WORLD TRADE
ORGANIZATIONWT/REG87/R/B/2
G/L/473
5 September 2001
(01-4221)
Committee on Regional Trade Agreements Original:  English
EFTA-CZECH REPUBLIC FREE TRADE AREA
Biennial Report on the Operation of the Agreement
Communication from the Parties
The report below presents the information received from the European Free Trade
Association and the Permanent Mission of the Czech Republic, dated. 25 July 2001.  It is organized in
accordance to the Standard Format for Information on Regional Trade Agreements (WT/REG/W/6).
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The Agreement between the States of the European Free Trade Association (EFTA) and the
Czech Republic was examined in accordance with Article XXIV of GATT.  In accordance with theguidelines approved 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, the
Parties to the Agreement establishing the Free Trade Area between the EFTA States and the Czech
Republic herewith provide their biennial report on the operation of the Agreement covering the period
since 1999.  The Parties to the Agreement submitted a biennial report on the operation of theAgreement on 28 May 1999, circulated in WT/REGG87/R/B/1;G/L/353.
Main developments
The Parties have continued to pay attention to updating and upgrading the Agreement.
During the reporting period (1999-2000), the Joint Committee held one meeting on
14 November 2000, and has adopted three Joint Committee Decisions (amendments to Protocol B andAnnex II).  For further details, see Annex I.
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).  Following the dissolution of the CSFR on
31 December 1992, a Protocol on the succession by the Czech Republic 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 subsequent accession
to the European Union on 1 January 1995.  Liechtenstein has applied it provisionally as of
1 January 1997.  The Agreement can be consulted on the EFTA web page:
http://www.efta.int/library/legal/fta/czech/.
                                                     
1 G/L/286.
2 WT/REG/4.WT/REG87/R/B/2
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2. Trade Data
According to the EFTA Secretariat’s statistical sources, trade between the EFTA States and
the Czech Republic expanded by 24 per cent in the period from 1997 to 2000.  EFTA imports fromthe Czech Republic increased by 50 per cent and EFTA exports to the Czech Republic decreased by
8.5 per cent during the same period.
The trade balance between the two was in favour of the EFTA States in the period 1997
to 2000.  In 2000, EFTA exports to the Czech Republic amounted to 589 million US dollars while
imports from the Czech Republic amounted to 501 million US dollars.
Among the EFTA States, Switzerland was the Czech Republic’s largest trading partner
in 2000, accounting for 73.8 per cent of the trade, fo llowed by Norway with 25.5 per cent and Iceland
with 0.7 per cent.
In the period 1997 to 2000, the EFTA States’ total trade increased by 6.9 per cent, or in
absolute terms from 239.7 billion US dollars to 256.1 billion US dollars. Both import and export
figures showed the same positive trend.
In the period 1997 to 2000, the Czech Republic’s share of EFTA’s total trade with the world
has increased from 0.37 per cent to 0.43 per cent. With regard to other free trade partners, the share ofthe Czech Republic’s trade with the EFTA States’ to tal preferential trade (including trade with the
EU) increased from 0.52 per cent in 1997 to 0.59 per cent in 2000.
Detailed trade data can be found in Annex II.
II. TRADE PROVISIONS
1. Import Restrictions &
2. Export Restrictions
Both the EFTA States and the Czech Republic have dismantled and/or abolished customs
duties and quantitative restrictions in accordance with the timetables of the Agreement.  They havealso accelerated the gradual dismantling/abolishing of certain trade restrictions such as Icelandic,
Liechtenstein and Swiss customs duties of a fiscal nature.  It should be noted that the abolition of
these duties was done on an MFN basis.  The Parties have complied with all requirements set out in
the Agreement and all transitional periods have come to an end.
