EFTA
European Free Trade Association (EFTA)
EFTA
• EFTA was founded on 4th January, 1960, at the Stockholm Convention
with an immediate aim of providing framework for liberalisation of
trade in goods among Member States
• Founded by the “Outer Seven” countries - Austria, Denmark, Norway,
Portugal, Sweden, Switzerland and the United Kingdom
• Over the years countries kept adding and leaving the association, and
today EFTA has 4 Member States - Iceland, Liechtenstein, Norway and
Switzerland
• EFTA was established as an economic counterbalance to the more
politically driven European Economic Community (EEC)
• The European Free Trade Association (EFTA) is an intergovernmental
organisation set up for the promotion of free trade and economic
integration to the benefit of its four Member States.
• Objectives:
• To promote growth and prosperity among its Member States
• To promote close economic co-operation between western European
countries
International Relationships
• Currently, the EFTA States have established preferential trade relations with 20
States and Territories, in addition to the 27 Member States of the European Union.
• EFTA FTAs establish a free trade area between the partner countries, by providing
for free trade in industrial goods, including fish and other marine products and
processed agricultural products
• Trade in basic agricultural products is covered in bilateral agreements between the
individual EFTA States and the partner country, which form part of the instruments
establishing the free trade area.
Boon to Member states…
• The EFTA States banked on free trade from the
beginning.
• EFTA states are flexible enough to adapt to
changing circumstances
• Third country policy – a benefit to trade
• Contracts with EU nations and third-country FTAs,
80% of EFTA’s total merchandise trade is from
preferential trade agreements
• Clearly, the EFTA Way has proven its value for the
future trade policy of its Member States
EFTA Canada Free Trade Agreement
• The Free Trade Agreement between EFTA and Canada entered into force on 1 July 2009.
• The EFTA-Canada Free Trade Agreement, which is focused on trade in goods, has the
potential to yield significant benefits for exporters in all five participating countries.
• It provides new links between European and North-American supply and value chains.
• The areas of services, investment and government procurement are the subject of reviews
foreseen within three years after the entry into force.
• The EFTA States’ main exports to Canada are mineral fuels, pharmaceutical and chemical
products, as well as machinery.
• Canada primarily exported nickel, aircraft, pharmaceutical products, machinery and
mechanical appliances to EFTA.
Travel Policies
• Free movement of people within the EEA
• Citizen of EFTA country can work and live in all the EU countries and vice versa
• Dual Citizenship
• Not always possible
• Iceland and Switzerland allow it, Norway only in exceptional cases
• International VISA requirements
• EFTA citizens enjoy a high degree of travel freedom
Salient Features
• EFTA is of major benefit to its members. Iceland, for example, has full access to the EU
Internal Market under the EEA agreement.
• EFTA helps freer trade and therefore the economic development and contributes
indirectly to a more harmonised international economic, social, institutional and political
environment.
• In addition to free trade agreements and co-operation declarations, EFTA has also
implemented technical co-operation programmes designed to assist central and east
European countries and to facilitate their integration into the European and world
economy.
• EFTA maintains close links with a large number of international organisations such as the
Organisation for Economic Co-operation and Development (OECD) and the World Trade
Organisation (WTO). EFTA realises that worldwide compliance with the WTO rules is key
to an efficient multilateral trading system.
• EFTA's very active third-country policy shows the growing vitality of an organisation which
many people a decade ago thought would stand little chance beside an all-powerful EU
