2367-RAPPORT-2011-05:1897-THIS-IS-EFTA-24 28/03/11 13:35 Page 1 50TH ANNUAL REPORT 2010 OF THE EUROPEAN FREE TRADE ASSOCIATION 1960 EFTA YEARS 2010 2367-RAPPORT-2011-05:1897-THIS-IS-EFTA-24 28/03/11 13:35 Page 2 Annual Report of the European Free Trade Association 2010 • Editor: Tore Grønningsæter • Copy Editor: Juliet Reynolds • Printed by Drifosett, Brussels Layout by Orangemetalic • Printed March 2011 Cover picture: The new railway link through the Alps: the Erstfeld-Amsteg section of the Gotthard Base Tunnel, Switzerland (Reuters/Arnd Wiegmann) Further copies of this issue are available free of charge by contacting [email protected] Editor’s note: For basic information on EFTA, please see the publication “This is EFTA”. Further information is also available on our website: www.efta.int/ 2367-RAPPORT-2011-07:1897-THIS-IS-EFTA-24 29/03/11 13:24 Page 3 FOREWORD EFTA celebrated its 50th anniversary in 2010 and EUR 1.79 billion will be entered its sixth decade in good health by making made available to projects significant progress in its two core areas of activity: the that contribute to social and European Economic Area and an expanding worldwide economic development in 15 network of free trade relations. EU Member States in Central and Southern Europe. EFTA’s 50th anniversary was celebrated in various ways during the year. Notably, an Anniversary book The anniversary year was also was published entitled “EFTA 1960-2010: Elements of productive in terms of EFTA’s 50 Years of European History”. The book was free trade relations. Following the finalisation of presented at a reception for 200 guests in Geneva on negotiations with Peru and Ukraine, the EFTA States 3 May, which marked the 50th anniversary of the entry signed free trade agreements with these two countries into force of the EFTA Convention. Special events at the EFTA Ministerial meeting in June in Reykjavik. were also held in connection with the EFTA Negotiations were launched with Hong Kong, China Ministerial meetings in Reykjavik and Geneva. on a comprehensive FTA, and the negotiation process with India made significant headway in the second half Fifteen years after its entry into force, the EEA of the year. Agreement continues to provide a solid framework for Iceland, Liechtenstein and Norway’s participation in In July, negotations on a Comprehensive Indonesia- the Internal Market of the European Union. With a EFTA Economic Partnership Agreement were combined population of over 500 million, the EEA launched and Joint Declarations on Cooperation were constitutes the world’s biggest common market. signed with Malaysia and Panama. EFTA Ministers, together with their counterparts from Russia, Belarus In 2010, 346 legal acts were incorporated into the EEA and Kazakhstan, launched negotiations on a broad- Agreement. Important additions include the based FTA on the occasion of the Ministerial meeting Regulation on Rail Passengers’ Rights and new rules in November in Geneva. A joint study group was also on mobile roaming charges to include SMS messages established to begin to explore the feasibility of an and the transfer of data. The EEA Joint Committee FTA with Vietnam. Decisions on the Food Law Package and Services Directive entered into force in May. In addition to developing a far-reaching bilateral free trade network, the EFTA States have continued to Through the EEA Agreement, the EEA EFTA States demonstrate their full commitment to achieving a are actively involved in a number of programmes and robust multilateral trading system, and have remained agencies playing an increasingly important role in the strong supporters of the World Trade Organization and EU. In this respect I would like to underline the full conclusion of the Doha Round. participation of Iceland, Liechtenstein and Norway in the European Food Safety Authority and the European Fifty years now underpin the work of the EFTA Agency for Safety and Health at Work. Our 2010 Secretariat, which has adapted constantly to serve the Bulletin provides a new and updated overview of needs of its Member States and partner countries. EFTA’s participation in 18 different EU programmes. Throughout 2010, the two Deputy Secretaries-General and I have strived to ensure that the Secretariat The first meetings of the EEA EFTA Forum of Local continues to provide the full range of services and and Regional Authorities, established in 2009 by a expertise to the EFTA States. Needless to say, these Decision of the EFTA Standing Committee, took place efforts will continue to be our priority for 2011. in 2010. Through the EEA Grants and Norway Grants, the EEA EFTA States contribute to reducing social and Kåre Bryn economic disparities within the EEA. As a result of new agreements reached in 2010, a total of Secretary-General 2367-RAPPORT-2011-05:1897-THIS-IS-EFTA-24 28/03/11 13:35 Page 4 TABLE OF