WORLD TRADE WT/REG21/3
26September 1997
ORGANIZATION(97-4015)
Original: English Committee onRegional Trade Agreements
AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE
FAROE ISLANDS (GOVERNMENT OFDENMARK)
Communication from theParties totheAgreement
Thefollowing texthasbeenreceived from theParties totheAgreement.
________________
I. BACKGROUND INFORMATION ONTHE AGREEMENT
1. Membership anddates ofsignature, ratification andentry intoforce
TheAgreement wasconcluded between theEuropean Community, oftheonepart,andthe
Government ofDenmark andtheHome Government oftheFaroe Islands, oftheother part.
Itwassigned on6December 1996 andentered intoforce on1January 1997.
2. Type ofagreement
Freetrade agreement.
3. Scope
Allindustrial products, certain fishandfishery products, aswellascertain agricultural and
processed agricultural products (other thanfish)arecovered bytheAgreement. Forfurther details:
seetheproduct codes listed inProtocols 1,2and4totheAgreement.
Articles 35and36provide forthepossibility toextend theAgreement toother fields orto
other specific products.
4. Trade data
Dataconcerning imports intotheECfrom theFaroe Islands, aswellasconcerning exports
from theECtotheFaroe Islands concerning theyears 1993, 1994, 1995, andthefirstninemonths
of1996areattached. Analysis of1994figures suggests thataround 90percentofallFaroese products
areimported intotheCommunity freeofduty, andaround 99percentofallCommunity products
areimported intotheFaroe Islands freeofduty. Onthisbasis, using 1996 figures, 92.6percentof
two-way trade isconducted dutyfree. These figures areconservative, astheydonotreflect themore
liberal provisions ofone1996 agreement.WT/REG21/3
Page2
Noestimates ontrade-creating effects areavailable. TheAgreement should have no
trade-diverting effects.
II. TRADE PROVISIONS
1. Import restrictions
(a) Duties andcharges
Intheintra-trade ofproducts covered bytheAgreement, customs duties havebeenabolished.
Forcertain fishandfishery products, aswellasfortheagricultural products covered bytheAgreement,
thepreferential dutyrateat0percentissubject totariff quotas, tariff ceilings, ortoastatistical
surveillance .Preferential Faroe exports offishandfisheries products totheEUissubject tothose
exports entering theEUwithafree-at-frontier price which isatorabove reference prices fixed by
theEUauthorities onanannual basis.
(b) Quantitative restrictions
According toArticle 13(2),quantitative restrictions onimports havebeenabolished.
(c) Common external tariff
Notapplicable.
2. Export restrictions
Nil.
3. Rules oforigin
Thegeneral criteria usedforthepurpose ofdetermining theorigin ofproducts arewholly
obtained orsufficiently worked orprocessed. Thelistofworking ofprocessing required tobecarried
outonnon-originating materials inorder thattheproduct manufactured canobtain originating status
aresetoutinAnnex IItoProtocol 3totheAgreement subject totransitional arrangements until
21December 1997.
4. Standards
Nospecific provisions concerning technical, sanitary orphytosanitary standards areprovided
forunder theAgreement.
5. Safeguards
According toArticle 26oftheAgreement, aContracting Party maytakeappropriate measures
where anincrease inimports ofagiven product isseriously detrimental toanyproduction activity
carried onintheterritory ofoneoftheContracting Parties andwhere thisincrease isduetoadifference
intheduties applicable.
According toArticle 28oftheAgreement, aContracting Party maytakeappropriate measures
ifserious disturbances ariseinanysector oftheeconomies orifdifficulties arisewhich could bring
about serious deterioration intheeconomic situation ofaregion.WT/REG21/3
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According toArticle 30oftheAgreement, thenecessary safeguard measures maybetaken
incaseofbalance ofpayments difficulties.
6. Anti-dumping andcountervailing measures
According toArticle 27oftheAgreement, anti-dumping measures maybetaken inaccordance
withtheAgreement onimplementation ofArticle VIoftheGATT 1994.
