WT/REG322/1  
9 July 2013  
(13-3642)  Page: 1/60  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETW EEN HONG KONG, CHINA  
AND THE EFTA STATES 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Hong Kong, China and the EFTA States has been drawn up by the WTO Secretariat on 
its own responsibility and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264). Any statistical questions arising from this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 
 
            
 
        WT/REG322/1 
 
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  TABLE OF CONTENTS 
 
Page 
 
1   TRADE ENVIRONMENT ................................................................................................. 5  
1.1   Merchand ise trade ..................................................................................................... 5  
1.2   Trade in servic es and inve stment ................................................................................. 7  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 10  
2.1   Background  Information ............................................................................................ 10 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 11 
3.1.1   Genera l provisions ................................................................................................. 12 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 12 
3.1.2.1   Iceland ............................................................................................................. . 13 
3.1.2.2   Norway .............................................................................................................. 13 
3.1.2.3   Switzerland / Liechtenstein ................................................................................... 14 
3.1.2.4   Hong Kong, China ............................................................................................... 14 
3.1.3   Liberali zation schedule............................................................................................ 14 
3.1.3.1   EFTA ................................................................................................................ . 14 
3.1.3.2   Sw itzerland ........................................................................................................ 17 
3.1.3.3   Hong Kong, China ............................................................................................... 17 
3.1.4   Tariff rate quotas ................................................................................................... 17 
3.2   Rules of origin .......................................................................................................... 17 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 19 
3.4   Regulatory Provisions of the Agreement ....................................................................... 19 
3.4.1   Standards ............................................................................................................. 19 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 19 
3.4.1.2   Technical barriers to trade .................................................................................... 19 
3.4.2   Safeguard mechanisms ........................................................................................... 19 
3.4.2.1   Global safeguards ............................................................................................... 19 
3.4.2.2   Bilateral safeguards ............................................................................................. 20 
3.4.2.3   Othe r safeguards ................................................................................................ 21 
3.4.3   Anti-dumping and countervailing measures ............................................................... 21 
3.4.4   Subsidie s and State-aid .......................................................................................... 21 
3.4.5   Customs-re lated procedures .................................................................................... 22 
3.5   Sector-Specific Prov isions of the Agreement ................................................................. 23 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 23  
4.1   Scope and definition ................................................................................................. 23 
4.2   Denial of benefits ..................................................................................................... 24 
4.3   General provisions on trade in services ........................................................................ 24 
4.3.1   National and MFN tr eatment .................................................................................... 24 WT/REG322/1 
 
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  4.3.2   Mark et acce ss ....................................................................................................... 24 
4.3.3   Local Presence ...................................................................................................... 25 
4.3.4   Movement of  Natural Persons .................................................................................. 25 
4.3.5   Performanc e requirements ...................................................................................... 26 
4.3.6   Senior managers and board of direct ors .................................................................... 26 
4.4   Liberalization commitments ........................................................................................ 26 
4.4.1   Iceland's liber alization co mmitments ........................................................................ 27 
4.4.2   Liechtenstein's li beralization commitments ................................................................ 29 
4.4.3   Norway's libera lization co mmitments ........................................................................ 31 
4.4.4   Switzerland's libe ralization co mmitments................................................................... 34 
4.4.5   Hong Kong, China's liberalization commitments .......................................................... 36 
4.4.6   Sector specific commitm ents on trade in services ....................................................... 38 
4.4.6.2   Busi ness serv ices ................................................................................................ 38 
4.4.6.3   Communication services ....................................................................................... 38 
4.4.6.4   Construction and re lated engineerin g services ......................................................... 39 
4.4.6.5   Distribu tion serv ices ............................................................................................ 39 
4.4.6.6   Educat ional serv ices ............................................................................................ 39 
4.4.6.7   Environm ental services ........................................................................................ 39 
4.4.6.8   Financial services ................................................................................................ 39 
4.4.6.9   Health relate d and social servic es .......................................................................... 39 
4.4.6.10   Tourism and travel related services ...................................................................... 39 
4.4.6.11   Recreational, cultur al and sporting  services ........................................................... 40 
4.4.6.12   Transp ort serv ices ............................................................................................. 40 
4.5   Sector specific provisions in trade in services ................................................................ 40 
4.5.1   Financial services ................................................................................................... 40 
4.5.2   Telecommuni cation services .................................................................................... 41 
4.6   Regulatory provisions ................................................................................................ 41 
4.6.1   Domestic regulation ............................................................................................... 41 
4.6.2   Recognition ........................................................................................................... 42 
4.6.3   Subsidies .............................................................................................................. 42 
4.6.4   Tran sparen cy ........................................................................................................ 42 
4.6.5   Safeguards ........................................................................................................... 43 
4.6.6   Busine ss practices.................................................................................................. 43 
4.6.7   Monopolies and excl usive service suppliers ................................................................ 43 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 43  
5.1   Tran sparency ........................................................................................................... 43 
5.2   Current payments and capital movements .................................................................... 43 
5.3   Exceptions ............................................................................................................... 43 
5.4   Accession and Withdrawal .......................................................................................... 43 
5.5   Disput e settlement ................................................................................................... 44 WT/REG322/1 
 
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  5.6   Institutio nal framework ............................................................................................. 45 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 45 
5.8   Government  procurement .......................................................................................... 47 
5.9   Intellectual Property Rights ........................................................................................ 47 
5.10   Competition policy .................................................................................................. 48 
5.11   Other .................................................................................................................. .. 48 
5.11.1   Trade and environment ......................................................................................... 48 
5.11.2   Sustainable Development ...................................................................................... 48 
5.11.3   Provisions on investment....................................................................................... 48 
5.11.4   Labo ur matte rs .................................................................................................... 49 
ANNEX 1 ....................................................................................................................... . 51 
ANNEX 2 ....................................................................................................................... . 60 
 WT/REG322/1 
 
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Key Facts 
 
Parties to the Agreement:  
 
Hong Kong, China and the EFTA Member States (Iceland, 
Liechtenstein, Norway and Switzerland). 
 
Date of Signature:      21 June 2011 
 
Date of Entry into Force:  1 October 2012 (Hong Kong, 
China; Iceland; Liechtenstein; and Switzerland); 
1 November 2012 (Hong Kong, China and Norway). 
 
Date of Notification:       27 September 2012. 
 
Full implementation:      2012 (immediately upon entry 
into force)  
 
 
1  TRADE ENVIRONMENT 
1.1.  The Parties to the Free Trade Agreement between Hong Kong, China and the EFTA States 
(hereinafter referred to as the Agreement) are Iceland, Liechtenstein, Norway and Switzerland (which comprise EFTA) and Hong Kong , China. The Agreement is EFTA's 23
rd agreement as notified 
to the WTO and Hong Kong, China's 3rd agreement.  
1.1  Merchandise trade 1.2.  With a combined GDP of US$1,159.1 billion, in 2011, the EFTA States' total merchandise 
trade was valued at US$703,332 million (exports at US$399,419 million and imports at 
US$303,913 million); Hong Kong, China's total trade in the same year was US$966,428 million (exports at US$455,573 million and imports US$510,855 million), with a GDP of US$249 billion.
1  
1.3.  In 2011, Hong Kong, China was the 5th largest destination for combined EFTA States' exports 
(2.3% of EFTA's global exports) and their 10th largest source of imports (0.7% of EFTA's global 
imports).2 In the same year, the EFTA States together were the 12th largest destination for 
Hong Kong, China's exports (1% of Hong Kong, China's global exports), and 8th largest source of 
imports (3.7% of Hong Kong, China's global imports).3 
1.4.  According to data reported by the Parties to the UNSD Comtrade database, in 2011 EFTA 
exported merchandise worth US$9,200 million to Hong Kong, China and imported 
US$2,164 million worth. Hong Kong, China exported US$4,427 million and imported 
US$18,866 million worth of merchandise from EFTA. Though discrepancies exist between the 
figures reported by the Parties, in Charts 1.1 and 1.2 below both reflect a trade deficit for Hong Kong, China in relation with its trade with EFTA. Both Charts show that there has been a steady 
increase in global trade, with a dip in 2009. Moreover, a trade surplus has been maintained over 
the period 2000-2011 by EFTA globally while Hong Kong, China had a trade deficit globally.  
                                               
1 Figures in this section unless indicated otherwise are from the WTO Trade Profiles 2012 as of 
April 2013 (2011 data) and the UNSD/Comtrade database.  Exports figures are calculated f.o.b. and imports 
c.i.f.  Ranking in world trade excludes intra-EU trade. Fo r bilateral trade, figures as reported by the Parties to 
UNSD, Comtrade database are used. 
2 The five top sources of imports for the EFTA States combined were: the EU27 (72.9%), the US 
(5.2%), China (5.2%), Japan (2.2%), and Canada (1.4%). The five top export destinations for the EFTA States combined were: the EU27 (66.9%), the US (8.3%), China (3.2%), Japan (2.4%), and Hong Kong, China (2.2%). 
3 The five top sources of imports for Hong Kong, China were: China (43.2%), Japan (8.5%), the EU27 
(7.9%), Singapore (6.5%), and the US (6.2%). The five top export destinations for Hong Kong, China were: 
China (54.1%), the EU27 (10.2%), the US (9.4%), Japan (3.8%), and India (2.7%). WT/REG322/1 
 
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  Chart 1.1 - EFTA: Merchandise trade with world and Hong Kong, China, 2000-20114 
051015202530
0100200300400500600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion US$ billionImports from  Hong Kong, China
Exports to Hong Kong, ChinaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Chart 1.2 Hong Kong, China: Merchandise trade with world and EFTA, 2000-20115 
051015202530
0100200300400500600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billionUS$ billion
Imports from  EFTA
Exports to EFTATotal imports
Total exportsLeft hand scale: Right hand scale:
 
1.5.  The commodity structure of trade among the Parties, as well as of their imports and exports 
to the world in the period 2009-2011, is shown in Chart 1.3 on the basis of Harmonized System 
(HS) sections. Over this period, among EFTA's four  main export categories (minerals, chemicals, 
machinery, and optical instruments, which accounted for 74% of its global exports), optical 
                                               
4 Source: UNSD Comtrade database. 
5 Source: UNSD Comtrade database. WT/REG322/1 
 
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  instrument (including clocks and watches) accounted for 31.4% of Hong Kong, China's imports 
from EFTA, while machinery accounted for 7%, and chemicals for 4.7%. Precious stones, EFTA 6th 
largest export sector globally, accounted for 48% of Hong Kong, China's imports from EFTA. Over the same period, Hong Kong, China's main export product categories globally were machinery, and 
precious stones (respectively 57.2% and 9.6% of its total exports). While precious stones 
accounted for more than half of EFTA's combined  imports from Hong Kong, China (56.3%), optical 
instruments (including clocks and watches) and machinery represented respectively 19.4% and 
11.2% of combined EFTA's imports from its prefer ential partner. While global exports patterns of 
the Parties differ substantially, their bilateral trading pattern is interestingly relatively similar, as the same categories of products are traded (both imports and exports) between the two partners. 
Chart 1.3 EFTA and Hong Kong, China: pr oduct composition of merchandise trade, 
annual average (2009-2011)
6 
27.7 
22.6 
14.1 9.6 6.1 4.5 3.2 2.3 9.9 
48.0 
31.4 7.0 4.7 3.4 5.5 57.2 
9.6 8.5 5.3 3.6 3.5 2.4 2.4 7.4 
19.6 
16.2 
11.3 
8.2 7.8 6.3 4.4 4.1 4.0 3.6 3.3 2.6 2.2 6.4 
54.3 
9.2 6.1 4.8 3.6 3.4 2.9 2.5 2.4 2.3 2.1 6.4 56.3 
19.4 11.2 4.0 9.1 EFTA's imports from Hong Kong, China
Hong Kong ,China's imports from EFTAPer cent
Total:  US$ 1.7 billion
Total:  US$ 11.2 billionTotal:  US $263 billion
Total: US $ 435 billionTotal:  US$ 395 billion
Total:  US$ 341 billionHong Kong, China's global exports
EFTA's global exportsEFTA's global imports
Hong Kong, China's global imports
VegetablesMinerals
Chemicals
Plastics, 
rubber TextilesPrecious 
stones
MachineryVehiclesOther
MiscellaneousOpticalAnimal 
products
Prepared 
foodsWood pulp Base 
metalsRaw hides
 
 
1.2  Trade in services and investment 
1.6.  In 2011, EFTA's share of total commercial services exports was 4%, while its share of total 
imports was 2.33%.7 Hong Kong, China's shares represented respectively 2.8% and 1.4% of world 
exports and imports. Among the EFTA States, Switzerland, with total commercial services exports 
of US$93.8 billion, and imports of US$44.9 billion, Switzerland was the world 8th largest exporter 
and 17th largest, while Norway ranked 13th largest exporter and 16th largest importer (with total 
commercial services exports of US$48.8 billion, and imports of US$46.4 billion), and Iceland was 
59th largest exporter and 66th largest importer (with total commercial services exports of 
US$2.9 billion, and imports of US$2.6 billion). In comparison, Hong Kong, China ranked as 7
th largest exporter and 12th largest importer (with commercial services exports of US$118 billion 
and imports of US$56 billion).8 
                                               
6 Source: UNSD Comtrade database. 
7 EFTA's share is constructed by a dding the shares of Iceland, Norway , and Switzerland, as presented in 
the WTO Trade Profiles. Separate data for Liechtenstein is not available. 
8 Source for this section: WTO Trade Profiles 2012 (2011 data). No specific profile is available for 
Liechtenstein and data corresponding to Switzerland does not include elements pertaining to trade in services by Liechtenstein (contrary to trade in goods). WT/REG322/1 
 
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  1.7.  Tables 1.1a, 1.1.b, 1.2a, and 1.2b below sh ow the breakdown of trade in commercial services 
and investment for the EFTA States and for Hong  Kong, China. On trade in commercial services, 
EFTA (as a group) maintains a trade surplus with the world (with, however different specificities for each EFTA State), while Hong Kong, China's global trade shows a surplus. For EFTA 
transportation, travel and other business services account for the main exports of Iceland, and 
Norway while financial, other business services and travel tend to dominate Switzerland's exports. 
Imports are mainly in travel, transport and other business services, except for Switzerland's 
imports which are mainly in royalties and licence fees, travel and transport. Hong Kong, China's 
global exports are mainly in transport, travel, financial services and other business services, while it imports mainly travel, transport and other business services. In relation to bilateral trade, one should note that data is partly lacking. Table 1.1b shows that the EFTA states are net outward 
foreign investors and although data on FDI with Hong Kong, China is not complete it would appear 
that Hong Kong, China has remained a net benefici ary of FDI from EFTA. Table 1.2b provides some 
information on bilateral trade between Hong Kong, China and Switzerland and between 
Hong Kong, China and Norway. 
Table 1.1a EFTA: Trade in commercial services with world, 2006-2011
 
in billion US$ 
Iceland, 2006-2011 Exports  Imports 
2006 2007 2008  2009  2010  2011  2006  2007  2008 2009 2010  2011  
Total commercial 
services 1.8 2.2 2.1  2.3 2.5 2.9 2.6 3.0 2.4 2.0 2.2  2.6 
Transportation 
services 0.8 1.0 0.9 1.1 1.2 1.4 0.8 0.9 0.8 0.7 0.6 0.8 
Travel 0.4 0.5 0.6  0.6 0.6 0.7 1.1 1.3 1.0 0.5 0.6  0.7 
Communication 
services 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.1 0.1 
Construction - - -  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0  0.0 
Insurance services   0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.1 0.1 
Financial services 0.0 0.0 0.0  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0  0.0 
Computer and 
information services 0.1 0.1 0.1 0.1 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.1 
Royalties and licence 
fees 0.0 0.0 0.0  0.2 0.2 0.2 0.0 0.0 0.0 0.1 0.1  0.1 
Other business 
services 0.4 0.5 0.5 0.4 0.4 0.4 0.5 0.6 0.5 0.5 0.7 0.7 
Personal, cultural and 
recreation services 0.0 0.0 0.0  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0  0.0 
Norway, 2006-2011 Exports  Imports 
2006 2007 2008  2009  2010  2011  2006  2007  2008 2009 2010  2011  
Total commercial 
services 33.3 40.4 44.8 38.4 46.9 48.8 31.9 39.5 44.6 36.7 43.8 46.4 
Transportation 
services 16.1 19.0 20.8  15.5 17.6 17.1 9.9 13.1 14.2 9.4 10.9  9.9 
Travel 3.6 4.2 4.7 4.0 4.6 5.1 11.5 14.0 13.9 12.3 14.6  16.6 
Communication 
services 0.4 0.6 0.8  0.7 0.7 0.9 0.3 0.4 1.1 0.9 1.1  1.1 
Construction 0.3 0.3 0.5 0.4 0.3 0.3 0.0 0.1 0.1 0.0 0.0 0.1 
Insurance services   0.3 0.3 0.2  0.2 0.3 0.3 0.2 0.2 0.1 0.1 0.0  0.1 
Financial services 0.8 1.0 1.4 1.6 1.6 2.1 0.9 1.1 1.1 1.2 0.9 1.6 
Computer and 
information services 1.4 1.1 2.2  2.6 3.6 3.8 1.3 1.7 1.7 1.6 2.3  2.7 
Royalties and licence 
fees 0.7 0.7 0.7 0.6 1.7 1.6 0.5 0.6 0.8 0.6 1.1 1.3 
Other business 
services 9.1 12.4 12.8  12.0 15.8 16.9 6.0 7.0 10.0 9.6 12.2  12.2 
Personal, cultural and 
recreation services 0.4 0.5 0.6 0.5 0.7 0.6 0.6 0.6 0.7 0.6 0.6 0.8 
Switzerland, 2006-
2011 Exports  Imports 
2006 2007 2008  2009  2010  2011  2006  2007  2008 2009 2010  2011  
Total commercial 
services 54.8 65.8 77.2  76.0 83.3 81.3 23.5 27.9 30.8 33.9 34.6  36.3 
Transportation 
services 4.5 5.6 6.6 5.5 5.6 5.6 3.1 3.6 4.2 3.6 3.9 4.1 
Travel 10.8 12.2 14.4  14.1 15.0 14.9 9.2 10.1 10.9 10.9 11.1  11.2 
Switzerland, 2006-
2011 Exports  Imports 
2006 2007 2008  2009  2010  2011  2006  2007  2008 2009 2010  2011  
Communication 
services 1.1 1.1 1.2 1.3 1.4 1.4 0.8 0.8 1.0 1.0 1.1 1.1 
Construction  -   -   -    -   -  -  -   -   -   -   -   - 
Insurance services   3.7 4.9 5.9 5.6 4.9 4.9 0.4 0.6 0.7 0.8 0.9 0.9 
Financial services 15.6 19.3 19.2  16.1 15.8 15.8 1.3 1.8 2.1 1.9 1.7  1.7 
Computer and 
information services  -   -   -   -   -  -  -   -   -   -   -  - WT/REG322/1 
 
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  Switzerland, 2006-
2011 Exports  Imports 
2006 2007 2008  2009  2010  2011  2006  2007  2008 2009 2010  2011  
Royalties and licence 
fees 8.0 9.3 11.4  14.9 16.4 16.5 7.4 9.7 10.4 14.4 14.9  16.6 
Other business 
services 9.7 11.9 16.6 16.4 22.3 22.1 1.0 1.1 1.3 0.8 0.7 0.7 
Personal, cultural and 
recreation services 0.0 0.0  0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1  0.1 
 - No available data. 
Table 1.1b EFTA: Foreign direct investme nt with world and Hong Kong, China, 2006-
2011  
in billion US$  
Iceland Outward  Inward 
  2006  2007 2008 2009  2010  2011  2006  2007  2008 2009 2010  2011  
Total FDI  World 13.0  25.2 9.4 10.2  11.5 11.5 7.7 16.5 9.2 8.6 11.8  12.7 
stocks Hong 
Kong, 
China 0.0 0.0 - - 0.001  -0.001  - - - - 0.01 0.01 
Total FDI  World 5.6  10.2 -4.2 2.3  -2.4 0.0 3.9 6.8 0.9 0.1 0.2  1.1 
flows Hong 
Kong, 
China -0.0 0.0 -0.0 - -0.0 -0.0 - - - - 0.0 0.0 
Norway Outward  Inward 
  2006  2007 2008 2009  2010  2011  2006  2007  2008 2009 2010  2011  
Total FDI  World 118.4  155.2 145.1 168.9  188.0  206.7  97.6 132.4  118.6 148.3 174.6  180.9  
stocks Hong 
Kong, 
China 0.10 0.08 0.08 0.13 0.09 0.09 C C 0.02 0.02 - - 
Total FDI  World 20.7  10.4 20.4 19.2  23.3 25.4 10.5 8.0 10.2 16.6 16.8  18.2 
flows Hong 
Kong, 
China 0.0 C 0.06 -0.02  -0.02  - C C 0.02 -0.01 0.02 - 
Switzerland Outward  Inward 
  2006  2007 2008 2009  2010  2011  2006  2007  2008 2009 2010  2011  
Total FDI  World 569.4  652.3 723.8 864.9  1,032.
8 1,063.1  268.9  353.3  447.5 499.6 617.7  644.9  
stocks Hong 
Kong, 
China 3.5 4.0 4.1 4.5 5.2 5.3 C C C C C C 
Total FDI  World 75.9  51.0 45.3 26.4  79.3 47.3 43.7 32.4 15.1 28.9 32.6  11.8 
flows Hong 
Kong, 
China 0.9 0.2 0.1 0.8 0.4 0.5 C C C C C C 
- no available data; C - confidential 
 Source: OECD. 
Table 1.2a Hong Kong, China: Trade in comme rcial services and investment with world, 
2006-2010  
Unit: in billion US$ 
Service item Exports  Imports 
2006 2007  2008  2009  2010  2006  2007  2008 2009 2010  
Total commercial services 72.7 84.7  92.2 86.3 106.1  36.9 42.4 46.9 43.8 50.9  
Transportation services 22.4 25.6 28.9 23.7 29.9 11.6 13.9 15.8 12.2 14.6 
Travel 11.6 13.8  15.3 16.4 22.2 14.0 15.0 16.1 15.7 17.5  
Communication services 0.8 0.9 0.9 0.9 1.2 1.1 1.1 1.2 1.2 1.7 
Construction 0.3 0.3  0.2 0.1 0.1 0.2 0.3 0.2 0.1 0.1  
Insurance services   0.4 0.5 0.5 0.5 0.5 0.6 0.7 0.7 0.7 0.8 
Financial services 9.3 12.4  12.0 11.3 13.1 2.0 2.8 3.1 3.3 3.5  
Computer and information 
services 0.4 0.3 0.7 0.7 0.9 0.4 0.4 0.5 0.6 0.6 
Royalties and licence fees 0.3 0.4  0.4 0.4 0.4 1.4 1.5 1.6 1.7 2.0  
Other business services 26.9 30.3 33.1 32.2 37.5 5.5 6.6 7.5 8.3 10.0 
Personal, cultural and recreation 
services 0.3 0.3  0.3 0.1 0.1 0.1 0.1 0.1 0.1 0.1  
 Outward  Inward 
 2006 2007  2008  2009  2010  2006  2007  2008 2009 2010  
Total FDI stocks 677 1,011  762 832 936 742 1,178  816 936 1,090  
Total FDI flows 45 61  51 64 95 45 54 60 52 71  
 
