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For debate in the Standing Committee see Rule 15 of the Rules of Procedure
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Doc. 9034
12 April 2001
EFTA’s contribution to the European and world economy
Report
Committee on Economic Affairs and Development
Rapporteur: Mrs Oya Akgönenç, Turkey, European Democratic Group
Summary
EFTA – the European Free Trade Association – is a highly dynamic organisation, working for freer trade in Europe and beyond on behalf of its four member states Iceland, Liechtenstein, Norway and Switzerland. The European Economic Area (EEA) Agreement links the first three closely with the European Union, while the fourth has concluded bilateral agreements with the EU in corresponding areas.
Trade and cooperation agreements have been reached with numerous countries in central, eastern and south-eastern Europe, as well as with countries around the Mediterranean. A Free Trade Agreement (FTA) with Mexico will enter into force in July 2001, and FTA negotiations are under way with Canada, another Assembly observer.
The report sees both undertakings as important steps toward an eventual transatlantic free trade area, called for in earlier Assembly resolutions. The report concludes that "just because EFTA stands somewhat in the shadow of the EU and keeps a low profile, its contribution to a more prosperous and closely intertwined Europe should not, and will not, be overlooked by parliamentary Europe”.
I. Draft resolution
1. The Assembly, recalling its long-standing role as a parliamentary forum for the European Free Trade Association (EFTA), welcomes the Organisation’s continued dynamism and tangible contribution to economic development in Europe and beyond. It notes with particular satisfaction the smooth functioning of the European Economic Area Agreement between the European Union and three EFTA members - Iceland, Norway and Liechtenstein - and hopes that the bilateral agreements on similar areas concluded between the EU and EFTA member Switzerland can soon enter into force, thereby strengthening the position of the EU and EFTA as each other’s primary trading partners.
2. The Free Trade Agreements (FTAs) and Declarations on Co-operation concluded or under negotiation between EFTA and numerous countries in central, eastern and south-eastern Europe show the continued value of FTAs as a complement or alternative to EU membership leading to greater prosperity for all, a smoother reform process for transition countries and greater overall European stability.
3. The Assembly is similarly heartened by EFTA’s numerous trade and co-operation agreements concluded or under elaboration with non-European countries in the Mediterranean region and trusts that they will usefully contribute to the realisation of the aims of the European Union’s 1995 Barcelona Declaration and the ‘Euro-Mediterranean Free Trade Zone’ foreseen for 2010. It hopes that remaining challenges can soon be overcome, such as the need for harmonised rules of origin for materials and goods and for FTAs to be concluded also among these non-European countries.
4. Referring to its Resolution 1225 (2000) on prospects for a new transatlantic trade relationship, the Assembly welcomes EFTA’s recent FTA with Mexico and resolves closely to follow the evolution of that agreement after it enters into force in July 2001, not least in view of Mexico’s observer status with the Assembly. It also expresses the hope that the FTA currently under negotiation with Canada, also an Assembly observer, can be concluded soon, thus assisting in the eventual establishment of a transatlantic free trade area as called for in Resolution 1225 (2000).
5. Finally, the Assembly encourages EFTA to further develop its emerging relations with other countries such as Chile and South Africa and welcomes its cooperation agreements with regional groupings such as the Gulf Cooperation Council and MERCOSUR. It hopes that such links, beyond their value to the contracting parties, will also facilitate trade and investment between these non-European partners on the one hand, and the EU and EFTA-associated countries on the other.
II. Explanatory Memorandum by the Rapporteur
Table of contents
A. INTRODUCTION
B. EFTA’S PARTNERSHIP WITH THE EUROPEAN UNION
C. EFTA’S RELATIONS WITH OTHER INTERNATIONAL PARTNERS
i. Relations with central, east and south-east European countries
ii. Relations with countries in the Mediterranean region
iii. Relations with overseas countries or regions
D. CONCLUDING REMARKS
APPENDIX
*
* *
A. INTRODUCTION
1. This report seeks to present the activities of the European Free Trade Association (EFTA), to demonstrate the important contribution EFTA has made to global trade liberalisation and to describe the main developments within and surrounding EFTA since the Council of Europe’s Parliamentary Assembly’s last debate on the subject in April 1996 (Resolution 1093 (1996); Doc. 7526; Rapporteur: Mr Buzatu). It should be noted that the Parliamentary Assembly has served as a parliamentary forum for EFTA almost since its inception in 1960.
2. EFTA was set up in 1960 with a view to abolishing import duties, quotas and other trade barriers in Europe, the ultimate aim being to develop liberal, non-discriminatory world trade practices. Its founding members were Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom. Finland, Iceland and Liechtenstein subsequently joined - in 1986, 1970 and 1991, respectively. Following the establishment and enlargement of the European Union, however, most of its members left EFTA to join the EU, ultimately leaving the organisation with its present membership of Iceland, Liechtenstein, Norway and Switzerland.
