WT/REG355/2  
 
6 September  2016 
(16-4741) Page: 1/3 
Committee on Regional Trade Agreements  Original: English  
 
FREE TRADE AGREEMENT  BETWEEN ICELAND AND CHINA  
(GOODS AND SERVICES ) 
QUESTIONS AND REPLIE S 
 The following communication, dated 5 September 2016, is being circulated at the request of 
the delegations of Iceland and China.  
 
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 This document rep roduces the questions addressed to the Parties and the responses 
submitted.  
Question s from the delegation of the European Union  
 
Provisions on trade in goods  
Technical barriers to trade  
 
1.1.  According to the Factual Presentation, on conformity assessment proce dures, the 
Parties recognize the differences between their legal systems and agree to explore the 
possibilities of mutual recognition of conformity assessment procedures in accordance 
with the TBT Agreement; exchange information on their conformity assessm ent systems 
with a view to promoting the recognition of conformity assessment procedures between 
themselves.  
 Could the Parties give additional information on the concrete actions carried out to 
promote the recognition of conformity assessment procedures b etween themselves?  
 
 China and Iceland have exchanged information about respective legal systems on conformity 
assessment procedures, which paves the way for promoting the recognition of conformity 
assessment procedures between the parties.  
 
General provis ions of the agreement  
Intellectual property rights  
 
1.2.  Chapter 6 on IPR reaffirms the importance of IPRs in promoting economic and 
social development, particularly in the new digital economy, technological innovation 
and trade, and the need for a balance betw een the rights of IPR holders and the 
legitimate interests of users and the community with respect to protected subject 
matter.  
Could the Parties clarify whether the Agreement contains any specific provisions 
on the treatment of the cross -border data flow s? 
 
 There is no specific provision on the treatment of the cross -border data flows.  
 
1.3.  The Parties aim to further strengthen cooperation in IPRs including in the exchange 
of information, experience and views on issues of common concern relating to IPRs; 
exchange of information on the protection and enforcement of IPRs.  WT/REG355/2  
 
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   Could the Parties submit additional info rmation on the actions taken to  further 
strengthen cooperation in IPRs including in the exchange of information, in particular on 
the protection and en forcement of IPRs?  
 
 Both parties recogni ze the importance of IPRs in promoting economic and social 
development, as well as the need to achieve a balance between the rights of right holders and the 
legitimate interests of users and the community  with regar d to protected subject matter. Up to 
now, the cooperation in IPRs has been running well under the China -Iceland FTA. Specific 
mechanisms for further facilitating the cooperation, such as the contact points, would be created 
when necessary.  
 
Cooperation  
 
1.4.  According to the Factual Presentation, the Agreement contains also provisions on 
economic cooperation in the areas of labour and environment including in accordance 
with the Memorandum of Understanding on Environmental Protection Cooperation 
between the Sta te Environmental Protection Administration of the People's Republic of 
China and the Ministry of the Environment of Iceland.  
a. Could the Parties submit information on how they are cooperating in the areas 
of labour and environment? Have the Parties set up an y dedicated Committees?  
b. Could the Parties clarify what types of concrete cooperation activities are 
planned?  
c. Could the Parties also provide examples of such cooperation?  
 In 2005, China and Iceland have signed the Memorandum of Understanding on 
Environm ental Protection Cooperation (MOU). In the China and Iceland FTA, both parties have 
reiterated the willingness to further promote communication and cooperation according the MOU. 
All these actions have facilitated the personnel exchanges and information co mmunication between 
parties. China and Iceland are willing to promote the cooperation of labour and environment under 
the China -Iceland FTA, especially in the area of nature resource protection, environmental industry 
and technics, etc.  
 
Questions from the  delegation of Thailand  
 
1.5.  Paragraph 4.31 of the report indicated that "Under financial Services, while all 
China's commitments under the Agreement mirror those of the GATS", whereas all 
financial services are not scheduled in ACFTA. According to an effort o f China and ASEAN 
in upgrading ACFTA, why does China not give the commitment on those services to 
ASEAN similar to Iceland or at least equal to GATS?  
Response from the delegation of China  
 
 In the 2nd package of commitments under ASEAN – China FTA Trade in  Services, China has 
already given the commitment of financial services more than GATS.  
 
1.6.  Table 4.2 : "China: Sector -specific liberalization under the Agreement at national 
level, excluding mode 4" determine the commitments between China and Iceland in 
Trans portation Services which cover many services such as Maritime Transport Services, 
Internal Waterways Transpor t, Rail Transport Services, etc. Those services are not 
scheduled under the Agreement with ASEAN. Similar to the previous question, why does 
China not give the same commitment to ASAEN in order to promote Trade in Services 
and Investment?  
Response from the delegation of China  
 
 The services mentioned in the question have already been scheduled in the 2nd package of 
commitments under ASEAN – China FTA  Trade in Services.  
 
 WT/REG355/2  
 
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  Competition  
 
1.7.  Due to the fact that both parties will apply their respective la ws with a view to 
removing anti -competitive business conduct, how do both parties implement or remedy 
unfair competition, and prevent inappropriate business practices, such as price fixing 
conspiracies, market dominance, and the creation of monopoly power of private 
companies practically?  
Response from the delegation of China  
 
 For the Chinese side, the Standing Committee of the National People 's Congress is 
responsible for enacting and amending the Anti -monopoly law of China. The State Council is 
responsible for enacting and amending the anti -monopoly administrative regulations. The Ministry 
of Commerce (MOFCOM), the National Developing and Reform Commission ( NDRC) and the 
State  Administration for Industry and Commerce (SAIC) are responsible for enacting and 
amending the ministerial rules of the Anti -monopoly Law within the scope of their responsibilities.  
 
 MOFCOM is in charge of conducting anti -monopoly revi ew of the concentration of 
undertakings. NDRC and SAIC deal with specific issues related to the surveillance of monopoly 
agreements and the abuse of market dominance, etc.  
 
Response from the delegation o f Iceland  
 
 In Iceland, the Icelandic Competition Aut hority assumes the responsibility to promote 
effective competition in economic activities and thereby to increase the efficiency of the productive 
factors of society. It assumes its responsibility by opposing unreasonable barriers and restrictions 
on freed om in economic activities, by opposing harmful oligopolies and restriction of competition 
and by facilitating the entry of new competitors to the market.  
 
The role of the Competition Authority includes the following:  
 
• To enforce the requirements and proh ibitions of the Competition Act and to permit 
exceptions pursuant to the Competition Act ; 
• To decide on measures to be taken against anti -competitive behaviour  of 
 undertakings ; 
• To observe that measures taken by public entities do not restrict competiti on, and to 
indicate to the relevant authorities any means by which competition can be made 
more effective and the entry of new competitors into the market facilitated ; 
• To monitor the development of competition and trade practices in individual market 
sectors in Iceland and to investigate the management and ownership relations 
between undertakings . 
The supervisory work of the Competition Authority extends to all forms of business 
activities, regardless of whether such activities are conducted by individual s, companies, public 
entities or other parties.  
 
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