WORLD TRADE
ORGANIZATIONWT/REG138/1
4 October 2002
(02-5357)
Committee on Regional Trade Agreements Original:  English/
French/
Spanish
EUROPEAN ECONOMIC AREA
The following text reproduces the Agreement establishing the European Economic Area.1
_______________
AGREEMENT ON THE EUROPEAN ECONOMIC AREA2
The European Economic Community, The European Coal and Steel Community, The
Kingdom of Belgium, The Kingdom of Denmark, The Federal Republic of Germany, The Hellenic
Republic, The Kingdom of Spain, The French Re public, Ireland, The Italian Republic, The Grand
Duchy of Luxembourg, The Kingdom of The Netherlands, The Portuguese Republic, The United
Kingdom of Great Britain And Northern Ireland, And The Republic of Austria ,3 The Republic of
Finland,3 The Republic of Iceland, The Principality of Liechtenstein, The Kingdom of Norway, The
Kingdom of Sweden ,3 [ ] 4
hereinafter referred to as the Contracting Parties ;
Convinced  of the contribution that a European Economic Area will bring to the construction
of a Europe based on peace, democracy and human rights;
Reaffirming  the high priority attached to the privileged relationship between the European
Community, its Member States and the EFTA St ates, which is based on proximity, long-standing
common values and European identity;
Determined  to contribute, on the basis of market economy, to world-wide trade liberalization
and cooperation, in particular in accordance with the provisions of the General Agreement on Tariffs
and Trade and the Convention on the Organisation for Economic Cooperation and Development;
Considering  the objective of establishing a dynamic and homogeneous European Economic
Area, based on common rules and equal conditions of competition and providing for the adequate
                                                     
1  The Annexes and Protocols thereto are available in electronic format in the Secretariat (Office 1174).
The text of the Agreement together with its Annexes and Protocols is also available on the EFTA website
(http://secretariat.efta.int/library/legal/EEA/).
2 The Agreement on the European Economic Area signed in Oporto on 2 May 1992/OJ L 1, 03.01.1994
p.3) adjusted by the Protocol adjusting the Agreement on the European Economic Area (“Adjusting Protocol”)of 17 March 1993 (OJ L 1, 03.01.1994, p. 572).
3 Austria, Finland and Sweden acceded to the European Union on 1 January 1995, but the text of the
Agreement remains unchanged.
4 Reference to "the Swiss Confederation" deleted by the Adjusting Protocol.WT/REG138/1
Page 2
means of enforcement including at the judicial level, and achieved on the basis of equality and
reciprocity and of an overall balance of benefits, rights and obligations for the Contracting Parties;
Determined  to provide for the fullest possible realization of the free movement of goods,
persons, services and capital within the whole European Economic Area, as well as for strengthenedand broadened cooperation in flanking and horizontal policies;
Aiming  to promote a harmonious development of the European Economic Area and
convinced of the need to contribute through the application of this Agreement to the reduction of
economic and social regional disparities;
Desirous  of contributing to the strengthening of the cooperation between the members of the
European Parliament and of the Parliaments of the EFTA States, as well as between the social
partners in the European Community and in the EFTA States;
Convinced  of the important role that individuals will play in the European Economic Area
through the exercise of the rights conferred on them by this Agreement and through the judicialdefence of these rights;
Determined  to preserve, protect and improve the quality of the environment and to ensure a
prudent and rational utilization of natural resources on the basis, in particular, of the principle of
sustainable development, as well as the principle that precautionary and preventive action should betaken;
Determined  to take, in the further development of rules, a high level of protection concerning
health, safety and the environment as a basis;
Noting  the importance of the development of the social dimension, including equal treatment
of men and women, in the European Economic Area and wishing to ensure economic and social
progress and to promote conditions for full employment, an improved standard of living and improved
working conditions within the European Economic Area;
Determined  to promote the interests of consumers and to strengthen their position in the
market place, aiming at a high level of consumer protection;
Attached  to the common objectives of strengthening the scientific and technological basis of
European industry and of encouraging it to become more competitive at the international level;
Considering  that the conclusion of this Agreement shall not prejudge in any way the
possibility of any EFTA State to accede to the European Communities;
Whereas , in full deference to the independence of the courts, the objective of the Contracting
Parties is to arrive at, and maintain, a uniform interpretation and application of this Agreement and
those provisions of Community legislation which ar e substantially reproduced in this Agreement and
to arrive at an equal treatment of individuals and economic operators as regards the four freedoms and
the conditions of competition;
Whereas  this Agreement does not restrict the decision-making autonomy or the treaty-making
power of the Contracting Parties, subject to the provisions of this Agreement and the limitations set bypublic international law;
Have decided  to conclude the following Agreement:WT/REG138/1
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PART I
OBJECTIVES AND PRINCIPLES
Article 1
1. The aim of this Agreement of association is to promote a continuous and balanced
strengthening of trade and economic relations between the Contracting Parties with equal conditions
of competition, and the respect of the same rules, with a view to creating a homogeneous European
Economic Area, hereinafter referred to as the EEA.
2. In order to attain the objectives set out in paragraph 1, the association shall entail, in
accordance with the provisions of this Agreement :
(a) the free movement of goods;(b) the free movement of persons;(c) the free movement of services;(d) the free movement of capital;
(e) the setting up of a system ensuring that competition is not distorted and that the rules
thereon are equally respected; as well as
(f) closer cooperation in other fields, such as research and development, the
environment, education and social policy.
Article 2
For the purposes of this Agreement :(a) the term "Agreement" means the main Agreement, its Protocols and Annexes as well
as the acts referred to therein;
(b) the term "EFTA States" means the Republic of Austria, the Republic of Finland, the
Republic of Iceland, the Kingdom of Norway , the Kingdom of Sweden and, under the
conditions laid down in Article 1(2) of the Protocol Adjusting the Agreement on the
European Economic Area, the Principality of Liechtenstein;
5
(c) the term "Contracting Parties" means, concerning the Community and the EC
Member States, the Community and the EC Member States, or the Community, or the
EC Member States. The meaning to be attributed to this expression in each case is to
be deduced from the relevant provisions of this Agreement and from the respectivecompetences of the Community and the EC Member States as they follow from the
Treaty establishing the European Economic Community and the Treaty establishing
the European Coal and Steel Community.
                                                     
5 Subparagraph replaced by the Adjusting Protocol.WT/REG138/1
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Article 3
The Contracting Parties shall take all appropriate measures, whether general or particular, to
ensure fulfilment of the obligations arising out of this Agreement.
They shall abstain from any measure which could jeopardize the attainment of the objectives
of this Agreement.
Moreover, they shall facilitate cooperation within the framework of this Agreement.
Article 4
Within the scope of application of this Agreement, and without prejudice to any special
provisions contained therein, any discriminatio n on grounds of nationality shall be prohibited.
Article 5
A Contracting Party may at any time raise a matter of concern at the level of the EEA Joint
Committee or the EEA Council according to the moda lities laid down in Articles 92 (2) and 89 (2),
respectively.
Article 6
Without prejudice to future developments of case law, the provisions of this Agreement, in so
far as they are identical in substance to corresp onding rules of the Treaty establishing the European
Economic Community and the Treaty establishing the European Coal and Steel Community and to
acts adopted in application of these two Treaties, shall, in their implementation and application, beinterpreted in conformity with the relevant rulings of the Court of Justice of the European
Communities given prior to the date of signature of this Agreement.
Article 7
Acts referred to or contained in the Annexes to this Agreement or in decisions of the EEA
Joint Committee shall be binding upon the Contracting Parties and be, or be made, part of theirinternal legal order as follows :
(a) an act corresponding to an EEC regulation shall as such be made part of the internal
legal order of the Contracting Parties;
(b) an act corresponding to an EEC directiv e shall leave to the authorities of the
Contracting Parties the choice of form and method of implementation.WT/REG138/1
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PART II
FREE MOVEMENT OF GOODS
CHAPTER 1
Basic Principles
Article 8
1. Free movement of goods between the Contracting Parties shall be established in conformity
with the provisions of this Agreement.
2. Unless otherwise specified, Articles 10 to 15, 19, 20 and 25 to 27 shall apply only to products
originating in the Contracting Parties.
3. Unless otherwise specified, the provisions of this Agreement shall apply only to:
(a) products falling within Chapters 25 to  97 of the Harmonized Commodity Description
and Coding System, excluding the products listed in Protocol 2;
(b) products specified in Protocol 3, subject to the specific arrangements set out in that
Protocol.
Article 9
1. The rules of origin are set out in Protocol 4. They are without prejudice to any international
obligations which have been, or may be, subscribed to by the Contracting Parties under the General
Agreement on Tariffs and Trade.
2. With a view to developing the results achieved in this Agreement, the Contracting Parties will
continue their efforts in order further to improve and simplify all aspects of rules of origin and to
increase cooperation in customs matters.
