreement (Hungary, Iceland, Norway, and Switzerland and Liechtenstein) were considered as property rights including measures "originating”. As a result, since 65% of the materials used were not “originating”, the 50% for the enforcement of such rights against infringement, counterfeiting originating material rule was not fulfilled and the umbrella was not granted preferential access to the Hungarian market. and piracy. The provisions are based on the principles of most­ After pan-European cumulation: favoured-nation treatment and In the new system, the materials from the EU and Romania as well as the Norwegian, Swiss national treatment in accordance and Hungarian materials, are also considered as “originating". As a result only 25% of the with the TRIPS Agreement. More materials used are not originating, the rule is fulfilled and the umbrella qualifies for Norwegian specific provisions, for instance origin and is granted preferential access to the Hungarian market. relating to levels of protection and adequate standards to be complied Trade with, are dealt with in an annex to In the old system an umbrella produced in Norway and exported to the EU as an EEA each agreement. The content of originating product could not be re-exported from the EU to Hungary as a preferential prod­ these annexes varies depending uct even if there was free trade between Norway and Hungary on one side and the EU and on the situation in each State Hungary on the other. In the new system the umbrella can move freely in the whole area concerned. without incurring any duties. So, it can be exported from Norway to the EU and then to Hungary and will be treated as if it was exported directly from Norway to Hungary. The provisions on intellectual prop­ erty protection in older agreements S- T h ir t y - s e v e n t h A n n u a l R e p o r t o f * 2 5 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

are regularly updated in line with each other’s companies access to T e c h n i c a l regulations latest developments in the field. contract award procedures for Rules and practices in the field of Relevant changes were made to the procurement of supplies, services technical regulations, standards agreement with Slovenia in 1996 and public works by central and certification are changing and, in 1997, to the agreements government. continuously and extended co­ with the Czech Republic, operation is taking place within the Slovak Republic, Bulgaria In 1997 EFTA experts met their Europe and beyond. It has become and Romania. Since changes to the counterparts from the Czech and apparent that the provisions on intellectual property provisions Slovak Republics to study their technical regulations in EFTA free entail an amendment to the main respective public procurement laws trade agreements with third coun­ core of the agreement, they have to and to discuss liberalisation pro­ tries need to be simplified in view be accepted by each country in posals. Similar discussions with the of limited resources both at national accordance with its respective Baltic states are expected and the and Secretariat level, and the need national procedures. The amend­ EFTA States are also planning to to avoid duplication of work. ments, therefore, only enter into negotiate an agreement with Israel force when all Parties have deposit­ on the procurement of telecommu­ In 1997 EFTA continued its efforts ed their instruments of acceptance. nication services. to upgrade and simplify provisions

P u b l i c procurement Effective liberalisation of public procurement markets is an integral EFTA AND THE WORLD TRADE ORGANISATION objective of all the EFTA free trade agreements. The EFTA States have In 1996, EFTA applied for observer status in a number of WTO bodies. EFTA has since been already opened up parts of their granted this status on a permanent basis in the following bodies: the Trade Policy Review Body; public procurement markets to relevant WTO accession working parties; the Committee on Trade and Environment; the Committee some of their free trade partners. on Trade and Development; the Committee on Regional Trade Agreements; and the Committee on The agreement with Israel provides Balance of Payments Restrictions. for mutual liberalisation of public Pending a General Council decision relating to observer status of intergovernmental organisations procurement markets to the level in the WTO, some other WTO bodies granted EFTA ad hoc observer status in 1997, namely the of the GATT Agreement on Committee on Technical Barriers to Trade and the Committee on Rules of Origin. The EFTA Government Procurement of 1979, Secretariat actively followed the work of these organs in 1997. EFTA had had observer status in which was amended in 1987 (GATT the GATT 1947 Council and subsidiary bodies. Close co-operation with the WTO Secretariat con­ GPA). Companies in central and tinued and allowed useful exchanges of information. eastern European countries have been granted access to contract In October 1997, the Secretary-General of EFTA attended the joint WTO/UNCTAD High-Level award procedures in line with the Meeting on Integrated Initiatives for Least-Developed Countries’ Trade Development. same GATT Agreement. Companies from the EFTA States are due to During the year, the WTO Committee on Regional Trade Agreements (CRTA) continued the exam­ receive reciprocal treatment gradu­ ination process of several EFTA FTAs('). Late in 1997, consultations on draft reports and con­ ally. Following the entry into force clusions started on the basis of a new structure as compared to past reports under GATT Article in January 1996 of the new WTO XXIV examinations. These examinations, together with an examination of the North American Free GPA, the EFTA States are aiming to Trade Area (NAFTA), were the first to be concluded in the CRTA, which has a backlog of over upgrade public procurement pro­ thirty regional trade agreements to examine. EFTA Delegations and the EFTA Secretariat closely visions in existing free trade agree­ co-operated with both the WTO Secretariat and the third-country partners concerned with this ments. EFTA experts have devised work. a proposal to liberalise public pro­ Work was launched within EFTA to review the continued WTO compatibility of the EFTA free curement markets further, based trade agreements, with the assistance of WTO experts. The experience gained in the examina­ on the principle of reciprocity. tions of the EFTA free trade agreements with the GATT/WTO played an important role in this Three key guidelines are to be respect. followed in order to reach this objective: transparency, national free trade agreements between the EfTA States and Bulgaria, Estonia, Hungary, Israel, treatment and non-discrimination. Latvia, Lithuania, Poland, Romania and Slovenia, respectively The proposal envisages that Parties should, at a first stage, grant T h ir i y- s e v e n t h A n n u a l R e p o r t o f l r 26 ^ T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

on technical regulations in its free in the main body of the agreement pending at the end of 1997. In the trade agreements. This process and two annexes laying down light of the difficulties of the pre­ mainly consisted of replacing the detailed criteria for granting state sent reporting system and develop­ current article on information pro­ aid and measures to ensure trans­ ments in the WTO and the EU, the cedures with provisions on co­ parency. The transparency mea­ EFTA Expert Group on State Aid operation and consultation and a sures require the Parties to provide was invited in 1997 to review both reference to the notification rules annual reports and to notify any the transparency measures and the of the WTO Agreement on new aid scheme. Rules on trans­ state aid criteria. Technical Barriers to Trade, to parency are essential for the effi­ which most Parties to EFTA free cient control of state aid. However, A r b it r a t i o n trade agreements are signatories. it has been observed that imple­ The more recent EFTA free trade While the WTO TBT rules relating menting this reporting system is agreements, notably those with to notification procedures are less cumbersome for some partner Estonia, Latvia, Lithuania, Slovenia extensive as regards scope and con­ countries due to lack of equivalent and Morocco, contain an arbitra­ tent, they are applied by all WTO national provisions, and represents tion clause for settlement of disputes. members and fulfil the objective of duplication with similar require­ In relation to the agreements nego­ information exchange established ments in the WTO context. tiated earlier, an understanding was under the free trade agreements. reached in most cases on the incor­ The main focus of work in 1997 poration of such a procedure at a By the end of 1997 new technical was to encourage compliance with later stage. By the end of 1997 the regulations were agreed upon with existing transparency provisions EFTA States had submitted proposals Bulgaria, the Czech Republic, and to ensure coherent transparency for the incorporation of an arbitra­ Estonia, Latvia, Lithuania, Israel, measures in all the free trade agree­ tion clause to all other free, trade Romania, the Slovak Republic and ments. The more recent EFTA partners. These have so far been Slovenia, although they had not yet agreements with Estonia, Latvia, accepted by Israel and Bulgaria. entered into force. Lithuania and Slovenia contain fully-functioning transparency The arbitration clause proposed by S t a t e a i d provisions. Older agreements the EFTA States provides for a final The aim of the state aid provisions require an additional decision for and binding award. The existence in EFTA free trade agreements is these same provisions to become of such a procedure is not meant to to ensure that subsidies paid by effective. Proposals to this effect change the fundamental principle public authorities do not distort have been made to Bulgaria, Israel, of solving differences in a direct competition among companies. Poland and Romania. Reactions manner and through consultations The provisions consist of an article from these countries were still in the Joint Committees, and will

EFTA RELATIONS WITH OTHER INTERNATIONAL ORGANISATIONS

Since the early 1960s, EFTA has enjoyed a special status in the OECD allowing it to participate in the activities of the organisation. As usual, the Secretary-General of EFTA attended the annual meeting of the OECD Council at Ministerial level in May and the Deputy Secretary-General in Geneva participated in the meetings of the Executive Committee in Special Session. The Secretariat participated in the work of a number of OECD Committees: the Trade Committee; the Economic Policy Committee; the Economic Development and Review Committee; the Committee on Competition Law and Policy; the Committee on the Environment and in some joint activities and workshops in selected areas of interest. In November 1997, the Secretariat attended the International Conference and Business-Government Forum organised jointly by the OECD and Finland on Dismantling Barriers to Global Electronic Commerce.

The Secretary-General addressed the High-Level Segment of the 52nd session of the United Nations Economic Commission for Europe (ECE) on the 50th anniversary of that body in April 1997. On the same occasion he held a meeting with ECE Executive Secretary Yves Berthelot to review the long-standing good co-operation between the two organisations. The Secretariat also participated in a number of selected ECE forums in 1997, includ­ ing the Working Party on the Facilitation of International Trade Procedures and the Committee for Trade, Industry and Enterprise Development.

Exchange of information and co-operation with the UNCTAD Secretariat continued following long-standing practice. The EFTA Secretariat attended meet­ ings of the Trade and Development Board; the Commission on Enterprise, Business Facilitation and Development; and the Commission on Investment, Technology and Related Financial Issues. T h ir t y - s e v e n t h A n n u a l R e p o r t o f m 27 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

only be used as a last resort. The the main focus of EFTA technical there is EFTA’s participation in EU acceptance of an enforced dispute assistance programmes in 1997 programmes and, on the other, settlement procedure is a confirma­ continued to aim at facilitating the projects related to EFTA free trade tion of the principle of good faith conclusion and implementation of agreements and declarations on and respect for the application of free trade agreements and declara­ co-operation financed by EFTA international law and is normally tions on co-operation with non-EU Member States only. Taken all considered to favour weaker part­ countries. EFTA technical assistance together, EFTA spent CHF 1.7 million ners when disputes arise in interna­ covers a series of programmes on technical assistance in 1997 (see tional trade. and projects funded under the Figure 6). Association’s budget. It does not T e c h n ic a l A s s is t a n c e include the EFTA States’ bilateral J o i n t EFTA-EU p r o j e c t s f o r n o n - E U C o u n t r ie s technical assistance programmes EFTA participates in EU projects In accordance with the principles and policies, which are not co-ordi­ and programmes under PHARE in for co-operation with third countries nated among EFTA Member States. the fields of harmonisation of techni­ laid down by the EFTA Ministerial EFTA technical assistance consists cal legislation and quality assurance, meeting in Bergen on 14 June 1995, of two parts: on the one hand customs and origin matters, and

f * EFTA TECHNICAL ASSISTANCE w m 1 * 1 I «L F EFTA FT A TRADE POLICY EFTA - EU CO-OPERATION ACTIVITIES SCHOLARSHIP STATISTICS STANDARDS & CUSTOMS SCHOLARSHIP OTHER PROIECT5 PROGRAMPROGRAMME M E OTHER PROJECTS

PHARE 19 students Market economy course at Estonian STATISTICAL (14 Albanians and School of CUSTOMS MEDSTAT CO-OPERATION PRAQIII 5 Macedonians) Diplomacy; c o -o p e r a t io n WITHCEECS following a Master in Science Programme Seminar on State Aid High level seminar on Secondment of EFTA Assisting the CEECs Secondment of at the University of in Bulgaria; management of NSIs expert to CESD; to align national EFTA expert to Iceland (6), the (I I Mediterranean technical legislation to EUROCUSTOMS; Norwegian School of Slovenian tralneeship; countries); 59 study visits and EU/EEA; Management (7) consultations to 16 missions by and the University involvement in l3CEECs; cany out Institutional EFTA customs of Geneva (6) training programme. reform in the fields experts to CEECs funding of 90 of standardisation participants to and certification. seminars,

C H F 155.000 C H F 370,000 I C H F 5 12,000 CH F 205,000 C H F 219,000 C H F 160,000

CHF 1,325,000 CHF 387,000 I till MIR CHF ^IHII 1,715, OOO Hill ? "A,// m 'U~. T h ir t y - s e v e n t h A n n u a l R e p o r t o f I ir 28 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

statistics. The PHARE programme, Customs co-operation under to actions in the Baltic states. originally designed to assist PHARE Albania, Bulgaria and Slovenia also Poland and Hungary, now covers Since 1992 the EFTA States have received a substantial part, and 13 central and east European co-financed and provided experts further projects were funded in countries, namely Albania, Bosnia- for customs programmes under Bosnia-Herzegovina and Macedonia. Herzegovina, Bulgaria, the Czech PHARE to help establish modern In addition to technical assistance, Republic, Estonia, Hungary, Latvia, customs administrations and effi­ the EFTA contribution funded 90 Lithuania, Macedonia, Poland, cient customs procedures in the participants in seminars and work­ Romania, the Slovak Republic and countries of central and eastern ing groups. The EFTA States have Slovenia. EFTA financial support Europe, the Baltic states and made especially active contribu­ amounted to around five per cent Slovenia. An EFTA expert has tions in activities related to external of the PHARE budget for 1996 and been on secondment to the EURO- trade statistics, household incomes 1997. The EFTA States also provid­ CUSTOMS Secretariat in Paris and expenditures, fishery statistics ed experts to participate in PHARE since 1993. and cartography/desk-top mapping. activities, and is also involved in the MEDSTAT statistics programmes. In 1997 sixteen missions were The EFTA National Statistical carried out in Bulgaria, Estonia, Institutes (NSIs) and the EFTA Co-operation on Latvia, Lithuania, Slovakia and Secretariat played an active role in the harmonisation of Slovenia by customs experts from preparing a seminar on the integra­ technical legislation and quality Norway and Switzerland in the tion of statistics at the European assurance under field of rules of origin, enforcement level held in Tallinn in November PHARE (PRAQ III) and transit procedures. This work 1997. The purpose of this seminar Under the PHARE programme, made a significant contribution to was to introduce central and east a Regional Quality Assurance the good functioning of the respec­ European countries to some of the Programme (PRAQ I) was initiated tive EFTA free trade agreements formalities and practicalities of in 1991. It was extended in 1992 with the countries involved. All integrating their statistical systems (PRAQ II) and again in 1996 actions were the result of contracts into the European Statistical (PRAQ III). This latest programme concluded between EFTA and System. The seminar was attended has a timeframe of four years (1996 EUROCUSTOMS and cost about by the statistical directors of to 1999) and the total joint contri­ CHF 285,000. thirteen central and east European butions of EFTA and the EU countries and highlighted several amount to ECU 30 million. The Statistical co-operation under important issues which may need objectives of PRAQ III are to PHARE further follow-up. approximate existing technical EFTA co-operation in the PHARE legislation in the central and eastern statistical programme in the period In addition, a trainee from Slovenia European countries to conform to 1996 to 1997, as foreseen by the was seconded to the Office of the EU/EEA standards, to carry out the Memorandum of Understanding EFTA Statistical Adviser for five necessary institutional reforms to signed in October 1996, was con­ months. She worked in close co­ facilitate the further implementa­ ducted flexibly and ensured active operation with the responsible unit tion of new such acquis, to help involvement from the EFTA side. within EUROSTAT and made a national authorities develop and The EFTA contribution for 1996 to valuable contribution to collecting maintain necessary quality assur­ 1997 proved instrumental in main­ and verifying statistics from coun­ ance, such as market surveillance, taining projects in the first half of tries in central and eastern Europe. and to provide practical but crucial 1997. The EFTA expert detached to technical know-how to ensure the the European Centre for Statistics An extension of the Memorandum smooth day-to-day functioning of and Development contributed to of Understanding (MoU) between national systems. The implementing improving the overall management EFTA and EUROSTAT for statisti­ agency is the European Committee and planning of the programme. cal co-operation with central and for Standardisation (CEN). By the More concretely, the EFTA contri­ east European countries was signed end of 1997, EFTA had contributed bution in 1997 was used to fund in 1997, laying the foundation for CHF 512,000 to PRAQ III. a total of 59 study visits and con­ the co-operation for the years 1998 sultations, benefiting most of the to 2000. This MoU ensures the thirteen traditional PHARE coun­ active participation of the EFTA tries. About half of the budget went States in the statistical programme // //

'UL r T ' T h ir t y - s e v e n t h A n n u a l R e p o r t o f nr 29 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

under PF1ARE, supporting its main The EFTA side has already been EFTA TRADE-POL1CY objectives. In this context the EFTA involved in the training pro­ PROJECTS side has the possibility of paying gramme, and some further involve­ Projects under this heading aim to closer attention to fields and coun­ ment is expected to be concentrat­ help free trade partners implement tries which do not necessarily have ed within the field of national their agreements with EFTA and to high priority in the EU accession accounts, new technologies, and prepare co-operation partners for process. possibly, environment. In addition, free trade relations. On request, the EFTA side may take initiatives EFTA arranges seminars, work­ Statistical co-operation for special projects, such as a shops and study visits adapted to in the Mediterranean region follow-up of the management the particular needs of individual (MEDSTAT) seminar. Relatively late in 1997 an countries in such areas as customs The EFTA involvement in MEDSTAT EFTA expert was seconded to the and origin, technical barriers to (the Mediterranean statistical pro­ programme to support the project trade, trade facilitation, intellectual gramme) entered its introductory planning and follow up. property rights, competition rules, phase in 1997 based on the state aid and public procurement. Memorandum of Understanding Norway and Switzerland, as well signed in late 1996 between EFTA as the EFTA Secretariat, were repre­ Market economy course and Eurostat. This programme sented at the meeting of the in E stonia aims at helping and consolidating MEDSTAT management committee For the fourth consecutive year, the statistical information of the in 1997. and at the request of the Estonian countries of the southern and Ministry of Foreign Affairs, EFTA eastern rim of the Mediterranean, Participation in the sponsored a market economy so as to provide relevant, reliable Training of European course at the Estonian School of and timely data. The new political Statisticians (TES) Diplomacy. Around twenty students, perspectives in the region and the p ro ject all current and prospective civil associated changing realities make A new Memorandum of servants, attended a four-week the specific aim of improving the Understanding with the TES course on the functioning of a market different statistical systems an Institute was signed in 1997 in economy with a focus on interna­ important part of the process of order to maintain EFTA involve­ tional trade, investment and mone­ economic and social reform. ment in the TES project and to tary affairs given by two EFTA- Participation in the MEDSTAT allow EFTA to make use of the based academics. programme also provides the pos­ continued training services. The sibility to co-ordinate the bilateral TES Institute, which works in close Slovenian Traineeship activities which both Norway and co-operation with EUROSTAT As part of the enhanced relations Switzerland carry out in connec­ and the National Statistical between the EFTA States and tion with the Palestinian Authority Institutes, has as its main objective Slovenia, the Secretariat employed in a wider framework. to “Promote European integration two Slovene government officials as through professional training in trainees for a period of six months. A very important contribution the statistical field” and organises One was stationed at Geneva from the EFTA side in 1997 was in courses in different fields in order Headquarters while the other was the form of a high-level seminar on to train European statisticians in based at the EFTA Office of the the management of National new operational methods and Statistical Adviser in Luxembourg. Statistical Institutes. This seminar tools. was planned and performed in EFTA S c h o l a r s h i p close co-operation with Eurostat. Over the programme period 1996 P r o g r a m m e Representatives from eleven to 1997 there were twenty partici­ Nineteen students benefited from Mediterranean countries attended, pants from Switzerland at TES the EFTA Scholarship Programme and representatives from Iceland, courses, nine from Norway, four in 1997. Nine students from Albania Norway and Switzerland made sub­ from Iceland and two from and Macedonia graduated in sum­ stantial contributions during the Liechtenstein. This is about mer 1997 from the University of programme. The seminar showed the same level as in the previous Iceland, the Norwegian School of that relatively small countries with period. Management and the University of few vested interests in the region Geneva under the EFTA Scholarship can make useful contributions. Programme. Among the nine graduating students were the first university for EFTA scholars. Scholarships to study at the above Macedonians to take part in the mentioned universities. scholarship scheme. It was also In the second half of 1997, ten new the first time that the University students (eight Albanians and two of Iceland participated as a host Macedonians) were awarded EFTA

COMMITTEE ON TECHNICAL BARRIERS TO TRADE

The Committee on Technical Barriers for Electrotechnical Standardisa­ organisations in the field of testing to Trade held four meetings in 1997. tion) and ETSI (European Tele­ and certification such as the It continued to implement EFTA communications Standardisation European Organisation for Testing policy in the field of standardisa­ Institute); and prepared new prin­ and Certification (EOTC), the tion, testing and certification ciples for the future financing of European Accreditation of Certifi­ related to third countries (EEA European standardisation work cation (EAC) and the European co­ related activities are covered by the (approved by the EFTA Council in operation for Accreditation of Working Group on Technical Barriers December 1997). The Committee Laboratories (EAL). The latter two to Trade seepage 37). also initiated, in parallel with bodies were merged into the European Commission services, a European co-operation for Accre­ In the field of standardisation study covering all EFTA and EU ditation (EA) in November 1997. (see also “Technical Assistance” on countries on the legal status of Following a recommendation from p. 27), in 1997 the Committee standards - this is due to be the Committee, the EFTA Council revised the 1984 EFTA Guidelines finalised in the first half of 1998. approved continued EFTA partici­ for co-operation with the European The Committee also contributed to pation in the third Regional Standardisation Organisations the ongoing strategic review Programme on Quality Assurance (ESOs); prepared new five-year process in CEN. PRAQ III in December 1997 (see contracts with CEN (European also “Technical Assistance" on p. 27) Committee for Standar-disation), In 1997, the Committee continued CENELEC (European Committee its close contacts with European

CONVENTION ON COMMON TRANSIT AND SIMPLIFICATION OF FORMALITIES IN GOODS TRADE

Customs transit is one of the July 1996). Its purpose is to enable Common Transit and the Simpli­ cornerstones of European integration goods to move much more freely fication of Formalities in Trade in and an issue of vital interest to and make customs clearance for­ Goods. At the Joint Committee European business. Some 18 million malities more accessible, providing meeting on Common Transit in Community and Common Transit for the temporary suspension of Reykjavik in July, it was agreed documents are issued every year, duties and taxes normally applied to start exploratory talks on negoti­ covering vast quantities of goods to imported goods moving ating a new Convention. In recent and accounting for billions of ECU inside the Community, or between years, transit fraud has increased in duty and taxes. The Common the Community, EFTA and the considerably and, as a result, the Convention on Customs Transit Visegrad countries (CEECs). Contracting Parties initiated a entered into force in 1988, the con­ process to solve this problem. tracting parties being the EU, EFTA During 1997, Iceland held the and the Visegrad countries (since Chair of the Joint Committee on T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

GROUP OF EXPERTS ON EFFICIENT TRADE PROCEDURES

The EFTA Group of Experts on The close co-operation with the M u t u a l administrative Efficient Trade Procedures held seven CEECs continued during 1997 par­ ASSISTANCE IN CUSTOM meetings in 1997 back-to-back with ticularly in connection with the MATTERS the meetings of the EEA Working meetings of CEFACT. The project By way of Protocol 11 of the Group on Efficient Trade Procedures. of updating the EFTA booklets on EEA Agreement, the European The main issues were related to the the Guide to the implementation of Communities and the EEA EFTA further development of the EBES, EDI-EDIFACT and the TRADER’S States established a network for UN/ECE/CEFACT, EUROPRO, and ABCs (first published in 1994) was enhanced mutual administrative co-operation with the CEECs on an important project and a CD- assistance in customs matters. In trade facilitation matters. ROM with the updated version will 1997 Switzerland and the EU be issued in 1998. This will provide signed a similar agreement in the The EFTA states followed up the a useful source of information for form of an additional protocol to further development of CEFACT, exporters from the countries in their bilateral free trade agreement. during the two meetings that were transition that have requested fur­ In order to extend this network to held in Geneva, from 17 to 20 March ther assistance from EFTA in the relations among the EFTA States, a and 15 to 19 September. With field of trade facilitation. The use of new Annex I was added to the regard to EUROPRO, the EFTA an electronic version allows numer­ Stockholm Convention in 1997 by Group of Experts worked jointly ous accompanying texts and Decision of the EFTA Council at with EUROPRO, particularly with documents to be inserted together Ministerial level on 19 June 1997. its Official Procedures Working with the original TRADER’S ABC This Decision is subject to ratifica­ Group, on several European issues material on Trade Basics, Transport, tion in all EFTA States. such as SAD (Single Administrative Payments and Insurance, as well as Document) and the computerisa­ EDI-EDIFACT. tion of transit.

