51th Annual Report of The European Free Trade Association 2011

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ST

51 ANNUAL REPORT
OF THE EUROPEAN FREE
TRADE ASSOCIATION

2011

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Annual Report of the European Free Trade Association 2011

• Editor: Tore Grønningsæter
• Copy Editor: Juliet Reynolds
• Layout by Orangemetalic
• Published March 2012
Cover picture: The border between Liechtenstein and Switzerland (iStockphoto/Shiran De Silva)

Editor’s note:
For basic information on EFTA, please see the publication “This is EFTA”. Further information is also
available on our website: www.efta.int/.

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FOREWORD
EFTA made good progress in
2011 in its two main areas of
activity: The management of
the European Economic Area
Agreement and the further
expansion of EFTA’s global
network of free trade relations.
The
year
marked
the
20th anniversary of the EFTA
Statistical
Office
in
Luxembourg, which acts as a
liaison between the statistical
office of the European Union,
Eurostat, and the EFTA national statistical institutes.
The EEA Agreement, which entered into force in 1994,
provides a solid framework for Iceland, Liechtenstein
and Norway’s integration into the Single Market of the
European Union. With a population of over 500
million, the EEA constitutes the world’s biggest
common market.
In 2011, 373 legal acts were incorporated into the EEA
Agreement, thereby ensuring that the entire EEA is still
governed by homogeneous rules, which is a
prerequisite for the effective functioning of the EEA.
Important additions include the Renewable Energy
Directive, the new Social Security Regulation and the
inclusion of aviation activities in the EU Emissions
Trading Scheme. The EEA EFTA States are actively
involved in a number of programmes and agencies
which play an increasingly important role in the EU. In
2011, the Media Mundus Programme was included in
the EEA Agreement, supporting international
cooperation in the audiovisual industry.
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 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.
In 2011, Hong Kong China and Montenegro joined the
expanding network of EFTA’s free trade partners,
which now comprises 24 agreements with 33 countries
outside the EU. Thus, the EFTA States have
preferential free trade relations with 60 countries in
Europe and the rest of the world, as well as with each
other. This means that 80% of EFTA’s merchandise
trade is now covered by preferential trading
arrangements. In addition, 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.
EFTA was also engaged in a number of important
free trade negotiations in 2011, including with
Bosnia and Herzegovina, India, Indonesia and the
members of the Customs Union of Russia, Belarus
and Kazakhstan. Preparations took place for
negotiations with Central American countries and
Vietnam, while exploratory processes were pursued
with MERCOSUR and Malaysia.
The EFTA bilateral agreements are fully compatible
with the multilateral trading system. They are
complementary and not an alternative to this system.
The EFTA States, therefore, continue to demonstrate
their full commitment to a robust multilateral
framework and remain strong supporters of the World
Trade Organization.
For more than 50 years the EFTA Secretariat has
constantly adapted its processes and working
methods to serve the needs of its Member States in
the best way possible. The two Deputy SecretariesGeneral and I have also endeavoured in the last year
to improve our efficiency in delivering the range of
services and expertise that our members expect, and
that work will continue.
Kåre Bryn
Secretary-General

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TABLE OF CONTENTS
FOREWORD
EFTA COUNCIL

5
6
6

EEA GRANTS AND
NORWAY GRANTS

28

6

ADVISORY BODIES

30

FREE TRADE RELATIONS

ANNUAL REPORT OF THE EUROPEAN FREE TRADE ASSOCIATION 2011

5

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

4

3

7

The Parliamentary Committees 30
The Consultative Committees 31
The EEA EFTA Forum
32

Main Developments
8
Management of EFTA’s Free
Trade Agreements and Joint
Declarations on Cooperation 10
Technical Cooperation
10
Relations with the WTO
10

EFTA/EU Cooperation in
Statistics
25
Technical Cooperation in the
Field of Statistics
26

33

ADMINISTRATION

35

APPENDICES
THE EEA AGREEMENT

INFORMATION ACTIVITIES

36

13
FIGURES

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

13
13
16
16
16
20
22
22

Fig. 1: Joint Declarations on Cooperation
and Free Trade Agreements between
EFTA and Non-EU Partners
7
Fig. 2: Joint Committee Meetings in 2011

10

Fig. 3: Meetings Held and EU Acts
Incorporated in 2011

14

Fig. 4: Publication in the EEA Supplement
2011

34

Fig. 5: 2011 EFTA Budget

35

Fig. 6: Contributions from the EFTA States
to the 2011 EFTA Budget

35

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EFTA COUNCIL
EFTA Ministerial Meetings

Preferential Trade Relations

The EFTA Council met twice at Ministerial level in
2011, on 21 June in Schaan, Liechtenstein and on 14
November in Geneva. The Council was chaired by
Liechtenstein in the first half of 2011 and by Norway
in the second.

Ministers reviewed developments in EFTA’s preferential
trade activities with partners worldwide, including
relations with Bosnia and Herzegovina; the Customs
Union of Russia, Belarus and Kazakhstan; India;
Indonesia; Malaysia; MERCOSUR (Argentina, Brazil,
Paraguay and Uruguay); Vietnam; and countries in
Central America. They also signed free trade agreements
with Hong Kong China and Montenegro, and decided to
explore the possibility of developing closer trade
relations with Sub-Saharan Africa.

The International Economic
Situation

Ministers also endorsed the outcome of discussions at a
technical level on the further liberalisation of trade in
agricultural products between the EFTA Member States.

Relations with the European Union
At their June meeting in Schaan, the EEA EFTA
Ministers discussed the general functioning of the EEA
Agreement with a focus on the difficult economic

5

During their meetings, the EFTA Ministers discussed
the international economic and trade environment.
They underlined the importance of continuing to
refrain from protectionist measures and of promoting
policies that enhance growth and financial and
economic stability at European and international level.
They reiterated their strong commitment to the
multilateral trading system but expressed their deep
concern over the lack of progress in the World Trade
Organization’s Doha negotiations.

The EFTA Ministerial meeting in June 2011: Kåre Bryn, EFTA Secretary-General; Aurelia Frick, Minister of Foreign Affairs, Liechtenstein; Össur Skarphéðinsson, Minister of
Foreign Affairs and External Trade, Iceland; Rikke Lind, State Secretary, Ministry of Trade and Industry, Norway; and Johann N. Schneider-Ammann, Federal Councillor,
Head of the Federal Department of Economic Affairs, Switzerland.

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situation. They underlined the need for coordinated
and comprehensive action at European level. They also
expressed their satisfaction that the EEA EFTA States
would soon participate in the new system of EU
financial supervisory architecture, which began
operating on 1 January 2011.
Ministers welcomed the conclusion of the majority of
projects, programmes and funds under the EEA and
Norwegian Financial Mechanisms 2004-2009, and the
agreements on the two mechanisms for 2009-2014.

“Ensuring Financial Sector Stability”, the meeting was
chaired by Jan Vincent-Rostowski, Minister of
Finance, representing the Polish Presidency of the EU
Council. EFTA was represented by Eveline WidmerSchlumpf, Federal Councillor, Head of the Federal
Department of Finance, Switzerland, as EFTA Chair;
Klaus Tschütscher, Prime Minister and Minister of
Finance of Liechtenstein; Steingrímur Sigfússon,
Minister of Finance of Iceland; and Sigbjørn Johnsen,
Minister of Finance of Norway.

The communiqués from the 2011 Ministerial meetings
can be found in the appendices to this report.

The EFTA Council
The Council met eight times in 2011 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.

6

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 2011, the Council amended Annex
A on Rules of Origin, Annex C on Agriculture,
Appendix I to Annex P on Land Transport and the
Appendix to Annex Q on Air Transport. The
Committee on Mutual Recognition in relation to
Conformity Assessment also adopted amendments to
Annex I on Mutual Recognition. Throughout the year,
negotiations were held between agricultural experts
from the EFTA States regarding the further
liberalisation of intra-EFTA trade in agricultural
products. At the Ministerial meeting in Geneva on
14 November, EFTA Ministers endorsed the
understanding reached by the experts, and the Council
is expected to adopt amending measures in early 2012.

Annual Meeting of EFTA and
EU Finance Ministers
The annual meeting of EFTA and EU Finance
Ministers took place on 8 November. With the topic of

EFTA Ministers of Finance in Brussels in November 2011: Klaus Tschütscher,
Liechtenstein; Eveline Widmer-Schlumpf, Switzerland; Steingrímur Sigfússon,
Iceland; and Sigbjørn Johnsen, Norway.

The Lugano Convention
Iceland, Norway and Switzerland were parties to the
1988 Lugano Convention on jurisdiction and
enforcement of judgments in civil and commercial
matters. Following the enlargement of the European
Union, a revised Convention was adopted in 2007. The
2007 Lugano Convention entered into force in the EU,
Denmark and Norway on 1 January 2010, in
Switzerland on 1 January 2011 and in Iceland on
1 May 2011. EFTA participates as an observer in the
work of the Convention’s Standing Committee.

