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Square Pegs and Round Holes (Continued): Financial Market Surveillance Authorities and Internal Market Association
- GEORGES S BAUR
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- Cambridge Yearbook of European Legal Studies / Volume 22 / December 2020
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- 03 February 2021, pp. 32-59
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After the financial crisis of 2008, the European Union (‘EU’) not only increased its substantial legislation regarding financial services, but also built up a strong and unified system of financial market supervision. In particular, central surveillance authorities were created. These were given far-reaching competences with regard to substituting dysfunctional national authorities or players in the financial services sector. The three European Economic Area (‘EEA’) and European Free Trade Association (‘EFTA’) States—Iceland, Liechtenstein, and Norway—participate in the EU's internal market through their membership of the EEA. In order to continue participating on an equal footing in the internal market for financial services and to honour their duty to maintain homogeneity, the EEA EFTA States also had to incorporate the new institutional setup regarding financial services supervision. This obligation, however, in particular relating to certain intrusive powers of the new surveillance authorities, collided with some constitutional reservations, above all of the two Nordic EEA EFTA States. This article will show how these conflicting aims could be merged into a system that on the one hand guarantees the unified overall approach needed for strengthened surveillance of the internal market for financial services, and on the other hand safeguards certain constitutional reservations of the EEA EFTA States. It also looks at how third countries that do not (fully) participate in the internal market, such as the United Kingdom and Switzerland, are likely to be treated in this context by the EU.
4 - Switzerland: Striking Hard Bargains with Soft Edges
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- By Georges Baur
- Edited by Martin Westlake, London School of Economics and Political Science and Collège d'Europe, Belgium
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- 06 October 2020, pp 47-62
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Summary
Switzerland, not unlike the United Kingdom, always had a somewhat awkward, if not difficult, relationship with Europe, especially with the European Union. On the one hand, Switzerland is geographically situated at the centre of the continent and therefore highly dependent on being on good terms with its surrounding neighbours, all of them being EU member states, with the exception of Liechtenstein. On the other hand, Switzerland always saw itself as being special: neutrality, (semi-)direct democracy and strong federalism are seen as being in the DNA of the country and, thus, largely incompatible with EU membership.
In this chapter I will first describe how the current situation with the so-called “Bilateral Agreements” came about and what exactly they are. I will then look at how the Bilateral Agreements work and at their advantages and disadvantages. I will then consider how such an approach would work with the UK and what kind of precedent might be set by it.
HOW THEY CAME ABOUT
After the Second World War, Switzerland, like other European countries, went on its quest for an ideal form of cooperation. The above political sensitivities were seen as obstacles to joining any international organization which was seen as being “political”. Thus, it took three referenda for Switzerland to join the United Nations, and accession to the EU was always seen as being very difficult and, indeed, has stood no chance of being accepted in a referendum to this very day. For Switzerland, therefore, foreign policy was always foreign trade policy. When some Western European states in 1960 joined around the UK to set up the European Free Trade Association (EFTA) as an alternative to the European Economic Community (EEC), Switzerland was among them.
Since then, Switzerland has cautiously tried to deepen its relations with the (now) EU. Next to concluding the odd agreement to facilitate trade in special fields, such as watches or insurance, in the early 1990s it embarked, together with the other EFTA states at that time, on a venture which would link these states to the EU's internal market. In 1992 the European Economic Area (EEA) Agreement was signed and should have entered into force on 1 January 1993.
Chapter 7 - Conclusion: EFTA Membership for the UK Post-Brexit?
- Georges Baur
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INTRODUCTION
In this final chapter of the present book, the discussion turns to the potential benefits of (renewed) EFTA membership for the UK post Brexit. The issue has to be seen against the background of the fact that, rather soon after the referendum on Brexit, it started to dawn on many that the UK will, by leaving the EU, also leave the EU's FTA network. Furthermore, it will need a new basis for its trade relationships with its closest partners in Europe, including in particular the EU member states as well as the EFTA states of Iceland, Liechtenstein, Norway and Switzerland.
