52th Annual Report of The European Free Trade Association 2012

52 Annual Report
of the European
Free Trade
Association
nd

2012

Annual Report of the European Free Trade Association 2012

Editor: Tore Grønningsæter
Copy Editor: Juliet Reynolds
Layout: INSPIRIT International Communication sprl
Worldwide network map: Orangemetalic
Published March 2013

Cover picture: Vennesla Library and Cultural Centre in Vennesla, Norway, designed by Helen & Hard.
Photo: © Hufton + Crow/VIEW/Corbis

Editor’s Note:
For an overview of EFTA’s activities and institutional framework, please see the publication “This is EFTA”.
Further information is also available on our website: www.efta.int.

Table Of Contents
FOREWORD 5
EFTA COUNCIL

6

EFTA Ministerial Meetings
The EFTA Council
The EFTA Convention
Annual Meeting of EFTA
and EU Finance Ministers

6
6
7

FREE TRADE RELATIONS

27
28

EEA GRANTS AND
NORWAY GRANTS

30

7

ADVISORY BODIES

33

8

The Parliamentary Committee 33
EFTA Consultative Committee 34
The EEA EFTA Forum
35

Main Developments
9
Management of EFTA’s Free
Trade Agreements and Joint
Declarations on Cooperation 11
Technical Cooperation
11
Relations with the WTO
11
THE EEA AGREEMENT

EFTA-EU Cooperation
in Statistics
Technical Cooperation in the
Field of Statistics

13

The EEA Council
13
The EEA Joint Committee
14
The Standing Committee of
the EFTA States
14
Legal and Institutional
Matters 14
Free Movement of Goods
15
Free Movement of Capital
and Services
22
Free Movement of Persons
23
Flanking and Horizontal
Policies 23

INFORMATION ACTIVITIES

37

ADMINISTRATION 38
APPENDICES 39
FIGURES
Fig 1
Fig 2
Fig 3
Fig 4
Fig 5
Fig 6

Joint Declarations on Cooperation
and Free Trade Agreements between
EFTA and non-EU Partners
Joint Committee Meetings in 2012
Meetings Held and EU Acts
Incorporated in 2012
Publication in the EEA Supplement
2012
2012 EFTA Budget
Contributions from the EFTA States to
the 2012 EFTA Budget

9
11
16
37
38
38

ANNUAL REPORT OF THE EUROPEAN FREE TRADE ASSOCIATION 2012

4

In 2012, EFTA celebrated
the 20th anniversary
of the signing of the
Agreement
on
the
European Economic Area
(EEA), which in 1992
represented a major step
towards the realisation of
a genuine Internal Market
encompassing a large part
of Europe’s economy.
Today, the EEA Agreement remains of fundamental
importance for the three EEA EFTA States’
cooperation with the European Union. It integrates
them into the Internal Market and is efficient in
ensuring its homogeneity. With a population of over
500 million, the EEA constitutes the world’s biggest
common market, and the Agreement has proved to be
a durable instrument of cooperation and a reference for
European integration.
In 2012, a particularly high number of EU legal acts
were incorporated into the EEA Agreement following
a joint effort by the EU and the EEA EFTA States to
streamline the relevant decision-making procedures.
Among them were the New Legislative Framework for
Goods, the Temporary Agency Workers Directive and
the Regulation on Roaming on Public Communications
Networks. Decisions were also taken to secure the
continued participation of the EEA EFTA States in the
EU Emissions Trading System from 2013.
Through the EEA Grants and Norway Grants, Iceland,
Liechtenstein and Norway continue to contribute
to reducing economic and social disparities in the
EEA and strengthening bilateral relations between

The EFTA States have preferential free trade relations
with 60 countries in Europe and across the world, as
well as between themselves. This means that 80%
of EFTA’s merchandise trade is now covered by
preferential trading arrangements. Other important
economic activities such as trade in services,
cross-border investment and access to government
procurement markets also benefit from favourable
provisions in EFTA agreements.
In 2012, new free trade agreements entered into force
with Hong Kong China, Montenegro and Ukraine.
Furthermore, EFTA broadened the range of its free trade
activities in terms of both geographical and substantive
coverage, with negotiations taking place with several
countries in Europe, Asia and Central America. EFTA
Ministers also signed joint declarations on cooperation
with Georgia and Pakistan.
EFTA’s free trade agreements are fully compatible with
the multilateral trading regime and are complementary
to the system. The EFTA States thus continue to
demonstrate their full commitment to a robust
multilateral framework and remain strong supporters
of the World Trade Organization.
Looking ahead, the senior management of the
Association will strive to ensure that the EFTA
Secretariat continues to provide a high level of services
to our Member States and to our partner countries
worldwide.
Kristinn F. Árnason
Secretary-General

5

Foreword

EFTA and the 15 beneficiary countries in Central
and Southern Europe. Key areas of support include
environment and climate change, civil society, human
and social development, cultural heritage, research and
scholarships, and justice and home affairs.

EFTA COUNCIL
EFTA Ministerial Meetings
The EFTA Council met twice at Ministerial level
in 2012, on 28 June in Gstaad, Switzerland and on
12 November in Geneva. The Council was chaired by
Switzerland in the first half of 2012 and by Iceland in
the second.
The EFTA Ministers discussed the state of the global
economy and the prospects for international trade,
expressing concern over weakening international
economic activity and the projected slowdown in
global trade. They underlined the importance of
policies to support economic and financial stability
and job creation, while at the same time preventing
protectionism and ensuring open, competitive markets.


6

Ministers signed joint declarations on cooperation
(JDCs) with Georgia and Pakistan. They reviewed
developments in EFTA’s ongoing trade negotiation
processes with partners worldwide, including Bosnia
and Herzegovina; the Central American States of
Costa Rica, Guatemala, Honduras and Panama; the
Customs Union of the Russian Federation, Belarus and
Kazakhstan; India; Indonesia; Malaysia and Vietnam.
Ministers decided to examine further the possibilities
of developing closer trade relations with potential
partners in the Sub-Saharan African region. They also
emphasised the importance of revising and updating
existing free trade agreements in the light of global
developments in this area.
At their June meeting in Gstaad, EEA EFTA Ministers
welcomed the 20th anniversary of the signing of the
EEA Agreement, and highlighted that the Agreement
was continuing to function well in accordance with
the original objectives. Ministers welcomed the
recent progress made with regard to the processing
of acquis into the Agreement, noting that the amount
of Single Market legislation awaiting incorporation
had been substantially reduced since the beginning
of 2012. Ministers noted with concern the difficulties
encountered with regard to EEA EFTA participation
in certain EU programmes and agencies and called on
all parties to look for pragmatic solutions in order to
resolve these challenges.

The communiqués from the 2012 Ministerial meetings
can be found in the appendices to this report.

New Secretary-General
On 1 September, Kristinn F. Árnason of Iceland took up
his duties as Secretary-General of EFTA. As outgoing
Ambassador and Permanent Representative to EFTA,
the World Trade Organization and other international
organisations in Geneva, as well as former Ambassador
to Norway, he joined the Secretariat with a wealth of
experience in EFTA affairs. His predecessor, Kåre
Bryn, stepped down on 31 August, along with Bergdís
Ellertsdóttir, Deputy Secretary-General in Brussels. At
their meeting in Gstaad, the EFTA Ministers thanked
them for their excellent service to the organisation and
to its members.

The EFTA Council
The EFTA Council met eight times in 2012 at the level
of heads of permanent delegations to EFTA in Geneva.
Delegates discussed EFTA’s relations with countries
outside the European Union, including free trade
negotiations and the management of existing free trade
agreements. They also approved a number of technical
cooperation projects and dealt with administrative and
budgetary matters.

Iceland chaired the EFTA Council during the second half of 2012.
Ambassador Martin Eyjólfsson of Iceland chairing a meeting of the
Council in Geneva.

The EFTA Convention
The Council is responsible for the Vaduz Convention,
which is updated regularly to reflect legislative
developments in the EEA Agreement and the SwissEU Agreements. In 2012, the Council adopted
amendments to Annex E on Seeds and Annex Q on
Air Transport. The Council further adopted substantial
amendments to the Convention’s provisions regarding
agriculture, including the restructuring and renaming
of affected annexes. The entry into force of that
Decision is pending ratification by the Member States.
Further amendments to the Convention were made by
two decisions of the Committee on Mutual Recognition
in relation to conformity assessment under Annex I.

Annual Meeting of EFTA and
EU Finance Ministers
The annual meeting of EFTA and EU Finance
Ministers took place on 13 November under the topic
“Financial market integration and economic growth”.
The meeting was chaired by Vassos Shiarly, Minister
of Finance, representing the Cyprus Presidency of
the EU Council. EFTA was represented by Sigbjørn
Johnsen, Minister of Finance of Norway, as EFTA
Chair; Klaus Tschütscher, Prime Minister and Minister
of Finance of Liechtenstein; Katrín Júlíusdόttir,
Minister of Finance and Economic Affairs, Iceland;
and Didier Burkhalter, Swiss Federal Councillor and
Minister of Foreign Affairs.

EFTA held its summer Ministerial meeting in Gstaad under the chairmanship of Switzerland. Kåre Bryn, Secretary-General; Össur Skarphéðinsson,
Minister for Foreign Affairs and External Trade, Iceland; Aurelia Frick, Minister of Foreign Affairs, Liechtenstein; Johann Schneider-Ammann (Chair),
Federal Councillor, Head of the Federal Department of Economic Affairs, Switzerland; and Trond Giske, Minister of Trade and Industry, Norway.


7

FREE TRADE RELATIONS
EFTA pursued its ambitious free trade agenda in 2012,
aimed at further expanding and deepening preferential
trade relations worldwide. Three free trade agreements
(FTAs) entered into force, bringing the total number
of operational FTAs to 23, covering 27 countries.
Another FTA was awaiting its entry into force.

Signed Free Trade Agreements

By the end of the year, EFTA’s formal engagement
with countries outside the EU had extended to 53
partners at the following levels of cooperation:

Free Trade Negotiations

Free Trade Agreements


8

In 2012, EFTA had operational FTAs with 27 partner
countries: Albania, Canada, Chile, Colombia, Croatia,
Egypt, Hong Kong China, Israel, Jordan, Republic of
Korea, Lebanon, Macedonia, Mexico, Montenegro,
Morocco, Palestinian Authority, Peru, Serbia,
Singapore, the Southern African Customs Union
(SACU; comprising Botswana, Lesotho, Namibia,
South Africa and Swaziland), Tunisia, Turkey and
Ukraine.

The FTA signed in 2009 with the six members of the
Gulf Cooperation Council (GCC; comprising Bahrain,
Kuwait, Oman, Qatar, Saudi Arabia and the United
Arab Emirates) was pending ratification by some
parties.

In 2012, EFTA was engaged in negotiation processes
with 11 countries (Bosnia and Herzegovina; the
Central American States of Costa Rica, Guatemala,
Honduras and Panama; India; Indonesia; Vietnam;
and the Russian Federation, Belarus and Kazakhstan).
Negotiations with Algeria and Thailand remained on
hold.