ECONOMIC COMMITTEE

The Economic Committee held four EFTA countries and possible Economic effects will vary from three meetings in order to prepare policy responses. The review one EFTA country to another for the yearly meeting of EFTA and concluded that, due to the deep depending on trade and capital EU Ministers of Finance and economic integration with EU flows, cyclical position and mone­ Economy. The Committee contin­ markets, beneficial effects of EMU tary policy regime. These are all ued its contacts with Directorate on growth and stability would, to factors in the active consideration General II of the European a large extent, be felt in the of policies in response to EMU at Commission in order to exchange EFTA countries. As small, open present under way in the EFTA information on monetary policy economies with a relatively larger countries. Although there are dif­ issues. trade exposure than the future euro ferences in policy responses, all countries, they will, however, be four EFTA countries pursue stability The Committee discussed the particularly vulnerable to exchange oriented macroeconomic policies impact of Economic and Monetary rate fluctuations, which could entailing low inflation and sound Union on EFTA economies in a occur if EMU does not get off to a public finances, policies that have brief review of the situation in the sure and successful start. proved to be supportive of high T h ir t y - s e v e n t h A n n u a l R e p o r t o f ~ir 32 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

employment. Their economic per­ The need for stability oriented poli­ competitiveness are to be main­ formance is within the reference cies in the EFTA countries could tained. values specified in the Maastricht become even stronger after EMU is Treaty for participation in EMU. launched, if economic stability and

, i § | MEETING OF EFTA AND EU MINISTERS OF FINANCE :;f || AND ECONOMY

Ministers of Finance and Economy the low skilled, while at the same important step towards economic from the EU and EFTA Countries time ensuring equal opportunities integration in Europe. They agreed have met annually since 1993. At for men and women. They agreed that the completion of the Single their meeting in Luxembourg on 12 that sound and stable macroeco­ Market and the framework provided October 1997, Ministers discussed nomic policies, sustainable fiscal by EMU for monetary stability, growth and employment and the consolidation, adaptable labour budget discipline and growth international implications of EMU. markets and ongoing structural would benefit not only companies reforms are crucial to create a within the Member States, but also Ministers discussed best practice favourable environment to encourage those in the EFTA Countries. policies to enhance growth and private investment translating employment in Europe. They accelerated economic growth into Ministers agreed to meet again in stressed the need to maintain additional jobs. 1998 to discuss key economic policy momentum in fighting unemploy­ issues in a wider European setting. ment, particularly for young peo­ The Ministers also noted that the ple, the long-term unemployed and creation of EMU would mark an

J j j j j THE EFTA CONSULTATIVE COMMITTEE

The Members of the Consultative Business and Industry) while the third joint meeting with the Standing Committee (see page 79) come Vice-Chairmen were Mr. Jon Ivar Committee of the EFTA States in from the social partner organisa­ Nalsund (Norwegian Confederation March, where the effectiveness of tions (employer and employee of Trade Unions) and Mr. Pierre the single market was discussed. organisations) in the four EFTA Weiss (Union of Swiss Employers’ countries. Normally, six members Associations). In June, the Committee and EFTA from Norway, three or four Ministers met in Geneva and members each from Iceland The Consultative Committee held exchanged views on, amongst other and Switzerland and two four meetings in 1997. Special things, the development of the from Liechtenstein participate. priority was given to Employment EEA Agreement and its operation. The European organisations and Social Affairs, the Single International trade issues were also ETUC (European Trade Union Market and Energy while several discussed and an overview of Confederation) and UNICE other EU issues were closely EFTA’s third country relations (Union of Industrial and Employers’ followed, such as the Information was given. The Committee further Confederations of Europe) may Society, Economic and Monetary gave a report on its work on send one observer each. Union, the Intergovernmental energy policy. In December the Conference and Enlargement. Committee had a meeting with The Chairman in 1997 was Mr. Jon the Ministerial Chairman of EFTA, Vea (Confederation of Norwegian The Consultative Committee held its Mr. Knut Vollebask in Oslo, where V/ S- THIRl Y-SEVENTH ANNUAL REPORT OF ir 3 3 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

the Amsterdam Treaty and enlarge­ Activities under the EEA Consultative on page 53 and a list of the mem­ ment of the EU were discussed. Committee are described below bers is on page 79.

Since the entry into force of has six members from Norway, The Bureaus prepare, co-ordinate the EEA Agreement there have four from Iceland and two from and guide the work of the been two EFTA Parliamentary Liechtenstein. Switzerland has ob­ Committees. In addition, the Committees: The Committee of server status in the MPS. Bureau of the MPS issues an opin­ Members of Parliament of the ion on the draft budget of the EFTA EFTA States (MPS) which deals The CMP and MPS hold their Surveillance Authority, on behalf of with EEA-related matters and meetings jointly and function prac­ the MPS. forms the EFTA side of the EEA tically as one, with Switzerland Joint Parliamentary Committee switching to observer status when The CMP/MPS held four joint (JPC) and the Committee of EEA issues are discussed. Mr. Peter meetings during 1997, in addition Members of Parliament of the Vollmer (Switzerland) chaired the to the customary two joint meet­ EFTA Countries (CMP), which CMP in 1997 and Mr. Vilhjalmur ings with EFTA Ministers. The deals with all other matters, partic­ Egilsson (Iceland) chaired the Committees discussed a number of ularly relations with third coun­ MPS. issues related to the EEA and EFTA tries. The CMP has five members third country relations amongst from the national parliament of The Bureaus of the CMP/MPS held themselves and with the ministers, each EFTA country, while the MPS six joint meetings during the year. focusing on such issues as Economic

Chairman of the Committee of Members of Parliament of the EFTA States (CMP), Mr. Peter Vollmer, Switzerland, 5th Third Country Conference, Bern, October 1997. \ S- 'EL 34 f i T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n T h ir t y - s e v e n t h A n n u a l R e p o r t o f m '

and Monetary Union, develop­ ments in the WTO, and the EU- Switzerland bilateral negotiations.

The MPS also initiated a discussion on the implications of increased use of the co-decision procedure within the EU as a result of the Amsterdam Treaty. The MPS will continue discussions on this issue in 1998, especially in its co-operation with the European Parliament. The MPS also began an ongoing exami­ nation of the process involved in fulfilling constitutional require­ ments for EEA legislation in the EFTA EEA countries, specifically to pinpoint where delays are liable to occur in the parliamentary ratifica­ tion process and why.

The EFTA Committee of Members of Parliament (CMP) held its 5th Conference with Third Country Partners on 30 and 31 October 1997. The Conference was hosted Swiss Federal Councillor Jean-Pascal Delamuraz, 5th by the Swiss Parliament in Bern. Third Country Conference, Bern, October 1997. Parliamentarians from free-trade and co-operation partners were EFTA and European Parliament issue of liberalisation of trade in invited and representatives attended counterparts. The aim of the agriculture. Participants agreed from the central and east European Conference was to follow up on on the usefulness of this type of countries (CEECs), the Baltic previous co-operation between the parliamentary forum in order to states, Mediterranean countries, CMP and parliaments of EFTA ensure regular inter-parliamentary the Palestinian Authority and the partners and to initiate relations dialogue between all the partners European Parliament. with parliaments of countries with on developments in trade and which EFTA has more recently integration issues. This was the first conference to established relations. Participants bring parliamentarians from the looked at the current state of The activities of the EEA Joint CEECs and the Mediterranean rim integration and trade relations, Parliamentary Committee are countries together to discuss trade wider integration in light of described below on page 54. A list and integration matters with their developments in the EU and the of the members is on page 78.

The EFTA Board of Auditors is the relevant authority concerning the European Union. In 1997 the supreme authority for the auditing auditing questions relating to the Board carried out the audit of the of EFTA, the EFTA Surveillance EEA Agreement and is responsible 1996 accounts and a performance Authority (ESA) and the EFTA for establishing a relationship with audit of the EFTA Surveillance Court. The Board also acts as the the Court of Auditors of the Authority. EFTA INDUSTRIAL DEVELOPMENT FUND FOR PORTUGAL

The EFTA Industrial Development tant part of the Fund’s activity has the application of the Statute. A Fund for Portugal approved 87 loans been the allocation of resources for Steering Committee, consisting of from 1 February to 17 October management training. representatives of each Contributory 1997, for a total of 10,148 million State, is responsible for the admini­ Escudos (approximately 56 million The Fund also offers technical stration of the Fund and takes US dollars). These loans are esti­ assistance and helps in the processes decisions on the loan applications mated to have contributed to the of analysing projects and preparing referred to it by the Executive creation of 444 new jobs and to feasibility studies. By its lending Commission. It is the Fund’s repre­ have safeguarded some 16,974 policy the Fund actively seeks to sentative in Portugal, the Banco de existing jobs. support environmental protection Fomento e Exterior (BFE), which and energy saving. acts as the Executive Commission The primary aim of the Fund, as set and as such is in charge of day-to- out in its Statute, is to contribute to The Contributory States to the day administration and decides the development of Portuguese Fund are the EFTA Member States on the allocation of loans below industry through the financing of as well as Austria, Finland, Portugal SDRs 1.5 million (approximately specific projects, especially those and Sweden. It is the responsibility 2.2 million dollars). This institu­ involving the restructuring or of the EFTA Council, with all tion, being close to the Portuguese creation of small and medium­ Contributory States participating, market, plays a major role in pro­ sized enterprises. Another impor­ to supervise and set guidelines for moting the Fund and its activities.

THE LUGANO CONVENTION

The Lugano Convention on matter, the “free movement of States party to the Lugano Jurisdiction and the Enforcement judgements”. Convention (Iceland, Norway and of Judgements in Civil and Switzerland) was established. The Commercial Matters was signed in In September 1997, the Standing Working Party will meet every Lugano on 16 September 1988, and Committee of the Lugano three months during 1998 under applies between the EFTA States Convention decided that the the Chairmanship of Mr. Gustav and the EU Member States. The Convention would be revised in Moller (Finland). Mrs. Monique Contracting States have also agreed parallel with the revision currently Jametti-Greiner (Switzerland) is to Poland’s accession to the taking place of the Brussels vice-chairman and Mr. Fausto Convention. The Lugano Convention Convention. For this purpose a Pocar (Italy) will act as rapporteur. is parallel to the Brussels Convention Working Party consisting of the EU The EFTA Secretariat has observer which applies between the Member States representatives and status in the Working Party. EU Member States on the same the representatives of the EFTA THE EEA AGREEMENT

During the year 1997 The EEA Joint work continued on Committee met providing EFTA THE EEA STATES 12 times in 1997 input into the and adopted Community Austria, Belgium, Denmark, Finland, Franee, Germany, 107 decisions. preparation of Greece, ICELAND, Ireland, Italy. LIECHTENSTEIN, The Standing legislation and on the Luxembourg, Netherlands, NORWAY, Portugal Committee of the , Sweden, United Kingdom incorporation of EFTA States met adopted Community 12 times in 1997 legislation into the under the chairman­ EEA Agreement. ship of Liechtenstein Comments were in the first half and handed over to the Norway in the EU side on a wide second half. variety of matters The principal ranging from Green business of the Papers to proposals Standing Committee for new legislation. concerned preparation for meet­ The EEA Council, ings in the which comprises EEA Joint Ministers of the EU Committee. and EEA EFTA States, held two meetings in 1997, in Luxembourg on 26 June and in Brussels on 25 November (Conclusions at Annex).

FREE MOVEMENT OF GOODS

Matters relating to the free move­ with expert groups set up under the conclusion of Protocol 3 to the EEA ment of goods are co-ordinated by working groups where necessary. Agreement on trade in processed Subcommittee I under the Standing Joint Subcommittee I is assisted by agricultural products, participation Committee (Figure 4). This field four working groups. Subcommittee by the EEA EFTA States in the Work includes trade-related issues such I held ten internal meetings in 1997 of the European Agency for the as the abolition of technical barriers as well as ten Joint Subcommittee Evaluation of Medicinal Products to trade, customs and origin mat­ meetings with the European (EMEA), conclusion of Mutual ters, veterinary and phytosanitary Commission. Recognition Agreements (MRA) matters, feedingstuffs, competition with Australia, New Zealand, rules, state aid, public procurement In 1997, Subcommittee I focused Canada, the US and Switzerland and intellectual property. On the on issues such as the adoption of and the reduction of the backlog of EFTA side, Subcommittee 1 has the revised Annex I on veterinary legal acts to be incorporated into established twelve working groups, and phytosanitary matters, the the EEA Agreement. T h ir i y- sf.vf.n t h A n n u a l R e p o r t o f J j f 37 Q .T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

The revised Annex I was not I n t e r n a l M a r k e t The Working Group on Technical cleared by the EU side during A d v is o r y C o m m it t e e Barriers to Trade (TBT), which co­ 1997 and work will continue in In September 1997, the EEA EFTA ordinates the assessment of the 1998. Negotiations between the States were for the first time invited relevance and acceptability of new Community and the EEA EFTA to attend the Advisory Committee EU technical legislation relating to States on Protocol 3 to the EEA for the Co-ordination in the Annex II (Technical Regulations, Agreement will be resumed as soon Internal Market field (IMAC) Standards, Testing and Certification) as the bilateral discussions between which deals with the various initia­ and Protocol 47 (Abolition of Iceland and the Community tives outlined in the Action Technical Barriers to Trade in Wine) regarding Protocol 2 of the Free Plan for the Single Market. The of the EEA Agreement, met ten Trade Agreement have been Commission has established contact times in 1997. finalised. points between national adminis­ trations as well as for enterprises In the course of the year, the EEA An agreement was reached in 1997 and citizens. The EEA EFTA States Joint Committee adopted fifty-four between the EU and the EEA EFTA have nominated their national decisions amending Annex II and States with regard to participation contact points to take part in Protocol 47, thus incorporating in the EMEA, the European Agency this co-operation. In addition to eighty-three new acts into the EEA for the Evaluation of Medicinal discussing concrete barriers to Agreement. Most of the new acts Products. With regard to parallel trade, IMAC has considered issues related to trade in wine, foodstuffs MRA Agreements, solutions were such as business test panels, busi­ and maximum residue limits of found in 1997 in relation to ness signpost service, introduction veterinary medicinal products in Australia and New Zealand. of the Euro, and the Single Market food. Annex II and Protocol 47 to Discussions are ongoing with Scoreboard. the EEA Agreement now contain Canada and new MRA contacts more than 1,100 acts. were established with the Czech S c ie n t if ic C o m m it t e e s Republic, Flungary and Poland. In In the wake of the BSE crisis the Experts from the twenty-two addition, the complex issue of Commission reorganised much of expert groups established under Common Rules for the Internal its structure related to consumer the Working Group on TBT were Market in Electricity was followed, protection and food. This included directly involved in the informa­ and attention was also given scientific committees, whose role is tion and consultation process with to the negotiations in the EU to provide advice to the Commission. the European Union. Over the year, Council on the proposal for a experts from EEA EFTA States Directive on Common Rules for Nine new scientific committees participated in more than one the Internal Market in Natural Gas. were established, supplementing or hundred committees, working Subcommittee I adopted a number replacing the previous Committees. groups and other bodies set up by of common positions regarding Members are appointed exclusively the Commission in the field of Green and White Papers and draft in their scientific capacities, with­ TBT. legal acts in the fields of energy, aid out regard to nationality. Two to shipbuilding, transparency of candidates from the EFTA EEA L e g i s l a t i o n r e l a t i n g financial relations (public under­ States were appointed, one to the TO MEDICINAL PRODUCTS takings), public procurement, Scientific Committee on Cosmetics During 1997 considerable progress vertical restraints in competition and non-food Consumer Products was made on the incorporation policy and various issues regarding and one to the Scientific Committee into the EEA Agreement of laws on technical barriers to trade. for Toxicity, Ecotoxicity and the medicinal products. An important Environment. aspect is participation in the scientific work of the European During 1997, ninety-eight legal Technical Barriers Agency for the Evaluation of acts under the responsibility of t o T r a d e (TBT) Medicinal Products (EMEA), Subcommittee I were incorporated The removal of technical barriers which co-ordinates the approval of into the EEA Agreement through to trade through harmonisation of medicinal products across the sixty-seven EEA Joint Committee standards and mutual recognition internal market. Agreement was decisions, the majority of which is a vital plank in the completion of reached in principle on enabling concerned technical barriers to the single market. participation by EFTA experts in trade. the Committee for Veterinary A T h ir t y - s e v e n t h A n n u a l R e p o r t o f m 38 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

Medicinal Products (CVMP) and Services on the progress of F eedingstuffs the Committee for Proprietary negotiations. In line with the EU’s At present there is no Working Medicinal Products (CPMP) from conclusion of MRAs with Australia Group in the EFTA structure dealing early 1998. and New Zealand, the EEA EFTA with the area of feedingstuffs, States negotiated parallel MRAs which includes animal feed and The draft EEA Joint Committee with these countries. They are feed for fish. However, EFTA decision amending Protocol 37 expected to be signed in the first experts participate actively in the (participation in Committees) and half of 1998. work of the EU Standing Annex II to the EEA Agreement, Committee on Feedingstuffs and thus incorporating nine legal acts Contacts have been made with its sub-groups. No new acts con­ in the field of medicinal products is three Central- and East-European cerning feedingstuffs were incorpo­ expected to be adopted during the countries with a view to negotiating rated into the EEA Agreement in first quarter of 1998. MRAs. The aim is to conclude 1997, but eleven acts were under Agreements with the Czech Republic, consideration by the EFTA side. EFTA PARTICIPATION IN Flungary and Poland during 1998. The EEA EFTA States’ experts have, E u r o p e a n S tandardisation The same applies to Canada and in addition to taking part in discus­ O rganisations the US. sions, handed over written com­ In co-operation with Subcommittee ments to the Commission on I, the Working Group continued to V e t e r in a r y M a t t e r s various topics in the area of prepare mandates for the European The revision of Annex I (veterinary feedingstuffs. Particular interest Standards Organisations for new and phytosanitary matters) to the has been taken in fields such as the work to facilitate the functioning of EEA Agreement with the objective use of urea in feedingstuffs for fish, the European market by introduc­ of harmonising veterinary legisla­ ethoxyquin as an additive in feed, ing common standards. Mandates tion within the whole European and the use of Manganese Oxide as approved over the year covered Economic Area has been under a feed additive. Manganese Oxide is construction products, ICT equip­ preparation for over two years. of special importance to the EFTA ment, measuring methods, health When finalised, this revision will side as it is produced in one the care informatics, medical devices result in the removal of veterinary Member States. and consumer product safety (see border controls for fish, live p.30 for wider EFTA involvement animals and animal products The EU is in the process of estab­ in standardisation work). traded between the EEA EFTA lishing a way of controlling, by States and the EU. In addition, the microscopic examination, ingredi­ M u t u a l R e c o g n i t i o n EEA EFTA States will implement ents in compound feedstuffs with A g r e e m e n t s the current EU legislation for trade the aim of discovering the presence A Mutual Recognition Agreement in live animals and animal products of meat and bone meal. The EEA (MRA) gives a third country the with third countries, as well as the EFTA States, and in particular right to test and certify products EU’s animal welfare regulations. An Norway, which has extensive expe­ according to the importing coun­ EEA Joint Committee Decision rience of this kind of examination, tries’ requirements (and vice versa) drafted at the end of 1996 required has contributed to the process. thereby avoiding duplication of further consideration in the testing and certification by the Commission, and following a num­ Given the increase in activity in this importing country and thus sim­ ber of bilateral meetings between area, an initiative has been taken to plifying trade. representatives from the EEA EFTA set up an EFTA Working Group on States and the Commission, a final feedingstuffs. Protocol 12 of the EEA Agreement draft was presented by the provides for the EEA EFTA States Commission in October 1997. This P hytosanitary to conclude MRAs parallel to those revised text was endorsed by the M a t t e r s concluded by the Community. The EEA EFTA States in November. The Working Group on Phytosani­ EU negotiations on MRAs with tary Matters met once in 1997 with the USA, Canada, Australia, New The revised Annex I, including an the purpose of preparing a basis for Zealand, Japan and Switzerland additional package of later acts will negotiations with the EU in the were followed closely, and the add approximately 950 new and process of harmonising legislation Working Group on TBT was regu­ amended legal acts to the EEA on plant health and propagating larly informed by the Commission Agreement. material (seed). At the end of the II tJL 39 T h f. E u r o p e a n F r e e T r a d e A s s o c ia t io n T h ir t y - s e v e n t h A n n u a l R e p o r t o f1 >r w