3. A first review will take place before the end of 1993. Subsequent reviews will take place at
two-yearly intervals. On the basis of these reviews, the Contracting Parties undertake to decide on the
appropriate measures to be included in this Agreement.
Article 10
Customs duties on imports and exports, and any charges having equivalent effect, shall be
prohibited between the Contracting Parties. Wit hout prejudice to the arrangements set out in
Protocol 5, this shall also apply to customs duties of a fiscal nature.
Article 11
Quantitative restrictions on imports and all measures having equivalent effect shall be
prohibited between the Contracting Parties.
Article 12
Quantitative restrictions on exports and all measures having equivalent effect shall be
prohibited between the Contracting Parties.WT/REG138/1
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Article 13
The provisions of Articles 11 and 12 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; the protection of national treasurespossessing 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 Contracting Parties.
Article 14
No Contracting Party shall impose, directly or indirectly, on the products of other Contracting
Parties any internal taxation of any kind in excess of that imposed directly or indirectly on similar
domestic products.
Furthermore, no Contracting Party shall impose on the products of other Contracting Parties
any internal taxation of such a nature as to afford indirect protection to other products.
Article 15
Where products are exported to the territory of any Contracting Party, any repayment of
internal taxation shall not exceed the internal taxation imposed on them whether directly or indirectly.
Article 16
1. The Contracting Parties shall ensure that any State monopoly of a commercial character be
adjusted so that no discrimination regarding the conditions under which goods are procured andmarketed will exist between nationals of EC Member States and EFTA States.
2. The provisions of this Article shall apply to any body through which the competent
authorities of the Contracting Parties, in law or in fact, either directly or indirectly supervise,
determine or appreciably influence imports or exports between Contracting Parties. These provisions
shall likewise apply to monopolies delegated by the State to others.
CHAPTER 2
Agricultural and Fishery Products
Article 17
Annex I contains specific provisions and arrangements concerning veterinary and
phytosanitary matters.
Article 18
Without prejudice to the specific arrangements governing trade in agricultural products, the
Contracting Parties shall ensure that the arrangements provided for in Articles 17 and 23 (a) and (b),
as they apply to products other than those covered by Article 8(3), are not compromised by other
technical barriers to trade. Article 13 shall apply.WT/REG138/1
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Article 19
1. The Contracting Parties shall examine any difficulties that might arise in their trade in
agricultural products and shall endeavour to seek appropriate solutions.
2. The Contracting Parties undertake to conti nue their efforts with a view to achieving
progressive liberalization of agricultural trade.
3. To this end, the Contracting Parties will carry out, before the end of 1993 and subsequently at
two-yearly intervals, reviews of the cond itions of trade in agricultural products.
4. In the light of the results of these reviews, within the framework of their respective
agricultural policies and taking into account the results of the Uruguay Round, the Contracting Parties
will decide, within the framework of this Agreement, on a preferential, bilateral or multilateral,
reciprocal and mutually beneficial basis, on further reductions of any type of barriers to trade in the
agricultural sector, including those resulting from  State monopolies of a commercial character in the
agricultural field.
Article 20
Provisions and arrangements that apply to fish and other marine products are set out in
Protocol 9.
CHAPTER 3
Cooperation in Customs-Related Matters
and Trade Facilitation
Article 21
1. In order to facilitate trade between them, the Contracting Parties shall simplify border
controls and formalities. Arrangements for this purpose are set out in Protocol 10.
2. The Contracting Parties shall assist each other in customs matters in order to ensure that
customs legislation is correctly applied.  Arrangements for this purpose are set out in Protocol 11.
3. The Contracting Parties shall strengthen and broaden cooperation with the aim of simplifying
the procedures for trade in goods, in particular in the context of Community programmes, projects and
actions aimed at trade facilitation, in accordance with the rules set out in Part VI.
4. Notwithstanding Article 8(3), this Article shall apply to all products.
Article 22
A Contracting Party which is considering the reduction of the effective level of its duties or
charges having equivalent effect applicable to third countries benefiting from most-favoured-nation
treatment, or which is considering the suspension of their application, shall, as far as may be
practicable, notify the EEA Joint Committee not la ter than thirty days before such reduction or
suspension comes into effect. It shall take note of any representations by other Contracting Partiesregarding any distortions which might result therefrom.WT/REG138/1
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CHAPTER 4
Other Rules Relating to the Free
Movement of Goods
Article 23
Specific provisions and arrangements are laid down in:(a) Protocol 12 and Annex II in relation to t echnical regulations, standards, testing and
certification;
(b) Protocol 47 in relation to the abolition of technical barriers to trade in wine;
(c) Annex III in relation to product liability.They shall apply to all products unless otherwise specified.
Article 24
Annex IV contains specific provisions and arrangements concerning energy.
Article 25
Where compliance with the provisions of Articles 10 and 12 leads to:(a) re-export towards a third country against which the exporting Contracting Party
maintains, for the product concerned, quantitative export restrictions, export duties or
measures or charges having equivalent effect; or
(b) a serious shortage, or threat thereof, of a product essential to the exporting
Contracting Party;
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for
the exporting Contracting Party, that Contracting Party may take appropriate measures in accordance
with the procedures set out in Article 113.
Article 26
Anti-dumping measures, countervailing duties and measures against illicit commercial
practices attributable to third countries shall not be applied in relations between the Contracting
Parties, unless otherwise specified in this Agreement.
CHAPTER 5
Coal and Steel Products
Article 27
Provisions and arrangements concerning coal and steel products are set out in Protocols 14
and 25.WT/REG138/1
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PART III
FREE MOVEMENT OF PERSONS,
SERVICES AND CAPITAL
CHAPTER 1
Workers and Self-Employed Persons
Article 28
1. Freedom of movement for workers shall be  secured among EC Member States and EFTA
States.
2. Such freedom of movement shall entail the abolition of any discrimination based on
nationality between workers of EC Member States and EFTA States as regards employment,
remuneration and other conditions of work and employment.
3. It shall entail the right, subject to limitations justified on grounds of public policy, public
security or public health:
(a) to accept offers of employment actually made;(b) to move freely within the territory of EC Member States and EFTA States for this
purpose;
(c) to stay in the territory of an EC Member State or an EFTA State for the purpose of
employment in accordance with the provisions governing the employment of
nationals of that State laid down by law, regulation or administrative action;
(d) to remain in the territory of an EC Member State or an EFTA State after having been
employed there.
4. The provisions of this Article shall not apply to employment in the public service.5. Annex V contains specific provisions on the free movement of workers.
Article 29
In order to provide freedom of movement for workers and self-employed persons, the
Contracting Parties shall, in the field of social security, secure, as provided for in Annex VI, for
workers and self-employed persons and their dependants, in particular:
(a) aggregation, for the purpose of acquiring and retaining the right to benefit and of
calculating the amount of benefit, of all periods taken into account under the laws of
the several countries;
(b) payment of benefits to persons resident in the territories of Contracting Parties.
Article 30
In order to make it easier for persons to take up and pursue activities as workers and self-
employed persons, the Contracting Parties shall take the necessary measures, as contained inWT/REG138/1
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Annex VII, concerning the mutual recognition of diplomas, certificates and other evidence of formal
qualifications, and the coordination of the provisions laid down by law, regulation or administrative
action in the Contracting Parties concerning the taking up and pursuit of activities by workers and
self-employed persons.
CHAPTER 2
Right of Establishment
Article 31
1. Within the framework of the provisions of th is Agreement, there shall be no restrictions on
the freedom of establishment of nationals of an EC Member State or an EFTA State in the territory of
any other of these States. This shall also apply to the setting up of agencies, branches or subsidiaries
by nationals of any EC Member State or EFTA State established in the territory of any of these States.
Freedom of establishment shall include the right to take up and pursue activities as self-
employed persons and to set up and manage undertakings, in particular companies or firms within the
meaning of Article 34, second paragraph, under the conditions laid down for its own nationals by the
law of the country where such establishment is effected, subject to the provisions of Chapter 4.
2. Annexes VIII to XI contain specific provisions on the right of establishment.
Article 32
The provisions of this Chapter shall not apply, so far as any given Contracting Party is
concerned, to activities which in that Contracting Party are connected, even occasionally, with theexercise of official authority.
Article 33
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 nationals on grounds of public policy, public security or public health.
Article 34
Companies or firms formed in accordance with the law of an EC Member State or an EFTA
State and having their registered office, central administration or principal place of business within theterritory of the Contracting Parties shall, for the purposes of this Chapter, be treated in the same way
as natural persons who are nationals of EC Member States or EFTA States.
’Companies or firms’ means companies or firms constituted under civil or commercial law,
including cooperative societies, and other legal persons governed by public or private law, save forthose which are non-profit-making.