3. The rules governing EFTA were laid down in the Stockholm Convention, which established the aim of free trade between member states. The first step towards that goal dates from 1966, when customs tariffs and import duties were abolished for all products other than agricultural goods. Since then, a long tradition of co-operation has developed between the EFTA countries and their partners in western Europe (and especially the European Union), central and Eastern Europe and the Mediterranean region. EFTA continues to play an essential role in international economic life, pursuing goals such as sustainable economic growth, full employment, increased productivity, financial stability, a better standard of living, healthy and fair competition, harmonious development of world trade and gradual removal of trade barriers in Europe and the world.
4. EFTA deals with three main sectors of activity: relations between the EFTA member states under the Stockholm Convention; those with an increasing number of ‘third countries’; and the implementation of the European Economic Area agreement (EEA) designed to strengthen relations between three EFTA states (Iceland, Liechtenstein and Norway) and the European Union countries through the introduction of a single market. Switzerland is not an EEA member. It has concluded a set of bilateral agreements with the EU covering parts of the Internal Market legislation on the basis of recognition of equivalent national legislation.
5. The EFTA Council, the Association’s governing body, is the organisation’s decision-making forum. It facilitates co-operation among the member states and with third countries, fosters the development of new free trade agreements and administers existing ones. It is backed up by a number of committees, which are in turn supported by the work of expert groups. Three of those committees received particular attention in the Assembly’s last report on EFTA activities in 1996: the Committee on Third Country Relations, the Committee on Technical Barriers to Trade, which also makes a significant contribution to European standard setting; and the Economic Committee, which is in close contact with the European Commission inter alia on the impact of the European Monetary Union on the EFTA states.
6. Lastly, special institutions have been set up to ensure effective application of the rules established by EFTA members that are Parties to the EEA Agreement. Firstly, as it name suggests, the EFTA Surveillance Authority oversees the implementation of the EEA Agreement by the EFTA States concerned; secondly, the EFTA Court, based in Luxembourg, deals with disputes involving EFTA states and the EFTA Surveillance Authority.
B. EFTA’S PARTNERSHIP WITH THE EUROPEAN UNION
7. Since the signature of the Bilateral Free Trade Agreement between EFTA and the then six members of the European Economic Community in 1972, the two regions have continued to strengthen relations and develop closer co-operation. The partnership was reinforced by a speech by Jacques Delors, the then President of the European Commission, who proposed to the European Parliament in January 1989 that a new, more structured form of association should be sought with EFTA countries, with common decision-making and administrative institutions. In June 1990 this led to the official opening of negotiations on the European Economic Area (EEA).
8. Integration of EFTA members into the wider internal market began on 2 May 1992 with the signature of the EEA Agreement and took practical effect when the pact entered into force in January 1994 as regards Austria, Finland, Iceland, Norway and Sweden. Following a referendum, Switzerland decided not to participate. The EEA is now made up of the fifteen European Union member states together with Liechtenstein (since 1 May 1995), Iceland and Norway - representing an economic area of eighteen countries with a total of 380 million inhabitants. It should be remembered that the EEA concerns all aspects of the EU acquis communautaire relating to the four freedoms: movement of goods, persons, services and capital.
9. With regard to the free movement of goods, significant progress was made in integrating new EEA rules in the areas of elimination of technical barriers to trade, veterinary and phytosanitary substances, competition rules, state aid, public procurement and intellectual property. European free trade agreements were strengthened by the “European Cumulation Agreement” introduced in 1996. Under it, materials from the European Union, EFTA and central and east European countries may be combined, without distinction, to secure classification as being of European origin. 1996 was a particularly rewarding year in this area; a major step was taken towards harmonisation of European trade practices, fostering the development of closer relations between the European partners concerned. A fresh series of common provisions on product origin was adopted, covering 29 countries: the four EFTA countries, the fifteen EU countries and the 10 central and east European countries that have signed free trade agreements with EFTA. These new rules of origin entered into force in January 1997 for the EEA states and in July 1997 for the central and east European countries. The Rapporteur’s own country Turkey joined the system at the beginning of 1999 and its experiences so far have been very positive.
10. The free movement of capital and services is confined to insurance, banking and securities management, services using new technologies such as telecommunications, audiovisual and information services, the transport sector (including domestic transport, shipping and civil aviation) and postal services. It should be noted that, as is the case for the European Union countries, services account for a significant proportion of the gross domestic product of EFTA states. Drawing on EU policies, those states are developing new measures concerning maritime policy and the setting of fair, effective prices in the transport sector. Lastly, they are taking a close interest in the EU’s preparation for the physical introduction of the euro in 2002.