Joint Declarations on Cooperation
Joint declarations on cooperation were operational
with Georgia, Mauritius, Mongolia, MERCOSUR
(comprising Argentina, Brazil, Paraguay and Uruguay)
and Pakistan.

EFTA and Georgia signed a joint declaration on cooperation at the EFTA Ministerial meeting in Gstaad in June. Vera Kobalia, Minister of Economy and
Sustainable Development of Georgia, and Swiss Federal Councillor, Johann N. Schneider-Ammann (EFTA Chair).

Joint Declarations on Cooperation and Free Trade Agreements between
EFTA and Non-EU Partners
Fig. 1
Albania
Algeria
Canada
Chile
Colombia
Croatia
Egypt
Georgia
Gulf Cooperation Council (GCC)1
Hong Kong China
Israel
Jordan
Republic of Korea
Lebanon
Macedonia
Malaysia
Mauritius
Mexico
Southern Common Market (MERCOSUR)2
Mongolia
Montenegro
Morocco
Pakistan
Palestinian Authority
Panama
Peru
Southern African Customs Union (SACU)3
Serbia
Singapore
Tunisia
Turkey
Ukraine

3

1
2

Joint Declaration
Signature
10 December 1992
12 December 2002

Free Trade Agreement
Signature
Entry into Force
17 December 2009
1 November 2010

19 June 1997
19 June 1997
29 March 1996
20 July 2010
9 June 2009
12 December 2000
28 July 2007
12 December 2000
8 December 1995
12 November 2012
16 December 1996
20 July 2010
24 April 2006
12 December 2000
8 December 1995
19 June 2000

1 July 2009
1 December 2004
1 July 2011
1 April 2002
1 August 2007

22 June 2009
21 June 2011
17 September 1992
21 June 2001
15 December 2005
24 June 2004
19 June 2000

1 October 2012
1 January 1993
1 September 2002
1 September 2006
1 January 2007
1 May 2002

27 November 2000

17 May 2006
19 June 2000
8 December 1995
28 June 2012
23 May 2000

26 January 2008
26 June 2003
25 November 2008
21 June 2001
27 January 2007

1 July 2001
9

14 November 2011
19 June 1997

1 September 2012
1 December 1999

30 November 1998

1 July 1999

24 June 2010
26 June 2006
17 December 2009
26 June 2002
17 December 2004
10 December 1991
24 June 2010

1 July 2011
1 May 2008
1 October 2010
1 January 2003
1 June 2005
1 April 1992
1 June 2012

Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Argentina, Brazil, Paraguay and Uruguay.
Botswana, Lesotho, Namibia, South Africa and Swaziland.

Main Developments
Broadened Negotiation Agenda
EFTA further expanded its negotiation activities with
non-EU partner countries by opening new processes
with Central American States and Vietnam, and by
jointly announcing the start of negotiations with
Malaysia.

Negotiations on a broad-based agreement with India,
commenced in 2008, were pursued through one full
round and several additional meetings at head and
expert level. While further headway was made, a
number of questions remained open at the end of 2012.
With the Russian Federation, along with its Customs
Union partners Belarus and Kazakhstan, three
comprehensive rounds of negotiations were conducted


Partner

in the course of the year. The Russian Federation’s
accession to the World Trade Organization (WTO),
which became effective in August 2012, provided
further impetus to the talks and considerable progress
was achieved in several areas.
The second year of negotiations towards a
“comprehensive economic partnership agreement”
with Indonesia saw two full rounds and a series
of dedicated expert meetings. Strengthening the
understanding of each side’s approaches and exploring
possible outcomes remained at the centre of the work
undertaken.
New negotiations were started in February with the
Central American States of Costa Rica, Guatemala,
Honduras and Panama. By the end of the year, five
rounds had been conducted and talks had been
substantially completed with two partners. The overall
negotiations are expected to be finalised in the first half
of 2013.


10

Another new negotiation process was commenced with
Vietnam in the spring, followed by two comprehensive
rounds. A solid foundation was laid for the continuation
of discussions in 2013.
With Bosnia and Herzegovina, the EFTA States
pursued efforts to settle the last issues outstanding in
the negotiations, which had started in 2011.

Further Processes
In Europe, the FTAs with Montenegro and Ukraine
entered into force, bringing the number of operational
agreements with European partners outside the EU to
eight. While the emphasis of the FTA with Montenegro
is on trade in goods and the protection of intellectual
property rights, the agreement with Ukraine also
covers trade in services, investment, government
procurement, competition and trade facilitation. With
a population of 45 million, Ukraine represents an
important export destination for EFTA in Europe. With
Georgia, a new basis for closer ties was laid by a joint
declaration on cooperation signed in June.
In Asia, the FTA signed in 2011 with Hong Kong
China became EFTA’s third operational agreement
after those with Singapore and the Republic of Korea.

Ambassadors Muhammed Saleemg and Shahid Bashir signing
the EFTA-Pakistan Joint Declaration on Cooperation in Geneva in
November.

In addition to the ongoing negotiation processes
with India and two ASEAN countries (Indonesia and
Vietnam), EFTA jointly announced in November the
launch of negotiations with Malaysia, and confirmed
its willingness to resume the negotiation process with
Thailand when conditions permitted. Furthermore,
a framework for closer ties in the areas of trade and
investment was established with Pakistan through the
signing of a JDC in November.
In the Americas, possible updates and extensions to
existing FTAs were discussed, notably with Canada
and Chile. With Canada, EFTA’s sixth largest trading
partner, it was agreed to explore the possibility of
including trade in services, investment, government
procurement and sustainable development in the
agreement which had entered into force in 2009. EFTA
Ministers also expressed their readiness to continue
exploring options for increasing trade, investment and
cooperation with the MERCOSUR States.
In Africa, negotiations with Algeria remained
suspended during the reporting year, and EFTA
Ministers called for a joint assessment of the situation.
They also agreed to further seek possibilities to deepen
trade relations with countries in Sub-Saharan Africa in
addition to the existing FTA with the Southern African
Customs Union (SACU).

Management of EFTA’s Free
Trade Agreements and Joint
Declarations on Cooperation

On these occasions, EFTA and its partner countries
reviewed the functioning of their respective FTAs.
They made several decisions to update existing rules
and agreed on work plans in view of further revisions.

In 2012, the EFTA States held joint committee meetings
with six free trade partners (Canada, Egypt, Republic
of Korea, Palestinian Authority, Serbia and Turkey).

Experts also convened in preparation for amendments
to agreements with other partners, including Chile,
Jordan and SACU.

Joint Committee Meetings in 2012

Fig. 2

Free Trade Partner

Venue and Date of Meeting

Joint EFTA-Korea Committee (3rd)

Seoul, 14 March 2012

Joint EFTA-Egypt Committee (2nd)

Cairo, 3 May 2012

Joint EFTA-Canada Committee (2nd)

Ottawa, 9-10 May 2012

Joint EFTA-Turkey Committee (10th)

Ankara, 30 May 2012

Joint EFTA-Palestinian Authority Committee (4th)

Geneva, 23 October 2012

Joint EFTA-Serbia Committee (1st)

Geneva, 25 October 2012

Relations with the WTO

Within the framework of EFTA’s technical cooperation
policy (see box), activities in 2012 included:

Under the World Trade Organization’s transparency
mechanism for bilateral and regional trade agreements,
EFTA notified all new free trade negotiations in
2012, as well as the ratification and entry into force
of FTAs. EFTA also submitted notifications to the
WTO Secretariat regarding decisions adopted by joint
committees under existing agreements. In October,
EFTA’s FTA with Serbia was examined by the WTO’s
Committee on Regional Trade Agreements.

• Export promotion seminars in Montenegro and
Ukraine;
• A seminar on government procurement in Indonesia;
and
• A one-week training course for Palestinian officials
on trade policy.

EFTA’s Technical Cooperation
EFTA’s technical cooperation projects cover a range of trade-related areas and are primarily directed at developing
countries and economies in transition. They are funded by the Association and organised by the EFTA Secretariat.
EFTA’s projects normally involve experts from EFTA Member States and partner countries, notwithstanding the
EFTA countries’ own technical cooperation programmes and initiatives. The main objectives of EFTA’s technical
cooperation activities are to support prospective partner countries in preparing for free trade negotiations and to
assist existing partners in the implementation and promotion of FTAs. To this effect, EFTA arranges training,
seminars, workshops and study visits adapted to the particular needs of the partner countries.
Areas in which EFTA provides assistance include trade facilitation and promotion, customs and origin matters,
technical barriers to trade, sanitary and phytosanitary measures, intellectual property rights, government procurement,
competition, services and statistics. EFTA also participates in EU technical cooperation programmes and projects
aimed at third countries, especially in relation to customs matters, standardisation and statistics.

11

Technical Cooperation

Efta’s Worldwide Network


12

EFTA States 4
(Free trade area)

EFTA States 4

European Union 27
(Free trade area)
(Free trade partner)
EFTA Free Trade Agreements 24
European Union 27
Albania, Canada, Chile, Colombia, Croatia, Egypt, Gulf Cooperation Council (GCC; comprising Bahrain,
(Free trade partner)
Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates), Hong Kong China, Israel, Jordan, Republic
of Korea, Lebanon, Macedonia, Mexico, Montenegro, Morocco, Palestinian Authority, Peru, Serbia,
EFTA Free Trade Agreements 24
Singapore, Southern African Customs Union (SACU; comprising Botswana, Lesotho, Namibia, South
Albania, Canada, Chile, Colombia, Croatia, Egypt, Gulf Cooperation Council (GCC; comprising Bahrain,
Africa and Swaziland), Tunisia, Turkey and Ukraine.

Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates), Hong Kong China, Israel, Jordan, Republic

FTA negotiations Lebanon, Macedonia, Mexico, Montenegro, Morocco, Palestinian Authority, Peru, Serbia,
of Korea,
Algeria, Bosnia and Herzegovina, Central American States (Costa Rica, Guatemala, Honduras and
Singapore, Southern African Customs Union (SACU; comprising Botswana, Lesotho, Namibia, South
Panama), India, Indonesia, Malaysia, Russian Federation/Belarus/Kazakhstan, Thailand and Vietnam.

Africa and Swaziland), Tunisia, Turkey and Ukraine.

Georgia, Mauritius, MERCOSUR (comprising Argentina, Brazil, Paraguay and Uruguay), Mongolia and
FTA negotiations
Pakistan.

Algeria, Bosnia and Herzegovina, Central American States (Costa Rica, Guatemala, Honduras and

Panama), India, Indonesia, Malaysia, Russian Federation/Belarus/Kazakhstan, Thailand and Vietnam.
Free trade relations of individual EFTA States
China, Faroe Islands and Japan.
Georgia, Mauritius, MERCOSUR (comprising Argentina, Brazil, Paraguay and Uruguay), Mongolia and
Pakistan.
Free trade relations of individual EFTA States
China, Faroe Islands and Japan.