Source: Hong Kong Statistics viewed  at http://www.censtatd.gov.hk, Census & Statistics Department, 
Hong Kong, China and UNCTAD (FDI). WT/REG322/1 
 
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  Table 1.2b Hong Kong, China: Trade in commercial services and investment with 
Switzerland and Norway  
Unit: in billion US$ 
Service item 
(2009-2010) Switzerland  Norway 
Exports  Imports  Exports  Imports  
2009 2010  2009  2010  2009  2010 2009 2010  
Total commercial services 0.9 1.3  0.3 0.4 0.1 0.1 0.0 0.0  
Transportation services 0.4 0.5 0.1 0.1 0.1 0.1 0.0 0.0 
Travel - -  0.0 0.0 - - - -  
Communication services 0.0 0.0 0.0 0.0 - - - - 
Construction - -  - - - - - -  
Insurance services   - - 0.0 0.0 - - - - 
Financial services 0.1 0.1  0.0 0.0 0.0 0.0 0.0 -  
Computer and information 
services 0.0 - 0.0 0.0 - - - - 
Royalties and licence fees 0.0 0.0  0.1 0.1 - - - - 
Other business services 0.3 - 0.1 0.1 - - - - 
Personal, cultural and recreation 
services - -  0.0 0.0 - - - - 
Investment 
(2009-2011) Outward  Inward 
2009 2010  2011  2009  2010 2011  
Total FDI stocks 6.0 5.7 6.6 - - - 
Total FDI flows 0.6 1.1  1.4 - - -  
 
Source: Hong Kong authorities (bilateral data for FDI is available only for FDI inward flow and stocks with Switzerland).  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Free Trade Agreement between Hong Kong, China and the EFTA Member States was 
signed on 21 June 2011. It was notified to the WTO under Article XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS on 27 September 2012.
9 The Agreement entered into force between 
Hong Kong, China and Iceland, Liechtenstein and Switzerland on 1 October 2012, and between 
Hong Kong, China and Norway on 1 November 2 012. The text of the Agreement is available, 
together with its Annexes, on the Parties' official websites: 
Hong Kong, China:   http://www.tid.gov.hk/english/trad e_relations/hkefta/index.html  
EFTA:   http://www.efta.int/free-trade/free-t rade-agreements/hong-kong.aspx 
 
2.2.  The Agreement is composed of 11 Chapters and 12 Annexes as follows: 
Box 2.1 Structure of the Agreement 
Preamble 
Chapter 1 General provisions 
Chapter 2 Trade in goods 
Chapter 3 Trade in services 
Chapter 4 Investment 
Chapter 5 Protection of intellectual property 
Chapter 6 Government procurement 
Chapter 7 Competition 
Chapter 8 Trade and environment 
Chapter 9 Institutional provisions 
Chapter 10 Dispute settlement 
Chapter 11 Final provisions 
                                               
9 WTO documents WT/REG322/N/1 and S/C/N/654. WT/REG322/1 
 
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  Preamble 
Annexes   
Annex I Excluded products 
Annex II Processed agricultural products 
Annex III Fish and other marine products 
Annex IV Rules of origin 
Annex V Trade facilitation 
Annex VI Mandate of the Sub-committee on rules of origin, customs procedures and 
trade facilitation 
Annex VII Disciplines on domestic regulation 
Annex VIII Financial services 
Annex IX Telecommunications services 
Annex X Lists of reservations and commitments (services) 
Annex XI Investment re servations 
Annex XII Protection of intellectual property 
  
Agreements on Agriculture  
Agreement on Labour   
Source: The Agreement and related annexes. 
 
2.3.  In addition to the Agreement, the Parties also negotiated an Agreement on labour10, as well 
as bilateral Agreements on Agriculture (AAs) (bet ween Iceland and Hong Kong, China; Norway and 
Hong Kong, China; and Switzerland/Liechtenstein and Hong Kong, China). The AAs form an integral part of the Agreement. The Norwegian territory of Svalbard is excluded from the 
provisions of the Agreement except for those on trade in goods (Article 1.2). 
2.4.  The Agreement and the bilateral AAs aim to establish a free trade area between the EFTA 
States and Hong Kong, China. Its objectives are to  liberalize trade in goods and services according 
to Article XXIV of the GATT and Article V of the GATS; mutually enhance investment opportunities; 
facilitate and expand trade in goods and services; ensure adequate and effective protection of 
intellectual property rights; improve access to th e Parties' government procurement markets on a 
mutual basis; promote competition in the Parties' economies; develop international trade with a view to contributing to sustainable development; and contribute thereby to the harmonious 
development and expansion of world trade (Article 1.1). 
2.5.  The Agreement covers trade and economic relations between Hong Kong, China and each 
individual EFTA State but not between the EFTA States unless otherwise stated in the Agreement. 
Furthermore, Switzerland shall represent the Principality of Liechtenstein in matters covered by the 
Agreement by virtue of the Customs Union between the two States (Article 1.3). The Parties are to ensure that their respective regional and local governments and authorities and non-governmental 
bodies in the exercise of governmental powers de legated to them by central, regional and local 
governments and authorities will meet all ob ligations and commitments under the Agreement 
(Article 1.5). 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges,  and quantitative restrictions 
3.1.  The rights and obligations of the Parties in respect of import restrictions shall be governed by 
Article XI of the GATT 1994, which is incorporated into and made part of the Agreement 
(Article 2.4). 
                                               
10 The Agreement on Labour is concluded sepa rately from, but alongs ide, the Agreement. WT/REG322/1 
 
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  3.1.1  General provisions 
3.2.  Under Chapter 2 on trade in goods, the Parties agree to provide each other national 
treatment as they commit to apply any intern al taxes and other charges and regulations in 
accordance with Article III of the GATT 1994. Ex porters may not benefit from repayment of 
indirect taxes in excess of the amount of indirect taxes levied on products exported to one of the 
Parties (Article 2.5). 
3.3.  The Parties agree to abolish, upon entry into force of the Agreement, all customs duties11 on 
imports and exports of products originating in an EFTA State or in Hong Kong, China for products 
covered by HS Chapters 25-97 excluding those listed in Annex I to the Agreement (excluded products
12) as well as for processed agricultural products specified and following the arrangements 
in Annex II to the Agreement and fish and other marine products in Annex III to the Agreement. 
No new customs duties shall be introduced (Article 2.3).  
3.4.  Annex II to the Agreement describes liberalization commitments for processed agricultural 
products (listed in a Table attached to Annex II). In addition to establishing a price compensation 
mechanism (see below under other safeguards), the EFTA States commit to accord to the products 
listed in the Table, originating in Hong Kong, China, treatment no less favourable than that accorded to the European Union at the time of importation of such products into the EFTA States. 
Hong Kong, China commits to abolish all customs duties on imports of the same products, 
originating in an EFTA State (Articles1, 2 and 3 of Annex II). 
3.5.  Customs duties on fish and other marine products, listed in Table 1 of Annex III to the 
Agreement and originating in one of the Parties, shall be abolished by the Parties. However as an 
exception, Switzerland may maintain customs duties on imports of the products
13 listed in Table 2 
of Annex III originating in Hong Kong, China.  
3.6.  Hong Kong, China and the EFTA States have also concluded three AAs. They apply to 
measures adopted or maintained by the Parties on agricultural products classified in 
HS Chapters 1-24 (except for proc essed agricultural products or fish and other marine products 
included in Annexes II and III to the Agreement) an d on agricultural products included in Annex I 
to the Agreement. Tariffs on specific products included in the AAs were removed immediately upon 
the entry into force of the Agreement. In the case  of Hong Kong, China, the elimination of customs 
duties on products originating in each of the EFTA States applies to products classified in Chapters 1-24 . In the case of th e EFTA States, the tariff elimination
14 commitments apply only to 
the products identified by them in Annex 2 of th e respective AAs. Under the AAs, the Parties also 
confirm their rights and obligations under the WT O Agreement on Agriculture (Article 6 of each 
AA); they shall examine any difficulties that might arise in their trade in agricultural products and 
endeavour to seek appropriate solutions to them through dialogue and consultations (Article 4 of 
each AA), and shall undertake to continue thei r efforts with a view to achieving further 
liberalization of their trade in agricultural products, taking account of the pattern of such trade 
between them, the particular sensitivities of such  products, and the development of agricultural 
policy on either side (Article 5 of each AA). 
3.1.2  Liberalization of trade and tariff lines  3.7.  Tables 3.1 to 3.4 show liberalization of tariff lines and trade under the Agreement by the 
Parties (Tables 3.1-3.3 for EFTA's imports from Hong Kong, China and Table 3.4 for Hong Kong, 
China's imports from EFTA). Liberalization took place immediately at the entry into force of the Agreement by the EFTA States, while Hong Kong, China's, tariff was already duty free on MFN 
basis at the entry into force of the Agreement. 
                                               
11 Customs duties include any duty or charge of any kind imposed in connection  with the importation or 
exportation of a product, including an y form of surtax or surcharge, but does not include any charge covered 
by Articles III and VIII of the GA TT 1994 (Article 2.3, paragraph 2). 
12 The exception applies, for Norway, Liechtenstein an d/or Switzerland (depending on the products), to 
some chemicals of headings 35.01, 35.02, 35.05, 38.09, and 38.23. 
13 The products listed are certain feedstuffs for the production of animals, as well as some fats and oils 
for human consumption. 
14 For a number of products, Switzerland's tariff elimination commitment applies "within the limits of a 
tariff quota". It is understood that the tariff quotas referred to in Switzerland's list of commitments on 
agricultural products are those consolidated by Switzerland in the context of the WTO. WT/REG322/1 
 
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  3.1.2.1  Iceland 
3.8.  In 2012 when the Agreement entered into force between Iceland and Hong Kong, China, 
70.1% of Iceland's tariff (5,967 lines) was already duty free on an MFN basis, corresponding to 44% of its imports from Hong Kong, China during 2009-2011.
15 As a result of the Agreement, an 
additional 1,999 lines became duty free for imports from Hong Kong, China immediately, 
corresponding to 56% of imports from Hong Kong , China in 2009-2011; 551 tariff lines remained 
dutiable for which there were no imports from Hong Kong, China during 2009-2011.  
Table 3.1 Iceland  
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out 
period Number of 
lines % of total lines 
in Iceland's 
tariff schedule Value of Iceland's 
imports from Hong 
Kong, China 
(2009-2011) in 
million US$ % of Iceland's 
total imports 
from  
Hong Kong, 
China 
2009-2011 
MFN duty free (2012)  5,967 70.1 3.7 44.0 
2012 1,999 23.5 4.7 56.0 
Remain dutiable 551 6.5 0.0 0.0 
Total 8,517 100.0 8.5 100.0 
 
Note:  Based on the HS 2012 nomenclature.  Source:  WTO Secretariat estimates based on data provided by Iceland and the WTO-IDB. 
 
3.1.2.2  Norway 
3.9.  In the case of Norway, in 2012, when the Agreement entered into force between Norway and 
Hong Kong, China, 83.5% of its tariff (6,021 lines ) was already duty free on an MFN basis, which 
covered 84.6% of Norway's imports during 2009-2011 from Hong Kong, China.16 Upon the entry 
into force of the Agreement Norway liberalized a further 53 lines (0.7% of its tariff) which covered 
a negligible part of its imports from Hong Kong, China. Tariff will remain on 1,133 tariff lines (15.7 of the tariff), corresponding to around 15.4%  of Norway's imports from Hong Kong, China in 
2009-2011.  
Table 3.2 Norway  
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in Norway's 
tariff schedule Value of Norway's 
imports from Hong 
Kong, China 
(2009-2011) 
in million US$ % of Norway's 
total imports 
from  
Hong Kong, 
China 
2009-2011 
MFN duty free (2012)  6,021 83.5 176.0 84.6 
2012 53 0.7 0.0 0.0 
Remain dutiable 1,133 15.7 31.9 15.4 
Total 7,207 100.0 208.0 100.0 
 
Note: Based on the HS 2012 nomenclature.  Source:  WTO estimates based on data provided by Norway and the WTO-IDB. 
 
                                               
15 In 2012 Iceland's MFN applied tariff contained 8,517 lines at the HS 8-digit level. Of these, 
8,079 lines (94.86%) had ad valorem  rates of duty. Of the non ad valorem  rates, 385 lines have compound 
rates of duty, and 53 have specific rates of duty. 
16 In 2012 Norway's MFN applied tariff contained 7,207 lines at the HS 8-digit level. Of these, 
6,389 lines (88.65%) were subject to ad valorem  rates of duty, while 817 lines carried specific rates of duty 
and 1 line is subjec t to other duties. WT/REG322/1 
 
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  3.1.2.3  Switzerlan d / Liechtenstein 
3.10.  Switzerland's tariff, in 2012, was duty free on an MFN basis for 18.7% of lines, which 
corresponded to 8.1% of its average annual imports from Hong Kong, China during 2009-2011.17 
In 2012 Switzerland liberalized a further 5,245 lines (63.2% of the tariff) for imports from Hong 
Kong, China, which accounted for 91.9% of it s imports from Hong Kong, China. 18.1% of 
Switzerland's tariff (1,503 lines) will remain subject to duties for imports from Hong Kong, China, for which it had little corresponding imports. 
Table 3.3 Switzerland  
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in Switzerland's 
tariff schedule Value of 
Switzerland's 
imports from Hong 
Kong, China 
 (2009-2011) 
in million US$ % of 
Switzerland's 
total imports 
from  
Hong Kong, 
China 
2009-2011 
MFN duty free (2012)  1,551 18.7 123.0 8.1 
2012 5,245 63.2 1,405.0 91.9 
Remain dutiable 1,503 18.1 0.3 0.0 
Total 8,299 100.0 1,528.3 100.0 
 
Note: Tariff lines subject to in-quota rate s are excluded in the tariff line count. 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Switzerland. 
 
3.1.2.4  Hong Kong, China 
3.11.  In 2012 when the Agreement entered into fo rce for Hong Kong, China with the EFTA States, 
100% of its tariff (7,282 lines) was already duty free on an MFN basis. The value of Hong Kong, 
China's imports from the EFTA States, during the period 2009-2011 was US$8.2 million from 
Iceland, US$252.1 million from Norway, and US$9,738 million from Switzerland. 
Table 3.4 Hong Kong, China-EFTA States 
Tariff elimination commitments under the Ag reement and corresponding average trade  
Duty phase-out 
period Number of 
lines Value of Hong Kong, China's imports from  
EFTA States (2009-2011) in million US$ 
Iceland Norway Switzerland 
MFN duty free (2012)  7,282 8.2 252.1 9,738 
 
Note: Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provid ed by Hong Kong, China to the WTO-IDB. 
 
3.1.3  Liberalization schedule 
3.1.3.1  EFTA 3.1.3.1.1  Iceland 
3.12.  Table 3.5 and Chart 3.1 below show Icel and's tariff elimination by HS Section and 
HS Chapter respectively. All the products that remain dutiable once the Agreement is fully implemented are found in HS Sections I-IV (live animals and animal products, vegetable products, 
animal or vegetable fats and oils, and prepared food). Chart 3.1 below furthermore shows that the 
highest average tariffs of up to 55% on products remaining dutiable are found in HS Chapters 10, 
12 and 17. Most of the remaining average tariffs (w ith the exception of HS 20) are equivalent to 
their corresponding MFN average rates. 
                                               
17 Switzerland's MFN applied tariff, in 2012, contained 8,299 lines at the HS 8-digit level. All tariff lines 
are subject to specific rates of duty. WT/REG322/1 
 
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  Table 3.5 Iceland: Tariff elimination under the Agreement, by HS Section 
HS Section and description  MFN 
average
% Total No 
of lines  MFN 
2012  Number of 
duty-free 
lines  Remain 
dutiable  Avg. Final Tariff 
(Dutiable)  
2012 
I 7.5 868 630 32 206 29.7 
II 12.5 466 294 22 150 35.4 
III 0.0 109 105  4 - 
IV 9.5 1,081 557 333 191 32.4 
V 0.1 192 190 2   
VI 1.2 971 819 152   
VII 2.4 368 238 130   
VIII 5.4 123 25 98   
IX 1.9 218 158 60   
X 2.1 186 137 49   
XI 5.1 899 550 349   
XII 12.7 71 6 65   
XIII 3.5 192 110 82   
XIV 3.0 61 43 18   
XV 1.3 690 583 107   
XVI 2.2 1,113 836 277   
XVII 0.7 465 431 34   
XVIII 0.1 227 224 3   
XIX 5.9 24 6 18   
XX 8.7 185 18 167   
XXI 1.3 8 7 1   
Total 4.4 8,517 5,967 1,999 551 32.2 
- contain specific duties. 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on da ta provided by Iceland and the WTO-IDB. 
Chart 3.1 Iceland: Average of du tiable rates, by HS Chapter 
0 5 10 15 20 25 30 35 40 45 50 55 6002040607101112151617181920212223
Preferential MFNHS Chapter  
Average rate of duty (%)
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates is included. 
* HS chapter 15 contains specific duti es for both MFN and preferential duti es; HS chapters 18 and 19 contain 
specific duties only for the preferential rates.  Source: WTO Secretariat estimates, based on  data provided by Iceland and WTO-IDB. WT/REG322/1 
 
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  3.1.3.1.2  Norway 
3.13.  Table 3.6 and Chart 3.2 below gives further details of Norway's tariff elimination 
commitments by HS Section and by HS Chapter respectively. In 2012 Norway liberalized all its 
tariffs in Section XI and eliminated some tariffs in Sections I-IV. Products that remain subject to 
duties are all found in Sections I-IV and VI. Average tariffs are above 200% in HS Sections I, VI 
and II, corresponding to HS Chapters 1, 4, 12, and 35, with average final duties in HS Chapter 1 over 500%.  
Table 3.6 Norway: Tariff elimination und er the Agreement, by HS Section
 
HS Section  MFN 
average
% Total No 
of lines  MFN 
2012  Number of 
duty-free 
lines  Remain 
dutiable  Avg. Final 
Tariff 
(Dutiable)  2012 
I 9.5 534 333 5 196 463.7 
II 19.7 590 248 2 340 124.3 
III 5.7 126 50 7 69 14.1 
IV 2.6 462 179 39 244 70.4 
V 0.0 191 191    
VI 1.1 948 929  19 337.1 
VII 0.0 303 303    
VIII 0.0 90 90    
IX 0.0 173 173    
X 0.0 172 172    
XI 2.8 932 667  265 9.9 
XII 0.0 62 62    
XIII 0.0 180 180    
XIV 0.0 54 54    
XV 0.0 662 662    
XVI 0.0 1,029 1,029    
XVII 0.0 214 214    
XVIII 0.0 265 265    
XIX 0.0 24 24    
XX 0.0 189 189    
XXI 0.0 7 7    
Total 2.1 7,207 6,021 53 1,133 38.0 
Note: Tariff lines subject to in-quota ra tes are excluded in the computation. 
 Based on the HS 2012 nomenclature. Source:  WTO estimates based on data provided by Norway and the WTO-IDB. 
 
Chart 3.2 Norway: Average of du tiable rates, by HS Chapter 
0 50 100 150 200 250 300 350 400 450 500 55001*0204*050607*08*10*11121516*17*18*19*2021*222335*38616263
Preferential MFNHS Chapter  
Average rate of duty (%)
 
* HS chapters 2; 5; 8; 10-11; 17-20; 22 and 38 contain specific duties only. 
Source: WTO Secretariat estimates, ba sed on data provided by Norway. WT/REG322/1 
 
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  3.1.3.2  Switzerland 
3.14.  Switzerland's tariff elimination under the Agreement covers all HS Sections. After full 
implementation of the Agreement, immediately up on its entry into force in 2012, Switzerland will 
continue to maintain tariffs in HS Sections I-IV and VI. As Switzerland's tariff is subject to specific 
rates of duty and as ad valorem  rates equivalents were not available to the Secretariat, it is not 
possible to calculate the average final tariff on dutiable products. 
Table 3.7 Switzerland: Tariff eliminatio n under the Agreement, by HS Section  
HS 
Section MFN average 
% Total No of 
lines MFN 
2012 Number of 
duty-free 
lines Remain 
dutiable Avg. Final 
Tariff  
(Dutiable) 
2012 
I … 450 188 50 212 … 
II … 1,045 192 127 726 … 
III … 197 45 6 146 … 
IV … 618 110 97 411 … 
V … 183 121 62   
VI … 1,012 407 597 8 … 
VII … 241 30 211   
VIII … 74 15 59   
IX … 131 15 116   
X … 178 24 154   
XI … 1,090 34 1,056   
XII … 60  60   
XIII … 159 2 157   
XIV … 61 7 54   
XV … 906 39 867   
XVI … 1,236 207 1,029   
XVII … 195 18 177   
XVIII … 251 55 196   
XIX … 26  26   
XX … 176 34 142   
XXI … 10 8 2   
Total … 8,299 1,551 5,245 1,503 … 
 
… Not available: Switzerland's tariff is subject to specific duties for which ad valorem  equivalents are 
not available. 
Note: Calculation excludes specific and in-quota rates. Based on the HS 2007 nomenclature.  Source: WTO estimates based on da ta provided by Switzerland. 
 