Article 35
The provisions of Article 30 shall apply to the matters covered by this Chapter.WT/REG138/1
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CHAPTER 3
Services
Article 36
1. Within the framework of the provisions of th is Agreement, there shall be no restrictions on
freedom to provide services within the territory of the Contracting Parties in respect of nationals of
EC Member States and EFTA States who are established in an EC Member State or an EFTA State
other than that of the person for whom the services are intended.
2. Annexes IX to XI contain specific provisions on the freedom to provide services.
Article 37
Services shall be considered to be ’services’  within the meaning of this Agreement where
they are normally provided for remuneration, in so far as they are not governed by the provisionsrelating to freedom of movement for goods, capital and persons.
’Services’ shall in particular include :(a) activities of an industrial character;(b) activities of a commercial character;(c) activities of craftsmen;
(d) activities of the professions.
Without prejudice to the provisions of Chapter 2, the person providing a service may, in order
to do so, temporarily pursue his activity in the State where the service is provided, under the same
conditions as are imposed by that State on its own nationals.
Article 38
Freedom to provide services in the field of transport shall be governed by the provisions of
Chapter 6.
Article 39
The provisions of Articles 30 and 32 to 34 shall apply to the matters covered by this Chapter.
CHAPTER 4
Capital
Article 40
Within the framework of the provisions of this Agreement, there shall be no restrictions
between the Contracting Parties on the movement of capital belonging to persons resident in EC
Member States or EFTA States and no discrimination based on the nationality or on the place of
residence of the parties or on the place where such capital is invested. Annex XII contains the
provisions necessary to implement this Article.WT/REG138/1
Page 12
Article 41
Current payments connected with the movement of goods, persons, services or capital
between Contracting Parties within the framework of the provisions of this Agreement shall be free of
all restrictions.
Article 42
1. Where domestic rules governing the capital market and the credit system are applied to the
movements of capital liberalized in accordance with the provisions of this Agreement, this shall be
done in a non-discriminatory manner.
2. Loans for the direct or indirect financing of an EC Member State or an EFTA State or its
regional or local authorities shall not be issued or placed in other EC Member States or EFTA States
unless the States concerned have reached agreement thereon.
Article 43
1. Where differences between the exchange rules of EC Member States and EFTA States could
lead persons resident in one of these States to use the freer transfer facilities within the territory of the
Contracting Parties which are provided for in Article 40 in order to evade the rules of one of these
States concerning the movement of capital to or from third countries, the Contracting Party concernedmay take appropriate measures to overcome these difficulties.
2. If movements of capital lead to disturbances in the functioning of the capital market in any
EC Member State or EFTA State, the Contracting Party concerned may take protective measures in
the field of capital movements.
3. If the competent authorities of a Contracting Pa rty make an alteration in the rate of exchange
which seriously distorts conditions of competition, the other Contracting Parties may take, for a
strictly limited period, the necessary measures in order to counter the consequences of such alteration.
4. Where an EC Member State or an EFTA State is in difficulties, or is seriously threatened with
difficulties, as regards its balance of payments either as a result of an overall disequilibrium in itsbalance of payments, or as a result of the type of currency at its disposal, and where such difficulties
are liable in particular to jeopardize the func tioning of this Agreement, the Contracting Party
concerned may take protective measures.
Article 44
The Community, on the one hand, and the EFTA States, on the other, shall apply their
internal procedures, as provided for in Protocol 18, to implement the provisions of Article 43.
Article 45
1. Decisions, opinions and recommendations relate d to the measures laid down in Article 43
shall be notified to the EEA Joint Committee.
2. All measures shall be the subject of prior consultations and exchange of information within
the EEA Joint Committee.WT/REG138/1
Page 13
3. In the situation referred to in Article 43(2), the Contracting Party concerned may, however, on
the grounds of secrecy and urgency take the measures, where this proves necessary, without prior
consultations and exchange of information.
4. In the situation referred to in Article 43(4), where a sudden crisis in the balance of payments
occurs and the procedures set out in paragraph 2 cannot be followed, the Contracting Party concerned
may, as a precaution, take the necessary protective measures. Such measures must cause the least
possible disturbance in the functioning of this Agreement and must not be wider in scope than is
strictly necessary to remedy the sudden difficulties which have arisen.
5. When measures are taken in accordance with paragraphs 3 and 4, notice thereof shall be given
at the latest by the date of their entry into force,  and the exchange of information and consultations as
well as the notifications referred to in paragraph 1 shall take place as soon as possible thereafter.
CHAPTER 5
Economic and Monetary
Policy Cooperation
Article 46
The Contracting Parties shall exchange views and information concerning the implementation
of this Agreement and the impact of the integration on economic activities and on the conduct of
economic 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 6
Transport
Article 47
1. Articles 48 to 52 shall apply to transport by rail, road and inland waterway.
2. Annex XIII contains specific provisions on all modes of transport.
Article 48
1. The provisions of an EC Member State or an EFTA State, relative to transport by rail, road
and inland waterway and not covered by Annex XIII, shall not be made less favorable in their direct
or indirect effect on carriers of other States as compared with carriers who are nationals of that State.
2. Any Contracting Party deviating from the princi ple laid down in paragraph 1 shall notify the
EEA Joint Committee thereof. The other Contracting Parties which do not accept the deviation maytake corresponding countermeasures.
Article 49
Aid shall be compatible with this Agreement if it meets the needs of coordination of transport
or if it represents reimbursement for the discharge of certain obligations inherent in the concept of a
public service.WT/REG138/1
Page 14
Article 50
1. In the case of transport within the territory of the Contracting Parties, there shall be no
discrimination which takes the form of carriers charging different rates and imposing different
conditions for the carriage of the same goods over the same transport links on grounds of the countryof origin or of destination of the goods in question.
2. The competent authority according to Part VII shall, acting on its own initiative or on
application by an EC Member State or an EFTA State, investigate any cases of discrimination falling
within this Article and take the necessary decisions within the framework of its internal rules.
Article 51
1. The imposition, in respect of transport operations carried out within the territory of the
Contracting Parties, of rates and conditions involving any element of support or protection in the
interest of one or more particular undertakings or industries, shall be prohibited unless authorized by
the competent authority referred to in Article 50 (2).
2. The competent authority shall, acting on its own initiative or on application by an EC
Member State or an EFTA State, examine the rates and conditions referred to in paragraph 1, taking
account in particular of the requirements of an appropriate regional economic policy, the needs of
underdeveloped areas and the problems of areas seri ously affected by political circumstances, on the
one hand, and of the effects of such rates and conditions on competition between the different modes
of transport, on the other.
The competent authority shall take the necessary decisions within the framework of its
internal rules.
3. The prohibition provided for in paragraph 1 shall not apply to tariffs fixed to meet
competition.
Article 52
Charges or dues in respect of the crossing of frontiers which are charged by a carrier in
addition to transport rates shall not exceed a reason able level after taking the costs actually incurred
thereby into account.  The Contracting Parties shall endeavour to reduce these costs progressively.
PART IV
COMPETITION AND OTHER COMMON RULES
CHAPTER 1
Rules Applicable to Undertakings
Article 53
1. The following shall be prohibited as incompatib le with the functioning of this Agreement: all
agreements between undertakings, decisions by associations of undertakings and concerted practiceswhich may affect trade between Contracting Parties and which have as their object or effect the
prevention, restriction or distortion of competition within the territory covered by this Agreement, and
in particular those which:WT/REG138/1
Page 15
(a) directly or indirectly fix purchase or selling prices or any other trading conditions;
(b) limit or control production, markets, technical development, or investment;(c) share markets or sources of supply;(d) apply dissimilar conditions to equivalent transactions with other trading parties,
thereby placing them at a competitive disadvantage;
(e) make the conclusion of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage,
have no connection with the subject of such contracts.
2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void.3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of:
- any agreement or category of agreements between undertakings;
- any decision or category of decisions by associations of undertakings;- any concerted practice or category of concerted practices;
which contributes to improving the production or di stribution of goods or to promoting technical or
economic progress, while allowing consumers a fair share of the resulting benefit, and which does
not:
(a) impose on the undertakings concerned restrictions which are not indispensable to the
attainment of these objectives;
(b) afford such undertakings the possibility of eliminating competition in respect of a
substantial part of the products in question.
Article 54
Any abuse by one or more undertakings of a dominant position within the territory covered by
this Agreement or in a substantial part of it shall be prohibited as incompatible with the functioning of
this Agreement in so far as it may affect trade between Contracting Parties.
Such abuse may, in particular, consist in:
(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading
conditions;
(b) limiting production, markets or technical development to the prejudice of consumers;
(c) applying dissimilar conditions to equivalent transactions with other trading parties,
hereby placing them at a competitive disadvantage;
(d) making the conclusion of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage,
have no connection with the subject of such contracts.WT/REG138/1
Page 16
Article 55
1. Without prejudice to the provisions giving effect to Articles 53 and 54 as contained in
Protocol 21 and Annex XIV of this Agreement,  the EC Commission and the EFTA Surveillance
Authority provided for in Article 108(1) shall ensure the application of the principles laid down inArticles 53 and 54.
