Protocol No 7

on Svalbard

THE HIGH CONTRACTING PARTIES,

CONSIDERING that, whilst Svalbard is excluded from the scope of application of the Treaties on which the Union is founded, subject to the provisions of Article 1 of this Protocol, it is nonetheless desirable to establish arrangements relating to trade in certain products originating in Svalbard, so that trade in those products will continue to take place under the same conditions as those applicable under the Free-Trade Agreement between the EC and the Kingdom of Norway and the Free-Trade Agreement between the Member States of the ECSC and the ECSC, of the one part, and the Kingdom of Norway, of the other part, before the accession of Norway to the Union,

CONSIDERING that the accession of Norway to the European Union implies that, in conformity with the 'acquis communautaire` and in particular the rules of the Common Fisheries Policy, the allocation of all resources to which vessels of the Member States, including Norway, have access in the waters up to 200 miles around Svalbard, and the management of this allocation, will be decided by the Union on the basis of the present practices,

RECOGNIZING the paramount importance of maintaining viable settlements on Svalbard,

HAVE AGREED AS FOLLOWS:

Article 1

The Treaties on which the European Union is founded shall not apply to Svalbard.

However, the accession of Norway to the European Union implies that, in conformity with the 'acquis communautaire` and in particular the rules of the Common Fisheries Policy, the allocation of all resources to which vessels of the Member States, including Norway, have access in the waters up to 200 miles around Svalbard, and the management of this allocation, will be decided by the Union on the basis of the present practices.

Article 2

1. The following goods originating in Svalbard may be imported into the Union free from customs duties, charges having equivalent effect and quantitative restrictions:

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2. The Council, acting by a qualified majority on a proposal from the Commission, may introduce any supplementary arrangements necessary to allow the import into the European Union, under the same conditions, of any goods originating in Svalbard, other than those mentioned in paragraph 1.

3. (a) The products referred to in paragraph 1 shall be considered as originating in Svalbard, for the purpose of this Protocol, where they are wholly obtained there, which means that they have been extracted from the ground in Svalbard.

(b) These products shall, upon importation into the Union, benefit from the provisions of this Protocol upon submission of a declaration given by the exporter on an invoice, a delivery note or any other commercial document.

(c) The Norwegian customs authorities shall take appropriate measures to ensure the proper application of the provisions of this paragraph.

4. The following are incompatible with this Protocol insofar as they may affect trade between the Union and Svalbard:

(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition as regards the production of or trade in goods;

(ii) abuse by one or more undertakings of a dominant position in the territories of the Contracting Parties as a whole or in a substantial part thereof;

(iii) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.

5. Where any difficulties arise in the implementation of the provisions of this Article, the Council, acting by a qualified majority on a proposal from the Commission, may adopt appropriate measures.

Article 3

The application of the provisions of this Protocol shall not in any way prejudice the positions of the Contracting Parties in respect of the application of the Treaty of Paris of 1920.