THE EEA AGREEMENT
20th Anniversary of the Signing of the EEA Agreement
To commemorate the 20th anniversary of the signing
of the EEA Agreement in May 1992 in Porto, Portugal,
EFTA issued a special Bulletin in September on “The
European Economic Area and the Single Market – 20
years on”. In this publication, authors from each of the
three EEA EFTA States reflect on the developments that
have taken place in the European Economic Area over
the years, assess the current functioning of the Agreement
and discuss the future challenges faced by its signatories.
In addition, the second of EFTA’s biannual seminars on
the EEA focused on “The evolution of the Single Market
and the EEA Agreement – 20 years on”. Presentations
included an analysis of the design and purpose of the
Single Market, and how it has developed over the last 20
years. Elsewhere, the EEA Consultative Committee and
EEA Joint Parliamentary Committee organised a joint
commemorative event in Iceland (see Advisory Bodies).

The EEA Council
The EEA Council was chaired by the EU in the
first half of 2012 and by EFTA in the second half
of the year. The EEA Council met on 14 May and
26 November to review the ongoing work in EEA
cooperation and to note the progress reports of the
EEA Joint Committee. The Ministers confirmed the
positive overall functioning and development of the
EEA Agreement and appreciated the fact that new acts
were being incorporated quickly into the Agreement.
They also discussed the current financial crisis and
its implications for the EEA, including regulation of
the financial system, the EEA Financial Mechanisms,
decision making and shaping, and energy and climate
change. In addition, the EEA Council held orientation
debates on strategies for growth in Europe and trade
and regulatory cooperation with EEA neighbours. The
conclusions from these meetings can be found in the
appendices to this report.

Aurelia Frick, Minister of Foreign Affairs, Liechtenstein, and Espen
Barth Eide, Minister of Foreign Affairs, Norway, at an EEA Council
meeting in Brussels.


13

14



Ambassador Atle Leikvoll, Mission of Norway to the EU, chairing the meeting of the EEA Joint Committee in October.

The EEA Joint Committee met eight times in 2012 and
adopted 223 decisions incorporating 486 legal acts.
Among the more significant decisions adopted by
the Joint Committee were those concerning the
incorporation of legal acts regarding consumer rights,
roaming, the revised Emissions Trading System (ETS),
the Eurovignette, the new legislative framework for
goods, audiovisual media services and maritime safety.
Discussions in the Joint Committee focused on how to
further improve the processing of acquis and reduce
the number of outstanding legal acts.
Over the year, the European Commission provided the
Joint Committee with briefings on the Single Market
Act II and a blueprint for a deep and genuine economic
and monetary union.

The Standing Committee of the
EFTA States
The Standing Committee was chaired by Iceland in
the first half of 2012 and by Norway in the second

half of the year. The agendas and conclusions of the
Standing Committee meetings are available on the
EFTA website. On 26 November, the EFTA Standing
Committee held a joint meeting at Ministerial level
in Brussels with the Committee of Members of
Parliament of the EFTA States and the Consultative
Committee, to discuss developments in the EEA.

Legal and Institutional Matters
Subcommittee V on Legal and Institutional Questions
met five times in 2012. The Subcommittee devoted
considerable efforts to making general information
about the EEA Agreement more available. The
revision of the comitology system in the EFTA
pillar was completed and criminal law sanctions in
Internal Market legislation remained on the agenda.
The Subcommittee also discussed the status of the
coal and steel sectors under the EEA Agreement and
the territorial scope of the EEA Agreement. Finally,
the Subcommittee continued to monitor two-pillar
issues in the EEA Agreement, as well as case law
developments in the EEA.

Free Movement of Goods

Veterinary issues

A substantial part of EU legislation concerns the
free movement of goods, a principle that is applied
throughout the Single Market. Today, about 75% of
trade in the Single Market is in goods, but this does
not imply that all products can circulate freely. They
must conform to requirements set for the protection
of legitimate interests such as health, safety and the
environment. Additionally, in order to ensure a fair and
efficient market, a wide range of legislative measures
have been established in the fields of competition, state
aid and public procurement.

Veterinary legislation covers animal and public health
requirements for the production, trade and imports of
live animals and animal products, as well as issues
related to the control of these products. Arrangements
for animal welfare and the control and prevention of
animal diseases are also included.

Three committees deal with issues related to goods
under the EFTA Council: the Committee on Technical
Barriers to Trade (TBT), the Committee of Origin and
Customs Experts (COCE) and the Committee on Trade
Facilitation (TF).

Animal feed
Legislation in the area of animal feed concerns
marketing and labelling, undesirable substances
in feed, the authorisation of feed additives and the
monitoring of feed-producing establishments.
In 2012, 42 legal acts related to animal feed were
incorporated into the EEA Agreement.

Food
15

Veterinary, Food and Agricultural
Issues

The Food Law Package ensures that the EEA EFTA
States participate fully in the European Food Safety
Authority (EFSA), including the possibility of
employment for EEA EFTA nationals.
Veterinary and food legislation in the EEA Agreement
apply to Iceland and Norway only. Since 2007,
Liechtenstein has been subject to the Swiss-EU
Agricultural Agreement pertaining to legislation in
these areas.

The EEA EFTA States continued to discuss the Novel
Foods Regulation, as well as regulations on genetically
modified food and feed, and on the traceability and
labelling of genetically modified organisms (GMOs).
These have not yet been incorporated into the EEA
Agreement.


Subcommittee I prepares for the integration into the
EEA Agreement of legislation relating to all aspects
of the free movement of goods – competition, state
aid, public procurement, intellectual property rights
and energy matters. Subcommittee I is assisted by 11
working groups and 27 expert groups.

In 2012, the EEA Joint Committee incorporated 47
acts in the veterinary area into the EEA Agreement. In
addition, a number of legal acts were implemented by
means of simplified procedure (see box).

Meetings Held and EU Acts Incorporated in 2012

Fig. 3

Number of meetings
in 2012

Number of acts
incorporated in 2012

EEA Joint Committee

8

486

Standing Committee of the EFTA States

8

–

SUBCOMMITTEE I

7

319

Competition Policy

1

–

Customs Matters

4

–

1

Working Groups

Customs Security Measures

–

–

Energy Matters

4

12

Fisheries

–

–

Food Chain2

3

147

Intellectual Property Rights

2

–

Processed Agricultural Products

1

–

Public Procurement

1

2

State Aid

–

2

Technical Barriers to Trade (TBT)

4

6

Agricultural and Forestry Tractors

–

10

Appliances Burning Liquid or Gaseous Fuels

–

–

ATEX (equipment for use in explosive atmospheres)

–

–

Cableway Installations

–

–

Chemicals

–

33

Ad Hoc Group on Plant Protection Products

1

–

Ad Hoc Group on Good Laboratory Practice

–

–

Construction

–

15

Cosmetics

–

3

Defence-Related Products (Ad Hoc)

–

–

Electrical Equipment

–

–

Explosives

–

1

Fertilisers

–

2

Machinery

–

–

Marine Equipment

–

2

Maximum Residue Levels (MRLs)

–

17

Expert Groups under TBT


16

Measuring Instruments

14

–

34

Organic Production

–

–

Personal Protective Equipment

–

–

Pressure Equipment
2

1

1

Motor Vehicles

1

–

Medicinal Products and Medical Devices

–

–

In November 2009, the Standing Committee approved the practical merger of Subcommittees I, II, III and IV.
Food Chain encompasses Veterinary Matters, Feedingstuffs, Plant Health and Foodstuffs.

Number of meetings
in 2012

Number of acts
incorporated in 2012

Product Safety and Market Surveillance

1

1

Recreational Crafts

–

–

Telecommunications Equipment

–

–

Textiles

–

3

Tobacco

–

1

Wine and Spirit Drinks

–

13

SUBCOMMITTEE II

7

75

Company Law

0

1

Electronic Communication, Audiovisual Services and
Information Society

3

13

Working Groups

Data Protection Expert Group

0

–

Financial Services

3

13

Postal Services

0

–

Transport

5

48

SUBCOMMITTEE III

7

7

Free Movement of Persons, Employment and Social
Policy3

34

1

Recognition of Professional Qualifications

0

1

Social Security

3

5

SUBCOMMITTEE IV

7

85

Budgetary Matters

1

0

Civil Protection

1

1

Consumer Affairs

3

6

Cultural Affairs

1

–

Education, Training and Youth

3

–

Working Groups

EFTA Consumers’ Consultative Committee

–

Enterprise Policy and Internal Market Affairs

3

2

Environment

3

64

Gender Equality, Anti-Discrimination and Family Policy

2

–

Heads of National Statistical Institutes

1

9

Health and Safety at Work and Labour Law5

46

2

Public Health

2

–

Research and Development
Social Security (Subcommittee III)
SUBCOMMITTEE V

3

–

(see above)

17

5

–

Temporarily merged with the Working Group on Health and Safety at Work and Labour Law from June 2011 to September 2012.
All meetings took place while WG PES and the WG HSLL were merged. One of the meetings was a joint meeting with the EFTA Consultative
Committee.
5
Temporarily merged with the Working Group on Free Movement of Persons, Employment and Social Policy from June 2011 to September 2012.
6
Three of the meetings took place while WG PES and the WG HSLL were merged, of which one was a joint meeting with the EFTA Consultative
Committee.
7
As budget lines are incorporated under Protocol 31 EEA, related JCDs are formally adopted under the Subcommittee IV structure.
3
4


Working Groups

17

Preparation continued for the incorporation of the new
legal framework on organic production.
In 2012, 36 legal acts were incorporated into the EEA
Agreement in the foodstuffs area. A number of legal
acts were also implemented by means of simplified
procedure.

Simplified Procedure
The simplified procedure is a derogation from the
normal procedure for the incorporation of acts
into the EEA Agreement. Until the introduction of
the simplified procedure in 2001, acts were only
incorporated by EEA Joint Committee Decisions,
which in many cases took more than half a year.


18

It is essential that many of the measures in the
veterinary field are implemented and applied shortly
after their adoption in the EU. This is of particular
importance when it is necessary to put safeguard
and protective measures in place urgently. The
simplified procedure requires EEA EFTA States to
“simultaneously with the EU Member States take
measures corresponding to those taken by the latter”.
The following acts in the veterinary field are subject to
simplified procedure:
• Texts of application concerning imports from third
countries;
• List of establishments in third countries;
• Safeguard and protective measures concerning the
EU territory or imports from third countries; and
• Safeguard measures and listing of countries
and territories concerning the non-commercial
movement of pet animals.
In addition, the Food Law Regulation introduced the
simplified procedure in the foodstuffs area for acts
related to emergency measures concerning the EU
territory or imports from third countries.

parties exchanged information on developments in their
respective agricultural policies, and on trade statistics.
They also discussed the principles of Protocol 3 and
concluded that the Protocol was functioning well.