11. As regards the free movement of persons, the EEA Agreement states that EFTA countries are full members of the Single Market. EEA-EFTA and Union citizens in consequence enjoy the same rights in all EEA states. Following the publication of three information guides on life, work and education in the EU, in 1996 the EFTA countries decided to produce guides informing EEA citizens of their rights within the Single Market. The EEA-EFTA countries also helped to prepare a European Commission report on legal, administrative and practical obstacles to free movement of persons within the Union. Other areas such as the purchase of goods and services in other Area countries, occupational health and safety and the principle of equal opportunities are also of great interest to the EFTA working groups. Lastly, decisions were taken by the EEA Joint Committee reinforcing the mutual recognition of diplomas, social security protection and EEA-EFTA participation in the European Employment Services (EURES).
12. The EEA Agreement also aims to ensure the same conditions of competition for all economic operators in the region. It includes other provisions that help to secure the four freedoms, such as co-operation in research and development, education, teaching and youth, the promotion of small and medium-sized enterprises, the environment, civil defence, social policy, consumer protection (by means of provisions on mutual recognition of tests and checks for product compliance), culture and tourism. The EEA Agreement establishes a sophisticated institutional structure for joint EEA-EU decision-making, enabling the former to incorporate changes in the acquis communautaire and in the supranational monitoring and judicial mechanisms set up to ensure application of the Agreement. Lastly, the EFTA countries take part in the ECOFIN Joint Council, made up of the Ministers for Economic Affairs and Finance of the EU and EFTA Member States. Priority is given to dialogue on economic co-operation in connection with efforts to combat unemployment and to ensure predictable macroeconomic policies and sound public finances.
13. The EEA agreement has had a very positive influence on overall European trade and investment liberalisation. This includes the elimination of indirect trade barriers such as diverging standards or customs formalities. This has permitted greater competition and more rapid growth. It should be remembered that the EEA does not cover the Common Agricultural Policy, although EFTA members have individually agreed to improve market access for agricultural products from the European Union and vice versa, especially those coming from less developed areas. Lastly, the Area is not a customs union. This means that there is no such thing as a common EFTA-European Union trade policy or common customs tariffs for third countries.
14. The good cooperation between EFTA and the European Union in the European Economic Area framework merits mention. The EEA Council meets twice a year to assess the development of the co-operation. During its meeting in Luxembourg in October 1998, the EEA Council welcomed the rapid incorporation into the EEA of Community legislation in various fields - from veterinary matters to technical regulations and standards, social security, transport, competition, state aid, financial services, telecommunications, health and safety at work, consumer protection and the environment. The Council also recalled that countries seeking to join the European Union would be bound by the EEA agreement, thus facilitating their economic relations with the EEA-EFTA states. Furthermore, it was agreed that the EEA-EFTA states would be kept fully informed on the process of enlargement. Finally, the EEA Council welcomed the entry into force of the EMU, the success of which would be important for the good functioning of the internal market and for the prosperity of Europe as a whole.
C. EFTA’S RELATIONS WITH OTHER INTERNATIONAL PARTNERS
15. At this stage, the Rapporteur would like to dwell at some length on EFTA's third-country relations1 since they are not at all typical of the traditional free-trade agreement among countries and since they are changing EFTA itself so profoundly. A common trade policy vis-ŕ-vis outsiders is more typical of a customs union such as the EU. That EFTA is now going down that same road is a sign of the pragmatism of its four member countries, which concentrate more on finding solutions to practical problems than on political doctrine. Furthermore, the EFTA countries want to proceed apace with, and indeed often overtake, the EU when it comes to opening markets.
16. ‘Third country’ relations naturally enough started as from 1990 with the countries in transition in central and eastern Europe and soon continued with those in south-eastern Europe. One issue was whether EFTA countries should establish relations bilaterally with them or do so within the EFTA framework. The latter course was soon chosen and the strategy was clear. EFTA countries sought to make a concrete contribution to the transition process by opening their own markets and by furnishing technical assistance. At the same time, the transition countries were asked to reduce customs duties, leading to eventual customs-free trade with EFTA. Most of the free trade agreements concluded with this set of countries between 1992 and 2000 (to be discussed in greater detail below) are based on this idea.17
17 However, as this happened, not only did the number of partners increase but also their heterogeneity. While heterogeneity is the name of the game in an era of economic globalisation, it also puts strain on EFTA's limited administrative resources. Furthermore, since many of the countries concerned asked for financial support in exchange for market openings, both the finances of EFTA countries and their mutual solidarity came under some challenge. This held in particular for smaller EFTA countries like Iceland and Liechtenstein, which only have marginal trade links with some of the countries. Bilateral solutions were often found.
18 In its free-trade agreements EFTA has so far concentrated on the merchandise sector, as well as on accompanying technical support to its partners in order to make sure that the agreements are actually implemented. However, several of the agreements include 'evolutionary' clauses relating, for instance, to services. This being said, the EFTA agreements are often narrower than those of the EU, which include services, the right of establishment, labour movements, research and development. In addition, the EU offers the EU offers its partner countries financial assistance and the prospect of a membership in return for market openings, while EFTA deals with such matters on a bilateral basis.
