Article 31. Context and Objectives

1. The Parties recall the Stockholm Declaration on the Human Environment of 1972, the Rio Declaration on Environment and Development of 1992, Agenda 21 on Environment and Development of 1992, the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up of 1998, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006 and the ILO Declaration on Social Justice for a Fair Globalization of 2008.

2. The Parties recognise that economic development, social development and environmental protection are interdependent and mutually supportive components of sustainable development. They underline the benefit of cooperation on trade-related labour and environmental issues as part of a global approach to trade and sustainable development.

3. The Parties reaffirm their commitment to promote the development of international trade in such a way as to contribute to the objective of sustainable development and to ensure that this objective is integrated and reflected in the Parties' trade relationship.

Article 32. Scope

Except as otherwise provided in this Chapter, this Chapter applies to measures adopted or maintained by the Parties affecting trade-related and investment-related aspects of labour (5) and environmental issues.

Article 33. Right to Regulate and Levels of Protection

1. Recognising the right of each Party, subject to the provisions of this Agreement, to establish its own level of environmental and labour protection, and to adopt or modify accordingly its relevant laws and policies, each Party shall seek to ensure that its laws, policies and practices provide for and encourage high levels of environmental and labour protection, consistent with standards, principles and agreements referred to in Articles 35 and 36, and shall strive to further improve the level of protection provided for in those laws and policies.

2. The Parties recognise the importance, when preparing and implementing measures related to the environment and labour conditions that affect trade and investment between them, of taking account of scientific, technical and other information, and relevant international standards, guidelines and recommendations.

Article 34. Upholding Levels of Protection In the Application and Enforcement of Laws, Regulations or Standards

1. A Party shall not fail to effectively enforce its environmental and labour laws, regulations or standards in a manner affecting trade or investment between the Parties.

2. Subject to Article 33, a Party shall not:

(a) Weaken or reduce the level of environmental or labour protection provided by its laws, regulations or standards with the sole intention to encourage investment from another Party or to seek or to enhance a competitive trade advantage of producers or service providers operating in its territory; or

(b) Waive or otherwise derogate from, or offer to waive or otherwise derogate from, such laws, regulations or standards in order to encourage investment from another Party or to seek or to enhance a competitive trade advantage of producers or service providers operating in its territory.

Article 35. International Labour Standards and Agreements

1. The Parties recall the obligations deriving from membership of the ILO and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up adopted by the International Labour Conference at its 86th Session in 1998, to respect, promote and realise the principles concerning the fundamental rights, namely:

(a) The freedom of association and the effective recognition of the right to collective bargaining;

(b) The elimination of all forms of forced or compulsory labour;

(c) The effective abolition of child labour; and

(d) The elimination of discrimination in respect of employment and occupation.

2. The Parties reaffirm their commitment, under the Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work of 2006, to recognising full and productive employment and decent work for all as a key element of sustainable development for all countries and as a priority objective of international cooperation and to promoting the development of international trade in a way that is conducive to full and productive employment and decent work for all.

3. The Parties recall the obligations deriving from membership of the ILO to effectively implementing the ILO Conventions which they have ratified and to make continued and sustained efforts towards ratifying the fundamental ILO Conventions as well as the other Conventions that are classified as "up-to-date" by the ILO.

4. The violation of fundamental principles and rights at work shall not be invoked or otherwise used as a legitimate comparative advantage. Labour standards shall not be used for protectionist trade purposes.

Article 36. Multilateral Environmental Agreements and Environmental Principles

The Parties reaffirm their commitment to the effective implementation in their laws and practices of the multilateral environmental agreements to which they are a party, as well as their adherence to environmental principles reflected in the international instruments referred to in Article 31.

Article 37. Promotion of Trade and Investment Favouring Sustainable Development

1. The Parties shall strive to facilitate and promote foreign investment, trade in and dissemination of goods and services beneficial to the environment, including environmental technologies, sustainable renewable energy, energy efficient and eco-labelled goods and services, including through addressing related non-tariff barriers.