The competent surveillance authority, as provided for in Article 56, shall investigate cases of
suspected infringement of these principles, on its own initiative, or on application by a State within
the respective territory or by the other surveillance authority. The competent surveillance authority
shall carry out these investigations in cooperation with the competent national authorities in the
respective territory and in cooperation with the other surveillance authority, which shall give it itsassistance in accordance with its internal rules.
If it finds that there has been an infringement, it shall propose appropriate measures to bring it
to an end.
2. If the infringement is not brought to an end,  the competent surveillance authority shall record
such infringement of the principles in a reasoned decision.
The competent surveillance authority may publish its decision and authorize States within the
respective territory to take the measures, the conditions and details of which it shall determine, neededto remedy the situation. It may also request the other surveillance authority to authorize States within
the respective territory to take such measures.
Article 56
1. Individual cases falling under Article 53 shall be decided upon by the surveillance authorities
in accordance with the following provisions:
(a) individual cases where only trade between EFTA States is affected shall be decided
upon by the EFTA Surveillance Authority;
(b) without prejudice to subparagraph (c), the EFTA Surveillance Authority decides, as
provided for in the provisions set out in Article 58, Protocol 21 and the rules adopted
for its implementation, Protocol 23 and Annex XIV, on cases where the turnover of
the undertakings concerned in the territory of the EFTA States equals 33 per cent or
more of their turnover in the territory covered by this Agreement;
(c) the EC Commission decides on the other cases as well as on cases under (b) where
trade between EC Member States is affected, taking into account the provisions set
out in Article 58, Protocol 21, Protocol 23 and Annex XIV.
2. Individual cases falling under Article 54 shall be decided upon by the surveillance authority
in the territory of which a dominant position is found to exist. The rules set out in paragraph 1(b) and
(c) shall apply only if dominance exists within the territories of both surveillance authorities.
3. Individual cases falling under subparagraph (c) of paragraph 1, whose effects on trade
between EC Member States or on competition within the Community are not appreciable, shall bedecided upon by the EFTA Surveillance Authority.
4. The terms ’undertaking’ and ’turnover’ are, for the purposes of this Article, defined in
Protocol 22.WT/REG138/1
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Article 57
1. Concentrations the control of which is provided for in paragraph 2 and which create or
strengthen a dominant position as a result of which effective competition would be significantly
impeded within the territory covered by this Agreement or a substantial part of it, shall be declaredincompatible with this Agreement.
2. The control of concentrations falling under paragraph 1 shall be carried out by:
(a) the EC Commission in cases falling under Regulation (EEC) No 4064/89 in
accordance with that Regulation and in accordance with Protocols 21 and 24 and
Annex XIV to this Agreement. The EC Commission shall, subject to the review ofthe EC Court of Justice, have sole competence to take decisions on these cases;
(b) the EFTA Surveillance Authority in cases not falling under subparagraph (a) where
the relevant thresholds set out in Annex XIV are fulfilled in the territory of the EFTA
States in accordance with Protocols 21 and 24 and Annex XIV. This is withoutprejudice to the competence of EC Member States.
Article 58
With a view to developing and maintaining a uniform surveillance throughout the European
Economic Area in the field of competition and to promoting a homogeneous implementation,
application and interpretation of the provisions of this Agreement to this end, the competent
authorities shall cooperate in accordance with the provisions set out in Protocols 23 and 24.
Article 59
1. In the case of public undertakings and undertakings to which EC Member States or EFTA
States grant special or exclusive rights, the Contracting Parties shall ensure that there is neither
enacted nor maintained in force any measure contra ry to the rules contained in this Agreement, in
particular to those rules provided for in Articles 4 and 53 to 63.
2. Undertakings entrusted with the operation of services of general economic interest or having
the character of a revenue-producing monopoly shall be subject to the rules contained in this
Agreement, in particular to the rules on competition, in so far as the application of such rules does not
obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development
of trade must not be affected to such an extent as would be contrary to the interests of the Contracting
Parties.
3. The EC Commission as well as the EFTA Surveillance Authority shall ensure within their
respective competence the application of the provisions of this Article and shall, where necessary,
address appropriate measures to the States falling within their respective territory.
Article 60
Annex XIV contains specific provisions giving effect to the principles set out in Articles 53,
54, 57 and 59.WT/REG138/1
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CHAPTER 2
State Aid
Article 61
1. Save as otherwise provided in this Agreement, any aid granted by EC Member States, EFTA
States or through State resources in any form wh atsoever which distorts or threatens to distort
competition by favouring certain undertakings or the production of certain goods shall, in so far as it
affects trade between Contracting Parties, be incompatible with the functioning of this Agreement.
2. The following shall be compatible with the functioning of this Agreement:
(a) aid having a social character, granted to individual consumers, provided that such aid
is granted without discrimination related to the origin of the products concerned;
(b) aid to make good the damage caused by natural disasters or exceptional occurrences;(c) aid granted to the economy of certain areas of the Federal Republic of Germany
affected by the division of Germany, in so far as such aid is required in order to
compensate for the economic disadvantages caused by that division.
3. The following may be considered to be compatible with the functioning of this Agreement:
(a) aid to promote the economic development of areas where the standard of living is
abnormally low or where there is serious underemployment;
(b) aid to promote the execution of an important project of common European interest or
to remedy a serious disturbance in the economy of an EC Member State or an EFTA
State;
(c) aid to facilitate the development of certain economic activities or of certain economic
areas, where such aid does not adversely affect trading conditions to an extent
contrary to the common interest;
(d) such other categories of aid as may be specified by the EEA Joint Committee in
accordance with  Part VII.
Article 62
1. All existing systems of State aid in the territory of the Contracting Parties, as well as any
plans to grant or alter State aid, shall be subject to constant review as to their compatibility with
Article 61. This review shall be carried out:
(a) as regards the EC Member States, by the EC Commission according to the rules laid
down in Article 93 of the Treaty establishing the European Economic Community;
b) as regards the EFTA States, by the EFTA Surveillance Authority according to the
rules set out in an agreement between the EFTA States establishing the EFTASurveillance Authority which is entrusted with the powers and functions laid down in
Protocol 26.WT/REG138/1
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2. With a view to ensuring a uniform surveill ance in the field of State aid throughout the
territory covered by this Agreement, the EC Commission and the EFTA Surveillance Authority shall
cooperate in accordance with the provisions set out in Protocol 27.
Article 63
Annex XV contains specific provisions on State aid.
Article 64
1. If one of the surveillance authorities considers that the implementation by the other
surveillance authority of Articles 61 and 62 of this Agreement and Article 5 of Protocol 14 is not in
conformity with the maintenance of equal conditions of competition within the territory covered by
this Agreement, exchange of views shall be held within two weeks according to the procedure of
Protocol 27, paragraph (f).
If a commonly agreed solution has not been fo und by the end of this two-week period, the
competent authority of the affected Contracting Party may immediately adopt appropriate interim
measures in order to remedy the resulting distortion of competition.
Consultations shall then be held in the EEA Joint Committee with a view to finding a
commonly acceptable solution.
If within three months the EEA Joint Committee ha s not been able to find such a solution, and
if the practice in question causes, or threatens to cause, distortion of competition affecting trade
between the Contracting Parties, the interim measures may be replaced by definitive measures, strictly
necessary to offset the effect of such distortion. Priority shall be given to such measures that will leastdisturb the functioning of the EEA.
2. The provisions of this Article will also apply to State monopolies, which are established after
the date of signature of the Agreement.
CHAPTER 3
Other Common Rules
Article 65
1. Annex XVI contains specific provisions a nd arrangements concerning procurement which,
unless otherwise specified, shall apply to all products and to services as specified.
2. Protocol 28 and Annex XVII contain specific provisions and arrangements concerning
intellectual, industrial and commercial property, which, unless otherwise specified, shall apply to all
products and services.WT/REG138/1
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PART V
HORIZONTAL PROVISIONS RELEVANT
TO THE FOUR FREEDOMS
CHAPTER 1
Social Policy
Article 66
The Contracting Parties agree upon the need to promote improved working conditions and an
improved standard of living for workers.
Article 67
1. The Contracting Parties shall pay particular attention to encouraging improvements,
especially in the working environment, as regards the health and safety of workers. In order to help
achieve this objective, minimum requirements shall be applied for gradual implementation, having
regard to the conditions and technical rules obtaining in each of the Contracting Parties. Such
minimum requirements shall not prevent any Contracting Party from maintaining or introducing more
stringent measures for the protection of working conditions compatible with this Agreement.