year, the EU side had not formally Commission on all three issues in during the summer/autumn of responded to the EEA EFTA wish March and July. 1998, should the OECD Agreement for negotiations in this field, but not enter into force before. The contacts were made with the During the year two acts on new regime for aid to shipbuilding Commission in order to initiate the registration of crude oil imports and will replace the 7th Council Directive process. deliveries, and energy efficiency on aid to shipbuilding. requirements for household electric E n e r g y refrigerators etc. were integrated The draft Joint Committee Decision Important legislation for the liber­ into the Agreement. In addition, referring to the Commission alisation of the energy sector con­ another Joint Committee decision Decision establishing Community tinued to emerge from the EU. provided for the necessary amend­ rules for state aid to the steel These developments occupied ments to Annex IV to take account industry was cleared by the EEA most of the tim e of the EFTA of the accession of Austria, Finland EFTA States and is expected to Working Group on Energy Matters, and Sweden to the European be incorporated into the EEA which met seven times in 1997. Union. The act on the restriction of Agreement in 1998. In addition, a Work concentrated primarily on the use o f petroleum products in draft Agreement between the following the development of the power stations was deleted from EEA EFTA States concerning an Commission proposal for a Annex IV since it had been amendment to Protocol 3 to the Directive on common rules for the repealed by the EU. Agreement establishing a Surveillance internal market in natural gas (i.e. Authority and a Court ofjusticewas liberalisation of the market). EFTA S t a te A id also prepared. The amendments to comments on the proposal were The main task of the Working Protocol 3 are necessary to take submitted to the EU in April. At Group on state aid in its three account of the new procedural rules the Energy Council meeting in meetings during the year was to introduced by the Commission December 1997, the EU Member follow the Commission’s work in Decision on aid to the steel industry. States reached a political agreement relation to aid to shipbuilding and on the proposal. Once the legisla­ to the steel industry. In addition, the Group studied a tion is formally adopted by the EU, Commission proposal concerning probably during the summer of The Council Regulation on aid to categories of aid to be exempt from 1998, the EEA EFTA States will shipbuilding integrating the OECD the state aid rules (application of consider it for incorporation into Agreement “respecting normal Articles 92 and 93 of the EC the EEA Agreement. competitive conditions in the ship­ Treaty). The Commission proposal building and repair industry” into introduces the concept of “block The Working Group also dealt with the EU legal framework, was incor­ exemptions” into the state aid field, the Directive establishing common porated into the EEA Agreement in allowing a Member State to give rules for the internal market in October 1997. In addition, following certain kinds of aid within certain electricity, adopted by the EU in the non-ratification by the USA of limits without having to notify the December 1996. Due to the im por­ the OECD Agreement, the EU Commission in advance. EFTA tance of the sector and the exten­ decided in December to prolong comments on the proposal were sive work needed in EEA EFTA the 7th Council Directive on aid to issued in June. States to consider this issue, the shipbuilding a third time. Provided Group had reached no conclusions the OECD Agreement does not Finally, EFTA comments on the by the end of 1997. enter into force, the prolongation Commission’s preliminary proposal will last until 31 December 1998. A on an amendment to Commission The Group also monitored policy parallel prolongation of the same Directive 80/723/EEC on the trans­ developments in the EU, such as Directive under the same terms will parency of financial relations between the Commission’s Green Paper take place within the EEA context Member States and public under­ “ Energy for the future - renewable in early 1998. takings were issued in August. sources of energy”, the proposal for an ALTENER II programme and The discussions on a proposal con­ P u b l ic P r o c u r e m e n t the Communication from the cerning a new regime for aid to The Working Group on Public Commission “An overall view of shipbuilding will continue in 1998. Procurement met three times in energy policy and actions”. EFTA It is expected that the proposal will 1997. The main purpose of the comments were submitted to the be formally adopted by the EU meetings was to consider the T h ir t y - s e v e n t h A n n u a l R e p o r t o f 40 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

ICELAND EEA COUNCIL LIECHTENSTEIN Ministers of EU and! EEA EU CO UNCIL NORWAY EFTA states

EEA JOINT EFTA STANDING COMMITTEE COMMITTEE* Commission and EU and EFTA Secretariat EFTA government EUROPEAN representatives COMMISSION Commission Services

EFTA SURVEILLANCE AUTHORITY

EFTA C O U R T EUROPEAN COURT OF JUSTICE

• ' I EEA JOINT COMMITTEE OF MPs OF PARUAMENTARY EUROPEAN THE EFTA STATES* COMMITTEE* PARLIAMENT MPs from the EFTA EFTA Secretariat EP Secretariat parliaments and MEPs

EEA EFTA CONSULTATIVE CONSULTATIVE ECONOMIC AND SOCIAL COMMITTEE* EFTA Secretariat COMMITTEE* COMMITTEE (ECOSOC) Representatives of ECOSOC Secretariat the Social Partners

* Switzerland is an observer in these bodies

FIGURE 7

Commission’s Green Paper “Public to the Commission’s proposals for take account of the provisions Procurement in the European amendments to four Directives in of the Government Procurement Union: Exploring the way forward” the public procurement field. Agreement (GPA) concluded with­ and the developments with regard The amendments are necessary to in the framework of the World •"> ' i r -

T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n i r 4 1

Trade Organisation (WTO). The rules to air transport and the Green de suite”) was given attention. proposal for amendments to the Paper on vertical restraints first three directives in the classical In December, the Commission sectors (procurement of public Over the year, four block exemp­ adopted proposals for a Directive services, supplies and goods) was tions were included into Annex providing for legal protection of adopted by the EU in October 1997 XIV (competition). These allow for inventions by utility models .and and is expected to be incorporated derogations from the main prohi­ for a Directive on copyrights and into the EEA Agreement during bition against exclusivity agree­ related rights in the information spring 1998. EFTA comments on ments of both a horizontal and society. The Working Group started the Green Paper were submitted to a vertical nature. An amending preparing EFTA comments on both the Commission in March. Regulation regarding technology proposals. transfer agreements was also incor­ C o m p e t it io n porated into the Agreement. Developments within the WIPO P o l ic y (World Intellectual Property Meeting three times in 1997, the I ntellectual Organisation) were also followed, Working Group on Competition P r o p e r t y R ig h t s especially in regard to the follow- Policy focused mainly on the incor­ The Working Group on Intellectual up to the new WIPO-treaties on the poration of the amendments to the Property Rights met four times in protection of authors (WIPO Merger Control Regulation into the 1997 and had regular contacts with Copyright Treaty) and the protec­ EEA Agreement. These amendments the Commission Services. tion of performers and phonogram will necessitate an amendment to producers (WIPO Performance the ESA-Court Agreement. An The Group followed legislative and Phonograms Treaty) that were Agreement has therefore been activity in the Community, espe­ adopted in December 1996. drafted and will be signed in paral­ cially progress on the proposed lel with the Joint Com mittee directives on the legal protection of One new act was incorporated into Decision incorporating the new biotechnological inventions and on the EEA Agreement during the Merger Control Regulation into the the legal protection of designs. In year, namely Regulation (EC) No EEA Agreement. addition, the Group studied the 1610/96 concerning supplementary Green Paper on Community Patent. protection certificate for plant pro­ The Working Group also followed Within the area of copyright, tection products other developments in Community developments regarding the pro­ Competition Policy, such as the posed directive on the harmonisa­ application of the competition tion of artists’ resale rights (“droit

Matters relating to the free move­ internal meetings in 1997 and an been on the agenda of the Joint ment of capital and services are equal number of joint meetings Com mittee since March 1994. co-ordinated by Subcommittee II with the EU side. Important aspects of telecommuni­ under the Standing Committee (see cation liberalisation were extended to Figure 4). The field includes insur­ In 1997, the EEA Joint Committee the EEA EFTA States through the ance, banking and securities, adopted nineteen Decisions per­ incorporation of a number of telecommunications, audiovisual taining to matters for which Commission Directives. and information services, trans­ Subcommittee II is responsible, port- and postal services, and com­ incorporating twenty-seven legal The work of experts increasingly pany law. The seven working groups acts into the EEA Agreement. focused on issues still in the deci­ which report to Subcommittee II Amongst these were Council sion shaping process of the EU, held a total of twenty one meetings. Regulation (EEC) 3577/92 on some of which are highlighted in The Subcommittee held eight Maritime Cabotage, which had the Action Plan for the Single / 4- T h ir t y - s e v e n t h A n n u a l R e p o r t o f 4 <2 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

Market adopted by the European The Working Group on Financial road passenger transport opera­ Council in June 1997. EFTA views Services held four regular meetings tors, and the harmonisation of on new Commission initiatives during the year and one workshop. weights and dimensions. were put forward in various ways The Group studied proposals on i.e. at informal meetings of experts, insurance undertakings in a group, M a r i t i m e t r a n s p o r t in meetings of EU Committees visiting motorists, the settlement An important milestone in in which the EEA EFTA States are finality, and an amendment to the EU/EFTA relations was reached in represented and as formal written Capital Adequacy Directive (CAD 1997 when the Council Regulation comments in the EEA Joint II). The workshop was held to pre­ on Maritime Cabotage (i.e. the Committee. pare EFTA comments on the Green transport of goods between two Paper on supplementary pensions. ports in the same country) was In 1997, EFTA representatives were incorporated into the EEA invited for the first time to the full No community legislation was Agreement after several years delay. meetings of the Banking Advisory integrated into Annex IX (financial Certain EU Member States had Committee and the Insurance services) in 1997. Two Directives, expressed opposition to further Committee. Access was also granted the Cross-border credit transfers opening of the newly liberalised to the Contact Committee on Directive and the Investor compen­ European cabotage market. In Accounting and to the High Level sation Directive are expected to order to allay the fear of fierce Group on Road Safety. EFTA par­ be incorporated into the EEA competition from vessels in the ticipation in EU committees is an Agreement in early 1998. Norwegian International Ship important aspect of the informa­ Register (NIS), which can hire tion and consultation procedure T r a n s p o r t third-country seafarers on local provided for in the EEA Agreement. The completion of the internal (their national) conditions, the market as well as the adaptation of Norwegian Government declared Liechtenstein indicated in January current legislation to technical that it had no intention of changing 1997 that following the expiry progress continued in the transport its cabotage law, which currently of a transition period, Directive sector. Social aspects of transport excludes such (NIS-registered) ves­ 88/361/EC on direct investment received increased attention through sels from Norwegian, and thus would enter into force with the a Commission White Paper on European, coastal trade. exception of the special regime for sectors excluded from the Directive real estate. on working time. EFTA experts also followed devel­ opments in EU safety and environ­ F in a n c ia l S e r v ic e s The EFTA Working Group on ment issues related to transport. Several new legislative initiatives in Transport emphasised the impor­ The EU Council reached a com­ all three main areas of the financial tance of active participation by mon position on amending the services; insurance, banking and EFTA experts in relevant EU Port State Control Directive intro­ securities, were launched by the Committees and ad hoc working ducing the International Maritime European Commission. The EEA groups in order to provide input at Organisation’s (IMO) Code on EFTA experts participated in 25 an early stage in the Community International Safety Management. meetings of working groups assisting decision shaping process. The EU Council also adopted a the Commission in preparing new Directive harmonising safety stan­ proposals concerning such matters I n l a n d t r a n s p o r t dards on fishing vessels of 24 metres as electronic banking, distance In rail transport, two Joint and above. selling, insurance intermediaries, Committee Decisions, on transport securities trading (UCITS), deriva­ of dangerous goods by rail and The European Commission also tives, and financial conglomerates. interoperability of the trans- issued two Communications in European high-speed rail system, 1997 of importance to the EEA The information and consultation were adopted. In the road transport EFTA maritime sector. The first of process was further improved with sector a number of pieces of legisla­ these was the new guidelines for the agreement to allow EEA EFTA tion were incorporated into the State Aid in the Maritime Sector, participation on an observer basis EEA Agreement concerning such which sets a ceiling on government in the Banking Advisory Committee matters as: the transport of danger­ support mechanisms for the opera­ and the Insurance Committee. ous goods, access to the profession tion and taxation of shipping for road haulage operators and companies, as well as for the ■ /

T h ir t y - s e v e n t h A n n u a l R e p o r t o f nr 4 3 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

employment and training of sea­ N e w T e c h n o l o g y Personal Communications Systems farers. Secondly, the Commission S e r v ic e s (S-PCS) and the development issued a White Paper on External Telecommunications, broadcasting of the next generation of Relations, focusing on strengthening and information technology have mobile communications (UMTS - EU shipping companies’ market traditionally been well-defined and Universal Mobile Telecommuni­ access in third countries, and asking separate sectors, but their increasing cations System). for a Council Mandate to negotiate convergence has led to dramatic bilateral agreements with India and changes in the area of New A u d i o v i s u a l s e r v i c e s China. Technology services and height­ The Directive amending the 1989 ened awareness of the information Television without Frontiers Directive

C i v i l a v i a t i o n society. Creating a favourable regu­ was adopted by the EU in 1997. As Liberalisation, safety and environ­ latory environment for electronic well as being invited to the Contact ment continued to occupy the EU commerce has been another central Committee established by the new Council and Commission agendas issue, which was illustrated by the Directive, EEA EFTA experts in the field of Civil Aviation in publication of a Communication cleared a draft Joint Committee 1997. A range of legal initiatives to that aims to ensure Europe-wide Decision for incorporating the promote these three principles availability of digital signatures and amendment of the Directive into continued to be discussed by the encryption, which is the key the EEA Agreement. EFTA expert groups during the to the rapid take-off of electronic year. EFTA experts cleared the 1996 commerce. The EFTA side followed closely the Council Directive on ground- work in the EU, including the dis­ handling at airports, which includes EFTA experts studied the cussions on the protection of minors the opening up of catering, Commission Green Paper on the and human dignity in audiovisual fuelling, baggage handling and convergence of telecoms, media and and information services and on other services to competition from information technology sector, and how to avoid media concentration. all EU Member states, and a draft followed the Commission’s updating Joint Committee decision was of the Rolling Action Plan for I n f o r m a t i o n s e r v i c e s drafted. the information society with EFTA participation in a Community interest. programme which aims at promoting The EU Council was unable to linguistic diversity in the Information reach political agreement on a T elecommunications Society (ML1S), was confirmed by proposal to harmonise European s e r v i c e s the inclusion of the programme airport charges. However, it By the end of 1997, the EU had into Protocol 31 of the EEA endorsed a mandate with the aim adopted the remaining key legisla­ Agreement. There were also negoti­ of establishing a European Aviation tion for the liberalisation of the ations with the EU on EFTA partici­ Safety Authority. This new interna­ telecom market after 1 January pation in the multiannual pro­ tional body, including all European 1998. These include the revised gramme to stimulate the establish­ countries, will improve harmonisa­ open network provision (ONP) ment of the Information Society tion and enforcement of safety harmonisation Directive for Voice (MAIS). The adoption of the deci­ standards in an area that is often Telephony, the Interconnection sion in the EEA Joint Committee characterised by fragmentation and Directive and the Licensing Directive. incorporating the MAIS pro­ incompatibility. EFTA experts are Decisions incorporating these acts gramme is expected in 1998, and following the developments closely. into the EEA Agreement were the EEA EFTA States will partici­ adopted by the EEA Joint pate from 1998 onwards. Two legal acts dealing with harmoni­ Committee at the end of 1997. As a sation of technical and administra­ result the markets in the EEA EFTA During the three meetings of the tive procedures as well as with the countries are now subject to the Working Group on information procurement of air traffic manage­ same regulatory framework in the services the EFTA States discussed ment equipment were incorporated telecommunications sector as their the Commission’s work on the into the Agreement in 1997. EU counterparts Action Plan on safe use o f the Internet, initiatives linked to Further developments followed by Geographic Information, and a the EFTA side were num bering Green Paper on access to and systems, the future of Satellite the exploitation of public sector / / ^

r f ' T h ir t y - s e v e n t h A n n u a l R e p o r t o f f 4 4 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

information in the Information P o s t a l s e r v i c e s Community postal services and the Society. Another im portant issue At the end of 1997, after a concil­ improvement of quality o f service. that arose during the year was the iation procedure, the Presidents The Directive is currently being need for ensuring security and of the EU Council and of the studied by the EFTA Working trust in electronic communication, European Parliament signed the Group on Postal Services. and the Commission is likely to final text of a European Parliament propose a Directive on digital and Council Directive on com­ signatures in 1998. mon rules for the development of

FREE MOVEMENT OF PERSONS

Matters relating to the free move­ 1 January 1998 based on a modifi­ about the Internal Market were ment of persons are co-ordinated cation of the former immigration followed with great interest. A by Subcommittee III, which over regime. Negotiations were to con­ meeting between Commission the year held four internal meetings tinue in early 1998. officials and the EFTA States took and three joint meetings with the place in February 1997 in order to Commission side. The Subcommittee The EFTA States increased co-oper­ discuss how the information mate­ is assisted by two working groups, ation with the EU side in the area of rial produced on the EU side could one on the Mutual Recognition free movement of persons with the serve as a basis for similar informa­ of Diplomas and one on Social nomination of independent experts tion efforts in the EFTA States. Security (see Figure 4). In addition, to participate in a Commission Norway launched its own informa­ and in response to the increased group reviewing the national tion initiative in June 1997 called importance placed on employment implementation of EC acts in this Meeting Point Europe, with guides and labour market issues across area. A number of events were in Norwegian on the EEA Agreement Europe, 1997 saw the establishment planned for the 30th Anniversary of and on studying and working in of an EFTA Ad hoc group on Regulation 1612/68 on free move­ Europe. Additional guides are Employment under Subcommittee ment of persons in 1998. The EFTA being planned and translations into III. During 1997, four EEA Joint States were invited to organise English are also being considered. Committee Decisions were adopted national seminars prior to the pan- Discussions are in progress in incorporating three acts in the European conference in June 1998, Iceland on possible similar projects. area of social security and one act an invitation taken up by both concerning mutual recognition of Iceland and Norway. The considerable success of the diplomas. Citizens First Initiative was also The EFTA side followed with interest gratifying to the EEA EFTA States One issue which was a permanent the work carried out by the High given that the published guides also feature on the agenda of Level Panel on Free Movement of provide a reference point for infor­ Subcommittee III in 1997 was the Persons chaired by Mme. Simone mation on the EEA aspects of review of Liechtenstein’s transi­ Veil, studied the Commission the internal market. Phase II of tional period for the free move­ Communication on an Action Plan the Initiative was launched in ment of persons granted when it for the Free Movement of Workers, November 1997 with new guides joined the EEA Agreement. A and will monitor closely Commission on buying goods and services, number of meetings between the plans to present a range of proposals travelling within the EU and equal Liechtenstein authorities and the for amendments to Regulation treatment of men and women. Commission were held over the 1612/68 on the free movement of The established references to the year and the Subcommittee was workers in the course of 1998. EFTA EEA States and the EFTA updated on developments on a Secretariat in Brussels as a contact regular basis. Pending an overall Activities related to the Citizens point have also been maintained in solution Liechtenstein decided to First Initiative launched in November the new guides. introduce safeguard measures as of 1996 in order to inform citizens • HIM

T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n T h ir t y - s e v e n t h A n n u a l R e p o r t o f " 7 r 4 5

S o c ia l S e c u r it y This is a follow-up to the Communi­ E m p l o y m e n t Three informal meetings of the cation on the future of social protec­ Employment continued to be an EFTA Working Group on Social tion on which the EFTA Working important issue during the year. In Security were held in 1997. In addi­ Group on Social Security submitted order to follow EU activities in the tion, representatives from the comments in 1996. The Working area of employment systematically, Working Group on Social Security Group also gave its view on a con­ the EFTA side set up an Ad hoc took part in an EFTA Workshop on sultation document regarding a Group to m onitor EU develop­ the Commission’s Green Paper on draft Directive on supplementary ments and initiatives in the area. Supplementary Pensions arranged pension rights of workers. The Group held its first meeting in by the Working Group on Financial November 1997, and a joint meeting Services in Reykjavik in December. M u t u a l R e c o g n it io n with the Commission was held at Experts from the EEA EFTA States o f D ip l o m a s the end of the year. participated actively in meetings During the year the EFTA Working of the Administrative Commission Group on the Mutual Recognition Following the inclusion of a on Social Security for Migrant of Diplomas met once and held one new employment chapter in the Workers, of the Audit Board and of joint meeting with the Commission. Amsterdam Treaty, the Group the various working parties under A number of acts were adopted in studied with interest the outcome the Administrative Commission, the Community in this field and of the special EU Jobs Summit in including TESS (Telematics in were discussed by the Group with a November and the resulting Social Security). The EEA EFTA view to incorporation in to the EEA employment guidelines for 1998. States were also invited to a confer­ Agreement. These acts included: a The EFTA side also followed the ence in the Netherlands in November Directive amending the second developments concerning a pro­ co-hosted by the European general system of mutual recognition posal for a Council Decision to Commission on modernisation of of diplomas, the EP/Council Directive develop EU activities for assess­ national social security systems. to facilitate practice of the profession ment, research and co-operation in of lawyer in other member states the sphere of employment and the An up-dated version of Annex VI and a directive amending Directive labour market. to the EEA Agreement, taking 93/16/EEC to facilitate the free account changes in EC acts as a movemen t of doctors. Participation of the EEA EFTA result of the accession of Austria, States continued in meetings of the Finland and Sweden to the The Group also followed develop­ Directors General for Employment European Union was adopted by ments of the amended proposal and the States were invited to a first the EEA Joint Com mittee in concerning a third general system meeting of the Heads of Public November. In addition two Recom­ for the mutual recognition of diplomas Employment Services in June. mendations of the Administrative to professions not yet covered in EFTA labour market experts Commission on Social Security the second general system and a attended two meetings of the from Migrant Workers concerning new proposal for mutual recogni­ MISEP (Mutual information system the improvement of the adminis­ tion of diplomas which was expected on employment policies) corre­ tration and settlement of reciprocal as a result of the SLIM (Simplified spondents, which took place in claims and the application of Legislation in the Internal Market) Brussels and Berlin. EFTA experts Article 69 of Regulation 1408/71 initiative. SLIM aims at identifying participated in a joint Employment were incorporated into the EEA ways in which single market legisla­ Observatory Conference comprising Agreement during the year. tion can be simplified. the MISEP and the SYSDEM (System of Documentation, During the year, the EFTA Working EFTA experts continued to partici­ Evaluation and Monitoring of Group on Social Security actively pate actively in the meetings of the Employment Policies) correspon­ studied new initiatives from the two committees that monitor the dents held in Stockholm. Community and submitted com­ implementation of the first and ments on the Commission’s Green second general systems. Informal European Employment Paper on Education - Training - participation also continued in the S e r v i c e s (EURES) Research, the obstacles to transnational seven so-called “sectorial commit­ Iceland and Norway have been fully mobility and the Communication on tees” covering the training of doctors, integrated in the EURES-network modernising and improving social nurses, mid-wives, pharmacists, (EURopean Employment Services) protection in the European Union architects and other professions. since the EEA Agreement entered JL T h ir t y - s e v e n t h A n n u a l R e p o r t o f i ir 4 6 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

into force in 1994. The EURES-net- As in 1996, the health sector was Recruitment and placement is work links approximately 450 given priority for recruiting per­ co-ordinated by the Medical euro-advisers in the fifteen EU sonnel, and the EURES system and Placement Project (MPP) which countries plus Iceland and Norway. its advisers were heavily involved in has the responsibility for admitting These euro-advisers are trained to recruiting nurses to Norway. Around interested doctors to the language provide information, advice and 2,000 nurses, mainly from Sweden courses and for matching them placement services to the main target and Finland, found their way to with vacancies in Norway. groups: employers and jobseekers. Norway thanks to different infor­ Two databases have been created as mation and recruitment activities. Throughout the year Iceland was tools: the EURES Vacancy database very active in informing its small- for information on vacancies on Within the EURES framework, and medium-sized enterprises the European labour market, and bilateral agreements were signed in (SMEs) about the EURES-network the EURES INFO database with 1997 with Austria, France and and the possibilities it offers to information related to living and Germany on recruiting medical employers wanting to recruit working conditions in the seven­ doctors to Norway. Before taking employees from across Europe. teen participating countries. up their new positions, the doctors go through three-month intensive EURES has now established a In Norway, four new EURES INFO Norwegian language courses homepage on the internet (internet centres were opened in 1997. financed by the Norwegian state in address: http://europa.eu.int/jobs/ These centres, located in Stavanger, their home countries. Information eures) with links to most of the Bergen, Trondheim and Tromso, booklets for medical doctors have national employment agencies. employ trained euro-advisers who been sent out to more than 4,000 provide services to jobseekers. doctors in these three countries. j j j j ^ F L A N K I N G AND HORIZONTAL POLICIES