Technical Barriers to Trade
EFTA deals with the removal of technical barriers
to trade in two forums: the TBT Committee, which
reports to the EFTA Council, and the Working Group
on TBT, which coordinates the assessment of EEA
relevance and acceptability of new EU legislation to
the three EEA EFTA States. Switzerland is an observer
in the Working Group on TBT.
In 2012, the TBT Committee gave written input
to the European Parliament on the Regulation on
European Standardisation, which was adopted on 14
November 2012. The Regulation constitutes a new
legal basis for cooperation between the three European
standardisation organisations (ESOs) and the European
Commission and EFTA. The Committee discussed
policy and financial issues in relation to standardisation
and accreditation, as well as horizontal TBT issues
such as the revision of the Blue Guide (the guide to EU
legislation on industrial products), the alignment of the
New Approach Directives with the New Legislative
Framework for Goods, the newly established multistakeholder platform for ICT standardisation policy,
market surveillance of goods, certification and CE
marking, and technical barriers to trade in the Single
Market. The Committee also worked on keeping the
Vaduz Convention updated and continued to follow the
two-year EU quality infrastructure project, IPA 2011.
The Working Group on TBT discussed the Goods
Package, the alignment of the New Approach Directives
with the New Legislative Framework for Goods, the
incorporation of the Standardisation Regulation and
mutual recognition agreements. It also submitted an
EEA EFTA Comment on the Commission’s initiative
to update the Blue Guide.

Trade in agricultural products

Motor vehicles

In October 2012, Iceland, Norway and the European
Commission carried out their annual review of trade
in processed agricultural products in accordance with
Article 2(2) of Protocol 3 to the EEA Agreement. The

In 2012, 32 technical acts on motor vehicles were
incorporated into the EEA Agreement, including
the Framework Directive for the approval of motor
vehicles and trailers.

Medicinal products
The EEA EFTA States continued their discussions
with the EU on the incorporation of the Paediatric
Regulation.

Dangerous substances

Market surveillance and consumer product
safety
The EFTA States are fully committed to the enhanced
application of market surveillance under the terms
of the new legislative framework for the marketing
of products. In 2012, the EFTA States participated
in meetings conducted by the Senior Officials Group
for Standardisation and Conformity Assessment
Policy (SOGS) and the SOGS Market Surveillance
Group.
In 2012, the European Commission worked on the
preparation of a new legislative package on product
safety and market surveillance. The EFTA States
are actively contributing to the development of
this package and will continue to support the EU in
improving product safety and market surveillance.

European Standardisation

Mutual recognition agreements
Mutual recognition agreements (MRAs) facilitate
market access by reducing the costs and time associated
with obtaining product certification. Protocol 12 EEA
ensures the smooth functioning of the EEA market with
regard to MRAs. In this respect, the EEA EFTA States
discussed ongoing EU negotiations and discussions on
new and revised MRAs, and assessed possible EEA
EFTA follow-up.

In 2012, EFTA dealt with 36 mandates for new
standardisation activities covering a wide range of
sectors. In addition, EFTA signed 57 agreements in the
standardisation area.
EFTA continued its financial support to the European
Cooperation for Accreditation (EA), the European
Association for the Coordination of Consumer
Representation in Standardisation (ANEC), the
European Environmental Citizens Organisation
for Standardisation (ECOS) and the European
Organisation for Technical Approvals (EOTA).
Through the Competitiveness and Innovation
Programme, the EEA EFTA States also provided
financial support to the European Office of Crafts,
Trades and Small and Medium-sized Enterprises for
Standardisation (NORMAPME), which promotes the
interests of SMEs in standardisation.

19

Trade in and use of dangerous substances are strictly
regulated in order to protect consumers, workers and
the environment. The EEA Agreement contains both
general chemicals legislation and product-specific
legislation. In total, 30 acts concerning dangerous
substances were incorporated into the EEA Agreement
in 2012.

The EFTA States and the European Commission give
financial support to the following three European
standardisation organisations: the European Committee
for Standardization (CEN), the European Committee
for Electrotechnical Standardization (CENELEC) and
the European Telecommunications Standards Institute
(ETSI). Like the European Commission, EFTA has
the formal status of counsellor to CEN and ETSI
and participates in the administrative boards of these
organisations, as well as in the general assemblies of
the three ESOs.

Furthermore, the EFTA States cofinance and contribute
to projects with seconded European standardisation
experts in China and India, as well as to the EuropeChina Standards Information Platform (CESIP). This
platform is an information tool that aims to strengthen
mutual trade and investment flow between Europe
and China by making standards and related technical
regulations more accessible.

Energy
In 2012, 12 acts in the field of energy were incorporated
into the EEA Agreement, half of which concern the
labelling of energy-related products, including the
Energy Labelling Framework Directive. Other acts
incorporated relate to ecodesign requirements for
energy-related products and the labelling of tyres,
as well as renewable energy action plans under the
Renewable Energy Directive, which was incorporated
in 2011.


20

The EEA EFTA States closely monitored the EU
decision-making process concerning the Energy
Infrastructure Package, as well as the new Energy
Efficiency Directive. They also moved closer towards
incorporating the Third Package for the Internal
Energy Market into the EEA Agreement.

State Aid
The EEA EFTA States incorporated one decision
and one regulation with regard to the state aid rules
applicable to Services of General Economic Interest
(SGEI) compensation.
In addition, they participated in several multilateral
state aid meetings related to the Commission’s State
Aid Modernisation (SAM) initiative, which was
launched on 8 May 2012 and aims to fully reform and
update the European state aid framework by the end
of 2013.

Public Procurement
Two acts were incorporated into the EEA Agreement in
the field of public procurement: one regulation updating
the public procurement thresholds and another related
to standard notification forms.
The EEA EFTA States followed the EU decision-making
process related to the reform of the public procurement
legislative framework, following the presentation in
December 2011 of a reform package consisting of
proposals for three directives. Two of the proposals
will replace the existing procurement directives (the
“Utilities” Procurement Directive and the “Classical”
Procurement Directive) and the third is for a new
directive concerning service concession contracts. The
reform focuses on simplifying existing rules; facilitating
SME access to public contracts; promoting green, social
and innovation procurement; and increasing the use of
electronic procurement. In relation to a hearing in the
European Parliament’s Internal Market and Consumer
Protection (IMCO) Committee in March 2012, the EEA
EFTA States submitted an EEA EFTA Comment to the
EU institutions on the proposed reform package. The
Comment was discussed with representatives of the
European Commission, the Parliament and the Council.

Intellectual Property
Competition Policy
The EEA EFTA States initiated a review of the acts
that had been incorporated into the EEA Agreement
in relation to the former European Coal and Steel
Community.

In October 2012, a directive for certain permitted uses
of orphan works was adopted on the EU side. Orphan
works are works that are still in copyright but whose
owners cannot be identified or located. The EEA EFTA
States are currently scrutinising the directive with the
aim of incorporating it into the EEA Agreement.

In their day-to-day work, the EFTA Committee of
Origin and Customs Experts (COCE) and the EEA
EFTA Working Group on Customs Matters addressed
other customs and origin matters related to FTAs with
third-country partners, and other technical customs
issues among EFTA States to guarantee good relations
between customs administrations and the smooth
functioning of preferential trade relations. Among
others, the COCE is working towards the swift
inclusion of the Western Balkan countries in the PEM
cumulation system.

Safety and security matters

In April 2012, the EU entrusted the Office for
Harmonization in the Internal Market with the
responsibility for the European Observatory on
Infringements of Intellectual Property Rights. The
EEA EFTA States participated in the first plenary
meeting of the observatory in September 2012.
In November 2012, the European Commission
presented a proposal for a directive on collective rights
management and multi-territorial licensing of rights in
musical works for online uses. The EEA EFTA States
are following this issue closely.

Customs Matters, Safety and
Security Matters and Trade
Facilitation
The Regional Convention on Pan-Euro-Mediterranean
Preferential Rules of Origin (PEM Convention), which
will replace the current network of origin protocols in
the various agreements of the PEM free trade zone,
entered into force in 2012 in all EFTA States and the
EU, while most of the Mediterranean countries have
yet to sign it.

Trade Facilitation
Trade facilitation seeks to improve procedures and
controls in merchandise trade across national borders
by reducing associated cost burdens and maximising
efficiency, while safeguarding legitimate regulatory
objectives. Recent developments, such as the
challenge of bringing trade facilitation in line with
growing safety and security concerns, as well as rising
concerns about the (mis)use of trade procedures as
trade policy tools, have heightened the political profile
of trade facilitation. The EFTA Committee on Trade
Facilitation follows EFTA’s trade negotiations and
is continuously analysing the developments of trade
facilitation within other international organisations
such as the World Trade Organization, the United
Nations Economic Commission for Europe, the
Organisation for Economic Co-operation and
Development and the World Customs Organization,
which have all added trade facilitation to their agendas.

21

The EU Council has agreed to a general approach to
a unitary patent for Europe. In addition, discussions
are currently taking place in the European Parliament
on the establishment of what is now known as the
“Unified Patent Court”. The EEA EFTA States are
following this issue closely.

With the conclusion of bilateral agreements by Norway
and Switzerland with the EU, these two countries were
integrated into the EU’s safety and security system,
with the result that traders do not have to submit
prearrival/predeparture declarations when trading
with the EU. The Norwegian bilateral agreement
was implemented in Protocol 10 EEA, and a joint
working group responsible for the implementation
and monitoring of the safety and security measures
addressed under the bilateral agreement was set up and
began its work in October 2012.

Free Movement of Capital and
Services
Subcommittee II on the Free Movement of Capital
and Services coordinates matters of financial services,
company law, electronic communications, audiovisual
services, information society and data privacy, postal
services and transport. Five working groups report to
Subcommittee II.

Financial Services
The EEA EFTA States are assessing the significant
number of legislative acts issued by the EU in response
to the 2008 financial crisis, in particular the regulations
creating a European architecture of financial
supervision. In addition to the European Systemic Risk
Board, responsible for macro-prudential supervision,
the EU established three new supervisory bodies at
micro-prudential level:
• European Banking Authority;
• European Insurance and Occupational Pensions
Authority; and


22

• European Securities and Markets Authority.
Discussions are ongoing between the EEA EFTA States
and the EU side on adequate EEA EFTA participation
in these authorities. In January 2012, the EEA EFTA
side submitted an EEA EFTA Comment on two
Commission proposals concerning credit institutions
and investment firms.

Postal Services
Deliberations took place regarding the incorporation
of the Third Postal Services Directive into the EEA
Agreement.

Transport
The EEA EFTA States considered a significant number
of proposals for new EU acts and discussed these in
depth with the EU. An important development was
the incorporation into the EEA Agreement of the
Eurovignette Directive on the charging of heavy goods
vehicles.
Other important issues on the transport agenda were
the proposals for the revision of the guidelines for the
development of a trans-European transport network
and the Roadworthiness Package. For the latter issue,
an EEA EFTA Comment was submitted to the EU side.
In the rail sector, high priority was given to the
Regulation concerning a European rail network for
competitive freight, legislation on interoperability and
the proposal to establish a Single European Railway
Market.