2. Annex XVIII specifies the provisions to be implemented as the minimum requirements
referred to in paragraph 1.
Article 68
In the field of labour law, the Contracting Parties shall introduce the measures necessary to ensure the
good functioning of this Agreement. These measures are specified in Annex XVIII.
Article 69
1. Each Contracting Party shall ensure and maintain the application of the principle that men and
women should receive equal pay for equal work.
For the purposes of this Article, ’pay’ means the ordinary basic or minimum wage or salary
and any other consideration, whether in cash or in kind, which the worker receives, directly or
indirectly, in respect of his employment from his employer.
Equal pay without discrimination based on sex means:(a) that pay for the same work at piece rates shall be calculated on the basis of the same
unit of measurement;
(b) that pay for work at time rates shall be the same for the same job.
2. Annex XVIII contains specific provisions for the implementation of paragraph 1.
Article 70
The Contracting Parties shall promote the principle of equal treatment for men and women by
implementing the provisions specified in Annex XVIII.WT/REG138/1
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Article 71
The Contracting Parties shall endeavour to promote the dialogue between management and
labour at European level.
CHAPTER 2
Consumer Protection
Article 72
Annex XIX contains provisions on consumer protection.
CHAPTER 3
Environment
Article 73
1. Action by the Contracting Parties relating to the environment shall have the following
objectives:
(a) to preserve, protect and improve the quality of the environment;
(b) to contribute towards protecting human health;(c) to ensure a prudent and rational utilization of natural resources.
2. Action by the Contracting Parties relating to the environment shall be based on the principles
that preventive action should be taken, that environmental damage should as a priority be rectified at
source, and that the polluter should pay. Environmental protection requirements shall be a component
of the Contracting Parties’ other policies.
Article 74
Annex XX contains the specific provisions on protective measures which shall apply pursuant
to Article 73.
Article 75
The protective measures referred to in Article 74 shall not prevent any Contracting Party from
maintaining or introducing more stringent protective measures compatible with this Agreement.
CHAPTER 4
Statistics
Article 76
1. The Contracting Parties shall ensure the production and dissemination of coherent and
comparable statistical information for describing and monitoring all relevant economic, social and
environmental aspects of the EEA.WT/REG138/1
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2. To this end the Contracting Parties shall develop and use harmonized methods, definitions
and classifications as well as common programmes and procedures organizing statistical work at
appropriate administrative levels and duly observing the need for statistical confidentiality.
3. Annex XXI contains specific provisions on statistics.4. Protocol 30 contains specific provisions on the organization of cooperation in the field of
statistics.
CHAPTER 5
Company Law
Article 77
Annex XXII contains specific provisions on company law.
PART VI
COOPERATION OUTSIDE THE FOUR FREEDOMS
Article 78
The Contracting Parties shall strengthen and broaden cooperation in the framework of the
Community’s activities in the fields of:
- research and technological development,
- information services,
- the environment,
- education, training and youth,
- social policy,
- consumer protection,
- small and medium-sized enterprises,
- tourism,- the audiovisual sector, and
- civil protection,
in so far as these matters are not regulated under the provisions of other Parts of this Agreement.
Article 79
1. The Contracting Parties shall strengthen the dialogue between them by all appropriate means,
in particular through the procedures provided for in  Part VII, with a view to identifying areas and
activities where closer cooperation could contribute to the attainment of their common objectives inthe fields referred to in Article 78.
2. They shall, in particular, exchange information and, at the request of a Contracting Party, hold
consultations within the EEA Joint Committee in respect of plans or proposals for the establishment
or amendment of framework programmes, specific programmes, actions and projects in the fieldsreferred to in Article 78.
3. Part VII shall apply mutatis mutandis with regard to this Part whenever the latter or
Protocol 31 specifically provides therefor.WT/REG138/1
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Article 80
The cooperation provided for in Article 78 shall normally take one of the following forms:- participation by EFTA States in EC framework programmes, specific programmes,
projects or other actions;
- establishment of joint activities in specific areas, which may include concertation or
coordination of activities, fusion of existing activities and establishment of ad hoc
joint activities;
- the formal and informal exchange or provision of information;- common efforts to encourage certain activities throughout the territory of the
Contracting Parties;
- parallel legislation, where appropriate, of identical or similar content;- coordination, where this is of mutual interest, of efforts and activities via, or in the
context of, international organizations, and of cooperation with third countries.
Article 81
Where cooperation takes the form of participation by EFTA States in an EC framework
programme, specific programme, project or other action, the following principles shall apply:
(a) The EFTA States shall have access to all parts of a programme.(b) The status of the EFTA States in the committees which assist the EC Commission in
the management or development of a Community activity to which EFTA States may
be contributing financially by virtue of their participation shall take full account of
that contribution.
(c) Decisions by the Community, other than those relating to the general budget of the
Community, which affect directly or indirectly a framework programme, specific
programme, project or other action, in which EFTA States participate by a decision
under this Agreement, shall be subject to the provisions of Article 79(3). The terms
and conditions of the continued participation in the activity in question may be
reviewed by the EEA Joint Committee in accordance with Article 86.
(d) At the project level, institutions, undertakings, organizations and nationals of EFTA
States shall have the same rights and obligations in the Community programme or
other action in question as those applicable to partner institutions, undertakings,
organizations and nationals of EC Member States. The same shall apply mutatismutandis to participants in exchanges between EC Member States and EFTA States,
under the activity in question.
(e) EFTA States, their institutions, undertakings, organizations and nationals shall have
the same rights and obligations with regard to dissemination, evaluation andexploitation of results as those applicable to EC Member States, their institutions,
undertakings, organizations and nationals.WT/REG138/1
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(f) The Contracting Parties undertake, in accordance with their respective rules and
regulations, to facilitate the movement of participants in the programme and other
action to the extent necessary.
Article 82
1. When the cooperation envisaged under the present Part involves a financial participation of
the EFTA States, this participation shall take one of the following forms:
(a) The contribution of the EFTA States, arising from their participation in Community
activities, shall be calculated proportionally:
- to the commitment appropriations; and
- to the payment appropriations;entered each year for the Community in the general budget of the Community for
each budgetary line corresponding to the activities in question.
The ’proportionality factor’ determining the participation of the EFTA States shall be
the sum of the ratios between, on the one hand, the gross domestic product at market
prices of each of the EFTA States and, on the other hand, the sum of the grossdomestic products at market prices of the EC Member States and of that EFTA State.
This factor shall be calculated, for each budgetary year, on the basis of the most
recent statistical data.
The amount of the contribution of the EFTA States shall be additional, both in
commitment appropriations and in payment appropriations, to the amounts entered
for the Community in the general budget on each line corresponding to the activities
concerned.
The contributions to be paid each year by the EFTA States shall be determined on the
basis of the payment appropriations.
Commitments entered into by the Community prior to the entry into force, on the
basis of this Agreement, of the participa tion of the EFTA States in the activities in
question - as well as the payments which result from this - shall give rise to no
contribution on the part of the EFTA States.
(b) The financial contribution of EFTA States deriving from their participation in certain
projects or other activities shall be based on the principle that each Contracting Party
shall cover its own costs, with an appropriate contribution which shall be fixed by the
EEA Joint Committee to the Community’s overhead costs.
(c) The EEA Joint Committee shall take the necessary decisions concerning the
contribution of the Contracting Parties to the costs of the activity in question.
2. The detailed provisions for the implementation of this Article are set out in Protocol 32.
Article 83
Where cooperation takes the form of an exchange of information between public authorities,
the EFTA States shall have the same rights to receive, and obligations to provide, information as ECWT/REG138/1
Page 25
Member States, subject to the requirements of confidentiality, which shall be fixed by the EEA Joint
Committee.
Article 84
Provisions governing cooperation in specific fields are set out in Protocol 31.
Article 85
Unless otherwise provided for in Protocol 31, cooperation already established between the
Community and individual EFTA States in the fields referred to in Article 78 on the date of entry into
force of this Agreement shall thereafter be governed by the relevant provisions of this Part and ofProtocol 31.
Article 86
The EEA Joint Committee shall, in accordance with Part VII, take all decisions necessary for
the implementation of Articles 78 to 85 and measures derived therefrom, which may include, inter
alia, supplementing and amending the provisions of Protocol 31, as well as adopting any transitional
arrangements required by way of implementation of Article 85.
Article 87
The Contracting Parties shall take the necessary steps to develop, strengthen or broaden
cooperation in the framework of the Community’s activities in fields not listed in Article 78, where
such cooperation is considered likely to contribute to the attainment of the objectives of this
Agreement, or is otherwise deemed by the Contract ing Parties to be of mutual interest. Such steps
may include the amendment of Article 78 by the addition of new fields to those listed therein.
Article 88
Without prejudice to provisions of other Parts of this Agreement, the provisions of this Part
shall not preclude the possibility for any Contrac ting Party to prepare, adopt and implement measures
independently.