Matters relating to flanking and developments in the field of social women (1996 - 2000). Experts from horizontal policies are co-ordinated policy, held its final meeting in the EEA EFTA States also partici­ by Subcommittee IV under the April 1997. In June 1997, pated as observers in the Advisory Standing Committee (see Figure 4). Subcommittee IV decided to Committee on Equal Opportunities EFTA Subcommittee IV is assisted replace the Working Group on for Women and Men and were by seventeen working groups and a Social Policy, including the existing invited to participate in various number of expert groups, while the ad hoc expert groups, with four working groups and seminars Joint Subcommittee is assisted by new, more specialised, working organised by the committee. Both three working groups. Subcommittee groups. The four new working Iceland and Norway have, since IV held eleven internal meetings groups, which all met once during autumn 1997, participated actively during the year, all of which were fol­ autumn cover the following areas: in the two expert groups on Gender lowed by meetings with the EU side (1) Equal Opportunities and and Employment and on Equality in Joint Subcommittee IV. Seventeen Family Policy, (2) Health and Safety Law which assist the Equal Joint Committee Decisions were at Work and Labour Law, (3) Public Opportunity Unit in DG V of the adopted in relation to legislation in Health, and (4) Disabled People, European Commission. the area covered by Subcommittee the Elderly and Social Exclusion. IV, including decisions allowing for A Council Recommendation on the EEA EFTA participation in five new E q u a l O pportunities balanced participation of men and EU programmes. In the area of equal opportunities women in the decision making the EEA EFTA States continued process was incorporated into the S o c ia l P o l ic y their participation in the medium- EEA Agreement in May, while a The Working Group on Social term Community action programme Joint Committee Decision on an Policy, which had monitored overall on equal opportunities for men and amendment to an earlier directive ■ m T h ir t y - s e v e n t h A n n u a l R e p o r t o f Hr 47 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

on the implementation of the principle exposure to harmful substances. The EFTA side submitted com­ or equal treatment for men and Following this evaluation, two ments to the Commission prior to women in occupational social security directives establishing lists of the EU Council common position schemes was in preparation. The indicative limit values concerning being reached on the proposal for a Council Directive on parental leave risks related to exposure to chemical, Directive related to chemical agents was, at the end of the year, still under physical and biological agents at at work. The proposal is expected to consideration in the EEA EFTA work were incorporated into the be adopted under the UK Presidency States. EEA Agreement. in 1998.

During 1997, the Working Group The EEA EFTA experts were also The Directive on the protection of on Equal Opportunities and Family active in shaping EU legislation workers from the risks related to Policy provided input to EFTA under preparation. They submitted exposure to carcinogens at work was comments on the Green Paper on comments to the Commission on a cleared by EFTA experts at the end Work Organisation and the working draft for a second Commission of the year as EEA relevant. paper by the Secretariat on initia­ Directive on the adaptation to tives from the Commission to prevent technical progress of the Directive Finally, through the information Trafficking in Women and Sexual on biological agents in May 1997. and consultation provisions of the Exploitation of Children The Directive is expected to Agreement, EEA EFTA experts were become part of the EEA Agreement invited to two meetings during the

H e a l t h a n d S a f e t y a t W o r k in 1998. At the end of the year, year with EU experts concerning a

a n d L a b o u r L a w EFTA experts began preparations forthcoming proposal for a Directive Most of the year’s work in the for the incorporation of the third on minimum safety and health Working Group on Health and amendment to the biological requirements for the use by work­ Safety at Work was devoted to the agents Directive. ers of temporary work equipment evaluation of directives concerning permitting access to and/or presence at working places at a height (scaf­ folding) FATHERS ON PATERNITY LEAVE In the area of labour law the EEA EFTA States agreed to incorporate Fathers on Paternity Leave is a project run by the City of Reykjavik under the EU’s Fourth into the EEA Agreement the Medium Term Community Action Plan on Equal Opportunities for Women and Men. The Committee Council Directive concerning the on Gender Equality of the City of Reykjavik initiated the project and bears financial posting of workers in the framework responsibility. The project is run in co-operation with the Committee on the Gender Role of Men, of the provision of services. the Federation of Icelandic Women’s Societies, Nordic Housewives’ Association and Reykjavik’s Municipal Employees’ Association. The project has run from December 1996 and will continue EEA EFTA labour law experts also until April 1998. provided input to the comments on the Green Paper on Work organi­ This is a social experiment, where eight fathers, all employees of the City of Reykjavik, are sation, and made some remarks to granted three months paternity leave on full pay. These three months are in addition to the six the Commission concerning the months leave normally granted to the mother of the child. Among the objectives are to raise proposal for a Directive on part- awareness and change attitudes and at the same time contribute to a legislative reform of time work which was adopted by parental leave so that fathers obtain a right to paternity leave. the Social Affairs Council in December 1997. Both Iceland and The fathers, their families, supervisors and colleagues are subject to qualitative research which Norway submitted comments aims to reveal the impact of the leave on the father, the formation of bonds to his child, the through the EFTA Secretariat on division of domestic labour and care and the effects on relations in the workplace. A the White Paper on Sectors and TV-documentary is filmed simultaneously, and one father, a fireman, and his family will be Activities Excluded from the Working followed more closely than the others. Time Directive

The project, which receives 52.000 ECUs funding from the Community side, has had P u b l i c h e a l t h massive public attention in Iceland. In October 1997 the government decided that all male state Throughout the year the EEA employees would be granted 2 weeks paternity leave on full pay from January 1998. EFTA States continued their parti­ cipation in the public health r T ' T h ir t y - s e v e n t h A n n u a l R e p o r t o f ; ir 4 8 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

programmes on Cancer, AIDS and The EU allocated ECU 2.5 million The EEA EFTA countries participate Health Promotion and were also in 1997 for measures to assist the actively in the Fourth Framework invited to participate in the elderly. Under the EEA Agreement Programme. By the end of 1997, Advisory Committee for Cancer and as financial contributors, the about 500 projects were running Prevention. In October 1997 an EEA EEA EFTA States were able to submit with participants from one of the Joint Committee decision incorpo­ applications for funding of various EEA EFTA States. Representatives rating into the EEA Agreement the projects. However, as a result of from the EEA EFTA States partici­ Community programme on drug legal challenges to the European pated in all the management com­ dependence was adopted by the Commission over unauthorised mittees established under the Joint Committee. A draft EEA Joint spending, the Commission will not Fourth Framework Programme. Committee decision to ensure be able to make any payments until The EEA EFTA States are also rep­ EEA EFTA participation in the the matter is settled by the resented on the Board of Governors Community programme on Health European Court of Justice. As a of the Joint Research Centre (JRC) Monitoring is from 1998 was sub­ result of this situation no funds and in CREST. In addition, EFTA mitted to the Commission in were made available for projects for nationals participate in a personal September 1997. older people in 1997. capacity in the Industrial RTD Advisory Committee (IRDAC) Possible EEA EFTA participation in Representatives from the EEA and the European Science and the three newly proposed health EFTA States also participated in the Technology Assembly (ESTA). programmes on rare diseases, pollu­ meetings of the EU contact points These two bodies give advice to the tion related diseases and injury group on older people. An important Commission on R&D policy matters. prevention is currently being dis­ issue discussed in the Group was cussed, and a decision on a possible the preparation of the International EEA EFTA States are further EEA EFTA link to the planned net­ Year of Older Persons in 1999. involved in co-operation on R&D work for surveillance and control through EFTA nationals working of communicable diseases will R e s e a r c h a n d with the Commission services. In probably be taken in early 1998. D e v e l o p m e n t 1997, there were three Norwegians The work of the EU institutions in working as temporary agents at the D i s a b l e d p e o p l e a n d the field of research and develop­ JRC and one Icelandic national t h e E l d e r l y ment focused mainly on the shaping employed as a tem porary agent in Following the end of the third of the Fifth Framework Programme DG XII. In addition, one Icelander Community Action Programme to for R&D. In April 1997, the and three Norwegians worked as assist disabled people (Helios II) in Commission presented its proposal auxiliaries in DG III in the field of 1996, the EEA EFTA States dis­ for a European Parliament and information technologies. During cussed with the Commission possible Council Decision. The proposal the year, two Norwegians working EEA EFTA participation in future was extensively discussed in rele­ as national experts in DG XII EU activities for disabled people. In vant fora, and the EEA EFTA States returned to Norway, leaving one conjunction with this, the EEA took an active part in the debate, national expert from Norway in the EFTA States were invited to partici­ i.a. in the Scientific and Technical COST (European Co-operation in pate in the High Level Group of Research Committee (CREST), the Field of Scientific and Technical Member States’ Representatives on which discussed the content of the Research) Secretariat of DG XII. Disability. A draft EEA Joint research programmes to be part of Committee decision to ensure EEA the Fifth Framework Programme. E d u c a t i o n , T r a i n i n g EFTA participation in Community a n d Y o u t h actions related to disabled people Meanwhile, the implementation of In January 1997, the EFTA Working in 1998 (to be undertaken under the Fourth Framework Programme Group on Education, Training and two Community budget lines) was continued. In the autum n of 1997, Youth presented EFTA comments submitted to the Commission in the European Parliament and the on the Commission Green Paper October 1997. The EEA EFTA Council agreed on a financial on “ Obstacles to transnational States continued to participate in supplement of 150 million ECU for mobility in the fields of education, the new, independent European the programme. The amount was training and research”, and on a Disability Forum, which was to be committed during 1997 and Communication on “ Learning in formerly a part of the Helios II 1998. the information society” programme. ■JL T h ir t y - s e v e n t h A n n u a l R e p o r t o f ir 49 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

During the year, the Commission to the conclusions from the environmental performance of the prepared for the opening up of Amsterdam European Council, EFTA Secretariat based on an the education, training and youth which stressed the essential role OECD Council Recommendation programmes to Central and Eastern played by SMEs in promoting on the same issue. The EFTA European countries (CEECs) and growth and employment. As the Council endorsed the OECD Cyprus. The implications of this for activity will draw funds from the Recommendation and noted the the EEA EFTA countries were dis­ SME programme, it is also relevant measures already taken by the cussed both in the Working Group to the EEA EFTA States. EFTA Secretariat, such as using on Education, Training and Youth recycled paper. The Group also and in Subcommittee IV. E n v i r o n m e n t reviewed EEA EFTA participation The EFTA Working Group on the in the European Environment This was the first year of active Environment met six times in 1996. Agency in Copenhagen. The EFTA involvement from the EEA EFTA The three main tasks of the Group Environment Attaches in Brussels countries in the pilot action on a were to consider for incorporation held regular meetings to prepare European voluntary service for into the EEA Agreement new EC and assist the on-going work of the young people. An EEA Joint legislation in the field of the envi­ Working Group. Committee Decision for the partici­ ronment (decision making), to co­ pation of the EEA EFTA States was ordinate EEA EFTA input to the EC adopted in 1997. This pilot action legislative process (decision shaping) “ INFLUENCE THROUGH will be replaced by a multi-annual and to discuss environmental issues KNOWLEGDE” programme for voluntary service of general interest to the EFTA - A SAVE PROJECT approved by the EU Council at the States. end of 1997. EEA EFTA participa­ Through the EU’s SAVE programme four tion is expected to be decided on Over the year the EEA Joint municipalities, two Norwegian (Bergen and during the first half o f 1998. Committee adopted decisions Nittedal), one Swedish and one Irish, par­ incorporating twelve legal acts on ticipate in a project to raise awareness Finally, towards the end of 1997, integrated pollution and prevention among elected members of local authori­ the Commission presented a control (IPPC), disposal of PCB/PCT ties about efficient and environmentally Communication, “Towards a (chemicals), air pollution question­ friendly use of energy. The aim of the pro­ Europe of knowledge”-, on the future naires, control of major accident ject is to promote sound decisions and ini­ education, training and youth hazards involving dangerous sub­ tiatives in energy use, and to introduce programmes to be launched in stances, genetically modified organisms the notion of global problems so that they 2000. The EFTA Working Group (GM Os), packaging waste, and can be taken into account at a local level. held a briefing in November with eco-labelling It consists of a training programme for the Commission and will continue local politicians on environmental and to discuss the matter. As regards decision shaping, the energy issues. Group had a number of discussions S m a l l a n d m e d i u m - s i z e d with the Commission on policy The project, starting in 1997 and running ENTERPRISES documents and new legislative pro­ through 1998, relies on extensive use of The third multi-annual programme posals. The main issues discussed the Internet and CD-ROM as communica­ for small and medium-sized enter­ were air quality, environmental liabil­ tion tools. “ Influence through knowledge” prises (SMEs) saw its first year of ity, implementation of Community is co-ordinated by the Information Centre im plementation in 1997. The EEA environmental law, drinking water, for Energy Efficiency (Ofe A/S) in Norway EFTA States participate fully in this GMOs, landfill of waste and strategic and the partners are Mats Rydehell AB programme and in the meetings of environment assessments. The (Sweden) and Cork County Energy Agency the so-called “Article 4” Committee, Group also had discussions with (Ireland). It is financed with funds from which is the management committee representatives of Luxembourg and the EU’s SAVE programme (160.000 ECU), for the SME programme. the UK regarding the priorities for the Swedish National Board for Industrial their respective presidencies of the and Technical Development (NUTEK), Cork In November 1997, the Commission EU. Country Council in Ireland, and the launched an activity on Joint Norwegian Ministry of Petroleum and European Ventures for SMEs. This Concerning issues of broader EFTA Energy. The participating municipalities activity, which encourages multina­ interest, the Working Group dis­ also contribute to the funding. tional joint ventures is a follow-up cussed the idea of improving the T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

C iv il P r o t e c t io n tourism, PHILOXENIA (1997 - 2000) Community legislation considered The EFTA Working Group on Civil once the programme is adopted. by the Group included the Directive Protection met once in 1997, prin­ Representatives from EEA EFTA on distance selling and the Directive cipally to discuss the participation States participated in the meetings on misleading advertising so as to of the EEA EFTA States in the pro­ of the program’s Advisory and include comparative advertising. posed Action Programme on civil Management Committee. The Group was also active in com­ protection, which was adopted by menting on Community legislation the EU in December 1997. Co­ C u l t u r e under preparation. Prior to the EU operation with the EEA EFTA Co-operation between the EEA Consumer Council meeting in States has already been established EFTA States and the EU in the November 1997, the EFTA side and a Joint Committee Decision on field of culture continued through submitted written comments to the formal participation in the pro­ EEA EFTA participation in the Commission on the proposal for a gramme is expected in 1998. Kaleidoscope Programme (support European Parliament and Council for artistic and cultural activities Directive on the sale of consumer In 1997, the EEA EFTA States con­ of a European dimension), the goods and associated guarantees. tinued their participation in the Raphael Programme (cultural heri­ work of the Permanent Network of tage) and the Ariane Programme In September, the EFTA EEA States National Correspondents (PNNC) (promotion of books and reading were invited to a meeting with which is the main co-ordinating through translation). EEA EFTA the EU Member States and the forum for Community actions in project applications were submit­ Commission to discuss a prelimi­ the field of civil protection. EEA ted to the EU side, and a number nary draft proposal for a Directive EFTA experts also participated in of them received Community on distance contracts between civil protection seminars and work­ funding. Representatives from EEA suppliers and consumers concerning shops organised by the Commission. EFTA States participated in the financial services. The EFTA States EEA EFTA States’ representatives Management Committees for the subsequently submitted written attended the annual meeting of three programmes. comments. EU Directors General for Civil Protection, which took place in The EFTA Working Group on In relation to Directive 87/102 Brussels in October 1997. They also Cultural Affairs met three times concerning consumer credit: single participated in the Commission’s during 1997, the main work of the mathematical formula for the Advisory Committee on the control Group being the assessment of EEA Annual Percentage Rate of Charge and reduction of pollution caused EFTA participation in the EU cul­ (APR), the EEA EFTA States also by oil and other harmful substances tural programmes. During the year attended an ad hoc expert Group discharged at sea. the EU Council requested that the meeting to study the extent to Commission prepare a proposal on which further harmonisation was T o u r is m the possibility of establishing a necessary. The EFTA Working Group on framework programme in the field Tourism met three times in 1997. of culture. A questionnaire was cir­ An action programme on consumer The first meeting took place in culated to all eighteen EEA countries education and training is expected Vaduz, Liechtenstein and discussed in order to gather information on to begin in 1999. The EFTA EEA the Commission Work Programme the possible content and practical States were invited to attend the for 1997 and the developments in aspects of such a programme. The preliminary discussions on the the tourism sector in the EFTA results are in the process of being topic at a meeting with the States. The second meeting of the evaluated. Commission and EU Member States. Group, in June, finalised EEA EFTA comments to the Commission on C o n s u m e r P r o t e c t io n Other matters which the Group the Communication on Combating The Working Group on Consumer will continue to follow are the pro­ Child Sex Tourism. In its third Protection monitored EU activity posal on a Directive on injunctions meeting, the Group was informed related to consumer protection. for the protection of consumers’ about the tourism sector in This was a busy year in which the interests, which focuses on con­ Switzerland. The Group expressed group covered many issues during sumers’ collective interests and the its interest in participation in its two internal and two joint Action Plan on consumer access to the proposed First multi-annual meetings. justice, which covers individual Programme to assist European redress. EC PROGRAMMES AND ACTION PLANS WITH EFTA PARTICIPATION (PROTOCOL 31 EEA)

RESEARCH MULTILINGUAL States participated in the pilot INFORMATION SOCIETY (MLIS) action (real programme in 98) FOURTH FRAMEWORK (NOVEMBER 1996-1998) PROGRAMME Total budget 15 MECU EMPLOYMENT (1994-1998) Aims to promote the linguistic Total budget 11764 MECU diversity in the information society. EURES (EUROPEAN 13 programmes in different areas EMPLOYMENT SERVICE), e.g. information technology, trans­ EDUCATION, ESTABLISHED IN 1993 port, socio-economic research, TRAINING AND A network of national employment mobility of researchers, medicinal YOUTH services exchanging information research, biotechnology etc. on employment possibilities via a SOCRATES computer system and database. INFORMATION (1995-1999) SERVICES Total budget 850 MECU SOCIAL POLICY Co-operation in education from INFO 2000 school to university level, e.g. ACTION ON HEALTH (1996-2000) student exchanges, inter-university PROMOTION, INFORMATION Total budget 65 MECU co-operation, language education AND TRAINING Supports the creation of a competi­ and improvement of teachers’ skills. (1996-2000) tive market for information services Total budget 35 million ECU for European operators. The focus LEONARDO DA VINCI General fields and factors of pre­ is on the creation of European con­ (1995-1999) vention and approaches which tent in the information services. Total budget 620 MECU concern health promotion. Supports improvement of vocational INTERCHANGE OF DATA training through industry/univer­ ACTION PLAN TO COMBAT BETWEEN ADMINISTRATIONS sity co-operation. CANCER (IDA) (1996-2000) (1995-1997) YOUTH FOR EUROPE Total budget 64 MECU Total budget 175 MECU (1995-1999) Supports projects such as cancer Projects in telematic interchange of Total budget 126 MECU registers and public information data between administrations, e.g. Promotes youth exchanges for and health education campaigns. electronic message and file transfer young people aged 15 to 25 living and data base access. Several sectoral in one or several Member States; sup­ ACTION ON THE PREVENTION projects, e.g. customs and taxes, ports projects and initiatives run by OF AIDS AND OTHER social security, agriculture, culture, young people for young people. COMMUNICABLE DISEASES competition policy. (1996-2000) EUROPEAN VOLUNTARY Total budget 49.6 MECU MULITANNUAL SERVICE Supports actions linked to the pre­ INFORMATION SOCIETY (1998-2000) vention of and fight against AIDS PROGRAMME (MAIS) 60 MECU for 1998-1999 and other communicable diseases. 1998-2001 Projects involving volunteerwork Total budget 25 MECU in the social, environmental and EQUAL OPPORTUNITIES FOR Aims to increase public awareness cultural fields. Develops and sup­ WOMEN AND MEN of the information society especially ports the preparation (linguistic (1996-2000) among citizens and small- and and intercultural) of young Total budget 30 MECU medium-sized enterprises (SMEs), volunteers for projects in other Promotes integration of equal oppor­ and to support further develop­ Member States. Involves mostly tunities into all policies at Commu­ ment of the information society. volunteerorganisations. The EFTA nity, national, regional and local level. T h ir t y - s e v e n t h A n n u a l R e p o r t o f S 52 K- T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

ACTIONS IN FAVOUR OF such as encouraging women and aging wider dissemination of con­ ELDERLY PEOPLE minority entrepreneurs. temporary literature and drama. Total budget 2.5 MECU in 1997 A pilot action including studies on AUDIOVISUAL RAPHAEL demography and analysis of poli­ SECTOR (1997-2000) cies for the elderly. Total budget 30 MECU MEDIA II Encourages development and promo­ ACTION ON THE (1996-2000) tion of European cultural heritage. PREVENTION OF DRUG Total budget 310 MECU DEPENDENCE Supports the development of the ENERGY (1996-2000) European audiovisual industry, Total budget 27 MECU focusing on developing and distrib­ SAVE Aims to improve knowledge of drug uting European films and training (1996-2000) dependence and its consequences, professionals. Total budget 45 MECU and information, education and Contributes to a more rational use training for young persons and CULTURE of energy by improvement of energy former drug users. management at regional and urban KALEIDOSCOPE level, monitoring of energy effi­ SMEs (1996-1998) ciency progress, labelling and stan­ Total budget 26.5 MECU dardisation for energy-using THIRD MULTIANNUAL Promotes culture in Europe by sup­ equipment. PROGRAMME FOR SMEs porting events and cultural projects (1997-2000) at a European level. ALTENER Total budget 127 MECU (1993-1997) Support measures for encouraging ARIANE Total budget 40 MECU small and medium-sized enterprises (1997-1998) Aims to increase the use of alterna­ to become more competitive. Partly Total budget 7 MECU tive energy sources by supporting a continuation of the 2nd SME pro­ Promotes books and reading through actions in the fields of wind power, gramme, and partly new activities support for translation and encour­ solar energy, biomass etc.

