European Free Trade Association

EFTA_AELE_countries_and_former_members

EFTA_House

Stamp_1967_-_FINEFTA_-_Finland_as_an_external_member_of_EFTA

CHE_Samnaun_COA

AELE-Cooperation

European Free Trade Association

The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European countries: Iceland, Liechtenstein, Norway, and Switzerland. EFTA was established on 3 May 1960 as an alternative for European states that were either unable or unwilling to join the then European Economic Community (EEC), which has now become the European Union (EU).

History[edit | edit source]

EFTA was founded by the Stockholm Convention, which was signed on 4 January 1960 in Stockholm, Sweden. The founding members were Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom. Over time, several of these countries left EFTA to join the EU. The current members are Iceland, Liechtenstein, Norway, and Switzerland.

Objectives[edit | edit source]

The main objectives of EFTA are to promote free trade and economic integration between its member states and to contribute to the expansion of world trade. EFTA also aims to strengthen the economic relations between its member states and the rest of the world.

Structure[edit | edit source]

EFTA has a two-pillar structure:

The EFTA Council, which is the governing body of EFTA and meets regularly to discuss policy issues and make decisions.
The EFTA Secretariat, which is responsible for the day-to-day administration of EFTA and is based in Geneva, Switzerland.

EFTA and the European Union[edit | edit source]

EFTA countries have established various agreements with the EU. The most significant of these is the European Economic Area (EEA) Agreement, which allows three of the EFTA countries (Iceland, Liechtenstein, and Norway) to participate in the EU's single market without being EU members. Switzerland has a series of bilateral agreements with the EU instead of EEA membership.

Trade Relations[edit | edit source]

EFTA has free trade agreements with numerous countries and regions around the world. These agreements cover trade in goods, services, investment, and other areas of economic cooperation.