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PART IU.K. OBJECTIVES AND PRINCIPLES

Article 1U.K.

1.The aim of this Agreement of association is to promote a continuous and balanced strengthening of trade and economic relations between the Contracting Parties with equal conditions of competition, and the respect of the same rules, with a view to creating a homogeneous European Economic Area, hereinafter referred to as the EEA.

2.In order to attain the objectives set out in paragraph 1, the association shall entail, in accordance with the provisions of this Agreement:

(a)the free movement of goods;

(b)the free movement of persons;

(c)the free movement of services;

(d)the free movement of capital;

(e)the setting up of a system ensuring that competition is not distorted and that the rules thereon are equally respected; as well as

(f)closer cooperation in other fields, such as research and development, the environment, education and social policy.

Article 2U.K.

For the purposes of this Agreement:

(a)

the term ‘Agreement’ means the main Agreement, its Protocols and Annexes as well as the acts referred to therein;

(b)

[F1the term EFTA States means [F2the] [F2Republic of] Iceland, the Principality of Liechtenstein and the Kingdom of Norway;]

(c)

the term ‘Contracting Parties’ means, concerning the Community and the EC Member States, the Community and the EC Member States, or the Community, or the EC Member States. The meaning to be attributed to this expression in each case is to be deduced from the relevant provisions of this Agreement and from the respective competences of the Community and the EC Member States as they follow from the Treaty establishing the European Economic Community [F3and the Treaty establishing the European Coal and Steel Community] [F1;]

(d)

[F4the term Act of Accession of 16 April 2003 shall mean the Act concerning the conditions of Accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded, adopted in Athens on 16 April 2003 [F5;] ]

(e)

[F6the term Act of Accession of 25 April 2005 shall mean the Act concerning the conditions of accession of the Republic of Bulgaria and Romania and the adjustments to the Treaties on which the European Union is founded, adopted in Luxembourg on 25 April 2005 ;]

(f)

[F7. . . . .]

(f)

[F8the term Act of Accession of 9 December 2011 shall mean the Act concerning the conditions of accession of the Republic of Croatia and the adjustments to the Treaty on European Union, the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community, signed at Brussels on 9 December 2011 .]

Textual Amendments

Article 3U.K.

The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure fulfilment of the obligations arising out of this Agreement.

They shall abstain from any measure which could jeopardize the attainment of the objectives of this Agreement,

Moreover, they shall facilitate cooperation within the framework of this Agreement.

Article 4U.K.

Within the scope of application of this Agreement, and without prejudice to any special provisions contained therein, any discrimination on grounds of nationality shall be prohibited.

Article 5U.K.

A Contracting Party may at any time raise a matter of concern at the level of the EEA Joint Committee or the EEA Council according to the modalities laid down in Articles 92(2) and 89(2), respectively.

Article 6U.K.

Without prejudice to future developments of case-law, the provisions of this Agreement, in so far as they are identical in substance to corresponding rules of the Treaty establishing the European Economic Community and the Treaty establishing the European Coal and Steel Community and to acts adopted in application of these two Treaties, shall, in their implementation and application, be interpreted in conformity with the relevant rulings of the Court of Justice of the European Communities given prior to the date of signature of this Agreement.

Article 7U.K.

Acts referred to or contained in the Annexes to this Agreement or in decisions of the EEA Joint Committee shall be binding upon the Contracting Parties and be, or be made, part of their internal legal order as follows:

(a)

an act corresponding to an EEC regulation shall as such be made part of the internal legal order of the Contracting Parties;

(b)

an act corresponding to an EEC directive shall leave to the authorities of the Contracting Parties the choice of form and method of implementation.