AND INSTITUTIONAL QUESTIONS

During 1997 discussions continued approval for placing on the EEA Some clarifications and possible on a number of important issues market and the participation of the changes to the EC legislation are which had arisen in 1996. Although EFTA states in the activities of the awaited with interest by the EFTA the legal and institutional aspects Medicinal Agency in London. On States. Their effect on the EEA of these questions, some of which both issues considerable progress Agreement and the EEA market are mentioned below, are formally was made towards finding mutually remains to be assessed. the responsibility of Subcommittee agreeable solutions. V, solutions were discussed also in Several questions raised in the other Subcommittees and in the Another question on which discus­ complex areas mentioned above Standing Committee of the EFTA sions continued from 1996 was the related to the basic principles of the States. The issues include: (a) final- deliberate release of genetically EEA Agreement, and in particular, isation of an EEA Joint Committee modified organisms into the envi­ to the “two-pillar” structure. They decision incorporating into the ronment and certain national mea­ were addressed with the aim of find­ EEA Agreement a considerable sures taken among the EFTA States ing practical solutions within the number of legal acts in the veteri­ in this context. The developments legal framework of the Agreement nary and phytosanitary areas, (b) in this area within the EC were fol­ which would be politically acceptable medicinal products and their lowed closely by the EFTA States. to the EEA Contracting Parties. T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F rf.e T r a d e A s s o c ia t io n

Subcommittee V recommenced into the EEA Agreement, and (d) within the EEA of the Amsterdam regular meetings from mid 1997 the effect within the EEA of judge­ adjustments to the internal EC after an interval of approximately ments by the Court of Justice of the decision-making process. The sixteen months, and met three European Communities by which a review in progress will also take times. An initiative was taken legal act, which is part of the EEA into account certain aspects of the towards the end of 1997 by the Agreement, has been nullified in Maastricht Treaty and the Acts of EFTA States to resume regular part or in its entirety. Accession to the EU of Austria, meetings of Joint Subcommittee V Finland and Sweden. Discussions with representatives of DG IA and New in 1997 was the discussion on on these issues were continuing at the EC Commission Legal Service. im plem entation into the EEA the end of 1997. Such meetings are expected to take Agreement of the Directive on pro­ place in 1998 on an ad hoc basis. tection of personal data, which has a Two further issues on which deliber­ human rights perspective as well as ations began between the EFTA Several of the issues taken up at the economic and political implica­ States in 1997, and which will con­ meetings of Subcommittee V in tions. Discussions on this issue tinue to be very much in focus in 1997 had their origin in the other were continuing at the end of 1997 1997, are European Monetary Subcommittees and related to hori­ with good prospects for finding a Union and its effects on the EEA zontal questions of a legal and insti­ mutually agreeable solution. and the process of enlargement. tutional nature. These included: (a) Enlargement of the EU will the EEA relevance of, and modalities The conclusion of the Intergovern­ inevitably lead to an enlargement for incorporation of, non-binding mental Conference (IGC) and the of the European Economic Area. acts into the EEA Agreement, (b) resulting Amsterdam Treaty became Indeed the Agreement provides certain legal questions related to a subject of interest among the that: “Any European States becoming Article 103 EEA which requires ful­ EFTA States, particularly with a member of the Community shall filment of constitutional proce­ regard to possible effects on the [... ] apply to become a Party to this dures among the EFTA States before functioning of the European Agreement.” The EFTA States have an EEA Joint Committee decision Economic Area. Subcommittee V a strong interest in the enlargement becomes binding on the EEA began an assessment of the impli­ process and will follow it closely. Contracting Parties, (c) third coun­ cations of the Amsterdam Treaty try provisions in legal acts under and of the possible effects on deci­ consideration for incorporation sion-shaping and decision-taking

THE EEA CONSULTATIVE COMMITTEE (EEA-CC)

The EEA Agreement requires that EFTA Consultative Committee may Liechtenstein Chamber of Industry representatives of the social part­ attend EEA-CC meetings as and Commerce) and Mr. Ari ners in the EU and the EEA EFTA observers. The European organisa­ Skulason (Icelandic Federation of States work together to strengthen tions ETUC (European Trade Labour). The EEA CC is chaired by contacts and to enhance awareness Union Confederation) and UNICE two Chairmen; one from the EFTA of the economic and social aspects (Union of Industrial and Employers’ side, Mr. Jon Vea and one from the of integration. To this end, the EEA Confederations of Europe) may Economic and Social Committee, Consultative Committee (EEA-CC) send one observer each. Mr. Tom Jenkins. was established. It is composed of nine members of the EFTA The EEA-CC meetings are pre­ The EFTA Consultative Committee Consultative Committee coming pared by a Bureau of six in which and the Economic and Social from the EEA EFTA States, and the EFTA members are Mr. Jon Vea Committee have established the nine members of the Economic (Confederation of Norwegian so-called “Osmosis Procedure” and Social Committee of the EC Business and Industry), Mr. Hans which enables EFTA Consultative (ESC). Two Swiss members of the Brunhart (Representative of the Committee representatives to T h ir t y - s e v e n t h A n n u a l R e p o r t o f JH ® r 5 4 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

participate in the work of the participated directly in the Economic emphasise that combating unem­ Economic and Social Committee, and Social Committee’s work in ployment is one of Europe’s major and vice versa, where mutual bene­ three areas; employment and social challenges and state that the ability fits can be derived. The procedure policy, the single market and energy. to make positive use of new tech­ has been important for strengthen­ nologies and maintain the skills ing the co-operation between the The EEA-CC held one meeting in and competence required will be two Committees, facilitating the 1997, in May in Brussels. The main decisive factors in the future devel­ exchange of information and points on the agenda were the sin­ opment of individuals, companies views, and avoiding duplication of gle market, employment, the infor­ and nations. work. The EFTA side has thus been mation society, the environment, able to present EFTA social part­ the Intergovernmental Conference The EFTA Consultative Committee ners’ standpoints during ECOSOC and enlargement. Joint resolutions is described on page 32. discussions. Under this “Osmosis were adopted on employment and Procedure” EFTA representatives the information society. These

The EEA JPC is composed of twelve of developments in the areas of the Mr. Otto Biichel (Patriotic Union, members from the EFTA national recommendations), co-rapporteurs Liechtenstein) and Mr. Jonas parliamentary delegations and twelve Mr. Haakon Blankenborg, (Labour Sjostedt (GUE/NGL - Sweden) and members from the European Party, Norway) and Mr. Gary Titley the Information Society and Parliament. The President of the (PES, United Kingdom); The the European Economic Area, co­ EEA )PC during 1997 was Mr. Single Market in Energy, co-rap- rapporteurs Ms. Johanna Boogerd- Vilhjalmur Egilsson, (Independence porteurs Mr. Hjorleifur Guttormsson Quaak (ELDR, Netherlands) and Party, Iceland). The Vice-President (People’s Alliance, Iceland) and Ms. Mr. Gunnlaugur Sigmundsson was Mr. Soren Wibe, MEP (PES, Marjo Matikainen-Kallstrom, (PPE, (Progressive Party, Iceland). The Sweden). The JPC held two meetings Finland); Freedom of Movement of JPC also adopted resolutions on all during the year, (the eighth and Capital and Financial Services, co­ of the above-mentioned topics. ninth meetings of the JPC), as well rapporteurs Mr. Einar Steensnaes as four meetings of the JPC bureau. (Christian Democratic Party, Preparatory discussions among Norway) and Mr. Soren Wibe (PES, EFTA parliamentarians were held As at previous meetings, the JPC Sweden); A Common European in meeting of the MPS (see page 33 engaged in a dialogue with the EEA Transport Policy, co-rapporteurs above). Council, the Joint Committee and the EFTA Surveillance Authority on the functioning of the EEA and on progress regarding prior resolutions of the JPC. Discussions also centred on the Amsterdam Treaty and its pos­ sible effects on the EEA Agreement.

The JPC reported on the following subjects in 1997: The Functioning of the EEA Agreement during 1996, including Comments on the EEA Joint Committee's Annual Report for 1996 (this report contained at annex an overview of past recom­ mendation of the JPC and the status Parliamentarians at the 9th meeting of the EEA JPC, Brussels, October 1997 T h ir t y - s e v e n t h A n n u a l R e p o r t o f 55 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

B a c k g r o u n d a n d A im s When the Agreement on Grants Loans % j (million ECU) (million ECU) the European Economic 121.5 364.5 24.3 Area was signed the | Greece | Ireland 35.5 106.5 7.1 ! EFTA States also created | Northern Ireland 11.0 33.0 2.2 j a Financial Mechanism | Portugal 105.0 315.0 21.0 I in support of the poorer | Spain, 10 regions 227.0 681.0 454 regions of the EU. Thus, 1 Total 500.0 1500.0 100.0 the Financial Mechanism has been running since 1994 and before its ter­ mination at the end of 1998 it will have provided grants of total of ECU 366.138 million, or 73 Rehabilitation of the Monastery of ECU 500 million and interest per cent of the total grant facility of Simonos Petras rebates for European Investment ECU 500 million. The distribution ECU 1.15 million for rehabilitation Bank (EIB) loans totalling ECU by country is shown in Figure 8. and construction works at the 1,500 million. monastery to supplement assistance The total grants committed up to already granted by the Financial The Financial Mechanism gives 31 December 1997 all went to the Mechanism. priority to the following sectors: priority sectors. The environment Environment (including urban sector has the highest share of total Corfu Old Town Renovation development), transport (including grant funds committed (61 per cent). ECU 4.13 million for renovation transport infrastructure), and edu­ A wide variety of environmental and development of the technical cation and training. The projects projects have benefited from the infrastructure in the old town, span very diverse projects such as Mechanism, including environ­ including water distribution and urban development in Toledo in mental monitoring on land and sewage, telecommunication and Spain, the development of the at sea, as well as urban rehabilita­ electricity transmission, and street Lanzarote airports, and rehabilita­ tion, including cultural heritage pavement restoration. tion of monasteries in Greece. The preservation. shares of the beneficiary countries I r e l a n d are illustrated in Table 1. Twenty-two per cent of the total Technical Education II grants committed went into educa­ ECU 13.0 million for investments Approvals of projects are granted by tion and training projects, while 16 in 13 educational institutions at the Financial Mechanism Committee, per cent went to the transport sector. tertiary level in co-financing with representing the donor countries the European Regional Development Iceland, Liechtenstein and Norway In 1997, grant applications for a Fund (ERDF). and the European Commission, total of ECU 74.3 million were which took over the commitments approved for the following projects: S p a in of the former EFTA states Austria, Lanzarote A irp o rt Finland and Sweden after their G r e e c e ECU 7.0 million for expansion of accession to the Union in 1995. Environmental and urban airport facilities in co-financing with development in Kalamata the European Regional Development A p p r o v a l s o f G r a n t s ECU 10.35 million for urban recon­ Fund (ERDF). By the end of December 1997, the struction and introduction of an Financial Mechanism Committee environmentally friendly public had approved applications for a transport system. M

T h ir t y - s e v e n t h A n n u a l R e p o r t o f BE 5 6

Via de la Plata in Extremadura sector received 63 per cent of the P o r t u g a l ECU 15.7 million for the restora­ total interest rebate funds commit­ Solid waste disposal - Valorsul tion and protection of historical ted. The projects mainly concern ECU 46.2 million for a municipal buildings and urban environments road building and expansion of air­ waste incineration plant for waste and construction of tourist facili­ port facilities. 34 per cent went to handling in the Lisbon metropolitan ties on several locations along the environmental projects and 3 per area. historical Via de la Plata. cent went to the educational sector. Solid waste disposal - LIPOR Urban Renewal in Toledo In 1997 the following interest rebate ECU 46.2 million for a municipal ECU 22.94 million for renovation applications concerning a total EIB waste incineration plant for waste and urban rehabilitation works in loan portfolio of ECU 466.7 million, handling in the Oporto metropolitan the historic centre, pedestrianisa- were approved: area. tion and construction of car parks.

G r e e c e S p a i n A p p r o v a l s o f South Pathe M o torw ay ICO Environmental I n t e r e s t R e b a t e s ECU 100.4 million for upgrading Global Loan II As of 31 December 1997, the to motorway standard of the princi­ ECU 51.6 million for financing of Financial Mechanism Committee pal trunk road of the stretches con­ small and medium-scale environ­ had approved applications relating necting Yliki-Aghios Konstantinos mental investments undertaken by to total E1B loans of ECU 1,252 and Raches-Aghii Theodori. private and public entities. million, or 83 per cent of the avail­ able interest rebate facility. The I r e l a n d BCL Environmental distribution by country is shown Irish Roads Global Loan II in Figure 9. ECU 40.0 million for four road im­ ECU 18.0 million for financing of provement schemes, i.e., Balbriggan small and medium-scale environ­ The total interest rebates committed By-pass, Dunleer-Dundalk Road, mental investments undertaken by up to 31 December 1997 benefited Arklow By-pass and Curlew private and public entities. the priority sectors. The transport Mountains By-pass. T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

Canary Islands Airports ECU 68.0 million for upgrading and expansion of four airports on Balance as of 3 1 December 1996 the Canary Islands. C rediting Replenishment in 1997 Accrued interest in 1997 Technical Education in Valencia D ebiting ECU 15.0 million for the extension Interest subsidies of facilities and provision of new Grants equipment for several universities Liaison Officer function costs in the region of Valencia. Balance as of 3 1 December 1997 281 003 164.01

Leon - Burgos M o to rw a y I ECU 24.3 million for the construc­ Table 2 tion of a stretch motorway con­ necting Onzonilla - Santas Martas and Sahagun - San Marnes de Regional Road Network in T h e F in a n c ia l Campos of the Leon-Burgos A stu rias M e c h a n is m a c c o u n t Motorway. ECU 15.0 million for repair and a t t h e E I B upgrading of several road stretches The contribution in 1997 from Reconstruction of Infrastructure in Asturias. the EEA EFTA States and the in Andalucia Commission amounted to ECU ECU 18.0 million for the restora­ Improvements to Education 130 million. tion of base environmental and Infrastructure in Galicia transport infrastructure following ECU 24.0 million for the construc­ As of 31 December 1997, the balance severe winter flooding. tion and rehabilitation of mainly of the Financial Mechanism account secondary and vocational school was ECU 281,003,164. The account blocks at different locations in transactions are summarised in Galicia. Table 2

OANS BENEFITpG FROM INTEREST REBATES BY COUNTRY |jn EGU^illic^as of 3 1.12.1997)

Uncommitted

Committed

■I■ I 66 - 50 3 3 0 Jmw 7s I |F W U ff I GREECE IRELAND NORTHERN PORTUGAL SPAIN IRELAND S' T h ir t y - s e v e n t h A n n u a l R e p o r t o f ;fc7S r 5 8 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

The Office of the Statistical Adviser nature of statistics has been under­ process of being incorporated into in Luxembourg (OSA) was created lined through the links to other Annex XXI of the EEA Agreement. in 1991 as a liaison office between areas of EEA co-operation such as In 1997, several important new the Statistical Office of the education, social protection, health, legal acts were cleared at expert European Communities (Eurostat) tourism, transport and environ­ level for incorporation into the and the statistical authorities of the ment, which often provide funds EEA Agreement. The most impor­ EFTA countries. The legal basis for for statistical activities. The frame­ tant concern Structural business the EEA co-operation in the field of work for EFTA EU statistical statistics, Community statistics statistics - including the Office of co-operation with the Central (“Statistical Law”), Statistics on the the Statistical Adviser - is the and east European countries and level and structure of labour costs, revised Protocol 30 to the EEA the Mediterranean countries was and a European system of national Agreement. As this Protocol was further strengthened in 1997 (see and regional accounts in the linked to the Commission statisti­ page 28 above). Community. In addition, several cal programme ending in 1997, a amendments to existing legislation newly revised Protocol 30, adapted The statistical co-operation between were discussed and cleared by to the new Commission statistical the EU and EFTA is mainly organised EFTA experts, such as Surveys programme, is being prepared. The within the EEA framework, but an of milk and milk products and revised Protocol also takes account important part of the co-operation Surveys on the structure of agricul­ of the “Statistical Law” (Council takes place between the EU and tural holdings. Regulation (EC) No 322/97 on EFTA, including Switzerland. Community Statistics), which was There have been procedural delays adopted by the Council in 1997. P articipation in in incorporating new legal acts into Annex XXI to the EEA Agreement E u r o s t a t c o m m i t t e e the EEA Agreement. However, as lists the specific legal acts governing w o r k in 1 9 9 7 most of the acquis is non-contro- data collection and transmission in The high level of meeting activity versial and has been through exten­ the field of statistics, and a consid­ within the field of statistics continued sive consultation with the EFTA erable update of this Annex is in 1997, both for the preparation side during the decision-shaping under way. and implementation of legislation, process, the EFTA States are and for the exchange and develop­ preparing for implementation The work is supervised by a ment of methodologies, as well as simultaneously with the EU and Working Group of the Heads of to follow-up data collection. The subsequent EEA procedures. EFTA National Statistical Institutes EFTA side was well represented in (two meetings in 1997), an Expert meetings: In 1997 Norway partici­ Relatively few major new legal Group on the Management of the pated in 112 out of 163 meetings acts are foreseen in the field of sta­ EEA Statistical Programme (two on statistics, while Iceland partici­ tistics over the next years, though meetings) and an Expert Group on pated in 33. Switzerland participated more implementing decisions/ Legislation (one meeting). as observer in 80 meetings. Most of regulations linked to legal acts the EEA-relevant areas were thus already adopted can be expected. In 1997, the good level of EEA co­ covered by EFTA-participation. operation in the field of statistics EFTA EXPERTS was maintained, as is reflected in D e v e l o p m e n t o f at Eurostat and the high number of EFTA partici­ LEGISLATION IN THE FIELD JOINT PROJECTS pants attending Eurostat meetings, OF STATISTICS The secondment of EFTA experts the presence of several national sec­ Over the recent years a substantial to Eurostat units is important onded experts working in Eurostat, number of new legal acts in the in order to ensure the transfer and the operation of a number of field of statistics have been adopted of knowledge and to promote joint projects. The horizontal by the EU Council and are in the the integration of the European Statistical System. Eurostat has also data products, a systematic review 30 per cent in the 1995 Yearbook. A expressed interest in maintaining a of the presence of EFTA Statistics significant improvement has thus high level of expert involvement. In in existing Eurostat products was taken place over the last two years. 1997, several experts from Norway agreed upon. were working within Eurostat, rep­ Finally, a review was made of a resenting about 38 person months The evaluation performed in 1997 selection of general and specialised of work, and participating in work revealed that the level of presence publications covering eight main in the following areas: distributive of EFTA statistics in the Eurostat Eurostat themes. The average per­ trade, social nomenclatures/registers, reference environment is still unsatis­ centage inclusion for Iceland and fishery statistics and informatics factory. While new EU member Norway in this evaluation was 64.5 support. states had an average of 46 per cent per cent, compared to an estimate presence, the EFTA coverage of 36.5 per cent for the preceding Projects co-financed by Eurostat (Norway and Iceland) was only 21 year. This level was above the and by the EFTA States give further per cent. target set (60 per cent) in order to opportunities to enhance method­ increase the EFTA contribution to ological development and to deepen Of particular importance is a the dissemination tasks as stipulated co-operation. In 1997, the following presence in the Eurostat reference in Protocol 30. In some publica­ projects were initiated: Business environment as this database is tions there was 100 per cent inclu­ register (Liechtenstein), Emission expected to form the basis for all sion of EFTA data - taking into structure information system other dissemination. In some areas, account non-obligations to deliver (Norway), Environmental and nat­ such as balance of payments, data. ural resource accounting (Norway) demography, migrations and com­ and Price project for capital goods munications the situation is satis­ In general, the review in 1997 has (Norway). factory, but there is a strong need formed a useful basis both for for improvement in several areas. A Eurostat and the EFTA side to Dissemination of EFTA review was also made of the target statistical areas where STATISTICS Eurostat Yearbook, which is an EFTA is under-represented and to According to Protocol 30 of the important publication targeting a set priorities for improvement. EEA Agreement, Eurostat has the general market. This review indi­ Increased knowledge about and responsibility to disseminate statis­ cated that around 41 per cent of dissemination of joint EEA statis­ tics on the whole of the EEA. In possible data were included for tics will therefore remain a priority order to increase the level of inclu­ Norway and Iceland in the during the next year. sion of EFTA statistics in Eurostat Yearbook, compared to around T h ir t y - s e v e n t h A n n u a l R e p o r t o e 6 0 w r T h e E u r o p e a n F rf.f. T r a d e A s s o c ia t io n ADMINISTRATION

The structure of the EFTA Secretariat reflects the division of activities covered by EFTA. The EFTA Secretariat employs approximately 58 staff full-time, of which one third is based in Geneva and two thirds in Brussels. Secretariat headquarters in Geneva provides support to the EFTA Council and on third country relations and also services the operation of certain conventions and schemes. In Brussels, the Secretariat assists the Member States on EEA matters, while statistical co-operation on the basis of the EEA Agreement is handled in Luxembourg by the Office of the Statistical Adviser which has a staff of three. There is one customs officer in Paris working on co-operation with third countries. The Secretariat is headed by a Secretary-General, who is assisted by two Deputy Secretaries-General, one located in Geneva and one in Brussels.