19. This steady building of relations with third countries has taken place in three main geographical areas: i) central and east European countries; ii) countries in the Mediterranean region; and iii) overseas individual countries or regions.
i. Relations with central, east and south-east European countries
20. Following the events in central and eastern Europe in the late 1980s and early 1990s, EFTA concluded free trade agreements with various countries in the region. The free trade agreements now in force in central and eastern Europe link EFTA with the Czech and Slovak Republics (July 1992), Romania (May 1993), Bulgaria (July 1993), Poland (September 1993), Hungary (October 1993), Slovenia (July 1995), Estonia and Latvia (June 1996), Lithuania (January 1997) and in 2001 the Agreement with the “former Yugoslav Republic of Macedonia” will enter into force. Finally, EFTA signed Declarations on Co-operation with Ukraine in June 2000 and with Yugoslavia in December 2000.
21. The agreements cover industrial, agricultural and fisheries products. They were drawn up out of a concern to support reform in central and eastern Europe by giving impetus to trade. They are asymmetrical, in that EFTA states undertook to open their markets to a large number of east European countries when the agreements entered into force, whereas their partners enjoy a certain transition period before having to grant the same advantages to products from the EFTA region.
22. As we have seen already, the start of free trade agreements is often preceded by declarations on co-operation. All the declarations cover closer co-operation in the environment, trade, transport and tourism sectors. For instance, a declaration on co-operation was signed with Ukraine in June, 2000, and with Yugoslavia later this year. As for Croatia, with which EFTA signed a declaration on co-operation already in 1992, negotiations on a free trade agreement were initiated in the latter half of 2000.
ii. Relations with countries in the Mediterranean region
23. Over the past few years EFTA has strongly developed its relations with third-country partners, notably in the Mediterranean region. Following the departure from the Association of Austria, Finland and Sweden in 1995, EFTA Ministers carried out a comprehensive review of their third-country policy and confirmed their willingness to intensify external relations through more flexible instruments of co-operation, while ensuring the shared interests of EFTA countries and coherence with the EU.
24. Wishing to boost co-operation and international economic integration, EFTA has become more and more active in Mediterranean countries, where it promotes trade, economic development and the establishment of non-discriminatory trade conditions. Free trade agreements are in force with your Rapporteur’s own country Turkey since 1992, Israel since 1993 and Morocco since 1997.
25. Meanwhile, Declarations on Co-operation, the first step towards free trade agreements, were concluded with Egypt and Tunisia in 1995 and with Jordan and Lebanon in 1997. Negotiations for a free trade agreement with Jordan are nearly concluded, with signature expected in 2001.
26. EFTA held its winter 1998 ministerial meeting in Leukerbad in Switzerland in November 1998. Joining the Ministers from the four EFTA countries were, among others, representatives from the Palestinian Authority (PA) and Egypt. The PA representative participated in order to sign an interim free trade agreement which entered into force in 1999, while the Egyptian delegation came to open negotiations on a free trade agreement between Egypt and EFTA.
27. This interim agreement with the Palestinian Authority is the most recent piece in EFTA's mosaic of relations in the Mediterranean region. Norway - the initiator to the Israel- Palestinian Authority Oslo Agreement - took the initiative also here. It is made clear to the Palestinian Authority that EFTA, like the EU, would be prepared to enter into a formal free trade agreement with it as and when it and gains formal and internationally recognised statehood. EFTA hopes to be able to include accumulation of origin rules in a future version of any trade agreement with the Palestinian Authority, thus facilitating trade also with Egypt, Jordan and Israel.
28. The Leukerbad meeting confirmed EFTA's remarkable development into an instrument for free trade agreements vis-ŕ-vis third countries. Such a continuing expansion of EFTA’s network of agreements in the Mediterranean has been a major breakthrough for the participating countries in their efforts to realise the much-heralded ‘Euro-Mediterranean free trade zone’ planned to come about by 2010. EFTA is in this way making its contribution to the European Union's efforts to create a homogeneous free trade area from the North CapE down to the southern and eastern shores of the Mediterranean.
29. The development of relations between the EFTA States and their Mediterranean partners remains a key objective for the next few years, particularly in the light of the European Union’s Barcelona Declaration (November 1995). This, it will be remembered, was the starting point for the process of establishing an extensive Euro-Mediterranean free trade area with the twelve Mediterranean countries (Morocco, Algeria, Tunisia, Egypt, Jordan, Israel, Lebanon, Syria, the Palestinian Authority, Turkey, Cyprus and Malta). Through the intensification of trade with the Mediterranean, EFTA countries will no doubt help to narrow the prosperity gap between the two sides of the Mediterranean.