The idea that the UK could or should (re-)join EFTA, was not only promoted by certain political groups in the discussion after the referendum of 23 June 2016. 1 In 2017, there was also a report of the House of Commons International Trade Committee, 2 which stated the following:
’ We recommend that the Government now evaluate the implications of the UK's rejoining the European Free Trade Association (EFTA), which would offer an opportunity for a smoother transition as the UK exits the EU in 2019. We were impressed by the potential benefits of EFTA membership, given there is close alignment between the UK's economy and those of EFTA members, albeit the UK would be considerably the largest member were it to join. The prospect of UK membership of EFTA from 2019 onwards could clearly be to Britain's advantage and we, therefore, recommend that the Secretary of State publish a White Paper on EFTA membership before summer 2017, so that negotiations can commence before the end of the year. ‘
However, this recommendation was not taken up by the UK government.
Since the General Election of December 2019, the UK is set to leave the EU on 31 January 2020. After that, there is a rather short time frame until 31 December 2020 in which to negotiate the new relationship with the EU and also FTAs to replace the EU's FTA network which the UK will leave by that date.
Chapter 4 - EFTA Institutions, Membership, Scope and Other General Provisions
- Georges Baur
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INTRODUCTION
After having dealt with the substantive provisions of the EFTA Convention in the previous chapter, there are, of course, other provisions that it is worthwhile describing. This chapter will begin with the more general provisions, such as the nature of EFTA and its territorial scope, but also those provisions on accession and association and withdrawal. Finally, this chapter will look at EFTA's institutions and procedures.
NATURE AND TERRITORIAL SCOPE
The nature of EFTA is that of an intergovernmental organisation. Hence, it is quite different in scope from, e.g., the EU. It was deliberately chosen to be different as many of its members could not agree with the then EEC's supranational tendency and political aims. The EFTA states have not surrendered any of their sovereignty to the Association or any institutions thereof. EFTA does not have legal personality like the EU. Nevertheless, it enjoys diplomatic immunity and so do part of the staff of the EFTA Secretariat, the EFTA Surveillance Authority and the EFTA Court according to seat agreements with Switzerland, Belgium and Luxembourg.
The Convention is applicable to the territories of the EFTA states, 3 thus defining the territorial scope. Exceptions are mentioned in Annex U. According to that protocol the Kingdom of Norway was given the right to exempt the territory of Svalbard (Spitzbergen) from the application of the Convention with the exception of trade in goods when ratifying the Agreement amending the Convention establishing the European Free Trade Association of 21 June 2001.
Norway exercised its right. Therefore, the EFTA Convention does not apply to the territory of Svalbard, with the exception of Articles 3 through 11. Given the special status of the archipelago under international law, the respective provision further states:
’ 2. In the event of a conflict between the Treaty Regulating the Status of Spitzbergen and Conferring the Sovereignty on Norway, done at Paris, 9 February 1920 (the “ Spitzbergen (Svalbard) Treaty “ ) and this Agreement, the Spitzbergen (Svalbard) Treaty shall prevail to the extent of the conflict, without prejudice to the positions of the Parties in respect of the Spitzbergen (Svalbard) Treaty. In the event of such conflict or a dispute as to whether there is such conflict or as to its extent, the dispute settlement provisions of this Agreement shall not apply. ‘
Chapter 3 - Substantive Fields of Activity of EFTA
- Georges Baur
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INTRODUCTION
FREE TRADE ZONE
EFTA's first objective was to create a classical free trade zone, i.e. abolishing or at least minimising tariff s on trade between its member states. At the beginning of the 1960s, trade in industrial products still dominated. From the end of the 1990s, however, this was no longer sufficient. More and more services were being provided on a cross-border basis, investment required rules to protect them, and intellectual property had become increasingly important in the context of ever-growing trade relations with the then emerging markets like China and India. The establishment of the World Trade Organisation (WTO) in 1994 shows this with great clarity. In order to take this development into account, the EFTA Convention was revised in the year 2000 and new areas, such as services, were added.