The task of modernising financial long-term commitments related to The total budget for 1997 was CHF. control systems in the Secretariat special projects such as standardisa­ 18.134,000, with contributions was completed in 1997 with the tion and statistical co-operation. being made as follows: Iceland 3.79 approval by the EFTA Council of per cent; Liechtenstein 1.26 per new Financial Rules and The budget for 1998 was for the cent; Norway 44.26 per cent; and Regulations on 18 December. The first time prepared in three curren­ Switzerland 50.69 per cent. aim of these regulations is to bring cies. The aim is to minimise the EFTA into line with best modern effects of currency fluctuations by practice through compliance with budgeting in the currencies of the International Accountancy principal expenditure, in EFTA’s Standards (IAS). Thus financial case, the Swiss Franc, the ECU and control will be improved for both the Belgian Franc. short-term expenditure and for

TRANSLATION AND PUBLICATION

• • 1 -"1 - 1 1 .- •-) ■■■ . i ■ i i .. I,

The Translation and Publication During 1997, over five hundred dif­ The Translation and Publication Unit is responsible for translating ferent items from the EFTA and EU Unit is also responsible for updat­ EEA relevant texts into Icelandic institutions were registered for ing the electronic version of the and Norwegian, and for publishing translation and publication. The Annexes and Protocols to the EEA the EEA Supplement to the Official total amount of printed material Agreement which is available on Journal of the European Communities was just short of 2,000 pages in the EFTA homepage. ■in those two languages. The EEA each language, published in 53 Supplement is, as a rule, published issues of the EEA Supplement. once a week and contains material from the EEA Joint Committee, the Close to half of all the material Standing Committee of the EFTA printed in the EEA Supplement in States, the EFTA Surveillance 1997 was in the form of EEA Joint Authority and the EFTA Court, as Committee Decisions, which are well as material from the EU published together with the rele­ institutions. vant EU act incorporated into the EEA Agreement by the Decision. T h ir t y - s e v e n t h A n n u a l R e p o r t o e T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

MUTUAL RECOGNITION OF TESTS AND INSPECTIONS

In the seventies the EFTA States Pharmaceutical (Naantali - 71 delegates from instigated a number of Conventions In s p e c t io n 30 countries) and Schemes on the mutual recog­ Co-operation Scheme nition of tests and inspections, the (PIC/S) A two PIC-PIC/S seminars on aim of which was to maintain stan­ The Pharmaceutical Inspection Co­ blood and blood products dards and consumer protection in operation Scheme (PIC Scheme) is (Brunn, Austria - over 70 dele­ individual signatory countries while run in parallel with the PIC gates from 18 countries repre­ allowing other signatory countries Convention and was set up to sented) to carry out conformity tests and accommodate problems faced by inspections, thus facilitating trade. EU signatories, whose EU obliga­ A PIC-PIC/S expert circle on The Conventions, which were tions do not allow such formal medicinal gas (Sigtuna, Sweden extended to a number of non-EFTA individual arrangements with third - 33 participants from 17 States, are independent and are now countries. It is an informal and countries) serviced by the EFTA Secretariat as flexible arrangement between the a matter of practical convenience. inspectorates of the present PIC A Visit to Spain by a delegation Contracting States but also open to of the PIC/S Committee (one Pharmaceutical the participation of the inspec­ week) Inspection Convention torates of other countries. (PIC) A PIC/S working group for the The Pharmaceutical Inspection The PIC Scheme has been joined elaboration of internationally Convention (PIC) was initiated in by seventeen inspectorates (from harmonised good manufactur­ EFTA and signed in October 1970 Australia, Belgium, the Czech ing practice (GMP) for active by all the EFTA countries of the Republic, Denmark, Finland, pharmaceutical ingredients time (i.e. Austria, Denmark, Finland, France, Hungary, Iceland, Ireland, (Helsinki - including represen­ Iceland, Liechtenstein, Norway, Liechtenstein, the Netherlands, tatives from the EU, the US Portugal, Sweden, Switzerland Norway, the Slovak Republic, FDA, Asian Pacific Economic and the United Kingdom). The Sweden and two from Switzerland). Co-operation, and China) Convention has since been joined Most of the remaining PIC (i.e. by Hungary, Ireland, Romania, signatories to the PIC Convention) P harmaceutical Germany, Italy, Belgium, France authorities are expected to join the E v a l u a t io n and Australia. Scheme in the near future and R e p o r t S c h e m e other countries have shown inter­ (PER) The original scope of the Convention, est. The application for participa­ In 1979 the Scheme for the Mutual which was pharmaceutical inspec­ tion in the Scheme made by the Recognition of Evaluation Reports tion, has been extended over the Spanish inspectorate was accepted, on Pharmaceutical Products years to co-operation in many and Spanish participation will (PER Scheme) entered into force related areas including the training begin on 1 January 1998. between the Austrian, Finnish, of inspectors and laboratory per­ Norwegian, Swedish and Swiss sonnel, the mutual recognition of The main PIC and PIC/S joint registration authorities. quality standards of inspectorates, activities in 1997 were: and co-operation in such fields as The PER Scheme is an arrangement blood products, radio-pharmaceu- A PIC-PIC/S joint Committee of a fairly informal nature between ticals and medicinal gases. meetings (Naantali, Finland the authorities of the different and Uppsala, Sweden) countries concerned. Since 1979 The Convention is supervised by the Scheme has been joined by a Committee of Officials, which A PIC/S Seminar on the manu­ the registration authorities of meets twice a year and is assisted by facture and inspection of active Germany, the United Kingdom, a number of working groups. pharmaceutical ingredients Italy, Canada, the Netherlands, T h ir t y -s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

Australia, Hungary, South Africa, and acceptance of the Czech and international standards (ISO Ireland, New Zealand. The Czech registration authority as a and CEN). Republic is expected to join in PER Participating Authority 1998. (as from 1.1.98). The number of articles bearing the Convention marks has increased The Scheme allows for the A Preparation of the 1998 Seminar steadily since the entry into force of exchange of standardised evalua­ for assessors to be held in the Convention, amounting at tion reports on pharmaceutical Finland present to over 13 million per year products for which registration is and the Convention marks are applied, without entailing obligato­ A Processing of more than 70 regarded in many third countries as ry approval, between members. requests for evaluation reports a reliable quality mark.

The Scheme is supervised by the A Circulation of lists of new The operation of the Convention PER Committee, which meets at chemical entities registered in is supervised by its Standing least once a year. Rules and guide­ the PER countries Committee, which meets twice a lines applied under the Scheme are year. harmonised as far as possible H a l l m a r k i n g with those of the EU and close co­ C o n v e n t i o n Main activities under the operation has been established The Convention on the Control Hallmarking Convention in 1997: between the PER Committee and Marking of Articles of Precious and the London based European Metals (Hallmarking Convention) A Meetings of the Standing Agency for the Evaluation of signed in 1972 by the then EFTA Committee (Geneva and Medicinal Products (EMEA). countries Austria, Finland, Norway, Brussels) Portugal, Sweden, Switzerland and Main PER activities in 1997: the United Kingdom, entered into A Preparation of the revision of force in 1975. It has since been the Convention and its techni­ ▲ Meeting of the PER Committee joined by Denmark, Ireland and cal annexes in Pretoria the Czech Republic, while Poland is expected to join in 1998. A number A Evaluation of the Lithuanian A 6th seminar for assessors in of other countries have expressed hallmarking system by a Dublin with participation of an interest. delegation of the Standing more than 40 assessors from Committee 17 countries The Hallmarking Convention introduced the first international A Participation in ISO and CEN A Voluntary and informal co­ hallmark. This enables national technical Committees operation with the EMEA with assay offices designated under the a view to facilitating the recog­ terms of the Convention to apply a A Organisation of a second “Round nition of European marketing mutually recognised control mark Robin” exercise for the assay of authorisation in the PER coun­ to articles of gold, silver and palladium tries platinum following agreed testing methods. The Convention has A Evaluation of the Czech phar­ been updated several times to keep maceutical registration system up with technical developments APPENDICES EFTA MINISTERIAL MEETING GENEVA, 19 JUNE 1997 COMMUNIQUE

EFTA held its spring Ministerial meeting in Geneva on 19 June 1997 under the chairmanship of Federal Councillor Jean-Pascal Delamuraz, Switzerland. Ministers reviewed EFTA relations with the EU, notably in the framework of the EEA. They noted the continued good functioning of the EEA Agreement and the participation of the EFTA/EEA States in the development and realisation of the internal market. Ministers expressed great satisfaction at the signature of a free trade agreement with Morocco and declarations on co-operation with Jordan and Lebanon. These events constituted important steps for EFTA in the M editerranean region. The progressive expansion of the EFTA network of agreements would create the necessary preconditions for companies based in EFTA countries to participate in a future Euro-Mediterranean zone. Ministers also pointed to their intention to discuss the establishment of links with countries and regional groupings further afield and undertook to set common priorities and define strategies in this regard. Finally, Ministers adopted an agreement on Mutual Administrative Assistance in Customs Matters among the EFTA countries and noted the improvement of the environmental performance of the EFTA Secretariat.

Mr. Bjorn Tore Godal, Minister for Foreign Affairs, Norway; Mr. Driss Jetto, Minister of Commerce and Industry, Morocco; Mr. Jean-Pascal Delamuraz, Federal Councillor, Switzerland; Ms. Andrea Willi, Minister for Foreign Affairs, Liechtenstein and Mr. Gudmundur Biarnason, Minister of Agriculture and Environment, Iceland at the EFTA Ministerial Meeting, June 1997.

EFTA-EU CO-OPERATION significant improvements had been EFTA/EEA Ministers welcomed the Ministers noted that the EEA achieved in the processing of decisions progress made on a number of sub­ Agreement continued in general to on the EFTA side. The EFTA States stantive matters, including preparations function well. Thirty-six decisions had made increasing use of the opportuni­ for the incorporation of veterinary been adopted by the EEA Joint ties for consultation and information acquis and legislation on medicinal Committee since Ministers had last under the Agreement, providing input products, as well as on the negotiation met, incorporating fifty-three EC acts on a wide range of proposals for legisla­ of mutual recognition agreements on into the Agreement. Following the tion and on policy papers from the conformity assessment with a number implementation of new procedures EU side. of third countries, in parallel with the EU. T h ir t y - s e v e n t h A n n u a l R e p o r t o f M 6 4 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

EFTA/EEA Ministers underlined the Ministers noted that free trade negotia­ EFTA INTERNAL WORK great importance they attached to tions with Tunisia were well underway Ministers decided to extend to all EFTA co-operation with the EU in the field of and similar talks with Cyprus were countries the substance of both the foreign policy. In this context, they foreseen to begin later in the year. Agreement on Mutual Administrative welcomed that the EFTA/EEA States Assistance in Customs Matters recently had joined a number of policy initia­ Ministers pointed out that these events concluded between Switzerland and tives by the EU. They expressed their constituted an important step for EFTA the EC and Protocol 11 of the EEA wish to further extend their co­ in the Mediterranean region. The pro­ Agreement by updating the Stockholm operation with the EU in this area. gressive expansion of the EFTA net­ Convention. They stressed that this rep­ work of agreements would create the resented a significant qualitative EFTA/EEA Ministers re-appointed the necessary preconditions for companies improvement in relations among the three members of the EFTA Surveillance based in EFTA countries to participate EFTA States. Authority College for a period of four in a future Euro-Mediterranean free years, namely Mr. Hannes Hafstein trade zone. Ministers noted that appropriate (Iceland), Mr. Bernd Hammermann measures had been taken to pursue (Liechtenstein) and Mr. Knut Almestad Ministers recalled that the EFTA States an active policy of improving the envi­ (Norway). had now concluded 13 free trade agree­ ronmental performance of the EFTA ments and 7 declarations on co-opera­ Secretariat and endorsed OECD Ministers noted the progress report tion with partners in central and Council Resolution (C(96)40/FINAL) on bilateral negotiations between eastern Europe and the Mediterranean concerning that organisation’s environ­ Switzerland and the EU. region. Existing free trade agreements mental performance. were regularly reviewed and revised in EFTA THIRD-COUNTRY light of international trade policy Ministers highlighted the valuable RELATIONS developments in such areas as technical role of the EFTA advisory bodies. The Ministers expressed great satisfaction at regulations, public procurement, intel­ Parliamentary and Consultative the growing importance of EFTA’s lectual property rights, services, invest­ Committees had not only contributed third-country relations. Only eighteen ment and establishment. In 1997 such to EFTA’s internal work but also months after the signature of the decla­ reviews had already taken place with strengthened contacts with their coun­ ration on co-operation with Morocco Hungary, Estonia, Latvia and Lithuania. terparts in the European Union and in the margins of the EFTA Ministerial Ministers pointed to their intention to third countries. meeting in Zermatt, a free trade agree­ discuss the establishment of links with ment was being signed. The aim was the other countries and regional groupings NEXT MEETING gradual establishment of a free trade further afield. They undertook to The next meeting of the Council at area for industrial goods and fish by the review their common policy towards Ministerial level would take place in year 2010. third countries in order to set some Geneva on 3 and 4 December 1997. common priorities and define strate­ Ministers welcomed the signature of a gies on how certain countries and declaration on co-operation between regional groupings were to be the EFTA States and Jordan on the one approached. In this context, Ministers hand, and between the EFTA States and noted that contacts had already been Lebanon on the other. This was the first taken up with the aim of jointly dis­ step on the road to free trade between cussing possible forms of co-operation. the EFTA States and those two countries. T h ir t y - s e v e n t h A n n u a l R e p o r t o f 65 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

EFTA MINISTERIAL MEETING GENEVA, 4 DECEMBER 1997 COMMUNIQUE

EFTA held its autumn Ministerial meeting in Geneva on 4 December 1997 under the chairmanship of Ms. Hilde F. Johnson, Minister of International Development and Human Rights, Norway. Ministers reviewed EFTA relations with the EU, notably in the framework of the EEA. They noted the continued good functioning of the EEA Agreement and the participation of the EFTA/EEA States in the development and realisation of the internal market. Ministers welcomed the prospect of discussions on free trade relations with Canada and the fact that informal EFTA contacts had been established with other countries and regional groupings outside Europe. Ministers recalled that the continuing expansion of EFTA’s network of agreements in the Mediterranean would create the necessary preconditions for companies based in EFTA countries to participate in a future Euro-Mediterranean free trade zone.

EFTA-EU CO-OPERATION Ministers noted that the EEA Agreement continued, in general, to function to the satisfaction of all parties. Sixty-seven decisions had been adopted by the EEA Joint Committee since Ministers had last met, incorpo­ rating over 80 EC acts into the Agreement. Decisions had also been adopted allowing for EFTA participation in a number of further programmes. The implementation of new procedures on the EFTA side had contributed to speeding up the decision-making. The EFTA side and the European Commission continued to study ways of further improving this process. Ministers noted that EFTA experts had begun to partic­ ipate in additional EC committees where participation has been deemed to be in the interests of the good func­ Ms. Hilde F. Johnseti, Minister for International Development and tioning of the EEA by both sides. Human Rights, Norway

EFTA/EEA Ministers welcomed the fact on the negotiation of mutual recogni­ following the recent meeting of the that further progress had been made on tion agreements on conformity assess­ EEA Council, the EFTA/EEA States a number of substantive matters, ment with a number of third countries, would study closely the Amsterdam including preparations for the incorpo­ in parallel with the EU. Treaty and its possible implications ration of veterinary acquis and legisla­ for the EEA Agreement. Both sides would tion on medicinal products, as well as EFTA/EEA Ministers agreed that, keep the matter under joint review. As for EU enlargement, EFTA/EEA Ministers noted that it would be neces­ sary to find suitable arrangements for addressing jointly with the EU the pos­ sible consequences of enlargement for the functioning of the EEA Agreement.

Ministers pointed at the fruitful exchange of views held at the annual meeting of Ministers of Finance and Economic Affairs from EU and EFTA countries in Luxembourg on 12 October 1997, including on best practice policies to enhance growth and employment in Europe. Ministers had also discussed the impact of the establishment of EMU and noted that EMU would pro­ vide a framework for monetary stability, budgetary discipline and growth.

Ministers noted the report on bilateral Swiss Federal Councillor Mr. Jean-Pascal Delamuraz negotiations between Switzerland and the EU. h ir t y s e v e n t h n n u a l e p o r t o f 66 fv T - A R • m T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

EFTA THIRD-COUNTRY RELATIONS Ministers expressed great satisfaction at the dynamic evolution of EFTA’s third- country relations and recalled that, at their last meeting, they had undertaken to review their common policy towards third countries in order to set priorities on how certain countries and regional groupings beyond Europe were to be approached. Ministers pointed out that this review was beginning to yield tangible results.

Canada had expressed its wish to have free trade with EFTA and discuss the matter with EFTA States. Ministers welcomed this and stated their willingness to explore the possibility of establishing such free trade relations. A first meeting to discuss the matter was to take place Mr. Halldor Asgrimsson, Minister for Foreign Affairs, Iceland in the first half of 1998 in the context of bilateral co-operation arrangements talks on draft free trade agreements regulations, public procurement, intel­ between Canada and individual EFTA with both Cyprus and Malta had lectual property rights, services, invest­ States. Ministers added that they would recently been held and a first round of ment and establishment, and mutual attach great importance to relations negotiations with Cyprus was foreseen administrative assistance in customs with Canada in EFTA’s future work. in early 1998. Informal talks with matters. In the second half of 1997 such Palestinian representatives in preparation a review had already taken place with Ministers noted with interest that infor­ for negotiations next year on an interim Israel. Further reviews with Bulgaria, mal EFTA contacts had been made with free trade agreement with the PLO had Romania and Turkey were to be under­ the MERCOSUR countries, the GCC taken place. Free trade negotiations taken shortly. and South Africa with the aim of assessing with Jordan were also to begin in 1998. modalities for enhanced trade relations. ADVISORY BODIES Ministers recalled that the EFTA States Ministers highlighted the valuable The gradual expansion o f EFTA’s netw ork had already concluded 13 free trade role of the EFTA advisory bodies. of agreements in the Mediterranean was agreements and 7 declarations on co­ The Parliamentary and Consultative continuing apace in order to create the operation with partners in central and Committees had not only contributed to necessary preconditions for companies eastern Europe and the Mediterranean EFTA’s internal w ork b ut also strength­ based in EFTA countries to participate region. Existing free trade agreements ened contacts with their counterparts in in a future Euro-Mediterranean free were regularly reviewed and upgraded the European Union and third countries. trade zone. Free trade negotiations with in light of international trade policy Tunisia were well underway. Technical developments in such areas as technical WTO Ministers reiterated their unequivocal support for the multilateral trading sys­ tem and noted with satisfaction the good functioning of the WTO. They agreed that all efforts should be made to maintain a complementary relation­ ship between regional integration and the multilateral trading system. In this respect, they stressed their determina­ tion to ensure the consistency of EFTA free trade agreements with WTO rules and regulations. While Ministers fur­ ther expressed their desire to contribute actively towards a successful WTO Ministerial Conference in May 1998, they reaffirmed their support for the forward-looking work programme of the WTO, including the built-in agenda.

NEXT MEETING The next meeting of the Council at Ministerial level would take place in Ms. Andrea Willi, Minister for Foreign Affairs, Liechtenstein Reykjavik on 3 and 4 June 1998. T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

CONCLUSIONS OF THE SEVENTH MEETING OF THE EEA COUNCIL LUXEMBOURG, 26 JUNE 1997

1. The seventh meeting of the EEA foodstuffs and veterinary medi­ committees where this is in the Council took place in Luxembourg cine legislation; to the environ­ interest of the good functioning on 26 June 1997 under the ment; to mutual recognition of o f the A greem ent: Presidency of Mr. Hans VAN diplomas and access to certain MIERLO, Minister for Foreign professions, to competition rules - the EEA Council noted that Affairs of the Netherlands. The and to intellectual property; that a decision of the Joint meeting was attended by the EEA/EFTA States participation in Committee on the extension of members of the Council of the the SAVE II and Info 2000 pro­ the list of Protocol 37 to the European Union, the responsible grammes had also been decided; Working Party on Protection member of the Commission and and that procedures concerning of Individuals with regard to members of Government of the EEA/EFTA States participation the Processing of Personal data EFTA States participating in the on Community programmes is being prepared in order to EEA Agreement. concerning small and medium allow for EEA/EFTA participa­ sized enterprises and information tion; 2. The EEA Council noted the society were now at their final progress report presented by stages; - the EEA Council noted the the President of the EEA foint participation of the EEA/EFTA C om m ittee. - noted that the Joint Committee States in the committees estab­ would, nevertheless, need to lished in framework of pro­ 3. The EEA Council noted with accelerate adoption of decisions grammes in which they partic­ interest the Resolutions on the to maintain full homogeneity of ipate such as MEDIA II and functioning of the EEA in 1996, on th e EEA; IN FO 2000; the single market in energy and on the freedom of movement of capi­ - noted, furthermore, that signifi­ - the EEA Council noted tal and financial services adopted cant progress had been achieved EEA/EFTA participation in by the EEA Joint Parliamentary on the important matter of vet­ the Advisory Committee on Committee at its 8th meeting on erinary legislation on which a the Internal market is being 14 April 1997. The EEA Council Joint Committee decision was favourably considered in view underlined the importance of the expected in time for the new sys­ to an early decision by the parliamentary cooperation in the tem to be applied as of 1 January C om m ittee; EEA in contributing to a better 1998 leading to facilitation of understanding of the functioning trade procedures and enhanced - the EEA Council also noted and benefits of the EEA Agreement. co-operation in the field of ani­ that EEA/EFTA participation mal health; as observers in the Commis­ 4. The EEA Council assessed the over­ sion's Advisory Committee on all functioning and development to - welcomed the substantive Cancer Prevention has been date of the EEA Agreement and: progress made on the incorpora­ agreed; tion of legislation on medicinal expressed satisfaction at the con­ products and on preparations for - while referring to the importance tinued good functioning of the the participation of the of the Commission's Action Plan Agreement and underlined the EEA/EFTA States in the European for the Single Market underlined importance of the participation Agency for the Evaluation of its general relevance to the EEA of the EEA/EFTA States in the Medicinal Products (EMEA); Agreement and appreciated the development and realisation of shared intention to cooperate on the internal market; - noted that the decision shaping relevant projects resulting from provisions of the Agreement are the Action Plan; - noted the facts that the EEA Joint being used increasingly, to the Committee had since the last mutual benefit of both sides, in - noted the ongoing negotiations meeting of the EEA Council providing a solid basis of consul­ between the EEA/EFTA States adopted over 40 decisions incor­ tation of all Internal market part­ and Canada, Australia and New porating some 70 pieces of ners for the preparation of rele­ Zealand of parallel Mutual Community legislation into the vant legislation; Recognition Agreements on Agreement, including acts related Conformity Assessment equiva­ to technical regulations for the - noted with satisfaction that lent to those negotiated between telecommunications sector, to progress has been made with the Community and those coun­ safety measures in rail, road, and regard to further participation of tries; the EEA Council welcomed sea transport and civil aviation; to EEA/EFTA States in Community the readiness of the EEA/EFTA T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