7. Subsidies
According toArticle 25(1)oftheAgreement, anypublic aidwhich distorts orthreatens to
distort competition byfavouring certain undertakings ortheproduction ofcertain goods isincompatible
withtheproper functioning oftheAgreement andmayjustify appropriate measures.
8. Sector-specific provisions
Apart from thespecific provisions concerning certain fishandfishery products, andcertain
agricultural andprocessed agricultural products (other thanfish), theAgreement contains nospecific
provisions applicable totrade inindividual sectors, other thanareservation ofbothparties ’rights in
respect ofthepetroleum sector.
9. Other
Protocol 5totheAgreement laysdown theprovisions onmutual administrative assistance in
customs matters, inorder toensure thatthecustoms legislation iscorrectly applied, inparticular by
theprevention, detection andinvestigation ofoperations inbreach ofthatlegislation.
III. GENERAL PROVISIONS OFTHE AGREEMENT
1. Exceptions andreservations
Articles 22and23contain standard exceptions related toessential security interests anddefence
industries,publicmorality,lawandorderandpublicsecurity,theprotectionoflifeandhealthofhumans,
animals orplants, national treasures, industrial andcommercial property andgoldandsilver. Other
thansecurity anddefence, these exceptions mustnotbeusedsoastoconstitute ameans ofarbitrary
discrimination oradisguised restriction ontrade between theparties.
2. Accession
Notapplicable. Either party maydenounce theagreement withtwelve months ’notice.
3. Dispute settlement procedures
TheAgreement doesnotprovide foraspecific procedure forresolving disputes. TheJoint
Committee, responsible fortheadministration andtheproper implementation oftheAgreement
(cf.item5)shallactbymutual agreement.WT/REG21/3
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4. Relation withother trade agreements
According toArticle 40oftheAgreement, theprovisions ofthe1991tradeagreement between
theEuropean Community andDenmark/Faroe Islands, aswellastheprovisions ofthebilateral
agreements between Finland andSweden andtheFaroes, haveceased tobeinforce.
Separately, aJoint Declaration concerning areview oftheAgreement inkeeping withthe
development ofEC-EFTA traderelations provides thatiftheCommunity inthecontext oftheagreement
ontheEuropean Economic Area(EEA) grants concessions totheEEAcountries going beyond those
granted attheFaroe Islands inareas covered bytheEC-Faroe Agreement, theCommunity will,upon
request fromtheFaroes, consider positively onacase-by-case basistowhatextent andonwhatbasis
corresponding concessions could beoffered totheFaroe Islands.
Furthermore, theDeclaration provides thatifagreements orarrangements areconcluded by
theFaroe Islands andtheMember States ofEFTA whereby theFaroe Islands grants concessions to
EFTA countries going beyond those granted totheCommunity inareas covered bytheEC-Faroe
Agreement, theFaroe Islands will, upon request from theCommunity, consider positively ona
case-by-case basis towhat extent andonwhat basis corresponding concessions could beoffered to
theCommunity.
5. Institutional framework
AccordingtoArticle31oftheAgreement,aJointCommitteeisestablished,whichisresponsible
fortheadministrationoftheAgreementandforitsproperimplementation.Itcanmakerecommendations
andtakedecisions inthecases provided forintheAgreement. TheContracting Parties exchange
information andholdconsultations within theJoint Committee.
TheJoint Committee mayamend theprovisions ofeachoftheProtocols totheAgreement.
Anyrecommendation ordecision bytheJoint Committee istaken bymutual agreement.
