EFTA Membership and Structure:
– EFTA consists of Iceland, Liechtenstein, Norway, and Switzerland.
– All member states partake in the European Single Market and Schengen Area.
– EFTA members can establish bilateral third-country trade arrangements.
– The Agreement on a European Economic Area includes Iceland, Liechtenstein, and Norway.
– Switzerland has multilateral agreements with the EU.
– EFTA was founded on 3 May 1960 as an alternative to the EEC.
– The Vaduz Convention replaced the original Stockholm Convention in 2002.
– Several founding members have left EFTA to join the EU over the years.
– Norway has twice attempted to join the EU but remained in EFTA following national referendums.
EFTA and EU Relations:
– The EU, its member states, and EFTA states signed the Agreement on the European Economic Area in 1992.
– EEA includes 3 EFTA states and 27 EU states, allowing market access without EU membership.
– EEA members adopt most EU single market laws, except for agriculture and fisheries.
– EEA members contribute to shaping new policies and legislation.
– Switzerland did not ratify its participation in the EEA but has bilateral treaties with the EU for market participation.
EFTA International Trade Relations:
– EFTA has 29 free trade agreements with non-EU countries.
– Declarations on cooperation and joint workgroups aim to improve trade relations.
– Preferential trade relations have been established with 40 states and territories.
– EFTA States have trade agreements with 27 EU member states.
– EFTA’s Free Trade Map provides an overview of global trade partners.
EFTA Membership Expansion and Trade Developments:
– EFTA membership includes Albania, Bosnia and Herzegovina, Canada, and Central American States.
– Recent trade developments include agreements with India, Moldova, Kosovo, and Thailand.
– EFTA has free trade agreements with Egypt, Georgia, the Gulf Cooperation Council, Hong Kong, China, and Indonesia.
– EFTA trade partners include Israel, Jordan, Lebanon, Mexico, and Montenegro.
Challenges and Considerations in EFTA Relations:
– Norway’s potential block of the UK’s return to EFTA.
– Scotland’s interest in seeking a Norway-style EU relationship.
– Implications of Brexit on EFTA and its member states.
– Faroe Islands’ limitations in becoming an EEA Agreement party.
– Considerations for countries leaving the EU and potential EFTA membership.
The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organization operates in parallel with the European Union (EU), and all four member states participate in the European Single Market and are part of the Schengen Area. They are not, however, party to the European Union Customs Union.
European Free Trade Association Native names:
| |
|---|---|
 Logo | |
 Location of the EFTA (green) in Europe (green & dark grey) | |
| Secretariat | Geneva 46°57′N 7°27′E / 46.950°N 7.450°E |
| Largest city | Oslo 59°56′N 10°41′E / 59.933°N 10.683°E |
| Official working language | English |
| Official languages of member states | |
| Type | Regional organization, Free-trade area |
| Member states | |
| Leaders | |
• Secretary General | Henri Gétaz |
• Council Chair | Iceland |
| Establishment | |
• Convention signed | 4 January 1960 |
• Established | 3 May 1960 |
| Area | |
• Total | 529,600 km2 (204,500 sq mi) |
| Population | |
• 2020 estimate | 14,400,000 |
• Density | 26.5/km2 (68.6/sq mi) |
| GDP (PPP) | 2020 estimate |
• Total | $1.0 trillion |
• Per capita | $70,000 |
| GDP (nominal) | 2020 estimate |
• Total | $1.1 trillion |
• Per capita | $79,000 |
| Currency | |
| Time zone | |
• Summer (DST) | UTC+2 (CEST) |
| Note: Iceland observes WET all year, while Liechtenstein, Norway and Switzerland observe CET and CEST. | |
Website efta | |
EFTA was historically one of the two dominant western European trade blocs, but is now much smaller and closely associated with its historical competitor, the European Union. It was established on 3 May 1960 to serve as an alternative trade bloc for those European states that were unable or unwilling to join the then European Economic Community (EEC), the main predecessor of the EU. The Stockholm Convention (1960), to establish the EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the "outer seven": Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom). A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002.
After 1995 only two founding members remained, namely Norway and Switzerland. The other five, Austria, Denmark, Portugal, Sweden and the United Kingdom, had joined the EU at some point in the intervening years. The initial Stockholm Convention was superseded by the Vaduz Convention, which aimed to provide a successful framework for continuing the expansion and liberalization of trade, both among the organization's member states and with the rest of the world.
While the EFTA is not a customs union and member states have full rights to enter into bilateral third-country trade arrangements, it does have a coordinated trade policy. As a result, its member states have jointly concluded free trade agreements with the EU and a number of other countries. To participate in the EU's single market, Iceland, Liechtenstein, and Norway are parties to the Agreement on a European Economic Area (EEA), with compliances regulated by the EFTA Surveillance Authority and the EFTA Court. Switzerland has a set of multilateral agreements with the EU and its member states instead.[dubious ]
