GENERAL NOTES AND DEROGATIONS FROM THE PROVISIONS OF ARTICLE III

1.         Iceland will not extend the benefits of this Agreement:

            -           as regards the award of contracts by entities listed in Annex 2 to the suppliers and service providers of Canada;

            -           as regards the award of contracts, other than for supplies, listed in Annex 2 to the suppliers and service providers of the USA;

            - as regards the award of contracts by entities listed in Annex 3 paragraph

(1)        (electricity), to the suppliers and service providers of Canada, Singapore and Japan;

(2)        (urban transport), to the suppliers and service providers of Canada,  Japan, Korea and the USA;

(3)        (airports), to the suppliers and service providers of Canada, Korea and the USA;

(4)  (ports), to the suppliers and service providers of Canada;

(5)        (water), to the suppliers and service providers of Canada and the USA;

until such time as Iceland has accepted that the Parties concerned give comparable and effective access for Icelandic undertakings to the relevant markets;

-           to service providers of Parties which do not include the relevant service contracts for the relevant entities in Annexes 1 to 3 and the relevant service category under Annexes 4 and 5 in their own coverage.

2.         The provisions of Article XX shall not apply to suppliers and service providers of:

            -           Japan and Korea in contesting the award of contracts by entities listed under Annex 2, paragraph 2, until such time as Iceland accepts that they have completed coverage of sub-central entities;

            -           Japan and Korea in contesting the award of contracts to a supplier or service provider of Parties other than those mentioned, which are small or medium-sized enterprises under the relevant provisions in Iceland, until such time as Iceland accepts that they no longer operate discriminatory measures in favour of certain domestic small and minority businesses;

            -           Israel, Japan and Korea in contesting the award of contracts by Icelandic entities, whose value is less than the threshold applied for the same category of contracts awarded by these Parties.

3.         Until such time as Iceland has accepted that the Parties concerned provide access for Icelandic suppliers and service providers to their own markets, Iceland will not extend the benefits of this Agreement to suppliers and service providers of:

            -          Canada as regards procurement of FSC 58 (communications, protection and coherent radiation equipment) and the USA as regards air traffic control equipment;

            -           Israel and Korea as regards procurement by entities listed in Annex 3, paragraph 1, as regards procurement of HS Nos 8504, 8535, 8537 and 8544 (electrical transformers, plugs, switches and insulated cables); and for Israel, HS Nos 8501, 8536 and 902830;

            -           Canada and the USA as regards contracts for good or service components of contracts which, although awarded by an entity covered by this Agreement, are not themselves subject to this Agreement.

4.         Contracts awarded by entities in Annexes 1 and 2 in connection with activities in the fields of drinking water, energy, transport or telecommunications, are not included.

5.         With regard to Annex 3, this Agreement shall not apply to the following contracts:

            -           contracts which the contracting entities under paragraph 5 award for the purchase of water;

            -           contracts which the contracting entities under paragraph 1 award for the supply of energy or of fuels for the production of energy;

            -           contracts which the contracting entities award for purposes other than the pursuit of their activities as described in this Annex or for the pursuit of such activities in a non‑EEA country;

            -           contracts awarded for purposes of re-sale or hire to third parties provided that the contracting entity enjoys no special or exclusive right to sell or hire the subject of such contracts and that other entities are free to sell or hire it under the same conditions as the contracting entity;

            -           contracting entities exercising activities in the bus transportation sector where other entities are free to offer the same services in the same geographical area and under substantially the same conditions.

6.         With regard to Annex 4, this Agreement shall not apply to the following:

            -           contracts for the acquisition or rental, by whatever financial means, of land, existing buildings, or other immovable property or concerning rights thereon;

            -           contracts for the acquisition, development, production or co-production of programme material by broadcasters and contracts for broadcasting time;

            -           contracts awarded to an entity which is itself a contracting authority within the meaning of the Public Procurement Act: "Lög um opinber innkaup (52/1997) and Regulation (302/1996) on the basis of an exclusive right which it enjoys pursuant to a published law, regulation or administrative provision;

            - contracts of employment.

7.         The Agreement shall not apply to contracts awarded under:

            -           an international agreement and intended for the joint implementation or exploitation of a project by the signatory States;

            - an international agreement relating to the stationing of troops;

            - the particular procedure of an international organization.

8.         The Agreement shall not apply to procurement of agricultural products made in furtherance of agricultural support programmes and human feeding programmes.