The European Free Trade Agreement (EFTA) encompasses four countries in Europe: Iceland, Liechtenstein, Norway, and Switzerland. This agreement was established in 1960 as a response to the creation of the European Economic Community (EEC) and aimed at promoting free trade among its member states. EFTA members are considered non-EU countries but have access to the EU’s single market through the European Economic Area (EEA) agreement.
Iceland became an EFTA member in 1970, Liechtenstein in 1991, and Switzerland in 1960, while Norway is a founding member since 1960. The EFTA is governed by the EFTA Council, composed of member states’ ministers of foreign affairs and the EFTA Surveillance Authority, which oversees the implementation of the EEA agreement.
The EFTA countries benefit from the free movement of goods, services, persons, and capital with EU member states. It means that they can import and export without tariffs or quota restrictions with the EU. Moreover, EFTA countries can participate in the EU’s Single Market, which allows them to align their regulations with EU legislation.
The EFTA countries are also conducting Free Trade Agreements (FTAs) with non-EU countries. Norway and Switzerland have FTAs with China, while Iceland has an FTA with China and Japan. Additionally, Norway and Switzerland have FTAs with Canada, while Iceland has an FTA with Canada and the US. Liechtenstein participates in the EEA agreement and has access to the EU’s single market through this agreement.
In conclusion, the European Free Trade Agreement countries offer a gateway to access the EU’s single market. Through the EEA agreement, they benefit from the free movement of goods, services, persons, and capital within the European Union. And they have the freedom to establish FTAs with non-EU countries to expand their export markets. Overall, the EFTA countries’ participation in free trade further strengthens their economies and reinforces the trade relations within the European region.