3. Rules of Origin
Since all Parties to the Agreement are included in the system of pan-European cumulation
system, annual amendments to Protocol on Origin Rules (Protocol B) have been made in 1999
and 2000 (see Annex I).WT/REG87/R/B/2
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III. GENERAL PROVISIONS OF THE AGREEMENT
5. Institutional Framework
A Joint EFTA-Czech Republic Committee has been established under the Agreement.  The
aim of the Joint Committee is to supervise and ad minister the implementation of the Agreement, as
well as to review the possibility of further remova l of obstacles to trade between the Parties.  The
Joint Committee is assisted by expert groups, in particular by the Sub-Committee on Customs and
Origin Matters.  Other expert groups can be convened, as agreed.  During the reporting period, the
sixth Joint Committee took place on 14 November 2000 in Geneva.WT/REG87/R/B/2
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ANNEX I
Amendments to the EFTA – Czech Republic FTA since 1999
Articles/
AnnexesDescription Amendments /
DeletionsRemarks Entry into
Force
Protocol B Rules of origin and
methods of
administrative co-
operationAmended JCD
of 28.09.1999Protocol B updated in line with
the updated rules on pan-
European cumulation.Entered into
force
01.01.2000
Annex II Fish and other
marine productsAmended JCD
of 14.11.2000The last exceptions for
freshwater fish were deleted.Entered into
force
14.11.2000
Protocol B Rules of origin and
methods of
administrative co-
operationAmended JCD
of 14.11.2000Protocol B updated in line with
the updated rules on pan-
European cumulation.Entered into
force
01.01.2001WT/REG87/R/B/2
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ANNEX II
Detailed Trade Data
Statistical information on:
• EFTA States’ trade with the Czech Republic 1997-2000
• EFTA States’ trade with the Czech Republic by selected commodities 1998-2000
• Development of EFTA States’ trade with the Czech Republic 1993-2000
• EFTA States’ trade with the world 1997-2000
• EFTA States’ trade with the world by selected commodities 1998-2000WT/REG87/R/B/2
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EFTA STATES' TRADE WITH CZECH REPUBLIC
1997 1998 1999 2000 1997/98 1998/99 99/2000
In thousand US dollars Percentage Change
IMPORTS
Iceland 6,188 9,680 10,482 7,544 56.4 8.3 -28.0
Norway 99,625 115,390 127,302 136,895 15.8 10.3 7.5
Switzerland 229,334 282,578 305,182 356,641 23.2 8.0 16.9
EFTA 335,147 407,648 442,966 501,080 21.6 8.7 13.1
Share in EFTA's tot. imports 0.30% 0.34% 0.38% 0.43%
EXPORTS
Iceland 692 388 5 147 -43.9 -98.7 2,840.0
Norway 119,245 119,494 170,020 140,301 0.2 42.3 -17.5
Switzerland 422,551 438,521 445,431 448,106 3.8 1.6 0.6
EFTA 542,488 558,403 615456 588,554 2.9 10.2 -4.4
Share in EFTA's tot. exports 0.43% 0.46% 0.48% 0.42%
IMPORTS + EXPORTS ,
Iceland 6,880 10,068 10,487 7,691 46.3 4.2 -26.7
Norway 218,870 234,884 297,322 277,196 7.3 26.6 -6.8
Switzerland 651,885 721,099 750,613 804,747 10.6 4.1 7.2
EFTA 877,635 966,051 1,058,422 1,089,634 10.1 9.6 2.9
Share in EFTA's total trade 0.37% 0.40% 0.44% 0.43%
 No percentage calculated
Source: World Trade Atlas7.54
0.15137
140357448
050100150200250300350400450
Iceland Norwa y SwitzerlanEFTA States' trade with the Czech Republic
(2000 - million US
Imports
ExportsWT/REG87/R/B/2
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EFTA STATES' TRADE WITH THE CZECH REPUBLIC BY
SELECTED COMMODITIES (HS)
1998 1999 2000 1998 1999 2000
IMPORTS In thousand US dollars In per cent
Iceland
Total imports from the Czech Republic 9,680 10,482 7,544 100.0 100.0 100.0
In per cent of imports from world 0.42% 0.45% 0.32%
     HS 87  Vehicles (not railway) 3,233 3,645 2,880 33.4 34.8 38.2
     HS 84  Machinery, mechanical appliances 609 2,810 708 6.3 26.8 9.4
     HS 72  Iron and steel 772 455 638 8.0 4.3 8.5
Norway
Total imports from the Czech Republic 115,390 127,302 136,895 100.0 100.0 100.0
In per cent of imports from world 0.31% 0.38% 0.43%