3.1.3.3  Hong Kong, China 
3.15.  In the case of Hong Kong, China, the entire  tariff was already duty free on MFN basis at the 
entry into force of the Agreement. 
3.1.4  Tariff rate quotas 3.16.  The Agreement does not contain any prefer ential TRQ commitments from Iceland, Norway, 
and Hong Kong, China. Switzerland, on its side, wh ile granting duty-free access for the agricultural 
products contained in Annex 2 of its bilateral AA with Hong Kong, China does so "within the limits of a tariff quota" for 25 specific tariff lines. Al though the seven TRQs categories referred to for 
these 25 tariff lines are not specified in its bilateral AA with Hong Kong, China, the concessions 
granted by Switzerland are all within its WTO TRQ commitments. Quantities are fixed and indefinite without any variation of quantities over time. Annex II of the factual presentation summarizes Switzerland's TRQ conc essions to Hong Kong, China. 
3.2  Rules of origin 
3.17.  Rules of origin and methods of administra tive cooperation are covered in Article 2.2 and 
Annex IV.  
3.18.  Annex IV defines originating products as wholly obtained in a Party (within the meaning of 
Article 3 of the Annex); products incorporating materials which have not been wholly obtained in a WT/REG322/1 
 
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  Party, provided that such materials have undergone sufficient working or processing in the Party 
concerned (in accordance with Article 4 of the A nnex and Appendix 1 to the Annex); or products 
obtained in a Party exclusively from materials originating in one or more Parties.  
3.19.  Products are considered to be sufficiently wo rked or processed if they satisfy the conditions 
contained in Appendix 1 to the Annex. For most HS Chapters covering agricultural products, the 
products are originating if they are wholly obtained or if their transformation involves a change in tariff classification (CTC), or, in a few cases, value addition as specified in Appendix 1. For 
products in HS Chapters 25-97, the CTC and a value addition rule specifying the maximum value 
of non-originating materials (60% for most products) of the ex-works price of the product may be used. In certain cases, for instance for some metals, specified manufacturing or processing operations are required. Article 4 of Annex IV also  provides that non-originating materials which do 
not fulfil the conditions set out in Appendix 1 can be considered to have undergone sufficient 
working or processing, provided that (i) their to tal value does not exceed 20% of the ex-works 
price of the product; and (ii) the percentages set out in Appendix 1 as maximum value of non-
originating materials are not exceeded. Notwithstanding this de minimis  provision, certain minimal 
operations as outlined in Article 5 of the Annex do not confer originating status even if the requirements above are satisfied. 
3.20.  Accumulation provisions are set out in Article 6 of Annex IV. According a product originating 
in a Party, which is used as material in the production of a product in another Party, shall be considered as originating in the last Party where an operation beyond insufficient working or processing (as defined in Article 5 of the Annex) has been carried out. A product originating in a 
Party, which is exported from one Party to another and does not undergo working or processing 
beyond insufficient working or processing shall retain its origin. Where materials originating in two or more Parties are used in the production of a product and these materials have not undergone 
any working or processing beyond the operations referred to in Article 5 of the Annex, the origin of 
the product is determined by the material with the highest customs value, or if this cannot be ascertained, with the highest first ascertainable price paid for that material in that Party. These 
conditions do not apply to agricultural products which are exported from one EFTA State to 
another (Article 3 of each AA).  
3.21.  Annex IV also contains specifications relating to (i) the unit of qualification of a product or 
material for the purpose of determining the origin status (Article 7 of the Annex); (ii) neutral 
elements, such as energy and fuel, (Article 8 of the Annex); (iii) accounting segregation (Article 9 
of the Annex); and direct transport of goods be tween the Parties (Article 11 of the Annex).  
3.22.  Section II of Annex IV deals with self-decla ration of origin through provisions regulating 
origin declaration (Article 12 of the Annex and Appendix 2 to it); representation of the exporter by 
a third person (Article 13 of the Annex); and authorization by the customs authorities of a Party of "approved exporters" (Article 14 of the Annex).  
3.23.  Section III of Annex IV covers import requirements, import by instalments, exemption from 
origin declarations, and denial of preferential treatment (respectively Articles 15 to 18 of the 
Annex). 
3.24.  Obligations of importers and exporters, including provisions on co-operation of exporters 
and importers with customs authorities, requ ired documentary evidence, and treatment of 
incorrect information are addressed in Section IV of Annex IV (Articles 19 to 21 of the Annex). 
3.25.  Arrangements for administrative co-operation (Section V of Annex IV,) permit the 
competent authority of the exporting Party, on requ est of the importing Party, to verify proof of 
origin and to request any evidence or inspect the exporters' accounts as considered appropriate and consistent with its domestic law. Verifications may be carried out upon request by the 
importing Party. The competent authorities of th is Party may decide to suspend preferential 
treatment to products covered by the proof of orig in while awaiting the results of the verification. 
Notifications from and co-operation between the Pa rties are foreseen in Article 22 of the Annex, 
while provisions for verification of origin declar ations are set out in Article 23 of the Annex. The 
resolution of technical matters related to the implementation or application of Annex IV, to the 
extent possible, shall be through direct consulta tions between the customs authorities responsible WT/REG322/1 
 
- 19 - 
 
  for the verification of the origin of the products, or in the Sub-Committee on Rules of Origin, 
Customs Procedures, and Trade Facilitation established by Article 2.9 of the Agreement. 
3.26.  Section VI of the Annex establishes the possibility for the Parties to impose penalties for the 
infringement to the provisions of Annex IV (Article 24 of the Annex).  
3.27.  The Parties shall review Annex IV and its Appendices every three years, or more frequently 
if agreed by them, within the framework of the Joint Committee (Article 26 of the Annex). 
3.3  Export duties and charges,  and quantitative restrictions 
3.28.  The rights and obligations of the Parties in respect of export restrictions shall be governed 
by Article XI of the GATT 1994, which is incorporated into and made part of the Agreement (Article 2.4). 
3.4  Regulatory Provisions of the Agreement 
3.4.1  Standards 
3.4.1.1  Sanitary and phytosanitary measures 3.29.  Under Article 2.6 the Parties confirm their rights and obligations under the WTO Agreement 
on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). They agree to 
strengthen their co-operation in the field of SPS measures, with a view to increasing their mutual 
understanding of the respective systems and fac ilitating access to their respective markets.  
3.30.  Where a Party considers that another Party has taken a measure which is likely to create, or 
has created, an obstacle to trade, the Parties agree to hold ad hoc consultations to find an appropriate solution in conformity with the SPS Agreement. They also agree to designate contact 
points on SPS issues.
18  
3.4.1.2  Technical barriers to trade 
3.31.  Under Article 2.7 the Parties confirm their rights and obligations under the WTO Agreement 
on Technical Barriers to Trade (TBT Agreement). They agree to strengthen their co-operation in 
the field of technical regulations, standards and conformity assessment procedures, with a view to 
increasing their mutual understanding of the respective systems and facilitating access to their respective markets.  
3.32.  Where a Party considers that another Party has taken a measure which is likely to create, or 
has created, an obstacle to trade, the Parties agree to hold ad hoc consultations to find an appropriate solution in conformity with the TBT Agreement. They also agree to designate contact 
points on TBT issues.
19  
3.4.2  Safeguard mechanisms 
3.4.2.1  Global safeguards 3.33.  Two different regimes are created by the Agreement in relation to the use of global 
safeguard measures. In the context of bilateral trade relations, Hong Kong, China and Norway 
shall not apply global safeguards on products orig inating in each other's territory (Article 2.13, 
paragraph 1). This means that, when applied to their bilateral trade relations, Hong Kong, China 
and Norway renounce their rights under Article XIX of the GATT 1994 and the WTO Agreement on 
Safeguards. WTO rights and obligations relating to global safeguard measures are however preserved in the context of trade relations between , on one side, Hong Kong, China, and, on the 
other side, Iceland, Liechtenstein, and Switzerland (Article 2.13, paragraph 2). The Agreement 
                                               
18 The established contacts are, for the EFTA: the EFTA Secretariat; and for Hong Kong, China: the 
Trade and Industry Department. 
19 The established contacts are, for the EFTA: the EFTA Secretariat; and for Hong Kong, China: the 
Trade and Industry Department. WT/REG322/1 
 
- 20 - 
 
  prescribes nevertheless that "in taking global safeguard measures, a Party shall, consistent with its 
obligations under the WTO Agreements, exclude imports of originating products from the other Party, in particular if such imports do not in and of themselves cause or threaten to cause serious injury".  
3.4.2.2  Bilateral safeguards 
3.34.  As a consequence of Hong Kong, China and Norway's agreement not to use safeguard 
measures against each other's originating products, the use of bilateral safeguard measures are 
also, prohibited between them. 
3.35.  Bilateral safeguard measures may howeve r be taken by Hong Kong, China; Iceland; 
Liechtenstein; or Switzerland in the context of tr ade between, on one side, Hong Kong, China, and, 
on the other side, Iceland, Liechtenstein, or Swit zerland. Where as a result of the reduction or 
elimination of customs duties under the Agreement, a product originating in one of these Parties is 
imported in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitute a "substantial cause" of serious injury or threat thereof to 
the domestic industry of like or directly competitive products in the importing Party, the importing 
Party may take bilateral safeguard measures.  
3.36.  Bilateral safeguards are to be taken to th e minimum extent necessary to remove or prevent 
the injury, subject to the provisions of Article 2.14.  They are to be taken only upon clear evidence 
that increased imports have caused or are threatening to cause serious injury pursuant to an investigation in accordance with the procedures laid down in the WTO Agreement on Safeguards. A Party intending to take such a measure shall notify the other Parties, except Norway, immediately 
and in any case before taking the measure. The notification shall contain all pertinent information, 
which shall include evidence of serious injury or  threat thereof caused by increased imports, a 
precise description of the product concerned, the proposed measure, as well as the proposed date 
of introduction, expected duration and timetabl e for the progressive removal of the measure. A 
Party that may be affected by the safeguard should be offered compensation in the form of substantially equivalent trade liberalization in relation to the imports from any such Party.  
3.37.  If the conditions are met, the Party may increase the rate of customs duty for the product 
to a level not to exceed the lesser of the MFN rate of duty applied at the time the action is taken or on the day immediately preceding the date of entry into force of the Agreement.  
3.38.  The Agreement requires the measure to be maintained for up to one year, extendable in 
very exceptional circumstances to a maximum period  of three years. Progressive liberalization of 
the measure shall take place at regular intervals during the period of application. Bilateral safeguards cannot be applied to products which have previously been subject to bilateral 
safeguards.  
3.39.  Within 30 days from the date of a notificati on of an intention to take a safeguard measure, 
the concerned Parties shall examine the information provided in order to facilitate the reaching of 
a mutually acceptable solution. If there is no agreement, the importing Party may take a bilateral 
safeguard measure. If the Parties cannot agree mutually on compensation, the Party against whose product the measure is taken may take compensatory action. Both the measure and the compensatory action must be notified to the other Parties, except Norway. In selecting the 
safeguard measure and the compensatory action, priority must be given to the action which least 
disturbs the functioning of the Agreement. The compensatory action shall normally consist of suspension of concessions having substantially equivalent trade effects or substantially equivalent 
to the value of the additional duties expected to  result from the safeguard. Compensatory action 
shall be applied only for the minimum period necessary to achieve the substantially equivalent trade effects and in any event only while the sa feguard is being applied. Once the measure is 
terminated, the customs duty should be the rate  which would have been in effect but for the 
measure.  
3.40.  In critical circumstances, where delaying a measure would cause damage which would be 
difficult to repair, provisional safeguards may be taken pursuant to a preliminary determination 
that there is clear evidence that increased import s constitute a substantial cause of serious injury 
or threat thereof to the domestic industry. A Party intending to take a provisional measure must WT/REG322/1 
 
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  notify the other Parties, except Norway, immediately. Provisional measures must be terminated 
within 200 days at the latest with the period for which the provisional measure is taken counting towards the period of any definitive bilateral sa feguards and any extension thereof taken under the 
Agreement. Any compensation shall be based on the total period of application of the provisional 
bilateral safeguard measures and of the bilateral safeguard measure.  
3.41.  A Party shall not simultaneously apply a global safeguard measure and a bilateral safeguard 
measure to the import of the same product. 
3.42.  Five years after the entry into force of the Agreement, the Parties, except Norway, shall 
review whether there is a need to maintain the po ssibility of taking bilateral safeguard measures 
between them. 
3.4.2.3  Other safeguards 
3.43.  According to Annex II of the Agreement, covering processed agricultural products, the 
Parties may take price compensation measures in the form of an import duty
20 and apply 
measures adopted upon export, in order to take account of differences in the cost of the 
agricultural raw materials incorporated into certain products originating in Hong Kong, China, that 
the Parties have identified.21 Notifications and consultations between the Parties, to periodically 
review the development of their trade in products eligible for price compensation measures are 
foreseen (Article 5 of Annex II). 
3.44.  The Parties shall also endeavour to avoid the imposition of restrictions to safeguard the 
balance of payment. Nevertheless, under Articles 2.17 (trade in goods) and 4.8 (investment, as it relates to investment relating to manufacturing operations), the Parties maintain their WTO rights 
and obligations in respect of serious balance of payments difficulties as established under the 
GATT 1994 and the WTO Understanding on the bala nce-of-payment provisions of the GATT 1994. 
3.4.3  Anti-dumping and countervailing measures 
3.45.  A Party shall not apply anti-dumping measures in relation to products originating in another 
Party (Article 2.12). This means that, when applied to their bilateral trade relations, the Parties renounce their rights under Article VI of the GATT 1994 and the WTO Agreement on 
implementation of Article VI. 
3.46.  As in the case of global safeguards, two different regimes are created by the Agreement for 
countervailing measures. Hong Kong, China and Norway shall not apply a countervailing measure against a product originating in the other Party (Article 2.11). Thus Hong Kong, China and Norway 
renounce their rights in their bilateral trade under Article VI of the GATT 1994 and the WTO 
Agreement on subsidies and countervailing measures (SCM). The WTO rights and obligations relating to subsidies and countervailing measures are however preserved in the context of trade 
relations between, on one side, Hong Kong, China, and, on the other side, Iceland, Liechtenstein, 
or Switzerland. Written notification and a period of at least 45 days of consultations between the affected Parties are however prescribed. Moreover, an investigation shall only be initiated when 
applying domestic producers represent at least 50 % of the total production of the like products 
produced by the domestic industry. 
3.4.4  Subsidies and State-aid 3.47.  The Parties' rights and obligations in respect of subsidies are governed by Article XVI of the 
GATT 1994 and the SCM Agreement, as well as by the WTO Agreement on Agriculture, as 
applicable (Article 2.11, and Article 6 of the AAs concluded between the Parties). 
                                               
20 The import duty shall be based on, but not exceed, the difference between the domestic price and the 
world market price of the agricultural raw materials in corporated into the products concerned (Article 1 of 
Annex II). 
21 See the Table attached to Annex II to the Agreem ent for a list of the products eligible for price 
compensation measures. WT/REG322/1 
 
- 22 - 
 
  3.48.  The Parties' rights and obligations on state trading enterprises are governed by Article XVII 
of the GATT 1994 and the Understanding on the Inte rpretation of Article XVII of the GATT 1994, 
which are incorporated into and made part of the Agreement mutatis mutandis (Article 2.10).  
3.4.5  Customs-related procedures 
3.49.  Annex V as referred to in Article 2.8, deals with trade facilitation. It requires the Parties to 
publish promptly and as far as practicable on the Internet, all laws, regulations and administrative 
decisions of general application relevant for trade in goods between the Parties. Moreover, it 
requires the Parties - to the extent possible - to publish in advance, including on the Internet, any 
laws and regulations of general application relevant to international trade in goods that they intend to adopt and provide interested persons an opportuni ty to become acquainted with them (Article 2 
of Annex V to the Agreement).  
3.50.  Enquiry points, which may be contacted in English via electronic means, shall be established 
for customs matters. The Parties shall also endeavour to consult the business community on its needs with regard to the development and implementation of trade facilitation measures. The 
administration of laws, regulations and administrative decisions of general application relevant to 
international trade in goods shall be uniform and impartial (Article 2 of Annex V).  
3.51.  Other measures to facilitate trade include the simplification of trade procedures and 
documentation requirements through simplified customs procedures for the efficient release of 
goods, enabling advance electronic submissions and processing of information and early release of goods prior to meeting all the import requirements  if the importer provides sufficient guarantees 
(Article 5 of Annex V). The Parties shall use risk management in the application of control by 
customs and other border agencies to determine which persons, goods or means of transport 
should be examined and the extent of such ex amination. They shall use compliance measurement 
to support risk assessment. The Parties may also conduct audit-based controls, such as quality 
control and compliance reviews, and requirements  for more extensive examinations of certain 
economic operators over a limited time period (Article 6 of Annex V). 
3.52.  Advance rulings, including on tariff classifi cation and the applied duty-rate of products, shall 
be issued in accordance with domestic legislation,  at the written request of an importer, exporter 
or producer. The Party may limit the validity of advance rulings to a period determined by its 
domestic legislation (Article 4 of Annex V). Advance ruling on origin is a best endeavour provision under the Agreement. Only advance ruling on tariff classification is worded as an obligation. 
3.53.  The possibility to negotiate mutual reco gnition of authorization, through authorized 
economic operator system, or security measures affecting international trade flows shall be afforded by one Party to the other. Relevant international standards and practices, in particular the 
WCO SAFE Framework of Standards, shall be considered (Article 7 of Annex V). 
3.54.  Other provisions cover the possibility for exporters and importers to submit their customs 
declarations without being obliged to turn to  customs brokers (Article 8 of Annex V); the 
reaffirmation of the Parties' rights and obligatio ns under Article VIII of the GATT 1994 in respect of 
fees and charges in connection with importation and exportation (Article 9 of Annex V); the right of the Parties not to require legalization of certain commercial documents (Article 10 of Annex V); the temporary admission of goods (Article 11 of  Annex V); and the necessity for importers, 
exporters and producers to have the right to at least one level of administrative or judicial appeal 
or review in accordance with a Party's domestic law (Article 13 of Annex V). 
3.55.  Each Party shall facilitate temporary import and export for inward processing and outward 
processing
22 in accordance with the relevant standards applied by the Party (Article 12 of 
Annex V). 
                                               
22 "temporary import for inward processing" means customs procedures under which certain goods 
conditionally can be brought into a Party and relieved  from payment of customs duties. Such goods must be 
intended for re-export within a specified period after having undergone manufacturing, processing or repair. 
"temporary export for outward proces sing" means customs procedures under which certain goods, which are in 
free circulation in a Party, may be temporarily exported  for manufacturing, processi ng or repair abroad and WT/REG322/1 
 
- 23 - 
 
  3.56.  A sub-committee on rules of origin, customs procedures and trade facilitation23 is 
established under Article 2.9 to monitor the im plementation, exchange information, review 
developments, prepare and coordinate positions of  the Parties, prepare technical amendments and 
assist the Joint Committee regarding (i) rule of origin and administrative cooperation; (ii) trade 
facilitation matters; (iii) matters related to the elimination of customs duties as well as import and 
export restrictions; and (iv) other trade in goods-related matters referred to it by the Joint Committee.  
3.5  Sector-Specific Prov isions of the Agreement 
3.57.   No sector-specific provision per se  exists in the Agreement. However, as indicated above, 
three AAs have been concluded jointly with the Agreement.  
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definition 
4.1.  Rules governing trade in services
24 are found in Chapter 3 of the Agreement. Additionally, 
specific disciplines on telecommunications services, referred to in Article 3.21, are contained in 
Annex IX to the Agreement, and specific disciplines on financial services, referred to in Article 
3.21, are contained in Annex VIII of the Agreemen t. Chapter 3 shall be without prejudice to the 
interpretation or application of other international agreements relating to investment and taxation 
to which one or several EFTA States and Hong Kong, China are parties.25 
4.2.  As regards the relationship between the Trad e in Services and the Investment chapters of the 
Agreement, Chapter 4 (on Investment) applies to commercial presence in sectors other than services sectors
26 (covered by Chapter 3). Services specifically exempted from the scope of 
Chapter 3 do not fall under the scope of Chapter 4 on Investment.  
4.3.  For the purpose of the Agreement, the de finitions of the terms "measure", "supply of a 
service", "measures by Members affecting trade in services", "commercial presence", "sector" of a 
service, "service of another Member", "monopol y supplier of a service", "service consumer", 
"person", "juridical person", "own ed", "controlled", and "affiliated", and "direct taxes", contained in 
Article XXVIII of the GATS are incorporated into  and made part of Chapter 3 of the Agreement.27 
"Natural person of another Party" means, with re spect to the EFTA States, a permanent resident of 
Hong Kong, China under its domestic laws who resides in the Area of any Party; and, with respect to Hong Kong, China, a natural person who under the domestic law of an EFTA State is a national or a permanent resident of that EFTA State who resides in the Area of any Party. "Juridical person 
of another Party" means a juridical person which is either (i) constituted or otherwise organized 
under the domestic law of that other Party, and is engaged in substantive business operation in the Area of any Party, or in the Area of any Member of the WTO and is owned or controlled by 
natural persons of that other Party or by juridical persons of that other Party engaging in 
substantive business operations in the Area of a Party; or (ii) in the case of the supply of a service through commercial presence, owned or controlled by natural persons of that other Party, or 
juridical persons of that other Party identified under (i).  
                                                                                                                                               
subsequently, within a specific period, re-imported with total or partial exemption from customs duties 
(Article 12 of Annex V, paragraphs 2 and 3). 
23 The mandate of the sub-committee is contained in Annex VI to the Agreement. 
24 The definition of the term "trade in services", for the purpose of the Agreement, is identical to the 
definition contained in Article I of the GATS, which is incorporated and made part of Chapter 3. "Trade in 
services" therefore covers the supply of a service thro ugh the four modes of supply defined in the GATS. 
Similarly, the terms, inter alia , "services" and "a service supplied in the exercise of governmental authority" 
are also, for the purpose of the Agreement, identical to the ones contained in the GATS. 
25 It is understood that any dispute settlement mechanism in an investment protection agreement to 
which one or several EFTA States and Hong Kong, China are parties is not applicable  to alleged breaches of 
Chapter 3. 
26 Chapter 4, on investment, is described in section 5.11 of this Factual Presentation. 
27 Wherever a provision of Chapter 3 provides that a provision of the GATS is incorporated into and 
made part of the Chapter, the term "Member" used in the GATS provision shall be understood as meaning 
"Party" and the term "territory" used in the GATS provisions shall be understood as meaning "Area". Note that, with respect of Norway: "Area" does not in clude the Norwegian territory of Swalbard. WT/REG322/1 
 
