WORLD TRADE
ORGANIZATIONWT/REG85/R/B/2
G/L/476
17 September 2001
(01-4386)
EUROPEAN FREE TRADE ASSOCIATION
Biennial Report on the Operation of the Convention
Communication from the European Free Trade Association
In accordance with the guidelines approved by the Council For Trade in Goods,1 as
recommended by the Committee on Regional Trade Agreements,2 and the reporting schedule
established by the WTO Secretariat,3 the European Free Trade Association (EFTA) hereby submits its
periodical report on the operation of the EFTA Convention (Convention) since 1999.  The last such
report was issued on 28 May 1999.4  The EFTA Secretariat regularly publishes an annual report which
is made available on the EFTA web page.  This web page also provides comprehensive information
on EFTA and its activities including links to its Member States.5
In the period 1999 to 2001, the Convention was subject to substantial modifications in respect
of its scope and coverage in the form of an Agreement amending the Convention.  This Agreementwas signed by the EFTA States in Vaduz, Liechtenstein, on 21 June 2001 and is expected to enter into
effect during the first half of 2002.  The revised consolidated version of the Convention, incorporating
all the amendments, has been made available on the EFTA web page.  The main part of the
consolidated version of the Convention is enclosed with this report as Annex I, while the Annexes
thereto have been forwarded electronically to the WTO Secretariat for consultation by interesteddelegations.
The provisions of the revised Convention pertaining to trade in services will be subject to a
separate notification to the WTO pursuant to Article V of the GATS.
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. The revision of the EFTA Convention
Since 1 January 1995, the European Free Trade Association consists of Iceland,
Liechtenstein, Norway and Switzerland.  For furthe r information on membership, dates of signature,
ratification, entry into force and withdrawal, reference is made to the last biennial report of
28 May 1999.
Since 1960, the relationship between the EFTA States was based on the Convention signed in
Stockholm, Sweden, that same year.  The scope and coverage of the original Convention was limited
to trade in goods and related disciplines.  In 1995, three of the Member States became Parties to the
European Economic Area Agreement with the European Community (Iceland, Liechtenstein andNorway).  Switzerland on its side concluded seven bilateral agreements with the EC in June 1999.
                                                     
1 G/L/286.
2 WT/REG/4.
3 WT/REG/W/33.
4 WT/REG85/R/B/1.
5 Http://www.efta.intWT/REG85/R/B/2
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Following the signing of the bilateral agreements, Switzerland proposed to the other EFTA Members
to extend to them the treatment accorded to a nd benefits obtained with the European Community
under the bilateral agreements on the basis of reciprocity.  The resulting revised and updated
Convention aims to strengthen the cohesion among  and improve the economic relations between the
four Member States.
4. Trade data
Trade among the four EFTA States has decreased by 13.1 per cent between 1997 and 2000,
falling from approximately 1,990 million US dollars in 1997 to about 1,729 million US dollars
in 2000.  In 1997, intra-EFTA trade accounted for 0.83 per cent of the EFTA States’ total trade withthe world.  In 2000, the share of intra-EFTA trade of EFTA’s trade with the world had fallen to
0.68 per cent.
The EFTA States’ trade with the world has expanded by 6.9 per cent during the same period,
increasing from 239.7 billion US dollars in 1997 to 256.1 billion US dollars in 2000.
The share of the EFTA States’ trade with the EU increased slightly from 68.5 per cent in 1997
to 68.9 per cent in 2000.  EFTA imports from the EU increased by 3.8 per cent between 1997
and 2000, while EFTA’s exports to the EU increased by 10.9 per cent.  Trade between the EFTA
States and the 15 EU countries expanded by 7.4 per cent between 1997 and 2000, from164.2 billion US dollars to 176.4 billion US dollars.
The EFTA States’ trade with other preferential partners expanded by 33.2 per cent during the
period of consideration, from 6.9 billion US dollars in 1997 to 9.1 billion US dollars in 2000.  Its
share of EFTA’s total trade has increased from 2.9 per cent in 1997 to 3.6 per cent in 2000.
Detailed trade data can be found in Annex II.
II. TRADE PROVISIONS OF THE REVISED CONVENTION
The list of amendments to the Convention introduced by the Agreement signed in June 2001
is extensive.  In a number of instances, the language of the original provisions has been modernised tobring it up to the present day trade terminology, while in other instances, substantive changes have
been introduced to reflect recent developments in international trade law, in particular the WTO
Agreements.  In the following description of the m odifications to the Convention, reference is made to
the Articles as numbered in the Consolidated Version of the Convention Establishing the European
Free Trade Areas, which in accordance with Article 2 of the Agreement Amending the Convention isconsidered to be an authentic version of the Convention.
1. Import Restrictions &
2. Export Restrictions
1.1/2.1 Duties and charges
In order to bring the provisions on import restrictions and their language up to the current
state of actual liberalisation between the EFTA States, Article 3 has been replaced by a new Article 3
prohibiting any customs duties on imports and exports, including customs duties of a fiscal nature.
Further, the old Articles 4 (Area tariff treatment), 5 (Deflection of trade) were deleted.  Article 6
(Revenue duties and internal taxation) was replaced by a new Article 4 confirming the present regimeWT/REG85/R/B/2
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between the EFTA Members by prohibiting the impositions of internal taxation of any kind in excess
of that imposed on domestic products.
In order to bring the provisions on export restrictions and the language used up to the current
state of affairs between the EFTA States, Articles  7 (Drawback) and 8 (Prohibition of export duties)
were deleted as they were considered redundant, and replaced by the new Article 3 referenced above.
1.2/2.2 Quantitative Restrictions
In order to modernise and bring the Convention up to present day intra-EFTA realities, the
old Article 10 (Quantitative import restrictions) has been replaced by a new Article 7 prohibiting theimposition of quantitative restrictions on imports and exports, and all measures having equivalent
effect between the Member States.  The old Article 11 (Quantitative export restrictions) has
consequently also been deleted.
3. Rules of Origin
Annex B of the Convention on rules of origin has been renamed Annex A on Rules of Origin,
and the origin rules and arrangements for administrative cooperation have been revised.  The last such
revision of the rules of origin took place in 1996 and entered into force on 1 January 1997.  The
revision of the rules of origin takes into account  recent developments in the pan-European rules of
origin which provide for diagonal cumulation among European countries interlinked with a network
of free trade agreements.
A new Annex I of the Convention on mutual administrative assistance in customs matters
entered into force in 2000.  Under the revised C onvention, this Annex has been renamed Annex B.
4. Standards
4.1 Technical regulations
A new Chapter III, Technical Barriers to Trad e, has been introduced in the Convention
amending and renumbering the old Article 12bis on notification of draft technical measures asArticle 14 and introducing a new Article 15 on mutual recognition of conformity assessment.
Annex H sets out the procedures for notification of technical regulations while Annex I provides for
mutual acceptance of reports, certificates, authorisations, conformity marks and manufacturer’s
declarations.  The new conformity assessment rules will apply to the following categories of products
and related assessments: machinery, personal protective equipment, toys, medical devices, gasappliances and boilers, pressure vessels, telecommunications installations, equipment used in
environments where there is a high risk of explosion, electrical and electromagnetic compatibility
appliances, construction plant and equipment, measuring instruments, motor vehicles, agricultural and
forestry tractors, Good Laboratory Practice, medicinal products, Good Medicinal Manufacturing
Practice, Inspection and Batch Certification.
4.2 Sanitary and phytosanitary measures
A new Article 12 and Annex G provide that the rights and obligations of the Member States
in respect to sanitary and phytosanitary measures are governed by the WTO Agreement on theApplication of Sanitary and Phytosanitary Measures.WT/REG85/R/B/2
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5. Safeguards
In the new Chapter XIV:  Exceptions and Safeguards, Articles 40 and 41 (Safeguard
measures) replace and modernise the old provisions in Article 20 on Difficulties in particular sectors.Moreover, the old Article 19 on Balance of payments difficulties has been deleted.
Article 40 establishes the conditions and Article 41 the procedures for the application of
safeguard measures between the Parties in case serious economic, societal or environmental
difficulties of a sectorial nature liable to persist, are arising.  Such safeguard measures must be
restricted with regard to their scope and duration to what is strictly necessary in order to remedy the
situation.  Priority must be given to measures that will least disturb the functioning of thisConvention. Any measures taken by an EFTA State will apply to all EFTA States.  It should be noted
that these provisions apply to all chapters of th e revised Convention, i.e., both to trade in goods and
services, investment and to the movement of persons.
The provisions in Article 40 are without prejudice to the application of specific safeguard
measures as specified in the Annexes to this Convention or of special safeguard measures in
accordance with Article 5 of the WTO Agreement on Agriculture.
6. Ant-Dumping and Countervailing Measures
Chapter XI:  Dumping, and a new Article 36 replace the old Article 17 which permitted the
use of anti-dumping and countervailing measures.  The new provision stipulates that anti-dumping
measures, countervailing duties and measures against illicit commercial practices are not to be applied
in relation between the Member States.
7. Subsidies and State-aid
Chapter IV:  State-aid, and a new Article 16 refers to State-aid:
• Paragraph 1 sets out that the rights and obligations of the Member States relating to
subsidies and countervailing measures are governed by Article XVI of the GATT
1994 and the WTO Agreement on Subsidies and Countervailing Measures, which are
incorporated and made part of the Convention.
• Paragraph 2 foresees that Members States may not apply countervailing measures in
relations between them in accordance with the new Article 36, referenced above
under Dumping.
8. Sector-Specific Provisions
8.1 Agriculture
While recognising the special considerations that affect agriculture, a number of
improvements to facilitate trade in agricultural products have been introduced in the Convention byway of a  new Article 8 (Agricultural goods) and Article 9 (Parts I and II – Goods of Annex C
(processed agricultural goods)).  The new elements mainly concern:
• the inclusion under the Convention of tariff concessions for basic agricultural products that
were formerly covered by separate bilateral agreements between the individual EFTA
Member States (new Article 8);WT/REG85/R/B/2
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• new tariff concessions on certain agricultural products;  and
• the facilitation of trade in seeds and organically produced agricultural products through the
reduction or elimination of technical barriers (Article 11 - Seeds and Organic Agriculture).
8.2 Fish and other marine products
A new Article 10 (Fish and other marine products) consolidates the existing free trade regime
for these products on which duties and other restrictions had been eliminated in 1989.
9. Other
9.1 State monopolies
A new Chapter V:  Public Undertakings and monopolies and a new Article 17 replace the old
Article 14 on Public undertakings.  The new provisions have been modernised and disciplines
strengthened, providing that the Members States must ensure that public undertakings refrain fromapplying measures the effect of which is to afford protection to domestic production inconsistent with
the Convention, and trade discrimination on grounds of nationality.  These provisions also apply to
the activities of public undertakings, and undertakings for which the Member States grant special or
exclusive rights, in so far as the application of th ese provisions does not obstruct the performance, in
law or in fact, of the particular public tasks assigned to them.