States to begin parallel negotia­ Committee on 6 May 1997 on Agreements concluded between the tions with those countries in unemployment in the European EFTA States and these countries. Central and Eastern Europe with Economic Area and on the infor­ which the Community intends to mation society and expressed its The EEA Council noted that the conclude European Conformity satisfaction at the increased contri­ EEA/EFTA States should be kept as Assessment Agreements and set bution by the economic and social fully and regularly informed as up special administrative struc­ partners to enhanced cooperation possible on the process of enlarge­ tures; within the EEA. ment with a view to jointly evaluat­ ing and when necessary addressing - welcomed that in a spirit of con­ 7. The EEA Council welcomed the its possible consequences for the structive cooperation a solution successful conclusion in Amsterdam functioning of EEA Agreement. to the salmon issue has been of the EU Intergovernmental found in consultations between Conference and expressed the con­ 9. The EEA Council noted that the Commission and Norway; viction that the revised Treaty Foreign Ministers following the would send an important message EEA Council meeting would dis­ 5. The EEA Council noted the impor­ of political will for the enhance­ cuss, within the framework of the tance of the proposed European ment and widening of integration political dialogue, foreign and Parliament and Council directive in the whole of Europe. Insofar as security policy issues of common on common rules for the internal the outcome of the IGC might also interest. The EEA Council under­ market in natural gas for the supply have an impact on the EEA lined the importance of close coop­ and utilization of natural gas with­ Agreement, this should be jointly eration in the foreign and security in the EEA. assessed with a view to maintaining policy field. The EEA Council wel­ the privileged relationship between comed in particular the fact that The EEA Council noted the con­ the EU and the EEA/EFTA States. EEA/EFTA States were increasingly cerns expressed by the EEA/EFTA being invited to associate them­ side about the delineation between 8. The EEA Council noted with satis­ selves with a number of CFSP upstream and downstream activi­ faction that EU enlargement nego­ initiatives such as statements, ties and about long term take or tiations are expected to begin as declarations, demarches and com­ pay contracts. soon as possible after December mon positions, and emphasised the 1997. This will deepen the process benefit of this for all parties. 6. The EEA Council noted the of progressive integration initiated Resolutions adopted at the 5th by the Europe Agreements of the meeting of the EEA Consultative EU as well as by the Free Trade T h ir t y - s e v e n t h A n n u a l R e p o r t o f T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

CONCLUSIONS OF THE EIGHTH MEETING OF THE EEA COUNCIL ON 25 NOVEMBER 1097

1. The eighth meeting of the EEA diversity, small and medium sized Mutual Recognition Agreements Council took place in Brussels enterprises, drug dependence and on Conformity Assessment on 25 November 1997 under European voluntary service; equivalent to those negotiated the Presidency of Mr. Knut between the Community and VOLLEBAiK, Minister of Foreign - noted that the rhythm of incor­ those countries, and the progress Affairs of Norway. The meeting poration of acquis into the EEA towards conclusion of a similar was attended by the members of Agreement had increased signifi­ agreement with Canada; the Council of the European cantly and welcomed the Union, the responsible member of efforts being undertaken by the 5. The EEA Council reiterated the the Commission and members of Commission and the EFTA side importance of the proposed Government of the EFTA States to find ways of accelerating the Directive to be adopted by the participating in the EEA Agreement. integration of the acquis into the European Parliament and by the EEA; Council on common rules for the 2. The EEA Council noted the internal market in natural gas. progress report presented by the - noted with satisfaction the progress Given the status of one EEA EFTA President of the EEA Joint made with regard to further par­ State as a major supplier of natural C om m ittee. ticipation by experts from the gas to the European market, the EEA EFTA States in a number of EEA Council reiterated that the 3. The EEA Council noted with committees of importance for the EEA EFTA points of view would interest the Resolutions adopted functioning of the internal mar­ be considered through the proce­ at the meeting of the EEA ket, notably the Internal Market dures provided for by the EEA Joint Parliamentary Committee of Advisory Committee, the Contact Agreement. The EEA Council 28 October 1997 on the Information Committee on Accounting, the noted the concern of the EEA EFTA Society and the European Economic Insurance Committee and the States with regard to the scope of Area and on a Common European Banking Advisory Committee; the proposed directive. Transport Policy. The EEA Council expressed its appreciation of the - welcomed the progress towards 6. The EEA Council noted the con­ substantive and useful contribu­ finalisation of a draft text for a cern voiced by EEA EFTA States in tions made by that Committee and new Annex I (veterinary matters) relation to the proposed Directive its important role in enhancing, at to the EEA Agreement and noted to be adopted by the European a time of major developments that further procedures should be Parliament and by the Council on within the EU and the EEA, co­ expedited with the aim of allow­ the legal protection of biotechno­ operation within the EEA. ing for the rapid adoption of a logical inventions. Joint Committee decision; 4. The EEA Council assessed the over­ 7. The EEA Council discussed the all functioning and development to - welcomed the further progress on current review of the transitional date of the EEA Agreement and: a text for the incorporation measures by Liechtenstein in the of legislation on medicinal prod­ field of the free movement of per­ - expressed satisfaction at the con­ ucts and noted the ongoing sons and reiterated its will to find a tinued good functioning of the preparations for active participa­ solution duly taking into account Agreement and the effective inte­ tion by the EEA EFTA States in the specific geographic situation of gration of the EEA EFTA States the European Agency for the Liechtenstein into the development and realisa­ Evaluation of Medicinal Products tion of the internal market; (EMEA); 8. The EEA Council welcomed the signature of the Amsterdam Treaty - noted the adoption since its last - invited the EEA Joint Committee on 2 October 1997. Following its meeting of over 50 EEA Joint to resume work with regard conclusions of June 1997, and inso­ Committee Decisions incorpo­ to completion of Protocol 3 far as the application of the revised rating into the EEA Agreement (processed agricultural products) Treaty could have impact on the Community legislation related, to the EEA Agreement once EEA Agreement, the EEA Council inter alia, to the environment, exploratory discussions had been agreed to keep the matter under energy, intellectual property, com pleted; joint review to safeguard the privi­ transport and technical regula­ leged relations existing between the tions and standards, and provid­ - welcomed the finalisation of EU and the EEA EFTA States. ing for the formal involvement of technical negotiations between the EEA EFTA States in pro­ the EEA EFTA States and New 9. The EEA Council recalled its con­ grammes related to linguistic Zealand and Australia on parallel clusions of 26 June 1997 that the •' 7r / J 1 /' T h ir t y -s e v e n t h A n n u a l R e p o r t o f > i r 70

EEA EFTA States should be kept EEA EFTA States with a briefing on 11. The EEA Council noted that fully and regularly informed as the decisions taken in that context. Foreign Ministers would discuss, possible on the process of enlarge­ within the framework of the politi­ ment, with a view to jointly evalu­ 10. The EU Council President updated cal dialogue, foreign and security ating and, where necessary, the EEA EFTA States on the policy issues of common interest addressing its possible conse­ outcome of the extraordinary following the EEA Council meeting quences for the functioning of the European Council meeting on including Russia, Middle East, EEA Agreement. employment held on 20-21 Ex-Yugoslavia. November. The EEA Council noted The EEA EFTA States expressed that the regular contacts on appreciation for the information employment and growth would given by the EU side on recent continue in the context of the developments as regards the joint meetings of EU and EFTA enlargement process. The EEA economics and finance ministers, Council noted that the EU side as well as through the structure would, following the Luxembourg under the relevant part of the EEA European Council, provide the Agreem ent. ______| 10.02.97 | 2 | 14.03.97 || 4 3 I 30.01.97 II 1 10 11 12 13 10.03.97 8 I ADOPTED 10.03.97 28.02.97 14.03.97 DATE 14.03.97 14.03.97 14.03.97 14.03.97 14.03.97 14.03.97 T h rty t ir - h t n e v e s .mm fMiTi adopt \ i d te p o d a n o i s i c e d fdMMiTTEi; m m . a e e amending Annex II (Technical regulations, standards, testing and and testing standards, regulations, (Technical II Annex amending 95/28/EC) am ending Annex VI (Social security) to the EEA Agreement Agreement EEA the to security) (Social Directive VI Council Annex and (EP ending am Agreement EEA the to certification) am ending Chapter XVill of Annex II (Technical regulations, regulations, (Technical ent: II greem A EEA the to Annex of certification) and XVill testing standards, Chapter ending am land - based European radio - message system (ERMES) receiver receiver (ERMES) system message public - for radio regulation European (Technical based - 95/290/EC land Decision Commission Commission) Administrative the of 20 No (Recommendation cordless telecommunication (DECT), public access profile (PAP) (PAP) profile access public (DECT), telecommunication cordless omsin eiin 555E [ehia rglto fr attach­ for regulation [Technical 95/525/EC decision Commission requirements] Com m ission Decision 95/526/EC [Technical regulation for for regulation [Technical 95/526/EC Decision European ission m digital Com for ent equipm applications] terminal for requirements ment am ending Chapter XIX o f Annex II (Technical regulations, regulations, (Technical II Annex f o XIX Chapter ending am Integrated Services Digital Network (ISDN); telephony 3,1 kHz kHz 3,1 terminals] handset telephony for (ISDN); requirements Network attachment Digital teleservice, Services Integrated amending Annex IV (Energy) to the EEA Agreement (Council (Council Agreement EEA Agreement Community] the the in EEA to deliveries the (Energy) to IV Annex certification) amending and testing standards, goods by road, rail and inland waterway] inland and rail (Council road, by Agreement goods EEA the to (Transport) XIII and Annex imports oil amending crude for [registration 2964/95) No Regulation(EC) 96/139EC) Decision (Commission Council Directive 94/72/EC amending Directive 91/439/EC 91/439/EC Directive amending 94/72/EC Directive Council road] by goods dangerous of [transport (Commission 94/55/EC) Agreement EEA the to (Transport) Annex amending mnigAnxXI (rnpr) oteEAAre ent: Agreem EEA the to (Transport) XIII Annex amending dangerous of transport the for advisers (safety 96/35/EC) Directive Council Directive 96/47/EC amending Directive 91/439/EC 91/439/EC Directive amending 96/47/EC Directive Council Directive Council progress technical to adapting 96/86/EC Directive medn Anx II Tasot t te E Agreement EEA the to (Transport) XIII Annex ending am medn Anx II Tasot t te E Agreement EEA the to (Transport) XIII rail] by goods Annex dangerous of [transport ending am 96/49/EC) Directive Council medn Anx II Tasot t te E Agreement EEA the to (Transport) XIII goods) Annex polluting or leaving dangerous or Directive for ending carrying am and bound vessels for ports Council unity m requirements Com ending am um inim [m 96/39/EC Directive 93/75/EC) ission progress m (Com technical to adapting 96/87/EC Directive (Commission ] licences [Driving ] licences [Driving card for inspectors carrying out port State control] control] State port out carrying inspectors for card mnigPooo 1 oteEAAgement: greem A EEA Agreement the to 21 EEA Protocol the amending to petition) agreements] om (C XIV identity Annex an for ending model am [common 96/40EC) Directive (Commission ntecnrlo ocnrto ewe undertakings] between 4064/89 No concentration of lim­ Regulation(EC) time control the Council in on for [Notifications, provided 3384/94 No hearings and (EC) its Regulation Commission (Commission Regulation(EC) No 240/96) [technology transfer transfer [technology 240/96) No Regulation(EC) (Commission details of application and notifications provided for in Council Council in for provided notifications other and and content application [Form, of 3385/94 No (EC) details Regulation Commission euainN 17] No Regulation A l a u n n EEA JO IN T COMMITTEE DECISIONS DECISIONS COMMITTEE T IN JO EEA R WITH RELEVANT AC ACTS AC RELEVANT WITH t r o p e

f o T e h E n a e p o r u STATED DATE DATE STATED F INTO FORCE INTO OF ENTRY ENTRY OF e e r 01.02.97 T mi e d a r A ati n io t ia c o s s PUBLICATION PUBLICATION 27.3.1997, 27.3.1997, 27.3.1997, 27.3.1997, 10.7.1997, 10.7.1997, 10.7.1997, 10.7.1997, JNoL 182, L o N OJ JNoL 182, L o N OJ 10.7.1997, 10.7.1997, IN THE Oj THE IN OJ No L85, No OJ JN 182, L No OJ JN 182, L No OJ 85, L No OJ P.66 P.67 P.30 P.32 P.35

T h ir t y - s e v e n t h A n n u a l R e p o r t E u r o p e a n F r e e T r a d e A s s o c ia t io n

DATE EEA JOINT COMMITTEE DECISIONS STATED DATE ADOPTED OF ENTRY PUBLICATION WITH RELEVANT AC ACTS INTO FORCE IN THE OJ

24.03.97 amending Chapter XII of Annex II (Foodstuffs) to the EEA 1.04.97 OJ No L 182, Agreement (Council Directive 95/61/F.C) [ fixing of maximum levels 10.7.1997, P.46 for pesticide residues in and on certain products of plant origin, including fruit and vegetables | 26.03.97 amending Chapter XV of Annex II (Dangerous Substances) to the 1.04.97 OJ No L 182, EEA Agreement: 10.7.1997, P.47 Commission Regulation (EC) No 142/97 (Delivery of information about certain existing substances as foreseen under Council Regulation (EC) No 793/93 ] Commission Regulation (EC) No 143/97 (Third list of priority sub­ stances as foreseen under Council Regulation(EC) No 793/93] 16 26.03.97 amending Chapter XIX of Annex II (General provisions in the field 1.04.97 OJ No L. 182, of TBT) to the EEA Agreement (Decision No 3052/95/EC) 10.7.1997, p.49 [procedure for the exchange of information on national measures derogating from the principle of the free movement of goods within the Community] 17 24.03.97 amending Annex XIII (Transport) to the EEA Agreement (Council 1.04.97 OJ No L 182, Directive 96/26/EC) [admission to the occupation of road haulage 10.7.1997, p.50 operator and road passenger transport operators and mutual recog­ nition of diplomas, certificates and other evidence of formal qualifi­ cations intended to facilitate for these operators the right to freedom of establishment in national and international transport] 18 24.03.97 amending Annex XIII (Transport) to the EEA Agreement 1.04.97 OJ No L 182, (Commission Regulation!EC) No2176/96) 10.7.1997, p.52 [harmonization of technical requirements and administrative proce­ dures in the field of civil aviation] 19 24.03.97 amending Annex XX (Environment) to the EEA Agreement 1.04.97 OJ No L 182, (Commission Directive 94/51/EC) (contained use of genetically 10.7.1997, P.53 modified micro - organisms] 20 24.03.97 amending Annex XX (Environment) to the EEA Agreement 1.04.97 OJ No L 182, (Commission Decision 96/134/EC) [contained use of genetically 10.7.1997, p.54 modified micro - organisms] 21 02.05.97 amending Annex II (Technical regulations, standards, testing and 05.05.97 OJ No L 424, | certification) to the EEA A greem ent: 4.9.1997, p.67 ] Commission Regulation (EC) No 1441/95 [Community procedure for the establishment of maximum residue limits of veterinary medicinal products in foodstuffs of animal origin] Commission regulation (EC) No 1442/95 [Community procedure for the establishment of maximum residue limits of veterinary medicinal products in foodstuffs of animal origin] Commission regulation (EC) No 1798/95 [Community procedure for the establishment of maximum residue limits of veterinary med­ icinal products in foodstuffs of animal origin] 22 30.04.97 amending Annex VII (Mutual recognition of professional qualifica­ 01.05.97 OJ No L 424, tions) to the EEA Agreement (Commission Directive 95/43) [Second CONFIRMED 4.9.1997, P.69 general system for the recognition of professional education and 01.07.97 training to supplement Directive 89/48/EEC] 23 30.04.97 amending Annex XIII (Transport) to the EEA Agreement: 01.05.97 OJ No L 424, Council Regulation (EC) No 2819/95 4.9.1997, p.70 Council Regulation (EC) No 1356/96 Council Regulation (EC) No 2254/96 Council Regulation (EC) No 2255/96 Commission Regulation (EC) No 2310/96 Commission Regulation (EC) No 2326/96 Council Directive 96/50/EC Council Directive 96/75/EC *ar T h ir t y - s e v e n t h A n n u a l R ep o r t 73 Du I'.uKoi’i w F ree T r a d e A ss o c ia t io n

2 4 H 06.05.97 amending Annex XIII (Transport) to the EEA Agreement (Council 07.05.97 O] No L 424, Directive 96/53/EC) [laying down for certain road vehicles circulat­ 4.9.1997, F.72 ing within the Community the maximum authorized dimensions in national and international traffic and the maximum authorized weights in international traffic ] ' 25 30.04.97 amending Annex XIII (Transport) to the EEA Agreement (Council 01.05.97 OJ No L 424, Directive 96/48/EC) [interoperability of the trans - European high­ 4.9.1997, p.74 speed rail system ] 26 1 30.04.97 amending Annex XX (Environment) to the EEA Agreement 01.05.97 OJ No L 424, (Commission Decision 96/703/EC) [establishing the ecological cri­ 4.9.1997, p.75 teria for the award of the Community eco - label to refrigerators] 27 30.04.97 am ending Annex XX (Environm ent) to the EEA Agreement 01.05.97 OJ No L 424, (Council Directive 96/61/EC) [integrated pollution prevention and 4.9.1997, P.76 control] 28 30.04.97 amending Annex XX (Environment) to the EEA Agreement 01.05.97 OJ No L 424, (Council Directive 96/59/EC) [disposal of polychlorinated biphenyls 4.9.1997, P.77 and polychlorinated terphenyls (PCB/PCT) ] 29 12.06.97 amending Annex II (Technical regulations, standards, testing and 13.06.97 OJ No L 424, certification) to the EEA Agreement: 4.9.1997, P.78 European Parliament and Council Directive 95/16/EC |approxim ation of the laws of the Member States relating to lifts] Commission Recommendation 95/216/EC [improvements of safety of existing lifts] 30 12.06.97 amending Annex I! (Technical regulations, standards, testing and 13.06.97 OJ No L 424, certification) to the EEA Agreement: 4.9.1997, p.79 Commission Regulation (EC) No 2796/95 Commission Regulation (EC) No 2804/95 31 12.06.97 amending Annex II (Technical regulations, standards, testing and 13.06.97 OJ No L 424, certification) to the EEA Agreement (Commission Regulation (EC) 4.9.1997, P.80 No 281/96) 32 12.06.97 amending Annex II (Technical regulations, standards, testing and 13.06.97 OJ No L 424, certification) to the EEA Agreement (Commission Regulation (EC) 4 .9.1997, P.81 No 282/96) 33 29.05.97 amending Annex XIII (Transport) to the EEA Agreement (Council 01.06.97 OJ No L 270, Directive 96/96/EC) [approximation of the laws of the Member 2.10.1997, P. 19 States relating to roadworthiness tests for motor vehicles and their trailers) 3 4 29.05.97 amending Annex XVIII (Health and safety at work, labour law and 01.06.97 OJ No L 270, equal treatment for men and women) to the EEA Agreement: 2.10.1997, P.21 Commission Directive 9 1/322/EC [establishing indicative limit val­ ues by implementing Council Directive 80/1107/EEC on the protec­ tion of workers from the risks related to exposure to chemical, phys­ ical and biological agents at work] Commission Directive 96/94/EC [establishing a second list of indicative limit values in implementation of Council Directive 80/1107/EEC] 35 29.05.97 amending Annex XVIII (Health and safety at work, labour law and 01.06.97 OJ No L 270, equal treatment for men and women) to the EEA Agreement 2.10.1997, p.23 (Council Recommendation 96/694/EC) [balanced participation of women and men in the decision making process] 3 6 29.05.97 am ending Annex XX (Environm ent) to the EEA Agreement 01.06.97 OJ No L 270, (Commission Decision 96/511/EC) [questionnaires provided for in 2.10.1997, P.24 Council Directive 80/779/EEC, 82/884/EEC, 84/360/EEC and 85/203/EEC] 37 27.06.97 amending Protocol 31 (cooperation in specific fields outside the 01.07.97 four freedoms) to the EEA Agreement (Council Decision 96/664/EC) | Multiannual Programme to promote the linguistic diversity in the information society) m T h ir t y - s e v e n t h A n n u a l R e p o r t o f n r 74 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

STATED DATE No: DATE EEA JOINT COMMITTEE DECISIONS PUBLICATION ADOPTED OF EN TRY WITH RELEVANT AC ACTS INTO FORCE IN THE OJ m m m r s k x ^■biih h»i« ii hi imiiri mi Ill 38 27 .06.97 amending Protocol 31 (cooperation in specific fields outside the 01.07.97 four freedoms) to the EEA Agreement (Council Decision 97/15/EC) (Third multiannual programme for small and medium-sized enter­ prises (1997-2000)) 39 10.07.97 amending Protocol 47 (abolition of technical barriers to trade in 01.08.97 OJ No L 290, wine) to the EEA Agreement (Commission Regulation (EC) No 2 3 .1 0 .1 9 9 7 , P.24 1544/95) [amending Regulation (EF.C) No 822/87 on the common organization of the market in wine] 40 2 7 .0 6 .9 7 amending Protocol 47 (abolition of technical barriers to trade in 0 1 .0 7 .9 7 OJ No L 290, wine) to the EEA Agreement (Council Regulation (EC) No 3011/95) 2 3 .1 0 .1 9 9 7 , P.26 [amending Regulation (EEC) No 823/87 laying down special provi­ sions relating to quality wines produced in specific regions] 41 || 10.07.97 amending Protocol 47 (abolition of technical barriers to trade in 01.08.97 OJ No L 290, wine) to the EEA Agreement (Council Regulation (EC) No 1547/95) 23.10.1997, P.27 [amending Regulation (EEC) No 2332/92 as regards sparkling wines produced in the Community and Regulation (EEC) No 4252/88 on the preparation and marketing of liqueur produced in the Com m unity] 10.0 amending Protocol 47 (abolition of technical barriers to trade in 01.08.97 OJ No L 290, wine) to the EEA Agreement (Commission Regulation (EC) No 23.10.1997, p.28 69/96) [amending Regulation (EEC) No 2676/90 determining Community methods for the analysis of wines] 43 g 10.07.97 amending Protocol 47 (abolition of technical barriers to trade in 01.08.97 OJ N o L 290, wine) to the EEA Agreement (Commission Regulation (EC) No 23.10.1997, p.29 2603/95) [amending Regulation (EEC) No 3201/90 laying down detailed rules for the description and presentation of wines and grape musts] 44 1 10.07.97 amending Protocol 47 (abolition of technical barriers to trade in 01.08.97 OJ No L 290, wine) to the EEA Agreement (Commission Regulation (EC) No 2 3 .1 0 .1 9 9 7 , P.30 692/96) [amending Regulation (EEC) No 3201/90 laying down detailed rules of the description and presentation of wines and grapes musts] 45 10.07.97 amending Protocol 47 (abolition of technical barriers to trade in 01.08.97 OJ No L 290, wine) to the EEA Agreement (Commission Regulation (EC) No 2 3 .1 0 .1 9 9 7 , P.31 693/96) [amending for the fourth time Regulation (EEC) No 586/93 providing for an exception in respect of the volatile acid content of certain wines] 46 11.07.97 amending Protocol 47 (abolition of technical barriers to trade in 0 1 .0 8 .9 7 OJ No L 290, wine) to the EEA Agreement 23.10.1997, p.32 Commission Regulation (EC) No 1243/95 [amending for the second time Regulation (EEC) No 586/93 providing for an exception in respect of the volatile acid content of certain wines] Commission Regulation (EC) No 1278/95 [amending for the third time Regulation (EEC) No 586/93 providing for an exception in respect of the volatile acid content of certain wines] 47 10.07.97 amending Annex II (Technical regulations, standards, testing and 01.08.97 OJ No L 290, certification) to the EEA Agreement (Commission Regulation (EC) 23.10.1997, p.33 No 1712/95) [amending Regulation (EEC) No 1014/90 laying down detailed implementing rules on the definition, description and pre­ sentation of spirit drinks] 48 10.07.97 amending Annex II (Technical regulations, standards, testing and 01.08.97 OJ No L 290, certification) to the EEA Agreement (Commission Regulation (EC) 23.10.1997, P.34 No 2626/95) [amending Regulation (EEC) No 1014/90 laying down detailed implementing rules on the definition, description and pre­ sentation of spirit drinks] 49 10.07.97 am ending Annex IV (Energy) to the EEA Agreement 01.08.97 OJ No L 290, (adaptations to Commission Decision 77/190/EEC, Council 2 3 .1 0 .1 9 9 7 , P.35 Directive 90/547/EEC and Council Directive 91/296/EEC following the adjustments to the Treaties on which the European Union is founded) 'jJL fr h e u r o p e a n r e e r a d e s s o c ia t io n T h ir t y - s e v e n t h A n n u a l R e p o r t o f nr 7 5 r i T E F T A

