. /.   WORLD TRADE  
ORGANIZATION  WT/REG132/5 
30 March 2006 
 
 (06-1462) 
Committee on Regional Trade Agreements Original: English 
  
 
FREE TRADE AREA BETWEEN THE EFTA STATES AND CROATIA 
 
Questions and Replies
 
  
 The following communication, dated 27 March 2006, is being circulated at the request of the 
Delegation of the EFTA States.   This document reproduces the questions addressed  to the Parties and the responses submitted. 
The questions and replies set out below are or ganized in accordance with document WT/REG132/3. 
  
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I. BACKGROUND INFORMATION ON THE AGREEMENT  
3. Scope  
1. To assist the Members in their examination of the Agreement, please provide data on 
the number of tariff lines covered in this Agreem ent, including the Agricultural Agreements. 
For example, could the parties provide data on  the number of tariff lines fully liberalized, the 
liberalization schedule, the number of tariff lines subject to TRQs, the number of agricultural 
tariff lines covered in each agricultural agreement,  and the total number of tariff lines in each 
Party’s schedule. 
 See Annex. 
 
2. At the last meeting of this Committee, the Parties justified the limited coverage of 
agricultural products by explaining that tariff concessions have been granted in those areas in 
which trade between the parties was concentrated.  Could the parties please explain the rational 
for not liberalizing tariff lines in which there is no or limited trade? 
 Article XXIV GATT refers to “substantially all th e trade”.  There is no obligation to liberalize 
the whole agriculture sector. 
 
 
IV. OTHER 
 4. Evolutionary Clause 
 
3. Article 30, the “Evolutionary Clause”, provid es the Parties the opportunity to review the 
Agreement to “extend it to area s not covered therein”. Have th e Parties utilized or considered 
utilizing, this clause to extend tariff liberalization to additional products? 
 No it has not been used so far.   
  WT/REG132/5 
Page 2 EFTA-Croatia FTA  2004: number of tariff lines covered           
(tariff lines at 8-digit level)             
  EFTA Iceland Norway CH-FL  Croatia   
Agricultural products  (HS 01-24)  5,639 2,065 1,288 2,286  1,163   
DF 2,456 1,457 741 258  494   
RD 119   10 109  669   
Industrial products  (HS 25-97)  18,243 6,116 5,912 6,215  8,286   
DF 18,201 6,116 5,912 6,173  7,651   
RD          635   
All products  (HS 01-97)  23,882 8,181 7,200 8,501  9,449   
DF 20,657 7,573 6,653 6,431  8,145   
RD 119   10 109  1,304   
             
Notes:              
DF - Duty free              
RD - Reduced duties              
Source:  National Statistical Offices             
Agriculture:  The concessions are negotiated on a bilateral basis.           
             
             
Number of tariff lines subject to TRQs            
             
Croatia : 3 tariff lines are subject to TRQs , 2 at 4-digit level and 1 at 6-digit level          
Switzerland : 54 tariff lines are subject to  TRQs, all at 8-digit level            
Iceland and Norway  have no TRQ.              
             
Liberalization Schedule             
             
Industrial products: Croatia: the duties will gradually be eliminated, at the latest  by 1 January 2007. EFTA: total elimination of duties upon entry  into force.  
Fish:  Croatia: the duties will gradually be eliminated, at the latest  by 1 January 2009. EFTA: total elimination of duties upon entry  into force, except Switzerland and Liechtenstein  
may maintain duties on some products.            
All the other commitments  were valid directly upon entry into force of the agreement.         
 
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