NEED FOR ADAPTATION
From 1972, EFTA was increasingly used as the EFTA states‘ basis for their relations with the EU. That development started with the conclusion of the EEC-EFTA free trade agreements and led to the conclusion of, on the one hand, the EEA Agreement in 1992 and, on the other, Switzerland's bilateral agreements in 1999 and 2002. Following this, EU nationals and enterprises were de facto in a more favourable situation in either the EEA or Switzerland than citizens or enterprises from the other EFTA states respectively. For example, citizens of Iceland and Norway – Liechtenstein being a case apart – were not entitled to the rights conferred by Switzerland on EU citizens in the area of the recognition of professional diplomas.
Already in the course of the negotiations between Switzerland and the EU on a first package of sectoral agreements (Bilateral Agreements I; BAs I), the Swiss government indicated that it was ready, at the end of these negotiations, to offer equal treatment to its EFTA partners. Hence, at the meeting of the EFTA Council at ministerial level on 12 and 13 December 2000, the EFTA states decided to mutually treat other's EFTA citizens and enterprises in the same way as they were treated in the context of the EFTA states‘ respective relations with the EU. Furthermore, and as mentioned above, developments in multilateral trade, fi rst and foremost the WTO, had to be reflected as well.
About the Author
- Georges Baur
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List of Tables and Figures
- Georges Baur
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Annex T. Arbitration (Art. 48)
- Georges Baur
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ARTICLE 1
Establishment and functioning of the arbitral tribunal and the implementation of arbitral awards
1. The arbitral tribunal shall comprise three members.
2. In its written notification pursuant to Article 48 of this Convention, the Member State(s) referring the dispute to arbitration shall designate one member of the arbitral tribunal.
3. Within 15 days from the receipt of the notification referred to in paragraph 2, the Member State(s) to which it was addressed shall, in turn, designate one member.
4. Within 30 days from the receipt of the notification referred to in paragraph 2, the Member States concerned shall agree on the designation of a third member. The third member shall not be a national of the parties to the dispute, nor permanently reside in the territory of either Member State. The member thus appointed shall be the President of the arbitral tribunal.
5. If all three members have not been designated or appointed within 30 days from the receipt of the notification referred to in paragraph 2, the necessary designations shall be made, at request of either party to the dispute, by the President of the International Court of Justice applying the criteria of paragraphs 3 and 4. If the President is unable to act under this paragraph or is a national of a party to the dispute, the designations shall be effected by the next senior member of the Court who is neither unable to act nor a national of a Member State.
6. Unless otherwise agreed between the parties to the dispute, and subject to Article 48 of the Convention and this Annex, the Optional Rules for Arbitrating Disputes between Two States of the Permanent Court of Arbitration (PCA), effective 20 October 1992, shall apply.
7. The arbitral tribunal shall take its decisions by majority vote. Minority opinions shall not be disclosed.
8. A Member State which is not a party to the dispute, on delivery of a written notice to the disputing parties, shall be entitled to make written submissions to the arbitral tribunal, to receive written submissions of the disputing parties, attend all hearings and make oral submissions.
Chapter 2 - Short Historical Overview
- Georges Baur
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FROM EFTA's FOUNDATION TO THE UK's ACCESSION TO THE EEC
The foundation of EFTA forms part of the movements for European integration, which were among the major political and economic developments in Western Europe after the end of the Second World War.
After the creation of the European Community for Coal and Steel (ECSC) in July 1951 and during the negotiations to create a European economic community as well as Euratom (European community for atomic affairs), treaties which were signed in July 1957, the United Kingdom proposed at the ministerial conference of the Organisation for European Economic Cooperation (OEEC) in July 1956 the creation of a large Western European free trade zone. It was designed to be composed of the six member states of the EEC and all other OEEC states, including the future seven EFTA states. Negotiations had been conducted very intensively in the so called ’ Maudling committee’. In 1958 however, negotiations had to be broken off as differences could not be overcome between the parties.
