WORLD TRADE  
ORGANIZATION  WT/REG87/R/B/3 
G/L/780 19 June 2006 
 
(06-2948) 
Committee on Regional Trade Agreements Original:   English 
  
 
EFTA-CZECH REPUBLIC FREE TRADE AREA 
 
Biennial Report on the Operation of the Agreement
 
  
 The following communication, dated 7 June 2006, is being circulated at the request of the 
Delegations of the EFTA States (Iceland, Liechtenstein , Norway and Switzerland).  It is organized in 
accordance to the Standard Format  for Information on Regional Trade Agreements (WT/REG/W/6). 
 
_______________ 
 
 
 In accordance with the guidelines approve d by the Council for Trade in Goods
1, as 
recommended by the Committee on Regional Trade Agreements2 and the reporting schedule 
established by the WTO Secretariat in WT/REG/W/33,  the Parties to the Agreement establishing the 
free trade area between the EFTA States and the Czech Republic (FTA) he rewith provide their 
biennial report on the operation of the agreement covering the period of July 2001 to April 2004. The 
last such report was issued on 5 September 20013. 
 
Main developments  
 In the reporting period, the Joint Committee met once on 25 November 2002 and adopted three Joint Committee decisions. For further details , see annex I. The agreement ceased to exist on 1 
May 2004, when the Czech Republic became  a member of the European Union. 
  
I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership and dates of signature,  ratification and entry into force 
 The Agreement was signed on 20 March 1992, originally between the EFTA States and the 
Czech and Slovak Federal Republic (CSFR). Followi ng the dissolution of the CSFR on 31 December 
1992, a Protocol on the succession by the Czech Re public to the agreement was signed on 19 April 
1993.   The Agreement entered into force on 1 July 1992. Austria, Finland and Sweden ceased to be 
Parties to the FTA, following their withdrawal  from the EFTA Convention and accession to the 
European Union on 1 January 1995. Liechtenstein has applied it provisionally as of 1 January 1997. 
  
                                                     
 
1 G/L/286 
2 WT/REG/4 
3 WT/REG87/R/B/2 WT/REG87/R/B/3 
G/L/780 Page 2 
 
  4. Trade data 
 According to EFTA’s statistical sources, tr ade between the EFTA States and the Czech 
Republic experienced strong growth between 2000 and 2003. Total trade grew from 1.211 billion 
USD in 2000 to 2.205 billion USD in 2003, an increase of 82%. EFTA imports rose from 501 million 
USD in 2000 to 933 million USD in 2003 (86% increase). Exports increased from 710 million USD in 
2000 to 1.272 billion USD in 2003 (79% increase). Th e trade balance remain s in the EFTA States’ 
favour. 
 Among the EFTA States, Switzerland is the larg est trading partner with the Czech Republic. 
In 2003, Switzerland accounted for 64% of total tr ade, followed by Norway with 35% and Iceland 
with less than 1%. 
 
 Annex 2: trade statistics  
II. TRADE PROVISIONS 
1. Import restrictions & 
2. Export restrictions 
 On 1 January 2001, the Czech Republic abolis hed its remaining quantitative restrictions on 
imports and measures having equivale nt effect. Annex VII was therefore deleted from the agreement. 
 
3. Rules of origin 
 Protocol B was amended in 2001 taking the o ccasion of the HS revision 2002 for a formal 
consolidation and restructuring of the origin  protocols in the pan-European framework. 
  In 2002, a technical error in the specific list rule for ex 4114 in Appendix II to Annex A was corrected.  III. GENERAL PROVISIONS OF THE AGREEMENT 
5. Institutional framework 
 A Joint EFTA-Czech Republic Committee was established under the Agreement to supervise 
and administer its implementation. During the repor ting period, the seventh and last Joint Committee 
meeting took place in Prague on 25 November 2002.  
 The Agreement was replaced by the Agreem ent on the European Economic Area (EEA) and 
the bilateral agreements between Switzerland and the European Union 
 
