It was established on 3 May 1960 to serve as an alternative trade bloc for those European states that were unable or unwilling to join the then European Economic Community (EEC), the main predecessor of the EU.
The Stockholm Convention (1960), to establish the EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the "outer seven": Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom).
Switzerland has a set of bilateral agreements with the EU instead. ==Membership== ===History=== On 12 January 1960, the Treaty on the European Free Trade Association was initiated in the Golden Hall of the Stockholm City Hall.
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 (EEC). Finland became an associate member in 1961 and a full member in 1986, and Iceland joined in 1970.
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 (EEC). Finland became an associate member in 1961 and a full member in 1986, and Iceland joined in 1970.
Greenland was covered by Denmark's EFTA membership from 1961 and the Faroe Islands from 1968.
Greenland was covered by Denmark's EFTA membership from 1961 and the Faroe Islands from 1968.
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 (EEC). Finland became an associate member in 1961 and a full member in 1986, and Iceland joined in 1970.
At the time of the first referendum in 1972, their neighbour, Denmark joined.
The United Kingdom and Denmark joined the EEC in 1973 and hence ceased to be EFTA members.
Austria, Sweden, and Finland joined the EU in 1995 and thus ceased to be EFTA members. Twice, in 1973 and in 1995, the Norwegian government had tried to join the EU (still the EEC, in 1973) and by doing so, leave the EFTA.
Árnason |2012–2018 |- |11 | |Henri Gétaz |2018–present |} ==Other== ===Portugal Fund=== The Portugal Fund came into operation in February 1977 when Portugal was still a member of EFTA.
When Portugal left EFTA in 1985 in order to join the EEC, the remaining EFTA members decided to continue the Portugal Fund so that Portugal would continue to benefit from it.
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 (EEC). Finland became an associate member in 1961 and a full member in 1986, and Iceland joined in 1970.
Portugal also left EFTA for the European Community in 1986.
Repayment was originally to commence in 1988, however, EFTA then decided to postpone the start of repayments until 1998.
Liechtenstein joined the EFTA in 1991 (previously its interests had been represented by Switzerland).
The last two governments of Norway have not advanced the question, as they have both been coalition governments consisting of proponents and opponents of EU membership. ====Switzerland==== Since Switzerland rejected the EEA membership in a referendum in 1992, more referendums on EU membership have been initiated, the last time being in 2001.
In addition, in connection with the EEA Agreement of 1992, two other EFTA organisations were established, the EFTA Surveillance Authority and the EFTA Court. ===Council=== The EFTA Council is the highest governing body of EFTA.
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 City (the same location as the headquarters of the European Court of Justice). ==Relationship with the European Union: the European Economic Area== In 1992, the EU, its member states, and the EFTA member states signed the Agreement on the European Economic Area in Oporto, Portugal.
Since the second referendum in 1994, two other Nordic neighbours, Sweden and Finland, have joined the EU.
It was established on 1 January 1994 following an agreement with the European Community (which had become the EU two months earlier).
A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002. Since 1995, only two founding members remain, namely Norway and Switzerland.
Austria, Sweden, and Finland joined the EU in 1995 and thus ceased to be EFTA members. Twice, in 1973 and in 1995, the Norwegian government had tried to join the EU (still the EEC, in 1973) and by doing so, leave the EFTA.
Repayment was originally to commence in 1988, however, EFTA then decided to postpone the start of repayments until 1998.
A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002. Since 1995, only two founding members remain, namely Norway and Switzerland.
The last two governments of Norway have not advanced the question, as they have both been coalition governments consisting of proponents and opponents of EU membership. ====Switzerland==== Since Switzerland rejected the EEA membership in a referendum in 1992, more referendums on EU membership have been initiated, the last time being in 2001.
A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002. Since 1995, only two founding members remain, namely Norway and Switzerland.
They were established in conjunction with the 2004 enlargement of the European Economic Area (EEA), which brought together the EU, Iceland, Liechtenstein and Norway in the Internal Market.
In the period from 2004 to 2009, €1.3 billion of project funding was made available for project funding in the 15 beneficiary states in Central and Southern Europe.
However, other EFTA states have stated that only sovereign states are eligible for membership, so it could only join if it became independent from the UK, unless the solution scouted for the Faroes in 2005 were to be adopted (see above). In early 2018, British MPs Antoinette Sandbach, Stephen Kinnock and Stephen Hammond all called for the UK to rejoin EFTA. ==Organisation== EFTA is governed by the EFTA Council and serviced by the EFTA Secretariat.
In the period from 2004 to 2009, €1.3 billion of project funding was made available for project funding in the 15 beneficiary states in Central and Southern Europe.
In 2011, Jonas Gahr Støre, then Foreign Minister of Norway which is an EFTA member state, said that EFTA/EEA membership for the microstates was not the appropriate mechanism for their integration into the internal market due to their different requirements from those of larger countries such as Norway, and suggested that a simplified association would be better suited for them.
Espen Barth Eide, Støre's successor, responded to the commission's report in late 2012 by questioning whether the microstates have sufficient administrative capabilities to meet the obligations of EEA membership.
In response, the Council requested that negotiations with the three microstates on further integration continue, and that a report be prepared by the end of 2013 detailing the implications of the two viable alternatives and recommendations on how to proceed. As EEA membership is currently only open to EFTA or EU member states, the consent of existing EFTA member states is required for the microstates to join the EEA without becoming members of the EU.
On 18 November 2013, the EU Commission concluded that "the participation of the small-sized countries in the EEA is not judged to be a viable option at present due to the political and institutional reasons," and that, Association Agreements were a more feasible mechanism to integrate the microstates into the internal market. ====Norway==== The Norwegian electorate had rejected treaties of accession to the EU in two referendums.
The country held a referendum in 2016 on withdrawing from the EU (popularly referred to as "Brexit"), resulting in a 51.9% vote in favour of withdrawing.
However, in August 2016 the Norwegian Government expressed reservations.
It would shift the balance, which is not necessarily in Norway’s interests." In late 2016, the Scottish First Minister said that her priority was to keep the whole of the UK in the European single market but that taking Scotland alone into the EEA was an option being "looked at".
However, other EFTA states have stated that only sovereign states are eligible for membership, so it could only join if it became independent from the UK, unless the solution scouted for the Faroes in 2005 were to be adopted (see above). In early 2018, British MPs Antoinette Sandbach, Stephen Kinnock and Stephen Hammond all called for the UK to rejoin EFTA. ==Organisation== EFTA is governed by the EFTA Council and serviced by the EFTA Secretariat.
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