30. The first and the most urgent step in this direction will be to extend European cumulation agreements to eventually all the EU’s and EFTA’s Mediterranean partners. However, this process has been hampered by the absence of any harmonised set of rules of origin and bilateral free trade agreements among these Mediterranean countries themselves. Here EFTA has a major challenge to pursue to ensure that this be done. The political will of EFTA countries that has caused the Association to conclude free trade agreements with so many countries in central and eastern Europe is now being directed toward the non-EU and non-EFTA parts of the Mediterranean region. Finally, having signed a number of free trade agreements and declarations on co-operation with partners in central and eastern Europe and the Mediterranean, EFTA continues regularly reviewing and upgrading these texts in the light of international trade policy evolution.
iii. Relations with overseas countries or regions
31. EFTA is also active outside Europe. It tries to establish traditional, products-oriented free-trade instruments with various countries in the Americas and in Asia, building on and deepening similar agreements reached within the WTO.The number of trade agreements have increased considerably in recent years, expanding the Association’s scope for action in the area of trade and investment.
32. EFTA maintains links with regional groups such as the Central European Free Trade Association (CEFTA), the Southern Cone Common Market (MERCOSUR) and the Gulf Co-operation Council (GCC).
33. EFTA’s intensifying connections with regional groupings follow its traditional pattern of first building up a dialogue and then seeking out individual partners in such groupings if agreement is not possible with the grouping as a whole. Canada is a case in point. Canada is a member of NAFTA and the EFTA area is that country’s sixth largest destination for exports. When an EFTA-Canada free trade agreement is eventually concluded – and the Rapporteur long hoped it would be by the end of 2000 - it will be the second trans-Atlantic trade venture of this type, after EFTA’s recent free trade agreement with Mexico. This adds a new dimension to EFTA’s trade policy. Canada has been in the forefront of trying to establish a ‘New Transatlantic Trade Relationship, as witnessed also by the Assembly’s report of September 2000 on “Prospects for New Trans-Atlantic Trade Relationship” (Resolution 1225 (2000); Doc.8752; Rapporteur: Mr Bonet Casas) and a Seminar on that same subject hosted by the Canadians in October 1998 for our Economic Committee’s Sub-Committee’s on International Economic Relations.
34. Among the various free trade agreements negotiated by EFTA, that with Mexico is of particular importance, coming as it does on the heels of the Mexico-EU free trade agreement concluded in the summer of 2000. The EFTA-Mexico pact includes services and investment as well as rules for competition, public procurement, the liberalisation and protection of payments and transfers related to foreign direct investment. It will give companies on both sides a much more ‘level playing field’. Customs duties will be gradually phased out. By way of illustration, if today 47% of EFTA industrial goods enjoy duty-free access to the Mexican market, by 2007 all will. Again, this agreement is asymmetrical insofar as it allows duty free access for all Mexican industrial products as from the entry into force of the Agreement on 1 July 2001. (Agriculture is not formally covered by this agreement, but by bilateral ones between Mexico and individual EFTA countries.)
35. The novelty of this agreement lies in the high standard of liberalisation that it provides to the Parties and going in certain respects beyond the WTO Agreement. Smaller EFTA is indeed here proving, in a way, to be more efficacious than the infinitely bigger WTO, whose next Round of negotiations is indeed much in delay. At the same time, the Association has signed a Declaration on trade and investment co-operation with the trade grouping MERCOSUR, opened negotiations with Chile, and is engaging in exploratory talks with South-Africa and Singapore.
D. CONCLUDING REMARKS
36. Apart from being a dynamic vector for free trade as well as an economically coherent group of countries, EFTA is of major benefit to its members. Iceland, for example, has full access to the EU Internal Market under the EEA agreement with some limitations for fisheries products and can yet exercise control over its fish resources. The EEA, as well as EFTA's free-trade vocation has turned out to be a good combination, and the same holds for the other EFTA-EEA countries of Norway and Liechtenstein.
37. The agreements concluded between EFTA and its many partners ensure that the economic agents concerned receive fair and equal treatment and market access. EFTA helps freer trade and therefore the economic development of regions bound by its various agreements. It contributes indirectly, in an often underestimated way, to a more harmonised international economic, social, institutional and political environment.
38. EFTA also administers its agreements very actively in spite of its limited staff. This holds especially for the EEA, which is constantly amended and updated, in order to comply with new Community legislation. The dynamic nature of the EEA is in itself a guarantee that it will continue to be of benefit to its members.
39. In addition to free trade agreements and co-operation declarations, EFTA has also implemented technical co-operation programmes designed to assist central and east European countries and to facilitate their integration into the European and world economy. This also holds for the countries around the Mediterranean. The Bergen Declaration of June 1995 launched technical assistance programmes giving priority to joint EFTA-EU activities, not least through EFTA’s participation in the PHARE programme. Here the aim is to assist countries in transition with product quality standards, harmonisation of technical legislation, statistics and customs co-operation. Since 1996, EFTA has also helped in educational assistance programmes, including student exchanges.
40. EFTA maintains close links with a large number of international organisations such as the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organisation (WTO). EFTA realises that worldwide compliance with the WTO rules is key to an efficient multilateral trading system.