In June 1959, high-level officials of the seven countries, Denmark, United Kingdom, Norway, Austria, Portugal, Sweden and Switzerland, met near Stockholm to sketch a plan of how to create a free trade zone between those seven countries. In July of the same year, ministers of those countries decided to start negotiations on the basis of this plan as soon as the following autumn. These negotiations led to a finalisation of the text of the EFTA Convention on 20 November and its signature by the seven ministers on 4 January 1960. The Convention was swiftly ratified and entered into force on 3 May 1960; a separate protocol then extended the Convention to the principality of Lichtenstein, which since 1923 had formed a customs union with Switzerland. Finland joined on 27 March as an associated state. The Association Agreement entered into force on 26 June 1961. Iceland joined both the EFTA Convention and the Association Agreement with Finland on 1 March 1970.
Following its foundation EFTA had two major goals: first, the introduction of free trade in industrial goods and several processed agricultural and fisheries products between its member states, and, second, the creation of a free trade area comprising both the seven members of EFTA and the six EEC member states.
Frontmatter
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Index
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Chapter 5 - Trade Relations with Third Countries and Groups of Countries
- Georges Baur
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INTRODUCTION
HISTORICAL NOTE
Today, the EFTA states have a considerable network of free trade agreements (FTAs) and other types of agreements with different kinds of partners, i.e. countries, special administrative regions (Hong Kong, China) and groups of countries all over the world. This was, however, not part of the original (main) scope of EFTA. Originally, free trade was to be established, first, among EFTA states and, second, with the EU (originally the EEC, later EC).
Naturally, there was, also, the perspective to conclude FTAs with close neighbours that were – at the time – members of neither EFTA nor the EU. Such a case was Spain or, later, Turkey. Then, after the collapse of communism and the respective economic bloc (COMECON), FTAs were concluded with the Central and Eastern European countries. There was, already then, a certain parallel development with that of the EU which had concluded so-called ‘Europe Agreements’ with these countries to allow them to eventually join the EU.
Around the same time, in the second half of the 1990es, the EU started to negotiate FTAs at a global level. 3 In order not to lose competitiveness in comparison with the EU, EFTA started to build a similar network of FTAs.
In this context FTAs means agreements on free trade with third countries, i.e. excluding trade relations in substance between the EFTA states or with the EU.
In 2018, 29 FTAs were in place with 40 partner countries and customs territories: Albania, Bosnia and Herzegovina, Canada, the Central American states of Costa Rica and Panama (entry into force pending for Guatemala), Chile, Colombia, Ecuador (entry into force pending), Egypt, Georgia, the Gulf Cooperation Council (GCC, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), Hong Kong China, Indonesia (entry into force pending), Israel, Jordan, the Republic of Korea, Lebanon, North Macedonia, Mexico, Montenegro, Morocco, Palestinian Authority, Peru, the Philippines, Serbia, Singapore, the Southern African Customs Union (SACU, comprising Botswana, Lesotho, Namibia, South Africa and Eswatini), Tunisia, Turkey and Ukraine.
LEGAL BASIS AND INTERNATIONAL LAW (WTO) CONTEXT
The legal basis for EFTA's third-country relations can be found in Article 56(2) of the (revised) EFTA Convention.