ANNEX I 
 
Amendments To The EFTA-Czech Republic FTA Since 2001  
 
DC No. Adopted: In force: Title: Subject: 
CZ-D1/2001 21.12.01 01.01.02 Amendments to Protocol B Origin rules 
CZ-D1/2002 25.11.02 13.02.03 Amendments to Protocol B Origin rules 
CZ-D2/2002 25.11.02 13.02.03 Deletion of Annex VII Quantitative 
restrictions on imports  WT/REG87/R/B/3 
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  ANNEX II 
2000 2001 2002 2003 2001/00 2002/01 2003/02
                  In thousand US dollars    Percentage change
IMPORTS
Iceland 7,546 6,510 8,040 16,871 -13.7 23.5 109.8
Norway 136,842 169,635 251,813 259,697 24.0 48.4 3.1
Switzerland 356,641 398,499 543,443 656,536 11.7 36.4 20.8
EFTA 501,029 574,644 803,296 933,103 14.7 39.8 16.2
Share in EFTA's tot. imports 0.42% 0.49% 0.67% 0.67%
EXPORTS
Iceland 147 407 177 387 176.6 -56.6 119.0
Norway 261,422 166,203 302,417 503,813 -36.4 82.0 66.6
Switzerland 448,106 549,731 609,091 767,929 22.7 10.8 26.1
EFTA 709,675 716,342 911,685 1,272,129 0.9 27.3 39.5
Share in EFTA's tot. exports 0.50% 0.51% 0.60% 0.75%
IMPORTS + EXPORTS
Iceland 7,693 6,917 8,217 17,258 -10.1 18.8 110.0
Norway 398,263 335,839 554,230 763,510 -15.7 65.0 37.8
Switzerland 804,747 948,230 1,152,534 1,424,464 17.8 21.5 23.6
EFTA 1,210,703 1,290,986 1,714,981 2,205,232 6.6 32.8 28.6
Share in EFTA's total trade 0.46% 0.50% 0.63% 0.71%
-- no percentage calculated
Source: World Trade AtlasEFTA STATES' TRADE WITH THE CZECH REPUBLIC
16.870.39260504657768
0100200300400500600700800
Iceland Norway SwitzerlandEFTA States' trade with the Czech Republic
(2003 - million US dollars)
Imports
ExportsWT/REG87/R/B/3 
G/L/780 Page 4 
 
