Agreement between the EU and Denmark and the Faroe Islands

KEY POINTS

The agreement:

• covers all items in Chapters 25–97 of the World Customs Organization’s Harmonized System;
• abolishes customs duties, quantitative restrictions and charges or measures of equivalent effect between the Faroes and the EU;
• provides for specific tariff treatment and arrangements for items listed in its protocols 1 (fish and fishery products), 2 (processed agricultural products) and 4 (certain agricultural products).

Protocol 3 defines the concept of originating products and administrative cooperation arrangements.

Protocol 5 covers mutual assistance between administrative authorities on customs matters.

The Faroes and the EU agree to:

• foster harmonious trade in agricultural products;
• not discriminate through veterinary, health and plant rules;
• grant each other most-favoured-nation treatment under the 1994 GATT (General Agreement on Tariffs and Trade, now part of the World Trade Organization Agreement);
• avoid internal taxes that discriminate against the other’s products;
• allow bans or restrictions on imports, exports or goods in transit to protect:
  • public morality, law and order or public security,
  • life and health of humans, animals and plants,
  • national treasures of artistic, historic or archaeological value,
  • industrial and commercial property,
  • rules on gold and silver;
• permit measures considered necessary to prevent the disclosure of information contrary to either party’s essential security interests;
• outlaw:
  • all agreements and concerted practices designed to prevent, restrict or distort competition in the production or trade in goods,
  • abuses of a company’s dominant position,
  • public aid distorting competition;
• allow either party to take appropriate action if an increase in imports could badly damage its own production or if economic difficulties, such as a balance of payments problem, could seriously damage a region.

The EU agrees to consider Faroese requests to improve access for specific products or to extend tariff concessions to new fish species or fishery products.

The agreement establishes a joint committee with Faroese and EU representatives to:

• administer the agreement and ensure its proper implementation;
• make recommendations and take decisions;
• act as a forum for consultation and exchange of information.

Either party may end the agreement by notifying the other. It would end 12 months after the notification.