Acknowledgements
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Convention Establishing the European Free Trade Association
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The Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation (hereinafter referred to as the “Member States ”);
Having regard to the conclusion on 4 January 1960, between the Republic of Austria, the Kingdom of Denmark, the Kingdom of Norway, the Portuguese Republic, the Kingdom of Sweden, the Swiss Confederation and the United Kingdom of Great Britain and Northern Ireland, of the Convention establishing the European Free Trade Association (hereinafter referred to as the “ Convention “ );
Having regard to the association with the Republic of Finland and its subsequent accession on 1 January 1986, and to the accessions by the Republic of Iceland on 1 March 1970 and by the Principality of Liechtenstein on 1 September 1991;
Having regard to the successive withdrawals from the Convention by the Kingdom of Denmark and the United Kingdom on 1 January 1973; the Republic of Portugal on 1 January 1986; the Republic of Austria, the Republic of Finland and the Kingdom of Sweden on 1 January 1995;
Having regard to the free trade agreements between the Member States on the one hand and third parties on the other;
Reaffirming the high priority they attach to the privileged relationship between the Member States and to the facilitation of continuity in their respective good relations with the European Union , which are based on proximity, long-standing common values and European identity;
Resolved to deepen the co-operation instituted within the European Free Trade Association , further facilitating the free movement of goods, aiming at the progressive attainment of free movement of persons and the progressive liberalisation of trade in services and investment, further opening up the public procurement markets in the EFTA States, and providing for the appropriate protection of intellectual property rights, under fair conditions of competition;
Building on their respective rights and obligations under the Agreement establishing the World Trade Organization and other multilateral and bilateral instruments of co-operation;
Recognising the need for mutually supportive trade and environmental policies in order to achieve the objective of sustainable development;
Affirming their commitment to the observance of recognised core labour standards, noting their endeavours to promote such standards in the appropriate multilateral fora and expressing their belief that economic growth and development fostered by increased trade and further trade liberalisation contribute to the promotion of these standards;
Chapter 6 - The Relations between the EFTA States and the EU/EEA
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INTRODUCTION AND DEVELOPMENT OF PRINCIPLES
The relationship between EFTA and the EU has been, since its inception, the second policy objective of EFTA. As shown earlier, real cooperation only materialised after the EEC had agreed to open accession negotiations with Denmark, Ireland, Norway and the UK in 1969, a decade after both blocs were founded. This chapter will trace the development of the EFTA states‘ increasingly comprehensive integration between Denmark's and the UK's move from EFTA to the EU in 1973 until the creation of the EEA and the sectoral (bilateral) agreements between Switzerland and the EU respectively. This is, largely, still the situation that exists today.
The Free Trade Agreements (FTAs) between the EEC and the remaining EFTA states led to a European free trade area but not yet, however, to anything close to what we know today to be internal market participation. As discussed earlier, this process was a lengthy one with a great deal of political reckoning on both sides and at times very difficult negotiations. It took another 20 years from the conclusion of the EEC-EFTA FTAs until the signing of the EEA Agreement.
In the process of coming to terms with having non-EEC/EC/EU member states participating in the EU's internal market, the EU had to develop some principles to, on the one hand, foster primarily economic integration in Europe while, on the other hand, maintaining and protecting the Community (or Union) of and amongst its member states.
These so-called ‘Interlaken Principles’ gained a wider publicity after a speech by the then European Commissioner for External Relations and Trade Policy, Willy de Clercq, at the ministerial meeting in Interlaken in 1987. These were, however, developed earlier as a follow-up to the 1984 Luxembourg Declaration on extending‘ Community-EFTA cooperation “with the aim of creating a dynamic European economic space of benefit to their countries”’. Cooperation should be guided by the following ‘four principles’:
1. ‘Community integration and the Community's independent powers of decision must under no circumstances be affected.
2. The elimination of technical barriers to trade and the simplification of administrative formalities at Community-EFTA frontiers are a logical extension of the Free Trade Agreements and should be pursued parallel to the progressive integration of the Community's internal market.