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FREE TRADE RELATIONS
EFTA pursued an ambitious agenda in 2011, aimed at
expanding and deepening its preferential trade
relations worldwide. With the signing of two new free
trade agreements (FTAs) with Hong Kong China and
Montenegro, the number of EFTA’s FTAs rose to 24,
covering 33 countries.
By the end of the year, EFTA’s formal engagement
with countries outside the European Union had

extended to 51 partners at the following levels of
cooperation:

Free Trade Agreements
EFTA had operational FTAs with 24 partner countries
in 2011: Albania, Canada, Chile, Colombia, Croatia,
Egypt, Israel, Jordan, Korea, Lebanon, Macedonia,
Mexico, Morocco, Palestinian Authority, Peru, Serbia,

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

Signature

Entry into force

10 December 1992
12 December 2002

17 December 2009

1 November 2010

26 January 2008
26 June 2003
25 November 2008
21 June 2001
27 January 2007
22 June 2009
21 June 2011
17 September 1992
21 June 2001
15 December 2005
24 June 2004
19 June 2000

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

27 November 2000

1 July 2001

14 November 2011
19 June 1997
30 November 1998

1 December 1999
1 July 1999

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

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
16 December 1996
20 July 2010
24 April 2006
12 December 2000
8 December 1995
19 June 2000

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

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

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

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

7

Partner

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Singapore, the Southern African Customs Union
(SACU; comprising Botswana, Lesotho, Namibia,
South Africa and Swaziland), Tunisia and Turkey.

Signed Free Trade Agreements
Free trade agreements with Hong Kong China and
Montenegro were signed in June and November 2011
respectively. Together with the FTAs signed with the
six Member States of the Gulf Cooperation Council
(GCC; comprising Bahrain, Kuwait, Oman, Qatar,
Saudi Arabia and the United Arab Emirates) in 2009,
and with Ukraine in 2010, they are in the process of
being ratified by the parties.


8

Signing of EFTA’s free trade agreement with Montenegro in November 2011:
Ljubiša Perović, Ambassador, Permanent Mission of Montenegro, Geneva; and
Vladimir Kavarić, Minister of Economy, Montenegro.

Main Developments
New Agreements with Hong Kong
China and Montenegro
Launched in January 2010, negotiations on a
comprehensive free trade agreement with Hong Kong
China were concluded in March 2011 after five rounds,
and the FTA was signed in Schaan, Liechtenstein on 22
June. Merchandise trade between the two sides reached
USD 8.3 billion in 2010, with exports from the EFTA
States to Hong Kong China valued at USD 6.5 billion.
Bilateral trade in services and investments were also
significant. For the first time in an EFTA FTA, a chapter
on trade and environment was incorporated and an
agreement on labour was concluded in parallel. The FTA
with Hong Kong China is EFTA’s third agreement with a
partner in East Asia, following those already concluded
with Singapore and Korea.
From the launch of negotiations in March 2011 on a
free trade agreement with Montenegro, progress was
swift and an FTA was signed in Geneva on 14
November. The emphasis of the FTA is on trade in
goods and the protection of intellectual property rights,
and it also contains a chapter on trade and sustainable
development. Trade between EFTA and Montenegro is
still at a relatively low level but has increased strongly
since the country’s independence in 2006. With this
agreement, EFTA has further consolidated its
preferential trading network in South East Europe,

Free Trade Negotiations
In 2011, EFTA was engaged in or about to commence
negotiation processes with ten partners (Bosnia and
Herzegovina; the Central American States of Costa Rica,
Guatemala, Honduras and Panama; India; Indonesia; and
Russia, Belarus and Kazakhstan). Negotiations with
Algeria and Thailand remained on hold.

Joint Feasibility Studies
Work on a joint feasibility study with Vietnam was
concluded in February 2011.

Joint Declarations on Cooperation
Joint declarations on cooperation (JDCs) are operational
with Malaysia, Mauritius, Mongolia and MERCOSUR
(Argentina, Brazil, Paraguay and Uruguay).

Celebrations following the signing of EFTA’s free trade agreement with Hong
Kong China in June 2011: Gregory So Kam-leung, Acting Secretary for Commerce
and Economic Development of Hong Kong China; and Aurelia Frick, EFTA Chair
and Minister of Foreign Affairs, Liechtenstein.

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Representatives of EFTA and Central American States announcing the start of free trade negotiations in November 2011: Kåre Bryn, EFTA Secretary-General; Johann N.
Schneider-Ammann, Federal Councillor, Head of the Federal Department of Economic Affairs, Switzerland; Ronald Saborio Soto, Ambassador, Permanent Mission of Costa Rica,
Geneva; Trond Giske, Minister of Trade and Industry, Norway; Aurelia Frick, Minister of Foreign Affairs, Liechtenstein; Diana Salazar, Vice Minister, Chief Trade Negotiator,
Panama; Dacio Castillo, Ambassador, Permanent Mission of Honduras, Geneva; and Einar Gunnarsson, Permanent Secretary of State of the Ministry for Foreign Affairs and
External Trade, Iceland.

Emerging Markets
In 2011, EFTA reinforced its focus on closer trade
relations with major emerging market partners.
Negotiations on a broad-based agreement with India,
commenced in 2008, gained new momentum with four
rounds of talks and additional meetings conducted
throughout the course of 2011. Significant progress
was achieved and the likelihood increased that
negotiations would be concluded in 2012.
In January 2011, EFTA entered into formal
negotiations with the Russian Federation, along with
its customs union partners Belarus and Kazakhstan,
followed by another two rounds of talks. Sound
foundations were laid for this ongoing process, which
will also benefit from Russia’s accession to the World
Trade Organization, as adopted at the eighth WTO
Ministerial Conference in December 2011.
Negotiations towards a “Comprehensive Economic
Partnership Agreement” with Indonesia started in

February and three full rounds were held during the
course of the year. Particular attention was given to
explaining each side’s approach to the various fields,
including technical cooperation.
A renewed dialogue with MERCOSUR (Argentina,
Brazil, Paraguay and Uruguay) was established in
September in the framework of the joint declaration on
cooperation between the two sides. EFTA and
MERCOSUR agreed to pursue a joint assessment of
the available options for increasing trade, investment
and cooperation in 2012.

Further Processes
In Europe, negotiations on a free trade agreement with
Bosnia and Herzegovina commenced in March. After
three rounds of talks, several parts of the FTA were
completed. Negotiations on the remaining issues are
expected to be finalised in the first half of 2012.
In Asia, EFTA concluded a joint feasibility study at
technical level with Vietnam in February, examining
the prospects for a preferential trade agreement.
Based on positive recommendations made by the
joint study group, a dialogue continued towards

9

adding to its existing FTAs with Albania, Croatia,
Macedonia and Serbia.

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launching negotiations between the two sides in
2012. With Malaysia, a first joint committee meeting
under the declaration on cooperation of 2010 was
held in June 2011. Exploratory work is being
pursued with the perspective of possible free trade
negotiations with this partner in the near future.
EFTA’s willingness to resume negotiations with
Thailand when conditions permit was reiterated by
Ministers at their 2011 meetings.
In Latin America, FTAs with Colombia and Peru
entered into force on 1 July (for Liechtenstein and
Switzerland), bringing the number of operational
EFTA agreements in the region to four (together with
those already concluded with Chile and Mexico).
Based on a JDC concluded with Panama in 2010,
exploratory talks took place with five Central
American countries. EFTA Ministers announced the
start of negotiations at their meeting on 14 November,
and in December modalities for the negotiating process
were agreed with Costa Rica, Guatemala, Honduras
and Panama. A first round of negotiations is anticipated
for the first quarter of 2012.


10

In Northern Africa, negotiations with Algeria remained
suspended during the reporting year, but EFTA
Ministers confirmed their readiness to resume this
process. EFTA Ministers also agreed to further
examine the possibility of developing closer trade
relations with countries in Sub-Saharan Africa (in
addition to the existing FTA with the Southern African
Customs Union).

Management of EFTA’s Free
Trade Agreements and Joint
Declarations on Cooperation
In 2011, the EFTA States held joint committee
meetings with four free trade partners (Chile, Israel,
Jordan and SACU). On these occasions, EFTA and

its partner countries reviewed the functioning of
their respective FTAs. They also assessed the need
for adjustments and extensions of existing
commitments in light of recent developments,
notably new preferential arrangements with third
countries.
As a result, several decisions were made to update
existing FTAs and work plans were agreed in view of
making further revisions, such as with Israel on
agriculture. Experts also worked on possible future
amendments to existing FTAs with other partners,
notably Canada, Korea and Turkey.