2. The Parties shall strive to facilitate and promote foreign investment, trade in and dissemination of goods and services that contribute to sustainable development, including goods and services that are the subject of schemes such as fair and ethical trade.

3. To this end, the Parties agree to exchange views and may consider, jointly or bilaterally, cooperation in this area.

4. The Parties shall encourage cooperation between enterprises in relation to goods, services and technologies that contribute to sustainable development and are beneficial to the environment.

Article 38. Cooperation In International Fora

The Parties shall strive to strengthen their cooperation on trade and investment related labour and environmental issues of mutual interest in relevant bilateral, regional and multilateral fora in which they participate.

Article 39. Implementation and Consultations

1. The Parties shall designate the administrative entities which shall serve as contact point(s) for the purpose of implementing this Chapter.

2. A Party may through the contact point(s) referred to in paragraph 1 request expert consultations or consultations within the Joint Committee regarding any matter arising under this Chapter. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the matter. Where relevant, subject to the agreement of the Parties, they can seek advice of the relevant international organisations or bodies.

3. If a Party considers that a measure of another Party does not comply with the obligations under this Chapter, it may have recourse to consultations according to Article 42, except for the last sentence of paragraph 3.

Article 40. Review

The Parties shall periodically review in the Joint Committee progress achieved in pursuing the objectives set out in this Chapter, and consider relevant international developments to identify areas where further action could promote these objectives.

Chapter 7. Institutional Provisions

Article 41. The Joint Committee

1. The Parties hereby establish the Albania-EFTA Joint Committee. It shall be composed of representatives of the Parties, which shall be headed by Ministers or by senior officials delegated by them for this purpose.

2. The Joint Committee shall:

(a) Supervise and review the implementation of this Agreement, inter alia by means of a comprehensive review of the application of the provisions of this Agreement, with due regard to any specific reviews contained in this Agreement;

(b) Keep under review the possibility of further removal of barriers to trade and other restrictive measures concerning trade between Albania and the EFTA States;

(c) Oversee the further development of this Agreement;

(d) Supervise the work of all sub-committees and working groups established under this Agreement;

(e) Endeavour to resolve disputes that may arise regarding the interpretation or application of this Agreement;

(f) Oversee the implementation of Article 5; and

(g) Consider any other matter that may affect the operation of this Agreement.

3. The Joint Committee may decide to set up such sub-committees and working groups as it considers necessary to assist it in accomplishing its tasks. Except where otherwise provided for in this Agreement, the sub-committees and working groups shall work under a mandate established by the Joint Committee.

4. The Joint Committee shall take decisions as provided for in this Agreement, and may make recommendations, by consensus.

5. The Joint Committee shall meet within one year of the entry into force of this Agreement. Thereafter, it shall meet whenever necessary upon mutual agreement but normally every two years. Its meetings shall be chaired jointly by Albania and one of the EFTA States. The Joint Committee shall establish its rules of procedure.

6. Each Party may request at any time, through a notice in writing to the other Parties, that a special meeting of the Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the request, unless the Parties agree otherwise.

7. The Joint Committee may decide to amend the Annexes and Protocols to this Agreement. Subject to paragraph 8, it may set a date for the entry into force of such decisions.

8. If a representative of a Party in the Joint Committee has accepted a decision subject to the fulfilment of constitutional requirements, the decision shall enter into force on the date that the last Party notifies that its internal requirements have been fulfilled, unless the decision itself specifies a later date. The Joint Committee may decide that the decision shall enter into force for those Parties that have fulfilled their internal requirements, provided that Albania is one of those Parties. A Party may apply a decision of the Joint Committee provisionally until such decision enters into force for that Party, subject to its constitutional requirements.

Chapter 8. Dispute Settlement

Article 42. Consultations

1. In case of any divergence with respect to the interpretation, implementation and application of this Agreement, the Parties shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory solution.

2. Any Party may request in writing consultations with any other Party regarding any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement. The Party requesting consultations shall at the same time notify the other Parties in writing thereof and supply all relevant information.

