WORLD TRADE  
ORGANIZATION  WT/REG138/2 
28 October 2002 
 (02-5916) 
Committee on Regional Trade Agreements Original:   English 
 
  
EUROPEAN ECONOMIC AREA 
 
Joint Communication from the European  Communities and its Member States 
 
and the Kingdom of Norway, the Republic of Iceland and the Principality of Liechtenstein  
  
 The following joint communication has been received from the delegations of the European 
Communities and their Member States and the Kingdom of Norway, the Republic of Iceland and the 
Principality of Liechtenstein.  This joint communication constitutes the notification of the Agreement 
establishing the European Econ omic Area ("EEA") concluded between the European Communities 
and their Member States, and the Kingdom of Norway , the Republic of Iceland and the Principality of 
Liechtenstein. 
_______________ 
 
 Pursuant to Article V paragraph 7(a) of the GATS, the European Communities and their 
Member States, on the one part, and The Kingdom of Norway, the Republic of Iceland and the Principality of Liechtenstein, on the other part, here by notify the "economic integration agreement" as 
instituted by the EEA concluded between themse lves.  This notification follows the formal 
notification already submitted and is made in accord ance with the "standard format for information on 
economic integration agreements on services” as taken note of by the Committee on Regional Trade 
Agreements at its meeting on 2 May 1997.  
 
 To facilitate the examination by the Members, th e relevant provisions on trade in services in 
this agreement have been identified in the notif ication. The full text of the Agreement on the 
European Economic Area where these provisions can be  found, in their original version, are available 
at the WTO Secretariat.  This agreement is publ ished in the Official Journal of the European 
Communities (L 1, Volume 37, 3 January 1994) an d in the Proposition No. 100 (1991-92) to the 
Norwegian Storting (Parliament) on consent to ratifica tion (ratified on 19 November 1992), and in the 
Stjornartidindi (the Law and Ministerial Gazette of Iceland), C, No. 31, 20 December 1993 and in the 
Liechtensteinisches Landesgesetzblatt, No. 68/1995 of 28 April 1995.  Further information is also 
available at the following web site: www.efta.int. 
 
 
I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership and Dates of Signature, Ratification and Entry into Force 
 The EEA establishes an association betwee n the European Communities and their Member 
States, acting within the framework of the European Union, of the one part, and the Kingdom of 
Norway, the Republic of Iceland and the Principa lity of Liechtenstein, of the other part. The 
agreement entered into force on 1 January 1994. The EEA was signed on 2 May 1992. 
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 2. Type of Agreement 
 The EEA is the basic legal instrument of the re lationship between the EU, of the one part, and 
the Kingdom of Norway, the Republic of Iceland a nd the Principality of Liechtenstein, of the other 
part. It establishes gradually a free trade area between the EU and the Kingdom of Norway, the 
Republic of Iceland and the Prin cipality of Liechtenstein, provides for a legal approximation and 
various other areas of cooperation.  No new cust oms duties or quantitative  restrictions can be 
introduced in trade between th e European Union and the Kingdom of Norway, the Republic of 
Iceland and the Principality of Liechtenstein from th e date of entry into force of the Agreement. The 
EEA provides for progressive alignment with Comm unity rules as well as a number of specific 
provisions in such areas as capital movement, rule s of competition, intellectual and industrial property 
rights and public procurement.  
 3. Scope 
 As regards the services sectors, the EEA covers in principle all services sectors and all modes 
of delivery (see II.b below).   
4. Economic and Trade Data 
 See available data from Eurostat. 
  II. PROVISIONS AFFECTING TRADE IN SERVICES 
1. (a) Provisions in the EEA which are Relevant to the Scope of the GATS:   
− Part I – Objectives and principles: : see Artic les 1 to 7 and, in particular, Articles 3 
and 4, which oblige the Contracting Parties (see Article 2 (c)) to take all appropriate 
measures, whether general or particular, to  fulfil the objectives of the Agreement and 
to prohibit, without prejudice to any special provisions contained therein, any 
discrimination on grounds of nationality; 
 
− Part III – Free movement of persons, services  and capital, in par ticular: Articles 28 to 
30 (workers and self-employed persons), 31 to 35 (right of establishment), 36 to 
39 (supply of services without establishment), 40 to 45 (capital), 47 to 52 (transport); 
 
− Part IV – Competition and othe r common rules, in particul ar Articles 53 to 60 (rules 
applicable to undertakings), 61 to 64 (sta te aid), 65 (other common rules concerning 
procurement and intellectual, industrial and commercial property); 
 
− Part V – Horizontal provisions relevant to the four freedoms; 
 
− Part VII – Institutional provisions; 
 
− Part IX – General and final provisions. 
  (b) These provisions of the EEA constitute an agreement liberalising trade in services 
between the European Communities and their Member States, on the one part, the 
Kingdom of Norway, the Republic of Iceland and the Principality of Liechtenstein, of 
the other part, in the sense of Article V, paragraph 1, given that: 
  WT/REG138/2 
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 − it provides for universal sectoral coverage of  all service activities, subject only to the 
exceptions provided for under Articles 32 and 33, which are fully consistent with the 
exceptions provided for under Articles I 3(b), XIV and XIV bis of the GATS; 
 
− it provides for the liberalisation of trade th rough all modes of supply: "cross border" 
trade, "consumption abroad",  "commercial presence" (wit h or without movement of 
natural persons) as well as "p resence of natural persons" (see in particular Articles 28, 
30, 31, 34, 36, 37, 41, 47 and 48); 
 
− it provides for the absence or elimination of substantially all discrimination through 
elimination of existing discriminatory m easures and prohibition of new or more 
discriminatory measures (see inter alia  Articles 28, 31, 36, 48 and 50); 
 
− the degree of liberalisation of trade in  services between the Community and its 
Member States, on the one part, and the Kingdom of Norway, the Republic of Iceland 
and the Principality of Liechtenstein, of th e other part, goes beyond the requirements 
and disciplines of the GATS in many resp ects. To achieve full national treatment, 
additional disciplines and means of liberal isation are foreseen such as: mutual 
recognition of qualifications;  approximation of laws; behaviour of monopolies and 
exclusive service providers;  restrictive business practices and payments, transfers 
and free movement of capital. 
 