Technical Cooperation
Within the framework of EFTA’s technical cooperation
policy (see box on page 12), activities in 2011 included
the following:
• Export promotion seminars in two locations in
Albania;
• An export promotion seminar in Jordan;
• A workshop in Vietnam on possible preferential
trade relations; and
• Support to the Palestinian Authority for
participation in two international trade fairs.

Relations with the WTO
Under the World Trade Organization’s transparency
mechanism for bilateral and regional trade
agreements, EFTA notified all new free trade
negotiations in 2011, as well as signings,
ratifications and the entry into force of FTAs. EFTA
also submitted notifications to the WTO Secretariat
regarding decisions adopted by joint committees
under existing agreements. No EFTA FTAs were
examined by the WTO’s Committee on Regional
Trade Agreements during the reporting year.

Joint Committee Meetings in 2011
Free Trade Partner

Venue and Date of Meeting

Joint EFTA-Jordan Committee (3rd)
Joint EFTA-Chile Committee (3rd)
Joint EFTA-SACU Committee (2nd)
Joint EFTA-Israel Committee (8th)

Amman, 23 February 2011
Geneva, 5 May 2011
Geneva, 1 July 2011
Jerusalem, 23 November 2011

Fig. 2

EFTA’S WORLDWIDE NETWORK

Free trade relations with individual EFTA States
China, Faroe Islands and Japan.

Dialogue/study on closer trade and investment relations
Central American States (El Salvador and Nicaragua) and
Vietnam.

Declarations on Cooperation
Malaysia, Mauritius, MERCOSUR (comprising Argentina, Brazil,
Paraguay and Uruguay) and Mongolia.

FTA negotiations
Algeria, Bosnia and Herzegovina, Central American States
(Costa Rica, Guatemala, Honduras and Panama), India,
Indonesia, Russia/Belarus/Kazakhstan and Thailand.

EFTA Free Trade Agreements 24
Albania, Canada, Chile, Colombia, Croatia, Egypt,
the Gulf Cooperation Council (GCC; comprising Bahrain, Kuwait,
Oman, Qatar, Saudi Arabia and the United Arab Emirates), Hong
Kong China, Israel, Jordan, 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.

European Union 27
(Free trade partner)

EFTA States 4
(Free trade area)

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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 may involve experts from Member States and partner countries, notwithstanding the EFTA
States’ 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 technical cooperation programmes
and projects of the European Union aimed at third countries, especially in relation to customs matters,
standardisation and statistics.

A New Convention on Rules of Origin for the
Euro-Mediterranean Region
A free trade agreement contains rules of origin which normally limit preferential treatment under that agreement
to producers and exporters from the contracting states, according to certain criteria.


12

The rules of origin concluded as part of the so-called “Pan-Euro-Mediterranean (PEM) Cumulation System”,
however, go further than this: All participating countries recognise each other’s originating products if
corresponding FTAs are in place. As a result, industries established in the PEM zone may source input material
from any other country in that zone and still benefit from preferential treatment for the final product, which in
most cases is duty-free access to markets.
The system dates back to the 1970s when the EFTA States concluded free trade agreements with the EU that
allowed for the “cumulation” of origin between the two blocs. It was later extended to Turkey and Central
European States that have since joined the EU. In the late 1990s, the system was expanded further to countries in
the Mediterranean region in the context of the EU’s “Barcelona Process”. Today, in addition to the EU and the
EFTA States, 11 other partners participate in the PEM Cumulation System[1].
On 15 June 2011, a new legal instrument, the “Regional Convention on Pan-Euro-Mediterranean Preferential
Rules of Origin”, was opened for signature by the above-mentioned members of the PEM Cumulation System,
as well as by additional countries in the Western Balkans[2].
From 2012[3], the new Convention will replace the largely identical rules of origin contained in FTAs concluded
between the PEM countries. It will simplify the management of the cumulation system and allow for a single
regulatory reference for traders operating in the 49 participating countries and territories. Further partners may
join the PEM Convention in the future.
As most of the substantive rules included in the PEM Convention were initially conceived in the 1970s, they no
longer fully reflect today’s trading patterns and production requirements. A revision of the Convention has
therefore already begun. The EFTA States have a strong interest in simpler and more effective rules of origin and
are therefore fully supportive of this revision process.

[1]
[2]
[3]

Algeria, Egypt, Faroe Islands, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria, Tunisia and Turkey.
Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia.
The PEM Convention entered into force in the first three states (Norway, Liechtenstein and Switzerland) on 1 January 2012. At the end of 2011, it had been signed by
nine further parties, including the European Union and Iceland, with ratification pending.

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THE EEA AGREEMENT
of public procurement, the Waste Framework
Directive, the Media Mundus Programme and the
Framework for the Deployment of Intelligent
Transport Systems. Issues discussed by the Joint
Committee included specific legal acts such as the
Regulation establishing the European Supervisory
Authorities for financial markets, the Third Postal
Directive, the Audiovisual Media Services
(AVMS) Directive and, more generally, how to
further improve the processing of acquis in the
EEA Agreement.

The EEA Council
The EEA Council was chaired by the EU in the first half
of 2011 and by EFTA in the second half of the year. The
EEA Council met on 23 May and 15 November to review
the ongoing work in EEA cooperation and to note the
progress reports from 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 raw materials and the measures
taken to address the current economic crisis. The
conclusions from these meetings can be found in the
appendices to this report.

The EEA Joint Committee met eight times in 2011 and
adopted 164 decisions incorporating 373 legal acts.
Among the more significant decisions adopted by the
Joint Committee were those concerning the
incorporation of the Renewables Directive, the
European Aviation Safety Agency (EASA)
Regulation, aviation activities in the scheme for
greenhouse gas emission allowance trading, the
Ecodesign Framework Directive, modernised social
security coordination rules, Solvency II on insurance
regulation, the revised Remedies Directive in the area

Over the year, the European Commission provided the
Joint Committee with briefings on the ResourceEfficient Europe flagship initiative, the Maritime
Transport Strategy, the Energy Efficiency Plan and the
Single Market Act. The EEA EFTA States also
provided a briefing on the EFTA Ministerial meeting
of 21 June 2011.

13

The Standing Committee of the EFTA States at Ministerial level on 15 November
2011: Ambassador Jacques de Watteville, Mission of Switzerland to the EU;
Ambassador Atle Leikvoll, Mission of Norway to the EU; and Minister of Foreign
Affairs Jonas Gahr Støre, Norway.


The EEA Council, 15 November 2011.

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Meetings Held and EU Acts Incorporated in 2011

Fig. 3

Numbers of meetings
held in 2011
The Joint Committee

Numbers of acts
incorporated in 2011

8

343

The Standing Committee

8

-

SUBCOMMITTEE I

7

221

Competition Policy

-

2

Customs Matters

5

-

Efficient Trade Procedures

-

-

Energy Matters

7

14

Fisheries

-

-

Food Chain

1

151

Intellectual Property Rights

3

1

Processed Agricultural Products

1

-

Product Liability

-

-

Public Procurement

1

3

State Aid

-

-

Technical Barriers to Trade (TBT)

4

-

Working Groups

[1]

Agricultural and Forestry Tractors

-

3


Expert Groups under TBT
14

Appliances Burning Liquid or Gaseous Fuels

-

1

ATEX (equipment for use in explosive atmospheres)

-

-

Cableway Installations

-

-

Chemicals

-

25

Construction

-

-

Cosmetics

-

-

Electrical Equipment

-

-

Explosives

-

-

Fertilisers

-

1

Good Laboratory Practice

-

-

Machinery

-

-

Marine Equipment

-

-

Maximum Residue Levels (MRLs)

-

-

Measuring Instruments

-

4

Medical Devices

-

1

Medicinal Products

-

5

Motor Vehicles

-

6

Organic Production

-

-

Personal Protective Equipment

-

-

Pressure Equipment

-

3

Product Safety and Market Surveillance

1

-

Recreational Crafts

-

-

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page15

Numbers of meetings
held in 2011

Number of acts
incorporated in 2011

Telecommunications Equipment

-

-

Textiles

-

1

Wine and Spirit Drinks

-

-

SUBCOMMITTEE II

7

64

Company Law

1

6

Electronic Communication, Audiovisual Services
and Information Society

3

5

Data Privacy Expert Group

-

4

Financial Services

4

3

Postal Services

-

-

Transport

5

46

SUBCOMMITTEE III

7

29

Recognition of Professional Qualifications

1

1

Social Security

3

28

SUBCOMMITTEES III AND IV

-

-

Free Movement of Persons, Working Life and Social Inclusion[2]

1

-

SUBCOMMITTEE IV

7

59

Budgetary Matters

3

-

Civil Protection

2

-

Consumer Affairs

3

-

Cultural Affairs

1

-

Education, Training and Youth

2

-

Working Groups

Working Groups

Working Groups

Enterprise Policy and Internal Market Affairs

2

2

Environment

4

23

Gender Equality, Anti-Discrimination and Family Policy

2

1

Heads of National Statistical Institutes

1

30

Health and Safety at Work and Labour Law[3]

