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Europe Daily Bulletin No. 9424
Contents Publication in full By article 23 / 49
GENERAL NEWS / (eu) eu/efta

EFTA free trade agreement negotiations pick up speed

Brussels, 10/05/2007 (Agence Europe) - Presenting the European Free Trade Association (EFTA) Annual Report for 2006 on Thursday 10 May, EFTA Secretary General Kåre Bryn reviewed the free trade agreements agreed or being negotiated between EFTA and third countries. The negotiations have been picking up speed but Bryn stressed that this did not contradict or compete with the multilateral trade talks at the World Trade Organisation.

So far, EFTA has signed 15 free trade agreements with third countries, Bryn explained, and such agreements are currently in force in Morocco, Southern Africa Customs Union, Mexico, Chile, Singapore, South Korea and Turkey. He pointed out that the free trade zone set up by EFTA is one of the biggest in the world because it covers the four EFTA countries, Iceland, Liechtenstein, Norway and Switzerland, 15 third countries and the 27 EU member states. A free trade agreement was signed at the start of 2007 with Egypt and talks have been launched with Peru and Colombia, which are expected to make rapid progress. Talks re-started with Canada at the end of 2006 and are expected to be concluded shortly, while talks with the Gulf Cooperation Council are continuing. A feasibility study is currently being carried out over the launch of negotiations with India, and another study has been finalised on Indonesia. He stressed the extreme importance of proper negotiations with India given the sheer economic potential of the country. Bryn said he hoped ambitious talks with new Delhi would include measures concerning investment. He hinted, however, that China would prefer a bilateral solution and negotiations had already been launched with Switzerland and Iceland.

Within EFTA, three countries (Iceland, Liechtenstein and Norway) are members of the European Economic Area Agreement (EEA). The EEA agreement is vital for managing economic relations between the three countries and the EU, since it guarantees their involvement in the common market. Bryn explained that no directives had yet been stopped. Admitting that since the end of the 1990s the EU had turned some of its attention away from EFTA to neighbouring countries to the East and South, Bryn said it was important not to over-dramatise the situation, adding that EFTA had to remind the EU that it exists, and agreements have to be respected.

The secretary general said there had been progress in 2006 in taking up the 'Community acquis' (legislation), particularly work in progress on the services directive and the directive setting up a carbon trading system. EFTA country involvement in the European Food Safety Authority will soon be organised and great attention is being paid to EFTA country residents' involvement in various EU programmes (like Erasmus, lifelong learning and the 7th Framework Programme of R&D). Negotiations on extending the EFTA agreements to Bulgaria and Romania have been concluded.

How do EEA/EFTA countries influence the preparation of draft EU legislation? The greatest influence is at the expert level, upstream of any publication of draft legislation by the Commission, explained Bryn. EEA/EFTA countries, even Switzerland, have the right to send experts to European committees active in areas of the common market where their interests are at stake. This was the case, for example, when the Commission drew up its strategy on the EU's maritime policy (see EUROPE 9206), and the REACH chemicals directive, around which EEA/EFTA countries were very active (see EUROPE 9330). (mb)

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