CONTENTS FOREWORD 3 Flanking and Horizontal Policies 27 50TH ANNIVERSARY OF EFTA 5 EFTA-EU Cooperation in the Field of Statistics 30 EFTA COUNCIL 8 Technical Cooperation in the Field of Statistics 31 EFTA Ministerial Meetings 8 The EFTA Council at THE EEA GRANTS AND Ambassadorial Level 9 NORWAY GRANTS 33 The EFTA Convention 9 Annual Meeting of EFTA and ADVISORY BODIES 35 EU Finance Ministers 9 The Parliamentary Committees 35 FREE TRADE RELATIONS 10 The Consultative Committees 36 The EEA EFTA Forum 37 4 Main Developments 11 Management of EFTA’s Free INFORMATION ACTIVITIES 38 Trade Agreements and Joint Declarations on Cooperation 13 ADMINISTRATION 40 Technical Assistance 13 Relations with the WTO 13 APPENDICES 41 THE EEA AGREEMENT 16 FIGURES The EEA Council 16 Fig. 1: Joint Declarations on Cooperation and Free Trade Agreements between The EEA Joint Committee 16 EFTA and Non-EU Partners 10 The Standing Committee of Fig. 2: Joint Committee Meetings in 2010 13 the EFTA States 16 Fig. 3: Meetings Held and EU Acts Legal and Institutional Matters 17 Incorporated in 2010 18 Fig. 4: Publication in the EEA Supplement ANNUAL REPORT OF THE EUROPEAN FREE TRADE ASSOCIATION 2010 TRADE ASSOCIATION THE EUROPEAN FREE REPORT OF ANNUAL Free Movement of Goods 17 2010 39 Free Movement of Capital Fig. 5: 2010 EFTA Budget 40 and Services 25 Fig. 6: Contributions from the EFTA States Free Movement of Persons 27 to the 2010 EFTA Budget 40 2367-RAPPORT-2011-05:1897-THIS-IS-EFTA-24 28/03/11 13:35 Page 5 50TH ANNIVERSARY OF EFTA Anniversary Seminar bringing together former Ambassadors Jón Baldvin Hannibalsson of Iceland, Eivinn Berg of Norway and Franz Blankart of Switzerland. The seminar was moderated by Ernst Walch, former Minister of Foreign Affairs of Liechtenstein. Anniversary Book The Anniversary book, “EFTA 1960-2010: Elements of 50 Years of European History”, combines the presentations made at this seminar with several new essays and articles from earlier EFTA publications that illuminate the history and functions of EFTA. A special contribution to the book is a paper written in 1988 by Professor Paul Krugman, the 2008 Nobel Laureate in economics, on the basis for EFTA’s participation in the European Internal Market – the economic raison d’être for the EEA Agreement. The book also contains an overview of 50 years of EFTA and the Association’s free trade policies, in addition to a rich photo gallery. 3 May 2010 Celebration, 5 Geneva In November 2009, leaders from government and academia participated in a seminar to celebrate the 15th anniversary of the entry into force of the European Economic Area (EEA) in 2009 and the 50th anniversary of EFTA in 2010. Under the theme “EFTA 1960-2010: Partners in Progress” speakers focused on the development of EFTA in the wider European context and on the implications of EFTA and the EEA for their Member States. Professors Guðmundur Jónsson, University of Iceland, Helge Pharo, University of Oslo and René Schwok, University of Geneva, looked back at Europe in the 1950s and the political discussions that led to the creation of EFTA. They also addressed the effects of participation in EFTA EFTA’s Secretary-General Kåre Bryn opening the anniversary event on 3 May. on its Member States’ trade and economic growth. Professor Richard T. Griffiths from the University of Leiden reviewed the history of EFTA in a broader The Anniversary book was presented at a reception 2010 TRADE ASSOCIATION THE EUROPEAN FREE REPORT OF ANNUAL European context, while Dr Ulf Sverdrup from the with close to 200 participants in Geneva on 3 May, University of Oslo outlined the experiences of the EFTA 50 years to the day that the EFTA Convention entered States with the EEA Agreement and its present role in into force. This special event was attended by EFTA’s relations with the European Union. The sessions representatives of current and former EFTA Member were complemented by subsequent panel discussions States and EFTA’s free trade partner countries around 2367-RAPPORT-2011-05:1897-THIS-IS-EFTA-24 28/03/11 13:35 Page 6 the world. It included speeches by John Clarke, Chargé Ministerial Workshop on d’Affaires at the Mission of the European Union, Bozkurt Aran, Ambassador of Turkey, and Einar Trade, Geneva Gunnarsson, Permanent Secretary of State of the Ministry for Foreign Affairs of Iceland, on behalf of On the occasion of EFTA’s winter Ministerial meeting the EFTA Chairmanship. and under the chairmanship of Doris Leuthard, then- President of the Swiss Confederation, a workshop was held on 22 November to celebrate the 50th anniversary of EFTA. The workshop brought together four trade economists: Senior Research Fellow Anirudh Shingal, Bern; and Professors Richard Baldwin, Geneva; Peter Egger, Zürich; and Victor Norman, Oslo; to look at “The path ahead for world trade: FTAs and the multilateral trading system in 2020”.