PART VII
INSTITUTIONAL PROVISIONS
CHAPTER 1
The Structure of the Association
Section 1
The EEA Council
Article 89
1. An EEA Council is hereby established. It shall, in particular, be responsible for giving the
political impetus in the implementation of this Agreement and laying down the general guidelines for
the EEA Joint Committee.WT/REG138/1
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To this end, the EEA Council shall assess the ov erall functioning and the development of the
Agreement. It shall take the political decisions leading to amendments of the Agreement.
2. The Contracting Parties, as to the Community and the EC Member States in their respective
fields of competence, may, after having discussed it in the EEA Joint Committee, or directly inexceptionally urgent cases, raise in the EEA Council any issue giving rise to a difficulty.
3. The EEA Council shall by decision adopt its rules of procedure.
Article 90
1. The EEA Council shall consist of the members of the Council of the European Communities
and members of the EC Commission, and of one me mber of the Government of each of the EFTA
States.
Members of the EEA Council may be represented in accordance with the conditions to be laid
down in its rules of procedure.
2. Decisions by the EEA Council shall be take n by agreement between the Community, on the
one hand, and the EFTA States, on the other.
Article 91
1. The office of President of the EEA Council shall be held alternately, for a period of
six months, by a member of the Council of the European Communities and a member of the
Government of an EFTA State.
2. The EEA Council shall be convened twice a year  by its President. The EEA Council shall also
meet
whenever circumstances so require, in accordance with its rules of procedure.
Section 2
The EEA Joint Committee
Article 92
1. An EEA Joint Committee is hereby established. It shall ensure the effective implementation
and operation of this Agreement. To this end, it shall carry out exchanges of views and informationand take decisions in the cases provided for in this Agreement.
2. The Contracting Parties, as to the Community and the EC Member States in their respective
fields of competence, shall hold consultations in the EEA Joint Committee on any point of relevance
to the Agreement giving rise to a difficulty and raised by one of them.
3. The EEA Joint Committee shall by decision adopt its rules of procedure.
Article 93
1. The EEA Joint Committee shall consist of representatives of the Contracting Parties.
2. The EEA Joint Committee shall take decisions  by agreement between the Community, on the
one hand, and the EFTA States speaking with one voice, on the other.WT/REG138/1
Page 27
Article 94
1. The office of President of the EEA Joint Committee shall be held alternately, for a period of
six months, by the representative of the Community, i.e. the EC Commission, and the representative
of one of the EFTA States.
2. In order to fulfil its functions, the EEA Joint Committee shall meet, in principle, at least once
a month. It shall also meet on the initiative of its President or at the request of one of the Contracting
Parties in accordance with its rules of procedure.
3. The EEA Joint Committee may decide to establish any subcommittee or working group to
assist it in carrying out its tasks. The EEA Joint Committee shall in its rules of procedure lay down thecomposition and mode of operation of such subcommittees and working groups. Their tasks shall be
determined by the EEA Joint Committee in each individual case.
4. The EEA Joint Committee shall issue an annual report on the functioning and the
development of this Agreement.
Section 3
Parliamentary cooperation
Article 95
1. An EEA Joint Parliamentary Committee is hereby established. It shall be composed of equal
numbers of, on the one hand, members of the European Parliament and, on the other, members of
Parliaments of the EFTA States. The total number of members of the Committee is laid down in theStatute in Protocol 36.
2. The EEA Joint Parliamentary Committee shall alternately hold sessions in the Community
and in an EFTA State in accordance with the provisions laid down in Protocol 36.
3. The EEA Joint Parliamentary Committee shall contribute, through dialogue and debate, to a
better understanding between the Community and the EFTA States in the fields covered by thisAgreement.
4. The EEA Joint Parliamentary Committee may express its views in the form of reports or
resolutions, as appropriate. It shall, in particular, examine the annual report of the EEA Joint
Committee, issued in accordance with Article 94 (4), on the functioning and the development of thisAgreement.
5. The President of the EEA Council may appear before the EEA Joint Parliamentary
Committee in order to be heard by it.
6. The EEA Joint Parliamentary Committee shall adopt its rules of procedure.WT/REG138/1
Page 28
Section 4
Cooperation between economic and social partners
Article 96
1. Members of the Economic and Social Committee and other bodies representing the social
partners in the Community and the corresponding bodies in the EFTA States shall work to strengthen
contacts between them and to cooperate in an organized and regular manner in order to enhance the
awareness of the economic and social aspects of th e growing interdependence of the economies of the
Contracting Parties and of their interests within the context of the EEA.
2. To this end, an EEA Consultative Committee is hereby established. It shall be composed of
equal numbers of, on the one hand, members of the Economic and Social Committee of the
Community and, on the other, members of the EFTA Consultative Committee. The EEA Consultative
Committee may express its views in the form of reports or resolutions, as appropriate.
3. The EEA Consultative Committee shall adopt its rules of procedure.
CHAPTER 2
The Decision-Making Procedure
Article 97
This Agreement does not prejudge the right for each Contracting Party to amend, without
prejudice to the principle of non-discrimination and after having informed the other ContractingParties, its internal legislation in the areas covered by this Agreement:
- if the EEA Joint Committee concludes that the legislation as amended does not affect
the good functioning of this Agreement; or
- if the procedures referred to in Article 98 have been completed.
Article 98
The Annexes to this Agreement and Protocols 1 to 7, 9 to 11, 19 to 27, 30 to 32, 37, 39, 41
and 47, as appropriate, may be amended by a decision of the EEA Joint Committee in accordance
with Articles 93 (2), 99, 100, 102 and 103.
Article 99
1. As soon as new legislation is being drawn up by the EC Commission in a field which is
governed by this Agreement, the EC Commission shall informally seek advice from experts of theEFTA States in the same way as it seeks advice from experts of the EC Member States for the
elaboration of its proposals.
2. When transmitting its proposal to the C ouncil of the European Communities, the EC
Commission shall transmit copies thereof to the EFTA States.
At the request of one of the Contracting Parties, a preliminary exchange of views takes place
in the EEA Joint Committee.WT/REG138/1
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3. During the phase preceding the decision of the Council of the European Communities, in a
continuous information and consultation process, the Contracting Parties consult each other again in
the EEA Joint Committee at the significant moments at the request of one of them.
4. The Contracting Parties shall cooperate in good faith during the information and consultation
phase with a view to facilitating, at the end of the process, the decision-taking in the EEA Joint
Committee.
Article 100
The EC Commission shall ensure experts of the EFTA States as wide a participation as
possible according to the areas concerned, in the preparatory stage of draft measures to be submittedsubsequently to the committees which assist the EC Commission in the exercise of its executive
powers. In this regard, when drawing up draft measures the EC Commission shall refer to experts of
the EFTA States on the same basis as it refers to experts of the EC Member States.
In the cases where the Council of the European Communities is seized in accordance with the
procedure applicable to the type of committee involved, the EC Commission shall transmit to the
Council of the European Communities the views of the experts of the EFTA States.
Article 101
1. In respect of committees which are covered neither by Article 81 nor by Article 100 experts
from EFTA States shall be associated with the work when this is called for by the good functioning of
this Agreement.
These committees are listed in Protocol 37. The modalities of such an association are set out
in the relevant sectoral Protocols and Annexes dealing with the matter concerned.
2. If it appears to the Contracting Parties that such an association should be extended to other
committees which present similar characteristics, the EEA Joint Committee may amend Protocol 37.
Article 102
1. In order to guarantee the legal security and the homogeneity of the EEA, the EEA Joint
Committee shall take a decision concerning an amendment of an Annex to this Agreement as closely
as possible to the adoption by the Community of the corresponding new Community legislation with a
view to permitting a simultaneous application of the latter as well as of the amendments of the
Annexes to the Agreement. To this end, the Community shall, whenever adopting a legislative act onan issue which is governed by this Agreement, as soon as possible inform the other Contracting
Parties in the EEA Joint Committee.
2. The part of an Annex to this Agreement which would be directly affected by the new
legislation is assessed in the EEA Joint Committee.
3. The Contracting Parties shall make all efforts to arrive at an agreement on matters relevant to
this Agreement.
The EEA Joint Committee shall, in particular, make every effort to find a mutually acceptable
solution where a serious problem arises in any area which, in the EFTA States, falls within the
competence of the legislator.WT/REG138/1
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4. If, notwithstanding the application of the preceding paragraph, an agreement on an
amendment of an Annex to this Agreement cannot be reached, the EEA Joint Committee shall
examine all further possibilities to maintain the good functioning of this Agreement and take any
decision necessary to this effect, including the possibility to take notice of the equivalence of
legislation. Such a decision shall be taken at the latest at the expiry of a period of six months from thedate of referral to the EEA Joint Committee or, if that date is later, on the date of entry into force of
the corresponding Community legislation.