1[4]

3[5]

Public Health

2

-

Research and Development

2

-

Food Chain encompasses Feedingstuffs, Plant Health and Foodstuffs.
Temporary merger of the Group on Free Movement of Persons, Employment and Social Policy and the Group on Health and Safety at Work and Labour Law in June 2011.
Merged temporarily with the Group on Free Movement of Persons, Employment and Social Policy in June 2011.
[4]
Prior to the merger.
[5]
Two acts were incorporated in this field prior to the merger and one after.
[1]
[2]
[3]

15

Working Group

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page16

The Standing Committee of
the EFTA States
The Standing Committee was chaired by Norway in the
first half of 2011 and by Liechtenstein in the second
half of the year. The agendas and conclusions of the
Standing Committee meetings are available on the
EFTA website. On 15 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


16

12 working groups and 26 expert groups. The EEA
EFTA States and the Secretariat undertook a review
process of these groups in 2010 and 2011, and the
revised structure, designed to further improve the
efficiency of the EEA integration process, was
implemented in 2011.
Two committees deal with issues related to goods
under the EFTA Council: The Technical Barriers to
Trade (TBT) Committee and the Committee of Origin
and Customs Experts (COCE) (see page 20).
In 2011, the TBT Committee gave written input to the
European Commission on the review of the
standardisation system in Europe, and to the EU
institutions on the Commission’s proposal for a new
regulation on standardisation.

Subcommittee V on Legal and Institutional Questions
met six times in 2011. The Subcommittee devoted
considerable efforts to the issue of comitology in the
EFTA pillar and how to deal with criminal law
sanctions in Internal Market legislation. The
Subcommittee also discussed the status of the coal
and steel sectors under the EEA Agreement, social
security rules in the EEA 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.

The Committee also focused on keeping the Vaduz
Convention updated, and on the entry into force of
Protocol E (mutual recognition of conformity
assessments) to the EFTA-Turkey Free Trade
Agreement on 5 July 2011. A new EU quality
infrastructure project, IPA 2011, cofinanced by EFTA,
was approved by the EFTA Council in December 2010
and began in August 2011, following the termination
of IPA 2008. This EUR 2.5 million regional project
involves Turkey and the Western Balkans, and is
expected to last just over two years.

Free Movement of Goods

Finally, the Committee continued its discussions on the
issue of a possible fragmentation of the Single Market for
Services arising from certification and standardisation at
national level, and cooperated with Nordic Innovation in
its third study on the certification of services.

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.
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

Veterinary, Food and Agricultural
Issues
The veterinary and food legislation in the EEA
Agreement only applies to Iceland and Norway. Since
2007, Liechtenstein has been subject to the Swiss-EU
Agricultural Agreement pertaining to legislation in
these areas.
Veterinary issues
The Food Law Package, which includes key legislation
on general food law, hygiene and control matters, and
animal by-products, and the extension of certain

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page17

veterinary legislation to Iceland, entered into force in
the EEA in May 2010. This means that general food
legislation in Iceland and Norway is now in line with
EU law. Iceland, however, had a transitional period of
until 1 November 2011 to transpose legislation in areas
that were not previously applicable to Iceland.
The EEA Joint Committee incorporated 64 acts in the
veterinary area into the EEA Agreement in 2011.
Animal feed
34 legal acts regarding the authorisation of feed
additives were incorporated into the EEA Agreement
in 2011.
Food
The Food Law Package ensures full participation by
the EEA EFTA States in the European Food Safety
Authority (EFSA) including the possibility of
employment for EEA EFTA nationals.

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 (including Switzerland)
(see previous page) and the Working Group on TBT,
which coordinates the assessment of EEA relevance
and acceptability of new EU legislation to the three
EEA EFTA Member States. Switzerland is an observer
in this Working Group. In addition to clearing acts, the
Working Group discussed the following issues in 2011:
The Goods Package, the Alignment Package and
Mutual Recognition Agreements.
Motor vehicles
Six technical acts on motor vehicles were incorporated
into the EEA Agreement in 2011. The Framework
Directive regarding approvals of motor vehicles and
trailers is still being discussed by the EFTA States and
awaits incorporation into the EEA Agreement.
Medicinal products

Preparation continued for the incorporation into the
EEA Agreement of the new legal framework on
organic production.
Approximately 40 legal acts were incorporated into the
EEA Agreement in the foodstuffs area in 2011.

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, 23 acts concerning dangerous substances were
incorporated into the EEA Agreement in 2011.

Trade in agricultural products

Mutual recognition agreements

Following the conclusion of negotiations between
Norway and the European Commission in 2010 on the
liberalisation of trade in basic agricultural products
under Article 19 of the EEA Agreement, the Agreement
is expected to enter into force at the beginning of 2012.

Mutual recognition agreements (MRAs) facilitate
market access by reducing the costs and time
associated with obtaining product certifications.
Protocol 12 to the EEA Agreement ensures the smooth
functioning and homogeneity of the EEA market with
regard to MRAs. In that respect, discussions with
Canada were reopened in late 2010 and continued in
2011 in order to finalise a long-pending revision of the
EEA EFTA-Canada MRA.

In November 2011, 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
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.

The EFTA States continued 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

17

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

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page18

the new legislative framework for the marketing of
products. EFTA was a member of the Commission’s
project group on the development of guidelines for
customs controls in the area of product safety and
contributed directly to their preparation, including the
presentation of the draft guidelines to the European
Parliament’s Internal Market Committee. The EFTA
States also participated in meetings conducted by the
Senior Officials Group for Standardisation and
Conformity Assessment Policy (SOGS) and the SOGS
Market Surveillance Group.


18

The EFTA States participate in the work of PROSAFE,
Europe’s product safety enforcement forum, which is
an informal network of market surveillance
enforcement authorities. PROSAFE’s Secretariat is
located in the EFTA Secretariat’s building in Brussels.
EFTA participates as an advisory member of the
PROSAFE Board. PROSAFE is engaged in a joint
action on market surveillance and has contributed to
the development of EU Commission guidelines on
cooperation between market surveillance authorities
and customs authorities. The PROSAFE Board
monitors the financial management of the joint actions
and develops the strategic direction of PROSAFE in
the ongoing development of European market
surveillance.

European Standardisation
The EFTA States and the European Commission give
financial support to the European standardisation
organisations (ESOs): CEN, the European Committee
for Standardization; CENELEC, the European
Committee for Electrotechnical Standardization; and
ETSI, the European Telecommunications Standards
Institute. Like the Commission, EFTA has the formal
status of counsellor to CEN and ETSI, and is entitled
to participate in the administrative boards of these
organisations, as well as in the general assemblies of
the three ESOs.
In 2011, EFTA dealt with over 19 mandates for new
standardisation activities covering a wide range of
sectors. In addition, EFTA signed 58 agreements in the
standardisation area, including for the first time a
Framework Partnership Agreement with ANEC, the
European association for the coordination of consumer
representation in standardisation.
EFTA continued its financial support to ANEC; to the
EAAB, the Association for European Cooperation
for Accreditation; and to ECOS, the European

Environmental Citizens Organisation for Standardisation,
which represents consumer and environmental
interests in standardisation.
In December 2011, EFTA cofinanced a CEN workshop
on standardisation in support of resource efficiency.
EFTA continued to provide financial support to EOTA,
the European Organisation for Technical Approvals,
relating to the construction sector. The EEA EFTA
States also provided financial support to the European
Office of Crafts, Trades and Small and Medium-sized
Enterprises for Standardisation, which promotes the
interests of SMEs in standardisation.

Energy
In the field of energy, 14 acts were incorporated into
the EEA Agreement in 2011, 12 of which were related
to ecodesign requirements for energy-using products.
One act was related to the inter-TSO compensation
mechanism for Transmission System Operators in the
European Electricity Market, and another was the
Renewables Directive, which had been of particular
interest to the EEA EFTA States for a long time due to
their high share of renewables.

The EEA EFTA States monitored the follow-up to the
Energy Strategy 2011 carefully, including a
communication on smart grids and work on developing
an energy infrastructure instrument. Significant focus
was put on the Commission’s proposal for a new Energy
Efficiency Directive, which was presented in June 2011
and will be among the most important energy-related
initiatives to be discussed in the EU in 2012.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page19

The Third Package for the Internal Energy Market
entered into force in March 2011 and the EEA EFTA
States aim to incorporate it into the EEA Agreement as
soon as possible.

Competition Policy
Two block exemptions in the fields of specialisation
agreements and research and development agreements
were incorporated into the EEA Agreement in
February 2011.
The EEA EFTA States initiated a review of the acts
related to the former European Coal and Steel
Community that had been incorporated into the EEA
Agreement.

20 December 2011. Two of the proposals will replace
the existing procurement directives (the “Utilities”
Procurement Directive 2004/17/EC and the “Classical”
Procurement Directive 2004/18/EC), whereas the third
proposal is for a new directive concerning service
concession contracts.

