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| European Free Trade Association (EFTA) | ||||
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| Secretariat | Geneva, Switzerland | |||
| Official languages | German, French, Norwegian, and Icelandic | |||
| Type | Trade bloc | |||
| Member states |  Iceland Liechtenstein Norway Switzerland |
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| Establishment | 3 May 1960 | |||
| - | EFTA Convention | 4 January 1960 | ||
| Area | ||||
| - | Total | 529,600 km2 204,518 sq mi |
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| Population | ||||
| - | 2007 estimate | 12,660,623 | ||
| - | Density | 100.6/km2 59.82/sq mi |
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| GDP (PPP) | 2007 (IMF) estimate | |||
| - | Total | $567.5 billion | ||
| - | Per capita | $44,828 | ||
| GDP (nominal) | 2007 (IMF) estimate | |||
| - | Total | $743.3 billion | ||
| - | Per capita | $58,714 | ||
| Currency | Icelandic króna, Norwegian krone, Swiss franc (ISK, NOK, CHF) |
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| Time zone | WET / CET (UTC+0 / +1) | |||
| - | Summer (DST) | WEST / CEST (UTC+1 / +2) | ||
The European Free Trade Association (EFTA) was established on 3 May 1960 as an trade bloc-alternative for European states who were either unable to, or chose not to, join the then-European Economic Community (EEC) (now the European Union (EU)).
The EFTA Convention was signed on 4 January 1960 in Stockholm by seven states. Today only Iceland, Norway, Switzerland, and Liechtenstein remain members of EFTA (of which only Norway and Switzerland are founding members). The Stockholm Convention was subsequently replaced by the Vaduz Convention.
This Convention provides for the liberalisation of trade among the member states. Three of the EFTA countries are part of the European Union Internal Market through the Agreement on a European Economic Area (EEA), which took effect in 1994; the fourth, Switzerland, opted to conclude bilateral agreements with the EU. In addition, the EFTA states have jointly concluded free trade agreements with a number of other countries.
An important development was the conclusion by Switzerland in 1999 of a set of bilateral agreements with the European Union covering a wide range of areas, including movement of persons, transport and technical barriers to trade. This development prompted the EFTA States to modernise their Convention to ensure that it will continue to provide a successful framework for the expansion and liberalization of trade among them and with the rest of the world.
The EFTA UPDATE on 1 June 2002. The main areas in which the Convention has been modernised include: Mutual recognition of conformity assessments; Intellectual property rights; Movement of persons, social security and mutual recognition of diplomas; Investment and services; Land and air transport; Public procurement; Agriculture;
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Membership history
The founding members of EFTA were Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom. During the 1960s these countries were often referred to as the Outer Seven, as opposed to the Inner Six of the then-European Economic Community.1 Finland became an associate member in 1961 (becoming a full member in 1986), and Iceland joined in 1970. The United Kingdom and Denmark joined the European Communities in 1973 (together with Ireland), and hence ceased to be EFTA members. Portugal also left EFTA for the European Community in 1986. Liechtenstein joined in 1991 (previously its interests in EFTA had been represented by Switzerland). Finally, Austria, Sweden and Finland joined the European Union in 1995 and hence ceased to be EFTA members.
Current members
| Flag | State | Official name | Accession | Population | Area (km²) | Capital | GDP in millions (PPP) | GDP per capita (PPP) |
|---|---|---|---|---|---|---|---|---|
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Iceland | Republic of Iceland | 1 January 1970 | 320,000 | 103,000 | Reykjavík | 12,172 | 40,277 |
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Liechtenstein | Principality of Liechtenstein | 1 January 1991 | 34,247 | 160.4 | Vaduz | 1,786 | 25,000 |
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Norway | Kingdom of Norway | 3 May 1960 | 4,721,600 | 385,155 | Oslo | 257,400 | 55,600 |
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Switzerland | Swiss Confederation (Confoederatio Helvetica ) | 3 May 1960 | 7,591,400 | 41,285 | Bern | 296,200 | 38,706 |
General Secretaries
General Secretaries of EFTA:
- 1960-1965:
Frank E. Figgures - 1965-1972: Sir John Coulson
- 1972-1975:
Bengt Rabaeus - 1976-1981:
Charles Müller - 1981-1988:
Per Kleppe - 1988-1994:
Georg Reisch - 1994-2000:
Kjartan Jóhannsson - 2000-2006: William Rossier
- 2006-present: Kåre Bryn
Institutions
EFTA is governed by the EFTA Council and serviced by the EFTA Secretariat. In addition, in connection with the EEA Agreement of 1992, two other EFTA organisations were established, the EFTA Surveillance Authority and the EFTA Court.