- 24 - 
 
  4.4.  In air transport services, measures affectin g air traffic rights, however granted, or measures 
affecting services directly related to the exercise of air traffic rights (except as provided for in 
paragraph 3 of the Annex on Air Transport Services to the GATS28), are not covered by the 
provisions of Chapter 3. The disciplines on MFN,  Market Access, and National treatment contained 
in Chapter 3 do not apply either to laws, regulations or requirements governing the procurement 
by governmental agencies of services purchased for governmental purposes and not with a view to commercial resale or with a view to use in the supply of services for commercial sale. 
4.5.  In relation to Chapter 3 (trade in services ), non-conforming measures are listed in Annex X, 
which contain the Parties' reservations on MFN and national treatment, and in relation with market 
access. A Party that intends to modify its reservations (non-conforming measures) or commitments under Annex X shall follow the procedures, to be adopted by the Joint Committee 
within 12 months following the entry into force of the Agreement.  
4.2  Denial of benefits 4.6.  The Agreement does not contain any specif ic provision on denial of benefits. However, 
through the definition of a "juridical person of another Party" contained in the Agreement, it seems 
implied that a Party may deny the benefits of the relevant chapters to a service supplier or investor, constituted or organized under the domestic law of a Party if that service supplier or 
investor is an enterprise owned or controlled by persons of a third party and if such persons of a 
third party have no substantive business activities in the Area of any Party.  
4.3  General provisions on trade in services 4.3.1  National and MFN treatment 
4.7.  Under Article 3.4, each Party shall accord immediately and unconditionally to services and 
service suppliers of any other Party treatment no less favourable than that it accords to like services and service suppliers of non-parties to the Agreement. Preferential treatment granted by 
a Party through existing or future economic integration agreements notified under Article V of the 
GATS or through existing or future labour market integration agreements notified under 
Article V bis of the GATS is, however, not subject to MFN obligation under the Agreement. Parties 
concluding such agreements after the entry into force of the Agreement shall notify the other 
Parties without delay, and, upon request by any other Party, negotiate the incorporation into the Agreement of a treatment no less favourable than that provided under such new agreement. Article 3.4 of the Agreement also incorporates th e provision of paragraph 3 of Article II of the 
GATS (advantages accorded to adjacent countries). 
4.8.  Under Article 3.6, each Party shall accord to  services and service suppliers of any other Party 
treatment no less favourable than that accorded to its own like services and service suppliers, thus 
granting national treatment. Formally different treatment may be accorded to services and 
services suppliers of any other Party provided that the conditions of competition are not modified in favour of domestic services or service suppliers compared to like services or service suppliers of 
any other Party. 
4.9.  The Parties' reservations on non-conforming  measures related to national and MFN treatment 
are contained in Annex X to the Agreement. 
4.3.2  Market access  
4.10.  Article 3.5 sets out the principle that the Parties shall not maintain or adopt either on the 
basis of a regional subdivision or on the basis of  its entire Area measures amounting to market 
access restrictions as defined in subparagraphs 2(a) to 2(f) of Article XVI of the GATS, through any 
of the four modes of supply. Moreover, unless otherw ise specified in a Party's list of reservations, 
where the cross-border movement of capital is an essential part of a service supplied through 
mode 1 (cross-border movement of service), that Party is committed to allow such movement of 
                                               
28 Accordingly, the provisions of Chapter 3 cover the measures affecting (a) aircraft repair and 
maintenance services; (b) the selling and marketing of air transport services; and (c) computer reservation system (CRS) services. WT/REG322/1 
 
- 25 - 
 
  capital. Similarly, and also unless otherwise specified in a Party's list of reservations, where a 
service is supplied through commercial presence, that Party is also committed to allow related transfers of capital into its Area.  
4.11.  The Parties' reservations on non-conforming measures related to market access are 
contained in Annex X to the Agreement. 
4.3.3  Local Presence 4.12.  There is no specific provision on local presence requirements in the Agreement. However, a 
number of non-conforming measures listed by the Parties in Annex X, make a reference to such 
requirements. 
4.3.4  Movement of Natural Persons 4.13.  Article 3.9 contains disciplines on the movement of natural persons. It applies to measures 
affecting natural persons who are service suppliers of a Party, and natural persons of a Party who 
are employed by a service supplier of a Party, in respect of the supply of a service. The Agreement 
however does not regulate measures affecting natural persons seeking access to the employment 
market of a Party, nor shall it apply to measures regarding nationality or permanent resident 
status, residence or employment on a permanent basis. 
4.14.  Natural persons covered by an EFTA State's List of reservations (under Annex X) or Hong 
Kong, China's List of Commitments on the Movement of Natural Persons (also under Annex X) 
shall be allowed to supply the service in accordance with the terms of that List.  
4.15.  All the Parties register in Annex X, their respective reservations and commitments for 
measures taken in relation with the entry, temporary stay, and presence of natural persons 
providing a service. They also describe in their respective lists different categories of natural 
persons allowed for entry and temporary stay. 
4.16.  In the case of Hong Kong, China, Appendix 1 to Annex X contains, inter alia , a list of 
commitments on the movement of natural persons of the EFTA States, which covers, wholly and 
exclusively, its commitments under Article 3.9 of the Agreement. The list specifies the conditions 
and limitations for entry and temporary stay, including the requirements and length of stay for (i) 
business visitors; (ii) intra-corporate transferees
29, including senior managers and specialists; and 
(iii) installers or servicers. 
4.17.  As regards the EFTA States, Appendices 2 to 5 of Annex X define the conditions and 
limitations for entry and temporary stay applicable  to natural persons from Hong Kong, China. The 
different categories of persons for which the EFTA States take individually conditional 
commitments are identified for specific categories of persons summarized below. Details can be found in the specific reservation listed in the Parties' respective Appendices. 
Table 4.1 EFTA States: Summary of comm itments on entry and temporary stay 
applicable to natural persons from Hong Kong, China
 
EFTA State Appendix of 
Annex X Reservation 
number Category of natural person granted conditional right of 
entry and temporary stay 
Iceland 2 18 i.  Intra-corporate transferees (temporary work permit 
and temporary residence permit); 
ii.Service sellers. 
Liechtenstei
n 3 7 i. Intra-corporate transferees: 
ii. Executive and senior managers; 
iii.Specialists. 
Norway 4 16 i.  Intra-corporate transferees; 
ii. Business visitors; 
iii. Contractual service suppliers; 
iv.Independent professionals. 
                                               
29 In respect of intra-corporate transferees, the commitm ents apply only to a selective list of sectors and 
sub-sectors attached to the List of commitments on movement of natural persons of Hong Kong, China. WT/REG322/1 
 
- 26 - 
 
  EFTA State Appendix of 
Annex X Reservation 
number Category of natural person granted conditional right of 
entry and temporary stay 
Switzerland 5 6 i. Intra-corporate transferees; 
a. Executive and senior managers; 
b. Specialists. 
ii. Business visitors respon sible for establishing 
commercial presence, and service salespersons; 
iii. Contractual service suppliers (employees of a juridical 
person);  
iv. Other beneficiary service providers (installers and 
maintainers) 
 
Source: WTO Secretariat based on  Annex X (Appendices 2 to 5). 
 
4.3.5  Performance requirements 
4.18.  There is no specific provision on performance requirements in the Agreement. However, a 
number of non-conforming measures listed by the Parties in Annex X, make a reference to such 
requirements. 
4.3.6  Senior managers and board of directors 4.19.  The Agreement does not contain specific provisions concerning the nationality of senior 
managers and of the Board of Directors. Howeve r, some non-conforming measures listed in 
Annex X contain requirements related to senior managers and/or board of directors (nationality and/or residence).  
4.4  Liberalization commitments 
4.20.  Liberalization modalities for Chapter 3 (trade  in services) follow a "negative list" approach 
which assumes that all sectors or sub-sectors covered by this chapter are liberalized, in terms of MFN and national treatment, and market access,  unless otherwise provided in the Parties' 
non-conforming measures in Annex X.  
4.21.  Appendix 1 of Annex X contains reservations  by Hong Kong, China. It is divided into three 
lists; the first lists the existing reserved non-conforming measures; the second lists the sectors, 
sub-sectors, or activities for which reservations are registered in relation with new or more 
restrictive measures that may be introduced in the future; and the third lists the commitments on movement of natural person s of Hong Kong, China.  
4.22.  Appendices 2-5 contain reservations by individual EFTA States (respectively Appendix 2 for 
Iceland, Appendix 3 for Liechtenstein, Appendix 4 for Norway, and Appendix 5 for Switzerland). 
Unlike in the case of Hong Kong, China's append ix, existing and future "reserved" measures are 
not separated and are registered by each EFTA State in a single list. 
4.23.  The sub-sections below present the Parties' liberalization commitments under the 
Agreement as compared to their GATS commitments. Structural differences between the GATS and the trade in services provisions of the Agreement have however to be taken into account when 
considering this part of the factual presentation. After summarizing MFN exemptions as well as 
horizontal limitations registered in the Agreement by each Party, Tables 4.2 to 4.6 summarize the 
specific commitments made by the Parties under the Agreement, by main sectors and subsectors, 
and compare them with the Parties' GATS Schedules.  The Tables also indicate in which sector or 
subsector Parties have made reservations. Improvements in existing GATS commitments are 
either a reduction in the limitations applicable to  national treatment, additional sub-sectors in 
which commitments are made, and/or new commitments. It should be however underlined that 
horizontal limitations in the GATS Schedules of Specific Commitments and reservations covering all 
sectors in Annex X of the Agreement, as well as MFN reservations or exemptions, have not been captured in the following Tables. Moreover, Mo de 4 commitments are also excluded from the 
Tables. It is thus indispensable for readers to read together the summaries of MFN and horizontal 
limitations, the summary Tables, and the Schedules of commitments themselves to have a full picture of the situation for each Party.  WT/REG322/1 
 
- 27 - 
 
  4.4.1  Iceland's liberalization commitments 
4.24.  In its GATS schedule, Iceland has made commitments in 113 out of 155 services sectors30, 
leaving in particular education services and health related and social services unbound. Under the Agreement, as a negative list approach is chosen, all services sectors are deemed to be liberalized 
unless a reservation is registered in Annexe s X (Appendix 2, in the case of Iceland). 
4.25.  Iceland's GATS MFN exemptions cover certain measures, in all sectors, aimed at promoting 
Nordic co-operation, as well as some measures related to European programmes and initiatives in 
the audio-visual services sector, also linked to production, distribution, and transmission of audio-
visual work. An exemption is also registered in relation with CRS and sales and marketing of air transport services. Under the Agreement, Iceland has 53 MFN reservations (out of a total of 91). 
For all sectors, MFN exemptions are applicable to (i) new services, and services not explicitly 
included in the WTO Services Classification List and services falling under other services in that list 
for which no corresponding CPC number is listed; (ii) services supplied in the exercise of governmental authority or considered as public ut ilities; (iii) preferences granted to third countries 
or EFTA States pursuant to agreements notified in accordance with Articles V and V bis of the 
GATS; (iv) measures aimed at promoting Nordic and Nordic-Baltic co-operation (including agreements of the Nordic council of Ministers); (v) measures for public or private services and 
activities that may involve ionizing radiation hazard; (vi) measures related to GMOs; (vii) 
preferences granted or to be granted under existing or future bilateral investment treaties to which 
Iceland is a party; (viii) certain measures related to foreign currency transfers and foreign investments; and (ix) preferential treatment that may result from Iceland's participation in the 
EEA and in the EFTA. Iceland also makes a qualif ied MFN reservation on the entry and temporary 
stay of people for business purposes. It also lists a number of measures for which MFN treatment is not guaranteed in sectors and sub-sectors.
31 Some energy-related services are also contained in 
Iceland's list of MFN reservations. It is assumed that, these specific reservations are related to the 
more general MFN reservations covering the prefer ences granted by Iceland in the context of its 
participation in regional integration initiatives (such as EEA, EFTA, Nordic Council in particular).  
4.26.  Under the GATS, Iceland's horizontal limitations cover mainly certain measures relating to 
the provision of services through mode 3 (some investment by foreigners and non-residents, as well as real-estate lease and acquisition) and mode 4 (unbound except the temporary entry and stay of executives, managers, specialists and service sellers). Some horizontal limitations on 
national treatment are registered in relation  with the membership of Iceland in the EEA.
32 Under 
the Agreement, while some of the above-mentione d MFN reservations are horizontal and apply to 
all sectors (such as for new services), Iceland also introduces specific horizontal limitations, 
usually on both market access and national treatment, related to, inter alia , acquisition of real 
estate and grant of subsidies. A reservation is also registered, for all sectors, in relation with certain nationality or residence requirements for senior managers and/or members of the board of 
certain forms of companies, as well as registration requirements for the constitution of certain 
enterprises. For all sectors, Iceland also reserves preferential treatment accorded to subsidiaries of 
third-country companies formed in accordance with the law of an EEA Member State or an EFTA Member State or the Faroe Islands.  
                                               
30 Source: WTO country profile, 2012. 
31 such as a number of business services (including legal services; accounting, auditing and 
book-keeping services; medical and dental services; vete rinary services; physiotherapists and para-medical 
personnel; services incidental to fishing; services incidental to mining; services incidental to energy distribution; placement and supply of personnel; investigation and security; printing and publishing; other 
business services); postal services; courier services, all audio-visual services, including a number of audio-visual production, dist ribution and radio and tele vision broadcasting services; some construction and 
related engineering services; education services in general; insurance services; services auxiliary to insurance; banking and other financial services; sewage services as well as refuse disposal waste; sanitation and similar services; hospital services and other human health and social services; as well as a number of transport services (including freight  and passenger maritime transport servic es; maintenance and repair of vessels; 
rental of vessels with crew and su pporting services of maritime transp ort; pushing and towing services, 
internal waterways transport; air tran sport services and maintenance and re pair of aircraft; space transport; 
rail transport services; pipeline transport, services au xiliary to all modes of transport and cargo-handling 
services (except for maritime cargo handling services); storage and warehouse services and customs clearance 
services).  
32 EEA: European Economic Area. WT/REG322/1 
 
- 28 - 
 
  Table 4.2 Iceland: comparison between the GATS and Agreement specific commitments 
in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing and 
future measures 
contained in one single 
list) 
1. Business services    
A. Professional Services Partial Similar  
B. Computer and Related Services  Partial Similar  
C. Research and Development Services  Partial Similar  
D. Real Estate Services  Partial Similar  
E. Rental/Leasing Services without Operators  Partial Similar  
F. Other Business Services Partial Similar  
2. Communication services     
A. Postal services --- Similar  
B. Courier services --- Similar  
C. Telecommunication services  Partial Limited  
D. Audiovisual services --- Similar  
3. Construction and related engineering 
services     
A. General construction work for buildings Full Similar  
B. General construction work for civil Engineering Full Similar  
C. Installation and assembly work  Full Similar  
D. Building completion and finishing work  Full Similar  
E. Other --- Similar  
4. Distribution services    
A. Commission agents' services Full Similar  
B. Wholesale trade services Full Similar  
C. Retailing services Full Similar  
D. Franchising Full Similar  
5. Education services    
A. Primary education services --- Similar  
B. Secondary education services  --- Similar  
C. Higher education services  --- Similar  
D. Adult education --- Similar  
E. Other education services  --- Similar  
6. Environmental services    
A. Sewage services Partial Similar  
B. Refuse disposal services Partial Similar  
C. Sanitation and similar services  Partial Similar  
D. Other Partial Similar  
7. Financial services    
A. All insurance and insurance-related services  Partial Similar  
B. Banking and other financial services Partial Similar  
8. Health related and social services    
A. Hospital services --- Similar  
B. Other Human Health Services --- Similar  
C. Social Services --- Similar  
D. Other --- New  
9. Tourism and travel related services     
A. Hotels and restaurants (including catering) Partial Similar  
B. Travel agencies and tour operators services Partial Similar  
C. Tourist guides services Full Limited  
10. Recreational and cultural and sporting 
services    
A. Entertainment services Partial Similar  
B. News agency services Partial Similar  
C. Libraries, archives, museums and other cultural 
services Partial Similar  
D. Sporting and other recreational services  Partial Similar  
11. Transport services     
A. Maritime Transport Services Partial Similar  
B. Internal Waterways Transport --- Similar  
C. Air Transport Services Partial Similar  
D. Space Transport  --- Similar  
E. Rail Transport Services --- Similar  WT/REG322/1 
 
- 29 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing and 
future measures 
contained in one single 
list) 
F. Road Transport Services Partial Similar  
G. Pipeline Transport  --- Similar  
H. Services auxiliary to all modes of transport  Partial Similar  
I. Other Transport Services  Full Similar  
 
General Note:   MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
    the Table. Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can always be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments) : Reservation listed in Annex X to the Agreemen t (existing or future non-conforming measures; 
services reservations). 
 
Source:  Draft Consolidated GATS Schedule of Specif ic Commitments (S/DCS/W/ISL/Rev.1), prepared by the 
Secretariat (in 2003) and Iceland's Schedules annexed to the Agreement.  
 