41. EFTA has made significant progress also in regard to a large number of European and non-European countries, with speed picking up even more in 1999 and 2000, as if its four member countries realised that not only was this necessary to keep up with both the EU and the world economy as a whole, but that its particular approach was especially successful in promoting the prosperity of its own and its partner countries’ citizens.
42. Thus, in spite of its limited number of member countries, EFTA continues to exercise a significant influence in the world economic arena. Its strength lies in the considerable number of association and co-operation agreements it has established - from northern Europe to the Black Sea, from central and eastern Europe to the Americas.
43. EFTA continues to have an important role to play in pan-European and international co-operation. Its negotiators are constantly on the way around the world to conclude new free trade agreements and thereby contribute to a more open world economy.
44. EFTA's very active third-country policy shows the growing vitality of an organisation which many people a decade ago thought would stand little chance beside an all-powerful EU. However, EFTA must be careful not to let the very diversity of its many partners turn its FTA framework into an overly confusing patchwork. Owing to the fact that its expansion seems to be more and more trans-Atlantic, it would seem important for EFTA countries to try to define a coherent third-country policy that would take into account the different nature of the Association’s main geographical areas of activities.
45. In conclusion, the Rapporteur welcomes EFTA’s positive impact on the European and world level, fostering prosperity and cooperation in western, central and eastern Europe, the Mediterranean region and beyond. When several members of the Committee on Economic Affairs and Development recently called for renewed reporting on EFTA activities, they were right. Just because it stands somewhat in the shadow of the EU and chooses to keep a low profile, EFTA and its contribution should not and will not be overlooked by parliamentary Europe.
APPENDIX
CHRONOLOGY
(Presented according to the chronological order of signature of the FTAs,
ongoing FTA negotiations
and other démarches in preparation for possible FTAs)
FREE TRADE AGREEMENTS
Turkey (1991)
10 December 1991 Free trade agreement signed in Geneva
1 April 1992 Free trade agreement enters into force
1 July 1998 Fourth meeting of the Joint EFTA-Turkey Committee in Geneva
16 November 2000 Fifth meeting of the Joint EFTA-Turkey Committee in Geneva
Israel (1992)
17 September 1992 Free trade agreement signed in Geneva
1 January 1993 Free trade agreement enters into force
24 June 1999 Fourth meeting of the Joint EFTA-Israel Committee in Geneva
Poland (1992)
13 June 1990 Signing of a Declaration on co-operation in Gothenburg
10 December 1992 Free trade agreement signed in Geneva
1 September 1994 Free trade agreement enters into force
23 November 1999 Fifth meeting of the Joint EFTA-Poland Committee in Geneva
5 December 2000 Sixth meeting of the Joint EFTA-Poland Committee in Geneva
Romania (1992)
10 December 1991 Signing of a Declaration on co-operation in Geneva
10 December 1992 Free trade agreement signed in Geneva
1 May 1993 Free trade agreement enters into force
16 December 1997 Fifth meeting of the Joint EFTA-Romania Committee in Bucharest
Bulgaria (1993)
10 December 1991 Signing of a Declaration on co-operation in Geneva
29 March 1993 Free trade agreement signed in Geneva
1 July 1993 Free trade agreement enters into force
18 December 1997 Fourth meeting of the Joint EFTA-Bulgaria Committee in Sofia
20 September 2000 Fifth meeting of the Joint EFTA-Bulgaria Committee in Geneva
Hungary (1993)
13 June 1990 Signing of a Declaration on co-operation in Gothenburg
29 March 1993 Free trade agreement signed in Geneva
1 October 1993 Free trade agreement enters into force
8 December 1998 Sixth meeting of the Joint EFTA-Hungary Committee in Geneva
21 November 2000 Seventh meeting of the Joint EFTA-Hungary Committee in Budapest
FREE TRADE AGREEMENTS (cont’d)
Czech Republic (1993)
13 June 1990 Signing of a Declaration on co-operation with the former CSFR in Gothenburg
20 March 1992 Free trade agreement with the former CSFR signed in Geneva
1 July 1992 Free trade agreement enters into force
19 April 1993 Protocol on the succession of the Czech Republic to the EFTA-CSFR free
trade agreement signed in Geneva
10 June 1998 Fifth meeting of the Joint EFTA-Czech Republic Committee in Geneva