Intellectual Property
In May, the Commission published a proposal for
certain permitted uses of orphan works. Orphan works
are works that are still in copyright but whose owners
cannot be identified or located. On 13 December 2011,
the EEA EFTA States provided the Commission with
comments to its proposal for a directive.

State Aid
The EEA EFTA States followed the work on reforming
the state aid rules applicable to Services of General
Economic Interest (SGEI) compensation closely. The
Reform Package entered into force in the EU on 31
January 2012, and the EEA EFTA States foresee its
quick incorporation into the EEA Agreement.

Public Procurement
Three acts in the field of public procurement were
incorporated into the EEA Agreement in 2011: The
Remedies Directive, which sets out review procedures
related to the award of public contracts; and two
regulations relating to threshold values and standard
notification forms.
The EEA EFTA States followed the Commission’s
consultation on reforming EU public procurement
legislation closely. 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. Norway provided feedback and the EEA
EFTA States participated in the follow-up conference
to the consultation. A reform package consisting of
proposals for three directives was presented on

The EU Council has agreed to a general approach to a
unitary patent for Europe. In addition, discussions are
currently taking place in the Council on the
establishment of what is now known as the “Unified
Patent Court”. The EEA EFTA States are following
this issue closely.
A European Observatory on Counterfeiting and Piracy
was launched by the Commission in April 2009 and,
following a dialogue between the Working Group on
Intellectual Property Rights and the Commission, it
was agreed that the EFTA Member States would
participate as observers.
In October, EFTA hosted a workshop organised by
CEPI, EUROCINEMA, FERA, IMPALA and SAA,
organisations from the world of film, cinema and
audiovisual services, on the financing and taxation of
the cultural industry. The workshop was organised


19

In addition, the EEA EFTA States participated in
multilateral state aid meetings in 2011 concerning the
amendment of regional aid guidelines, the amendment
of reporting obligations, state aid to shipbuilding, state
aid to broadband networks and state aid to audiovisual
works (film).

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page20

within the framework of the European Platform on
the Potential of Cultural and Creative Industries.

Customs Matters, Safety and
Security Matters and Trade
Facilitation
Customs
In June, the EFTA States signed the Regional
Convention on Pan-Euro-Mediterranean Preferential
Rules of Origin that will replace the current network of
origin protocols in the various agreements of the free
trade zone. Ratification and implementation of the
Convention have started in the contracting parties to
the Convention, which will create a preferential
trading zone throughout Europe and the Mediterranean
region (for further information on the PEM
Convention see box on page 12). In parallel, the
Committee of Origin and Customs Experts is working
on the revision of the European rules of origin, aimed
at completely modernising and simplifying European
origin provisions.


20

The Committee addressed other customs and origin
matters related to free trade agreements with thirdcountry partners, and other open technical customs
issues among EFTA countries to guarantee good
relations between customs administrations and the
smooth functioning of preferential trade relations.
Among others, the Committee agreed with the
Secretariat of the Central European Free Trade
Agreement (CEFTA) to start diagonal cumulation on 1
January 2012 between the EFTA States and the
Western Balkan countries – Albania, Croatia,
Macedonia and Serbia.

Safety and security matters
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 to the EEA Agreement,
and a joint working group responsible for the
implementation and monitoring of the safety and
security measures addressed under the bilateral
agreement is currently being set up.

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 monitored closely the
significant number of legislative acts issued by the
European Commission in response to the financial
crisis, in particular the regulations creating a new
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 microprudential level:

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 use/misuse of trade procedures as trade policy tools, have
heightened the political profile of trade facilitation. At the beginning of 2011, the EFTA Committee on Trade
Facilitation elaborated a trade facilitation template for EFTA’s ongoing and future trade negotiations, and the
Committee 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
added trade facilitation to their agendas.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page21

• The European Banking Authority
• The European Insurance and Occupational
Pensions Authority
• The European Securities and Markets Authority
The EEA EFTA States continued to work on adequate
EEA EFTA participation in these bodies.

Company Law

Transport
A significant number of proposals for new EU acts
were considered and discussed in depth with the EU
during the year. An important development was the
incorporation of the Regulation on common rules for
the operation of air services and the Regulation
establishing the European Aviation Safety Agency
(EASA).

Several acts were reviewed in 2011, including the
proposal on the interconnection of central, commercial
and company registers and, more recently, the proposal
for a European Foundation Statute.

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

In the area of audiovisual services, the Media Mundus
Programme was incorporated into the EEA Agreement.
This is a broad international cooperation programme
for the audiovisual industry to strengthen cultural and
commercial relations between Europe’s film industry
and film makers from third countries.

Other important issues on the transport agenda were
the Directive on Intelligent Transport Systems in
Europe and a proposal for the revision of the
guidelines for the development of a trans-European
transport network.
In the rail sector, high priority was given to the
Regulation concerning a European rail network for
competitive freight and a proposal to establish a Single
European Railway Market.

Discussions continued on the possible incorporation of
the Audiovisual Media Services (AVMS) Directive
into the EEA Agreement.

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

The proposal for amendments to the Regulation on the
establishment of the European Maritime Agency and
the Regulation on Passenger Rights were prioritised in
the field of maritime transport.
The main items on the agenda in the field of air
transport were the Second Single European Sky
Package, legislation linked to aviation security and the
EASA Regulation.


The EEA EFTA States finalised their discussion on the
incorporation of the Data Retention Directive into the
EEA Agreement.

21

The EEA EFTA States submitted a Comment on the
White Paper on the Future of Transport, which was
published in March and identifies the main trends and
challenges that will shape the future of transport policy
over the coming decades.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page22

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

Free Movement of Persons,
Working Life and Social Inclusion
Following the provisional merger between the
Working Group on free movement of persons,
employment and social policy and the Working Group
on health and safety at work and labour law, the new
Working Group discussed various horizontal issues
such as the EU Multiannual Financial Framework
(2014-2020); the Green Paper on Public Procurement,
which is linked to the social priorities of the Europe
2020 Strategy; and the Single Market Act. Attention
was also given to the relevant flagship initiatives under
Europe 2020.


22

In the area of free movement, the EEA EFTA States
monitored, for information purposes, developments on
the EU side related to proposals for third-country
nationals legally residing in the EU.

to the planned revision of the Working Time Directive,
the debate between the Council and Parliament over
the Pregnant Workers Directive, and the proposed
revision of the Electromagnetic Fields Directive. The
Working Group also held a joint meeting with the
EFTA Consultative Committee in Luxembourg, where
they mainly discussed issues related to the posting of
workers and temporary agency work.

Social Security
New social security coordination rules were
incorporated into the EEA Agreement in 2011. 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
Work relating to the proposal to revise the Professional
Qualifications Directive was monitored closely. In this
respect, an EEA EFTA Comment on the Green Paper
on Modernising the Professional Qualifications
Directive was sent to the EU side in September.

Flanking and Horizontal
Policies

With regard to employment, the EEA EFTA States were
invited to the informal meetings of the EU Employment
Committee, 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 that provides
information and assistance to both workers and employers,
and monitored the planned reforms of this network.

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. There are 13
working groups reporting to Subcommittee IV.

As regards social policy, the EEA EFTA States
continued their informal dialogue with the EU’s Social
Protection Committee and discussed their potential
participation in the European Year for Active Ageing
2012. The EEA EFTA States 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.

The EEA EFTA States continued to follow the
implementation of the Seventh Framework Programme
on Research (FP7), the Europe 2020 Strategy and its
flagship initiatives in the area of research and
innovation, and the EU’s ongoing work on new
European Research Area (ERA) initiatives. They also
followed closely the Commission’s preparation of its
proposal for a new framework programme in the field
of research and innovation – Horizon 2020.

In the areas of health and safety at work and labour
law, EEA EFTA experts followed developments related

The EEA EFTA States are negotiating with the
Commission on the possibility of incorporating the

Research and Development

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page23

Environment
The EEA Joint Committee adopted several decisions in
the field of environment in 2011, namely on the inclusion
of aviation activities in the EU Emissions Trading
Scheme (ETS), the ETS single EU registry, ambient air
quality, the control of priority substances in water and the
EU Waste Framework Directive.
One of the Working Group’s main priorities for 2011
was to continue to prepare for the incorporation of the
revised EU ETS Package into the EEA Agreement. The
second trading period for this scheme will end in 2012,
so preparations for the third trading period were at the
centre of the Working Group’s work and discussions
with the Commission.
The experts also focused on areas such as the
incorporation of acts related to the INSPIRE Directive
and the incorporation of the new EU Ecolabel
Regulation and related acts.
Other initiatives that the Working Group followed
carefully in 2011 included a proposal for a regulation on
the possibility for Member States to restrict or prohibit
the cultivation of GMOs in their territory, a proposal on
waste electrical and electronic equipment (WEEE) and a
proposal on the control of major accident hazards
involving dangerous substances (Seveso III).