4.4.2  Liechtenstein's lib eralization commitments 
4.27.  In its GATS schedule, Liechtenstein has made commitments in 80 out of 155 services 
sectors33, leaving in particular construction and relate d engineering services and health related and 
social services unbound. Under the Agreement, as a negative list approach is chosen, all services sectors are deemed to be liberalized unless a reservation is registered in Annex X (Appendix 3, for Liechtenstein). Any activity that is not classified in  Chapters 5 to 9 of the CPC is not considered as 
a service covered by the Agreement.
34 
4.28.  Liechtenstein's GATS MFN exemptions cover certain measures, in all sectors, related to the 
grant of work permits and temporary entry authorizations in favour of EFTA and EU citizens, as 
well as some measures related to European programmes and initiatives in the audio-visual 
services sector, also linked to production, distribution, and transmission of audio-visual work. Exemptions are also registered for construction and related engineering (based on reciprocity); 
insurance and banking services, in the context of the monetary union with Switzerland, and in 
relation with its bilateral agreements on road transport. As for the other EFTA States, an exemption is also registered in relation with CRS and sales and marketing of air transport services. Under the Agreement, Liechtenstein registers six MFN reservations (out of 90 reservations). It has 
a qualified MFN reservation, applicable to all services sectors, related to the entry and temporary 
stay of people for business purposes. It also lists a number of measures for which MFN treatment is not guaranteed in sectors and sub-sectors such as a number of road transport services 
(passenger and freight) where bilateral road transport agreements apply; air transport services 
and specialty air services where cooperation takes place with Switzerland in the field of civil aviation; all audio-visual services, including a num ber of audio-visual production, distribution and 
radio and television broadcasting services su bject to a number of European initiatives. 
4.29.  Under the GATS, Liechtenstein's horizontal limitations also cover essentially certain 
measures impacting on the provision of services through mode 3 (establishment of commercial presence subject to the requirement that no objection for reasons of "national economy" is raised) 
                                               
33 Source: WTO country profile, 2012. 
34 Thus, the following sectors are not covered by th e Agreement: agriculture, forestry and fishery 
products, ores and minerals, electricit y, gas and water, food products, be verages and tobacco, textiles, apparel 
and leather products; other transporta ble goods, except metal products, machinery and equipment; and metal 
products, machinery and equipment. WT/REG322/1 
 
- 30 - 
 
  and through mode 4 (unbound except the temporary entry and stay of executives and senior 
managers, and specialists). Some horizontal limitations on national treatment are registered, for modes 1 and 2 regarding some subsidies and tax incentives and for mode 3 regarding the establishment and operation of forms of commercial presence, in relation with the membership of 
Liechtenstein in the EEA. Under the Agreemen t, while some of the above-mentioned MFN 
reservations are horizontal as they apply to all sectors (such as for with provision of services through mode 4), Liechtenstein also introduces some horizontal limitations on specific sectors. In 
the Agreement, according to the Parties, the limitations are the same as in the GATS, while 
adjusted to the negative list approach. There is no difference in content. For all sectors, preferential treatment accorded to subsidiaries of third-country companies formed in accordance 
with the law of an EEA Member State is reserv ed regarding national treatment. A limitation, 
covering both national treatment and market access, also applies to the establishment of 
commercial presence by a legal entity in case an objection for reasons of "national economy" exists.
35 A reservation is made for new services, applicable to all sectors except audio-visual; 
telecommunication, computer and advertising services; some business services (new auctioneering 
services); motion picture, projection services, video production and distribution services (limited to 
new audio-visual services); radio, television, and other entertainment services as well as other 
recreational services; and internet-based services. 
Table 4.3 Liechtenstein: comparison be tween the GATS and Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing 
and future measures 
contained in one 
single list) 
1. Business services    
A. Professional Services Partial Similar  
B. Computer and Related Services  Full Similar  
C. Research and Development Services  Full Similar  
D. Real Estate Services  --- Similar  
E. Rental/Leasing Services without Operators  Partial Similar  
F. Other Business Services Partial Similar  
2. Communication services     
A. Postal services --- New  
B. Courier services --- New  
C. Telecommunication services  Partial Similar  
D. Audiovisual services --- New  
3. Construction and related engineering 
services     
A. General construction work for buildings --- New  
B. General construction work for civil Engineering --- New  
C. Installation and assembly work  --- New  
D. Building completion and finishing work  --- New  
E. Other --- New  
4. Distribution services    
A. Commission agents' services Partial Similar  
B. Wholesale trade services Partial Similar  
C. Retailing services Partial Similar  
D. Franchising Full Similar  
5. Education services    
A. Primary education services Partial Similar  
B. Secondary education services  Partial Similar  
C. Higher education services  Partial Similar  
D. Adult education Partial Similar  
E. Other education services  --- New  
6. Environmental services    
A. Sewage services Full Limited  
                                               
35 Such reasons might be related to balanced proportion  of national and foreign capital, balanced ratio of 
foreigners in comparison with the numb er of resident population, balanced ratio of total number of jobs in the 
economy in comparison with the number of the resident population, balanced geographic situation, and 
balanced development of the national economy, between and within the sectors. As for establishment of 
commercial presence by an individu al, prior residence or permanent do micile in Liechtenstein might be 
required. WT/REG322/1 
 
- 31 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing 
and future measures 
contained in one 
single list) 
B. Refuse disposal services Full Limited  
C. Sanitation and similar services  Full Limited  
D. Other Full Limited  
7. Financial services    
A. All insurance and insurance-related services  Partial Similar  
B. Banking and other financial services Partial Similar  
8. Health related and social services    
A. Hospital services --- New  
B. Other Human Health Services --- New  
C. Social Services --- New  
D. Other --- New  
9. Tourism and travel related services     
A. Hotels and restaurants (including catering) Partial Improved  
B. Travel agencies and tour operators services Full Similar  
C. Tourist guides services Full Similar  
10. Recreational and cultural and sporting 
services    
A. Entertainment services --- New  
B. News agency services Full Similar  
C. Libraries, archives, museums and other cultural 
services --- Similar  
D. Sporting and other recr eational services  Full Limited  
11. Transport services     
A. Maritime Transport Services --- New  
B. Internal Waterways Transport --- New  
C. Air Transport Services --- New  
D. Space Transport  --- New  
E. Rail Transport Services --- New  
F. Road Transport Services Partial Similar  
G. Pipeline Transport  --- Similar  
H. Services auxiliary to all modes of transport  Full Similar  
I. Other Transport Services  --- New  
 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
  the Table.  
Partial: GATS commitments subject to some limitation(s ) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can always be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). 
: Reservation listed in Annex X to the Agreemen t (existing or future non-conforming measures; 
services reservations). 
 Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W/LIE), prepared by the 
Secretariat (in 2003) and Liechtenstein's Schedules annexed to the Agreement.  
 
4.4.3  Norway's liberalization commitments 
4.30.  In its GATS schedule, Norway has made commitments in 111 out of 155 services sectors, 
leaving in particular health related and social services unbound. Under the Agreement, as a 
negative list approach is chosen, all services sectors are deemed to be liberalized unless a reservation is registered in Annex X (Appendix 4, in the case of Norway). 
4.31.  Norway's GATS MFN exemptions cover certain measures, in all sectors, aimed at promoting 
Nordic co-operation, as well as some measures related to European programmes and initiatives in the audio-visual services sector, also linked to production, distribution, and transmission of WT/REG322/1 
 
- 32 - 
 
  audio-visual work. An exemption is also registered in relation with provisions of existing and future 
road transport agreements. Under the Agreement,  Norway has 28 MFN reservations (out of 83 
reservations). For all sectors, MFN exemptions are applicable to (i) new services, with some exceptions
36, and services not included in the WTO services classification list37, as well as services 
falling under "other services" without a CPC number38; (ii) services supplied in the exercise of 
governmental authority; (iii) preferences granted to third countries or EFTA States pursuant to 
agreements notified in accordance with Articles V and V bis of the GATS; (iv) measures aimed at 
promoting Nordic co-operation (including agreements of the Nordic council of Ministers); (v) 
measures for public or private services and activities that may involve ionizing radiation hazard; (vi) measures related to GMOs; (vii) preferences gr anted or to be granted under existing or future 
bilateral investment treaties Norway is a party; and (viii) subsidies which are not inconsistent with 
Norway's commitments under the GATS. Norway also  makes a qualified MFN reservation related to 
the entry and temporary stay of people for business purposes. It also lists a number of measures for which MFN treatment is not guaranteed in sectors and sub-sectors such as legal services; some 
construction and related engineering services; dist ribution services related to arm and explosives; 
distribution services related to pharmaceutical an d medical goods; all education services, including 
kindergartens; preschool education; all recreational, cultural and sporting services; maritime 
transport services, in relation to which preferences may be granted to countries with which Norway 
has bilateral agreements on mutual access to domestic maritime transport; as well as a number of transport services.
39 It is assumed that, some of these specific reservations are related to the 
more general MFN reservations covering the prefer ences granted by Norway in the context of its 
participation in regional integration initiatives (such as EEA, EFTA, and the Nordic Council in 
particular). Moreover, as a consequence of the negative list approach, some of Norway's MFN reservations cover areas that are not covered by GATS or where Norway considers that there is 
uncertainty as to how these areas are covered in positive lists (such as in the cases of GMOs and 
Ionising hazard).  
4.32.  Under the GATS, Norway's horizontal nation al treatment limitations cover essentially certain 
measures impacting on the provision of services through modes 3 and 4 (limitation to the 
purchase of real estate and requirement for grant of a concession for the operation of certain forms of companies). Some horizontal limitations on national treatment, for all sectors on the treatment of branches and agencies, are registered in relation with the membership of Norway to 
the EEA. Subsidies are unbound for modes 1 and 2 for all sectors. Under the Agreement, while 
some of the above-mentioned MFN reservations are horizontal as they apply to all sectors, Norway also introduces specific horizontal limitations, on market access or on national treatment or on 
both, related to, inter alia , acquisition of real estate and the registration of certain business 
enterprises. A reservation is also registered, for all sectors, in relation with certain nationality or residence requirements for senior managers and/or members of the board of certain forms of 
companies, as in Norway's GATS Schedule. For al l sectors, preferential treatment accorded to 
subsidiaries of third-party companies formed in accordance with the law of an EEA Member State.  
Table 4.4 Norway: comparison between the GATS and Agreement specific commitments 
in trade in services
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing 
and future 
measures 
contained in one 
single list) 
1. Business services    
A. Professional Services Partial Similar  
B. Computer and Related Services  Full Similar  
                                               
36 Exceptions to the reservation applying to new servic es cover: other se rvices auxiliary to all modes of 
transport, some international maritime transport servic es, computer and related services, technical testing and 
analysis services, architectural services, engineering services, and integrated engineering services. 
37 Except for maritime auxiliary services, customs clearance services, container station and depot 
services, and freight forwarding services. 
38 Except for mobile and person al communications services and systems, most value-added 
telecommunication services, and other environmental protection services. 
39 Such as some of the following services: freight and passenger road  transport services and cabotage; 
maintenance and repair of road transport equipment. WT/REG322/1 
 
- 33 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing 
and future 
measures 
contained in one 
single list) 
C. Research and Development Services  Partial Similar  
D. Real Estate Services  Partial Similar  
E. Rental/Leasing Servic es without Operators  Partial Similar  
F. Other Business Services Partial New  
2. Communication services     
A. Postal services --- New  
B. Courier services Full Similar  
C. Telecommunication services  Full Similar  
D. Audiovisual services --- Similar  
3. Construction and related engineering 
services     
A. General construction work for buildings Full Similar  
B. 
General construction work for civil Engineering Full Similar  
C. Installation and assembly work  Full Similar (mode 4) 
D. Building completion and finishing work  Full Similar  
E. Other Full Similar  
4. Distribution services    
A. Commission ag ents' services --- New  
B. Wholesale trade services Partial Improved  
C. Retailing services Partial Improved  
D. Franchising Full Similar  
5. Education services    
A. Primary education services Partial Similar  
B. Secondary education services  Partial Similar  
C. Higher education services  Partial Similar  
D. Adult education Partial Similar  
E. Other education services  --- New  
6. Environmental services    
A. Sewage services Full Similar  
B. Refuse disposal services Partial Similar  
C. Sanitation and similar services  Full Similar  
D. Other Full Similar  
7. Financial services    
A. All insurance and insu rance-related services  Partial Improved  
B. Banking and other financia l services Partial Improved  
8. Health related and social services    
A. Hospital services --- Similar  
B. Other Human Health Services --- Similar  
C. Social Services --- Similar  
D. Other --- Similar  
9. Tourism and travel related services     
A. Hotels and restaurants (including catering) Full Similar  
B. Travel agencies and tour op erators services Full Similar  
C. Tourist guides services Full Similar  
10. Recreational and cultural and sporting 
services    
A. Entertainment services --- Similar  
B. News agency services Full Similar  
C. Libraries, archives, museums and other 
cultural services --- Similar  
D. Sporting and other recreational services  --- New  
11. Transport services     
A. Maritime Transport Services Partial Improved  
B. Internal Waterways Transport --- Similar  
C. Air Transport Services Partial Improved  
D. Space Transport  --- New  
E. Rail Transport Services Partial Similar  
F. Road Transport Services Partial Improved  
G. Pipeline Transport  --- New  
H. Services auxiliary to all modes of transport  --- New  
I. Other Transp ort Services  --- New  WT/REG322/1 
 
- 34 - 
 
  General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
   the Table. 
Partial: GATS commitments subject to some limitation(s ) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can always be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). : Reservation listed in Annex X to the Agreemen t (existing or future non-conforming measures; 
services reservations). 
 Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W /NOR), prepared by the 
Secretariat (in 2003) and Norway's Schedules annexed to the Agreement.  
 
4.4.4  Switzerland's liberalization commitments 
4.33.  In its GATS schedule, Switzerland has made commitments in 115 out of 155 services 
sectors40, leaving in particular health related and social services unbound. Under the Agreement, 
as a negative list approach is chosen, all servic es sectors are deemed to be liberalized unless a 
reservation is registered in Annex X (Appendix 5). As for Liechtenstein, Appendix 5 any activity 
that is not classified in Chapters 5 to 9 of the CPC is not considered as a service covered by the Agreement. 
4.34.  Switzerland's GATS MFN exemptions cover certain measures, in all sectors, related to the 
granting of work permits and temporary entry authorizations for EFTA and EU citizens, as well as some measures related to European programmes and initiatives in the audio-visual services sector, also linked to production, distribution, and transmission of audio-visual work. Exemptions 
are also made for internal waterways transport (to allow transport services on the Rhine under the 
Mannheim Convention), in relation with insuranc e and banking services, in the context of the 
monetary union with Liechtenstein, and bilatera l agreements on road transport (passenger and 
freight). As for the other EFTA States, an exemption is also registered in relation with CRS and 
sales and marketing of air transport services. Un der the Agreement, Switzerland registers eight 
MFN reservations (out of 103 reservations). Switzerland lists a number of measures for which MFN 
treatment is not guaranteed in sectors and sub-sectors.
41 Switzerland also makes a qualified MFN 
reservation, for all sectors, related to the en try and temporary stay of people for business 
purposes.  
4.35.  Under the GATS, Switzerland's horizontal limitations cover essentially certain measures that 
have an impact on the provision of services through mode 3 (certain nationality requirements for 
senior managers and boards of directors, and limitations on the acquisition of real estate) and mode 4 (unbound except the temporary entry and stay of executives and senior managers, 
specialists, service sellers, persons responsible for the setting of a commercial presence, and 
persons who are employees of certain service providers with special contracts). Subsidies are unbound for modes 1 and 2 for all sectors. Under the Agreement, while some of the 
above-mentioned MFN reservations are horizontal as they apply to all sectors (such as for the 
entry and temporary stay of people for business purposes), Switzerland also introduces specific horizontal limitations, usually on both market access and national treatment, related to, inter alia , 
the acquisition of real estate and grant of subsidies. A reservation is also registered, for all sectors, 
in relation with certain residence requirements and limitations in connection with the acquisition of 
companies' shares related to the registration required for the constitution of certain enterprises. 
                                               
40 Source: WTO country profile, 2012. 
41 Such as some road transport rela ted transport services (freight ac ross the Alps; pass enger and freight 
transport based on bilateral agreemen t; prohibition of cabotage); internal waterways transport, related to 
transport on the Rhine river, some flag-registration legi slation, nationality requirem ents for some staff; some 
air transport and speciality ai r services (related to registrability and nationality requirements; authorizations by 
the civil air transport authorities); selected supportin g and auxiliary transport services, such as ground 
handling services; and telecommunication and audio-visual services (in relation with licensing requirements, 
broadcasting and production quotas, participation in European co-product ion programmes and other European 
initiatives). WT/REG322/1 
 
- 35 - 
 
  For all sectors, some limitations may be applied on the establishment of branches and domicile 
requirements related to the establishment of commercial presence in the Swiss Cantons may be applied. As in the case of Liechtenstein, there is  a reservation for new services, applicable to all 
sectors except audio-visual; telecommunication, computer and advertising services; some 
business services (new auctioneering services); motion picture, projection services, video 
production and distribution services (limited to new audio-visual services); radio, television, and 
other entertainment services as well as other recr eational services; and internet-based services. In 
relation with the federalist nature of Switzerland, it should be noted that, in relation with 
Switzerland's List of Reservations, "in case some fields of legislative competences are transferred 
in the future from federal to sub-federal level or vice-versa of from sub-federal to municipal level 
or vice-versa, Switzerland reserves the right to adapt correspondingly Appendix 5 to Annex X, 
containing the list of the Swiss reservations. The level of commitments shall not be decreased".
42 
Table 4.5 Switzerland: comparison betw een the GATS and Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing 
and future 
measures contained 
in one single list) 
1. Business services    
A. Professional Services Partial Similar  
B. Computer and Related Services  Full Similar  
C. Research and Development Services  Full Similar  
D. Real Estate Services  --- New  
E. Rental/Leasing Servic es without Operators  Partial Similar  
F. Other Business Serv ices Partial Similar  
2. Communication services     
A. Postal services --- New  
B. Courier services --- New  
C. Telecommunication services  Full Similar  
D. Audiovisual services --- New  
3. Construction and related engineering 
services     
A. General construction work for buildings Full Similar  
B. General construction work for civil Engineering Full Similar  
C. Installation and assembly work  Partial Similar   
D. Building completion and finishing work  Full Similar   
E. Other Full Similar   
4. Distribution services    
A. Commission ag ents' services Partial Similar   
B. Wholesale trade services Partial Similar   
C. Retailing services Partial Similar   
D. Franchising Full Similar   
5. Education services    
A. Primary education services Partial Similar   
B. Secondary education services  Partial Similar   
C. Higher education services  Partial Similar   
D. Adult education Partial Similar   
E. Other education services  --- New  
6. Environmental services    
A. Sewage services Full Similar  
B. Refuse disposal services Partial Similar   
C. Sanitation and similar services  Full Similar  
D. Other Full Similar   
7. Financial services    
A. All insurance and insu rance-related services  Partial Similar   
B. Banking and other financia l services Partial Similar   
8. Health related and social services    
A. Hospital services --- Similar  
B. Other Human Health Services --- Similar  
C. Social Services --- Similar  
                                               
42 See paragraph 5 of Appendix 5 to Annex X to the Agreement, containing the List of Reservation of 
Switzerland. WT/REG322/1 
 
- 36 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Non-conforming 
measures (existing 
and future 
measures contained 
in one single list) 
D. Other --- Similar  
9. Tourism and travel related services     
A. Hotels and restaurants (including catering) Partial Improved   
B. Travel agencies and tour op erators services Full Similar   
C. Tourist guides services Partial Improved   
10. Recreational and cultural and sporting 
services    
A. Entertainment services --- New  
B. News agency services Full Similar   
C. Libraries, archives, museums and other 
cultural services --- Similar  
D. Sporting and other recreational services  Full Limited  
11. Transport services     
A. Maritime Transport Services --- New  
B. Internal Waterways Transport Partial Similar   
C. Air Transport Services Partial Similar   
D. Space Transport  Partial Improved   
E. Rail Transport Services Partial Similar   
F. Road Transport Services Partial Similar   
G. Pipeline Transport  --- Similar  
H. Services auxiliary to all modes of transport  Full Similar  
I. Other Transport Services  --- New  
 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in
   the Table. 
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can always be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). : Reservation listed in Annex X to the Agreemen t (existing or future non-conforming measures; 
services reservations). 
 Source:  Draft Consol idated GATS Schedule of Specific Commitments (S/DCS/W/CHE), prepared by the 
Secretariat (in 2003) and Switzerland's Schedules annexed to the Agreement.  
 
4.4.5  Hong Kong, China's liberalization commitments 
4.36.  In its GATS schedule, Hong Kong, China has made commitments in 68 out of 155 services 
sectors43, leaving in particular education services, environmental services, and health related and 
social services unbound. Under the Agreement, as a negative list approach is chosen, all services 
sectors are deemed to be liberalized unless a reservation is registered in Annexe X (Appendix 1). 
4.37.  Hong Kong, China has no MFN exemptions  under GATS. Under the Agreement, Hong Kong, 
China does not register any MFN reservations neither on existing nor for future measures.  
4.38.  Under the Agreement, and irrespective of the possibility that it might be covered by the 
GATS or not, Hong Kong, China registers some horizontal limitations, covering market access and national treatment, for any future measure with respect to the provision of certain public services 
and certain social services established for a public purpose. The provision of subsidies is also 
reserved for all sectors. Moreover, a reference is made to Hong Kong, China's list of commitments 
on the movement of natural persons under  Annex X, Appendix 1 (Third List).  
                                               
43 Source: WTO country profile, 2012. WT/REG322/1 
 
- 37 - 
 
  Table 4.6 Hong Kong, China: comparison be tween the GATS and the Agreement specific 
commitments in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Existing  
non-
conforming 
measure(s) Reservation(s) 
for future 
measures 
1. Business services     
A. Professional Services Partial Similar   
B. Computer and Related Services  Partial Improved   
C. Research and Development Services  --- Similar   
D. Real Estate Services  Partial Improved   
E. Rental/Leasing Servic es without Operators  Partial Similar   
F. Other Business Serv ices Partial Similar  (*) 
2. Communication services      
A. Postal services --- Similar   
B. Courier services Partial Similar   
C. Telecommunication services  Partial Similar  (*) 
D. Audiovisual services Partial Similar   
3. Construction and related engineering 
services      
A. General construction work for buildings --- New   
B. 
General construction work for civil Engineering --- New   
C. Installation and assembly work  --- New   
D. Building completion and finishing work  Partial Similar  (*) 
E. Other Partial Similar  (*) 
4. Distribution services     
A. Commission ag ents' services --- New   
B. Wholesale trade services --- New   
C. Retailing services Partial Improved   
D. Franchising --- New   
5. Education services     
A. Primary education se rvices --- Similar   
B. Secondary education services  --- Similar   
C. Higher education services  --- Similar   
D. Adult education --- Similar   
E. Other education services  --- Similar   
6. Environmental services     
A. Sewage services --- New   
B. Refuse disposal services --- New   
C. Sanitation and similar services  --- New   
D. Other --- New   
7. Financial services     
A. All insurance and insu rance-related services  Partial Similar  (*) 
B. Banking and other financia l services Partial Similar  (*) 
8. Health related and social services     
A. Hospital services --- New  (*) 
B. Other Human Health Services --- New  (*) 
C. Social Services --- New   
D. Other --- New   
9. Tourism and travel related services      
A. Hotels and restaurants (including catering) Partial Similar   
B. Travel agencies and tour op erators services Partial Similar  (*) 
C. Tourist guides services --- New  (*) 
10. Recreational and cultural and sporting 
services     
A. Entertainment services --- New  (*) 
B. News agency services --- New   
C. Libraries, archives, museums and other 
cultural services Partial Similar  (*) 
D. Sporting and other recreational services  --- New   
11. Transport services      
A. Maritime Transport Services Partial Similar   
B. Internal Waterways Transport --- Similar   
C. Air Transport Serv ices --- Similar   
D. Space Transport  --- Similar   WT/REG322/1 
 
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  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared to 
the GATS Existing  
non-
conforming 
measure(s) Reservation(s) 
for future 
measures 
E. Rail Transport Services --- Similar   
F. Road Transport Services --- Similar   
G. Pipeline Transport  --- Similar   
H. Services auxiliary to all modes of transport  --- New   
I. Other Transport Serv ices  --- Similar   
 
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
   the Table. 
Partial: GATS commitments subject to some limitation( s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments under GATS. New: New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can always be seen as "improved". 
Improved: Overall improved commitments made under th e Agreement as compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
Limited: Some additional limitations (as compared to GATS commitments). : Reservation listed in Annex X to the Agreemen t (existing or future non-conforming measures; 
services reservations). 
(*): Reservation listed as future non-conformi ng measures but with a number of exceptions. 
 Source:  Draft Consolidated GATS Schedule of Spec ific Commitments (S/DCS/W/HKG), prepared by the 
Secretariat (in 2003) and Hong Kong, China's Schedules annexed to the Agreement.  
 