3. The consultations shall take place in the Joint Committee if any of the Parties so requests within 20 days from the receipt of the notification referred to in paragraph 2, with a view to finding a commonly acceptable solution. If the Party to which a request in accordance with paragraph 2 or this paragraph is made does not reply within ten days or does not enter into consultations within 20 days after receipt of the request, the Party making the request is entitled to request the establishment of an arbitration panel in accordance with Article 33. （6）

Article 43. Arbitration

1. Disputes between the Parties relating to the interpretation of rights and obligations under this Agreement, which have not been settled through direct consultations or in the Joint Committee within 60 days from the date of the receipt of the request for consultations, may be referred to arbitration by the complaining Party by means of a written notification addressed to the Party complained against. A copy of this notification shall be communicated to all other Parties so that each of those Parties may determine whether to participate in the dispute.

2. Where more than one Party requests the establishment of an arbitration panel relating to the same matter, a single arbitration panel may, whenever feasible, be established to consider such disputes. 1

3. A Party that is not a party to the dispute shall be entitled, on delivery of a written request to the parties to the dispute, to make written submissions to the arbitration panel, receive written submissions, including annexes, from the parties to the dispute, attend hearings and make oral statements.

4. The arbitration panel shall comprise three members. In its written notification pursuant to paragraph 1 of this Article the Party referring the dispute to arbitration shall designate one member, who may be its national or resident. Within 30 days from the receipt of the notification referred to in paragraph 1 of this Article, the Party to which it was addressed shall, in turn, designate one member, who may be its national or resident.

5. Within 60 days from the receipt of the notification referred to in paragraph 1 of this Article, the two members already designated shall agree on the designation of a third member. The third member shall not be a national of either party to the dispute, nor permanently reside on the territory of either party to the dispute. The member thus appointed shall be the President of the arbitration panel.

6. If all three members have not been designated or appointed within 60 days from the receipt of the notification referred to in paragraph 1, either party to the dispute may request the Secretary–General of the Permanent Court of Arbitration at the Hague to designate an appointing authority.

7. The arbitration panel shall examine the matter referred to it in the request for the establishment of an arbitration panel in light of the provisions of this Agreement applied and interpreted in accordance with the rules of interpretation of public international law. The award of the arbitration panel shall be final and binding upon the parties to the dispute.

8. Unless otherwise specified in this Agreement or agreed between the parties to the dispute, the Optional Rules for Arbitrating Disputes between Two States of the Permanent Court of Arbitration (PCA), effective 20 October 1992, shall apply.

Article 44. Implementation of the Award

1. The Party concerned shall promptly comply with the award of the arbitration panel. If it is impracticable to comply immediately, the parties to the dispute shall endeavour to agree on a reasonable period of time to do so. In the absence of such agreement within 30 days from the date of the award, either party to the dispute may, within 10 days from the expiration of such period, request the original arbitration panel to determine the length of the reasonable period of time.

2. The Party concerned shall notify the other party to the dispute of the measure adopted in order to implement the award.

3. If the Party concerned fails to comply with the award within a reasonable period of time and the parties to the dispute have not agreed on any compensation, the other party to the dispute may, until the award has been properly implemented or the dispute has been otherwise resolved, and subject to a prior notification of 30 days, suspend the application of benefits granted under this Agreement, but only equivalent to those affected by the measure that the arbitration panel has found to violate this Agreement.

4. Any dispute regarding the implementation of the award or the notified suspension shall be decided by the arbitration panel upon request of either party to the dispute before compensation can be sought or suspension of benefits can be applied. The arbitration panel may also rule on the conformity with the award of any implementing measures adopted after the suspension of benefits and whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel under this paragraph shall normally be given within 45 days from the date of receipt of the request.

Chapter 9. Final Provisions

Article 45. Fulfilment of Obligations

The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement.

Article 46. Annexes and Protocols

The Annexes and Protocols to this Agreement, including their Appendices, are an integral part of this Agreement.