 (c) Consideration should also be given, pursuant to Article V paragraph 2 of GATS, to 
the relationship of this agreement to the wider process of economic integration 
between the European Communities and their Member States, on the one part, and the 
Kingdom of Norway, the Republic of Icelan d and the Principality of Liechtenstein, 
on the other part, provided for under the EEA.  Economic integration is not only 
taking place in the field of services, but also in respect of trade in goods and in 
economic relations in general.  
 
 (d) The European Communities and their Member States, on the one part, and the 
Kingdom of Norway, the Republic of Icelan d and the Principality of Liechtenstein, 
on the other part, have negotiated their Sche dule of Specific Commitments and list of 
MFN exemptions during the Uruguay Round. The entry into force of the EEA did not 
imply any modification or amendment in these lists. The EEA aims at facilitating trade between the Parties. No provisions of  the EEA aims at raising the level of 
restrictions of trade in services in respect of any other WTO Member. 
 2. Rules of Origin 
 Companies or firms formed in accordance with the law of an EU Member State or of the 
Kingdom of Norway, the Republic of Iceland and the Principality of Liechtenstein and having their 
registered office, central administration or princi pal place of business within the territory of the 
Contracting Parties are treated, for the purposes of the Agreement, in the same  way as natural persons 
who are nationals of EU Member States or of the Kingdom of Norway, the Republic of Iceland and 
the Principality of Liechtenstein (Article 34). 
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 3. Standards/Recognition 
 The EEA foresees measures necessary for mutual  recognition of qualif ications (Article 47) 
and to achieve Parties’ full co nformity with Community techni cal regulations and European 
standardisation and conformity asse ssment procedures (Article 75). 
 
4. Safeguards 
 The EEA has provisions for balance-of-payment s difficulties in the Community or in The 
Kingdom of Norway, the Republic of Iceland and the Pr incipality of Liechtenstein (Article 43 .(4)). It 
also provides for the possibilities for a Party to take measures in case of serious economic, social or 
environmental difficulties, which are examined by the joint bodies (Article 112). Such provisions 
have only been applied with regard to goods and movement of persons. 
 5. Subsidies and State-aid 
 Articles 61 to 64 contain a number of provisions as regards subsidies and State aids. It 
contains inter alia  a general prohibition of any public aid that distorts or threatens to distort 
competition by favouring certain undert akings or certain products.  Any practices contrary to this rule 
shall be assessed on the basis of criteria arising fr om the application of the rules of Article 87 (ex-
Article 92) of the Treaty establishi ng the European Community.  In applying this provision, the 
parties recognise that during the first five years after the entry into force of the EEA, any public aid 
granted by the Kingdom of Norway, the Republic of  Iceland and the Principality of Liechtenstein 
shall be assessed taking into account the fact that the Kingdom of Norway, the Republic of Iceland 
and the Principality of Liec htenstein shall be regarded as an ar ea identical to those areas of the 
Community described in Article 87( 3)(a) of the Treaty establishing the European Community.  In 
addition, special implementing rules on State aid shall be developed to implement the above- 
mentioned provisions.  These rules are currently in the process of being adopted.  Each party shall 
ensure transparency in the area of  State aid.  
6. Government Procurement 
 Article 65 contains provisions on the applic ation of EU rules on public procurement, 
including non-discrimination.  
 
 
III. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions and Reservations 
 Exceptions are provided for under Articles 33 (public policy, security and health) and 123 
(security).  
2. Accession 
 The EEA provides that any State becoming a memb er of the EU shall, and any State joining 
the EFTA may, also become a Party to the EEA. 
 3. Dispute Settlement Procedures 
 Each of the parties may refer to the EE A Joint Committee any dispute relating to the 
application or interpretation of the EEA. The Join t Committee may settle the dispute by means of a 
decision, which will be binding for each party (Article 111).  WT/REG138/2 
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 4. Relations with other Trade Agreements 
 'In accordance with Article 121 of the EEA Agre ement, in conjunction with Decision 1/95 of 
the EEA Council, the Customs Treaty dated 29 Marc h 1923 between the Principality of Liechtenstein 
and the Swiss Confederation, as amended on 2 Nove mber 1994, remains in force parallel with the 
EEA Agreement.'  
 
5. Institutional Framework 
 The EEA provides for a cycle of annual meetings of the EEA Council (ministerial level) and 
the Joint Committee (representatives of the Parties). The EEA institutions ensure the evaluation of the 
functioning of the EEA and in particular decides on the modification of the annexes to take into 
account the legislative developments in the Euro pean Community. Exchanges between the European 
Parliament and the Parliaments of the Kingdom of Norway, the Republic of Iceland and the 
Principality of Liechtenstein are taking place within a Joint Parliamentary Committee  that meets at 
least twice a year. 
  
IV. OTHER 
 The full text of the agreement is available from: 
 
 - the WTO Secretariat; 
 - the European Commission; 
 - the Kingdom of Norway; 
 - the Republic of Iceland 
 - the Principality of Liechtenstein. 
 
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