Company Law
In 2012, the EU adopted the Directive on the
interconnection of central, commercial and company
registers. The EEA EFTA States are currently
deliberating on the incorporation of the Directive into
the EEA Agreement.

Electronic Communications,
Audiovisual Services, Information
Society and Data Privacy
In electronic communications, experts from the EEA
EFTA States continued to work on the incorporation
of the Telecom Package into the EEA Agreement,
notably the role of the EEA EFTA States in the Body
of European Regulators in Electronic Communications
(BEREC).

In maritime transport, the EEA EFTA States prioritised
the proposal for amendments to the Regulation on the
Establishment of the European Maritime Agency and
the Regulation on Passenger Rights.

Free Movement of Persons
Subcommittee III on the Free Movement of Persons
coordinates matters related to all aspects of the free
movement of persons, including social security and
the recognition of professional qualifications. Three
working groups report to Subcommittee III.

Free Movement of Persons,
Employment and Social Policy
In the area of free movement, the EEA EFTA States
monitored developments on the EU side related to
proposals for third-country nationals legally residing
in the EU. They also followed a potential initiative on
the enforcement of rights of EU migrant workers and
members of their families in relation to the fundamental
principle of free movement of workers. They discussed
participation in the European Year of Citizenship
2013, concluding that the EEA EFTA States would not
participate. With regard to employment, EEA EFTA
experts were invited to the informal meetings of the
EU Employment Committee (EMCO), where they
submitted a report on the labour market situation in
each of the EEA EFTA States. They participated in
EURES, a cooperation network between the European
Commission and the public employment services of
the EEA Member States providing information and
assistance to workers and employers, and monitored
the planned reforms of this network.
As regards social policy, the EEA EFTA States
continued their informal dialogue with the EU’s Social
Protection Committee. They participated actively in
both the employment and social protection sections
of the PROGRESS Programme, which supports the
implementation of the European Employment Strategy
and underpins the EU’s coordination activities in the
fight against poverty and social exclusion, and also
monitored the proposed successor instrument to the
PROGRESS Programme, the Programme for Social
Change and Innovation (2014-2020).

Social Security
New social security coordination rules were applied in
Switzerland on 1 April and in Iceland, Liechtenstein
and Norway on 1 June. These new rules completely
replace Annex VI to the EEA Agreement on the
coordination of social security schemes. Their aim is
to modernise and simplify social security coordination
within the EU and EEA.

Recognition of Professional
Qualifications
The EEA EFTA States closely monitored the
Commission’s adopted proposal to revise the
Professional Qualifications Directive. In this respect,
an EEA EFTA Comment on the Commission’s proposal
on modernising the Professional Qualifications
Directive was sent to the EU side in September.

Flanking and Horizontal Policies
Subcommittee IV on Flanking and Horizontal Policies
coordinates matters related to all aspects of the
horizontal provisions of the EEA Agreement, as well
as cooperation outside the four freedoms. 13 working
groups report to Subcommittee IV.

Research and Development
The EEA EFTA States continued to follow the
implementation of the Seventh Framework Programme
on Research, the Europe 2020 Strategy and its flagship
initiatives in the area of research and innovation, as
well as the EU’s ongoing work on new European
Research Area (ERA) initiatives. They also followed
the Commission’s preparation of its proposal for a
new framework programme in the field of research
and innovation – Horizon 2020, the Commission’s
proposal to amend the Regulation establishing the
European Innovation and Technology Institute (EIT)
and the Commission’s proposal for a decision on the
EIT’s Strategic Innovation Agenda.
The EEA EFTA States are negotiating with the
Commission on the possibility of incorporating
the Council Regulation on the Community legal
framework for a European Research Infrastructure
Consortium (ERIC) into the EEA Agreement.

23

The main items on the agenda in the field of air
transport were the Second Single European Sky
Package and legislation linked to aviation security.

Environment

Education, Training and Youth

adopted several decisions
in the field of environment
in 2012, namely on the
inclusion of the revised EU
Emissions Trading System
(ETS) Package, the Carbon
Capture
and
Storage
Directive, the recast Regulation on substances depleting
the ozone layer, the Directive on public participation
in drawing up plans and programmes relating to the
environment, the new Ecolabel Regulation and related
decisions, the Eco-Management and Audit Scheme
(EMAS) and various acts linked to the Infrastructure
for Spatial Information in the European Community
(INSPIRE).


24

One of the main priorities for 2012 was to finalise
preparation for the third ETS trading period, which
starts on 1 January 2013. In this context, after several
years of discussion, the revised EU ETS Package
was adopted in July 2012. Since then, EEA EFTA
environmental experts have been concentrating on
the incorporation of the amended ETS Union Registry
Regulation into the EEA Agreement, as well as on the
ETS Monitoring and Reporting Regulation and ETS
Verification and Accreditation Regulation.
The EEA EFTA States also submitted an EEA EFTA
Comment to DG Clima’s consultation on the review of
the auction time profile for the EU ETS.
Experts focused on areas such as the mercury export
ban, fuel quality, the obligations of operators who
place timber and timber products on the market and
the European Earth Monitoring Programme (GMES).
Other initiatives followed by the EEA EFTA States
in 2012 included a proposal to cut sulphur dioxide
emissions from shipping, a proposal establishing a
programme for environment and climate action – LIFE
(2014-2020), a proposal foreseeing accounting rules
and action plans on greenhouse gas emissions and
removals from activities related to land use, land-use
change and forestry (LULUCF).
Topics discussed with the Commission included EU
air quality policy, EU waste management policy and
the latest developments regarding the roadmap on a
resource-efficient Europe.

The EEA EFTA States continued to monitor the
implementation of the Lifelong Learning Programme
(2007-2013) and the Youth in Action Programme
(2007-2013). They followed discussions in Council
and in the Parliament on the Commission’s proposal
for a new programme in the field of education,
training and youth – Erasmus for All (2014-2020), and
submitted an EEA EFTA Comment on this subject to
the EU.
Experts followed the 2012 Youth Report adopted by
Council on 27 November 2012. The report includes
a summary of how the EU Youth Strategy has been
implemented at national and EU level since 2010,
and a comprehensive analysis of the situation faced
by young people. It draws on input from Member
States, government agencies and ministries as well as
consultations with young people. Candidate countries
and EFTA countries also participated in the reporting
exercise.

Gender Equality, AntiDiscrimination and Family Policy
The EEA EFTA States continued to participate in the
gender equality strand of the PROGRESS Programme
and in the Daphne III Programme on Community
action to prevent violence against children, young

people and women, and to protect victims and
groups at risk (2007-2013). Experts also focused on
relevant proposals for new programmes within the
Multiannual Financial Framework (2014-2020),
and particular attention was given to the Rights and
Citizenship Programme. Experts also monitored plans
for an accessibility act and the proposal to increase the
representation of women on company boards.

main focus for 2012, in particular the IMI Regulation
issued in November. The EEA EFTA States submitted
an EEA EFTA Comment to the EU in March on the
proposal for a regulation of the European Parliament
and of the Council on administrative cooperation
through the IMI System.

Consumer Affairs

The EEA EFTA States continued to participate actively
in the Community Mechanism for Civil Protection
and the Civil Protection Financial Instrument (20072013). Particular attention was given to the ongoing
revision of the legal instruments in this area and the
Commission’s proposals for a revised mechanism and
financial instrument.

The EEA EFTA States were included in both editions
of the Consumer Market Scoreboard published in
2012.
Two further priorities for 2012 were the proposal for
a Consumer Programme (2014-2020) and the new
European Consumer Agenda.

Enterprise Policy and Internal
Market Affairs
The main issue monitored by the EEA EFTA States
in enterprise policy and Internal Market affairs was
the proposal for the Programme on Competitiveness
of Enterprises and SMEs (COSME), on which they
submitted an EEA EFTA Comment. Linked to this is
the Horizon 2020 Programme, in particular the aspects
related to innovation, growth and competitiveness. The
EEA EFTA States also followed the implementation of
the Services Directive, particularly the packages on
services and governance, issued by the Commission in
June 2012.
An EEA EFTA Comment on the Commission’s
Communication on “A coherent framework to build
trust in the Digital Single Market for e-commerce and
online services” was also submitted to the EU.
The Internal Market Information (IMI) system,
which provides a multilingual database to support the
implementation of Internal Market legislation, was a

Cultural Affairs
The EEA EFTA States’ main priorities in the field of
culture and sport were to follow the new proposal on
Creative Europe (2014-2020) and to stay informed of
the activities of the Commission’s “open method of
coordination” (OMC) working groups.

Health and Safety at Work and
Labour Law
In the area of health and safety at work, the EEA
EFTA States followed the proposed revision of the
Electromagnetic Fields Directive and the proposal for
a directive concerning flag state responsibilities. They
also monitored the Commission strategy on health and
safety at work (2013-2020).

25

The EEA EFTA States followed the revision of
consumer acquis and incorporated the Directive on
Consumer Rights into the EEA Agreement. EEA
EFTA experts also closely monitored the proposal on
a common European sales law, submitting an EEA
EFTA Comment to the EU. EEA EFTA Comments
were also submitted on the Commission’s proposals
on alternative dispute resolution and online dispute
resolution, which were main points of interest in 2012.

Civil Protection

In the area of labour law, experts followed
developments related to the planned revision of the
Working Time Directive. They also paid particular
attention to the proposal for a directive on the
enforcement of the Directive on Posting of Workers.
The EEA EFTA States also followed relevant issues
in the social dialogue, i.e. discussions, consultations,
negotiations and joint actions involving organisations
representing employers and workers.

Public Health
The EEA EFTA States prepared for the incorporation
of the Patient Mobility Directive into the EEA
Agreement and experts attended the meetings of
the new Comitology Committee on Cross-border
Healthcare on the EU side. Particular attention was
given to pandemic preparedness and health security,
including the possible joint procurement of vaccines,
developments at EU level with regard to the possible

EEA EFTA Comments in 2012
One of the ways in which the EEA EFTA States participate in shaping EU legislation is by submitting comments
to the EU side on important policy issues. In 2012, 14 EEA EFTA Comments were sent to the Commission, the
European Parliament and the Council on:


26

• The Commission’s proposal for periodic roadworthiness tests for motor vehicles and their trailers –
COM(2012) 382;
• The Commission’s revision of the Blue Guide on EU Legislation on Industrial Products;
• The Commission’s draft proposal for amendments to the Regulation on the Auction Time Profile for the
EU Emissions Trading System;
• The Commission’s proposal for a regulation on a common European sales law – COM (2011) 635;
• The Council’s partial general approach on the Commission’s proposal for the Programme for the Competitiveness
of Enterprises and SMEs (COSME) 2014-2020;
• The Commission’s proposal for amendments to the Directive on the Recognition of Professional Qualifications –
COM(2011) 883;
• The Commission’s communication on a coherent framework to build trust in the Digital Single Market for
e-Commerce and Online Services – COM(2011) 942;
• The Commission’s proposals for a directive on alternative dispute resolution – COM(2011) 793 – and a regulation
on online dispute resolution – COM(2011) 794;
• The Commission’s proposals for two new directives on public procurement – COM(2011) 895 and COM(2011)
896;
• The Commission’s proposal for a regulation on administrative cooperation through the Internal Market Information
System (IMI) – COM (2011) 522;
• The Commission’s proposal for a regulation establishing Horizon 2020 – the Framework Programme for Research
and Innovation (2014-2020) – COM(2011) 809;
• The Commission’s public consultation on measures for improving the recognition of prescriptions issued in
another Member State;
• The Commission’s proposal for a regulation establishing “Erasmus for All” – the Union Programme for Education,
Youth and Sport – COM(2011) 788; and
• The Commission’s proposals for regulations on prudential requirements for credit institutions and investment
firms – COM(2011) 452 – and on the access to the activity of credit institutions and the prudential supervision of
credit institutions and investment firms – COM(2011) 453.
The full list of EEA EFTA Comments can be found here: http://www.efta.int/eea/eea-efta-comments.aspx

Following the launch by the Commission of a public
consultation on measures for improving the recognition
of medical prescriptions, the EEA EFTA States
submitted their views in an EEA EFTA Comment to
the EU side.