9.2 Rules of competition concerning undertakings
A new Chapter VI:  Rules of Competition and a new Article 18 replace the old Article 15
(Restrictive business practices).  Article 18 stipulates that practices consisting of (i) agreementsbetween enterprises, decisions by associations of enterprises and concerted practices between
enterprises which have as their object or result the prevention, restriction or distortion of competition;
and (ii) abuse by one or more undertakings of a dominant position in the territories of the Member
States as a whole or in a substantial part thereof are incompatible with the Convention in so far as they
frustrate the benefits arising from the Convention.  Article 17, paragraph 3 prescribes that theprovisions of Article 18 apply also to public undertakings dealt with in Chapter V.
9.3 Internal taxation
A new Article 4 replacing the old Article 6 (Revenue duties and internal taxation) provides
that the Member States may not impose, directly or indirectly, on the products of other Member States
any internal taxation of any kind in excess of that imposed directly or indirectly on similar domesticproducts.  Furthermore, no Member State is permitted impose on the products of other Member States
any internal taxation of such a nature as to afford indirect protection to other products.  Where
products are exported to the territory of any Member State, any repayment of internal taxation shall
not exceed the internal taxation imposed on them whether directly or indirectly.
9.4 Payments and transfers
In a new Chapter XIII:  Current payments, Article 38 provides that current payments
connected with the movement of goods, persons, services or capital between Member States within
the framework of the provisions of this Convention shall be free of all restrictions.WT/REG85/R/B/2
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9.5 Public procurement
Under the new Chapter XII on Public Procurement Article 37 reaffirms the right and
obligations of the Member States under the WTO Agreement on Government Procurement (GPA),and broadens the scope of these commitments in accordance with the provisions set out in a new
Annex V to the Convention.  Annex V extends th e scope of public procurement among the EFTA
States to cover, in addition to their commitments under the GPA, the purchases of products and
services by railway operators, entities active in the field of energy other than electricity and private
utilities active on the basis of special or exclusive rights in the fields of drinking water, electricity,
urban transport, ports and airports by Member States.  The new rules further provide that the entities
covered are encouraged to apply non-discriminatory, transparent and reciprocal treatment also to theaward of contracts of value below the thresholds specified in the Convention.
9.6 Intellectual property
In accordance with the new Chapter VII on Protection of Intellectual Property and Article 19,
Member States are under an obligation to grant and ensure adequate and effective protection of
intellectual property rights.  They must enforce such rights against infringement, counterfeiting and
piracy in accordance with the provisions of Articl e 19 and with the international agreements referred
to in Annex J.  They are to accord to each othe r’s nationals national treatment, except if permitted in
accordance with Article 3 of the TRIPS Agreement, and MFN treatment, except if this is permitted bythe TRIPS Agreement.
The relevant standards are defined in Annex J by reference to multilateral agreements (TRIPS
Agreement, Stockholm Act 1967, Paris Act 1971, Rome Convention 1961, Geneva Act 1999, WIPO
Copyright Treaty 1996 and WIPO Performances and Phonogram Treaty 1996).  The European Patent
Convention 1973 and the EEA Agreement are to dete rmine the level of protection in Liechtenstein
and Switzerland and in Iceland and Norway respectiv ely with regard to technology patents.  Specific
provisions have been inserted with regard to th e additional term of protection for pharmaceuticals and
plant protection products, designs, and geographical indications.
The Members States agree to review the provisions on the protection of intellectual property
rights with a view to further improving levels of protection and to avoid or remedy trade distortions
caused by actual levels of protection of intellectual property rights provided one Member State so
requests.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
1.1 Exceptions
A new Article 13, Exceptions, introduces a modernised version of the old Article 12 similar to
Article XX GATT by confirming the right of the Member States to impose prohibitions or restrictionson imports, exports or goods in transit on grounds of public morality, public health or public security;
the protection of health and life of humans, animals and plants, including the environmental measures
necessary to protect human, animal or plant life or health and for the protection of intellectual
property, rules related to gold, silver and for the conservation of exhaustive natural resources.WT/REG85/R/B/2
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1.2 Security exceptions
A new Article 39 on Security exceptions similar to Article XXI GATT replacing the old
Article 18 permit Members States to take security measures when they consider such measuresnecessary to prevent disclosure of information contrary to their essential security interests, for the
protection of their essential security interests or for the implementation of international obligations or
national policies, as further defined in Article 39.
2. Accessions
The old Article 41 on Accession has been amended by the addition of a new paragraph 3 and
renumbered as Article 56 in the revised Convention. Paragraph 3 provides that any State acceding to
the Convention are obliged to become a party to the free trade agreements between the Member States
on the one hand and third States, unions of states or international organisations on the other.
Otherwise no changes have been introduced in respect to accession, which remains open to any State.
3. Dispute Settlement Procedures
A new Chapter XVII: Consultations and Dispute Settlement, contains rules on dispute
resolution and settlement.  Article 47 provides that the Member States  at all times must endeavour to
agree on the interpretation of the Convention and make every attempt to cooperate and consult inorder to arrive at a mutually satisfactory resolution of any matter that might affect the operation of the
Convention.
Any Member State may bring a matter relating to the interpretation of the Convention before
the Council which is to examine the situation with  a view to finding an acceptable solution.  Such
meetings of the Council are to held within 30 days from the receipt of the request for consultations.  If
a matter is not resolved within 45 days after consultations have been held, the matter may be referred
to arbitration by one or more Member States parties to the dispute by means of a written notification
addressed to the Member State complained against.  More than one Member State may requests the
submission to an arbitration tribunal of a dispute, a nd in such cases a single arbitration tribunal should
be established to consider the dispute.
The establishment and functioning of the arbitration tribunal and the implementation of
arbitral awards are governed by the ru les set out in Annex X to the Convention.
The award of the arbitration tribunal is final and binding upon the Member States parties to
the dispute and must be complied with promptly.
5. Institutional Framework
The institutional set up and framework under the revised Convention, set out in Chapter XVI:
Institutional Provisions and Article 43, reflect recent developments in the Association, in particular
the conclusion since 1990 of free trade agreements with third countries, and also the introduction of a
new dispute settlement mechanism under the Convention.  The responsibilities of the Council have
accordingly been extended to include functions relating to the negotiation of trade and co-operation
agreements with other States, union of States or international organisations.  With regard to dispute
settlement, the Council has been given additional tasks to endeavour to resolve disputes that may arise
regarding the interpretation or application of this Convention in accordance with the new provisionson dispute settlement, see below.WT/REG85/R/B/2
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ANNEX I
Annex XX to the Agreement amending the
Convention establishing the European Free Trade Association
Consolidated version of the Convention establishing the European Free Trade Association
CONVENTION ESTABLISHING THE EUROPEAN FREE TRADE ASSOCIATION
CONVENTION ESTABLISHING THE EUROPEAN
FREE TRADE ASSOCIATION
The Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the
Swiss Confederation (hereinafter referred to as the "Member States");
Having  regard to the conclusion on 4 January 1960, between the Republic of Austria, the
Kingdom of Denmark, the Kingdom of Norway, th e Portuguese Republic, the Kingdom of Sweden,
the Swiss Confederation and the United Kingdom of Great Britain and Northern Ireland, of the
Convention establishing the European Free Trade Association (hereinafter referred to as the
"Convention");
Having  regard to the association with the Republic of Finland and its subsequent accession on
1 January 1986, and to the accessions by the Republic of Iceland on 1 March 1970 and by the
Principality of Liechtenstein on 1 September 1991;
Having regard to the successive withdrawals from the Convention by the Kingdom of
Denmark and the United Kingdom on 1 January 1973;   the Republic of Portugal on 1 January 1986;
the Republic of Austria, the Republic of Finland and the Kingdom of Sweden on 1 January 1995;
Having  regard to the free trade agreements between the Member States on the one hand and
third parties on the other;
Reaffirming  the high priority they attach to the privileged relationship between the Member
States and to the facilitation of continuity in their respective good relations with the European Union,
which are based on proximity, long-standing common values and European identity;
Resolved  to deepen the co-operation instituted within the European Free Trade Association,
further facilitating the free movement of goods, aiming at the progressive attainment of free
movement of persons and the progressive liberalisation of trade in services and investment, furtheropening up the public procurement markets in the EFTA States, and providing for the appropriate
protection of intellectual property rights, under fair conditions of competition;
Building  on their respective rights and obligations under the Agreement establishing the
World Trade Organization and other multilateral and bilateral instruments of co-operation;
Recognising  the need for mutually supportive trade and environmental policies in order to
achieve the objective of sustainable development;
Affirming  their commitment to the observance of r ecognised core labour standards, noting
their endeavours to promote such standards in the appropriate multilateral fora and expressing their
belief that economic growth and development fostered by increased trade and further trade
liberalisation contribute to the promotion of these standards;WT/REG85/R/B/2
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Have agreed  as follows:
CHAPTER I - OBJECTIVES
Article 1
The Association
An international organisation to be known as the European Free Trade Association,
hereinafter referred to as "the Association", is hereby established.
Article 2
Objectives
The objectives of the Association shall be:(a) to promote a continued and balanced strengthening of trade and economic relations
between the Member States with fair conditions of competition, and the respect ofequivalent rules, within the area of the Association;
(b) the free trade in goods;(c) to progressively liberalise the free movement of persons;(d) the progressive liberalisation of trade in services and of investment;(e) to provide fair conditions of competition affecting trade between the Member States;(f) to open the public procurement markets of the Member States;
(g) to provide appropriate protection of intellectual property rights, in accordance with
the highest international standards.
CHAPTER II - FREE MOVEMENT OF GOODS
Article 3
Customs Duties on Imports and Exports, and Charges having Equivalent effect
Customs duties on imports and exports, and any charges having equivalent effect, shall be
prohibited between the Member States.  This shall also apply to customs duties of a fiscal nature.WT/REG85/R/B/2
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Article 4
Internal Taxation
1. No Member State shall impose, directly or indirectly, on the products of other Member States
any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic
products.
2. Furthermore, no Member State shall impose on the products of other Member States any
internal taxation of such a nature as to afford indirect protection to other products.
3. Where products are exported to the territory of any Member State, any repayment of internal
taxation shall not exceed the internal taxation imposed on them whether directly or indirectly.
Article 5
Rules of Origin
The rules of origin and methods of administrative cooperation in customs administration are
set out in Annex A.
Article 6
Mutual Assistance in Customs Matters
1. Member States shall assist each other in customs matters in general in accordance with the
provisions of Annex B in order to ensure that their customs legislation is correctly applied.
2. Annex B shall apply to all products whether or not covered by the provisions of this
Convention.
Article 7
Quantitative Restrictions on Imports and Exports, and
Measures having Equivalent Effect
Quantitative restrictions on imports and exports, and all measures having equivalent effect,
shall be prohibited between the Member States.