STATED DATE EEA JOINT COMMITTEE DECISIONS OF EN TRY PUBLICATION WITH RELEVANT AC ACTS INTO FORCE IN THE OJ

| 50 27.06.97 amending Annex XX (Environment) to the EEA Agreement 0 1 .0 7 .9 7 (Council Decision 94/904/EC) (list of hazardous waste pursuant to Article 1(4) of Council Directive 91/689/EEC on hazardous waste ] 01.08.97 OJ No L 316, 51 31.07.97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Council Directive 96/32) | 2 0 .1 1 .1 9 9 7 , P.12 [pesticide residues] 31.07.97 amending Annex II (Technical Regulations, standards, testing and 01.08.97 OJ No L 316, 52 certification) to the EEA Agreement (Council Directive 96/33/EC) 20.11.1997,P.I4 [pesticide residues] 53 31.07.97 amending Annex II (Technical Regulations, standards, testing and 0 1 .0 8 .9 7 OJ No L 316, certification to the EEA Agreement (Commission Directive 2 0 .1 1 .1 9 9 7 , P.15 96/ll/EEC) [plastic material in contact with foodstuffs] 54 31.07.97 amending Annex II (Technical Regulations, standards, testing and 01.08.97 OJ No L 316, I certification to the EEA Agreement (Commission Regulation (EC) 2 0 .1 1 .1 9 9 7 , P.16 No 1935/95) [organic production of agricultural products] 55 amending Annex II (Technical Regulations, standards, testing and 0 1 .0 8 .9 7 O) No L 316, certification to the EEA Agreement (Commission Regulation (EC) 20.11.1997, P.17 | No 418/96) [organic production of agricultural prodcuts] 56 amending Annex II (Technical Regulations, standards, testing and 01.08.97 OJ No L 316, certification) to the EEA Agreement (Commission Directive 96/3) 2 0 .1 1 .1 9 9 7 , P.18 [hygiene of foodstuffs] 57 amending Annex II (Technical Regulations, standards, testing and 01.08.97 OJ No L 316, certification) to the EEA Agreement (Commission Directive 96/8) 20.11.1997, P. 19 [foods for enrgy restricted diets] 58 amending Annex 11 (Technical Regulations, standards, testing and 01 .0 8 .9 7 OJ No L 316, certification) to the EEA Agreement (Commission Directive 20.11.1997, P.20 96/12/EC and Commission Directive 96/46/EC) [plant protection products] 59 amending Annex XVII (Intellectual property) to the EEA Agreement 01.08.97 OJ No L 316, amending EP and Council Regulation (EC) No 1610/96 (protection 20.11.1997, P.21 certificate for plant protection products] 60 amending Annex II (Technical Regulations, standards, testing and 01.12.97 OJ No I. 30, certification) to the EEA Agreement (EP and Council Directive 5.2.1998, P. 30 96/27/EC) [protection of occupants of motor vehicles in the event o f a side impact] 61 amending Annex II (Technical Regulations, standards, testing and 01.12.97 OJ No L 30, certification) to the EEA Agreement (Commission Directive 5 .2 .1 9 9 8 , P. 32 96/44/EC) [air pollution by emissions from motor vehicles] 62 amending Annex II (Technical Regulations, standards, testing and 01.12.97 OJ No L 30, certification) to the EEA Agreement (Commission Directive 5.2.1998, K 33 96/37/EC) [interior fittings of motor vehicles] 63 amending Annex II (Technical Regulations, standards, testing and 0 1 .1 2 .9 7 OJ No L 30, certification) to the EEA Agreement (Commission Directive 5 .2 .1 9 9 8 , P. 34 96/38/EC) [anchorages for motor vehicle safety belts] 64 amending Annex II (Technical Regulations, standards, testing and 05.10.97 OJ No I. 30, certification) to the EEA Agreement (Council Directive 96/21/EC) 5.2.1998, p. 35 [labelling of certain foodstuffs] 65 amending Annex II (Technical Regulations, standards, testing and 05.10.97 OJ No L 30, certification) to the EEA Agreement (Commission Directive 5 .2 .1 9 9 8 , P. 36 96/41/EC) [cosmetic products] 66 amending Annex II (Technical Regulations, standards, testing and 05.10.97 OJ No L 30, certification) to the EEA Agreement (Commission Directive 5 .2 .1 9 9 8 , P. 37 96/45/EC) [composition of cosmetic products] 67 amending Annex II (Technical Regulations, standards, testing and 05.10.97 OJ No 1. 30, certification) to the EEA Agreement (((ommission Decisions 96/577, 5 .2 .1 9 9 8 , P. 38 96/578, 96/579, 96/580, 96/581 and 96/582/EC) [construction ; products] H <>8 amending Annex II (Technical Regulations, standards, testing and 05.10.97 OJ No L 30, certification) to the EEA Agreement (EP and Council Directive 5 .2 .1 9 9 8 , P. 40 96/58/EC) [personal protective equipment] T h ir t y -s e v e n t h A n n u a l R e p o r t E u r o p e a n F r e e T r a d e A s s o c ia t io n

d a t e EEA JOINT COMMITTEE DECISIONS STATED DATE OF ENTRY PUBLICATION ADOPTED WITH RELEVANT AC ACTS INTO FORCE IN THE OJ

69 § 04.10.97 amending Annex XIII (Transport) to the EEA Agreement (Council 01.11.97 OJ No L 30, Regulation (EC) No 543/97) [granting of aids for transport by rail, 5.2.1998, P. 41 road and inland waterway] 04.10.97 amending Annex XIII (Transport) to the EEA Agreement (Council 05.10.97 OJ No L 30, Regulation (EEC) No 3577/92) (maritime cabotage] 5.2.1998, p. 42 04.10.97 amending Annex XX (Environment) to the EEA Agreement 05.10.97 OJ No L 30, (Commission Decision 96/302/EC) [hazardous waste] 5.2.1998, P. 44 04.10.97 amending Annex XX (Environment) to the EEA Agreement 05.10.97 OJ No L 30, (Commission Decisions 94/721 and 96/660/EC environment) 5.2.1998, P. 45 (supervision and control of shipments of waste] 04.10.97 y amending Protocol 31 to the EEA Agreement (Drug Dependence 05.10.97 Programme - EP and Council Decision 97/102/EC) 12.11.97 amending Annex II (Technical Regulations, standards, testing and 14.02.98 certification) to the EEA Agreement (EP and Council Directive 96/69/EC) [pollution by emissions from motor vehicles] 75 12.11.97 amending Annex II (Technical Regulations, standards, testing and 14.02.98 certification) to the EEA Agreement (Commission Directive 96/64/EC) [motor vehicle towing devices] 12.11.97 amending Annex II (Technical Regulations, standards, testing and 14.02.98 certification) to the EEA Agreement (Commission Directive 96/36/EC) [safety belts and restraint systems of motor vehicles] 77 12.11.97 amending Annex II (Technical Regulations, standards, testing and 14.02.98 certification) to the EEA Agreement (Commission Directive 96/63/EC) [braking devices of wheeled agricultural or forestry tractors] 78 12.11.97 amending Annex II (Technical Regulations, standards, testing and 13.11.97 certification) to the EEA Agreement ( Commission Regulations Nos 1140/96, 1147/96, 1311/96, 1312/96, 1433/96 and 1742/96) [maximum residue limits of veterinary medicinal products in food­ stuffs of animal origin] 79 12.11.97 amending Annex II (Technical Regulations, standards, testing and 13.11.97 certification) to the EEA Agreement (Commission Directive 96/68/EC) [placing of plant protection products on the market] 80 12.11.97 amending Annex II (Technical Regulations, standards, testing and 13.11.97 certification) to the EEA Agreement (Commission Decision 96/71/EC) [regulation for access to packet switched public data networks] 81 12.11.97 amending Annex IV (Energy) to the EEA Agreement (Council 13.11.97 Decision 97/8/EC repealing Council Directive 75/405/EEC) [restric­ tion of the use of petroleum products in power stations] 12.11.97 amending Annex VI (Social Security) to the EEA Agreement 13.11.97 (Council Regulation 1408/71) - [Replacement of the text of Annex VI with a new updated text] 83 31.10.97 amending Annex XIII (Transport) to the EEA Agreement 01.11.97 (Commission Directive 97/15/EC) [specifications for the procure­ ment of air- traffic-management equipment and systems] 84 12.11.97 amending Annex XIV (Competition) to the EEA Agreement (Commission Regulation (EC) No 1582/97) [prolongation of the validity of Regulations (EEC) Nos 1983/83 and 1984/83] 85 12.11.97 amending Annex XV (State Aid) to the EEA Agreement (Council 13.11.97 Regulations (EC) Nos 3094/95 and 1904/96) 86 31.10.97 amending Protocol 31 to the EEA Agreement on cooperation in 01.11.97 specific fields outside the four freedoms [European Voluntary Service for Young People] 87 09.12..97 amending Annex II (Technical Regulations, standards, testing and 10.12.97 certification) to the EEA Agreement (Directive 96/57/EC of the European Parliament) [energy efficiency requirements for house­ hold electric refrigerators] h e u r o p e a n r e e r a d e s s o c ia t io n T h ir t y - s e v e n t h A n n u a l R e p o r t o f T E F T A

STATED DATE DATE EEA JOINT COMMITTEE DECISIONS OF ENTRY PUBLICATION ADOPTED WITH RELEVANT AC ACTS INTO FORCE IN THE OJ

10.12.97 88 09.1 2..97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Directive 96/70/EC) (mineral waters] 10.12.97 89 09.12..97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Commission Regulation (EC) No 345/97) [organic production of agricultural products] 10.12.97 90 09.12..97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Regulation (EC) No 2232/96) [flavouring substances in foodstuffs] 10.12.97 91 09.12..97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Commission Regulations (EC) Nos 2017/96, 2034/96, 17/97, 270/97) [maximum residue limits] 10.12.97 92 09.12.97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Directive 96/56/EC) [packag­ ing and labelling of dangerous substances) 29.12.97 93 28.11.97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Commission Decision 97/129/EC) [packaging materials] 29.12.97 94 28.11.97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Commission Decision 97/138/EC) [packaging and packaging waste] 10.12.97 09.12..97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement ((.ouncil Directive 69/493/EEC) [crystal glass] amending Annex VI (Social security) to the EEA Agreement (Recommendation No 21) amending Annex XX (Environment) to the EEA Agreement (Council Directive 96/82/EC) [on the control of major-accidents] amending Protocol 31 to the EEA Agreement, on cooperation in spe­ cific fields outside the four freedoms (Council Decision 95/468/EC) [telematic interchange of data between administrations in the Community (IDA)] 10.12.97 99 09.12.97 amending Protocol 47 (abolition of technical barriers to trade in wine) to the EEA Agreement (Council Regulation (EC) No 1056/96) [wine and grape musts] 16.12.97 100 15.12.97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Regulation(EC) No 2061/96) - [definition, description and presentation of aromatized wines] 16.12.97 101 15.12.97 amending Annex II (Technical Regulations, standards, testing and certification) to the EEA Agreement (Commission Regulation(EC) No 2215/96)-[“Gluhwein”] 16.12.97 102 15.12.97 amending Protocol 47 (abolition of technical harriers to trade in wine) to the EEA Agreement (Council Regulations (EC) Nos 1128/96 and 1915/96; Council Regulations 1426/96, 1427/96, 1428/96, 1429/96, 1592/96, 1594/96) 18.12.97 103 17.12.97 amending Annex XI (Telecommunications) to the EEA Agreement (Council Resolution 96/C 376/01) 18.12.97 104 17.12.97 amending Annex XI (Telecommunications) to the EEA Agreement (Commission Directive 95/51/EC - abolotion of restriction of use on cable television networks) 18.12.97 105 17.12.97 amending Annex XI (Telecommunications) to the EEA Agreement (Commission Directive 96/2/EC - mobile and personal communi­ cation) 106 17.12.97 amending Annex XI (Telecommunications) to the EEA Agreement (Commission Directive 96/19/EC - full competition in telecommu­ nication markets) 107 02.02.98 amending Annex XIV (Competition) to the EEA Agreement (Commission Regulation 2236/97 - prolongation of block exemp­ tions) r r - T h ir t y - s e v e n t h A n n u a l R e p o r t o f rr 78 T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

COMMITTEE OF MEMBERS OF PARLIAMENT OF THE EFTA COUNTRIES (CMP) AND THE COMMITTEE OF MEMBERS OF PARLIAMENT OF THE EFTA STATES (MPS)

Icelandic Delegation Ms- Marit Amstad Asmund Krutoffersen — — — — — _ Centre Party Labour Party Dr. Vilhjalmur Egilsson Chairman Mr. Per-Kristian Foss Gunn Karin Gjul Independence Party Conservative Party Labour Party

Mr. Gunnlaugur M. Sigmundsson Mr. Reidar Johansen (alternate in MPS) Dag Danielsen Vice Chairman Socialist Left Party Progress Party Progressive Party S u b s t it u t e M e m b e r s : Ase Wisleff Nilssen Mr. Am i M. Mathiesen Ms. M a rit N ybakk Christian Democratic Party Independence Party Labour Party Borge Brende Mr. Sighvatur Bjbrgvinsson Mr. Vidar Bjornstad Conservative Party Social Democratic Party Labour Party Swiss D e l e g a t i o n Mr.Sigurd Manner&k Mr. Hjdrleifur Guttormsson (observers in the MPS) (alternate member of MPS) Centre Party

People’s Alliance Peter Vollmer Ms. Thorhild Widvey Chairman Conservative Party A l t e r n a t e m e m b e r : Social-Democratic Party Ms. Kristin Astgeirsdottir Ms. Kjellbjorg Lunde M ember o f the Women’s Alliance until Peter Bieri Socialist Left Party 1997, currently independent Vice-Chairman Christian-Democratic Party Mr. Fridtjof Frank Gundersen L iechtenstein Progress Party D e l e g a t io n Lili Nabholz Radical-Democratic Party N o r w e g ia n D e l e g a t io n Mr. Otto Buchel (from O ctober 1997) Patriotic Union Christoffel Brandli Swiss People’s Party Haakon Blankenborg Mr. Alois Beckjun. Chairman Jacques-Simon Eggly Progressive Citizen’s Party Labour party Liberal Party

A l t e r n a t e m e m b e r s : Carl I. Hagen A l t e r n a t e M e m b e r s : Mr. Rudolf Lampert Vice-Chairman Michel Beguelin Progressive Citizen’s Party Progress Party Social-Democratic Party Mr. Walter Vogt Crete Knudsen Christiane Brunner Patriotic Union Labour Party Social-Democratic Party

N o r w e g i a n d e l e g a t io n Bror Yngve Rahm Fulvio Pelli (u n t i l O c t o b e r 1 9 9 7 ): Christian Democratic Party Radical-Democratic Party Mr. Haakon Blankenborg Siri FrostSterri Remigio Ratti Chairman Conservative Party Labour Party Christian-Democratic Party

A l t er n a t e m e m b e r s : Mr. Einar Steensnces Kurt Schule Morten Lund Radical-Democratic Party Vice-Chairman (full member of MPS) Christian Democratic Party Centre Party

Roger Gudmundseth Mr. Vidar Bjornstad Labour Party Labour Party M

T h ir t y - s e v e n t h A n n u a l R e p o r t o f 79 fc T h e E u r o p e a n F r e e T r a d e A s s o c ia t io n

MEMBERSOE THE EFTA CONSULTATIVE COMMITTEE (DECEMBER 1997)

I c e l a n d N o r w a y S w it z e r l a n d

Mr. Ari Skulason Mr. Jon Ivar N dlsund Mr. Paul Veyrassat Icelandic Federation of Labour Norwegian Confederation of Trade Swiss Federation of Commerce and Unions Industry (Vorort) Mr. Bjorn Arnorsson Federation of State and Municipal Mr. Jon Vea Ms. M at grit M eier Employees Confederation of Norwegian Business Swiss Federation of Trade Unions and Industry Mr. Jon Steindor Valdimarsson Mr. Peider Signorell Federation of Icelandic Industries Mr. Vidar Lindejjeld Swiss Association of Commercial Confederation of Norwegian Business Employees Mr. Thorarinn V. Thorarinsson and Industry Confederation of Icelandic Employers Mr. Melchior Ehrler Mr. Thom as Angell Federation of Swiss Farmers Mr. Jonas Jonsson Federation of Norwegian Commercial Iceland Chamber of Commerce and Service Enterprises Mr. Daniel Hefti Swiss Union of Employers A l t e r n a t e s Ms. G unvor Strem sheim Confederation of Academic and A l t er n a t e s a n d o b s e r v e r s Mr. Vilhjdlmur Egilsson Professional Unions in Norway Iceland Chamber of Commerce Mr. Walter Renschler

A lt e r n a t e s Swiss Federation of Trade Unions Mr. Hannes G. Sigurdsson Confederation of Icelandic Employers Ms. Crete Gautvik Mr. Pierre Weiss Confederation of Norwegian Business Swiss Union of Employers Mr. Halldor Gronvold and Industry Icelandic Federation of Labour Mr. Gregor Kiindig Mr. Lars Christian Berge Swiss Federation of Commerce and Confederation of Norwegian Business Industry (Vorort) and Industry iechtenstein L Ms. Beatrice Marti Mr. Johan-Ludvik Carlsen Swiss Association of Small and Medium- Mr. Hans Brunhart Norwegian Confederation of Trade Sized Enterprises Liechtenstein Chamber of Industry and Unions Commerce Mr. Jiirg R. Zeller Mr. Thorstein Larsen Federation of the Swiss Im porters and Ms. Alice Fehr Federation of Norwegian Commercial Wholesale Traders Federation of Liechtenstein Employees and Service Enterprises Mr. Bruno Weber-Gobet Mr. Albert lehle Confederation of Christian Trade Unions Federation of Liechtenstein Employees of Switzerland

P e r m a n e n t O b s e r v e r s

Mr. Peter Coldrick European Trade Union Confederation

Ms. Kirsti Methi Union of Industrial and Employers’ Confederation of Europe Tunm-si vi \m A w i \i Rii'oki oi • SO ■ I I ni I i koim \ \ 1 ki i I k a d i Asmk ia i io n EUROPEAN FREE TRADE ASSOCIATION 1097

MEMBER COUNTRIES CHAIRMANSHIP EFTA SECRETARIAT OF THE STANDING HEADQUARTERS Iceland COMMITTEE OF Liechtenstein THE EFTA STATES 9-11, rue de Varembe Norway (FOR EEA MATTERS) CH-121 i Geneva 20 Switzerland Switzerland January - June Liechtenstein Tel: (4122) 749 11 11 CHAIRMANSHIP July - December Norway Fax: (4122) 733 92 91 OF THE EFTA COUNCIL HEADS OF EFTA SECRETARIAT, DELEGATIONS TO THE BRUSSELS January-June Switzerland STANDING COMMITTEE July - December Norway OF THE EFTA STATES 74, rue de Treves B-1040 Brussels HEADS OF PERMANENT I c e l a n d Belgium Tel: (322) 286 17 11 DELEGATIONS Gunnar Snorri Gunnarsson ______TO EFTA______Fax: (322) 286 17 50

L iechtenstein I c e l a n d OFFICE OF THE EFTA H.S.H. Prince Benedikt Jonsson STATISTICAL ADVISER, Nikolaas von Liechtenstein LUXEMBOURG

L iechtenstein N o r w a y Batiment Jean Monnet, L-2929 Roland Marxer Einar Bull Luxembourg Tel: (352) 4301 33 894 N o r w a y Fax: (352) 4301 32 145 EFTA SECRETARIAT Terje Johannessen

S e c r e t a r y -G e n e r a l

S w i t z e r l a n d Kjartan Johannsson William Rossier

D e p u t y S e c r e t a r y -G e n e r a l (G e n e v a )

Aldo Matteucci

D e p u t y S e c r e t a r y -G e n e r a l

(B r u s s e l s )

Guttorm Vik

E-mail: [email protected] EFTA Homepage on the Internet: http://www.efta.int ORGANIGRAM OF THE EFTA SECRETARIAT

Secretary-General

EFTA SECRETARIAT OFFICE OF THE STATISTICAL EFTA SECRETARIAT HEADQUARTERS ADVISER (EEA MATTERS) GENEVA LUXEMBOURG BRUSSELS

DEPUTY SECRETARY-GENERAL STATISTICAL ADVISER DEPUTY SECRETARY-GENERAL

■ • Secretary General's Office • EEA Coordination

• Third Country Relations • Goods

• Special Tasks • Services and Capital Movements

• Administration • Persons and Programmes

• Administration and Publication