14 November 2000 Sixth meeting of the Joint EFTA-Czech Republic Committee in Geneva
Slovak Republic (1993)
3 June 1990 Signing of a Declaration on co-operation with the former CSFR in Gothenburg
20 March 1992 Free trade agreement with the former CSFR signed in Geneva
1 July 1992 Free trade agreement enters into force
19 April 1993 Protocol on the succession of the Slovak Republic to the EFTA-CSFR
free trade agreement signed in Geneva
11 June 1998 Fifth meeting of the Joint EFTA-Slovak Republic Committee in Geneva
14 December 2000 Seventh meeting of the Joint EFTA-Slovak Republic Committee in Geneva
Slovenia(1995)
20 May 1992 Signing of a Declaration on co-operation in Reykjavik
13 June 1995 Free trade agreement signed in Bergen
1 July 1995 Free trade agreement provisionally applied
1 September 1998 Free Trade Agreement enters into force
21 May 1999 Fourth meeting of the Joint EFTA-Slovenia Committee in Geneva
Estonia (1995)
10 December 1991 Signing of a Declaration on co-operation with Estonia in Geneva
7 December 1995 Free trade agreement with Estonia signed in Zermatt
1 June 1996 Free trade agreement with Estonia provisionally applied
1 October 1997 Free trade agreement with Estonia enters into force
24 September 1999 Fourth meeting of the Joint EFTA-Estonia Committee in Geneva
Latvia (1995)
10 December 1991 Signing of a Declaration on co-operation with Latvia in Geneva
7 December 1995 Free trade agreement with Latvia signed in Zermatt
1 June 1996 Free trade agreement with Latvia enters into force
23 September 1999 Fourth meeting of the Joint EFTA-Latvia Committee in Geneva
Lithuania (1995)
10 December 1991 Signing of a Declaration on co-operation with Lithuania in Geneva
7 December 1995 Free trade agreement with Lithuania signed in Zermatt
1 January 1997 Free trade agreement with Lithuania enters into force
22 September 1999 Fourth meeting of the Joint EFTA-Lithuania Committee in Geneva
7 December 2000 Fifth meeting of the Joint EFTA-Lithuania Committee in Geneva
FREE TRADE AGREEMENTS (cont’d)
Morocco (1997)
8 December 1995 Signing of a Declaration on co-operation with Morocco in Zermatt
19 June 1997 Free trade agreement signed in Geneva
1 December 1999 Free trade agreement with Morocco enters into force
15-16 March 2000 Sub-committee on customs and origin matters in Rabat
21 June 2000 Sub-committee on customs and origin matters in Rabat
24 October 2000 Second meeting of the Joint EFTA-Morocco Committee in Rabat
Palestine Liberation Organization (PLO) (1996)
16 December 1996 Signing in Geneva of a Declaration on co-operation with the PLO for the benefit of the Palestinian Interim Self-Government Authority of The West Bank and Gaza Strip
30 November 1998 Interim Agreement between the EFTA States and the PLO for the benefit of the Palestinian Authority signed in Leukerbad.
1 July 1999 Free trade agreement with the PLO enters into force
Macedonia (1996)
29 March 1996 Signing of a Declaration on co-operation with the Macedonian Government in Vaduz
8 November 1996 First meeting of the Joint EFTA-Macedonia Committee in Ohrid. Establishment
of a joint sub-committee to examine measures to be undertaken in view of creating a free trade area between the Parties
1-2 February 2000 Third round of negotiations on the EFTA-Macedonia FTA in Geneva
10-11 April 2000 Fourth Round of FTA negotiations in Skopje
11-12 May 2000 Fifth Round of negotiations and initialling of FTA – Geneva
19 June 2000 Free trade agreement with Macedonia signed in Zurich
Mexico (2000)
2-3 May 2000 Technical talks on a possible EFTA-Mexico FTA in Geneva
6-7 July 2000 First round of negotiations on the EFTA-Mexico FTA in Geneva
30 Oct.-3 Nov. 2000 Fourth round of negotiations on the EFTA-Mexico FTA in Geneva
27 November 2000 Free Trade Agreement with Mexico signed in Mexico City
ONGOING FTA NEGOTIATIONS
Egypt (1995)
8 December 1995 Signing of a Declaration on co-operation with Egypt in Zermatt
15 April 1996 First meeting of the Joint EFTA-Egypt Committee in Geneva
30 November 1998 Second meeting of the Joint EFTA-Egypt Committee in Leukerbad. Establishment of a joint sub-committee to start elaboration of a draft free trade agreement.
22-23 February 2000 Second round of negotiations on the EFTA-Egypt FTA in Cairo
1-2 March 2001 Third round of negotiations on EFTA-Egypt FTA in Cairo
Tunisia (1995)
8 December 1995 Signing of a Declaration on co-operation with Tunisia in Zermatt
22 April 1996 First meeting of the Joint EFTA-Tunisia Committee in Geneva. Establishment
of a joint sub-committee to start elaboration of a draft free trade agreement.