     HS 87  Vehicles (not railway) 29,531 35,158 33,469 25.6 27.6 24.4
     HS 73  Iron and steel products 20,113 16,888 18,683 17.4 13.3 13.6
     HS 84  Machinery, mechanical appliances 13,809 14,111 13,654 12.0 11.1 10.0
     HS 72  Iron and steel 3,846 8,562 12,470 3.3 6.7 9.1
     HS 85  Electrical machinery 6,964 8,683 12,079 6.0 6.8 8.8
     HS 63  Miscellaneous textile articles 3,464 3,226 4,212 3.0 2.5 3.1
     HS 62  Woven apparel or cl othing accessories 3,724 4,667 4,031 3.2 3.7 2.9
     HS 40  Rubber 2,747 2,654 3,804 2.4 2.1 2.8
Switzerland
Total imports from the Czech Republic 282,578 305,182 356,641 100.0 100.0 100.0
In per cent of imports from world 0.35% 0.38% 0.43%
     HS 84  Machinery, mechanical appliances 47,361 49,352 59,031 16.8 16.2 16.6
     HS 87  Vehicles (not railway) 23,050 30,727 44,953 8.2 10.1 12.6
     HS 85  Electrical machinery 25,668 29,248 40,160 9.1 9.6 11.3
     HS 29  Organic chemicals 24,648 20,857 25,240 8.7 6.8 7.1
     HS 94  Furniture and bedding 21,701 20,596 24,209 7.7 6.7 6.8
     HS 73  Iron and steel products 13,552 16,068 23,575 4.8 5.3 6.6
     HS 62  Woven apparel or clot hing accessories 19,082 17,828 17,476 6.8 5.8 4.9
     HS 39  Plastic, plastic articles 8,708 9,680 11,243 3.1 3.2 3.2
     HS 63  Miscellaneous textile articles 5,977 8,381 9,826 2.1 2.7 2.8
     HS 52  Cotton 13,988 10,288 8,257 5.0 3.4 2.3
EXPORTS In thousand US dollars In per cent
Iceland
Total exports to the Czech Republic 388 5 147 100.0 100.0 100.0
In per cent of exports to world: 0.02% 0.00% 0.01%
     HS 16  Preparation of meat, fish 183 0 51 47.2 0.0 34.7
     HS 99  Salvage, reparations 22 0 48 5.7 0.0 32.7
     HS 90  Optical, medical, su rgical instruments 0 0 28 0.0 0.0 19.0
Norway
Total exports to the Czech Republic 119,494 170,020 140,301 100.0 100.0 100.0
In per cent of exports to world: 0.30% 0.38% 0.24%
     HS 27  Mineral fuels, oil 63,999 120,172 90,587 53.6 70.7 64.6
     HS 99  Salvage, reparations 13,024 9,524 9,933 10.9 5.6 7.1
     HS 85  Electrical machinery 6,159 6,364 5,883 5.2 3.7 4.2
     HS 76  Aluminium and articles thereof 6,358 6,492 4,660 5.3 3.8 3.3
     HS 84  Machinery, mechanical appliances 6,044 2,873 4,347 5.1 1.7 3.1
     HS 72  Iron and steel 3,471 2,889 2,908 2.9 1.7 2.1
     HS 03  Fish, crustaceans 2,524 3,695 2,651 2.1 2.2 1.9
     HS 88  Aircraft, spacecraft 2,343 1,004 2,483 2.0 0.6 1.8WT/REG87/R/B/2
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1998 1999 2000 1998 1999 2000
Switzerland
Total exports to the Czech Republic 438,521 445,431 448,106 100.0 100.0 100.0
In per cent of exports to world: 0.56% 0.55% 0.56%
     HS 84  Machinery, mechanical appliances 101,792 86,212 105,831 23.2 19.4 23.6
     HS 30  Pharmaceutical products 73,405 81,415 79,090 16.7 18.3 17.6
     HS 85  Electrical machinery 57,071 56,360 55,841 13.0 12.7 12.5
     HS 90  Optical, medical, surgical instruments 30,570 25,879 27,167 7.0 5.8 6.1
     HS 39  Plastic, plastic articles 17,431 25,389 21,660 4.0 5.7 4.8
     HS 52  Cotton 13,680 11,467 15,952 3.1 2.6 3.6
     HS 73  Iron and steel products 10,363 9,945 10,945 2.4 2.2 2.4
     HS 38  Misc. chemical products 8,481 9,598 9,562 1.9 2.2 2.1
     HS 87  vehicles (not railway) 11,476 11,397 9,283 2.6 2.6 2.1
     HS 48  Paper, paperboard 6,739 7,482 8,417 1.5 1.7 1.9
Source:  World Trade Atlas
EFTA States' trade with the Czech Republic 1993-2000
(in million US dollars)
0100200300400500600700
1993 1994 1995 1996 1997 1998 1999 2000Imports
Exports
Source: World Trade AtlasWT/REG87/R/B/2
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EFTA STATES' TRADE WITH THE WORLD
1997 1998 1999 2000 1997/98 1998/99 99/2000
In thousand US dollars Percentage Change
IMPORTS
Iceland 1,851,157 2,284,704 2,315,759 2,380,086 23.4 1.4 2.8
Norway 35,673,861 37,451,092 33,779,975 31,674,645 5.0 -9.8 -6.2
Switzerland 75,770,047 80,267,624 80,008,545 82,411,758 5.9 -0.3 3.0
EFTA 113,295,065 120,003,420 116,104,279 116,466,489 5.9 -.3.2 0.3
Share in EFTA's tot.
