WT/REG360/2  
21 March 2016  
(16-1624)  Page: 1/3  
Committee on Regional Trade Agreements  Original: English/Spanish  
 
  FREE TRADE AGREEMENT BETWEEN THE EFTA STATES AND BOSNIA AND HERZEGOVINA 
(GOODS) 
QUESTIONS AND REPLIES 
 The following communication, dated 17 March 2016, is being circulated at the request of the 
delegations of the EFTA States and Bosnia and Herzegovina.  
_______________ 
   This document reproduces the questions addressed to the Parties and the responses 
submitted. 
 Questions from the delegation of Mexico 
 Technical Barriers to Trade (section 4.1) 
 
1.1.  Paragraph 4.1: Has a common mechanism for publishing regulations been 
established, i.e. a single official journal or website? 
 The provisions on technical barriers to trade (Article 14) do not establish a mechanism for 
publishing technical regulations. However, Article 6.1 of the Agreement requires each Party to 
publish or otherwise make publicly available its laws, regulations, judicial decisions, administrative 
rulings of general application and the international agreements to which it is a party that may affect the operation of this Agreement. 
 
Safeguard mechanisms 
Bilateral safeguards 
 1.2.  Paragraph 3.34: Five years after entry into force of the Agreement, the Parties shall 
review in the Joint Committee whether there remains a need to maintain the possibility 
of taking bilateral safeguard measures. If  after the first review, the possibility is 
maintained, there shall be biennial reviews of the matter in the Joint Committee 
thereafter. 
Regarding paragraph 3.34, could the Part ies clarify the connection between the 
need to maintain the possibility of taking bilateral safeguard meas ures and the taking 
of bilateral safeguard measures? In other wo rds, if a bilateral safeguard measure were 
taken within the five-year period, would this  negate the possibility of taking further 
measures, or, conversely, af ter the measure was taken, would it be considered 
necessary to maintain the possibility of taking such measures? 
 Article 22 of the Agreement serves as a "safety net provision" for a Party whose domestic 
industry is facing a sudden flood of imports from another Party due to tariff liberalization under the 
Agreement. Paragraph 5 foresees a maximum period of three years for the duration of a bilateral 
safeguard measure. According to the provisions  set out in Article 22 of the Agreement, 
new bilateral safeguard measures cannot be applied if the Joint Committee decides to discontinue 
the possibility for the Parties to take bilateral safeguard measures. The review process ensures 
that bilateral safeguard measures would be availabl e to the Parties only if a particular need to 
maintain them continues to exist. WT/REG360/2 
- 2 - 
  Anti-dumping and countervailing measures 
 
1.3.  Paragraph 3.41: Anti-dumping measures, as  provided for under Article VI of the 
GATT and the WTO Agreement on Implementation of Article VI of the GATT 1994, are 
not permitted under the Agreement for products originating in another Party 
(Article 20). This is affirmed for Bosnia  and Herzegovina under Annex VIII of the 
Agreement. The Parties recognize that the e ffective implementation of competition rules 
may address economic causes leading to dumping. 
a. Regarding paragraph 3.41, in the event of  imports of the same article from a 
trading partner and other origins as well,  would these imports be cumulatively 
assessed pursuant to Article 3.3 of the Anti-Dumping Agreement, followed by 
exclusion of the trading partner's impo rts from the measure, or, conversely, 
would the imports not be cumulatively assessed? 
b. Also, could the Parties indicate which ar e the specific competition rules being 
considered in order to address econom ic causes that may lead to dumping 
among the Parties? 
 Article 20, paragraph 1 of the Agreement prohib its the application of anti-dumping measures 
between the Parties. This means that Party cannot open any investigation according to Article 3 
of the WTO Anti-Dumping Agreement against impo rts of another Party to the Agreement. Thus, 
in the event of imports of the same article from a trading partner and other origins as well, imports would not be cumulatively assessed.  
 
 Article 18 of the Agreement provides for rules on competition regarding anti-competitive behaviours which affect trade between the Parties. The Parties to the Agreement maintain their 
own specific competition rules in their separate jurisdictions. 
 Trade and sustainable development 
 1.4.  Paragraph 4.29: With regard to the promot ion of cooperation between enterprises 
mentioned in this paragraph, are such cooper ation activities already under way? If so, 
what are these activities and what do they involve? 
 The Agreement (Article 39) foresees that cooperation between enterprises in the area of 
sustainable development should be encouraged. Specific cooperation efforts have not yet been undertaken. 
 
Questions from the delegation of Thailand 
 
Investment 
 
1.5.  Paragraph 4.26: Please expl ain why Norway did not join others in committing 
"to refrain from arbitrary or discrimina tory measures regarding investments by 
investors of any of the other Parties"? 
 - As stated in Paragraph 4.26 that Norway  has not agreed to refrain from arbitrary 
or discriminatory measures regarding invest ments by investors of any other parties. 
Is there any mechanism or provision existing in the agreement that prevent a Party 
from relying on Investment measures that  are inconsistent with TRIMs or other 
WTO provisions? 
 
 Norway opted out of Article 26, paragraph 5 of  the Agreement to avoid any uncertainty as to 
whether this provision would create any obligations related to investment protection, which has been a very sensitive issue in Norway since the mid-1990s. 
 
 The Agreement does not contain a provisio n that prevents a Party from relying on 
Investment measures that are inconsiste nt with TRIMs or other WTO provisions. 
 WT/REG360/2 
- 3 - 
  Competition 
 
1.6.  Under the Agreement, "the Parties sh all cooperate in their dealings on 
anticompetitive practices with the aim of ending such practice s: (1) all agreement 
between undertaking and (2) abuse one or mo re undertaking of a dominant position." 
a. Thailand would like to know the reason why this agreement does not cover 
mergers & acquisition and unfair trade practices. 
b. Could you please elaborate on the proc edure for consultations, which may be 
requested by a Party within the Joint Committee? 
 The aim of the competition chapter is to pr event that the benefits of the Agreement are 
undermined by anti-competitive practices. Howeve r, the Parties to the Agreement maintain their 
own specific competition rules in their separate jurisdictions. The competition chapter focuses on 
the common denominators of the Parties' competition legislations. Anti-competitive behaviours, which are deemed incompatible with the proper f unctioning of the Agreement insofar as they may 
affect trade, are outlined in Article 18, paragraph 1 of the Agreement. Mergers and acquisitions are 
not considered per se as anti-competitive practices by the Parties.  
 The procedure for consultations under the Joint Committee is spelled out in Article 18 
paragraph 4 of the Agreement, which reads as follows:  
"If a Party considers that a given practice is incompatible […], it may request 
consultations within the Joint Committee. The Parties concerned shall give to the 
Joint Committee all the assistance required in order to examine the case and, where appropriate, eliminate the practice objected to. If the Party concerned fails to put 
an end to the practice objected to within the period set by the Joint Committee, or 
if the Joint Committee fails to reach an agreement after consultations, or after 30 days following referral for such consultations, the Party requesting consultations 
may adopt appropriate measures to deal with the difficulties resulting from the 
practice in question." 
 Because of the plurilateral nature of th e EFTA-Bosnia and Herzegovina FTA, a Joint 
Committee is established as the main forum for the Parties to discuss any issue arising under the 
Agreement (c.f. Article 43), including competition matters. It consists of representatives of the 
Parties. The rules of procedure of the Joint Commit tee are established pursuant to Article 43 of the 
Agreement. These rules are also applicable to consultations regarding competition matters. 
Consultations in the Joint Committee are not open to the public. 
 
__________