IV. OTHER
Nil.WT/REG21/3
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ANNEX
EUExports toFaroe Islands
1993 1994 1995 1996 (Jan-Sept)
PRODUCT
(CN)VALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECU
TOTAL 89,831 99,573 127,829 115,714
01 1.47 0 0 0
02 2,548.48 2,125.9 2,333.24 2,150.08
03 1,207.28 1,699.34 754.62 4,769.94
04 1,846.69 1,607.84 2,039.88 1,541.85
05 38.26 76.98 64.43 1,567.17
06 233.07 226.8 248.98 143.01
07 650.14 745.65 866.54 657.61
08 374.69 440.15 430.6 235.77
09 97569 1,269.46 1,142.88 769.76
10 34.7 27.1 183.69 14.62
11 608.61 490.05 678.16 879.33
12 121.54 298.73 171.86 125.5
13 78.35 10.26 52.5 61.86
14 1.87 1.06 1.02 0
15 548.32 584.64 553.75 449.22
16 1,225.36 1,155.88 1,227.83 1,114.43
17 809.2 1,709.92 1,096.28 768.18
18 563.59 785.59 671.57 607.02
19 1,283.06 1,231.39 1,368.69 1,235.05
20 747.32 648.91 678.59 536.21
21 862.52 809.76 872.06 831.59
22 1,597.46 1,576.66 1,769.41 1,641.89
23 4,291.72 3,204.04 4381.13 3,209.49
24 1235.91 1,204.1 1,485.89 1,110.86
25 442.1 810.63 626.11 844.77
26 16.45 0.53 2.54 7.34
27 3,285.95 3,244.01 5,032.45 4,132.54
28 558.53 325.73 353.99 262.92
29 450.01 338.02 471.58 328.61
30 5,498.14 5,132.33 5,568.77 4,310.56
31 123.11 128.97 106.98 70.64
32 3106.49 2,578 3,580.78 3,276.24
33 721.27 804.76 654.33 643.17
34 843.38 853.91 848.55 716.95
35 212.25 230.54 394.85 252.51
36 12.2 84.36 86.77 44.06
37 473.88 467.18 440.19 290.74
38 227.03 278.67 487.17 255.01
39 2,773.63 2,822.45 3,269.1 2,855.62
40 893.3 1,168.32 1,440.54 1,019.79
41 119.3 1.32 0 0
42 97.76 112.7 218.84 122.03
43 1.83 14.83 1.27 0
44 1,873.75 1,427.59 2,693.63 2,584.07
45 14.36 8.89 9.21 4.94
46 15.29 2.2 3.09 12.48
47 0 15.04 18.31 19.62
48 5,112.74 5239.78 6272.53 4,558.23
49 3,865.55 3,718.49 4,148.52 2,883.56
50 2.04 3.83 2.02 0.13
51 124.77 318.21 229.71 160.07
52 66.31 59.51 140.03 110.39
53 2.59 2.38 4.89 0.04
54 46,35 24,87 61,47 109.04
55 47.27 40.1 77.92 78.51WT/REG21/3
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1993 1994 1995 1996 (Jan-Sept)
PRODUCT
(CN)VALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECU
56 1,212.45 1,234.3 1,802.28 1,147.13
57 95.46 119.61 105.9 155.86
58 8.92 6.93 20 107.6
59 98.32 67.46 105.23 30.98
60 49.99 32.27 19 12.46
61 1,152.55 1303.07 1500.9 934.66
62 1,244.11 1,749.51 1,864.09 1,583.95
63 214.47 268.9 395.84 250.81
64 618.79 669.39 905.5 694.85
65 6.88 38.78 36.71 43.91
66 0 0 2.21 2.37
67 1.15 5.98 16.39 7.07
68 429.07 263.41 325.57 402.42
69 157.37 177.95 471.88 172.75
70 414.22 244.65 349.59 266.15
71 62.71 56.7 282.22 97.16
72 624.25 685.33 984.7 593.76
73 3,502.08 3,188.24 3,631.52 4,227.82
74 149.04 165.77 173.5 178.58