imports100% 100% 100% 100%
EXPORTS
Iceland 1,850,720 1,926,744 2,001,400 1,889,770 4.1 3.9 -5.6
Norway 48,495,496 40,374,441 44,82 4,714 57,367,564 -16.7 11.0 28.0
Switzerland 76,021,445 78,842,006 80,295,179 80,402,473 3.7 1.8 0.1
EFTA 126,367,661 121,143,191 127,121,293 139,659,807 -4.1 4.9 9.9
Share in EFTA's tot.
exports100% 100% 100% 100%
IMPORTS + EXPORTS
Iceland 3,701,877 4,211,448 4,317,159 4,269,856 13.8 2.5 -1.1
Norway 84,169,357 77,825,533 78,604,689 89,042,209 -7.5 1.0 13.3
Switzerland 151,791,492 159,109,630 160,303,724 162,814,231 4.8 0.8 1.6
EFTA 239,662,726 241,146,611 243,225,572 256,126,296 0.6 0.9 5.3
Share in EFTA's total trade 100% 100% 100% 100%
 No percentage calculated
Source: World Trade Atlas2,3801,89031,67557,36882,41280,402
010,00020,00030,00040,00050,00060,00070,00080,00090,000
Iceland Norway SwitzerlandEFTA States' trade with the world
(2000 - million US dollars)
Import
ExportWT/REG87/R/B/2
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EFTA STATES' TRADE WITH THE WORLD BY SELECTED COMMODITIES (HS)
1998 1999 2000 1998 1999 2000
IMPORTS In thousand US dollars In per cent
Iceland
Total imports from the world 2,284,704 2,315,759 2,380,086 100.0 100.0 100.0
In per cent of imports from the world 100% 100% 100%
     HS 84  Machinery, mechanical
appliances343,400 338,079 304,921 15.0 14.6 12.8
     HS 85  Electrical machinery 279,576 259,297 276,459 12.2 11.2 11.6
     HS 87  Vehicles (not railway) 228,117 265,046 249,848 10.0 11.4 10.5
Norway
Total imports from the world 37,451,092 33,779,975 31,674,645 100.0 100.0 100.0
In per cent of imports from the world 100% 100% 100%
     HS 84  Machinery, mechanical
appliances6,328,865 5,644,825 4,805,467 16.9 16.7 15.2
     HS 85  Electrical machinery 3,506,578 3,353,604 3,376,049 9.4 9.9 10.7
     HS 87  Vehicles (not railway) 3,535,595 3,089,991 2,956,628 9.4 9.1 9.3
     HS 27  Mineral fuels, oil 947,888 1,035,991 1,163,853 2.5 3.1 3.7
     HS 39  Plastic, plastic articles 1,085,801 1,019,696 994,492 2.9 3.0 3.1
     HS 94  Furniture and bedding 1,010,353 975,274 963,645 2.7 2.9 3.0
     HS 89  Ships, boats and floating
structures2,619,491 1,604,601 931,579 7.0 4.8 2.9
     HS 73  Iron and steel products 1,914,583 1,270,865 926,097 5.1 3.8 2.9
Switzerland
Total imports from the world 80,267,624 80,008,545 82,411,758 100.0 100.0 100.0
In per cent of imports from the world 100% 100% 100%
     HS 84  Machinery, mechanical
appliances10,571,578 11,075,982 11,203,711 13.2 13.8 13.6
     HS 85  Electrical machinery 7,184,466 7,490,076 8,180,210 9.0 9.4 9.9
     HS 87  Vehicles (not railway) 6,668,542 7,032,447 6,789,513 8.3 8.8 8.2
     HS 71  Precious stones and metals 6,937,018 5,076,812 6,726,878 8.6 6.3 8.2