Budgetary Matters
The annual EEA EFTA Budget covers the EEA EFTA
countries’ contribution to the EU Budget and allows
for EEA EFTA participation in EU programmes,
actions and agencies.
Of particular interest in 2012 were the estimated
budgetary implications of the proposal for the
Multiannual Financial Framework (2014-2020),
adopted by the Commission in 2011. The EEA EFTA
States’ commitment to EU operational costs in 2012
was EUR 312 million, an increase of EUR 50 million
from 2011. EEA EFTA contributions in 2012 amounted
to EUR 241 million, adjusted for the 2010 credits.
The EEA EFTA States also contribute to the
administrative costs of the European Commission,
an important part of which is the contribution in
kind of seconded national experts. In 2012, 34 EEA
EFTA national experts were seconded to the various
directorates within the European Commission dealing
with EEA-relevant programmes and activities.

EFTA-EU Cooperation in
Statistics
The EFTA Statistical Office (ESO) was created in
the context of the EEA Agreement to liaise between
Eurostat and the EFTA National Statistical Institutes
(NSIs). It is located at the premises of Eurostat in
Luxembourg.
Priorities for 2012 in the field of statistics were:
• Development of the 2012 EEA Annual Statistical
Programme based on the European Statistical Work
Programme of the European Commission;

• Preparation for the incorporation of the European
Statistical Programme 2013-2017 into the EEA
Agreement;
• Amendment of Regulation (EC) No 223/2009, the
“Statistical law”; and
• EFTA’s participation in the streamlining of the
organisational structure of the European Statistical
System (ESS).

Integration of EFTA Statistics into
the European Statistical System
In addition to their core activities, ESO and the EFTA
NSIs ensured EFTA’s presence in the ESS by:
• Monitoring the inclusion of EFTA data in Eurostat’s
databases and publications;
• Ensuring EFTA’s and the EFTA NSIs’ active
involvement in EU technical cooperation
programmes in the field of statistics with European
and non-European third countries; and
• Contributing substantially to the European
Statistical Training Programme (ESTP).

Production and Dissemination of
EFTA Statistics
Protocol 30 to the EEA Agreement and the Swiss-EU
Agreement in the field of statistics provide for statistical
information from all EFTA States to be transmitted to
Eurostat for storage, processing and dissemination.
ESO continues to strive for the regular inclusion of
EFTA data in Eurostat databases and publications. The
tangible result of this joint initiative between ESO, the
EFTA NSIs and Eurostat is that the inclusion of EFTA
data in Eurostat databases and publications was at a
good level in 2012.
Special attention was given to the inclusion of
EFTA data in the indicator sets, which measure the
performance of European countries with regard to
key policy issues such as the Europe 2020 Strategy
or the Sustainable Development Strategy. The EFTA
countries’ coverage of these very visible and much
in demand indicators is high. EU policy targets do
not apply to the EFTA States and the two strategies
mentioned above are not part of the EEA Agreement or
the Swiss-EU Agreement. However, the EFTA States
agree with the general goals of the initiatives and

27

revision of the Tobacco Products Directive, challenges
facing Europe’s health workforce and health
inequalities overall. The Working Group also focused
on the proposal for a new Health for Growth Programme
(2014-2020) and a new Justice Programme, including
drugs prevention and information.

participate in several of the programmes and actions
that have come out of these strategies. There is strong
demand to provide users both within and outside
EFTA with comparable data on the performance of as
many European countries as possible regarding key
European issues.

EFTA Participation in Eurostat
Working Groups and Committees
Eurostat organised around 120 meetings in 2012 to
prepare and implement new legislation, exchange
and develop methodologies and follow up on data
collection. The EFTA States participated actively in the
relevant meetings on an equal footing with colleagues
from the EU Member States.


28

ESO took part in the “table ronde” of the Swiss
Days of Official Statistics, hosted in September by
Liechtenstein. ESO also contributed to the annual
DGINS Conference, which is attended by the
directors-general of all national statistical institutes in
Europe and the heads of the statistics divisions of UN
bodies, the Organisation for Economic Co-operation
and Development (OECD), the International Monetary
Fund (IMF), Worldbank and the European Central
Bank (ECB).

Technical Cooperation in the
Field of Statistics
EFTA works closely with Eurostat on technical
cooperation in the field of statistics. This is based
on a Memorandum of Understanding that has the
general objective of ensuring close collaboration
between the EFTA States and Eurostat in a number
of programmes. Cooperation may also take the form
of joint undertakings with international organisations
such as the United Nations Economic Commission for
Europe (UNECE) and the IMF.
EFTA’s involvement gives priority to countries that
have concluded joint declarations on cooperation
or free trade agreements with EFTA. Support is
granted mainly to countries covered by the European
Neighbourhood Policy (ENP East and South), to the
Western Balkans and to Turkey, but can also include
current and prospective free trade partners of EFTA in
other regions of the world.

Technical Cooperation Activities
and Projects
In 2012, the main activities and projects in this field
were:
• Continuation of the global assessments/peer
reviews of third countries’ national statistical
systems. EFTA support was granted through the
funding of experts from EFTA countries and ESO in
the assessments of Belarus, Moldova, the Palestine
Territories and Tajikistan;
• Launch event of the programme “Implementation
of the 2008 System of National Accounts” at
UNECE in Geneva and the Special Programme
for the Economies of Central Asia (SPECA)
Project Working Group on Statistics in Issyk Kul,
Kyrgyzstan, dedicated to this topic. EFTA assisted
with this event through logistical support as well
as the funding of experts from EFTA countries and
participants from targeted third countries;
• Organisation and financing of a training course on
price statistics for experts from the NSIs of ENP
East and selected countries from Eastern Europe,
the Caucasus and Central Asia (EECCA countries),
conducted jointly by Norway and Switzerland;
• Organisation and financing of a training course for
experts from the NSIs of the Western Balkans and
ENP South countries on survey methodology and
sampling techniques, conducted by Switzerland;
and
• Funding of experts’ participation in international
and regional events in the field of statistics.

EFTA Seconded National Experts at
Eurostat
At the end of 2012, four experts from Statistics Norway
and three experts from the Swiss Federal Statistical
Institute were seconded to Eurostat within the
framework of the EEA Agreement and the Swiss-EU
Agreement respectively. Two Norwegian experts were
seconded to Eurostat as a contribution in kind within
the framework of EFTA/EU technical cooperation
in order to ensure continuity of support and EFTA
visibility in the overall programming and management
of EFTA/EU activities.

An exchange of letters between the EFTA Secretariat
and Eurostat stipulates that the EFTA Secretariat must
finance at least two ESTP courses per year in return
for EFTA statisticians having the right to participate
in all courses.

In 2012, the EFTA Secretariat financed three of the 30
ESTP courses held: two organised by Statistics Norway
on the use of geographic information systems for
making statistics and the user-friendly dissemination
of statistics; and one by the Swiss Federal Statistical
Office on data analysis and data modelling.

29

European Statistical Training
Programme

EEA GRANTS AND NORWAY
GRANTS


30

Biodiversity and ecosystem services in Cyprus have been allocated EUR 1.2 million for the 2009-2014 Grants period.

Through the EEA Grants and Norway Grants, Iceland,
Liechtenstein and Norway contribute to reducing
disparities in the European Economic Area and to
strengthening bilateral relations with 15 EU countries
in Central and Southern Europe: Bulgaria, Cyprus,
the Czech Republic, Estonia, Greece, Hungary,
Latvia, Lithuania, Malta, Poland, Portugal, Romania,
Slovakia, Slovenia and Spain.
Around EUR 1.789 billion in funding has been agreed
for the period 2009-2014. The EEA Grants amount to
EUR 988.5 million, of which Norway provides around
94%, Iceland close to 5% and Liechtenstein just above
1%. The Norway Grants amount to EUR 800 million
and are funded by Norway alone. The Financial
Mechanism Office (FMO) of the EFTA Secretariat in

Brussels administers the grant schemes on behalf of
Iceland, Liechtenstein and Norway.

Reducing Disparities and
Strengthening Bilateral
Relations
Since funding from the EEA EFTA States to the
less wealthy countries of the EU started in 1994, the
Grants have contributed to areas such as reducing
greenhouse gas emissions, protecting biodiversity,
improving health services, promoting social inclusion,
strengthening civil society, strengthening the rule of
law and preserving cultural heritage. An end review
of projects implemented during the last funding period

The Grants have increasingly contributed to
developing mutual cooperation and strengthening
bilateral relations. Under the Grants 2004-2009,
more than one in five projects were implemented in
partnership with entities from Iceland, Liechtenstein
and Norway. Under the Grants 2009-2014, over half of
the expected 146 programmes are being planned and
implemented in cooperation with public entities from
the donor states.
Bilateral funds at national and programme level also
stimulate bilateral contacts, networking and project
cooperation. Networks and partnerships that build up
through the Grants are expected to create sustainable
cooperation in the political, institutional, cultural and
academic fields, as the programmes developed are in
areas of special interest to both the beneficiaries and
donors.

International Partnerships
Partnerships are also established with international
organisations to ensure that funding is allocated with
maximum efficiency and transparency. In the 20092014 period, the Council of Europe is contributing
with expertise on human rights, democracy and
rule of law. The global anti-corruption organisation
Transparency International is collaborating with the
EEA Grants and Norway Grants in identifying and
addressing corruption risks in the implementation of
the grant schemes.

Ex-post monitoring of 40 projects produced positive
findings, with most activities implemented as planned,
targets largely met and high value for money achieved.
A number of evaluations and reviews provided
important lessons and guidance for the next funding
period.