4.4.6  Sector specific commitments on trade in services 
4.39.  To complement the previous section, of  the main differences, by sectors, between the 
Parties' sector-specific non-conforming measures and their GATS commitments is given below. This section should also be read in conjunction with the Parties' Schedules contained in Annex X of the Agreement. 
4.4.6.2  Business services 
4.40.  All the Parties mirror most of their GATS commitments in the Agreement, which cover to a 
large extent but with some limitations, this sector. Under the Agreement, while all the EFTA States 
make a general reservation on the acquisition of real estate, a number of non-conforming 
measures are registered by all Parties on most  sub-sectors. However, as compared to GATS 
commitments, Hong Kong, China does not list any limitation for computer and related services as 
well as for real estate services (both bound with some limitations under the GATS). 
4.4.6.3  Communication services 4.41.  None of the Parties have bound postal services in the GATS, while no commitments were 
made for courier services by most of the Parties. Under the Agreement, because the negative list-
approach is taken, these sub-sectors are, by principle, committed. However, all Parties make 
reservations that allow them to take relatively similar restrictions than under the GATS regarding these two sub-sectors. For telecommunication services, a subsector in which full commitments 
were made in the GATS by Iceland, Switzerl and and Norway, and only partially opened by 
Liechtenstein, and Hong Kong, China, reservatio ns are made under the Agreement by all Parties 
except Norway. Iceland's commitments under the Ag reement go beyond its GATS reservations in 
that sector. Audio-visual services, unbound und er the GATS for the EFTA States and with 
commitments accompanied by reservations for Hong  Kong, China, remains, under the Agreement, 
subject to extensive limitations by all the Parties. 
4.42.  In addition to the provisions in Chapte r 3 of the Agreement, the Agreement establishes 
specific disciplines for telecommunication services (Annex IX), which are described below. WT/REG322/1 
 
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  4.4.6.4  Construction and related engineering services 
4.43.  Under the GATS, Iceland, Norway, and to a lesser extent Switzerland, have fully opened 
construction and related engineering services, while Liechtenstein keeps it unbound and Hong Kong, China has bound only some sub-sectors with some reservations. Under the Agreement, 
some non-conforming measures are recorded by all Parties. Hong Kong, China, improves its 
binding, though it lists some reservations, for general construction, work for civil engineering, general construction work for buildings (with limitations), as well as installation and assembly work 
(also with limitations).  
4.4.6.5  Distribution services 4.44.  Iceland has fully opened distribution services under the GATS, while the other EFTA States 
have bound it with a number of limitations. Ho ng Kong, China has left it unbound except for 
retailing services, which is bound but with limitations. Under the Agreement, some non-conforming 
measures are recorded by the EFTA States, while Hong Kong, China has bound largely the entire sector. Norway registers additional commitments for wholesale trade services and retailing 
services.  
4.4.6.6  Educational services 4.45.  Under the GATS, only education servic es are bound, though subject to extensive 
reservations, by Norway, Liechtenstein, and Switze rland, while Iceland and Hong Kong, China have 
left the whole sector unbound. Under the Agreement, though, by virtue of the negative list approach, the sector becomes entirely bound, all the Parties have a number of reservations resulting in their commitments having a substantially similar impact as under the GATS. 
4.4.6.7  Environmental services 
4.46.  Under the Agreement, Hong Kong, China does not register any limitations for environmental 
services, a sector which it has not bound under the GATS. All the EFTA States, which have bound 
the entire sector under the GATS, for some, with limitations on certain sub-sectors, list non-
conforming measures under the Agreement, some of  which are new compared to that in the GATS, 
in particular, Liechtenstein. 
4.4.6.8  Financial services 
4.47.  All the Parties broadly match their GATS commitments in insurance and insurance-related 
services. Though they have adjusted the extent and nature of their reservations and commitments to the evolution of their respective legislation related to financial services, the overall level of 
liberalization tends to remain similar to that in the GATS.  
4.48.  In addition to the provisions in Chapter 3, the Agreement establishes specific disciplines for 
financial services (Annex VIII), which are described below. 
4.4.6.9  Health related and social services 
4.49.  Under the Agreement, the whole sector, which is completely unbound under GATS for all the 
Parties, is covered though with a number of individual reservations by each Party, in all the 
subsectors, like for Hong Kong, China, or to some subsectors, like for the other Parties. Moreover, 
general reservations are made, to cover sectors or sub-sectors considered by each Party as services exercised under governmental authority an d/or services considered as public services.  
4.4.6.10  Tourism and travel related services 
4.50.  Under the Agreement, non-conforming measures are registered essentially by Iceland 
(appearing to add some limitations on some to urist guide services compared to its GATS 
commitments), and, to a more limited extent by Norway (on hotel and restaurant services) and by 
Hong Kong, China (on travel agencies and tour operators services). Liechtenstein and Switzerland 
improve some of their commitments compared to the GATS.  WT/REG322/1 
 
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  4.4.6.11  Recreational, cultural and sporting services 
4.51.  The sector is only partly covered in the GA TS by the Parties, with the exception of Iceland, 
which has already made commitments for all the sub-sectors, though with limitations that are essentially maintained under the Agreement. For the other Parties, the commitments in this sector 
are accompanied by a number of reservations. In particular, Liechtenstein and Switzerland 
introduce new limitations (as compared to the GATS) on some sporting and other recreational services. Hong Kong, China makes some reservations  for some services for the sub-sectors, which 
are mainly unbound under the GATS. 
4.4.6.12  Transport services 4.52.  Transport services are only partially covered by the Parties' commitments in the GATS. 
Moreover, a number of reservations have been re gistered for most bound sub-sectors. Under the 
Agreement, all subsectors are covered with, however, extensive limitations. In most cases, this 
amounts to the Parties replicating their market access and national treatment commitments under the GATS. New commitments are however notable in particular; (i) for Norway, with improved 
conditions for some maritime transport services and certain road transport services; (ii) for 
Liechtenstein, though limitations are introduced fo r most sub-sectors; (iii) for Switzerland, with 
improved conditions for some space transport services and additional limitations introduced for 
some services auxiliary to all modes of transport; and (iv) for Hong Kong, China, which has only 
bound - though partially - maritime transport services under the GATS, and which has commitments in the entire sector, th ough with extensive limitations. 
4.5  Sector specific provisions in trade in services 
4.53.  In addition to the provisions in Chapte r 3 of the Agreement on trade in services, the 
Agreement establishes specific disciplines for financial services (Annex VIII) and telecommunication services (Annex IX), both referred to in Article 3.21 of the Agreement. 
4.5.1  Financial services 
4.54.  Annex VIII to the Agreement contains additi onal disciplines on trade in financial services. 
Most of the provisions are based on the GATS Annex on financial services and on the 
Understanding on Commitments in Financial Services.
44 According to Annex VIII, each Party shall 
grant, on a national treatment basis, to financial service suppliers of any other Party established in its Area access to payment and clearing systems operated by public entities and to official funding and refinancing facilities available in the normal co urse of ordinary business. This is not intended 
to confer access to the Party's lender of last resort facilities. 
4.55.  Where membership or participation in, or access to, a self-regulatory body, securities or 
futures exchange or market, clearing agency, or any other organization or association, is required 
by a Party in order for financial service suppliers of any other Party to supply financial services on 
an equal basis with financial service suppliers of th e Party, the Party shall ensure that such entities 
accord national treatment to financial service suppliers of any other Party resident in its Area, 
unless otherwise specified in its list of reservations (in Annex X). The same applies where the Party 
provides directly or indirectly such entities, privileges or advantages in supplying financial services. 
4.56.  Specific transparency provisions, in addi tion to the generic ones in the Agreement, are 
contained in Article 3 of Annex VIII. They relate, inter alia , to the provision, to interested persons, 
of domestic requirements and procedures for completing applications relating to the supply of 
financial services, or the publication of requirements related to licence requirements. Applications for the supply of financial services submitted by service suppliers of other Parties shall be 
processed expeditiously (Article 4 of Annex VIII). 
4.57.  Notwithstanding any other provisions of Ch apter 3 of the Agreement, a Party shall not be 
prevented from adopting or maintaining measures for prudential reasons, including for the 
protection of investors, depositors, policy-holde rs, policy-claimants, persons to whom a fiduciary 
duty is owed by a financial service supplier, or any similar financial market participants; or 
                                               
44 Section B on Market Access is however not reproduced in Annex VIII. WT/REG322/1 
 
- 41 - 
 
  ensuring the integrity and stability of that Party's financial system. Moreover, each Party shall 
make their best endeavour to ensure that the Basel Committee's "Core principles for effective banking supervision", the standards and principles  of the International Association of Insurance 
Supervisors and the International Organisation of Securities Commissions' "Objectives and 
Principles of Security Regulation" are implemented and applied in its Area. Furthermore, nothing in 
Chapter 3 of the Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in 
the possession of public entities. 
4.58.  No Party shall take measures that prevent transfers of information into or out of its Area or 
the processing of financial information, including transfers of data by electronic means, or that, subject to importation rules consistent with international agreements, prevent transfers of 
equipment, where such transfers of information, pr ocessing of financial information or transfers of 
equipment are necessary for the conduct of ordinary business of a financial service supplier of another Party (Article 7 of Annex VIII). Nothing in Article 7 restricts the right of a Party to protect 
personal data, personal privacy and the confidentiality of individual records and accounts so long 
as such right is not used to circumvent the provisions of Chapter 3 of the Agreement.  
4.59.  Where prudential measures of a non-party are recognized by a Party in determining how the 
Party's measures relating to financial services shall be applied, that Party shall afford adequate 
opportunity for another Party to negotiate its acce ssion to such an agreement or arrangement, or 
to negotiate a comparable agreement or arrangement with it. In case of autonomous recognition, adequate opportunity shall be afforded to another Party to demonstrate that a similar treatment 
should be applicable to it. 
4.5.2  Telecommunication services  4.60.  Annex IX to the Agreement contains additional disciplines applicable to measures by Parties 
affecting trade in telecommunications services. Most of the provisions are based on the GATS 
Annex on telecommunications complemented by th e Reference paper developed by the Negotiating 
Group on Basic Telecommunications. Inter alia , it establishes that each Party shall maintain 
appropriate measures for the purpose of preventing suppliers who, alone or together, are a major 
supplier from engaging in or continuing anti-competitive practices.
45 Annex IX also covers topics 
such as interconnection (Article 3 of the Anne x); universal service (Article 4 of the Annex); 
licensing procedure (Article 5 of the Annex); regulatory authority (Article 6 of the Annex) and 
scarce resources (Article 7 of the Annex).  
4.61.  Annex IX does not apply to measures by a Party relating to broadcasting46 o r  t o  c a b l e  
distribution of radio or television programming. 
4.6  Regulatory provisions  
4.6.1  Domestic regulation 4.62.  Each Party shall ensure that the measures of general application affecting trade in services 
are administered in a reasonable, objective and impartial manner (Article 3.7). Practical judicial, 
arbitral or administrative tribunal or procedures shall be maintained or instituted by the Parties. Where authorization is required for the supply of a service, the competent authorities of each Party shall, within a reasonable period of time, inform the applicant of the decision concerning the 
application.  
4.63.  Each Party shall ensure that measures relating to qualification requirements and 
procedures, technical standards, and licensing requirements and procedures that it adopts or 
maintains are based on objective and transparent criteria, such as competence and the ability to 
supply the service and that licensing procedures ar e not in themselves a restriction on the supply 
of the service. The above does not, however, apply to a sector or subsector where a Party does 
                                               
45 "Anti-competitive practices" include: (i) engaging in anti-competitive cross-subsidization; (ii) using 
information obtained from competitors with anti-competitive results; and (iii) not making available to other 
service suppliers on a timely basis technical information about essential facilities and commercially relevant 
information which are necessary for them to supply services. 
46 The term "broadcasting" shall be defined as provid ed for in the relevant legislation of each Party. WT/REG322/1 
 
- 42 - 
 
  not have any obligations on Market access and National treatment under its list of reservations 
(Appendices to Annex X). The Parties shall take account of international standards of relevant international organizations whose membership is open to the Parties. 
4.64.  If the results of the negotiations related to  paragraph 4 of Article VI of the GATS enter into 
effect, and in relation to qualification requir ements and procedures, technical standards and 
licensing requirements, the Parties shall jointly review such results, and decide on their incorporation into the Agreement. 
4.65.  Each Party shall provide for adequate procedures to verify the competence of professionals 
of any other Party.  
4.66.  In Annex VII to the Agreement, which form s an integral part of Chapter 3 (on trade in 
services), all the Parties except Norway shall continue to develop and conclude within 12 months 
following the entry into force of the Agreement a set of comprehensive disciplines on domestic 
regulation which shall cover licensing requirements and procedures, qualification requirements and procedures, technical standards, as well as other related matters. These disciplines shall be 
incorporated into and supersede Annex VII, which does not apply to Norway.  
4.67.  Specific disciplines on domestic regulations concerning financial services, addressed 
previously under section 4.5.1 of this factual presentation are contained in Article 5 of Annex VIII 
to the Agreement. 
4.6.2  Recognition 4.68.  Article 3.8 contains specific provisions on the recognition of qualifications. It prescribes, 
inter alia , that, in relation with standards or criteria for the authorization, licensing or certification 
of service suppliers, due consideration should be given to any requests by one Party to another to 
recognise the education or experience obtained, requirements met, or licences or certifications granted in that other Party, or otherwise be accorded autonomously. 
4.69.  Where a Party recognizes, by agreement or arrangement, the education or experience 
obtained, requirements met, or licences or certifications granted in a non-party, that Party shall afford another Party adequate opportunity to negotiate its accession to such agreement or 
arrangement, whether existing or future, or to negotiate a comparable agreement or arrangement 
with it. Where a Party accords recognition autonomously, it shall afford adequate opportunity for another Party to demonstrate that the education or experience obtained, requirement met, or licences or certification granted, in the Area of that other Party should also be recognized. 
Recognition accorded through agreement, arrangement or autonomously shall be in conformity 
with the relevant provisions of the WTO Agreement.
47 
4.6.3  Subsidies 
4.70.  A Party which considers that it is adversely affected by a subsidy of another Party may 
request ad hoc consultations with that Party on such matters. The requested Party shall enter into such consultations, without prejudice to the rights and obligations of the Parties under Chapter 10 
of the Agreement establishing a dispute settlem ent mechanism under the Agreement or under the 
WTO Dispute Settlement Understanding. 
4.71.  The Parties also commit to review any disciplines agreed under Article XV of the GATS with 
a view to incorporating them into Chapter 3 of the Agreement. 
4.6.4  Transparency  
4.72.  The rights and obligations of the Parties in  respect of transparency shall be governed by 
paragraphs 1 and 2 of Article III and by Article III bis of the GATS, which are incorporated and 
made part of Chapter 3 of the Agreement. 
                                               
47 In particular paragraph 3 of Article VII of the GATS. WT/REG322/1 
 
- 43 - 
 
  4.6.5  Safeguards 
4.73.  The Parties shall endeavour to avoid the impo sition of restrictions to safeguard the balance 
of payment. Nevertheless, under Article 3.15,  the Parties maintain their WTO rights and 
obligations in respect of serious balance of paymen ts difficulties as established in Article XII of 
GATS. 
4.6.6  Business practices 4.74.  The rights and obligations of the Parties in  respect of business practices shall be governed 
by Article IX of the GATS, which is incorp orated into and made part of Chapter 3. 
4.6.7  Monopolies and exclusive service suppliers 4.75.  The rights and obligations of the Parties in respect of monopolies and exclusive service 
suppliers are governed by paragraphs 1, 2 and 5 of  Article VIII of the GATS, which is incorporated 
into and made part of Chapter 3. 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  The Parties shall ensure that their laws, regu lations, juridical decisions, administrative rulings 
of general application and their respective international agreements, that are relevant to the Agreement, are published, made publicly available,  or, if not publicly available, provided upon 
request. They shall also promptly respond to specific questions (Article 1.6).  
5.2.  Nothing in the Agreement shall require a Party to disclose information, in particular 
confidential information that would impede law enforcement or violate domestic law, or otherwise be contrary to the public interest, or would prejudice the legitimate commercial interests of any 
economic operator. The treatment of confidential information is also protected by Article 1.7. 
5.2  Current payments and capital movements 5.3.  There appears to be no provision on current payments and capital movements in the Chapter 
of the Agreement covering trade in goods matters . However, Article 3.14, relating to trade in 
service, and Article 4.7, relating to investment, establish that a Party shall neither apply restrictions on international transfers and payment for current transactions with another Party, nor 
apply restrictions on current payments and capital movements relating to commercial presence 
activities in non-services sectors. Nothing in Chapters 3 and 4 shall affect the rights and obligations of the Parties under IMF arrangements.  
5.3  Exceptions 
5.4.  Under Articles 2.15 (trade in goods), 3.16 (trade in services), and 4.9 (investment), the 
Parties maintain their rights and obligations in respect of general exceptions as provided for in Articles XX of the GATT 1994, and Article XIV of GATS, which are incorporated into and made part 
of the Agreement mutatis mutandis .  
5.5.  Security exceptions which are covered by Articles 2.16 (trade in goods), 3.16 (trade in 
services), and 4.9 (investment) are governed by  Article XXI of the GATT 1994, and Article XIV bis 
of GATS, which are incorporated into and made part of the Agreement mutatis mutandis . 
5.4  Accession and Withdrawal 5.6.  Article 11.6 permits any State that becomes a member of the EFTA to accede to the 
Agreement provided that the Joint Committee approves the accession on such terms and 
conditions as may be agreed between the Parties and the State.  WT/REG322/1 
 
- 44 - 
 
  5.7.  Under Article 11.7 any Party may withdraw  from the Agreement upon providing written 
notification to the Depositary. The withdrawal shall take effect six months after the date on which the notification is received by the Depositary. If Hong Kong, China withdraws from the Agreement, it shall expire when the withdrawal becomes e ffective. If any EFTA State withdraws from the 
Convention establishing the European Free Trade Association, it shall, on the same day as the 
withdrawal takes effect, cease to be a Party to the Agreement. If Hong Kong, China or any of the individual EFTA States withdraw from the AAs, it is understood that it is also withdrawing from the 
Agreement (Article 11.8).  
5.5  Dispute settlement 5.8.  Chapter 10 of the Agreement establishe s a dispute settlement mechanism between the 
Parties extending to the interpretation and applic ation of the Agreement. Disputes arising on the 
same matter under the Agreement and the WTO Agreements may be settled in either forum at the 
discretion of the complaining Party. Once the forum is  selected, it shall be used to the exclusion of 
the other in respect of the matter under dispute. Any decision to initiate a dispute with another 
Party under the WTO Agreement is to be notified to the other Parties (Article 10.1). 
5.9.  Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the 
Parties so agree. They may begin and be terminated at any time and may continue while 
proceedings of an arbitration panel established in accordance with Chapter 10 are in progress. 
These procedures shall be confidential and without prejudice to the Parties' rights in any further 
proceedings (Article 10.2). 
5.10.  The Parties shall at all times endeavour to agree on the interpretation and application of the 
Agreement, and shall make every attempt to re ach a mutually satisfactory solution through 
cooperation and consultations (Article 10.3). Requests for consultation shall be made in writing and shall be replied to within 10 days. Consultations shall take place in the Joint Committee, 
unless the Parties making and receiving the request agree otherwise. Consultations shall 
commence within 30 days from the date of receipt of the request (15 days for urgent matters, including on perishable goods).  
5.11.  A Panel may be requested if there is no response to the request for consultations within 
10 days of receipt of the request; if consultations are not held within 30 days (15 days for urgent matters); or if the dispute is not resolved through consultations within 60 days (30 days for urgent matters). The request for the establishment of a Panel shall identify the specific measures or other 
matter at issue and provide a brief summary of the legal and factual basis of the complaint. A copy 
of the request should also be made available to other Parties to the Agreement not involved in the dispute. In case those other Parties determine that they wish to participate in the dispute, they are 
entitled to make written submissions to the panel,  receive written statements and annexes, attend 
hearings and make oral statements. 
5.12.  The Panel will comprise three members
48, one each appointed by the disputing Parties, and 
a Chair. If any of the three Panel members have not been appointed within 45 days of the receipt 
of the request, the designations should be made  by the President of the International Court of 
Justice at the request of either Party to the di spute. Unless otherwise agreed by the disputing 
Parties, the terms of reference of the Panel is "to examine, in the light of the relevant provisions of 
the Agreement, the matter referred to in the reques t for the establishment of an arbitration panel 
pursuant to Article 10.4 and to make findings of law and fact together with the reasons, as well as recommendations, if any, for the resolution of th e dispute and the implementation of the ruling 
(Article 10.4). The Panel shall normally present its initial report within 90 days from the date of its 
establishment; a disputing Party may submit comments to this report within 14 days from the date of receipt of the report and a final report shall no rmally be issued by the Panel within 30 days from 
the presentation of the initial report. The proc edures applicable to the arbitration panel are 
contained in Article 10.6 as well as in the Model Rules of Procedure to be adopted by the Joint Committee within one year from the entry into force of the Agreement. 
                                               
48 The Panellists are required to have expertise or ex perience in law, international trade, other matters 
covered by the Agreement or in the resolution of disputes arising under international trade agreements; be 
chosen strictly on the basis of objectivity, reliability and sound judgement; be indepe ndent of and not affiliated 
with or take instructions from any Party; and comply with the standards of conduct established by the Model 
Rules of Procedures (Article 10.5). WT/REG322/1 
 
