Standing Committee of the EFTA States

The Internal Market aims to ensure that goods can move freely across the borders of all 31 countries in the EEA on the basis of equal conditions of competition. Buyers and sellers of goods do not have to pay customs duties when trading in most products. Prior to the Internal Market, there were many different national technical regulations and standards, which stipulated that products needed to be manufactured and tested in specific ways or that the products had to have certain properties. Through mutual recognition or harmonisation of national technical standards, and through mutual recognition of testing procedures, these technical barriers to trade are being removed.

Subcommittee I under the EFTA Standing Committee prepares for the integration into the EEA Agreement of legislation relating to the free movement of goods, competition, state aid, public procurement and energy. Subcommittee I is assisted by 11 working groups, 24 expert groups and four ad hoc groups.

A substantial part of the legislation incorporated into the EEA Agreement concerns the free movement of goods. The objective of this legislation is to ensure the free circulation of products and secure a high level of protection of health, safety and the environment. The rules on competition, state aid and public procurement apply to trade in services as well as goods, and ensure a fair and efficient market.

Read more about the policy areas dealt with by Subcommittee I in the Goods section.

The free movement of capital is a prerequisite for the free movement of services. The EEA Agreement provides a comprehensive and non-discriminatory framework for capital transfers, cross-border investments (whether direct or indirect) and loans. The aim is to eliminate exchange controls that affect capital transfers directly, as well as other indirect barriers to capital movements.

Domestic rules on capital movements apply equally to foreign and national residents in any one country. Investors and others who transfer capital frequently between countries enjoy consistent treatment. This, in the long term, leads to better allocation of resources and capital.

Under certain circumstances the signatories of the EEA Agreement are allowed to restrict the free movement of capital, for example when free capital transfers threaten the balance of payments or the domestic capital market in general. Under such exceptional circumstances national authorities may take preventive measures after discussing them with the other EEA countries.

The ability to provide a service in a Member State of the EEA should not be restricted on the basis of nationality. The free movement of services is closely linked to the free movement of people and the right of establishment. Services also play an important role in many stages of the production of goods. Freeing the movement of services is taking time due to the many legal and non-legal barriers restraining the provision of services across national borders.

Subcommittee II on the Free Movement of Capital and Services under the EFTA Standing Committee coordinates matters of financial services, transport, information and telecommunications services, audiovisual services, postal services and company law, as well as data protection. In addition, the Ad Hoc Working Group on Services in the Internal Market reports to Subcommittees II, III and IV.

Read more about the policy areas dealt with by Subcommittee II in the Services and Capital sections.

The free movement of persons is a fundamental right in the European Internal Market, and gives citizens of the 30 EEA countries the opportunity to live, work, establish business and study in any of these countries. EU legislation in this field aims at eliminating all obstacles to the freedom of movement and to give workers, self-employed people, students, pensioners and their family members the same rights within the European Economic Area by eliminating any discrimination on the basis of nationality.

Subcommittee III on the Free Movement of Persons under the Standing Committee of the EFTA States coordinates matters related to all aspects of the movement of people, including the mutual recognition of diplomas and social security. Two of the working groups (Free Movement of Workers and Employment and Social Security), together with the three related working groups under Subcommittee IV, prepared for the participation of the EEA EFTA States in the EU Programme for Employment and Solidarity - Progress - for the period 2007 to 2013.

Read more about the policy areas dealt with by Subcommittee III in the Persons section.

Subcommittee IV on Flanking and Horizontal Policies under the Standing Committee of the EFTA States coordinates matters related to all aspects of the horizontal provisions of the EEA Agreement, as well as cooperation outside the four freedoms. 15 working groups report to Subcommittee IV. Subcommittee IV worked actively towards ensuring EEA EFTA participation as early as possible whenever new and successive programmes are adopted by the EU. In 2007, four working groups prepared for EEA EFTA participation in the Competitiveness and Innovation Programme (CIP) for the period 2007 to 2013. This work was coordinated by the Working Group on Enterprise Policy in cooperation with the Working Groups on Information and Telecommunication Services (SC II), Environment, Research and Energy Matters (SC I).

Three working groups (on the Disabled, the Elderly and Social Exclusion, Gender Equality and Family Policy and Health and Safety at Work and Labour Law) discussed the possible participation of the EEA EFTA States in the PROGRESS Programme with the two related Working Groups under Subcommittee III.

Read more about the policy areas dealt with by Subcommittee IV in the Flanking and Horizontal section.

Subcommittee V on Legal and Institutional Matters assists the Standing Committee of the EFTA States in horizontal and substantive legal and institutional issues relating to the EEA Agreement. It is composed of representatives from the EEA EFTA States, who meet regularly to discuss issues on the Subcommittee's own motion, or upon request by Subcommittees I to IV or the Standing Committee.  One ad hoc working group reports to the Subcommittee.