Agreement between the EU and Denmark and the Faroe Islands

 

SUMMARY OF:

Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part

Decision 97/126/EC concerning the conclusion of an agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part

WHAT IS THE AIM OF THE AGREEMENT AND THE DECISION?

The main aims are to:

• promote the expansion of reciprocal trade;
• foster economic activity;
• improve living and employment conditions;
• increase productivity and financial stability;
• provide fair conditions for trade competition;
• contribute to the removal of trade barriers and encourage the harmonious development and expansion of world trade.

Decision 97/126/EC gives the European Community’s (now the European Union – EU) approval to the agreement.

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.

DATE OF ENTRY INTO FORCE

The agreement entered into force on 1 January 1997.

BACKGROUND

The EU is the Faroes’ largest trading partner. The islands are included in the EU’s Arctic policy, where the EU is committed to investing in the future of people living in the area, and stimulating better education, sustainable growth and jobs.

For further information, see:

• Faroe Islands (European Commission).

MAIN DOCUMENTS

Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part (OJ L 53, 22.2.1997, pp. 2–135).

Successive amendments to the agreement have been incorporated into the original text. This consolidated version is of documentary value only.

Council Decision 97/126/EC of 6 December 1996 concerning the conclusion of an agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part (OJ L 53, 22.2.1997, p. 1).

See consolidated version.

last update 17.02.2023