     HS 30  Pharmaceutical products 3,463,563 4,293,309 4,283,838 4.3 5.4 5.2
     HS 29  Organic chemicals 4,092,940 3,961,542 4,265,592 5.1 5.0 5.2
     HS 27  Mineral fuels, oil 2,365,844 2,379,581 3,760,061 2.9 3.0 4.6
     HS 39  Plastic, plastic articles 2,892,037 2,865,059 2,865,389 3.6 3.6 3.5
     HS 90  Optical, medical, surgical
instruments2,540,987 2,699,511 2,708,710 3.2 3.4 3.3
     HS 94  Furniture and bedding 2,025,839 2,102,726 1,960,136 2.5 2.6 2.4
EXPORTS In thousand US dollars In per cent
Iceland
Total exports to the world 1,926,744 2,001,400 1,889,770 100.0 100.0 100.0
In per cent of exports to the world: 100% 100% 100%
     HS 03  Fish, crustaceans 1,022,550 1,066,335 953,473 53.1 53.3 50.5
     HS 76  Aluminium and articles thereof 267,540 319,073 352,473 13.9 15.9 18.7
     HS 16  preparations of meat, fish 181,135 159,460 132,692 9.4 8.0 7.0
Norway
Total exports to the world 40,374,441 44,824,714 57,367,564 100.0 100.0 100.0
In per cent of exports to the world: 100% 100% 100%
     HS 27  Mineral fuels, oil 17,472,594 22,803,716 36,287,450 43.3 50.9 63.3
     HS 03  Fish, crustaceans 3,293,716 3,452,780 3,266,934 8.2 7.7 5.7
     HS 99  Salvage, reparations 2,852,882 2,626,850 2,567,594 7.1 5.9 4.5
     HS 76  Aluminium and articles thereof 2,383,826 2,152,071 2,453,409 5.9 4.8 4.3
     HS 84  Machinery, mechanical
appliances2,622,145 2,548,091 2,300,745 6.5 5.7 4.0
     HS 85  Electrical machinery 1,525,444 1,457,122 1,451,713 3.8 3.3 2.5WT/REG87/R/B/2
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1998 1999 2000 1998 1999 2000
     HS 48  Paper, paperboard 802,279 794,343 746,990 2.0 1.8 1.3
     HS 72  Iron and steel 829,051 732,428 688,860 2.1 1.6 1.2
Switzerland
Total exports to the world 78,842,006 80,295,179 80,402,473 100.0 100.0 100.0
In per cent of exports to the world: 100% 100% 100%
     HS 84  Machinery, mechanical
appliances15,525,047 15,220,247 15,217,874 19.7 19.0 18.9
     HS 30  Pharmaceutical products 8,034,124 9,036,844 8,257,533 10.2 11.3 10.3
     HS 85  Electrical machinery 7,437,217 7,388,342 7,778,432 9.4 9.2 9.7
     HS 29  Organic chemicals 7,022,523 7,079,625 7,026,746 8.9 8.8 8.7
     HS 91  Clocks and watches 5,810,028 5,976,159 6,073,494 7.4 7.4 7.6
     HS 71  Precious stones and metals 4,400,966 5,111,609 6,061,537 5.6 6.4 7.5
     HS 90  Optical, medical, surgical
instruments4,500,309 4,704,777 4,860,803 5.7 5.9 6.0
     HS 39  Plastic, plastic articles 2,772,396 2,752,348 2,628,327 3.5 3.4 3.3
     HS 32  Tanning, dye, paints, putty, inks 1,876,173 1,809,686 1,792,976 2.4 2.3 2.2
     HS 73  Iron and steel products 1,821,551 1,748,717 1,706,374 2.3 2.2 2.1
Source:  World Trade Atlas
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