Article 8
Agricultural Goods
1. In view of the special considerations affecting agriculture, the basic agricultural goods and the
goods processed from agricultural raw materials listed in Annex C shall be subject to the following
rules:
(a) In relation to the goods listed in Part I of Annex C, the provisions of this Convention
shall apply, with due regard to the arrangements provided for in Article 9.WT/REG85/R/B/2
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(b) In relation to goods listed in Part II or in Part III of Annex C, and with due regard to
the arrangements provided for in Article 9, Articles 2, 3, 4 and 7 shall not apply.
(c) In relation to the goods listed in Part III of Annex C, the Member States declare their
readiness to foster, in so far as their agricultural policies allow, the harmonious
development of trade.  In pursuance of this objective, Iceland shall grant tariff
concessions to agricultural products originating in Norway and Switzerland6 as
specified in Table 1 of Annex D, Norway sh all grant tariff concessions to agricultural
products originating in Iceland and Switzerland7 as specified in Table 2 of Annex D,
and Switzerland8 shall grant tariff concessions to agricultural products originating in
Iceland and Norway as specified in Table 3 of Annex D.  Article 15 of Annex A shallnot apply to goods listed  in Part III of Annex C.
2. Chapter IV on State aid, Chapter VI on competition and Chapter XII on public procurement
shall not apply to agricultural goods.
Article 9
Parts I and II - Goods of Annex C (processed agricultural goods)
1. In order to take account of differences in the cost of the agricultural raw materials
incorporated in the goods specified in Part I of Annex C referred to in sub-paragraph (a) of Article 8,
the Convention does not preclude, in respect of such goods:
(a) the levying, upon import, of a fixed duty;
(b) the application of internal price compensation measures;
(c) the application of measures adopted upon export.
2. The fixed duties, levied upon import of goods listed in Part I of Annex C, shall be based on,
but not exceed, the differences between the domestic price and the world market price of the
agricultural raw materials incorporated into the goods concerned.
3. With due regard to the provisions in paragraph 2, no Member State shall accord to imports of
goods listed in Part I or in Part II of Annex C from the territory of another Member State a treatment
less favourable than it accords to imports from th e territory of the European Community or any other
free trade partner.
4. The Member States shall notify each other of all changes in the treatment for products listed
in Part I or in Part II of Annex C accorded to th e European Community or any other free trade partner.
                                                     
6 Also applies to the Principality of Liechtenstein as long as its Customs Union Treaty of 29 March
1923 with Switzerland remains in force.
7 Also applies to the Principality of Liechtenstein as long as its Customs Union Treaty of 29 March
1923 with Switzerland remains in force.
8 Also applies to the Principality of Liechtenstein as long as its Customs Union Treaty of 29 March
1923 with Switzerland remains in force.WT/REG85/R/B/2
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Article 10
Fish and Other Marine Products
The provisions of this Convention shall apply in  relation to fish and other marine products.
Article 11
Seeds and Organic Agriculture
1. Specific rules on seeds are set out in Annex E.2. Specific rules on organic agriculture are set out in Annex F.
Article 12
Sanitary and Phytosanitary Measures
The rights and obligations of the Member States in respect of sanitary and phytosanitary
measures shall be governed by Annex G.
Article 13
Exceptions
The provisions of Article 7 shall not preclude prohibitions or restrictions on imports, exports
or goods in transit justified on grounds of public morality;  public policy or public security;  the
protection of health and life of humans, animals or plants and of the environment; the protection of
national treasures possessing artistic, historic or archaeological value;  or the protection of industrial
and commercial property.  Such prohibitions or restrictions shall not, however, constitute a means of
arbitrary discrimination or a disguised restriction on trade between the Member States.
CHAPTER III - TECHNICAL BARRIERS TO TRADE
Article 14
Notification of Draft Technical Regulations
1. Member States shall notify to the Council at th e earliest practicable stage all draft technical
regulations or amendments thereto.
2. The provisions on the notification procedure are set out in Annex H.WT/REG85/R/B/2
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Article 15
Mutual Recognition of Conformity Assessment
Without prejudice to Article 7, Switzerland, on the one hand, and Iceland, Liechtenstein and
Norway, on the other, grant mutual acceptance of reports, certificates, authorisations, conformity
marks and manufacturer’s declarations of conformity in accordance with Annex I.
CHAPTER IV - STATE AID
Article 16
State Aid
1. The rights and obligations of the Member States relating to State aid shall be based on
Article XVI of the GATT 1994 and the WTO Agr eement on Subsidies and Countervailing Measures,
which are incorporated and made part of the Convention, except as otherwise provided for in
Annex Q.
2. Member States shall not apply countervailing measures as provided for under Part V of the
WTO Agreement on Subsidies and Countervailing Measures in relation to any other Member State inaccordance with Article 36.
3. The Member States shall review the scope of application of this Chapter with a view to
extending the disciplines with respect to State aid to the field of services, taking into account
international developments in the sector.  The reviews shall take place at yearly intervals.
CHAPTER V - PUBLIC UNDERTAKINGS AND MONOPOLIES
Article 17
Public Undertakings and Monopolies
1. Member States shall ensure that public undertakings refrain from applying
(a) measures the effect of which is to afford protection to domestic production which
would be inconsistent with this Convention if achieved by means of a duty or charge
with equivalent effect, quantitative restriction or government aid, or
(b) trade discrimination on grounds of nationality in so far as it frustrates the benefits
expected from the removal or absence of duties and quantitative restrictions on trade
between Member States.
2. For the purposes of this Article, "public undertakings" means central, regional, or local
government authorities, public enterprises and any other organisation by means of which a Member
State, by law or in practice, controls or appreciably influences imports from, or exports to, the
territory of a Member State.WT/REG85/R/B/2
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3. The provisions of paragraph 1 of Article 18 shall also apply to the activities of public
undertakings, and undertakings for which the Member States grant special or exclusive rights, in so
far as the application of these provisions does not obstruct the performance, in law or in fact, of the
particular public tasks assigned to them.
4. Paragraph 3 shall apply to Annex Q.  The Member States shall review the scope of
application of this Chapter with a view to extending the disciplines to other services, taking into
account international developments in the sector.  The reviews shall take place at yearly intervals.
5. Member States shall ensure that new practices of the kind described in paragraph 1 of this
Article are not introduced.
6. Where Member States do not have the necessary legal powers to control the activities of
regional or local government authorities or enterpri ses under their control in these matters, they shall
nevertheless endeavour to ensure that those authorities or enterprises comply with the provisions of
this Article.
CHAPTER VI - RULES OF COMPETITION
Article 18
Competition
1. Member States recognise that the following practices are incompatible with this Convention
in so far as they frustrate the benefits arising from this Convention:
(a) agreements between enterprises, decisions by associations of enterprises and
concerted practices between enterprises which have as their object or result theprevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the
Member States as a whole or in a substantial part thereof.
2. Should a Member State consider that a given practice is incompatible with this Article, it may
ask for consultations in accordance with the procedures set out in Article 47 and take appropriate
measures under the conditions set out in paragraph 2 of Article 40 to deal with the difficulties
resulting from the practice in question.
CHAPTER VII - PROTECTION OF INTELLECTUAL PROPERTY
Article 19
1. Member States shall grant and ensure adequate and effective protection of intellectual
property rights, and provide for measures for the enforcement of such rights against infringement
thereof, counterfeiting and piracy, in accordance with the provisions of this Article, Annex J to this
Agreement and the international agreements referred to therein.WT/REG85/R/B/2
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2. Member States shall accord to each other’s nationals treatment no less favourable than that
they accord to their own nationals.  Exemptions from this obligation must be in accordance with the
substantive provisions of Article 3 of the TRIPS Agreement.
3. Member States shall grant to each other’s nationals treatment no less favourable than that
accorded to nationals of any other State.  Exemptions from this obligation must be in accordance with
the substantive provisions of the TRIPS Agreement, in particular Articles 4 and 5 thereof.
4. Member States agree, upon request of any Member State, to review the provisions on the
protection of intellectual property rights contained in the present Article, with a view to further
improve levels of protection and to avoid or remedy trade distortions caused by actual levels ofprotection of intellectual property rights.
CHAPTER VIII - FREE MOVEMENT OF PERSONS
Article 20
Movement of Persons
1. Freedom of movement of persons shall be secured among Member States in accordance with
the provisions set out in Annex K and in the Protocol to Annex K on the free movement of personsbetween Liechtenstein and Switzerland.
2. The objective of this Article for the benefit of the nationals of the Member States shall be:
(a) to accord a right of entry, residence, access to work as employed persons,
establishment on a self-employed basis and the right to stay in the territory of the
Member States;
(b) to facilitate the provision of services in the territory of the Member States, and in
particular to liberalise the provision of services of brief duration;
(c) to accord a right of entry into, and residence in, the territory of the Member States to
persons without an economic activity in the host State;
(d) to accord the same living, employment and working conditions as those accorded to
nationals.
Article 21
Coordination of Social Security Systems
In order to provide freedom of movement of persons, the Member States shall make
provision, in accordance with Appendix 2 of Annex K and with the Protocol to Annex K on the freemovement of persons between Liechtenstein and Switzerland, for the coordination of social security
systems with the aim in particular of:
(a) securing equality of treatment;
(b) determining the legislation applicable;WT/REG85/R/B/2
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(c) aggregating, for the purpose of acquiring and retaining the right to benefit and of
calculating the amount of benefit, of all periods taken into consideration by the
national legislation of the States concerned;
(d) paying benefits to persons resident in the territories of the Member States;
(e) fostering mutual administrative assistance and cooperation between authorities and
institutions.
Article 22
Mutual Recognition of Professional Qualifications
In order to make it easier for nationals of the Member States to take up and pursue activities
as workers and self-employed persons, the Member States shall take the necessary measures, as
contained in Appendix 3 to Annex K and in the Protocol to Annex K on the free movement of persons
between Liechtenstein and Switzerland, concerning the mutual recognition of diplomas, certificatesand other evidence of formal qualifications, and the coordination of the provisions laid down by law,
regulation or administrative action in the Member States concerning the taking up and pursuit of
activities by workers and self-employed persons.
CHAPTER IX - INVESTMENT
Section I - Establishment
Article 23
Principles and Scope
1. Within the framework of, and subject to, the pr ovisions of this Convention, there shall be no
restrictions on the right of establishment of companie s or firms, formed in accordance with the law of
a Member State and having their registered office, central administration or principal place of
business in the territory of the Member States.  This shall also apply to the setting up of agencies,
branches or subsidiaries by companies or firms of any Member State established in the territory of anyother Member State.
The right of establishment shall include the right to set up, acquire and manage undertakings,
in particular companies or firms within the mean ing of paragraph 2, under the conditions laid down
for its own undertakings by the law of the Member State where such establishment is effected, subjectto the provisions set out hereafter.
