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(a)the operation of any relevant enactment is limited (expressly or by implication) by reference to the Communities or by reference to some connection with the Communities, and
(b)the enactment relates to a matter to which the Agreement (as it has effect on the date on which it comes into force) relates,
then, unless the context otherwise requires, the enactment shall have effect on and after that date in relation to that matter with the substitution of a corresponding limitation relating to the European Economic Area (or, where appropriate, to both the Communities and the European Economic Area).
(2)Subsection (1) above shall have effect—
(a)subject to the Schedule to this Act, and
(b)subject to such exceptions and modifications as may be prescribed by regulations made by a Minister of the Crown.
(3)Subsection (1) above shall not be regarded—
(a)as having an effect which is inconsistent with the operation, by virtue of the Agreement, of section 2(1) of the 1972 Act, or
(b)as prejudicing any power to make provision for the purpose of implementing any obligation of the United Kingdom created or arising by or under the Agreement, or for any other purpose mentioned in section 2(2)(a) or (b) of the 1972 Act relating to the Agreement;
and any instrument made for such a purpose under section 2(2) of the 1972 Act or under any other enactment may exclude the operation of subsection (1) above.
(4)In relation to matters to which the Agreement (as it has effect on the date on which it comes into force or subsequently) relates, the powers conferred by section 2(2) of the 1972 Act shall include power to make provision for the elimination or reduction of any difference between—
(a)the application of any relevant enactment in cases having a connection with member States, and
(b)its application in cases having a connection with other States within the European Economic Area;
and paragraph 1(1)(a), (c) and (d) of Schedule 2 to the 1972 Act shall not apply to the powers conferred by section 2(2) of that Act so far as they are exercisable by virtue of this subsection.
(5)In relation to matters to which the Agreement (as it has effect on the date on which it comes into force or subsequently) relates, the powers conferred by section 2(2) of the 1972 Act shall include power to make provision for the avoidance, elimination or reduction of any difference between—
(a)the application of an instrument made under that section on or after the date on which the Agreement comes into force in cases having a connection with member States, and
(b)its application in cases having a connection with other States within the European Economic Area.
(6)The provision that may be made by virtue of subsection (4) above includes provision amending the Schedule to this Act.
(7)In this section (and in the Schedule to this Act) “relevant enactment” means a provision of an Act passed, or of any subordinate legislation made, before the date on which the Agreement comes into force.
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