Foreword
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The European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. Set up in 1960 by the Stockholm Convention for the promotion of free trade and economic integration, it offered another form of ‘European integration’, different to the EU – more intergovernmental, less integrated and with the capacity to allow its states to negotiate their own trade agreements. It is, however, something of a Cinderella model, forgotten by states in the rush to join the EU and integrate ever more. The countries that were and, in part still are, members of EFTA are rather like-minded and may, historically and politically, be called ‘friends of the UK’ (from Portugal via Switzerland to Finland). The driving force behind the original EFTA model was the UK, determined to find another way of inter-state cooperation outside the EU. Given that EFTA covers many matters the UK might need in its future ‘life’ outside the EU but in Europe, a closer look at EFTA might be helpful. It is unlikely that the UK would rejoin EFTA, at least in the short to medium term, but it would be a way of ‘coming home’. A book analysing the EFTA Convention in depth has never been written before and there is no better person to write it than Dr Georges Baur, who worked for the EFTA secretariat for 15 years and whose deep familiarity with EFTA, the EEA and the EU means that he can provide deep insights into this subject. Now working in Liechtenstein, Georges has had the opportunity to reflect and consider the different models which he has worked with throughout his professional career, and this has helped to inform his rich legal analysis.
Annex K. Free Movement of Persons (Chapter VIII)
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BASIC PROVISIONS
ARTICLE 1
Objectives
The objectives of this Annex, for the benefit of nationals of the Member States, are:
(a) to accord a right of entry, residence, access to work as employed persons, establishment on a self-employed basis and the right to stay in the territory of the Member States;
(b) to facilitate the provision of services in the territory of the Member States, and in particular to liberalise the provision of services of brief duration;
(c) to accord a right of entry into, and residence in, the territory of the Member States to persons without an economic activity in the host State;
(d) to accord the same living, employment and working conditions as those accorded to nationals of the host State.
ARTICLE 2
Non-discrimination
Nationals of one Member State who are lawfully resident in the territory of another Member State shall not, in application of and in accordance with the provisions of Appendices 1, 2 and 3 to this Annex, be the subject of any discrimination on grounds of nationality.
ARTICLE 3
Right of entry
The right of entry of nationals of one Member State into the territory of another Member State shall be guaranteed in accordance with the provisions laid down in Appendix 1.
ARTICLE 4
Right of residence and access to an economic activity
The right of residence and access to an economic activity shall be guaranteed unless otherwise provided in Article 10 and in accordance with the provisions of Appendix 1.
ARTICLE 5
Persons providing services
1. Without prejudice to other specific agreements between the Member States specifically concerning the provision of services (including the Government Procurement Agreement in so far as it covers the provision of services), persons providing services, including companies in accordance with the provisions of Appendix 1, shall have the right to provide a service in the territory of another Member State for a period not exceeding 90 days’ of actual work in a calendar year.
2. Providers of services shall have the right of entry into, and residence in, the territory of the other Member State:
(a) where they have the right to provide a service under paragraph 1 or by virtue of the provisions of an agreement mentioned in paragraph 1;
Chapter 1 - What is EFTA?
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ONLY A CLASSICAL FREE TRADE AREA?
INTRODUCTION
European integration is very much about what kind of economic integration is intended between the states involved. Since the signing of the Treaty of Rome in 1957, the EU has moved through different stages: from the European Economic Community, to the European Communities and today's European Union. And although some goals were set from the beginning the next steps were seldom undisputed. If we now look further back, this dispute about what kind of economic integration should be favoured amongst the (then) Western European states, is the very reason why these split into those founding the EEC on the one hand and those who favoured a lighter structure and therefore set up EFTA, on the other. These different concepts are, however, not just of historical interest. They remain relevant in today's discussions, e.g. on what model of economic integration the UK should choose after Brexit or whether, in the case of Switzerland, a ‘comprehensive’ FTA could replace the current regime of sectoral access to the EU's internal market. In order to understand the differences between these approaches to European integration we will have to briefly examine the theory of economic integration. This will help us to better understand what is meant if these concepts are being used in national discussions.
STAGES OF ECONOMIC INTEGRATION
The theory of economic integration categorises the degree of economic integration into seven stages.