2. For the purposes of this Chapter:
(a) "subsidiary" of a company shall mean a company which is effectively controlled by
the first company;
(b) "companies or firms" shall mean companies or firms constituted under civil or
commercial law, including cooperative societies, and other legal persons governed by
public or private law, save for those which are non-profit-making; in order to beconsidered as a company or firm of a Member State, the company or firm shall have a
real and continuous link with the economy in that Member State.WT/REG85/R/B/2
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3. Annexes L to O contain specific provisions and exemptions regarding the right of
establishment.  The Member States shall endeavour to eliminate gradually remaining discriminations,
which they may maintain in accordance with Annexes L to O.  The Member States agree to review thepresent provision, including its Annexes, within two years after the entry into force of the Agreement
amending the Convention establishing the European  Free Trade Association of 21 June 2001 with a
view to reducing, and ultimately eliminating, the remaining restrictions.
4. From the date of entry into force of the Agreement amending the Convention establishing the
European Free Trade Association of 21 June 2001, neither Member State shall adopt new, or more,
discriminatory measures as regards the establishment and operation of companies or firms of anotherMember State, in comparison with the treatment accorded to its own companies or firms.
5. In sectors covered by an exemption as containe d in Annexes L to O, each Member State shall
accord to companies or firms of another Member State treatment no less favourable than that accorded
to companies or firms of third parties other th an the European Community.  As regards any new
agreements concluded between any Member State and the European Community, the Member States
further undertake to extend to each other, on the basis of reciprocity, the benefits of such agreements,
subject to a decision by the Council.
6. The right of establishment in the field of road, rail and air transport shall be governed by the
provisions of Article 35 and Annexes P and Q, subject to the specific provisions and exemptions setout in Annexes L and M.
7. The right of establishment of natural persons shall be governed by the provisions of
Article 20, Annexes K and the Protocol to Annex K on movement of persons between Liechtenstein
and Switzerland.
Article 24
National Treatment
1. Within the scope of application of this Chapter, and without prejudice to any special
provisions contained herein:
(a) Member States shall grant treatment no less favourable than that accorded to their
own companies or firms;
(b) each Member State may regulate the establishment and operation of companies or
firms on its territory, in so far as these regulations do not discriminate againstcompanies or firms of the other Member States in comparison to its own companies
or firms.
2. The provisions of this Article do not preclude the application by a Member State of particular
rules concerning the establishment and operation in its territory of branches and agencies ofcompanies of another Member State not incorporated in the territory of the first Member State, which
are justified by legal or technical differences between such branches and agencies as compared to
branches and agencies of companies incorporated in its territory.  The difference in treatment shall not
go beyond what is strictly necessary as a result of such legal or technical differences.WT/REG85/R/B/2
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Article 25
Financial Market Regulation
1. In respect of financial services, this Chapter does not prejudice the right of the Member States
to adopt measures necessary for prudential grounds in order to ensure the protection of investors,
depositors, policy holders, or persons to whom a fiduciary duty is owed, or to ensure the integrity and
stability of the financial system.  These measures shall not discriminate against companies or firms of
the other Member States in comparison to its own companies or firms.
2. Nothing in this Chapter shall be construed to require a Member State to disclose information
relating to the affairs and accounts of individual customers or any confidential or proprietaryinformation in the possession of public entities.
Article 26
Recognition
1. A Member State may enter into an agreement or arrangement with a particular State
providing for the recognition of standards, criteria for authorization, licensing or certification of
service suppliers, in which case it shall offer adequate opportunity for any other Member State to
negotiate its accession to such an agreement or arrangement or to negotiate comparable ones with it.
2. Where a Member State accords recognition as provided for in paragraph 1 autonomously, it
shall afford adequate opportunity for any other Member State to demonstrate that experience, licences
or certifications obtained or requirements met in that other Member State’s territory should be
recognised.
3. A Member State shall not accord recognition in a manner which would constitute a means of
discrimination between countries in the application of its standards or criteria for the authorisation,
licensing or certification of service suppliers, or a disguised restriction to establishment in the services
sector.
Article 27
Exceptions
1. The provisions of this Chapter shall not apply, so far as any given Member State is concerned,
to activities which in that Member State are connected, even occasionally, with the exercise of official
authority.
2. The provisions of this Chapter and measures taken in pursuance thereof shall not prejudice
the applicability of provisions laid down by law, regulation or administrative action providing for
special treatment for foreign companies or firms on grounds of public policy, public security, public
health or the environment.
3. Subject to the requirement that such measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination between States where like conditions
prevail, or a disguised restriction on trade in services, nothing in this Convention shall be construed to
prevent the adoption or enforcement by any Member State of measures:WT/REG85/R/B/2
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(a) inconsistent with Article 24, provided that the difference in treatment is aimed at
ensuring the equitable or effective9 imposition or collection of direct taxes in respect
of services or service suppliers of other Member States;
(b) inconsistent with paragraph 5 of Article 23, provided that the difference in treatment
is the result of an agreement on the avoidance of double taxation or provisions on the
avoidance of double taxation in any other international agreement or arrangement by
which the Member State is bound.
Section II - Capital Mouvement
Article 28
1. Within the framework of this Chapter, there shall be no restrictions between the Member
States on the movement of capital relating to the establishment in another Member State’s territory of
a company or firm of that Member State.
2. The movement of capital not relating to establishment between the Member States shall be
ensured in accordance with the internati onal agreements to which they are parties.
3. The Member States agree to review the present provision within two years after the entry into
force of the Agreement amending the Convention establishing the European Free Trade Association
of 21 June 2001 in order to broaden the scope of, and ultimately eliminate the remaining restrictions
to, the movement of capital.
                                                     
9 Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include
measures taken by a Member under its taxation system which:
(i) apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-
residents is determined with respect to taxable items sourced or located in the Member State’s
territory; or
(ii) apply to non-residents in order to ensure the imposition or collection of taxes in the Member
State’s territory; or
(iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes,
including compliance measures; or
(iv) apply to consumers of services supplied in or from the territory of another Member State in
order to ensure the imposition or collection of taxes of such consumers derived from sourcesin the Member State’s territory; or
(v) distinguish service suppliers subject to tax on world-wide taxable items from other service
suppliers, in recognition of the difference in the nature of the tax base between them;  or
(vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident
persons or branches, or between related persons or branches of the same person, in order tosafeguard the Member State’s tax base.
Tax terms or concepts in paragraph 3(a) of Article 27 and in this footnote are determined according to tax
definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the
Member State taking the measure.WT/REG85/R/B/2
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CHAPTER X - TRADE IN SERVICES
Article 29
Principles and Scope
1. Within the framework of, and subject to, the pr ovisions of this Convention, there shall be no
restrictions on the right to supply services within the territory of the Member States in respect of
natural persons, companies or firms of Member States who are established in a Member State other
than that of the natural person, company or  firm for whom the services are intended.
2. For the purposes of this Chapter, services shall be considered to be "services" within the
meaning of this Convention where they are normally supplied for remuneration:
(a) from the territory of one Member State into the territory of another Member State;(b) in the territory of a Member State to the service consumer of another Member State in
accordance with paragraph 7 below;
(c) by service supplier of a Member State, through presence of natural persons of that
Member State in the territory of another Member State in accordance with
paragraph 7 below.
3. Annexes L to O contain specific provisions and exemptions regarding the right to supply
services.  The Member States shall endeavour to eliminate gradually remaining discriminations,
which they may maintain in accordance with Annexes L to O.  The Member States agree to review the
present provision, including its Annexes, within two years after the entry into force of the Agreement
amending the Convention establishing the European  Free Trade Association of 21 June 2001 with a
view to reducing, and ultimately eliminating, the remaining restrictions.
4. From the date of entry into force of the Agreement amending the Convention establishing the
European Free Trade Association of 21 June 2001, neither Member State shall adopt new, or more,
discriminatory measures as regards services or service suppliers of another Member State, in
comparison with the treatment accorded to its own like services or service suppliers.
5. In sectors covered by an exemption as containe d in Annexes L to O, each Member State shall
accord to services or service suppliers of another Member State treatment no less favourable than that
accorded to like services or service suppliers of third parties other than the European Community.  As
regards any new agreements concluded between any Member State and the European Community, theMember States further undertake to extend to each other, on the basis of reciprocity, the benefits of
such agreements, subject to a decision by the Council.
6. The right to supply services in the field of road, rail and air transport shall be governed by the
provisions of Article 35 and Annexes P and Q, subject to the specific provisions and exemptions setout in Annex M.
7. The supply or consumption of services by natural persons as provided for in paragraphs 2(b)
and (c) shall be governed by the relevant provisions of Article 20, Annex K and the Protocol to
Annex K on movement of persons between Liechtenstein and Switzerland, in accordance with theprinciples set out hereinafter.WT/REG85/R/B/2
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Article 30
National Treatment
Within the scope of application of this Chapter, and without prejudice to any special
provisions contained herein:
(a) Member States shall grant treatment no less favourable than that accorded to their
own natural persons, companies or firms providing services;
(b) each Member State may regulate services activities within its territory in so far as
these regulations do not discriminate against natural persons, companies or firms ofthe other Member States in comparison to its own natural persons, companies or
firms.
Article 31
Financial Market Regulation
1. In respect of financial services, this Chapter does not prejudice the right of the Member States
to adopt measures necessary for prudential grounds in order to ensure the protection of investors,
depositors, policy holders, or persons to whom a fiduciary duty is owed, or to ensure the integrity and
stability of the financial system.  These measures shall not discriminate against natural persons,companies or firms of the other Member States in comparison to its own natural persons, companies
or firms.
2. Nothing in this Chapter shall be construed to require a Member State to disclose information
relating to the affairs and accounts of individual customers or any confidential or proprietaryinformation in the possession of public entities.
Article 32
Recognition
1. The mutual recognition between the Member States of diplomas, certificates and other
evidence of formal qualifications, and the coordinatio n of the provisions laid down by law, regulation
or administrative action in the Member States concerning the taking up and pursuit of activities by
natural persons, shall be governed by the relevant provisions of Article 22, Annex K and Appendix 3
thereto and the Protocol to Annex K on movement of persons between Liechtenstein and Switzerland.
2. A Member State may enter into an agreement or arrangement with a particular State
providing for the recognition of standards, criteria for authorization, licensing or certification of
service suppliers, in which case it shall offer adequate opportunity for any other Member State to
negotiate its accession to such an agreement or arrangement or to negotiate comparable ones with it.
3. Where a Member State accords recognition as provided for in paragraph 2 autonomously, it
shall afford adequate opportunity for any other Member State to demonstrate that experience, licences
or certifications obtained or requirements met in that other Member State’s territory should be
recognised.WT/REG85/R/B/2
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4. A Member State shall not accord recognition in a manner which would constitute a means of
discrimination between countries in the application of its standards or criteria for the authorisation,
licensing or certification of service suppliers, or a disguised restriction to trade in services.
