. /.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG154/M/1
6 January 2004
(04-0013)
Committee on Regional Trade Agreements
Thirty-Fifth Session
EXAMINATION OF THE EUROPEAN FREE TRADE ASSOCIATION, SERVICES
Note on the Meeting of 2 December 2003
Chairman: Mr. J. Meetoo (Mauritius)
1. The meeting was convened in document WTO/AIR/2217/Rev.1.
2. Under Agenda Item D.II of its Thirty-Fifth Session, the Committee on Regional Trade
Agreements (hereinafter CRTA or the Committee) took up the first round of examination of the
services aspects of the Agreement amending the Convention establishing the European Free Trade
Association (EFTA).  The foll owing topics were discussed:
A. General Remarks
B. Section I – General Provisions of the Agreement
C. Section II – Trade Provisions
3. The Chairman said that this was the first round of examination of the services aspects of the
EFTA Agreement.  The EFTA Agreement covering trade in services had been signed on 21 June 2001
and had entered into force between the Parties on 1 June 2002.  It had been notified to the WTO on 3
December 2002 as document S/C/N/207.  The text of the Agreement appeared in document
WT/REG154/1 and the Standard Format in WT/REG154/2.  He added that the decision to refer this
Agreement for examination to the CRTA had been taken on 28 February 2003 by the Council for
Trade in Services, as contained in document S/C/M/65.  Pursuant to paragraph 7(a) of Article V of the
GATS, the CRTA should examine the services aspects of the EFTA, and report to the Council for Trade
in Services on its consistency.
A. G ENERAL REMARKS
4. The representative of Switzerland, speaking on behalf of the EFTA member States, stated that
the meeting provided the possibility to explain to the Committee the functioning of the services part
of the Agreement amending the Convention establishing the EFTA in detail, and to reply to questions
and comments by Members.  As of that day, the Parties to the EFTA Convention are Iceland,
Liechtenstein, Norway and Switzerland.  A first Convention had been signed on 4 January 1960. Over
time, amendments had been made to the Convention.  A major revision had started in 1999 and had
resulted in the Agreement amending the EFTA Convention that had been signed on 21 June 2001 in
Vaduz (Liechtenstein) and which had entered into force on 1 June 2002.  The Agreement amending
the EFTA Convention had been notified on 3 December 2002, in accordance with Article V:7(a) ofthe GATS and circulated as S/C/N/207.  The Committee had been provided with background
information on the Agreement in line with the structure of the Standard Format, circulated in
WT/REG154/2.  The information submitted provided Members with a comprehensive overview of the
Agreements and would hopefully be useful in facilitating the task of the Committee that day.  The
Agreement amending the EFTA Convention had developed the EFTA Convention (the so-calledconsolidated version) into a comprehensive economic integration agreement, also including services
and several other trade-related issues in addition to the traditional goods-related and institutional
provisions.  The EFTA objectives were to promote a continued and balanced strengthening of tradeWT/REG154/M/1
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and economic relations between the member States with fair conditions of competition, and the
respect of equivalent rules, within the area of the Association; free trade in goods; progressive
liberalisation of the movement of persons; progressive liberalisation of trade in services and
investment; fair conditions of competition affecting trade between the member States; opening the
public procurement markets of the member States; and providing appropriate protection of intellectualproperty rights, in accordance with the highest in ternational standards.  Provisions of the EFTA
Convention constituted a liberalisation of trade in services between the EFTA States, in the sense of
Article V, paragraph 1, given that it provided for universal sectoral coverage of all services activities,
subject to exceptions corresponding to those provided for under the GATS.  It provided for the
liberalisation of trade through all modes of supply:  cross border trade, consumption abroad,
commercial presence; and presence of natural persons.  It entailed a review clause with a view to
reducing, and ultimately eliminating, remaining re strictions on the supply of services.  The EFTA
Convention aimed at facilitating trade between the Parties; no provisions of the EFTA Convention
aimed at raising the level of trade restrictions vis-à-vis  any other WTO Member.  The EFTA States
were prepared to provide further clarification and replies to any questions or comments Members
might raise at that day's meeting or, if needed, to give further replies in writing to questions submitted
by Members.
5. The representative of the United States thanked EFTA member States for the useful
introductory remarks and the submission of the Standard Format.  Her delegation had some general
questions that day; more specific questions would be posed once experts would have had sufficient
time to consider the details of the Agreement.
B. SECTION I - G ENERAL PROVISIONS OF THE AGREEMENT
6. Noting that Section I.2 of the Standard Format stated that Article 2 of the EFTA Convention
provided for a progressive liberalisation of trade in services, the representative of the United States
requested more information on the timetable for such liberalization.  Noting that Section I.3 of theStandard Format referred to reservations in Annexes L-Q, the representative of Japan requested the
Parties to outline their individual reservations.  The representative of Switzerland indicated that
replies to these questions would be submitted in writing.
C. SECTION II – T RADE PROVISIONS
7. The representative of the United States requested the Parties to provide a summary of the
exemptions provided for in Annex Q.  The Chairm an indicated that a reply would be submitted in
writing.
8. The Chairman stated that the first round of examination of the services aspects of the EFTA
Convention had allowed the Committee to clarify some issues, but some remained pending.
Following a proposal by the representative of the United States, seconded by other delegations, he
asked delegations to submit questions to the Secretariat by 31 January 2004 and for the Parties tosubmit replies no later than 31 March 2004.  The next round of examination would be scheduled for a
forthcoming meeting.
9. The Committee took note of the comments made.
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