5. If, at the end of the time limit set out in paragraph 4, the EEA Joint Committee has not taken a
decision on an amendment of an Annex to this Agreem ent, the affected part thereof, as determined in
accordance with paragraph 2, is regarded as provisionally suspended, subject to a decision to the
contrary by the EEA Joint Committee. Such a suspension shall take effect six months after the end ofthe period referred to in paragraph 4, but in no event earlier than the date on which the corresponding
EC act is implemented in the Community. The EEA Joint Committee shall pursue its efforts to agree
on a mutually acceptable solution in order for the suspension to be terminated as soon as possible.
6. The practical consequences of the suspension referred to in paragraph 5 shall be discussed in
the EEA Joint Committee. The rights and obligations which individuals and economic operators have
already acquired under this Agreement shall remain. The Contracting Parties shall, as appropriate,
decide on the adjustments necessary due to the suspension.
Article 103
1. If a decision of the EEA Joint Committee can be binding on a Contracting Party only after the
fulfilment of constitutional requirements, the decision shall, if a date is contained therein, enter into
force on that date, provided that the Contracting Party concerned has notified the other Contracting
Parties by that date that the constitutional requirements have been fulfilled.
In the absence of such a notification by that date, the decision shall enter into force on the first
day of the second month following the last notification.
2. If upon the expiry of a period of six months after the decision of the EEA Joint Committee
such a notification has not taken place, the decision of the EEA Joint Committee shall be applied
provisionally pending the fulfilment of the constitutional requirements unless a Contracting Partynotifies that such a provisional application cannot take place. In the latter case, or if a Contracting
Party notifies the non-ratification of a decision of the EEA Joint Committee, the suspension provided
for in Article 102 (5) shall take effect one month after such a notification but in no event earlier than
the date on which the corresponding EC act is implemented in the Community.
Article 104
Decisions taken by the EEA Joint Committee in the cases provided for in this Agreement
shall, unless otherwise provided for therein, upon th eir entry into force be binding on the Contracting
Parties which shall take the necessary steps to ensure their implementation and application.WT/REG138/1
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CHAPTER 3
Homogeneity, Surveillance Procedure
and Settlement of Disputes
Section 1
Homogeneity
Article 105
1. In order to achieve the objective of the Contracting Parties to arrive at as uniform an
interpretation as possible of the provisions of the Agreement and those provisions of Community
legislation which are substantially reproduced in the Agreement, the EEA Joint Committee shall act in
accordance with this Article.
2. The EEA Joint Committee shall keep under constant review the development of the case law
of the Court of Justice of the European Communities and the EFTA Court. To this end judgments of
these Courts shall be transmitted to the EEA Joint Committee which shall act so as to preserve the
homogeneous interpretation of the Agreement.
3. If the EEA Joint Committee within two months after a difference in the case law of the two
Courts has been brought before it, has not succeeded to preserve the homogeneous interpretation of
the Agreement, the procedures laid down in Article 111 may be applied.
Article 106
In order to ensure as uniform an interpretation as possible of this Agreement, in full deference
to the independence of courts, a system of exchange of information concerning judgments by the
EFTA Court, the Court of Justice of the European Communities and the Court of First Instance of the
European Communities and the Courts of last instance of the EFTA States shall be set up by the EEA
Joint Committee. This system shall comprise:
(a) transmission to the Registrar of the Court of Justice of the European Communities of
judgments delivered by such courts on the interpretation and application of, on the
one hand, this Agreement or, on the other hand, the Treaty establishing the European
Economic Community and the Treaty establishing the European Coal and Steel
Community, as amended or supplemented, as well as the acts adopted in pursuance
thereof in so far as they concern provisions which are identical in substance to thoseof this Agreement;
(b) classification of these judgments by the Registrar of the Court of Justice of the
European Communities including, as far as necessary, the drawing up and publication
of translations and abstracts;
(c) communications by the Registrar of the Court of Justice of the European
Communities of the relevant documents to the competent national authorities, to be
designated by each Contracting Party.WT/REG138/1
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Article 107
Provisions on the possibility for an EFTA State to allow a court or tribunal to ask the Court of
Justice of the European Communities to decide on th e interpretation of an EEA rule are laid down in
Protocol 34.
Section 2
Surveillance procedure
Article 108
1. The EFTA States shall establish an independent surveillance authority (EFTA Surveillance
Authority) as well as procedures similar to those existing in the Community including procedures for
ensuring the fulfilment of obligations under this Agreement and for control of the legality of acts of
the EFTA Surveillance Authority regarding competition.
2. The EFTA States shall establish a court of justice (EFTA Court).
The EFTA Court shall, in accordance with a separate agreement between the EFTA States,
with regard to the application of this Agreement be competent, in particular, for:
(a) actions concerning the surveillance procedure regarding the EFTA States;
(b) appeals concerning decisions in the field of competition taken by the EFTA
Surveillance Authority;
(c) the settlement of disputes between two or more EFTA States.
Article 109
1. The fulfilment of the obligations under this Agreement shall be monitored by, on the one
hand, the EFTA Surveillance Authority and, on the other, the EC Commission acting in conformity
with the Treaty establishing the European Ec onomic Community, the Treaty establishing the
European Coal and Steel Community and this Agreement.
2. In order to ensure a uniform surveillance throughout the EEA, the EFTA Surveillance
Authority and the EC Commission shall cooperate, exchange information and consult each other on
surveillance policy issues and individual cases.
3. The EC Commission and the EFTA Surveillance Authority shall receive any complaints
concerning the application of this Agreement. They  shall inform each other of complaints received.
4. Each of these bodies shall examine all complaints falling within its competence and shall pass
to the other body any complaints which fall within the competence of that body.
5. In case of disagreement between these two bodies with regard to the action to be taken in
relation to a complaint or with regard to the result  of the examination, either of the bodies may refer
the matter to the EEA Joint Committee which shall deal with it in accordance with Article 111.WT/REG138/1
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Article 110
Decisions under this Agreement by the EFTA Surveillance Authority and the EC Commission
which impose a pecuniary obligation on persons other than States, shall be enforceable. The same
shall apply to such judgments under this Agreement by the Court of Justice of the EuropeanCommunities, the Court of First Instance of the European Communities and the EFTA Court.
Enforcement shall be governed by the rules of civil procedure in force in the State in the
territory of which it is carried out. The order for its enforcement shall be appended to the decision,
without other formality than verification of the authenticity of the decision, by the authority which
each Contracting Party shall designate for this purpose and shall make known to the other Contracting
Parties, the EFTA Surveillance Authority, the EC Commission, the Court of Justice of the EuropeanCommunities, the Court of First Instance of the European Communities and the EFTA Court.
When these formalities have been completed on application by the party concerned, the latter
may proceed to enforcement, in accordance with the law of the State in the territory of which
enforcement is to be carried out, by bringing the matter directly before the competent authority.
Enforcement may be suspended only by a decision of the Court of Justice of the European
Communities, as far as decisions by the EC Commission, the Court of First Instance of the European
Communities or the Court of Justice of the European Communities are concerned, or by a decision of
the EFTA Court as far as decisions by the EFTA Surveillance Authority or the EFTA Court areconcerned. However, the courts of the States concerned shall have jurisdiction over complaints that
enforcement is being carried out in an irregular manner.
Section 3
Settlement of disputes
Article 111
1. The Community or an EFTA State may bring a matter under dispute which concerns the
interpretation or application of this Agreement before the EEA Joint Committee in accordance with
the following provisions.
2. The EEA Joint Committee may settle the dispute. It shall be provided with all information
which might be of use in making possible an inde pth examination of the situation, with a view to
finding an acceptable solution. To this end, the EEA Joint Committee shall examine all possibilities to
maintain the good functioning of the Agreement.
3. If a dispute concerns the interpretation of provisions of this Agreement, which are identical in
substance to corresponding rules of the Treaty establishing the European Economic Community and
the Treaty establishing the European Coal and Steel Community and to acts adopted in application of
these two Treaties and if the dispute has not been settled within three months after it has been broughtbefore the EEA Joint Committee, the Contracting Parties to the dispute may agree to request the Court
of Justice of the European Communities to give a ruling on the interpretation of the relevant rules.
If the EEA Joint Committee in such a dispute has not reached an agreement on a solution
within six months from the date on which this procedure was initiated or if, by then, the ContractingParties to the dispute have not decided to ask for a ruling by the Court of Justice of the European
Communities, a Contracting Party may, in order to remedy possible imbalances,WT/REG138/1
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- either take a safeguard measure in accordance with Article 112(2) and following the
procedure of Article 113;
- or apply Article 102 mutatis mutandis.
