The European Free Trade Association (EFTA) is a regional intergovernmental organization consisting of four European countries - Iceland, Liechtenstein, Norway, and Switzerland. EFTA was established in 1960 as an alternative trade bloc to the then-European Economic Community (EEC), which later evolved into the European Union (EU).
EFTA promotes free trade and economic cooperation among its member countries. It operates by establishing free trade agreements (FTAs) with various countries and regions around the world, aiming to liberalize trade and remove tariff barriers. EFTA's main objective is to enhance the economic integration of its member states while preserving their sovereignty and independent decision-making.
EFTA also works as a platform for consultation and negotiation between its member states. It facilitates cooperation in various areas such as trade in goods, services, investment, competition policies, and intellectual property rights. EFTA also provides a forum for resolving trade disputes among its member countries, ensuring fairness and adherence to agreed-upon rules.
One of EFTA's notable achievements is the creation of the European Economic Area (EEA) in 1994, which joined the member countries of EFTA with those of the EU, except for Switzerland. The EEA Agreement extends the EU's single market rules to the EFTA countries, fostering a high degree of economic integration and eliminating barriers to trade.
In summary, EFTA is an intergovernmental organization promoting free trade, economic cooperation, and integration among its member countries. It aims to facilitate trade liberalization, provide a platform for negotiation, and resolve disputes in order to enhance economic prosperity and sovereign decision-making.
