European Free Trade Association

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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

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

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

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

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

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.

Membership

The current member states of EFTA are:

• Iceland
• Liechtenstein
• Norway
• Switzerland

See Also

• European Economic Area
• European Union
• Single market
• Free trade agreement
• Stockholm Convention

Related Pages

• Iceland
• Liechtenstein
• Norway
• Switzerland
• European Economic Area
• European Union
• Single market
• Free trade agreement
• Stockholm Convention