Article 47. Evolutionary Clause

1. The Parties undertake to review this Agreement in light of further developments in international economic relations, inter alia, in the framework of the WTO, and to examine in this context and in light of any relevant factor the possibility of further developing and deepening their co-operation under this Agreement and to extend it to areas not covered therein. The Joint Committee may examine this possibility and, where appropriate, make recommendations to the Parties, particularly with a view to opening up negotiations.

2. Agreements resulting from the procedure referred to in paragraph 1 shall be subject to ratification, acceptance or approval by the Parties in accordance with their own procedures.

Article 48. Amendments

1. The Parties may agree on any amendment to this Agreement. Unless otherwise agreed by the Parties, amendments shall enter into force on the first day of the third month following the deposit of the last instrument of ratification, acceptance or approval.

2. The text of the amendments as well as the instruments of ratification, acceptance or approval shall be deposited with the Depositary.

Article 49. Relation to other International Agreements

1. The provisions of this Agreement shall be without prejudice to the rights and obligations of the Parties under the WTO Agreement and the other agreements negotiated thereunder, to which they are a party, and any other international agreement, to which they are a party.

2. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas, arrangements for frontier trade and other preferential agreements insofar as they do not have the effect of altering the trade arrangements provided for in this Agreement.

3. When a Party enters into a customs union or free trade agreement with a third party it shall, upon request by any other Party, be prepared to enter into consultations with the requesting Party.

Article 50. Accession

1. Any State, becoming a Member of the European Free Trade Association may accede to this Agreement, provided that the Joint Committee approves its accession, on terms and conditions to be agreed upon by the Parties. The instrument of accession shall be deposited with the Depositary.

2. In relation to an acceding State, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument of accession, or the approval of the terms of accession by the existing Parties, whichever is later.

Article 51. Withdrawal and Expiration

1. Each Party may withdraw from this Agreement by means of a written notification to the Depositary. The withdrawal shall take effect six months after the date on which the notification is received by the Depositary.

2. If Albania withdraws, this Agreement shall expire when its withdrawal becomes effective.

3. Any EFTA State which withdraws from the Convention establishing the European Free Trade Association shall, ipso facto on the same day as the withdrawal takes effect, cease to be a Party to this Agreement.

Article 52. Entry Into Force

1. This Agreement is subject to ratification, acceptance or approval in accordance with the respective constitutional requirements of the Parties. The instruments of ratification, acceptance or approval shall be deposited with the Depositary.

2. This Agreement shall enter into force on 1 April 2010 in relation to those Parties which have deposited their instruments of ratification, acceptance or approval, or notified provisional application to the Depositary, at least two months before that date, and provided that Albania is among those Parties.

3. In case this Agreement does not enter into force on 1 April 2010 it shall enter into force on the first day of the third month after Albania and at least one EFTA State have deposited their instruments of ratification, acceptance or approval, or notified provisional application to the Depositary.

4. In relation to an EFTA State depositing its instrument of ratification, acceptance or approval after this Agreement has entered into force, this Agreement shall enter into force on the first day of the third month following the deposit of its instrument of ratification, acceptance or approval.

5. If its constitutional requirements permit, Albania or any EFTA State may apply this Agreement provisionally pending ratification, acceptance or approval by that Party. Provisional application of this Agreement shall be notified to the Depositary.

6. This Agreement shall not enter into force or be applied provisionally between Albania and an EFTA State unless the complementary agreement on trade in agricultural products between Albania and that EFTA State enters into force or is applied provisionally simultaneously. It shall remain in force between Albania and that EFTA State as long as the complementary agreement remains in force between them.

Article 53. Depositary

The Government of Norway shall act as Depositary.

Conclusion

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

Done at Geneva, this 17th day of December 2009, in one original. The Depositary shall transmit certified copies to all the Parties.

For the Republic of Albania

For Iceland

For the Principality of Liechtenstein

For the Kingdom of Norway

For the Swiss Confederation