European Free Trade Association

The European Free Trade Association (EFTA) or European Free Trade Agreement (also known by its acronym EFTA —European Free Trade Association—) is a commercial block created on January 4, 1960 by the Stockholm Convention as an alternative to the European Economic Community (1957) and initially integrated by Austria, Denmark, United Kingdom, Norway, Portugal, Sweden and Switzerland. It entered into force in June 1960. Finland entered in 1961, Iceland in 1970 and Liechtenstein in 1991.

EFTA groups the countries that chose not to join the European Union.

Its objective is to achieve economic expansion and financial stability for all its members.

After the United Kingdom and Denmark left EFTA and joined the EEC in 1973, Portugal in 1986, Austria, Sweden and Finland in 1995, EFTA's role has diminished considerably. Two Alpine countries remain: Liechtenstein and Switzerland, which are traditionally considered low-tax territories; and two Nordic countries, Norway and Iceland, although the latter began the procedures to join the EU, however in March 2015 it withdrew its candidacy and presumably remains a member of this organization.

EFTA has the following institutions:

• The secretariat based in Geneva.
• The EFTA Court.
• The EFTA Council.
• The EFTA Supervision Authority.

History

EFTA member countries Former members of EFTA CEFTA member countries Former members of CEFTA Former members of BAFTA

The British reaction to the creation of the EEC would go from being indifferent to hostile because of its opposition to federal structures and the need to defend the Commonwealth of Nations, which was in a critical period. The United Kingdom managed to bring together several countries throughout 1959 (including some bordering on the EEC) and decided to create the European Free Trade Association.

On January 4, 1960, the Treaty of the European Free Trade Association, its founding document, was signed in the Golden Room of the Prince's Palace in Stockholm. This established the progressive elimination of customs duties with respect to industrial products, but did not affect agricultural or marine products.

The only original difference between the EEC and EFTA was the common external customs tariff, and therefore each member of the latter was free to establish customs duties against third countries.

Despite these modest means and purposes, an increase in foreign trade between its members was achieved from 3,522 to 8,172 million dollars between 1959 and 1967.^{[citation needed]} But it is, after all, inferior when compared to the increase that occurred in EFTA's victory came as a consequence of the accession of Denmark and the United Kingdom to the European Communities. For this reason, most of the member countries dismantled their customs protection preparing to be able to join or associate with the EEC, diminishing the income and importance of EFTA. There are currently only 4 members left: Iceland, Switzerland, Norway and Liechtenstein. A possible return to the UK EFTA is also rumored after the Brexit referendum in 2016.

Member countries of the European Free Trade Association

All joined in 1961 except Iceland which joined in 1970 and Finland which joined in 1985

• Denmark (the organization was disbanded in 1972 to enter the EEC)
• United Kingdom (Abandon organization in 1972 to enter EEC)
• Portugal (Abandon organization in 1986 to enter the EEC)
• In 1991, in the remaining countries, a universal suffrage referendum was held to decide whether they were still in this organization or becoming part of the European Union and the result was:
  • Austria (the organization was disbanded in 1995 to enter the EU)
  • Finland (Supported to join the EU in 1995)
  • Sweden (the organization was disbanded in 1995 to enter the EU)
  • Iceland (continued in EFTA)
  • Norway (continued in EFTA)
  • Switzerland (continued in EFTA)
  • Liechtenstein (continued in EFTA)

Trade Agreements

EFTA has negotiated multiple free trade agreements, among which the one with the European Union stands out, which grants it access to the common market without submitting to the Brussels regulations.^{[citation needed]} It also has another 25 free trade agreements with 35 countries. In recent years, EFTA has signed trade agreements with Mexico in 2001, with Croatia, Jordan and North Macedonia in 2002, Singapore in 2003, with Chile in 2004, with Tunisia in 2005, with South Korea in 2006, SACU in 2008, with Canada in 2009, with Albania and Peru in 2010 with Colombia in 2011, with Costa Rica in 2014, with Panama in 2014 and Ecuador in 2018.