The basic form of economic cooperation is a preferential trade area or preferential trade agreement , if speaking of the instrument (PTA). It is a trading bloc or agreement that gives preferential access to certain of the participating countries ‘products. This is essentially done by reducing tariff s. These are, however, not abolished altogether. The line between a PTA and a free trade area (FTA) is not easy to draw and may be blurred. When concluding a PTA, the participating countries mostly aim at developing it into a FTA in accordance with the General Agreement on Tariff s and Trade (GATT). More generally, the term’ PTA ‘is also used to describe all types of economic integration since they all incorporate some degree of ‘preferred’ treatment. In particular, ‘PTA’ may also mean a Regional Trade Agreement (RTA).
The European Free Trade Association
- An Intergovernmental Platform for Trade Relations
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This book shall be an introduction into the European Free Trade Association (EFTA) as an international organization and, inter alia, as a platform for its member states' relations with the EU and for jointly negotiated Free Trade Agreements. EFTA - originally set up by the UK - is an example of how countries that do not want to be members of the EU can still have close links with it. EFTA is a loose intragovernmental association of some economically highly specialised, small and wealthy Western European small states which have, until now, decided not to join the European Union (EU). Essentially it is the platform for Iceland, Liechtenstein, Norway and Switzerland to coordinate their free trade policies as far as possible. Iceland, Liechtenstein and Norway also use EFTA, in particular its Secretariat, to manage their membership of the European Economic Area (EEA) and to adopt relevant legislation into the Agreement. Particularly in the context of Brexit it should also be noted that there are elements of the relations between the four EFTA States and the EU which are not necessarily based on either the EEA Agreement or the EU-Swiss Agreements. Until recently, EFTA was considered an outdated model. However, since Brexit interest in EFTA has increased. Where the subject was covered in the press, but also in relevant statements by politicians, there was hardly any distinction made between 'EFTA' and the 'EEA'. This book is not about Brexit, rather it will correct certain misconceptions about EFTA and provide a clear overview on what EFTA is: a platform for the economic relations between its member states; a platform for its member states' free trade policy and a platform for its member states' relations with the EU. There will be food for thought on the UK's future outside the EU.
Preface
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Summary
AIM OF BOOK AND DEFINITIONS
This short book aims to give the reader interested in European integration beyond the dimension of mere EU membership an insight into an alternative structure that has long been overlooked and ignored. If some knew of it, then it was considered by many an outdated model and, to put it bluntly, a loose association of some economically highly specialised, small and wealthy Western European states. However, the European Free Trade Association (EFTA) was once conceived as an alternative model under the United Kingdom's leadership to the then European Economic Community (EEC), now European Union (EU).
The lost interest in EFTA can also be shown by the (academic) writing undertaken on that subject. In the early days there were quite noteworthy publications on EFTA and the economic policy it represented. Interest in the subject diminished when the UK joined the EEC. There was, however, still some academic literature produced on EFTA, notably on the free trade agreements between the EU and the EFTA states, although not much in English. Then, after the inception of the European Economic Area (EEA), the interest of academia remained with that form of European integration, if at all. Most of the academic contributions dealing with EFTA either came from the EFTA Secretariat or the EFTA states themselves, or these were needed as an introduction to the EEA. One unfortunate consequence of this is ‘that the political scientists [and other academics, G.B.], who see the “European Integration” as a synonymous with the history of the EU and its current performance, lose many opportunities for comparative research’.
As shown by a quick look at the press, interest in EFTA has increased since the referendum of 23 June 2016, in which a slim majority of UK voters expressed their wish to leave the European Union. Since the very beginning of the reporting on the so-called ‘Brexit’, hardly any distinction has been made between EFTA and the EEA.
In this book, various aspects related to EFTA will be examined in greater detail. Brexit will serve as an opportunity to introduce the subject, and there will be a chapter dealing with the question whether EFTA could be of interest to the United Kingdom (UK) when it acquires its new status outside the EU.