The European Free Trade Association (EFTA) is an intergovernmental organization that promotes free trade and economic cooperation between its member states. It was established in 1960 and currently has four members: Iceland, Liechtenstein, Norway, and Switzerland.
The European Free Trade Association (EFTA) is an intergovernmental organization established in 1960 by seven European countries: Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom. The purpose of EFTA is to promote free trade and economic cooperation between its member states. EFTA is not a customs union, but rather a free trade area with a common external tariff.
EFTA is an important part of the European economic landscape, and its members are closely linked to the European Union (EU). EFTA members are part of the European Economic Area (EEA), which allows them to participate in the EU’s single market. This means that EFTA members have access to the same free trade benefits as EU members, including the free movement of goods, services, capital, and people.
EFTA also has its own trade agreements with countries outside of the EU. These agreements are known as the EFTA Convention and the EFTA Free Trade Agreements. The EFTA Convention is a comprehensive agreement that covers trade in goods, services, and intellectual property. The EFTA Free Trade Agreements are more limited in scope and focus on specific sectors, such as agriculture, fisheries, and energy.
EFTA also has a number of other activities, such as the European Economic Area Financial Mechanism, which provides financial assistance to the poorer countries of the EEA. EFTA also has a dispute settlement mechanism, which allows members to resolve disputes without resorting to litigation.
In addition to its trade activities, EFTA also works to promote economic and social cohesion among its members. This includes initiatives such as the European Social Fund, which provides financial assistance to disadvantaged regions, and the European Regional Development Fund, which helps to promote economic development in less developed regions.
Overall, EFTA is an important part of the European economic landscape, and its members are closely linked to the European Union. EFTA’s activities are aimed at promoting free trade and economic cooperation between its members, as well as promoting economic and social cohesion.