An independent surveillance authority between the EFTA States, the EFTA Surveillance Authority, is hereby established. A Court of Justice of the EFTA States, hereinafter referred to as `the EFTA Court of Justice`, is hereby established. It shall operate in accordance with the provisions of this Agreement and the EEA Agreement. In most of its cases, the EFTA Court of Justice has been confronted with legal issues that have not been decided (or at least not entirely) by the ECJ. The EEA Agreement does not contain any written provisions that would oblige the Court of Justice to take into account the case-law of the EFTA Court of Justice in the interpretation of EU or EEA law. However, in practice, the two EU courts (ECJ and CEC) have referred to the case-law of the EFTA Court of Justice. As regards the interpretation of EEA law, the EU Courts have referred to judgments of the EFTA Court of Justice concerning the legal nature of the EEA Agreement, the principle of State responsibility under EEA law, the free movement of goods and the freedom of establishment. No judge may participate in the decision of a case in which he has previously participated as an agent or adviser, or in which he has worked for either party, or in which he has been called upon to rule as a member of a tribunal, commission of inquiry or other functions. If, for a particular reason, a judge considers that he should not participate in the decision or examination of a given case, he shall inform the President of the Court of Justice accordingly. If, for any reason, the President considers that a judge should not sit in a particular case, he shall so state. Any difficulties arising from the application of this Article shall be settled in accordance with Article 30(4) of this Agreement. If, pursuant to this Article, a judge does not participate in a particular case, a person who replaces him shall be chosen, in accordance with Article 30(4) of the Agreement, from among the persons designated by the Government which has designated the ordinary judge to be replaced. A party may not request a change in the composition of the Court, either because of the nationality of a judge or because of the absence of a judge of the nationality of that party at the Court.

In accordance with Article 108(2) of the EEA Agreement of 2 May 1992[1], the EFTA States participating in the EEA Agreement establish a Court of Justice. This obligation was fulfilled by the conclusion of the Surveillance and Justice Agreement (PCA), cf. Article 27. [2] The EFTA Court of Justice was originally designed for the seven EFTA states of Austria, Finland, Iceland, Liechtenstein, Norway, Sweden and Switzerland. On 1 January 1994, with the entry into force of the EEA Agreement, the EFTA Court of Justice resumed its functions with five judges appointed by Austria, Finland, Iceland, Norway and Sweden. . . .