- 45 - 
 
  5.13.  The ruling by the panel is final and bindin g on the disputing Parties. The Party complained 
against shall promptly comply with the ruling or, at least, within a reasonable period of time that the Parties shall endeavour to agree on. In the absence of such agreement within 45 days, from 
the date of the issuance of the final report, either Party to the dispute may request the original 
arbitration panel to determine the length of the reas onable period of time, in light of the particular 
circumstances of the case. The ruling of the arbitration panel shall normally be given within 60 days from the date of receipt of  that request. If the arbitration panel has found that the Party 
complained against failed to comply with its ruling, or if the Party complained against has notified 
the complaining Party that it does not intend to comply with the ruling, consultations shall take place, if requested by the complaining Party, with a view to agreeing on a mutually acceptable compensation. If no such agreement has been reac hed within 20 days from the date of receipt of 
the request for consultation, the complaining Party is entitled to suspend the application of 
benefits granted under the Agreement. Such suspension of benefits shall be equivalent to the benefits affected by the measure or other matt er that the arbitration panel has found to be 
inconsistent with the Agreement. Suspension of benefits in the same sector or sectors as that 
affected by the measure shall be considered first. If not practical or effective, the complaining Party may suspend benefits in other sectors. A suspension shall be notified and the original 
arbitration panel may be requested to rule on th e grounds for such suspension. The ruling of the 
arbitration panel shall be given within 45 days from the date of receipt of the request. Benefits shall not be suspended until the arbitration panel has given its ruling. 
5.14.  Compensation and suspension of benefits shall be temporary and only applied by the 
complaining Party until the measure or other matter found to be inconsistent with the Agreement, 
has been withdrawn or amended so as to bring it into conformity with the Agreement, or until the 
Parties to the dispute have resolved the dispute otherwise. 
5.15.  At the request of a Party to the dispute, the original arbitration panel shall rule on the 
conformity with the final report of any implemen ting measures adopted after the suspension of 
benefits and, in light of such ruling, whether the suspension of benefits shall be terminated or 
modified. The ruling of the arbitration panel shall be given within 30 days from the receipt of the 
request. 
5.16.  Where the Parties to the dispute agree, an  arbitration panel may suspend its work at any 
time for a period not exceeding 12 months. The arbitration panel's authority for considering the 
dispute shall lapse past this period, unless the Parties to the dispute agree otherwise. An 
arbitration panel may, at any stage of the proceedings, prior to the release of the final report, propose that the Parties to the dispute seek to settle the dispute amicably (Article 10.8). 
5.6  Institutional framework 
5.17.  The Agreement, in Chapter 9, establishes a Joint Committee, comprising representatives of 
each Party. Its functions include supervising and reviewing the implementation of the Agreement, 
and facilitating the resolution of any disagreement that may arise regarding the interpretation or 
application of the Agreement, without prejud ice to the dispute settlement mechanism in 
accordance with Chapter 10 (Article 9.1). 
5.18.  The Agreement also establishes a sub-committee on rules of origin, customs procedures and 
trade facilitation (Article 2.9 and Annex VI to the Agreement). 
5.7  Relationship with other agreements concluded by the Parties 5.19.  According to Article 1.4, the Parties confirm their rights and obligations under the WTO 
Agreement and other agreements negotiated thereunder, to which they are a party, and any other 
international agreements to which they are party or which are applicable to a Party. According to the same Article, if a Party considers that ther e is an inconsistency between the Agreement and 
any other international agreements to which they are a party or which are applicable to a Party, 
the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution in accordance with customary rules of public international law. If a Party considers that the maintenance or establishment of customs unions, free trade areas, arrangements for frontier 
trade or other preferential agreements by another Party has the effect of altering the trade regime 
provided for by the Agreement, it may request consultations with that Party. WT/REG322/1 
 
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  5.20.  Table 5.1 below shows their participation in RTAs, notified and non-notified, other than the 
Agreement. 
Table 5.1 EFTA States and Hong Kong, China:  Participation in other RTAs (notified and 
non-notified in force), as of 9 July 2013  
Partner / 
Agreement Date of entry 
into force Type of 
agreement GATT/WTO Notification 
EFTA STATES - COLLECTIVELY 
Montenegro 01.09.12 Goods 2012 GATT Art. XXIV 
Ukraine 01.06.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Peru 01.07.11 Goods 2011 GATT Art. XXIV 
Colombia 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Albania 01.11.10 Goods 2011 GATT Art. XXIV 
Serbia 01.10.10 Goods 2010 GATT Art. XXIV 
Canada 01.07.09 Goods 2009 GATT Art. XXIV 
SACU 01.05.08 Goods 2008 GATT Art. XXIV 
Egypt 01.08.07 Goods 2007 GATT Art. XXIV 
Lebanon 01.01.07 Goods 2006 GATT Art. XXIV 
Republic of Korea 01.09.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Tunisia 01.06.05 Goods 2005 GATT Art. XXIV 
Chile 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Singapore 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Jordan 01.09.02 Goods 2002 GATT Art. XXIV 
FYROM 01.05.02 Goods 2000 GATT Art. XXIV 
Croatia 01.04.02 Goods 2002 GATT Art. XXIV 
Mexico 01.07.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Morocco 01.12.99 Goods 2000 GATT Art. XXIV 
Palestinian Authority 01.07.99 Goods 1999 GATT Art. XXIV 
Israel 01.01.93 Goods 1992 GATT Art. XXIV 
Turkey 01.04.92 Goods 1992 GATT Art. XXIV 
Iceland (EFTA 
Accession) 01.03.70 Goods 1970 GATT Art. XXIV 
EFTA 03.05.60 
01.06.02 Goods 
Services 1959 
2002 GATT Art. XXIV 
GATS Art. V 
INDIVIDUAL  EFTA  STATES 
Japan - Switzerland 01.09.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Iceland – Faroe 
Islands 01.11.06 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Faroe Islands – 
Switzerland 01.03.95 Goods 1996 GATT Art. XXIV 
EEA 01.01.94 Services 1996 GATS Art. V 
Faroe Islands – 
Norway 01.07.93 Goods 1996 GATT Art. XXIV 
EU-Norway 01.07.73 Goods 1973 GATT Art. XXIV 
EU-Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
EU-Switzerland/ 
Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
HONG KONG, CHINA 
China 29.06.03 Goods & Services 2003 GATT Art. XXIV & GATS V 
New Zealand 01.01.11 Goods & Services  2011 GATT Art. XXIV & GATS V 
 
Source:  WTO Secretariat. 
 SACU: Southern African Customs Union 
FYROM: Former Yugoslav Republic of Macedonia 
EEA: European Economic Area WT/REG322/1 
 
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  5.8  Government procurement 
5.21.  The rights and obligations of the Parties in respect of government procurement shall be 
governed by the provisions on government procurement in the WTO agreement applicable 
between Hong Kong, China and the respective EFTA States, which are incorporated into and made 
part of Chapter 6 of the Agreement, mutatis mutandis. 
5.22.  The Parties will cooperate in the Joint Co mmittee, with the aim of improving their suppliers' 
access to each other's government procurement markets and enhancing transparency in 
government procurement. 
5.9  Intellectual Property Rights 5.23.  Chapter 5 deals with commitments in intellectual property rights (IPRs). The Parties grant 
national treatment to each other's nationals, with exemptions from this obligation possible if they 
are in accordance with the substantive provisions of Article 3 and 5 of the WTO Agreement on 
trade-related aspects of intellectual property rights  (TRIPS Agreement). They also accord to each 
other's nationals MFN treatment, with exemptions possible if they are in accordance with Article 4 
and 5 of the TRIPS Agreement. 
5.24.  The Parties shall review the Agreement's pr ovisions on IPRs, upon request of any Party to 
the Joint Committee, with a view to further developing adequate levels of protection and 
implementation. 
5.25.  Annex XII to the Agreement, referred to in Article 5, contains substantive provisions 
governing the adequate, effective and non-discrimin atory protection of IPRs by the Parties, and 
the enforcement of IPR rights against infringement thereof, counterfeiting and piracy. 
5.26.  The Parties reaffirm their obligations under the TRIPS Agreement. They also commit to 
comply with the substantive provisions of the Pari s Convention (protection of industrial property); 
the Bern Convention (protection of literary and ar tistic works); the Rome Convention (protection of 
performers, producers of phonograms and broadcasting organizations); the Patent Co-operation 
Treaty as revised by the Washington Act of 2001; th e Budapest Treaty (international recognition of 
the deposit of microorganisms for the purposes  of patent procedure); the Nice Agreement 
(international classification of goods and services  for the purposes of the registration of marks); 
the WIPO Performances and Phonograms Treaty ; the WIPO Copyright Treaty; and the UPOV 
Convention (protection of new varieties of plants). 
5.27.  The IPRs covered by Annex XII to the Agreem ent are: copyright and related rights (Article 3 
of Annex XII); undisclosed information (Article 4 of Annex XII); patents (Article 5 of Annex XII); 
industrial designs (Article 6 of Annex XII); layout-designs of integrated circuits (Article 7 of Annex XII); trademarks (Article 8 of Annex XII); and geographical indications and indications of 
source (Article 9 of Annex XII). The level of protection granted by the Agreement is at least as 
high as that granted by the TRIPS Agreement and by other international IPRs agreements referred 
to therein. 
5.28.  The Parties agree to provide the legal means for interested parties to prevent trade in goods 
infringing IPRs (Article 10 of Annex XII). They shall adopt procedures to enable a right holder, who has valid grounds for suspecting that imports of counterfeit trademark or pirated copyright goods are taking place, to lodge an application in writing with the competent authorities, administrative 
or judicial, for the suspension of the release in to free circulation of such goods by the customs 
authorities. The Parties may adopt similar procedur es for suspected export or transhipment of the 
relevant goods (Article 11 of Annex XII). Following suspension, the rights holders will be given the 
possibility of inspecting the suspended goods in cluding through samples provided by the customs 
authority (Article 12 of Annex XII).  
5.29.  Finally, under Article 13 of Annex XII, the Parties agree to enhance their co-operation in 
intellectual property with a view to promoting economic growth, social development and cultural 
diversity.  WT/REG322/1 
 
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  5.10  Competition policy 
5.30.  Under Chapter 7 the Parties commit to coop erate and consult in their dealings with anti-
competitive practices.49 In the event that cooperation and consultation does not lead to any 
satisfactory result, the affected Party may request consultations in the Joint Committee with a 
view to reaching a mutually acceptable solution.  
5.31.  The Parties will review Chapter 7 in the Jo int Committee, within three years after the entry 
into force of the Agreement, with a view to elaborating further steps in light of future 
developments (Article 7.2). 
5.32.  The Parties may not have recourse to the dispute settlement mechanism established 
through Chapter 10 of the Agreement in respect of any issue arising from or relating to the Agreement's provisions on competition. 
5.11  Other 
5.11.1  Trade and environment 5.33.  Chapter 8 deals with matters related to tr ade and the environment and applies to measures 
adopted or maintained by the Parties affecting trade and investment-related aspects of 
environmental issues (Article 8.2). It recognizes the right of each Party to establish its own level of environmental protection and to adopt or modify accordingly its domestic law and policies in a 
manner consistent with the Agreement. The Parties will seek to ensure that their domestic law, 
policies and practices provide for and encourage high levels of environmental protection, consistent with standards, principles and agreemen ts referred to in the multilateral environmental 
agreements applicable to them (Article 8.3). The Parties commit not to weaken or reduce the level 
of environmental protection provided by their laws, regulations or standards with the sole intention 
to encourage investment from another Party or to seek or enhance a competitive trade advantage of producers or service providers operating in that  Party. They, also, will not waive or derogate 
from laws, regulations or standards in order to encourage investment from another Party or to 
seek or enhance a competitive trade advantage of producers or service providers operating in that 
Party (Article 8.4).  
5.34.  The Parties will strive to facilitate and promote trade and investment beneficial to the 
environment (Article 8.6). They will strive to  strengthen their co-operation in trade and 
environment in international fora (Article 8.7). The Parties must designate administrative entities 
which shall serve as contact points for trade and environment-related matters (Article 8.8). A 
Party may request consultations within the Joint Committee regarding any matter arising under 
Chapter 8. Chapter 10 of the Agreement does not apply to Chapter 8 (Article 8.8).  
5.11.2  Sustainable Development 
5.35.  Under Article 11.4, the Parties agree to review issues relating to sustainable development in 
light of international developments in this field.  
5.11.3  Provisions on investment 
5.36.  Chapter 4, entitled "investment" applies to commercial presence in sectors other than 
services sectors covered by Chapter 3 (on trade in services).
50  
5.37.  Articles 4.3 and 4.4 provide that each Part y shall accord national treatment to juridical and 
natural persons of another Party and to the commerc ial presence of such persons, subject to each 
Party's reservations, as set out in Annex XI. Article 4.4 allows for the modification or the addition 
of reservations. A Party may add a new reservation,  by way of written notification to the other 
                                               
49 The Parties recognise that certain practices or cond ucts of undertakings which have as their object or 
effect the prevention, restriction or distortion of comp etition are incompatible with the Agreement insofar as 
they may affect trade between the Part ies (Article 7.1, first paragraph). 
50 It is also understood that services specifically exempted from the scope of Chapter 3 do not fall under 
the scope of Chapter 4. WT/REG322/1 
 
- 49 - 
 
  Parties and provided that it does not affect the overall level of commitments of that Party under 
the Agreement. This may trigger consultation amongst the Parties.  
5.38.  The Parties may adopt, maintain or enforce any measure consistent with Chapter 4 that is in 
the public interest, such as measures to meet  health, safety or environmental concerns and 
reasonable measures for prudential purposes (Article 4.6, paragraph 1). Moreover, a Party should 
not waive or otherwise derogate from, or offer to waive or otherwise derogate from, such measures as an encouragement for the establishment, acquisition, expansion or retention in that 
Party of a commercial presence of persons of another Party or a third-party (Article 4.6, 
paragraph 2). 
5.39.  Article 4.5 contains provisions related to "key personnel". Each Party shall, subject to its 
domestic law, endeavour to grant natural persons of another Party who have established or seek 
to establish commercial presence in that Party, and key personnel employed by natural or juridical 
persons of another Party, temporary entry and stay in that Party for the purpose of engaging in economic activities connected with commercial presence. Each Party shall also endeavour to 
permit natural or juridical persons of another Party, and their commercial presence, to employ, in 
connection with commercial presence, any key personnel of the natural or juridical person's choice regardless of nationality and citizenship provided that such key personnel has been permitted to 
enter, stay and work in that Party and that th e employment concerned conforms to the terms, 
conditions and time limits of the permission gran ted to such key personnel. Finally, the Parties 
shall endeavour to grant temporary entry and stay and provide any necessary confirming 
documentation to the spouse and minor children  of a person who has been granted temporary 
entry, stay and authorization to work. The spou se and minor children shall be admitted for the 
period of the stay of that person. 
5.40.  As part of the periodic review of the Chapter on investment, the Parties undertake to review 
at least every three years the status of the reservations set out in Annex XI with a view to 
reducing or removing the reservations. Moreover, a Party may, at any time, either upon request of 
another Party or unilaterally, remove in whole or in part, one or more of its respective reservation.  
5.11.4  Labour matters 
5.41.  Under Article 11.3, the Parties commit to enhance their dialogue and co-operation on labour 
matters through the Agreement on Labour between Hong Kong, China and the EFTA States (hereinafter referred to as the Agreement on Labour) concluded by the Parties separately from, 
but alongside the Agreement.  
5.42.  The Agreement on Labour affirms the Partie s' respective commitment to the principles of 
the ILO Declaration on Fundamental Principles an d Rights at Work and its Follow-up adopted by 
the International Labour Conference at its 86
th Session in 1998. The Parties also recall the 
obligations to give effect to the ILO Conventions applicable to them and to make continued and sustained efforts towards ratifying or applying the "up-to-date" ILO Conventions, taking in to 
account their domestic contexts. The violation of fundamental principles and rights at work shall 
not be invoked or otherwise used as a legitimate comparative advantage. Labour laws, regulations, 
policies and practices shall not be used for trade protectionist purposes (Article 2). The Agreement on Labour recognizes the right of each Party to establish its own level of labour protection and to 
adopt or modify accordingly its domestic law and policies in a manner consistent with the 
above-mentioned principles. Each Party will seek  to improve the levels of labour protection 
(Article 3). The Parties will faithfully enforce their respective domestic labour law. They will not 
weaken or reduce the level of labour protection provided by their domestic laws with the sole 
intention to encourage investment from another Party or to seek or enhance a competitive trade advantage of producers or service providers operating in their respective Areas. They, also, will 
not waive or derogate from domestic laws in order to encourage investment from another Party or 
to seek or enhance a competitive trade advantage of producers or service providers operating in their respective Areas (Article 8.4).  WT/REG322/1 
 
- 50 - 
 
  5.43.  The Parties agree to establish a dialogue on labour matters of mutual interest (Article 5). 
The Parties should designate administrative entities which serve as contact points for the purpose of the Agreement on Labour. Any issue arising over the interpretation, implementation or 
application of the Agreement on Labour may at the request of a Party be settled amicably through 
consultations and negotiations. Neither Party shall refer any difference arising from the Agreement 
on Labour to any third party or international tribunal for settlement (Article 6). The Agreement on Labour entered into force on the same date as the Agreement (Article 7).  
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   WT/REG322/1 
 
- 51 - 
 
  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
The EFTA Market 
1. Tables A1.1, A1.3 and A1.5 show tariff liberalization by individual EFTA States1 by total, 
agricultural and non-agricultural products. Tabl es A1.2, A1.4 and A1.6 show market access 
opportunities for the top 25 global export products  of Hong  K ong , Chi na i n the  ind i v id ual EF T A 
States.  
a) Iceland 
2. In 2012, 70.1% of Iceland's tariff was duty free on an MFN basis; 74.3% of non-agricultural 
products were duty free while 55.6% of agricultural  products were duty free. As a result of the 
Agreement, 93.5% of Iceland's tariff became du ty free for imports from Hong Kong, China, of 
which 100% for non-agricultural products and 71.1% for agriculture. This gave Hong Kong, 
China's exporters to Iceland a 2.7% absolute margin  of preference overall, 3.5% in agriculture and 
2.5% for non-agricultural products.  
Table A1.1 Iceland: Indicators of MFN tariff rates and preferential rates for imports from 
Hong Kong, China  
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 4.4 15.0 70.1 11.4 26.6 55.6 2.5 9.5 74.3 
Hong 
Kong, 
China 2012 1.7 32.2 93.5 7.9 32.2 71.1 0.0 0.0 100.0 
 
a WTO Definition. 
 Note: For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included. 
Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on da ta provided by Iceland and the WTO-IDB. 
 
3. Table A1.2 gives an indication of additional market access in Iceland resulting from the entry 
into force of the Agreement for Hong Kong, China's top 25 global exports, which accounted for 51.7% of its global exports in 2009-2011; these corresponded to 70 lines of the Icelandic tariff at 
the six-digit level (using the HS 2007). In 2012, prio r to the entry into force of the Agreement, 22 
of these tariff lines already had (MFN) duty free a ccess to the Icelandic market. With the entry into 
force of the Agreement, in October 2012, the 48 tariff lines, which were (MFN) dutiable, became 
duty free for exports from Hong Kong, China.  
                                               
1 As a result of the Treaty between Switzerland an d Liechtenstein forming a Cu stoms Union on 29 March 
1923, Liechtenstein is represented by Switzerland in matters covered thereby (Article 2). Due to the Customs Union, products originating in Liechtenstein are considered as originating in Switzerland. WT/REG322/1 
 
- 52 - 
 
  Table A1.2 Iceland: Market access opport unities under the agreement for Hong Kong, 
China's top 25 exports to the world  
Hong Kong, China's top export products in 2009-2011 Access Conditions to Iceland's 
import markets 
MFN (2012) Duty-
free in 
2012 HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines Duty-free 
Dutiable 
854231 -- processors and controllers, whether or 
not combined with memories, converters, logic circuits, amplifie rs, clock and timing 
circuits, or other circuits 5.9 0.0 1   
854239 -- other 5.0 0.0 1   
847330 - parts and accessories of the machines of 
heading 84.71 4.7 0.0 1   
851770 - parts 4.3 0.0 1   
710812 -- other unwrought forms 3.9 0.0 1   
852990 - other 2.9 3.8 1 1 1 
851762 -- machines for the reception, conversion 
and transmission or regeneration of voice, images or other data, including switching and routing apparatus 2.8 0.0 1   
710239 -- other 2.6 0.0 1   
854232 -- memories 2.0 0.0 1   
853400 Printed circuits. 1.9 0.0 1   
851712 -- telephones for cellular networks or for 
other wireless networks 1.9 0.0 1   
847170 - storage units 1.8 0.0 1   
844399 -- other 1.6 0.0 1   
853690 - other apparatus 1.1 0.0 1   
950300 Tricycles, scooters, pedal cars and similar 
wheeled toys; do lls' carriages; dolls; other 
toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds. 1.1 10.0  18 18 
950450 -video game consoles and machines, 
other than those of subheading 9504.30 1.1 10.0  1 1 
850440 - static converters 1.0 0.0 1   
711319 -- of other precious me tal, whether or not 
plated or clad with precious metal 0.9 10.0  1 1 
852580 -television cameras, digital cameras and 
video camera recorders 0.9 0.0 1   
910211 -- with mechanical display only 0.9 0.0 1   
852290 - other 0.9 7.5  1 1 
640399 -- other 0.7 15.0  1 1 
611020 - of cotton 0.7 15.0  1 1 
710691 -- unwrought 0.6 0.0 1   
852351 -- solid-state non-volatile storage devices 0.6 8.6 4 24 24 
Total of above 51.7  22 48 48 
 
Source: WTO estimates based on data provided by  Iceland, WTO-IDB and UNSD, Comtrade database. 
 
b) Norway 
4. In 2012, 83.5% of Norway's tariff was duty free on an MFN basis; 95.2% of non-agricultural 
products were duty free while 36.6% of agricultural  products were duty free. As a result of the 
Agreement, 84.3% of Norway's tariff became duty free for imports from Hong Kong, China, of which 95.4% for non-agricultural products and 39.8% for agriculture. This gave Hong Kong, China's exporters to Norway an insignificant marg in of preference overall, though a margin of 
preference for agricultural products of repres enting 1.2% (in absolute terms), is granted. 
 WT/REG322/1 
 
- 53 - 
 
  Table A1.3 Norway: Indicators of MFN tariff ra tes and preferential rates for imports from 
Hong Kong, China  
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 2.1 37.2 83.5 17.5 106.3 36.6 0.5 9.9 95.2 
Hong 
Kong, 
China 2012 2.1 38.0 84.3 16.3 120.5 39.8 0.5 9.9 95.4 
 
a WTO Definition.  Note: Tariff lines subject to in-quota ra tes are excluded in the computation. 
Based on the HS 2012 nomenclature.  Source:  WTO estimates based on data provided by Norway and the WTO-IDB. 
 
