European Free Trade Association

The European Free Trade Association (EFTA) is an intergovernmental organisation that promotes free trade and economic integration among its members. It was established in 1960 under the Stockholm Convention and functions alongside, but separately from, the European Union.

Composition and organisation

EFTA currently comprises Iceland, Liechtenstein, Norway and Switzerland. Its principal decision-making body is the EFTA Council, in which every member state is represented and decisions are generally taken by consensus.

• EFTA is a free trade association, not a customs union; members retain their own external tariffs and trade policies towards non-members.
• The EFTA Secretariat supports cooperation under the EFTA Convention, free trade agreements and the European Economic Area framework.

Principal mandate

EFTA's central purpose is to advance free trade and economic integration for the benefit of its member states.

• It manages trade and economic relations among members under the EFTA Convention.
• It provides a platform through which members jointly negotiate and administer a worldwide network of free trade agreements with non-member partners.
• It facilitates cooperation in areas such as trade in goods and services, investment, government procurement and intellectual property, as covered by its agreements.

Relationship with the European Union

EFTA is institutionally distinct from the EU. Iceland, Liechtenstein and Norway participate with the EU in the European Economic Area, which extends the EU internal market to them, while Switzerland manages its relations with the EU mainly through bilateral agreements.