The EEA EFTA States monitored the work of the High
Level Group on Education and Training Policies in the
EU and submitted an EEA EFTA Comment on the
Communication on Early Childhood Education and
Care. They also continued to follow the development of
the Rights of the Child initiatives and the relevant parts
of the Rights and Citizenship Programme (2014-2020).

Gender Equality, AntiDiscrimination and Family Policy
The Directive on the application of the principle of equal
treatment between men and women engaged in an
activity in a self-employed capacity was incorporated
into the EEA Agreement in July 2011. The EEA EFTA
States continued their participation 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 (20142020) and monitored plans for an accessibility act and
attempts to increase the representation of women on
company boards.
23

Consumer Affairs
The EEA EFTA States followed the revision of
consumer acquis and assessed in particular the

Topics discussed with the Commission included forest
protection and action against invasive species, and the
evaluation of the Commission’s Sixth Environment
Action Programme. The Working Group also received
briefings from the EU presidencies on their priorities
in the field of environment and climate change.

Education, Training and Youth
The EEA EFTA States’ current priority in the area of
education, training and youth is their participation in
the Lifelong Learning Programme (2007-2013) and the
Youth in Action Programme (2007-2013). The EEA
EFTA States followed the Commission’s preparatory
work for the post-2013 programme – Erasmus for All
– and submitted an EEA EFTA Comment on future
programmes in the field of education, training and
youth (2014-2020).

Diana Wallis, then Vice-President of the European Parliament, presenting her
views as Rapporteur on a Common European Sales Law to the EFTA Working
Group on Consumer Protection.


Council Regulation on the Community legal
framework for a European Research Infrastructure
Consortium (ERIC) into the EEA Agreement.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page24

Directive on Consumer Rights in view of its possible
incorporation into the EEA Agreement. EEA EFTA
experts also followed closely the newly-issued
proposal on a Common European Sales Law and
proposals on alternative dispute resolution and online
dispute resolution.
The EEA EFTA States received confirmation from the
Commission that they would be fully included in all
upcoming editions of the Consumer Market Scoreboard.
Two further priorities for 2011 were the upcoming
Consumer Programme (2014-2020) and the new
Consumer Policy Strategy.

Enterprise Policy and Internal
Market Affairs


24

The main issues monitored by the EEA EFTA States in
the area of enterprise policy and Internal Market affairs
in 2011 were the new proposal for the Programme on
Competitiveness of Enterprises and SMEs (COSME)
and the innovation, growth and competitiveness aspects
of the Horizon 2020 Programme. The EEA EFTA States
also followed the SME policy, the implementation of the
Services Directive, e-commerce, the Internal Market
Information (IMI) system, which provides a multilingual
database to support implementation of Internal Market
legislation, and the Better Regulation initiative, which
aims to improve and simplify new and existing
legislation in the EU.
Finally, the EEA EFTA States monitored the
development of SOLVIT, an online network for
solving problems caused by the misapplication of
Internal Market law, as well as the “Your Europe”
portal, which provides practical information on the
rights and opportunities available to individuals and
businesses in the Internal Market.

Civil Protection
The EEA EFTA States continued to participate actively
in the Community Mechanism for Civil Protection and
the Civil Protection Financial Instrument (2007-2013).
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 Working Group and Subcommittee finalised their
position on the Directive on Critical Infrastructure

Protection with a view to incorporating it into the EEA
Agreement.

Cultural Affairs
The EEA EFTA States’ main priority in the field of
culture and sport was to follow the new proposal on
Creative Europe (2014-2020) closely, as well as the
sports part of the Erasmus for All Programme.

Public Health
The Working Group on Public Health prepared for the
incorporation of the Patient Mobility Directive into the
EEA Agreement and 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 possible joint
procurement of vaccines; developments at EU level with
regard to a possible revision of the Tobacco Products
Directive; and challenges facing Europe’s health
workforce and health inequalities overall. The 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.

Budgetary Matters
The Working Group on Budgetary Matters monitors and
coordinates the preparation of the annual EEA EFTA
Budget, which 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 2011 were the estimated
budgetary implications of the proposal for the
Multiannual Financial Framework (2014-2020),
adopted by the Commission on 30 June 2011. The
Secretariat prepared a working document that was
circulated to the relevant working groups. The EEA
EFTA commitment to EU operational costs in 2011
was EUR 262 million, an increase of EUR 36 million
from 2009. EEA EFTA payments in 2010 amounted to
EUR 215 million, adjusted for the 2009 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 2011, 34 EEA EFTA
national experts were seconded to the various
directorates within the European Commission dealing
with EEA-relevant programmes and activities.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page25

EFTA/EU Cooperation in
Statistics
The EFTA Statistical
Office (ESO) celebrated
its 20th anniversary in
2011. The office was
created in 1991 in
EFTA Statistical Office Luxembourg as a
liaison office between Eurostat, the statistical office of
the European Union, and the EFTA national statistical
institutes (NSIs). Since then, the combined efforts of
ESO and Eurostat have resulted in close and wellfunctioning cooperation, as well as in the sustained
integration of Iceland, Liechtenstein, Norway and
Switzerland into the European Statistical System (ESS).
EFTA celebrated the anniversary with a reception and
panel discussion on the Statistical Office's past, present
and future.

The Working Group of the Heads of EFTA NSIs
reports to Subcommittee IV. In 2011, the Working
Group dealt in particular with:
• The development of the 2011 EEA Annual
Statistical Programme based on the EU Annual
Statistical Programme;
• The impact of the new legislative procedures
introduced by the Lisbon Treaty;
• Possible implications of the EU Financial
Supervisory Architecture for NSIs; and
• The significant reorganisation of Eurostat due to its
strengthened verification powers as regards the
quality of statistical data.

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:

25

To mark the occasion ESO also published a new edition
of the EFTA/EU Statistical Cooperation Handbook. This
updated edition, published as part of the EFTA Bulletin
series, describes the institutional and practical aspects of
EFTA/EU statistical cooperation.

Heads of EFTA National Statistical
Institutes

Panel participants at ESO’s 20th anniversary event: Pieter Everaers, Director for External Cooperation, Eurostat; Olav Ljones, Deputy Director-General, Statistics Norway;
Wilfried Oehry, Director-General, Liechtenstein Office of Statistics; Gabriel Gamez, Regional Adviser for the Statistics Division of UNECE and former Head of ESO;
Heinrich Brüngger, former Director of the Statistics Division of UNECE and former Head of ESO; and Andrea Scheller, Head of ESO (moderator).

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page26

• 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


26

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 is at a good level, despite there still
remaining some room for improvement.

EFTA Participation in Eurostat
Working Groups and Committees
Eurostat organised around 110 meetings in 2011 to
prepare and implement new legislation, exchange and
develop methodologies and follow up on data
collection. The EFTA Member States participated
actively in the relevant meetings on an equal footing
with colleagues from the EU Member States, and ESO
prepared a guide on participation in Eurostat working
groups for participants to get the most out of these
meetings and make their opinions heard.

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 International Monetary
Fund (IMF).
EFTA’s involvement gives priority to countries that
have concluded JDCs or FTAs 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
EFTA free trade and prospective partners in other
regions of the world.

Technical Cooperation Activities
and Projects
2011 was an exceptional year in terms of the
geographical coverage of regions that benefited from
EFTA technical cooperation, including Eastern
Europe, Caucasus and Central Asia (EECCA), Turkey,
the Western Balkans, the Mediterranean, Latin
America and the Caribbean. The main activities and
projects were:
• The continuation of the global assessments of the
EECCA countries’ national statistical systems.
EFTA support was granted through the funding of
assessors from EFTA countries and ESO in the
assessments of the Kyrgyz Republic and Ukraine;
• A joint EFTA/Eurostat/UNECE high-level seminar
on streamlining statistical production for experts
from the Western Balkan countries;
• A training course for experts from the national
statistical offices of the 23 Economic Commission
for Latin America and the Caribbean (ECLAC)
countries on the use of administrative registers in
the production of statistics;
• A training course for experts from the Frenchspeaking Mediterranean countries (Algeria,
Lebanon, Morocco and Tunisia) on advanced
methods for sample surveys;
• A joint IMF/EFTA/UNECE course on government
finance statistics for experts from the
Commonwealth of Independent States and several
other countries; and
• The funding of experts’ participation in
international and regional events in the field of
statistics.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page27

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

ESO Heads past and present: Heinrich Brüngger, Andrea Scheller (current Head
of ESO), Ib Thomsen and Gabriel Gamez.

In 2011, the EFTA Secretariat financed three of the
close to 25 ESTP courses that were held: One
organised by Statistics Norway on the set-up, use and
maintenance of business registers, and two by the
Swiss Federal Statistical Office on data analysis and
data modelling, and survey methodology and sampling
techniques.