Article 33
Exceptions
1. The provisions of this Chapter shall not apply, so far as any given Member State is concerned,
to activities which in that Member State are connected, even occasionally, with the exercise of official
authority.
2. The provisions of this Chapter and measures taken in pursuance thereof shall not prejudice
the applicability of provisions laid down by law, regulation or administrative action providing for
special treatment of foreign service suppliers on grounds of public policy, public security, public
health or the environment.
3. Subject to the requirement that such measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination between States where like conditions
prevail, or a disguised restriction on trade in services, nothing in this Convention shall be construed to
prevent the adoption or enforcement by any Member State of measures:
(a) inconsistent with Article 30, provided that the difference in treatment is aimed at
ensuring the equitable or effective10 imposition or collection of direct taxes in respect
of services or service suppliers of other Member States;
(b) inconsistent with paragraph 5 of Article 29, provided that the difference in treatment
is the result of an agreement on the avoidance of double taxation or provisions on theavoidance of double taxation in any other international agreement or arrangement by
which the Member State is bound.
                                                     
10 Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include
measures taken by a Member under its taxation system which:
(i) apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-
residents is determined with respect to taxable items sourced or located in the Member State’s
territory; or
(ii) apply to non-residents in order to ensure the imposition or collection of taxes in the Member
State’s territory; or
(iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes,
including compliance measures; or
(iv) apply to consumers of services supplied in or from the territory of another Member State in
order to ensure the imposition or collection of taxes of such consumers derived from sourcesin the Member State’s territory; or
(v) distinguish service suppliers subject to tax on world-wide taxable items from other service
suppliers, in recognition of the difference in the nature of the tax base between them; or
(vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident
persons or branches, or between related persons or branches of the same person, in order tosafeguard the Member State’s tax base.
Tax terms or concepts in paragraph 3(a) of Article 27 and in this footnote are determined according to tax
definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the
Member State taking the measure.WT/REG85/R/B/2
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Article 34
Public Procurement
Nothing in this Chapter shall be construed to  impose any obligations with respect to public
procurement.
Article 35
Transport
The Member States shall liberalise the access to each other's transport markets for the carriage
of passengers and goods by road, rail and air in accordance with the provisions set out in Annex P andAnnex Q respectively.
CHAPTER XI - DUMPING
Article 36
Anti-dumping measures, countervailing duties and measures against illicit commercial
practices attributable to third countries shall not be applied in relations between the Member States.
CHAPTER XII - PUBLIC PROCUREMENT
Article 37
1. The Member States reaffirm their rights and obligations under the WTO Agreement on
Government Procurement (GPA).  Under this C onvention, the Member States broaden the scope of
their commitments under the WTO Government Procurement Agreement with an aim to pursue
liberalisation in public procurement markets in accordance with Annex R.
2. To this effect, the Member States shall secure non-discriminative, transparent and reciprocal
access to their respective public procurement markets and shall ensure open and effective competitionbased on equal treatment.
CHAPTER XIII - CURRENT PAYMENTS
Article 38
Current payments connected with the movement of goods, persons, services or capital as
defined in Article 28 between Member States within the framework of the provisions of this
Convention shall be free of all restrictions.WT/REG85/R/B/2
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CHAPTER XIV - EXCEPTIONS AND SAFEGUARDS
Article 39
Security Exceptions
Nothing in this Convention shall prevent a Member State from taking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to its
essential security interests;
(b) which relate to the production of, or trade in, arms, munitions and war materials or
other products or services indispensable for defence purposes or to research,
development or production indispensable for defence purposes, provided that such
measures do not impair the conditions of competition in respect of products or
services not intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
disturbances affecting the maintenance of law and order, in time of war or serious
international tension constituting threat of war or in order to carry out obligations it
has accepted for the purpose of maintaining peace and international security.
Safeguard Measures
Article 40
1. If serious economic, societal or environmental difficulties of a sectorial or regional nature
liable to persist are arising, a Member State may unilaterally take appropriate measures under the
conditions and procedures set out in Article 41.
2. Such safeguard measures shall be restricted with regard to their scope and duration to what is
strictly necessary in order to remedy the situation.  Priority shall be given to such measures as will
least disturb the functioning of this Convention.
3. The safeguard measures shall apply with regard to all Member States.
4. This Article is without prejudice to the application of specific safeguard provisions set out in
the Annexes to this Convention or of special safegu ard measures in accordance with Article 5 of the
WTO Agreement on Agriculture.
Article 41
1. A Member State which is considering taking safeguard measures under Article 40, shall,
without delay, notify the other Member States through the Council and shall provide all relevantinformation.
2. The Member States shall immediately enter into consultations in the Council with a view to
finding a commonly acceptable solution.
3. The Member State concerned may not take safeguard measures until one month has elapsed
after the date of notification under paragraph 1, unless the consultation procedure under paragraph 2WT/REG85/R/B/2
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has been concluded before the expiration of the stated time limit.  When exceptional circumstances
requiring immediate action exclude prior examination, the Member State concerned may apply
forthwith the protective measures strictly necessary to remedy the situation.
4. The Member State concerned shall, without delay, notify the measures taken to the Council
and shall provide all relevant information.
5. The safeguard measures taken shall be the subject of consultations in the Council every three
months from the date of their adoption with a view to their abolition before the date of expiry
envisaged, or to the limitation of their scope of application.
Each Member State may at any time reques t the Council to review such measures.
CHAPTER XV - ECONOMIC AND MONETARY
POLICY CO-OPERATION
Article 42
The Member States shall exchange views and information concerning the implementation of
this Convention and the impact of the integration on economic activities and on the conduct ofeconomic and monetary policies.  Furthermore, they may discuss macro-economic situations, policies
and prospects.  This exchange of views and information shall take place on a non-binding basis.
CHAPTER XVI - INSTITUTIONAL PROVISIONS
Article 43
The Council
1. It shall be the responsibility of the Council
(a) to exercise such powers and functions as are conferred upon it by this Convention;
(b) to decide on amendments to this Convention in accordance with the provisions
herein;
(c) to supervise the application of this Convention and keep its operation under review;
(d) to consider whether further action should be taken by Member States in order to
promote the attainment of the objectives of the Association;
(e) to facilitate the establishment of closer links with other States and unions of States;
(f) to seek to establish such relationships with other international organisations as may
facilitate the attainment of the objectives of the Association;
(g) to negotiate trade and co-operation agreements between the Member States and any
other State, union of States or international organisation;WT/REG85/R/B/2
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(h) to endeavour to resolve disputes that may arise regarding the interpretation or
application of this Convention;  and
(i) to consider any other matter that may affect the operation of this Convention.
2. Each Member State shall be represented in the Council and shall have one vote.3. The Council may decide to set up such organs, committees and other bodies, as it considers
necessary to assist it in accomplishing its tasks.  These organs, committees and other bodies are listed
in Annex S.
4. In exercising its responsibility under this Article, the Council may take decisions, which shall
be binding on all Member States, and may make recommendations to Member States.
5. Decisions and recommendations of the Council shall be made by unanimous vote, except in
so far as this Convention provides otherwise.  Decisions or recommendations shall be regarded as
unanimous unless any Member State casts a nega tive vote.  Decisions and recommendations which
are to be made by majority vote, require the affirmative vote of three Member States.
6. If the number of the Member States changes, the Council may decide to amend the number of
votes required for decisions and recommendations which are to be made by majority vote.
Article 44
Administrative Arrangements of the Association
The Council shall take decisions for the following purposes:(a) to lay down the Rules of Procedure of the Council and of any other bodies of the
Association, which may include provision th at procedural questions may be decided
by majority vote;
(b) to make arrangements for the secretariat services required by the Association;
(c) to establish the financial arrangements necessary for the administrative expenses of
the Association, the procedure for establishing a budget and the apportionment ofthose expenses between the Member States.
Article 45
Legal Capacity, Privileges and Immunities
1. The legal capacity, privileges and immunities to be recognised and granted by the Member
States in connection with the Association shall be laid down in a Protocol to this Convention.
2. The Council, acting on behalf of the Association, may conclude with the Government of the
State in whose territory the headquarters will be situated an agreement relating to the legal capacityand the privileges and immunities to be recognised and granted in connection with the Association.WT/REG85/R/B/2
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CHAPTER XVII - CONSULTATIONS AND DISPUTE SETTLEMENT
Article 46
Scope
The provisions of this Chapter shall apply to  any matter arising from this Convention, unless
otherwise specified in this Convention.
Article 47
Consultations
1. The Member States shall at all times endeavour to agree on the interpretation and application
of this Convention, and shall make every attempt through cooperation and consultations to arrive at a
mutually satisfactory resolution of any matter that might affect its operation.
2. Any Member State may bring any matter, which concerns the interpretation or application of
this Convention before the Council.  The Council sh all be provided with all information, which might
be of use in making possible an in-depth examin ation of the situation, with a view to finding an
acceptable solution.  To this end, the Council shall examine all possibilities to maintain the good
functioning of the Convention.
3. A meeting of the Council shall be held within 30 days from the receipt of the request for
consultations.
Article 48
Arbitration
1. In case a Member State considers that a measure applied by another Member State violates
the Convention and the matter has not been resolved within 45 days after consultations have been held
pursuant to Article 47, such matter may be referred to arbitration by one or more Member States
parties to the dispute by means of a written notification addressed to the Member State complained
against.  A copy of this notification shall be communicated to all Member States so that each maydetermine whether it has a substantial interest in the matter.  Where more than one Member State
requests the submission to an arbitration tribunal of a dispute with the same Member State relating to
the same question a single arbitration tribunal should be established to consider such disputes
whenever feasible.
2. A Member State which is not a party to the dispute, on delivery of a written notice to the
disputing Member States, shall be entitled to make written submissions to the arbitration tribunal,
receive written submissions of the disputing Me mber States, attend all hearings and make oral
submissions.
3. The award of the arbitration tribunal shall be final and binding upon the Member States
parties to the dispute and shall be complied with promptly.
4. The establishment and functioning of the arbitration tribunal and the implementation of
arbitral awards are governed by the rules set out in Annex T.WT/REG85/R/B/2
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CHAPTER XVIII - GENERAL PROVISIONS
Article 49
Obligations under Other International Agreements
1. Nothing in this Convention shall be regarded as exempting any Member State from
obligations which it has undertaken by virtue of agreements with third States or multilateral
agreements to which they are parties.
2. This Convention shall be without prejudice to the rules applicable to Member States governed
by the Agreement on the European Economic Area, the Nordic cooperation and the regional union
between Switzerland and Liechtenstein
Article 50
Rights and Obligations of the Member States
The Member States shall take all appropriate measures, whether general or particular, to
ensure fulfilment of the obligations arising out of this Convention.  They shall abstain from any
measure which could jeopardize the attainment of the objectives of this Convention.