5. Table A1.4 gives an indication of additional market access in Norway resulting from the 
entry into force of the Agreement for Hong Kong, China's top 25 global exports, which accounted 
for 51.7% of its global exports in 2009-2011; th ese corresponded to 50 lines of the Norwegian 
tariff at the six-digit level (using the HS 2007). In 2012, prior to the entry into force of the 
Agreement, 49 of these tariff lines already had (MFN) duty free access to the Norwegian market. 
With the entry into force of the Agreement, in November 2012, the only tariff line which was not 
(MFN) duty free2 remained dutiable for expo rts from Hong Kong, China. 
Table A1.4 Norway: Market access opportuni ties under the agreement for Hong Kong, 
China's top 25 exports to the world  
Hong Kong, China's top export products in 2009-2011 Access Conditions to Norway's import 
markets 
MFN (2012) 
Remain 
Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of tariff 
lines Duty-
free 
Dutiable 
854231 -- processors and controllers, whether or 
not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits 5.9 0.0 1   
854239 -- other 5.0 0.0 1   
847330 - parts and accessories of the machines 
of heading 84.71 4.7 0.0 1   
851770 - parts 4.3 0.0 1   
710812 -- other unwrought forms 3.9 0.0 1   
852990 - other 2.9 0.0 4   
851762 -- machines for the reception, conversion 
and transmission or regeneration of voice, images or other data, including switching and routing apparatus 2.8 0.0 3   
710239 -- other 2.6 0.0 1   
854232 -- memories 2.0 0.0 1   
853400 Printed circuits. 1.9 0.0 1   
851712 -- telephones for cellular networks or for 
other wireless networks 1.9 0.0 1   
847170 - storage units 1.8 0.0 1   
844399 -- other 1.6 0.0 1   
853690 - other apparatus 1.1 0.0 3   
                                               
2 HS 611020: sweaters, pullovers, vests etc., knit or crocheted, from cotton. WT/REG322/1 
 
- 54 - 
 
  Hong Kong, China's top export products in 2009-2011 Access Conditions to Norway's import 
markets 
MFN (2012) 
Remain 
Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of tariff 
lines Duty-
free 
Dutiable 
950300 Tricycles, scooters, pedal cars and similar 
wheeled toys; dolls' carriages; dolls; other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds. 1.1 0.0 17   
950450 -video game consoles and machines, 
other than those of subheading 9504.30 1.1 0.0 1   
850440 - static converters 1.0 0.0 3   
711319 -- of other precious metal, whether or not 
plated or clad with precious metal 0.9 0.0 1   
852580 -television cameras, digital cameras and 
video camera recorders 0.9 0.0 1   
910211 -- with mechanical display only 0.9 0.0 1   
852290 - other 0.9 0.0 1   
640399 -- other 0.7 0.0 1   
611020 - of cotton 0.7 10.7  1 1 
710691 -- unwrought 0.6 0.0 1   
852351 -- solid-state non-volatile storage devices  0.6 0.0 1   
Total of above 51.7  49 1 1 
 
Source:  WTO estimates based on data provided by Norway, WTO-IDB and UNSD, Comtrade database. 
 
c) Switzerland (inclu ding Liechtenstein) 
6. In 2012, 18.7% of Switzerland's tariff was duty free on an MFN basis; 18.8% of non-
agricultural products were duty free while 18.3% o f  a g r i c u l t u r a l  p r o d u c t s  w e r e  d u t y  f r e e .  A s  a  
result of the Agreement, 81.9% of Switzerland' s tariff became duty free for imports from Hong 
Kong, China, of which 99.9% for non-agricultur al products and 29.9% for agriculture. As 
Switzerland's tariff is constituted by non- ad-valorem  duties and as ad valorem  equivalents are not 
available, information on average applied tariff cann ot be provided and, therefore, the margin of 
preference for Hong Kong, China's exports cannot be calculated.  
Table A1.5 Switzerland: Indicators of MFN ta riff rates and preferential rates for imports 
from Hong Kong, China  
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 ... … 18.7 … … 18.3 … … 18.8 
Hong Kong, 
China 2012 … … 81.9 … … 29.9 … … 99.9 
a WTO Definition. 
… Not available: Switzerland's tariff is subject to specific duties for which ad valorem  equivalents are 
not available. 
Note: Calculation excludes specific and in-quota rates. Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on data provided by Switzerland.  
7. Table A1.6 gives an indication of additional market access in Switzerland resulting from the 
entry into force of the Agreement for Hong Kong, China's top 25 global exports, which accounted 
for 51.7% of its global exports in 2009-2011; these corresponded to 40 lines of the Swiss tariff at the six-digit level (using the HS 2007). In 2012, prio r to the entry into force of the Agreement, 18 
of these tariff lines already had (MFN) duty free access to the Swiss market; the remaining 22 WT/REG322/1 
 
- 55 - 
 
  were (MFN) dutiable. With the entry into force of the Agreement, in October 2012, the 22 tariff 
lines, which were (MFN) dutiable, became du ty free for exports from Hong Kong, China. 
Table A1.6 Switzerland: Market access o pportunities under the agreement for Hong 
Kong, China's top 25 exports to the world  
Hong Kong, China's top export products in 2009-
2011 Access Conditions to Switzerland's import 
markets 
MFN (2012) 
Duty-free 
lines in 
2012 HS number and description of the 
product Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of tariff 
lines Duty-free 
Dutiable 
854231 -- processors and controllers, 
whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits 5.9 0.0 1   
854239 -- other 5.0 0.0 1   
847330 - parts and accessories of the 
machines of heading 84.71 4.7 0.0 1   
851770 - parts 4.3 0.0 1   
710812 -- other unwrought forms 3.9 0.0 1   
852990 - other 2.9 -- 1 1 1 
851762 -- machines for the reception, 
conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus 2.8 0.0 1   
710239 -- other 2.6 800 Fr./ 100 kg 
brut  1 1 
854232 -- memories 2.0 0.0 1   
853400 Printed circuits. 1.9 0.0 2   
851712 -- telephones for cellular 
networks or for other wireless networks 1.9 0.0 1   
847170 - storage units 1.8 0.0 1   
844399 -- other 1.6 0.0 1   
853690 - other apparatus 1.1 -- 1 4 4 
950300 Tricycles, scooters, pedal cars 
and similar wheeled toys; 
dolls' carriages; dolls; other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds. 1.1 29.5 Fr./ 100 kg 
brut  2 2 
950450 -video game consoles and 
machines, other than those of 
subheading 9504.30 1.1 67 Fr./ 100 kg 
brut  1 1 
850440 - static converters 1.0 -- 1 3 3 
711319 -- of other precious metal, 
whether or not plated or clad 
with precious metal 0.9 3999 Fr./ 100 
kg brut  1 1 
852580 -television cameras, digital 
cameras and video camera recorders 0.9 -- 1 1 1 
910211 -- with mechanical display 
only 0.9 0.17 Fr./ pièce  1 1 
852290 - other 0.9 -- 1 1 1 
640399 -- other 0.7 156.5 Fr./ 100 
kg brut  4 4 
611020 - of cotton 0.7 120 Fr./ 100 kg 
brut  1 1 WT/REG322/1 
 
- 56 - 
 
  Hong Kong, China's top export products in 2009-
2011 Access Conditions to Switzerland's import 
markets 
MFN (2012) 
Duty-free 
lines in 
2012 HS number and description of the 
product Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of tariff 
lines Duty-free 
Dutiable 
710691 -- unwrought 0.6 7 Fr./ 100 kg 
brut  1 1 
852351 -- solid-state non-volatile 
storage devices 0.6 0.0 1   
Total of above 51.7  18 22 22 
 
-- Combination of specific and duty-free lines.  Source: WTO estimates based on data provided by Switzerland and UNSD, Comtrade database. 
 
d) Hong Kong, China 
8. 100% of Hong Kong, China's tariff was duty free on a MFN basis in 2012, when the 
Agreement entered into force. Consequently, the Agreement did not result in any market access 
improvement for goods exports from EFTA States.  
9. Tables A1.7, A1.8 and A1.9 give an indication of additional access in Hong Kong, China's 
market resulting from the entry into force of the Agreement for each individual EFTA State's top 25 
global exports.  
10. Iceland's top 25 global exports accounted for 66.5% of its global exports in 2009-2011; 
these corresponded to 90 lines at the six-digit le vel (using the HS 2007). In the case of Norway's 
top 25 global exports, accounting for 75.8% of its global exports, these corresponded to 80 lines 
of Hong Kong, China's tariff. Switzerland's top 25  global exports accounted for 47% of its global 
exports, corresponding to 82 lines of Hong Kong , China's tariff. As 100% of Hong Kong, China's 
tariff was duty free on a MFN basis prior to October (respectively November) 2012, the dates of 
entry into force of the Agreement, no additional market access opportunities were created, directly 
from tariff concessions, for the EFTA States' exports to Hong Kong, China as compared with the 
situation prevailing before the entry into force of the Agreement.  
Table A1.7 Hong Kong, China: Market access opportunities under the agreement for 
Iceland's top 25 exports to the world  
Iceland's top export products in 2009-2011 Access Conditions to Hong 
Kong, China's import markets 
HS number and description of the product  Share in 
global 
exports 
(%) MFN (2012) 
Average MFN  
applied rate 
(%) No. of Duty-
free tariff 
lines 
760110 - aluminium, not alloyed 36.7 0.0 2 
230120 - flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 2.8 0.0 2 
720221 -- containing by weight more than 55 % of 
silicon 2.8 0.0 1 
300490 - other 2.2 0.0 26 
880240 - aeroplanes and other aircraft, of an 
unladen weight exceeding 15,000 kg 2.2 0.0 1 
030354 -- mackerel (scomber scombrus, scomber 
australasicus, scomber japonicus) 2.1 0.0 1 
030572 -- fish heads, tails and maws 1.5 0.0 1 
030579 -- other 1.5 0.0 1 
150420 - fats and oils and their fractions, of fish, 
other than liver oils 1.5 0.0 1 WT/REG322/1 
 
- 57 - 
 
  Iceland's top export products in 2009-2011 Access Conditions to Hong 
Kong, China's import markets 
HS number and description of the product  Share in 
global 
exports 
(%) MFN (2012) 
Average MFN  
applied rate 
(%) No. of Duty-
free tariff 
lines 
030331 -- halibut (reinhardtius hippoglossoides, 
hippoglossus hippoglos sus, hippoglossus 
stenolepis) 1.3 0.0 2 
760719 -- other 1.1 0.0 1 
030562 -- cod (gadus morhua, gadus ogac, gadus 
macrocephalus) 0.9 0.0 1 
030390 - livers and roes 0.9 0.0 1 
030531 -- tilapias (oreochromis spp.), catfish 
(pangasius spp., silurus spp., clarias spp., 
ictalurus spp.), carp (cyprinus carpio, 
carassius carassius, ctenopharyngodon 
idellus, hypophthalmichthys spp., cirrhinus 
spp., mylopharyngodo n piceus), eels 
(anguilla spp.), nile perch (lates niloticus) 
and snakeheads (channa spp.) 0.8 0.0 1 
030532 -- fish of the families bregmacerotidae, 
euclichthyidae, gadi dae, macrouridae, 
melanonidae, merlucciidae, moridae and muraenolepididae 0.8 0.0 1 
030539 -- other 0.8 0.0 1 
720229 -- other 0.8 0.0 1 
760511 -- of which the maximum cross-sectional 
dimension exceeds 7 mm 0.7 0.0 1 
030493 -- tilapias (oreochromis spp.), catfish 
(pangasius spp., silurus spp., clarias spp., ictalurus spp.), carp (cyprinus carpio, carassius carassius, ctenopharyngodon idellus, hypophthalmichthys spp., cirrhinus spp., mylopharyngodo n piceus), eels 
(anguilla spp.), nile perch (lates niloticus) and snakeheads (channa spp.) 0.7 0.0 1 
030494 -- alaska pollack (theragra chalcogramma) 0.7 0.0 1 
030495 -- fish of the families bregmacerotidae, 
euclichthyidae, gadi dae, macrouridae, 
melanonidae, merlucciidae, moridae and muraenolepididae, other than alaska pollack (theragra chalcogramma) 0.7 0.0 1 
030499 -- other 0.7 0.0 1 
902131 -- artificial joints 0.7 0.0 1 
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 
preparations not elsewhere specified or 
included, containing by weight 70 % or 
more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being 
the basic constituents of the preparations, 
containing biodiesel, other than waste oils 0.7 0.0 24 
271019 -- other 0.7 0.0 15 
Total of above 66.5 0.0 90 
 
Source: WTO estimates based on data provided by Ho ng Kong, China to the WTO-IDB and UNSD, Comtrade 
database. 
      
 WT/REG322/1 
 
- 58 - 
 
  Table A1.8 Hong Kong, China: Market access opportunities under the agreement for 
Norway's top 25 exports to the world  
Norway's top export products in 2009-2011 Access Conditions to Hong 
Kong, China's import markets 
HS number and description of the product  Share in 
global 
exports 
(%) MFN (2012) 
Average MFN  
applied rate 
(%) No. of Duty-
free tariff 
lines 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 36.2 0.0 1 
271121 -- natural gas 20.5 0.0 1 
760120 - aluminium alloys 2.4 0.0 1 
271020 - petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 
preparations not elsewhere specified or 
included, containing by weight 70 % or more 
of petroleum oils or of oils obtained from 
bituminous minerals, these oils being the 
basic constituents of the preparations, 
containing biodiesel, other than waste oils 2.3 0.0 24 
750210 - nickel, not alloyed 1.3 0.0 1 
271012 -- light oils and preparations 1.3 0.0 7 
030213 -- pacific salmon (oncorhynchus nerka, 
oncorhynchus gorbuscha,  oncorhynchus keta, 
oncorhynchus tschawytscha, oncorhynchus kisutch, oncorhynchus masou and oncorhynchus rhodurus) 1.3 0.0 1 
030214 -- atlantic salmon (salmo salar) and danube 
salmon (hucho hucho) 1.3 0.0 1 
271112 -- propane 1.2 0.0 1 
271019 -- other 1.0 0.0 15 
271113 -- butanes 0.9 0.0 1 
381800 Chemical elements doped for use in 
electronics, in the form of discs, wafers or 
similar forms; chemical  compounds doped for 
use in electronics. 0.7 0.0 1 
271111 -- natural gas 0.7 0.0 1 
890190 - other vessels for the transport of goods and 
other vessels for the transport of both 
persons and goods 0.6 0.0 1 
843143 -- parts for boring or sinking machinery of 
subheading 8430.41 or 8430.49 0.6 0.0 3 
271600 Electrical energy. (optional heading) 0.5 0.0 1 
292429 -- other 0.4 0.0 2 
030354 -- mackerel (scomber scombrus, scomber 
australasicus, scomber japonicus) 0.3 0.0 1 
851762 -- machines for the reception, conversion and 
transmission or regeneration of voice, images or other data, including switching and routing apparatus 0.3 0.0 7 
841370 - other centrifugal pumps 0.3 0.0 3 
280469 -- other 0.3 0.0 1 
480261 -- in rolls 0.3 0.0 2 
730890 - other 0.3 0.0 1 
890120 -tankers 0.3 0.0 1 
030351 -- herrings (clupea harengus, clupea pallasii) 0.3 0.0 1 
Total of above 75.8 0.0 80 
 
Source: WTO estimates based on data provided by Ho ng Kong, China to the WTO-IDB and UNSD, Comtrade 
database. WT/REG322/1 
 
- 59 - 
 
  Table A1.9 Hong Kong, China: Market a ccess opportunities under the agreement for 
Switzerland's top 25 exports to the world 
Switzerland 's top export products in 2009-2011 Access Conditions to Hong 
Kong, China's import markets 
HS number and description of the product  Share in 
global 
exports 
(%) MFN (2012) 
Average MFN  
applied rate 
(%) No. of Duty-
free tariff 
lines 
300490 - other 12.0 0.0 26 
300210 - antisera, other blood fractions and 
immunological products, whether or not 
modified or obtained by means of 
biotechnological processes 4.5 0.0 1 
300290 - other 4.2 0.0 5 
910221 -- with automatic winding 3.2 0.0 1 
711319 -- of other precious metal, whether or not 
plated or clad with precious metal 2.6 0.0 6 
271600 Electrical energy. (optional heading) 2.6 0.0 1 
293399 -- other 1.9 0.0 1 
910211 -- with mechanical display only 1.6 0.0 1 
910121 -- with automatic winding 1.5 0.0 1 
711011 -- unwrought or in powder form 1.4 0.0 1 
292429 -- other 1.1 0.0 2 
293719 -- other 1.0 0.0 1 
300420 - containing other antibiotics 1.0 0.0 11 
841199 -- other 0.9 0.0 1 
294190 - other 0.8 0.0 1 
902110 - orthopaedic or fracture appliances 0.8 0.0 1 
300439 -- other 0.8 0.0 1 
710239 -- other 0.7 0.0 2 
910129 -- other 0.7 0.0 1 
220290 - other 0.7 0.0 2 
711419 -- of other precious metal, whether or not 
plated or clad with precious metal 0.6 0.0 2 
710813 -- other semi-manufactured forms 0.6 0.0 1 
901890 - other instruments and appliances 0.6 0.0 10 
902150 - pacemakers for stimulating heart muscles, 
excluding parts and accessories 0.6 0.0 1 
090121 -- not decaffeinated 0.6 0.0 1 
Total of above 47.0 0.0 82 
 
Source: WTO estimates based on data provided by Ho ng Kong, China to the WTO-IDB and UNSD, Comtrade 
database.  
  WT/REG322/1  
 
- 60 - ANNEX 2 
Table A2.1 Summary of TRQ commitments undertaken by Switzerl and with regard to certain im ports from Hong Kong, China 
(WTO TRQ categories ) referred to in 
Annex 2 to the bilateral AA between 
Switzerland and Hong Kong, China 
 
Description of products (HS) Tariff Code 
 
(Only the tariff 
line covered by 
Switzerland's 
commitments to 
Hong Kong, 
China) Number of 
tariff lines 
covered by 
the WTO-
TRQ 
commitment  Tariff quota quantity 
of products under 
the WTO-TRQ 
(for all the tariff 
lines covered by the 
WTO-TRQ 
commitment, 
cumulated) MFN WTO in-quota rate 
(LIX Section I-B) Preferential in-
quota rate  
for Hong Kong, 
China 
(AA, Annex 2) 
(Q12) Bovine semen 05111010 1 20,000 (doses) 0.1 (CHF. per unit applied) Duty free 
(Q13) Cut flowers 06031110 
06031210 6 4,590 (metric tonnes) 12.5 (CHF. per 100 kg brut) 
25 (CHF. per 100 kg brut) Duty free 
Duty free 
(Q15) Fresh vegetables 07031013 
07031021 
07031031 
07031041 07031051 07031061 07031071 165 166,076 (tonnes) 0.2 (CHF. per 100 kg brut) 
2.9 (CHF. per 100 kg brut) 
2.9 (CHF. per 100 kg brut) 
2.9 (CHF. per 100 kg brut) 2.9 (CHF. per 100 kg brut) 2.9 (CHF. per 100 kg brut) 2.9 (CHF. per 100 kg brut) Duty free 
Duty free 
Duty free 
Duty free Duty free Duty free Duty free 
(Q17) Fresh apples, pears and quinces 08081022 
08081032 
08082022 
08082032 8 15,810 (tonnes) 4 (CHF. per 100 kg brut) 
5 (CHF. per 100 kg brut) 
2 (CHF. per 100 kg brut) 
5 (CHF. per 100 kg brut) Duty free 
Duty free 
Duty free 
Duty free 
(Q18) Fresh apricots, cherries, plums and sloes 08091018 
08091098 08092011 08094013 08094093 12 16,340 (tonnes) 3 (CHF. per 100 kg brut) 
5 (CHF. per 100 kg brut) 3 (CHF. per 100 kg brut) 3 (CHF. per 100 kg brut) 
10 (CHF. per 100 kg brut) Duty free 
Duty free Duty free Duty free Duty free 
(Q19) Other fresh fruit 08101011 
08102011 
08102021 
08109094 10 13,360 (tonnes) 3 (CHF. per 100 kg brut) 
5 (CHF. per 100 kg brut) 
5 (CHF. per 100 kg brut) 
7 (CHF. per 100 kg brut) Duty free 
Duty free 
Duty free 
Duty free 
(Q20) Fruit for cider 08081011 
08082011 2 172 (tonnes) 4 (CHF. per 100 kg brut) 
4 (CHF. per 100 kg brut) Duty free 
Duty free 
 Source: Prepared by the WTO Secretariat, based on the bilateral Agreement on Agriculture between Switzerland and Hong Kong, Chi na (AA) and on Switzerland 
Notification of imports under tariff quotas for the calendar year 2011 (See G/AG/N/CHE/58, dated 2 October 2012).  
__________