EFTA Seconded National Experts
at Eurostat

27

At the end of 2011, three experts from Norway and two
experts from Switzerland were seconded to Eurostat
within the framework of the EEA Agreement and the
Swiss-EU Agreement respectively. One more from
each country will start their secondments in early 2012.
Two Norwegian experts were seconded to Eurostat as
a contribution in kind within the framework of
EFTA/EU technical cooperation to ensure continuity
of support and EFTA visibility in the overall
programming and management of EFTA/EU activity.
Two experts completed their secondments and returned
to Statistics Norway in 2011.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page28

EEA GRANTS AND
NORWAY GRANTS
Through the EEA Grants and Norway Grants,
Iceland, Liechtenstein and Norway contribute to
reducing disparities in the EEA and to strengthening
bilateral relations with 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, decent work, and
justice and home affairs.
EUR 1.789 billion in funding has been agreed for the
period 2009-2014, up from EUR 1.307 billion for the
previous five-year period. Norway represents
approximately 97% of the total funding.


28

2011: Over 1 000 Projects
Completed

Evaluating Results

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 Relations

Projects awarded support under the EEA Grants and
Norway Grants 2004-2009 were to be implemented by
30 April 2011. By that date, 90% of the 1 215 projects
supported were completed, while some 100 projects
were granted a one-year extension.

Two sector evaluations of projects funded by the EEA
and Norway Grants 2004-2009 were completed in
2011.

Significant Funding for Research
An evaluation assessing academic research funding
found that the support provided both a relevant and
significant source of funding, complementing wider
EU funding schemes. The evaluation also showed that
that all funded projects had met their immediate

Since funding from the EEA EFTA States to the least
developed countries and regions of the EU started in
1994, the Grants have contributed to a variety of areas,
such as reducing greenhouse gas emissions, protecting
biodiversity, improving health services, promoting
social inclusion and strengthening civil society.
In addition, the Grants have increasingly contributed to
developing mutual cooperation and strengthening
bilateral relations. Under the EEA Grants and Norway
Grants 2004-2009, donor and beneficiary state entities
cooperated to implement over 900 projects, both small
and large.
More strategic cooperation is being established
between 2009 and 2014. Over half of the expected 140
programmes will be planned and implemented in
cooperation with public entities from the donor states.
Bilateral funds at national and programme level will
also spur bilateral contacts, networking and project
cooperation.
Lake monitoring in Estonia (Photo: I. Ansko).

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page29

strengthening the national migration management
system, paying special attention to the situation of
unaccompanied children seeking asylum.
For the current funding period, support for programmes
dealing with environment, climate change and green
innovation is expected to represent around one-third of
the total. The EEA Grants and Norway Grants contribute
to programmes in the following areas:

objectives and conducted their activities as planned.
Research cooperation contributed to strengthened
bilateral relations.

Addressing Health Challenges
The evaluation of the health and childcare funding
concluded that the projects addressed relevant EU and
national health challenges, as well as local needs. The
impact on target areas and groups was generally
reported to be positive. The report also concluded that
almost all evaluated projects had achieved at least the
planned deliverables, with some even exceeding their
predefined objectives.

Norway Grants
• Carbon capture and storage
• Green industry innovation
• Decent work and tripartite dialogue
• Research and scholarship
• Human and social development
• Justice and home affairs
29

Allocation per country, 2009-2014
(in million EUR)
Spain 46
Slovenia 27
Slovak Republic 81

2011: Preparing for New
Funding

Bulgaria 127
Cyprus 8
Czech Republic 132
Estonia 49

Romania 306

Greece 63
Hungary 153

Portugal 58

Important steps were taken in 2011 to prepare the
funding under the EEA Grants and Norway Grants
2009-2014. By the end of the year, funding priorities
and institutional arrangements had been agreed in
Memoranda of Understanding (MoUs) with 13 of the
15 beneficiary countries.
Under the EEA Grants and Norway Grants 2009-2014,
the donor states provide support to larger programmes
rather than projects. This approach strengthens the
strategic and impact-oriented approach of the Grants.
The programme areas are agreed in the MoUs.
In 2011, the first two programmes were approved. The
first is a fund for decent work and tripartite dialogue
covering the 12 newest EU and EEA Member States,
and the second is a programme in Greece aimed at

Latvia 73
Lithuania 84
Malta 5

Poland 578
TOTAL: 1 789


“Walk the Grants“, an event organised by the Norwegian Embassy in Warsaw,
brought together representatives of all funded projects in Poland (Photo:
Mateusz Pieczko).

EEA Grants
• Environmental protection and management
• Climate change and renewable energy
• Civil society
• Research and scholarship
• Human and social development
• Protecting cultural heritage

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page30

ADVISORY BODIES
The Parliamentary
Committees
The Committee of Members of Parliament of the
EFTA Countries (CMP) and Committee of Members of
Parliament of the EFTA States (MPS) continued their
active involvement in EFTA third-country relations
and cooperation with the EU. The Chair of the
CMP/MPS in 2011 was Mr Svein Roald Hansen
(Norway) and the Vice Chair was Mr Harry Quaderer
(Liechtenstein).

Third-Country Relations


30

In February 2011, representatives of the CMP/MPS
visited Vietnam to support the ongoing dialogue on
possible free trade negotiations by strengthening ties
with stakeholders in Vietnam and sharing their views
on the merits of free trade. Together with an observer
from the Consultative Committee, the parliamentarians
met with the Speaker and relevant committees of the
National Assembly, government officials and business
representatives.
The CMP/MPS met with EFTA Ministers in Schaan in
June and Geneva in November, receiving updates on
third-country relations and raising points of interest

for the Committee members. Among other issues, the
Committee discussed the FTA negotiations with the
Customs Union of Russia, Belarus and Kazakhstan,
and showed an interest in strengthening free trade
with emerging markets and the relation between
development aid and trade. The Committee continued
its active engagement with respect to sustainable
development provisions in free trade agreements,
which have been incorporated into all EFTA
negotiations since the model chapter was agreed in
2010. The Committee met with WTO officials in
November to discuss the Doha Round and the
relationship between the multilateral and bilateral
approach to trade.

Cooperation with the EU
The EEA Joint Parliamentary Committee (EEA JPC)
met twice in 2011, in Svalbard in April and in
Strasbourg in October. The EEA JPC took a highly
active role in the reflections on the EEA Agreement,
and as a joint committee, its members gathered
information and insights from both the EU and EFTA
sides on the ongoing EEA review processes. A working
document entitled “The Review of the EEA” was
developed for the spring meeting, and will be
developed further in the coming period. As with
previous meetings, the EEA JPC engaged in a fruitful

Discussions at a joint seminar in Oslo on 13 December 2011 between the EFTA Consultative Committee and representatives of the European Economic and Social Committee’s
Single Market Observatory: Elisabeth Walaas, Director-General, Ministry of Foreign Affairs, Norway; and Halldór Grönvold, Chair of the Consultative Committee, Icelandic
Confederation of Labour (ASÍ).

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page31

The Consultative Committees
The EFTA Consultative Committee (EFTA CC) held
four internal meetings in 2011 and focused, among
others, on developments in the Internal Market, with
specific emphasis on the implementation of the Single
Market Act and a citizen’s approach; responses to the
economic and financial crisis; innovation in the energy
field; and a new flagship/agenda for skills and jobs
(Europe 2020). The Committee also continued its work
on international trade developments, focusing
especially on EFTA’s third-country relations.

Committee Work

dialogue with the EEA Council, the EEA Joint
Committee and the EFTA Surveillance Authority on
the functioning of the EEA. The meeting in Svalbard
also had the High North on the agenda, attracting
notable interest from the European Parliament.
Furthermore, the EEA JPC took an initiative to
establish a refund scheme for beverage packaging by
adopting a resolution in the October meeting calling on
the European Commission to introduce a mandatory
EEA-wide system. The EEA JPC also adopted
resolutions on the Digital Agenda and the EEA Grants
and Norway Grants.
Furthermore, the MPS continued its active dialogue
with the EFTA Ministers on EEA affairs, and met with
the Standing Committee at Ministerial level for the
third time in Brussels in November. These joint
meetings also included the EFTA Consultative
Committee and constitute an increasingly important
dialogue between the Ministers and the advisory
bodies on developments in the EEA.

31

Concerning the EEA, the EFTA CC met with the EFTA
Standing Committee at Ministerial level in November
in Brussels. It also invited the Vice President of ESA to
give a briefing in June on ESA’s most recent activities.
The Committee continues to emphasise strongly 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 EFTA CC held an exchange of views
with the European External Action Service, the EFTA
Ambassadors to the EU and a representative of a
Brussels-based think tank on the future of the EEA and
EU-Swiss relations.
Furthermore, the EFTA CC continued its cooperation
with the EFTA authorities at EFTA working group level.
In March, the Committee and the EFTA Working Group
on Health and Safety at Work and Labour Law organised
a visit to the EFTA Court in Luxembourg, where they
observed the hearing on the Icelandic Posting of Workers
case, discussed with a Commission representative the
latest developments in the labour market field, and met
with the President of the EFTA Court.