2012: New Funding Available
The EEA Grants and Norway Grants 2009-2014
are providing funding to larger programmes with
clearer objectives and more strategic partnerships,
thereby strengthening their results-oriented approach.
Emphasis is being laid on results, as well as on
risk management. Strategic partnerships are being
established to contribute to strengthening bilateral
cooperation and relations between the donor and
beneficiary countries.
At least 30% of the funds have been earmarked for
“green programmes”: environmental protection,
climate change and renewable energy, carbon capture
and storage, and green industry innovation. Funding
is also targeting vulnerable groups such as minorities,
including the Roma, and children and youth at risk.
Particular emphasis is being placed on gender issues.

2012: High Completion Rate
with Positive Results
The five-year funding schemes were first established
in 1994. For the 2004-2009 period, EUR 1.307 billion
was made available for projects, and funding was
allocated to 1 250 projects and funds, of which the last
were closed on 30 April 2012.
The Grants focused on areas of need and common
interest, in line with wider European interests and
goals. All available funding was committed in all
beneficiary countries and the implementation rate
was very high. About 97% of the projects had been
completed by the end of April 2012.

The EEA and Norway Grants give special attention to the
needs of vulnerable groups, such as children and youth at risk.
Photo © Christophe Vander Eecken

With the current economic crisis giving rise to
intolerance and hate speech in Europe, the Grants are
also contributing to combating racism and xenophobia.
This is not only achieved by promoting the values
of democracy, tolerance and rule of law, but also by
helping to reduce social and economic disparities.

31

concluded that they had contributed to reducing social
and economic disparities at local level.

By the end of 2012, around one third of the
programmes had been approved, several calls for
projects had been launched and the first projects had
started. Programmes and projects may in general be
implemented until 2016.
In the 2009-2014 period, the EEA Grants and Norway
Grants are financing programmes in the following
sectors:

EEA Grants
• Environmental protection and management;
• Climate change and renewable energy;

• Decent work and tripartite dialogue;
• Research and scholarship;
• Human and social development; and
• Justice and home affairs.
EEA And norwAy GrAnts 2009-2014
Spain 45.9
Slovenia 26.9

Bulgaria 126.6
Cyprus 7.9

Slovakia 80.8

Czech Republic
131.8

Romania
306.0

Estonia
48.6
Greece
63.4

• Civil society;
• Human and social development;
• Protecting cultural heritage; and

Total: €1788.5 million
Portugal
58.0

• Research and scholarship.

Norway Grants
• Carbon capture and storage;
• Green industry innovation;

Latvia 73.0

Poland
578.1


Lithuania 84.0
Malta 4.5

Allocation per country, 2009-2014.
Total countries_Updated version.indd 17

32

Hungary
153.3

19/03/13 12:20

ADVISORY BODIES
The Parliamentary Committee
The EFTA Parliamentary Committee continued its
active involvement in issues of relevance to EFTA
cooperation in free trade relations with countries
outside the European Union and matters pertaining to
the EEA Agreement. The Chair of the Committee on
third-country issues was Kathy Riklin (Switzerland),
while Harry Quaderer (Liechtenstein) chaired the
Committee on EEA matters.

Third-Country Relations
In February 2012, representatives of the Parliamentary
Committee visited Indonesia to support the ongoing
free trade negotiations by strengthening ties with
stakeholders in the country and exchanging views on
the merits of free trade. Together with an observer
from the Consultative Committee, they met with the

Vice Speaker and relevant committees of the House
of Representatives, government officials and business
representatives.
The Parliamentary Committee met with EFTA
Ministers in Gstaad in June and in Geneva in
November, receiving updates on third-country relations
and raising points of interest. Among other issues, the
Committee discussed the FTA negotiations with the
Customs Union of the Russian Federation, Belarus
and Kazakhstan, the management of the FTA with
Palestine, and the linkages between EFTA and EU free
trade negotiations. The Committee continued its active
engagement with respect to sustainable development
provisions in FTAs, particularly in relation to
negotiations in South-East Asia. Furthermore, a
delegation participated in the Annual Conference on
the WTO organised jointly by the Inter-Parliamentary
Union and the European Parliament.


33

The EFTA Parliamentary Committee at a meeting in Geneva in November.

EEA and European Affairs
The EEA Joint Parliamentary Committee met twice in
2012, in Akureyri, Iceland, in May and in Brussels in
November. The Committee took a highly active role in
the reflections on the EEA Agreement, and adopted a
report and resolution on the EEA review process at its
meeting in May. As in previous meetings, the members
engaged in a fruitful dialogue with the EEA Council,
the EEA Joint Committee and the EFTA Surveillance
Authority (ESA) on the functioning of the EEA. The
Committee adopted a resolution on the EEA Joint
Committee’s Annual Report on the Functioning of the
EEA, and sought to increase its influence on future
reports by asking the Joint Committee to provide it
with the draft rather than adopted texts. In 2012, the
Committee also adopted resolutions on:
• The White Paper on Transport;
• The reform of the common fishery policy;
• EU energy policy and its implications for the EEA;
• EEA EFTA participation in EU agencies; and


34

• EU programmes 2014-2020 and the participation of
the EEA EFTA States.
The EFTA parliamentarians continued their active
dialogue with the EFTA Ministers on EEA affairs,

and met with the Standing Committee at Ministerial
level for the fourth time in Brussels in November,
on the margins of the EEA Council meeting. These
joint meetings include the EFTA Consultative
Committee and constitute an increasingly important
dialogue between Ministers and advisory bodies on
developments in the EEA.

EFTA Consultative Committee
In 2012, the EFTA Consultative Committee* continued
its work on international trade developments, focusing
especially on EFTA’s third-country relations. As regards
European affairs, the Committee focused on the various
reviews of the EEA Agreement; developments in the
Internal Market with specific emphasis on the free
movement of persons, professional qualifications,
labour law issues and the Single Market Act II;
Schengen cooperation; and responses to the economic
and financial crisis. The Chair of the Committee in 2012
was Halldór Grönvold (Iceland).
The Committee met with the Standing Committee of the
EFTA States in March, the EFTA Ministers and EFTA
Parliamentary Committee in June, and the Ministerial
Chair of the Council in November. Concerning the
EEA, the Committee invited the Vice President of

Under the Presidency of Mr Pat the Cope Gallagher (MEP, ALDE, Ireland) and acting Vice President Mr Skúli Helgason (MP, Social Democratic Alliance,
Iceland), the 39th meeting of the EEA Joint Parliamentary Committee took place in November.
* Representatives of the the social partners’ organisations in the EFTA countries.

Joint Work with the EU
At its meeting in May in Akureyri, Iceland, the EEA
Consultative Committee adopted two resolutions on:
• The EEA review; and
• The enterprise dimension of the Single Market.

ESA to give a briefing in June on ESA’s most recent
activities, and met with the EFTA Standing Committee
at Ministerial level in November in Brussels. The
Consultative Committee members firmly believe in
the importance of holding such joint meetings, which
contribute to enhancing dialogue with the relevant
EFTA authorities at political, parliamentary and
diplomatic level in the four EFTA countries.
In March, the Committee discussed the Norwegian
EEA Review, and a member of the Review Committee
presented its key findings with a particular focus on
the chapters on the economy, business policy and the
labour market. The EEA reviews were one of the main
topics of the EFTA social partners’ annual meeting
with the EFTA Ambassadors. The Committee also
discussed Schengen cooperation with representatives
of the four EFTA States.
Cooperation continued with the EFTA authorities at
working group level, and in March the Consultative
Committee and the EFTA Working Group on Free
Movement of Persons, Working Life and Social
Inclusion met to discuss current labour law issues,
including working time and the Temporary Agency
Work Directive. The Committee also exchanged views
with EU experts on corporate social responsibility
and labour market trends in the context of the current
economic crisis.

Cooperation between social partners in the EEA
was further reinforced in 2012 through the so-called
“osmosis” procedure, which allows representatives
of the EFTA side to participate in the work of the
European Economic and Social Committee and
vice versa. Cooperation in 2012 included EFTA
participation in various activities, such as meetings
with Croatia, Iceland, Macedonia, Montenegro and
Turkey; the Steering Committee on Europe 2020; and
the Single Market Observatory.

The EEA EFTA Forum
The EEA EFTA Forum of elected representatives of
local and regional authorities was established by the
EFTA Standing Committee in 2009 as an informal
body to involve elected representatives from local
authorities and regions in EEA matters. It currently has
12 members – six from Iceland and six from Norway.
Halldór Halldórsson (Iceland) chaired the Forum in the
first half of 2012, while the Chair in the second half of
the year was Hilde Onarheim (Norway).
The Forum held two meetings in 2012, in June in
Ísafjörður, Iceland, and in November in Brussels. The
Forum adopted opinions on:
• The review of the EEA Agreement;
• European rules
assessment;

on

environmental

impact

• Labour migration within the EEA and impact on the
local and regional level;

35

The Chairs of the EFTA Parliamentary and Consultative Committees
at a joint meeting with EEA EFTA Ministers in Brussels. Mr Halldór
Grönvold, Consultative Committee, and Mr Harry Quaderer,
Parliamentary Committee.

The Committee also focused on recent developments
in the EEA and Iceland’s EU accession negotiations,
and organised a panel discussion on wealth inequalities
and social justice in light of the present economic
crisis, receiving presentations on the Nordic model
and Icelandic experience. The EEA Consultative
Committee and the EEA Joint Parliamentary
Committee marked the 20th anniversary of the signing
of the EEA Agreement by organising a joint event in
Akureyri.

• EU programmes 2014-2020 and the participation of
the EEA EFTA States; and
• The Commission proposal for a general data
protection regulation.

The Forum continued its dialogue on relevant issues
with the Committee of Regions of the European
Union, and discussed topics of common interest with
the EFTA Parliamentary Committee in a joint meeting
in November.


36

The EEA EFTA Forum of Local and Regional Authorities at its sixth meeting, which took place in Brussels in November.

INFORMATION ACTIVITIES
EFTA informs its stakeholders and the general public
about its activities through a website, seminars and
various publications. Members of the public can
access or order EFTA documents through a link
on the site. Presentations are also given to visitors
to the Secretariat offices in Geneva, Brussels and
Luxembourg. In Brussels alone, approximately
80 groups (nearly 1 500 people) visited EFTA in
2012.

Website
The website contains news and general information
on EFTA’s work, as well as legal texts related to
EFTA’s FTAs and the EEA Agreement. The site has
approximately 800 visitors per day.

free of charge, subject to availability. The following
were released in 2012:
• This is EFTA 2012: An annual publication providing
an overview of EFTA and its activities, together
with useful trade and economic statistics; and
• The EFTA Bulletin: The European Economic Area
and the Single Market 20 Years on.
In addition, the fact sheet “EFTA at a Glance” provides
a brief introduction to the organisation and its activities.

The EEA Supplement
The EEA Supplement to the Official Journal of
the European Union is a translation into Icelandic
and Norwegian of EEA-relevant texts. The EEA
Supplement contains material from:

Seminars

• The EEA Joint Committee;

EFTA held numerous seminars and workshops in
2012, including:

• The EFTA Surveillance Authority;

• In March, the Brussels Secretariat hosted a seminar
on the role of certification linked to standardisation.