Article 51
Transparency
1. The Member States shall publish their laws, or otherwise make publicly available their laws,
regulations, procedures and administrative rulings and judicial decisions of general application as wellas the international agreements which may affect the operation of this Convention.
2. The Member States shall promptly respond to specific questions and provide, upon request,
information to each other on matters referred to in paragraph 1.
Article 52
Confidentiality
The representatives, delegates and experts of the Member States, as well as officials and other
servants acting under this Convention shall be required, even after their duties have ceased, not to
disclose information of the kind covered by the obligation of professional secrecy, in particular
information about undertakings, their business relations or their cost components.
Article 53
Annexes
1. The Annexes, Appendices and Protocols to this Convention shall form an integral part of it.
2. The Annexes to this C onvention are the following:
Annex A on Rules of OriginWT/REG85/R/B/2
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Annex B on mutual administrative assistance in customs matters
Annex C List of agricultural goods and goods processed from agricultural raw
materials referred to in paragraph 1 of Article 8
Annex D List of tariff concessions to agricultural productsAnnex E SeedsAnnex F Organic agriculture
Annex G Sanitary and phytosanitary measures
Annex H Procedure for the provision of information in the field of technical
regulations and of rules on Information Society services
Annex I Mutual recognition in relation to conformity assessment
Annex J Intellectual property rightsAnnex K Movement of personsAnnex L Reservations by Iceland on investment and servicesAnnex M Reservations by Liechtenstein on investment and services
Annex N Reservations by Norway on investment and services
Annex O Reservations by Switzerland on investment and servicesAnnex P Land transportAnnex Q Air transportAnnex R Public procurementAnnex S Organs, committees and other bodies set up by the Council
Annex T Arbitration
Annex U List of territories to which Article 58 applies
The Council may decide to amend the provisions to this paragraph.
3. The Council may decide to amend Annexes A, C, H, S and T, as well as the Appendices to
Annexes E, F, K, P, Q and R, unless otherwise provided in the Annexes.
4. The Committee established under Annex I may decide to amend Article 4 of that Annex as
well as Appendices 1 and 2 thereto.  It shall inform the Council of its decision-making.WT/REG85/R/B/2
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Article 54
Ratification
1. This Convention shall be ratified by the signatory States.  The instruments of ratification shall
be deposited with the Government of Sweden, which shall notify all other signatory States.
2. The Government of Norway shall act as Depositary as of 17 November 1995.3. The Council may decide to amend the provisions of this Article.
Article 55
Entry into force
This Convention shall enter into force on the deposit of instruments of ratification by all
signatory States.
Article 56
Accession and Association
1. Any State may accede to this Convention, provided that the Council decides to approve its
accession, on such terms and conditions as may be set out in that decision.  The instrument of
accession shall be deposited with the Depositary, which shall notify all other Member States.  This
Convention shall enter into force in relation to an acc eding State on the date indicated in that decision.
2. The Council may negotiate an agreement between the Member States and any other State,
union of States or international organisation, creating an association embodying such reciprocal rights
and obligations, common actions and special procedures  as may be appropriate.  Such an agreement
shall be submitted to the Member States for accepta nce and shall enter into force provided that it is
accepted by all Member States.  Instruments of acceptance shall be deposited with the Depositary,
which shall notify all other Member States.
3. Any State acceding to this Convention shall apply to become a party to the free trade
agreements between the Member States on the one hand and third states, unions of states or
international organisations on the other.
Article 57
Withdrawal
1. Any Member State may withdraw from this C onvention provided that it gives twelve months’
notice in writing to the Depositary, which shall notify all other Member States.
2. Before the withdrawal takes effect, the Member States shall agree on appropriate
arrangements and equitable cost-sharing relating to the withdrawal.WT/REG85/R/B/2
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Article 58
Territorial Application
This Convention shall apply to the territories of the Member States except as provided for in
Annex U.
Article 59
Amendment
Except as otherwise provided for in this Conv ention, an amendment to the provisions of this
Convention shall be subject to a decision of the Council which shall be submitted to the Member
States for acceptance in accordance with their intern al legal requirements.  It shall enter into force,
unless otherwise provided, on the first day of the second month following the deposit of the
instruments of acceptance by all Member States with the Depositary, which shall notify all otherMember States.
IN WITNESS WHEREOF the undersigned, duly aut horised thereto, have signed the present
Convention.
DONE at Stockholm this 4th day of January, 1960, in a single copy in the English and French
languages, both texts being equally authentic, which shall be deposited with the Government of
Sweden, by which certified copies shall be transmitted to all other signatory and acceding States.
AMENDED at Vaduz this 21st day of June, 2001, in a single authentic copy in the English
language, which shall be deposited with the Government of Norway.WT/REG85/R/B/2
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ANNEX II
Detailed Trade Data among the Four Member States
ICELAND'S TRADE WITH NORWAY AND SWITZERLAND
1997 1998 1999 2000 1997/98 1998/99 99/2000
In thousand US dollars Percentage Change
IMPORTS
Norway 214,829 208,041 240,666 192,382 -3.2 15.7 -20.1
Share in Iceland's tot. imports 11.61% 9.11% 10.39% 8.08%
Switzerland 43,386 35,194 26,759 25,276 -18.9 -24.0 -5.5
Share in Iceland's tot. imports 2.34% 1.54% 1.16% 1.06%
Iceland's tot. imports 1,851,157 2,284,704 2,315,759 2,380,086 23.4 1.4 2.8
EXPORTS
Norway 102,758 92,420 96,059 75,103 -10.1 3.9 -21.8
Share in Iceland's tot. exports 5.55% 4.80% 4.80% 3.97%
Switzerland 56,286 88,537 73,971 42,135 57.3 -16.5 -43.0
Share in Iceland's tot. exports 3.04% 4.60% 3.70% 2.23%
Iceland's tot. exports 1,850,720 1,926,744 2,001,400 1,889,770 4.1 3.9 -5.6
IMPORTS + EXPORTS
Norway 317,587 300,461 336,725 267,485 -5.4 12.1 -20.6
Share in Iceland's tot. trade 8.58% 7.13% 7.80% 6.26%
Switzerland 99,672 123,731 100,730 67,411 24.1 -18.6 -33.1
Share in Iceland's tot. trade 2.69% 2.94% 2.33% 1.58%
Iceland's tot. trade 3,701,877 4,211,448 4,317,159 4,269,856 13.8 2.5 -1.1
   No percentage calculatedWT/REG85/R/B/2
G/L/476
Page 33
Source: World Trade Atlas192
75
2542
020406080100120140160180200
Norway SwitzerlandIceland's trade with Norway and Switzerland
(2000 - million US dollars)
Imports
ExportsWT/REG85/R/B/2
G/L/476
Page 34
ICELAND'S TRADE WITH NORWAY AND SWITZERLAND BY
SELECTED COMMODITIES (HS)
1998 1999 2000 1998 1999 2000
NORWAY In thousand US dollars In per cent
Imports
Iceland's tot. imports from Norway 208,041 240,666 192,382 100.0 100.0 100.0
     HS 27  Mineral fuels, oil 77,824 80,864 61,686 37.4 33.6 32.1
     HS 89  Ships, boats and floating structures 8,793 37,099 22,932 4.2 15.4 11.9
     HS 03  Fish, crustaceans 8,315 19,422 20,047 4.0 8.1 10.4
     HS 85  Electrical machinery 15,890 20,776 13,437 7.6 8.6 7.0
     HS 84  Machinery, mechanical appliances 23,674 16,549 12,463 11.4 6.9 6.5
     HS 48  Paper, paperboard 7,996 7,965 7,537 3.8 3.3 3.9
     HS 44  Wood 4,638 5,828 4,951 2.2 2.4 2.6
     HS 56  Wadding, felt, twine, rope 6,916 4,844 4,668 3.3 2.0 2.4
     HS 94  Furniture and bedding 3,944 3,922 4,375 1.9 1.6 2.3
     HS 39  Plastic, plastic articles 6,452 5,773 4,239 3.1 2.4 2.2