  EFTA STATES' TRADE WITH THE CZECH REPUBLIC BY SELECTED COMMODITIES (HS)
Source: World Trade Atlas 2001 2002 2003 2001 2002 2003 
IMPORTS In thousand US dollars In per cent
Iceland
Total imports from the Czech Republic 6,510 8,040 16,871 100.0 100.0 100.0 
In per cent of imports from the world 0.31% 0.38% 0.65%
HS 87 Vehicles (not railway) 2,881 2,379 3,320 44.3 29.6 19.7 
HS 84 Machinery, mechanical appliances 708 392 1,023 10.9 4.9 6.1 
HS 73 Iron and steel products 553 785 563 8.5 9.8 3.3 
Norway
Total imports from the Czech Republic 169,635 251,813 259,697 100.0 100.0 100.0 
In per cent of imports from the world 0.55% 0.75% 0.66%
HS 84 Machinery, mechanical appliances 13,633 27,277 69,943 8.0 10.8 26.9 
HS 73 Iron and steel products 18,687 42,953 49,103 11.0 17.1 18.9 
HS 87 Vehicles (not railway) 33,523 25,787 32,661 19.8 10.2 12.6 
HS 85 Electrical machinery 12,077 18,731 31,623 7.1 7.4 12.2 
HS 40 Rubber 3,804 4,081 6,450 2.2 1.6 2.5 HS 72 Iron and steel 12,470 5,136 5,434 7.4 2.0 2.1 
HS 94 Furniture and bedding 2,936 3,241 5,318 1.7 1.3 2.0 
HS 39 Plastic, plastic articles 2,330 4,516 5,247 1.4 1.8 2.0 
Switzerland
Total imports from the Czech Republic 398,499 543,443 656,536 100.0 100.0 100.0 
In per cent of imports from the world 0.47% 0.65% 0.68%
HS 84 Machinery, mechanical appliances 59,031 90,150 156,663 14.8 16.6 23.9 
HS 85 Electrical machinery 40,160 46,341 70,084 10.1 8.5 10.7 
HS 87 Vehicles (not railway) 44,953 60,794 69,058 11.3 11.2 10.5 
HS 73 Iron and steel products 23,575 28,381 29,975 5.9 5.2 4.6 HS 29 Organic chemicals 25,240 16,980 22,838 6.3 3.1 3.5 
HS 94 Furniture and bedding 24,209 18,609 21,100 6.1 3.4 3.2 
HS 39 Plastic, plastic articles 11,243 9,494 18,983 2.8 1.7 2.9 
HS 62 Woven apparel or clothing accessories 17,476 17,066 15,299 4.4 3.1 2.3 
HS 86 Railway vehicles 2,726 3,195 12,079 0.7 0.6 1.8 HS 95 Toys and sports equipment 3,507 7,128 11,959 0.9 1.3 1.8 
EXPORTS In thousand US dollars In per cent
Iceland
Total exports to the Czech Republic 407 177 387 100.0 100.0 100.0 
In per cent of exports to the world: 0.02% 0.01% 0.02%  
HS 30 Pharmaceutical products 101 13 270 24.7 7.2 69.8 HS 43 Furskin and artificial fur 29 46 102 7.2 26.0 26.5 
HS 62 Woven apparel or clothing accessories 0 4 4 0.0 2.2 1.0 
Norway
Total exports to the Czech Republic 166,203 302,417 503,813 100.0 100.0 100.0 
In per cent of exports to the world: 0.29% 0.50% 0.75%
HS 27 Mineral fuels, oil 118,478 254,509 441,393 71.3 84.2 87.6 
HS 85 Electrical machinery 3,239 4,271 11,029 1.9 1.4 2.2 
HS 99 Salvage and reparations 9,544 7,123 8,733 5.7 2.4 1.7 
HS 76 Aluminium and articles thereof 7,971 3,731 8,350 4.8 1.2 1.7 
HS 84 Machinery, mechanical appliances 4,356 6,404 4,918 2.6 2.1 1.0 HS 39 Plastic, plastic articles 2,518 4,313 4,500 1.5 1.4 0.9 
HS 03 Fish, crustaceans 3,755 3,180 3,554 2.3 1.1 0.7 
HS 48 Paper, paperboard 1,515 1,905 3,062 0.9 0.6 0.6 
Switzerland
Total exports to the Czech Republic 549,731 609,091 767,929 100.0 100.0 100.0 
In per cent of exports to the world: 0.67% 0.69% 0.76%
HS 30 Pharmaceutical products 114,277 149,815 184,785 20.8 24.6 24.1 
HS 84 Machinery, mechanical appliances 118,957 120,059 159,769 21.6 19.7 20.8 
HS 85 Electrical machinery 64,522 63,276 74,774 11.7 10.4 9.7 
HS 90 Optical, medical, surgical instruments 35,332 42,465 47,305 6.4 7.0 6.2 HS 73 Iron and steel products 24,975 22,467 34,433 4.5 3.7 4.5 
HS 39 Plastic, plastic articles 24,654 26,382 33,550 4.5 4.3 4.4 
HS 48 Paper, paperboard 13,206 17,341 22,019 2.4 2.8 2.9 
HS 29 Organic chemicals 8,600 8,500 16,584 1.6 1.4 2.2 
HS 32 Tanning, dye, paints, putty, inks 11,010 13,480 16,060 2.0 2.2 2.1 
HS 87 Vehicles (not railway) 9,023 9,882 15,013 1.6 1.6 2.0  WT/REG87/R/B/3 
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 EFTA States' trade with the Czech Republic 1993-2003
(in million US dollars)
02004006008001,0001,2001,400
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Imports
Exports
Source: World Trade Atlas