76 784.01 601.16 877.91 951.16
78 15.82 18.12 20.89 30.83
79 35.56 40.05 27.08 27.49
80 1.07 0 0 0
81 2 6.54 21.55 5.27
82 255.71 195.87 337.47 261.24
83 422.74 484.22 506.8 455.78
84 10,888.2 11,724.56 17,545.33 17,431.94
85 4,439.51 9,233.84 7,234.6 6,029.23
86 13.23 168.03 42.21 62.28
87 2,160.99 3,292.33 13,111.93 12,549.87
88 356.62 349.7 135.44 141.16
89 63.11 103.83 348.45 1,381.11
90 2,454.35 3,509.86 3,183.8 2,253.77
91 74.45 28.4.3 394.89 32.52
92 239.67 48.98 175.75 41.46
93 35,86 24,25 46.22 30.07
94 2,410.32 2,257.64 2745.09 2427.15
95 498.72 914.47 1,007.13 646.32
96 269.33 228.35 369.27 161.16
97 179.18 206.58 75.6 95.64
99 1,276.42 3,670 6,300.8 2,257.76WT/REG21/3
Page7
EUImports from Faroe Islands
1993 1994 1995 1996 (Jan-Sept)
PRODUCT
(CN)VALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECU
TOTAL 274,186 244,357 234,043 223,345
01 0 4.91 0 0
02 9.73 1.33 6,76 2.36
03 237,003.4 218,051.84 199477,55 187,159.5
04 0 0 1,69 0
05 1387,77 1,615.55 2743,79 2,553.95
06 0 0 0 32.05
08 33.34 4.62 0 0
09 0 0 1,37 0
10 0 0 15,35 0
11 9.18 0 0 0
15 1,840.21 1,103.09 1577,89 2,705.12
16 15,585.71 8,405.46 8316,75 8,491.83
17 0 1.45 0 0
18 0 1.29 2,4 0
19 0 0 2,04 0
21 3.21 26.69 0 0
22 1.04 1.47 6,09 16.35
23 7,811.09 7,651.85 9143,9 12,311.95
24 16.57 2.09 0 0
25 0 1.26 0,79 0.02
27 78.44 0 1,37 0
28 1.3 0 0,84 0
29 3.32 0 38,13 1.36
30 2.24 20.14 3,59 17.69
31 435.95 0 0 0
32 5.37 0 0 0
33 0 57.72 0 0
34 113.57 128.94 162,15 96.08
37 0 0 2,68 0
38 3.57 0 1029,66 0
39 50.95 37.96 109,01 55.69
40 1.24 0 0,05 30.01
41 83.2 62.73 163,25 4.98
42 2.58 0 0 0
43 48.49 0 0 0
44 3.01 80.48 13,44 21.53
47 0 0 0,06 0
48 32.28 52.4 5,25 65.84
49 10.32 11.38 30,18 14.97
51 61 91.22 27,19 19.82
52 1.01 0 0 0
54 0 0 0 15.11
55 9.13 0 1,19 0
56 1.02 21.54 52,92 10.49
61 17.85 22.67 36,83 12.12
62 21.53 1.19 5,34 10.97
63 0.92 2.13 0 0
64 0 0.93 0 0
65 0 0 2,75 0
68 0 0.13 7,64 0
70 10.69 15.62 7,05 0
71 5.42 2.4 5,72 8.38
72 45.12 52.07 80,31 62.53
73 9.97 24.83 134,34 69.21WT/REG21/3
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1993 1994 1995 1996 (Jan-Sept)
PRODUCT
(CN)VALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECUVALUE
1,000 ECU
74 13.87 5.5 5,21 0.85
76 16.97 4.35 8,33 0
78 0 0.26 0,38 0.27
79 0 1.72 0 0
81 0 0 0 75.78
82 2.1 8.73 49,96 1.24
83 0 38.71 22,76 6.1
84 1,844.,52 525.07 808,6 1,277.3
85 278.23 296.44 579,21 363.49
87 66.08 167.23 450,49 165.25
88 113.32 35.9 56,83 13-05
89 922.71 260.98 94,37 3,493.09
90 449.49 1,613.82 375,69 159.84
91 0 0 29,18 0
92 6.59 0 16,6 21.56
93 0 0 2,03 0
94 10.28 162.46 113,9 24.45
95 32.3 0 4,57 7.22
96 0 0 0,54 0
97 527.15 1,119.87 965,55 898.15
99 5,141.71 2,556.29 7241,86 3,047.47