Faroe Islands Trade Agreement

In trade between the EU and the Faroe Islands, no new charges having equivalent effect to customs duties should be introduced. Taxes having equivalent effect on trade between the EU and the Faroe Islands should be abolished. There are provisions on the application of Community competition law as regards illegal agreements, abuse of position and State aid. The EU Free Trade Agreement on the Faroe Islands applies to products in Chapters 25 to 97 (non-agricultural) of the Harmonised Classification System, with exceptions. It is not a question of introducing new import duties into trade between the EU and the Faroe Islands. The current Free Trade Agreement concluded in 1997 between the Faroe Islands and the Economic Community has a large volume of products with regard to Faroese exports. It also gives the COMMUNITY duty-free access to all exports to the Faroe Islands market. The 1997 Trade Agreement is one of the most recent texts: a revised Protocol I to the Agreement on Market Access for Fishery Products and a Veterinary Protocol concluded between the Parties in 2001. The veterinary protocol is available in the legal texts. The revised Protocol I lifted most restrictions on the duty-free import of fish and goods from the Faroe Islands into the EU. However, significant export restrictions remain in place.

However, the revision of the trade agreement has brought it more into line with WTO rules. The revised Protocol I (1998) is contained in the legal texts. The Agreement shall not preclude prohibitions or restrictions on import, export or transit justified by the granting of public morality, the law and order of public security for the protection of the life and health of human beings, animals or plants, for the protection of the national cultural heritage of historical or artistic archaeological value, for the protection of industrial and commercial property or by rules relating to gold and silver. Such measures must not constitute arbitrary discrimination or disguised restriction and trade between the parties. The Parties shall refrain from any measure or practice of an internal fiscal nature which discriminates, directly or indirectly, between goods and one Party and like goods from the territory of the other Party. . . .