Publications
The latest editions of all of EFTA’s brochures are
available on the website. Paper copies can be ordered

37

• The EFTA Court; and
• The European Commission.
The EEA Supplement is published on the EFTA
website once a week. Since 2008, the Icelandic and
Norwegian versions of the EEA Supplement have not
been synchronised with regard to content.
In 2012, the EFTA Secretariat published 71 issues
of the EEA Supplement. The publication of acts
incorporated into the EEA Agreement increased in
2012 compared to the previous year for the Icelandic
version, whilst the Norwegian version saw a decrease
in the number of acts published in 2012.

Publication in the EEA Supplement 2012

Fig. 4
Number of Pages

EEA Joint Committee Decisions
EU Acts
EFTA Standing Committee
EFTA Surveillance Authority
EFTA Court
EU Institutions
Other
Total

Icelandic
413
6 904
15
502
38
1 450
2
9 322

Norwegian
413
1 488
15
502
38
1 450
2
3 906


• In January and September, EFTA held its biannual
seminar on the EEA Agreement. At the January
seminar, the Chair and Secretary of the Norwegian
EEA Review Committee presented their report
“Inside and Outside” to more than 120 participants;
and

• The Standing Committee of the EFTA States;

ADMINISTRATION
At the end of 2012 there were 22 fixed-term and
short-term staff based in Geneva, and 60 in Brussels
and Luxembourg. The Financial Mechanism Office in
Brussels employed 62 staff. All figures are on a fulltime equivalent basis and include trainees.
The Secretariat’s budget is prepared according to the
framework budgeting principle used by the Member
States’ public administrations. This approach aims to
increase awareness of budgetary spending at all levels.
The budget is accompanied by a performance plan in
which the activities of the Secretariat are divided into
projects. The plan and subsequent reports keep the
Member States informed of the costs and outcomes of
the Secretariat’s various activities.
EFTA’s budget is prepared in two currencies: Swiss
francs (CHF) and euros (EUR). The total budget for
2012 was equivalent to CHF 22 066 000.

The EFTA Board of Auditors
The EFTA Board of Auditors (EBOA), established
in May 1992, is the auditing authority of EFTA. It is
a permanent committee which, in cooperation with
external auditors, performs an annual audit of the three
EFTA institutions: The EFTA Secretariat, ESA and the
EFTA Court. For matters related to the Secretariat,
EBOA meets “at four” (one representative from each
EFTA State) and reports directly to the EFTA Council.
For matters related to the EEA Agreement (ESA and
the EFTA Court), EBOA meets “at three” (Iceland,
Liechtenstein and Norway) and reports to the ESA/
Court Committee. EBOA also works in cooperation
with the European Court of Auditors. EBOA met three
times in 2012.
EBOA’s annual audit report is made available on the
EFTA Secretariat’s website once the relevant Council
procedures for the year in question have been finalised.


38

2012 EFTA Budget

Fig. 5

Budget Posts
EFTA Council and horizontal activities
Administration and management
Trade relations with countries outside the EU
EU/EFTA and EFTA cooperation programmes
EEA-related activities
EFTA-EU statistical cooperation

2012 Budget (in CHF)
1 964 000
4 057 000
4 696 000
2 958 000
7 712 000
679 000
22 066 000

Contributions from the EFTA States to the 2012 EFTA Budget
Member State
Iceland
Liechtenstein
Norway
Switzerland
Total

Fig. 6

Contributions (in CHF)

Share (as %)

844 000
195 000
12 501 000
8 526 000
22 066 000

3.83
0.88
56.65
38.64
100.00

APPENDICES
EFTA Parliamentary Committee Members1
Iceland
Mr Árni Þór Sigurðsson

Left-Green Movement

Mr Skúli Helgason

Social-Democratic Alliance

Ms Þorgerður K. Gunnarsdóttir

Independence Party

Mr Sigmundur D. Gunnlaugsson

Progressive Party

Mr Sigmundur Ernir Rúnarsson

Social Democratic Alliance

Liechtenstein
Mr Harry Quaderer (Chair)2

Independent

Mr Albert Frick

Progressive Citizens’ Party

Norway
Labour Party

Mr Harald T. Nesvik

Progress Party

Ms Rannveig Kviste Andresen

Socialist Left Party

Ms Laila Gustavsen

Labour Party

Ms Laila Marie Reiersten

Progress Party

Mr Jan Tore Sanner

Conservative Party

Switzerland
Ms Kathy Riklin (Chair)3

Christian Democratic Party

Mr Didier Berberat

Social Democratic Party

Mr Ignazio Cassis

Radical-Liberal Party

Mr Konrad Graber

Christian Democratic Party

Mr Hans Kaufmann

Swiss People’s Party

1
2
3

Committee members as at October 2012.
Chair of members from the three EEA EFTA countries.
Chair of members from the four EFTA countries.

39

Mr Svein Roald Hansen

EFTA Consultative Committee Members
Iceland
Mr Halldór Grönvold (Chair)

Icelandic Confederation of Labour

Mr Róbert Trausti Árnason

Confederation of Icelandic Employers

Mr Haraldur Ingi Birgisson

Icelandic Chamber of Commerce

Ms Helga Jónsdóttir

Federation of State and Municipal Employees

Mr Bjarni Már Gylfason

Federation of Icelandic Industries

Liechtenstein
Mr Josef Beck

Liechtenstein Chamber of Commerce and Industry

Mr Sigi Langenbahn (Second Vice Chair)

Liechtenstein Employees Association

Mr Thomas Angell (First Vice Chair)

Federation of Norwegian Commercial and Service Enterprises

Ms Liz Helgesen

Norwegian Confederation of Unions for Professionals

Mr Vidar Bjørnstad

Norwegian Confederation of Trade Unions

Ms Bente Stenberg-Nilsen

Norwegian Association of Local and Regional Authorities

Mr Espen Søilen

Confederation of Norwegian Enterprise

40

Mr Christopher Navelsaker

Norwegian Confederation of Vocational Unions


Norway

Switzerland
Mr Jan Atteslander

economiesuisse

Ms Ruth Derrer Balladore (Bureau member)

Confederation of Swiss Employers

Ms Marco Taddei

Swiss Association of Small and Medium-Sized Enterprises

Mr Pierre Weiss

Fédération des Entreprises Romandes Genève

Members of the EEA EFTA Forum of Elected Representatives of Local and
Regional Authorities
Iceland
Mr Sveinn Kristinsson

Regional Municipal Organisation of Western Iceland

Ms Albertína Elíasdóttir

Regional Municipal Organisation of the Westfjords

Mr Halldór Halldórsson (Vice Chair)

Icelandic Association of Local Authorities

Mr Bjarni Jónsson

Regional Municipal Organisation of North West Iceland

Mr Óttarr Ólafur Proppé

Reykjavík City

Ms Ásgerður Halldórsdóttir

Regional Municipal Organisation of the Capital Area

Norway
Hedmark County Council

Mr Nils A Røhne

Municipality of Stange

Ms Hanne Braathen

Storfjord Municipal Council

Ms Hilde Onarheim (Chair)

Bergen City Government

Ms Eva Kristin Andersen

Fredrikstad City Council

Ms Torhild Bransdal

Municipality of Vennesla
41

Mr Christian Haugen

EFTA Ministerial Communiqués and EEA Council Conclusions
EFTA Ministerial Meeting, Gstaad, 28 June 2012
Communiqué
On 28 June 2012, the European Free Trade Association
(EFTA) held its summer Ministerial meeting in Gstaad,
Switzerland under the Chairmanship of Mr Johann N.
Schneider-Ammann, Federal Councillor and Head
of the Federal Department of Economic Affairs
of Switzerland. Ministers of the four EFTA States
(Iceland, Liechtenstein, Norway and Switzerland)
signed a joint declaration on cooperation with Georgia,
represented by Ms Vera Kobalia, Minister of Economy
and Sustainable Development.
The international economic and trade environment


42

The EFTA Ministers discussed the state of the global
economy and the prospects for international trade,
noting the important challenges currently faced
by policy makers and economic operators. They
underscored the importance of policies in support of
economic and financial stability as well as to foster
growth and job creation. EFTA Ministers recalled the
essential role of open markets in achieving sustainable
growth and reiterated their commitment to a strong,
rules-based trading system under the framework of the
World Trade Organisation (WTO).
Preferential trade relations
The EFTA Ministers noted that EFTA’s network
of free trade agreements with partners outside the
European Union currently comprises 24 agreements
with 33 countries worldwide. Five joint declarations
on cooperation further complement this network.
In this context, Ministers welcomed the entry into
force on 1 June 2012 of the free trade agreement
with Ukraine and the signing of a joint declaration on
cooperation with Georgia. Ministers also emphasised
the need to further develop EFTA’s existing FTAs, e.g.
the agreements with Canada and the Republic of
Korea.
Ministers discussed EFTA’s ongoing negotiating
processes. They called for a swift conclusion of
negotiations with Bosnia and Herzegovina. They
noted with satisfaction the progress achieved to date

in the negotiations with the Members of the Customs
Union of Russia, Belarus and Kazakhstan.
Recalling the priority accorded to enhancing trade
relations with partners in Asia, Ministers acknowledged
the progress achieved in the negotiating process with
India and expressed their wish to move towards a
conclusion. They welcomed the good momentum
achieved in the negotiations with Indonesia and
reiterated their interest in resuming negotiations with
Thailand. Ministers expressed their satisfaction about
the start of a negotiating process with Vietnam. In the
context of the official launch of these negotiations
foreseen in July 2012, the EFTA States will recognize
Vietnam’s market economy status.
Ministers expressed their satisfaction with the second
round of negotiations with the Central American States
of Costa Rica, Honduras and Panama in June 2012
and expressed the wish to move forward speedily with
this process.
Ministers also discussed current and future initiatives
to expand EFTA’s free trade network. In this context,
they welcomed the ongoing exploratory work with
Malaysia and expressed their wish to begin free
trade negotiations at the earliest suitable opportunity.
Ministers confirmed their interest in exploring deeper
trade relations with the Philippines. They decided to
consider the development of closer trade relations
with Pakistan and to propose the signing of a joint
declaration on cooperation to this effect.
Ministers agreed to continue exploring possible options
for increasing trade, investment and cooperation with
the MERCOSUR States (Argentina, Brazil, Paraguay
and Uruguay). They also agreed to further examine the
possibilities of developing closer trade relations with
potential partners in the Sub-Saharan African region.
Relations with the European Union
The EEA EFTA Ministers welcomed the 20th
anniversary of the signing of the EEA Agreement, and
highlighted that the Agreement continues to function
well in accordance with the original objectives. They

52th Annual Report of The European Free Trade Association 2012

52th Annual Report of The European Free Trade Association 2012

Recommended

Recommended

More Related Content

What's hot

What's hot (13)

Similar to 52th Annual Report of The European Free Trade Association 2012

Similar to 52th Annual Report of The European Free Trade Association 2012 (20)

More from Miqui Mel

More from Miqui Mel (20)

Recently uploaded

Recently uploaded (20)

52th Annual Report of The European Free Trade Association 2012