Exports
Iceland's tot. exports to Norway 92,420 96,059 75,103 100.0 100.0 100.0
     HS 23  Waste from the food industries, animal
feed24,560 31,635 36,102 26.6 32.9 48.1
     HS 15  Fats and oils 30,541 17,556 8,424 33.0 18.3 11.2
     HS 84  Machinery, mechanical appliances 6,617 8,497 7,366 7.2 8.8 9.8
     HS 03  Fish, crustaceans 20,175 16,352 7,136 21.8 17.0 9.5
     HS 56  Wadding, felt, twine, rope 1,107 1,226 2,337 1.2 1.3 3.1
     HS 72  Iron and steel 48 1,529 2,089 0.1 1.6 2.8
     HS 76  Aluminium and articles thereof 1,447 1,899 1,917 1.6 2.0 2.6
     HS 05  Other products and animal origin 424 115 1,455 0.5 0.1 1.9
     HS 99 Salvage and reparations 1,013 1,296 1,307 1.1 1.3 1.7
     HS 02 Meat 9 455 1,233 0.0 0.5 1.6
SWITZERLAND In thousand US dollars In per cent
Imports
Iceland's tot. imports from Switzerland 35,194 26,759 25,276 100.0 100.0 100.0
     HS 30  Pharmaceutical products 8,304 8,249 7,406 23.6 30.8 29.3
     HS 84  Machinery, mechanical appliances 5,584 3,333 3,300 15.9 12.5 13.1
     HS 85  Electrical machinery 9,620 3,458 2,870 27.3 12.9 11.4
     HS 73  Iron and steel products 1,214 743 1,687 3.4 2.8 6.7
     HS 24 Tobacco 1,042 1,189 1,369 3.0 4.4 5.4
     HS 90  Optical, medical, surgical instruments 1,969 1,488 1,345 5.6 5.6 5.3
     HS 39  Plastic, plastic articles 574 729 937 1.6 2.7 3.7
     HS 21  Misc, edible preparations 1,103 1,099 829 3.1 4.1 3.3
     HS 91  Clocks and watches 651 909 721 1.8 3.4 2.9
     HS 33 Perfumery, cosmetics 591 657 643 1.7 2.5 2.5WT/REG85/R/B/2
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1998 1999 2000 1998 1999 2000
Exports
Iceland's tot. exports to Switzerland 88,537 73,971 42,135 100.0 100.0 100.0
     HS 76  Aluminium and articles thereof 84,910 70,498 39,084 95.9 95.3 92.8
     HS 03  Fish, crustaceans 2,272 2,289 2,191 2.6 3.1 5.2
     HS 01  Live animals 202 353 286 0.2 0.5 0.7
     HS 99 Salvage and reparations 569 115 119 0.6 0.2 0.3
     HS 05  Other products of animal origin 111 66 114 0.1 0.1 0.3
     HS 90  Optical, medical, su rgical instruments 0 47 77 0.0 0.1 0.2
     HS 42  Leather articles, saddlery and harness 25 56 50 0.0 0.1 0.1
     HS 49 Books, newspapers, pictures,
manuscripts41 03 8 0 . 0 0 . 0 0 . 1
     HS 16  Preparations of meat, fish 65 21 36 0.1 0.0 0.1
     HS 73  Iron and steel products 0 1 28 0.0 0.0 0.1
Source:  World Trade AtlasWT/REG85/R/B/2
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NORWAY'S TRADE WITH ICELAND AND SWITZERLAND
1997 1998 1999 2000 1997/98 1998/99 99/2000
In thousand US dollars Percentage Change
IMPORTS
Iceland 107,690 97,410 94,141 81,399 -9.5 -3.4 -13.5
Share in Norway's tot. imports 0.30% 0.26% 0.28% 0.26%
Switzerland 415,059 499,827 393,478 375,373 20.4 -21.3 -4.6
Share in Norway's tot. imports 1.16% 1.33% 1.16% 1.19%
Norway 's tot. imports 35,673,861 37,451,092 33,779,975 31,674,645 5.0 -9.8 -6.2
EXPORTS
Iceland 217,462 205,315 250,257 186,127 -5.6 21.9 -25.6
Share in Norway's tot. exports 0.45% 0.51% 0.56% 0.32%
Switzerland 222,178 209,706 206,115 198,765 -5.6 -1.7 -3.6
Share in Norway's tot. exports 0.46% 0.52% 0.46% 0.35%
Norway 's tot. exports 48,495,496 40,37 4,441 44,824,714 57,367,564 -16.7 11.0 28.0
IMPORTS + EXPORTS
Iceland 325,152 302,725 344,398 267,526 -6.9 13.8 -22.3
Share in Norway's tot. trade 0.39% 0.39% 0.44% 0.30%
Switzerland 637,237 709,533 599,593 574,138 11.3 -15.5 -4.2
Share in Norway's tot. trade 0.76% 0.91% 0.76% 0.64%
Norway 's tot. trade 84,169,357 77,825,533 78,604,689 89,042,209 -7.5 1.0 13.3
 No percentage calculatedWT/REG85/R/B/2
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Page 37
Source: World Trade Atlas81186375
199
050100150200250300350400
Iceland SwitzerlandNorway's trade with Iceland and Switzerland
(2000 - million US dollars)
Imports
ExportsWT/REG85/R/B/2
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Page 38
NORWAY'S TRADE WITH ICELAND AND SWITZERLAND BY
SELECTED COMMODITIES (HS)
1998 1999 2000 1998 1999 2000
ICELAND In thousand US dollars In per cent
Imports
Norway's tot. imports from Iceland 97,410 94,141 81,399 100.0 100.0 100.0
     HS 23  Waste from the food industries, animal
feed22,240 40,048 39,137 22.8 42.5 48.1
     HS 03  Fish, crustacean s 22,049 14,660 10,500 22.6 15.6 12.9
     HS 15  Fats and oils 32,680 19,093 8,446 33.5 20.3 10.4
     HS 84  Machinery, mechanical appliances 7,109 8,596 8,089 7.3 9.1 9.9
     HS 72  Iron and steel 321 1 2,010 0.3 0.0 2.5
     HS 26  Ores, slag, ash 484 1,481 1,460 0.5 1.6 1.8
     HS 02  Meat 15 356 1,427 0.0 0.4 1.8
     HS 56  Wadding, felt, twine, rope 907 1,130 1,173 0.9 1.2 1.4
     HS 73  Iron and steel products 385 548 1,067 0.4 0.6 1.3
     HS 05  Other products and animal origin 218 20 1,020 0.2 0.0 1.3
Exports
Norway's tot. exports to Iceland 205,315 250,257 186,127 100.0 100.0 100.0
     HS 27  Mineral fuels, oil 78,751 84,596 52,947 38.4 33.8 28.4
     HS 03  Fish, crustaceans 13,593 21,379 23,803 6.6 8.5 12.8
     HS 85  Electrical machinery 18,062 20,943 14,402 8.8 8.4 7.7
     HS 84  Machinery, mechanical appliances 23,402 14,272 13,920 11.4 5.7 7.5
     HS 62  Woven apparel or clothing accessories 995 1,402 9,614 0.5 0.6 5.2
     HS 99 Salvage and reparations 8,663 9,644 9,168 4.2 3.9 4.9
     HS 44  Wood 4,604 5,732 5,075 2.2 2.3 2.7
     HS 73  Iron and steel products 5,200 4,687 4,415 2.5 1.9 2.4
     HS 56  Wadding, felt, twine, rope 6,583 5,820 4,249 3.2 2.3 2.3
     HS 61  Knitted apparel or clothing accessories 2,451 2,360 4,014 1.2 0.9 2.2
SWITZERLAND In thousand US dollars In per cent
Imports
Norway's tot. imports from Switzerland 499,827 393,478 375,373 100.0 100.0 100.0
     HS 84  Machinery, mechanical appliances 168,061 89,392 88,272 33.6 22.7 23.5
     HS 85  Electrical machinery 72,851 58,807 59,046 14.6 14.9 15.7
     HS 90  Optical, medical, surgical instruments 44,697 32,939 32,254 8.9 8.4 8.6
     HS 30  Pharmaceutical products 36,134 38,423 31,580 7.2 9.8 8.4
     HS 24 Tobacco 9,555 13,051 20,962 1.9 3.3 5.6
     HS 91  Clocks and watches 17,385 16,143 15,808 3.5 4.1 4.2
     HS 39  Plastic, plastic articles 18,221 15,930 13,537 3.6 4.0 3.6
     HS 21  Misc, edible preparations 12,875 14,179 10,816 2.6 3.6 2.9
     HS 87  Vehicles (not railway) 6,925 8,979 10,129 1.4 2.3 2.7
     HS 76  Aluminium and articles thereof 8,453 5,449 9,005 1.7 1.4 2.4WT/REG85/R/B/2
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1998 1999 2000 1998 1999 2000
Exports
Norway's tot. exports to Switzerland 209,706 206,115 198,765 100.0 100.0 100.0
     HS 76  Aluminium and articles thereof 47,342 35,236 36,950 22.6 17.1 18.6
     HS 03  Fish, crustacean s 30,121 30,314 29,366 14.4 14.7 14.8
     HS 99  Salvage and reparations 19,182 17,237 14,639 9.1 8.4 7.4
     HS 84  Machinery, mechanical appliances 11,500 14,261 14,055 5.5 6.9 7.1
     HS 85  Electrical machinery 10,461 15,355 12,173 5.0 7.4 6.1
     HS 27  Mineral fuels, oil 4,424 6,396 10,613 2.1 3.1 5.3
     HS 44  Wood 9,377 10,897 7,829 4.5 5.3 3.9
     HS 48  Paper, paperboard 7,398 9,190 7,549 3.5 4.5 3.8
     HS 38  Misc. chemical products 2,991 6,466 6,508 1.4 3.1 3.3
     HS 16  Preparations of meat, fish 5,309 6,524 6,023 2.5 3.2 3.0
Source:  World Trade AtlasWT/REG85/R/B/2
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SWITZERLAND'S TRADE WITH ICELAND AND NORWAY
1997 1998 1999 2000 1997/98 1998/99 99/2000
In thousand US dollars Percentage Change
IMPORTS
Iceland 56,620 56,979 45,281 47,908 0.6 -20.5 5.8
Share in Switzerland's tot.
imports0.07% 0.07% 0.06% 0.06%
Norway 166,241 180,814 173,595 168,086 8.8 -4.0 -3.2
Share in Switzerland's tot.
imports0.22% 0.23% 0.22% 0.20%
Switzerland 's tot. imports 75,770,047 80,267,624 80,008,545 82,411,758 5.9 -0.3 3.0
EXPORTS
Iceland 17,584 43,119 17,016 16,804 145.2 -60.5 -1.2
Share in Switzerland's tot.
exports0.02% 0.05% 0.02% 0.02%
Norway 367,677 456,391 332,662 310,671 24.1 -27.1 -6.6
Share in Switzerland's tot.
exports0.48% 0.58% 0.41% 0.39%
Switzerland's tot. exports 76,021,445 78,842,006 80,295,178 80,402,472 3.7 1.8 0.1
IMPORTS + EXPORTS
Iceland 74,204 100,098 62,297 64,712 34.9 -37.8 3.9
Share in Switzerland's tot.
trade0.05% 0.06% 0.04% 0.04%
Norway 533,918 637,205 506,257 478,757 19.3 -20.6 -5.4
Share in Switzerland's tot.