EEA-related institutions
The EFTA Surveillance Authority and the EFTA Court regulate the activities of the EFTA members in respect of their obligations in the European Economic Area (EEA). Since Switzerland is not an EEA member, it does not participate in these institutions.
The EFTA Surveillance Authority performs the European Commission's role as "guardian of the treaties" for the EFTA countries, while the EFTA Court performs the European Court of Justice's role for those countries.
The original plan for the EEA lacked the EFTA Court or the EFTA Surveillance Authority, and instead had the European Court of Justice and the European Commission were to exercise those roles. However, during the negotiations for the EEA agreement, the European Court of Justice informed the Council of the European Union by way of letter that they considered that giving the EU institutions powers with respect to non-EU member states would be a violation of the treaties, and therefore the current arrangement was developed instead.
Locations
The EFTA Secretariat is headquartered in Geneva, Switzerland. The EFTA Surveillance Authority has its headquarters in Brussels, Belgium (the same location as the headquarters of the European Commission), while the EFTA Court has its headquarters in Luxembourg (the same location as the headquarters of the European Court of Justice).
Portugal Fund
The Portugal Fund was established in 1975 when Portugal was still a member of EFTA, to provide funding for the development and reconstruction of Portugal after the Carnation Revolution. When Portugal left EFTA in 1985, the remaining EFTA members decided to nonetheless continue the Portugal Fund, so Portugal would continue to benefit from it. The Fund originally took the form of a low-interest loan from the EFTA member states to Portugal, to the value of 100 million US dollars. Repayment was originally to commence in 1988, but EFTA then decided to postpone the start of repayments until 1998. The Portugal Fund has now been dissolved by the Member States.
International conventions
EFTA also originated the Hallmarking Convention and the Pharmaceutical Inspection Convention, both of which are open to non-EFTA states.
Relationship to the European Economic Area
The EFTA members, except for Switzerland, are also members of the European Economic Area (EEA).
International Relationships
EFTA has several free trade agreements with non-EU countries as well as declarations on cooperation and joint workgroups to improve trade. 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.
Free Trade Agreement
- Canada
- Chile
- Colombia
- Croatia
- Egypt
- Israel
- Jordan
- South Korea
- Lebanon
- Republic of Macedonia
- Mexico
- Morocco
- Palestinian National Authority
- Singapore
- Southern African Customs Union (Botswana, Lesotho, Namibia, Swaziland, South Africa)
- Tunisia
- Turkey
Currently negotiating with Thailand and the Gulf Co-operation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates)
Declarations on Cooperation
Joint workgroups
Future
The Norwegian electorate has rejected treaties of accession to the EU in two referenda. At the time of the first referendum (1972) their neighbours the Kingdom of Denmark joined. The second time (1994) two other Nordic neighbours, Sweden and Finland joined the EU. The two last governments of Norway have been unable and unwilling to advance the question, as they have both been coalition governments consisting of both proponents and opponents.
Since Switzerland rejected the EEA in 1992, referenda on EU membership have been initiated, the last time in 2001. These were rejected by clear majorities.
Iceland, on the other hand, may join the EU in the near future, due to a recent change in public opinion following the local financial crisis.
Growing opposition to the EU in the United Kingdom may lead to the withdrawal of the UK from the EU. The UK would then, according to most analysts, rejoin the EFTA or, alternatively, NAFTA.2
See also
- Central European Free Trade Agreement (CEFTA)
- Enlargement of the European Union
- Euro-Mediterranean free trade area (EU-MEFTA)
- Free trade areas in Europe
- European Union Association Agreement, which covers many more countries
- Trade bloc
- Schengen Agreement
References
External links
- Official EFTA site
- The history of EFTA in detail
- Mission of Norway to the EU
- The European Commission's Delegation to Norway and Iceland
- European Free Trade Association European Navigator
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