14-15 December 1998 Fourth round of negotiations on the EFTA-Tunisia FTA in Geneva
8 June 2000 Fifth round of negotiations on the EFTA-Tunisia FTA in Tunis
Cyprus (1997)
15 October 1997 Technical talks on the proposed EFTA-Cyprus FTA in Geneva
4-6 March 1998 First round of negotiations on the EFTA-Cyprus FTA in Nicosia
6-7 May 1999 Second round of negotiations on the EFTA-Cyprus FTA in Nicosia
Jordan (1997)
19 June 1997 Signing of a Declaration on co-operation with the Kingdom of Jordan in Geneva
18 February 1998 First meeting of the Joint EFTA-Jordan Committee in Amman. Establishment of a joint sub-committee to begin exploratory talks on an FTA
17-18 March 1999 Second round of negotiations on the EFTA-Jordan FTA in Amman
13-14 March 2000 Expert Meeting on Processed Agricultural Products in Amman
17-19 May 2000 Third round of negotiations on the EFTA-Jordan FTA in Geneva
Canada (1998)
26-27 May 1998 First meeting between Canadian and EFTA Officials in Reykjavik
to explore the possibility of establishing a Canada-EFTA FTA
14-16 October 1998 First round of negotiations on the EFTA-Canada FTA in Ottawa
23-24 March 2000 Ninth round of negotiations on the EFTA-Canada FTA in Geneva
16-17 May 2000 Tenth round of negotiations on the EFTA-Canada FTA in Geneva
Chile (1999)
27 September 1999 Exploratory exchange of information with Chile in Geneva
15 November 1999 Exploratory exchange of information with Chile in Geneva
4 December 2000 First round of negotiations on the EFTA-Chile FTA in Geneva
Croatia (2000)
19 June 2000 Signing of a Declaration on co-operation with Croatia in Zurich
26-27 October 2000 First meeting of the Joint EFTA-Croatia Committee in Zagreb
EXPLORATORY TALKS AND DECLARATIONS ON CO-OPERATION
Albania (1991)
10 December 1992 Signing of a Declaration on co-operation in Geneva
23 March 1993 First meeting of the Joint EFTA-Albania Committee in Tirana
9 December 1999 Second meeting of the Joint EFTA-Albania Committee in Geneva
26 September 2000 EFTA-Albania Expert meeting on technical co-operation in Tirana
Lebanon (1997)
19 June 1997 Signing of a Declaration on co-operation with the Republic of Lebanon in Geneva
19 February 1998 First meeting of the Joint EFTA-Lebanon Committee in Beirut. Establishment of a joint sub-committee to begin exploratory talks on an FTA.
Malta (1997)
29 August 1997 Technical talks on the proposed EFTA-Malta FTA in Geneva
Co-operation Council for the Arab States of the Gulf (GCC) (2000)
23 May 2000 Signing of a Declaration on co-operation with the GCC in Brussels
Ukraine (2000)
19 June 2000 Signing of a Declaration on co-operation with Ukraine in Zurich
South Africa (2000)
6 November 2000 High-level Talks in Pretoria
Yugoslavia (2000)
12 December 2000 Signing of a Declaration on co-operation with Yugoslavia in Geneva
MERCOSUR (2000)
12 December 2000 Signing of a Declaration on co-operation with MERCOSUR in Geneva
Reporting committee: Committee on Economic Affairs and Development.
Reference to committee: standing mandate.
Draft resolution unanimously adopted by the committee on 29 March 2001.
Members of the committee: Ms Zapfl-Helbing (Chairperson), Stepova, Kirilov, Blaauw (Alternate: Duivesteijn) (Vice-Chairpersons), Adam, Agius, Agramunt (Alternate: Yanez-Barnuevo), Akgönenç, Aleffi (Alternate: Lauricella), Aliyev, Andersen, Anusz, Arnau, Aylward (Alternate: Higgins), Berceanu, Billing, Blattmann, Bojars, Bonet Casas, Braun, Brunhart, Budisa (Alternate: Bulic), Burbiené, Calner, Cerrahoglu, Clinton-Davis, Cunliffe (Alternate: Etherington), Cusimano (Alternate: Turini), Dokle, Elo, Eyskens (Alternate: Annemans), Freyberg, Gryzlov (Alternate: Slutsky), Gülek, Gusenbauer, Haupert, Hoffmann, Hrebenciuc, Jung, Kacin, Kestelijn-Sierens, Kittis, Kosakivsky, Leers, Liapis, Lopes Cardona, Lotz, Makhachev, Mateju, Mitterrand, Naumov (Alternate: Kolesnikov), Patarkalishvili, Pereira Coelho (Alternate: Cesário), Ponsonby, Popa, Popescu (Alternate: Poroshenko), Popovski, Prokes, Puche, Ragnarsdottir, Reimann (Alternate: Marty), Riccardi, Rigo, Schmitz, Schoettel-Delacher, Schreiner, Schütz, Seyidov, Squarcialupi, Stoyanova, Suslov, Tallo, Townend, Tsekouras, Ustiugov, Valleix; Wielowieyski.
N.B. The names of those members present at the meeting are printed in italics.
Secretaries of the committee: MM. Torbiörn, Bertozzi, Ms Ramanauskaite.
1 See Annex for a detailed chronology of signed free-trade agreements (FTAs), ongoing negotiations and other démarches for prospective FTAs.