Members of the EFTA Parliamentary Committee at the EFTA Ministerial meeting
in Geneva on 14 November 2011: Harry Quaderer (Independent), Liechtenstein;
and Svein Roald Hansen (Labour), Norway.

The EFTA CC met with the Standing Committee of
the EFTA States in March, the EFTA Ministers in
June and the Ministerial Chair of the Council in
December, and the EFTA Parliamentary Committee
in June. In November, the Parliamentary and
Consultative Committees held a joint seminar on the
financial and economic crisis, focusing especially on
developments in smaller economies, featuring case
studies from the EFTA countries.

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EEA Consultative Committee

The EEA EFTA Forum

At its meeting in May in Tartu, Estonia, the EEA
Consultative Committee (EEA CC) focused on
European economic governance and on Iceland’s EU
accession negotiations. It also visited a project in Tartu
that had received funding from the EEA Financial
Mechanism. Furthermore, the EEA CC engaged in a
dialogue with representatives of the EEA Joint
Committee and ESA on the latest EEA developments,
and discussed and adopted two resolutions on the
Single Market Act and innovation in the energy field.

The EEA EFTA Forum of
elected representatives from
local and regional authorities
(the Forum) was established
by the Standing Committee of
the EFTA States in 2009 as an
informal body to involve
elected representatives from
local authorities and regions
in EEA matters. The Forum
has 12 members, six from
Iceland and six from Norway.
Liechtenstein has decided not
to take part in the meetings
for the time being.

Osmosis
Cooperation between social partners in the EEA was
further reinforced in 2011 through the Osmosis
procedure, which allows representatives of the EFTA
Consultative Committee to participate in the work of the
European Economic and Social Committee (EESC) and
vice versa. Cooperation in 2011 included EFTA
participation in the EESC Joint Consultative Committee
meetings with Croatia, Turkey and Macedonia; the
EESC Steering Committee on Europe 2020; and the
EESC Single Market Observatory.

32

The Co-chairs of the EEA CC in 2011 were, for the
EFTA CC, Halldór Grönvold (Iceland) and, for the
EESC, Meelis Joost (Estonia).

Halldór Halldórsson, Icelandic
Association of Local Authorities,
was elected as new Chair of the
EEA EFTA Forum of Local and
Regional Authorities from
1 June 2011.

The Forum held two
meetings in 2011, the first in
Hamar, Norway, from 31 May to 1 June, and the
second in Brussels from 14 to 15 November. The
Forum adopted opinions on the planned revision of
the EU Public Procurement Directive, multilevel
governance in the EEA, public services in the EEA
context, and the European Commission’s draft
directive on energy efficiency.

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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.
Furthermore, presentations are given to visitors to the
Secretariat offices in Geneva, Brussels and
Luxembourg. In Brussels alone, approximately 70
groups (a total of 1 250 people) visited EFTA in 2011.

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

Seminars

Publications
The latest editions of all of EFTA’s brochures are
available on the website. Paper copies can be ordered
free of charge, subject to availability. The following
were released in 2011:
• This is EFTA 2011: An annual publication,
providing an overview of EFTA and its activities,
together with useful trade and economic statistics.
• The EFTA Bulletin: EFTA/EU Statistical
Cooperation Handbook. A new and updated edition.
In addition, EFTA’s updated fact sheet, “EFTA at a
Glance”, provides a brief introduction to the
organisation and its activities.

EFTA held several seminars and workshops in 2011,
including the following:

• In May, the EFTA Secretariat, in collaboration with
the stakeholder organisation Science|Business, held
a roundtable discussion on data protection and
security.
• In June, around 90 participants from both the public
and private sectors in the EEA countries met in
Brussels for EFTA’s regular seminar on the EEA,
which had a special focus on the EU’s Internal
Energy Market.
• In October, EFTA hosted a workshop with around
50 representatives of organisations from a wide
range of cultural and creative sectors to discuss the
financing and taxation of the cultural industries.

33

• In February, an export promotion seminar was
organised in Amman by EFTA, the Jordanian
Ministry of Industry and Trade and the Jordanian
Chambers of Industry and Commerce.

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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:
•
•
•
•
•

The Standing Committee of the EFTA States
The EFTA Surveillance Authority
The EFTA Court
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 2011, the EFTA Secretariat published 71 issues of
the EEA Supplement. The publication of acts
incorporated into the EEA Agreement decreased in
2011 compared to the previous year for the Icelandic
version, whilst the Norwegian version saw an increase
in the number of acts published in 2011.

Publication in the EEA Supplement 2011

Fig. 4

Number of pages


34

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

Icelandic
325
3 132
28
694
47
1 344
5 570

Norwegian
325
2 811
28
694
47
1 344
5 249

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page35

ADMINISTRATION
At the end of 2011 there were 22 fixed-term and shortterm staff based in Geneva, and 63 in Brussels and
Luxembourg. The Financial Mechanism Office in
Brussels employed 52 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
2011 was equivalent to CHF 23 654 000.

The EFTA Board of Auditors
The EFTA Board of Auditors (EBOA), established in
May 1992, is the supreme audit 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, the EFTA
Surveillance Authority (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 2011.
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.

2011 EFTA Budget

Fig. 5

Budget Posts

2011 Budget (in CHF)

Trade-related activities
EEA-related activities
EFTA/EU statistical cooperation
Secretary-General's services (information, horizontal and Council activities)
EU/EFTA and EFTA cooperation programmes
Administration and Management

Contributions from the EFTA States to the 2011 EFTA Budget
Member State
Iceland
Liechtenstein
Norway
Switzerland
Total

4 682 000
8 824 000
747 000
1 964 000
3 245 000
4 192 000
23 654 000

Fig. 6

Contributions (in CHF)

Share (in %)

1 025 000
205 000
13 510 000
8 914 000
23 654 000

4.33
0.87
57.12
37.68
100.00


35

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APPENDICES
EFTA Parliamentary Committee Members[1]
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 Magnús Orri Schram

Social-Democratic Alliance

Liechtenstein
Mr Harry Quaderer

Independent

Mr Albert Frick

Progressive Citizens’ Party

Norway

36

Mr Svein Roald Hansen

Labour Party
(Chair CMP/MPS and President of the EEA JPC)

Mr Harald T. Nesvik

Progress Party

Ms Gina Knutson Barstad

Socialist Left Party

Ms Laila Gustavsen

Labour Party

Ms Laila Marie Reiersten

Progress Party

Mr Jan Tore Sanner

Conservative Party

Switzerland
Mr Ignazio Cassis

Radical-Liberal Party

Mr Didier Berberat

Social Democratic Party

Mr Eugen David

Christian Democratic Party

Ms Brigitta M. Gadient

Civic Democratic Party

Mr Hans Kaufmann

Swiss People’s Party

[1]

Committee members as at October 2011.

2486-RAPPORT-2012-06_AR 20/03/12 16:11 Page37

EFTA Consultative Committee Members
Iceland
Mr Halldór Grönvold (Chair)

Icelandic Confederation of Labour (ASÍ)

Mr Róbert Trausti Árnason

Confederation of Icelandic Employers (SA)

Mr Haraldur Ingi Birgisson

Icelandic Chamber of Commerce

Ms Helga Jónsdóttir

Federation of State and Municipal Employees (BSRB)

Mr Bjarni Már Gylfason

Federation of Icelandic Industries (SI)

Liechtenstein
Mr Josef Beck

Liechtenstein Chamber of Commerce and Industry (LCCI)

Mr Sigi Langenbahn (Second Vice Chair)

Federation of Liechtenstein Employees

Norway
Federation of Norwegian Commercial and Service
Enterprises (Virke)

Ms Liz Helgesen

Norwegian Confederation of Unions for Professionals
(Unio)

Mr Vidar Bjørnstad

Norwegian Confederation of Trade Unions (LO)

Ms Bente Stenberg-Nilsen

Norwegian Association of Local and Regional Authorities
(KS)

Mr Espen Søilen

Confederation of Norwegian Enterprise (NHO)

Mr Christopher Navelsaker

Norwegian Confederation of Vocational Unions (YS)

Switzerland
Mr Jan Atteslander

economiesuisse

Ms Ruth Derrer Balladore

Confederation of Swiss Employers

Ms Jean-Pierre Monti

Swiss Workers’ Federation and Swiss Federation of
Employees

Ms Marco Taddei

Swiss Association of Small and Medium-sized Enterprises

Mr Pierre Weiss

Fédération des Entreprises Romandes Genève
(FER Genève)

37

Mr Thomas Angell (First Vice Chair)

51th Annual Report of The European Free Trade Association 2011

51th Annual Report of The European Free Trade Association 2011

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