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Efta-Annual-Report-1997.Pdf 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
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