4. If a dispute concerns the scope or duration of safeguard measures taken in accordance with
Article 111(3) or Article 112, or the proportionality of rebalancing measures taken in accordance with
Article 114, and if the EEA Joint Committee after three months from the date when the matter has
been brought before it has not succeeded to resolv e the dispute, any Contracting Party may refer the
dispute to arbitration under the procedures laid down in Protocol 33. No question of interpretation of
the provisions of this Agreement referred to in pa ragraph 3 may be dealt with in such procedures. The
arbitration award shall be binding on the parties to the dispute.
CHAPTER 4
Safeguard Measures
Article 112
1. If serious economic, societal or environmental difficulties of a sectorial or regional nature
liable to persist are arising, a Contracting Party may unilaterally take appropriate measures under the
conditions and procedures laid down in Article 113.
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 Agreement.
3. The safeguard measures shall apply with regard to all Contracting Parties.
Article 113
1. A Contracting Party which is considering taking safeguard measures under Article 112 shall,
without delay, notify the other Contracting Parties through the EEA Joint Committee and shall
provide all relevant information.
2. The Contracting Parties shall immediately enter into consultations in the EEA Joint
Committee with a view to finding a commonly acceptable solution.
3. The Contracting Party 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 2 has been concluded before the expiration of the stated time limit. When exceptional
circumstances requiring immediate action exclude prior examination, the Contracting Party concerned
may apply forthwith the protective measures strictly necessary to remedy the situation.
For the Community, the safeguard measures shall be taken by the EC Commission.
4. The Contracting Party concerned shall, without delay, notify the measures taken to the EEA
Joint Committee and shall provide all relevant information.
5. The safeguard measures taken shall be the subject of consultations in the EEA Joint
Committee 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.WT/REG138/1
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Each Contracting Party may at any time request the EEA Joint Committee to review such
measures.
Article 114
1. If a safeguard measure taken by a Contracting Party creates an imbalance between the rights
and obligations under this Agreement, any other Contracting Party may towards that Contracting
Party take such proportionate rebalancing measures as are strictly necessary to remedy the imbalance.
Priority shall be given to such measures as will least disturb the functioning of the EEA.
2. The procedure under Article 113 shall apply.
PART VIII
FINANCIAL MECHANISM
Article 115
With a view to promoting a continuous and balanced strengthening of trade and economic
relations between the Contracting Parties, as provid ed for in Article 1, the Contracting Parties agree
on the need to reduce the economic and social disparities between their regions. They note in this
regard the relevant provisions set out elsewhere in this Agreement and its related Protocols, includingcertain of the arrangements regarding agriculture and fisheries.
Article 116
A Financial Mechanism shall be established by the EFTA States to contribute, in the context
of the EEA and in addition to the efforts already deployed by the Community in this regard, to the
objectives laid down in Article 115.
Article 117
Provisions governing the Financial Mechanism are set out in Protocol 38.
PART IX
GENERAL AND FINAL PROVISIONS
Article 118
1. Where a Contracting Party considers that it would be useful in the interests of all the
Contracting Parties to develop the relations established by this Agreement by extending them to fields
not covered thereby, it shall submit a reasoned request to the other Contracting Parties within the EEA
Council. The latter may instruct the EEA Joint Committee to examine all the aspects of this requestand to issue a report.
The EEA Council may, where appropriate, take the political decisions with a view to opening
negotiations between the Contracting Parties.
2. The agreements resulting from the negotiations referred to in paragraph 1 will be subject to
ratification or approval by the Contracting Parties in accordance with their own procedures.WT/REG138/1
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Article 119
The Annexes and the acts referred to therein as adapted for the purposes of this Agreement as
well as the Protocols shall form an integral part of this Agreement.
Article 120
Unless otherwise provided in this Agreement and in particular in Protocols 41 and 43, the
application of the provisions of this Agreement shall prevail over provisions in existing bilateral or
multilateral agreements binding the European Economic Community, on the one hand, and one or
more EFTA States, on the other, to the extent that the same subject matter is governed by this
Agreement.6
Article 121
The provisions of this Agreement shall not preclude cooperation :
(a) within the framework of the Nordic coope ration to the extent that such cooperation
does not impair the good functioning of this Agreement;
(b) within the framework of the regional union between Switzerland and Liechtenstein to
the extent that the objectives of this union are not attained by the application of thisAgreement and the good functioning of this Agreement is not impaired;
(c) within the framework of cooperation between Austria and Italy concerning Tyrol,
Vorarlberg and Trentino –South Tyrol/Alto Adige, to the extent that such cooperation
does not impair the good functioning of this Agreement.
Article 122
The representatives, delegates and experts of the Contracting Parties, as well as officials and
other servants acting under this Agreement 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 123
Nothing in this Agreement shall prevent a Contracting Party 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 indispensable for defence purposes or to research, development orproduction indispensable for defence purposes, provided that such measures do not
impair the conditions of competition in respect of products 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
                                                     
6 Words “Protocols 41, 43 and 44” replaced by words “Protocols 41 and 43” by the Adjusting Protocol.WT/REG138/1
Page 37
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.
Article 124
The Contracting Parties shall accord nationals of EC Member States and EFTA States the
same treatment as their own nationals as regards pa rticipation in the capital of companies or firms
within the meaning of Article 34, without prejudice to the application of the other provisions of this
Agreement.
Article 125
This Agreement shall in no way prejudice the rules of the Contracting Parties governing the
system of property ownership.
Article 126
1. The Agreement shall apply to the territories to which the Treaty establishing the European
Economic Community and the Treaty establishing the European Coal and Steel Community is applied
and under the conditions laid down in those Treaties, and to the territories of the Republic of Austria,
the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of
Norway and the Kingdom of Sweden.7
2. Notwithstanding paragraph 1, this Agreement shall not apply to the Åland Islands. TheGovernment of Finland may, however, give notice, by a declaration deposited when ratifying this
Agreement with the Depositary, which shall transmit a certified copy thereof to the Contracting
Parties, that the Agreement shall apply to those Islands under the same conditions as it applies to otherparts of Finland subject to the following provisions :
(a) The provisions of this Agreement shall not preclude the application of the provisions
in force at any given time on the Åland Islands on :
(i) restrictions on the right for natural persons who do not enjoy regional
citizenship in Åland, and for legal persons, to acquire and hold real propertyon the Åland Islands without permission by the competent authorities of the
Islands;
(ii) restrictions on the right of establishment and the right to provide services by
natural persons who do not enjoy regional citizenship in Åland, or by anylegal person, without permission by the competent authorities of the Åland
Islands.
(b) The rights enjoyed by Ålanders in Finland shall not be affected by this Agreement.
(c) The authorities of the Åland Islands shall apply the same treatment to all natural and
legal persons of the Contracting Parties.
                                                     
7 Words “the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation” replaced by
words “the Kingdom of Norway and the Kingdom of Sweden” by the Adjusting Protocol.WT/REG138/1
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Article 127
Each Contracting Party may withdraw from this Agreement provided it gives at least twelve
months' notice in writing to the other Contracting Parties.
Immediately after the notification of the intended withdrawal, the other Contracting Parties
shall convene a diplomatic conference in order to envisage the necessary modifications to bring to the
Agreement.
Article 128
1. Any European State becoming a member of the Community shall, and the Swiss
Confederation or any European State becoming a me mber of EFTA may, apply to become a party to
this Agreement. It shall address its application to the EEA Council.8
2. The terms and conditions for such participation shall be the subject of an agreement between
the Contracting Parties and the applicant State. That agreement shall be submitted for ratification orapproval by all Contracting Parties in accordance with their own procedures.
Article 129
1. This Agreement is drawn up in a single original in the Danish, Dutch, English, Finnish,
French, German, Greek, Icelandic, Italian, Norweg ian, Portuguese, Spanish and Swedish languages,
each of these texts being equally authentic.
The texts of the acts referred to in the Annexes are equally authentic in Danish, Dutch,
English, French, German, Greek, Italian, Portuguese and Spanish as published in the Official Journalof the European Communities and shall for the authentication thereof be drawn up in the Finnish,
Icelandic, Norwegian and Swedish languages.
2. This Agreement shall be ratified or approved by the Contracting Parties in accordance with
their respective constitutional requirements.
It shall be deposited with the General Secretariat of the Council of the European Communities
by which certified copies shall be transmitted to all other Contracting Parties.
The instruments of ratification or approval shall be deposited with the General Secretariat of
the Council of the European Communities which shall notify all other Contracting Parties.
3. This Agreement shall enter into force on the date and under the conditions provided for in the
Protocol Adjusting the Agreement on the European Economic Area.
9
IN WITNESS WHEREOF the undersigned Plenipotentiaries have signed this Agreement.
DONE at Oporto on the second day of May in the year one thousand nine hundred and ninety-
two.
__________
                                                     
8 Paragraph replaced by the Adjusting Protocol.
9 Paragraph replaced by the adjusting Protocol.