trade0.35% 0.40% 0.32% 0.29%
Switzerland's tot. trade 151,791,492 159,109,630 160,303,723 162,814,230 4.8 0.8 1.6
 No percentage calculatedWT/REG85/R/B/2
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Page 41
Source: World Trade Atlas48
17168311
050100150200250300350
Iceland NorwaySwitzerland's trade with Iceland and Norway
(2000 - million US dollars)
Imports
ExportsWT/REG85/R/B/2
G/L/476
Page 42
SWITZERLAND'S TRADE WITH ICELAND AND NORWAY BY
SELECTED COMMODITIES (HS)
1998 1999 2000 1998 1999 2000
ICELAND In thousand US dollars In per cent
Imports
Switzerland's tot. imports from Iceland 56,979 45,281 47,908 100.0 100.0 100.0
     HS 76  Aluminium and articles thereof 49,418 39,991 42,502 86.7 88.3 88.7
     HS 03  Fish, crustaceans 2,496 2,680 2,718 4.4 5.9 5.7
     HS 71  Precious stones and metals 2,028 307 1,098 3.6 0.7 2.3
     HS 01 Live animals 276 446 315 0.5 1.0 0.7
     HS 39  Plastic, plastic articles 35 193 251 0.1 0.4 0.5
     HS 26  Ores, slag, ash 0 0 195 0.0 0.0 0.4
     HS 90  Optical, medical, su rgical instruments 67 83 175 0.1 0.2 0.4
     HS 05  Other products of animal origin 70 60 100 0.1 0.1 0.2
     HS 94  Furniture and bedding 0 1 90 0.0 0.0 0.2
     HS 23  Waste from the food industries, animal
feed1207 109 70 2.1 0.2 0.1
Exports
Switzerland's tot. exports to Iceland 43,119 17,016 16,804 100.0 100.0 100.0
     HS 84  Machinery, mechanical appliances 4,605 3,989 3,692 10.7 23.4 22.0
     HS 85  Electrical machinery 27,946 2,084 2,852 64.8 12.2 17.0
     HS 91  Clocks and watches 2,037 2,585 2,496 4.7 15.2 14.9
     HS 90  Optical, medical, surgical instruments 1,637 1,224 1,270 3.8 7.2 7.6
     HS 21  Misc. edible preparations 900 925 1,081 2.1 5.4 6.4
     HS 73  Iron and steel products 537 289 838 1.2 1.7 5.0
     HS 18  Cocoa 797 880 624 1.8 5.2 3.7
     HS 39  Plastic, plastic articles 359 632 509 0.8 3.7 3.0
     HS 24  Tobacco 561 422 366 1.3 2.5 2.2
     HS 33  Perfumery, cosmetics 329 390 327 0.8 2.3 1.9
NORWAY In thousand US dollars In per cent
Imports
Switzerland's tot. imports from Norway 180,814 173,595 168,086 100.0 100.0 100.0
     HS 03  Fish, crustacean s 29,834 30,394 28,449 16.5 17.5 16.9
     HS 76  Aluminium and articles thereof 38,794 27,681 25,886 21.5 15.9 15.4
     HS 85  Electrical machinery 11,087 17,053 13,552 6.1 9.8 8.1
     HS 84  Machinery, mechanical appliances 8,409 9,541 13,413 4.7 5.5 8.0
     HS 48  Paper, paperboard 17,709 15,668 13,191 9.8 9.0 7.8
     HS 44  Wood 9,266 10,528 7,860 5.1 6.1 4.7
     HS 38  Misc. chemical products 3,841 4,165 6,283 2.1 2.4 3.7
     HS 16  Preparations of meat, fish 5,310 6,341 6,164 2.9 3.7 3.7
     HS 89  Ships, boats and floating structures 4,850 4,416 5,952 2.7 2.5 3.5
     HS 94  Furniture and bedding 4,959 4,461 4,684 2.7 2.6 2.8WT/REG85/R/B/2
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1998 1999 2000 1998 1999 2000
Exports
Switzerland's tot. exports to Norway 456,391 332,662 310,671 100.0 100.0 100.0
     HS 84  Machinery, mechanical appliances 162,567 74,227 71,109 35.6 22.3 22.9
     HS 85  Electrical machinery 60,800 48,605 49,931 13.3 14.6 16.1
     HS 30  Pharmaceutical products 34,307 35,059 26,840 7.5 10.5 8.6
     HS 90  Optical, medical, surgical instruments 31,034 26,399 24,608 6.8 7.9 7.9
     HS 24  Tobacco 11,680 12,843 18,775 2.6 3.9 6.0
     HS 91  Clocks and watches 16,400 15,376 14,054 3.6 4.6 4.5
     HS 39  Plastic, plastic articles 18,278 15,036 11,516 4.0 4.5 3.7
     HS 73  Iron and steel products 12,422 10,852 9,634 2.7 3.3 3.1
     HS 21  Misc. edible preparations 11,490 11,786 9,207 2.5 3.5 3.0
     HS 87  Vehicles (not railway) 11,538 8,578 6,807 2.5 2.6 2.2
Source:  World Trade AtlasWT/REG85/R/B/2
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Page 44
EFTA STATES' TRADE WITH THE WORLD
1997 1998 1999 2000 1997/98 1998/99 99/2000
In thousand US dollars Percentage Change
IMPORTS
Iceland 1,851,157 2,284,704 2,315,759 2,380,086 23.4 1.4 2.8
Norway 35,673,861 37,451,092 33,779,975 31,674,645 5.0 -9.8 -6.2
Switzerland 75,770,047 80,267,624 80,008,545 82,411,758 5.9 -0.3 3.0
EFTA 113,295,065 120,003,420 116,104,279 116,466,489 5.9 -3.2 0.3
Share in EFTA's tot.
imports100% 100% 100% 100%
EXPORTS
Iceland 1,850,720 1,926,744 2,001,400 1,889,770 4.1 3.9 -5.6
Norway 48,495,496 40,374,441 44,82 4,714 57,367,564 -16.7 11.0 28.0
Switzerland 76,021,445 78,842,006 80,295,179 80,402,473 3.7 1.8 0.1
EFTA 126,367,661 121,143,191 127,121,293 139,659,807 -4.1 4.9 9.9
Share in EFTA's tot.
exports100% 100% 100% 100%
IMPORTS + EXPORTS
Iceland 3,701,877 4,211,448 4,317,159 4,269,856 13.8 2.5 -1.1
Norway 84,169,357 77,825,533 78,604,689 89,042,209 -7.5 1.0 13.3
Switzerland 151,791,492 159,109,630 160,303,724 162,814,231 4.8 0.8 1.6
EFTA 239,662,726 241,146,611 243,225,572 256,126,296 0.6 0.9 5.3
Share in EFTA's tot. trade 100% 100% 100% 100%
 No percentage calculatedWT/REG85/R/B/2
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Source: World Trade Atlas2,3801,89031,67557,36882,41280,402
010,00020,00030,00040,00050,00060,00070,00080,00090,000
Iceland Norway SwitzerlandEFTA States' trade with the world
(2000 - million US dollars)
Imports
ExportsWT/REG85/R/B/2
G/L/476
Page 46
EFTA STATES' TRADE WITH THE WORLD BY SELECTED COMMODITIES (HS)
1998 1999 2000 1998 1999 2000
IMPORTS In thousand US dollars In per cent
Iceland
Total imports from the world 2,284,704 2,315,759 2,380,086 100.0 100.0 100.0
In per cent of imports from the world 100% 100% 100%
     HS 84  Machinery, mechanical appliances 343,400 338,079 304,921 15.0 14.6 12.8
     HS 85  Electrical machinery 279,576 259,297 276,459 12.2 11.2 11.6
     HS 87  Vehicles (not railway) 228,117 265,046 249,848 10.0 11.4 10.5
Norway
Total imports from the world 37,451,092 33,779,975 31,674,645 100.0 100.0 100.0
In per cent of imports from the world 100% 100% 100%
     HS 84  Machinery, mechanical appliances 6,328,865 5,644,825 4,805,467 16.9 16.7 15.2
     HS 85  Electrical machinery 3,506,578 3,353,604 3,376,049 9.4 9.9 10.7
     HS 87  Vehicles (not railway) 3,535,595 3,089,991 2,956,628 9.4 9.1 9.3
     HS 27  Mineral fuels, oil 947,888 1,035,991 1,163,853 2.5 3.1 3.7
     HS 39  Plastic, plastic articles 1,085,801 1,019,696 994,492 2.9 3.0 3.1
     HS 94  Furniture and bedding 1,010,353 975,274 963,645 2.7 2.9 3.0
     HS 89  Ships, boats and floating structures 2,619,491 1,604,601 931,579 7.0 4.8 2.9
     HS 73  Iron and steel products 1,914,583 1,270,865 926,097 5.1 3.8 2.9
Switzerland
Total imports from the world 80,267,624 80,008,545 82,411,758 100.0 100.0 100.0
In per cent of imports from the world 100% 100% 100%
     HS 84  Machinery, mechanical appliances 10,571,578 11,075,982 11,203,711 13.2 13.8 13.6
     HS 85  Electrical machinery 7,184,466 7,490,076 8,180,210 9.0 9.4 9.9
     HS 87  Vehicles (not railway) 6,668,542 7,032,447 6,789,513 8.3 8.8 8.2
     HS 71  Precious stones and metals 6,937,018 5,076,812 6,726,878 8.6 6.3 8.2
     HS 30  Pharmaceutical products 3,463,563 4,293,309 4,283,838 4.3 5.4 5.2
     HS 29  Organic chemicals 4,092,940 3,961,542 4,265,592 5.1 5.0 5.2
     HS 27  Mineral fuels, oils 2,365,844 2,379,581 3,760,061 2.9 3.0 4.6
     HS 39  Plastic, plastic articles 2,892,037 2,865,059 2,867,389 3.6 3.6 3.5
     HS 90 Optical, medical, surgical
instruments2,540,987 2,699,511 2,708,710 3.2 3.4 3.3
     HS 94  Furniture and bedding 2,025,839 2,102,726 1,960,136 2.5 2.6 2.4
EXPORTS In thousand US dollars In per cent
Iceland
Total exports to the world 1,926,744 2,001,400 1,889,770 100.0 100.0 100.0
In per cent of exports to the world 100% 100% 100%
     HS 03  Fish, crustaceans 1,022,550 1,066,335 953,473 53.1 53.3 50.5
     HS 76  Aluminium and articles thereof 267,540 319,073 352,473 13.9 15.9 18.7
     HS 16  Preparation of meat, fish 181,135 159,460 132,692 9.4 8.0 7.0
Norway
Total exports to the world 40,374,441 44,824,714 57,367,564 100.0 100.0 100.0
In per cent of exports to the world 100% 100% 100%WT/REG85/R/B/2
G/L/476
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1998 1999 2000 1998 1999 2000
     HS 27  Mineral fuels, oil 17,472,594 22,803,716 36,287,450 43.3 50.9 63.3
     HS 03  Fish, crustaceans 3,293,716 3,452,780 3,266,934 8.2 7.7 5.7
     HS 99 Salvage and reparations 2,852,882 2,626,850 2,567,594 7.1 5.9 4.5
     HS 76  Aluminium and articles thereof 2,383,826 2,152,071 2,453,409 5.9 4.8 4.3
     HS 84  Machinery, mechanical appliances 2,622,145 2,548,091 2,300,745 6.5 5.7 4.0
     HS 85  Electrical machinery 1,525,444 1,457,122 1,451,713 3.8 3.3 2.5
     HS 48  Paper, paperboard 802,279 794,343 746,990 2.0 1.8 1.3
     HS 72  Iron and steel 829,051 732,428 688,860 2.1 1.6 1.2
Switzerland
Total exports to the world 78,842,006 80,295,179 80,402,473 100.0 100.0 100.0
In per cent of exports to the world 100% 100% 100%
     HS 84  Machinery, mechanical appliances 15,525,047 15,220,247 15,217,874 19.7 19.0 18.9
     HS 30  Pharmaceutical products 8,034,124 9,036,844 8,257,533 10.2 11.3 10.3
     HS 85  Electrical machinery 7,437,217 7,388,342 7,778,432 9.4 9.2 9.7
     HS 29  Organic chemicals 7,022,523 7,079,625 7,026,746 8.9 8.8 8.7
     HS 91  Clocks and watches 5,810,028 5,976,159 6,073,494 7.4 7.4 7.6
     HS 71  Precious stones and metals 4,400,966 5,111,609 6,061,537 5.6 6.4 7.5
     HS 90  Optical, medical, surgical
instruments4,500,309 4,704,777 4,860,803 5.7 5.9 6.0
     HS 39  Plastic, plastic articles 2,772,396 2,752,348 2,628,327 3.5 3.4 3.3
     HS 32  Plastic, plastic articles 1,876,173 1,809,686 1,792,976 2.4 2.3 2.2
     HS 73  Iron and steel products 1,821,551 1,748,717 1,706,374 2.3 2.2 2.1
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