From the discussions in 1950s about restructuring the economies of Western Europe, two alternatives for economic co-operation emerged. The most ambitious plan proposed creating a common market among the participating countries, with common external tariffs and no tariffs between the members. The discussion resulted in the conclusion of the Treaty of Rome in 1957 which established the European Economic Community (EEC) with the participation of the members of the European Coal and Steel Community.

Other Western European Countries did not wish to commit themselves to such large-scale co-operation, and seven non-members of the EEC (Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom) started to negociate a free trade area among themselves. The discussions resulted in the creation of the European Free Trade Association (EFTA) in 1960.

By the Stockholm Convention, Which came into force on May 3, 1960, the founders of EFTA agreed to the establishment of a multilateral association for the removal of trade barriers and the promotion of closer co-operation between the members of the OEEC, including members of the EEC.

Changes in the Membership

The membership of EFTA has undergone significant changes since the inception of the organization. Iceland became a member in 1970; Finland, which had been an associate member from 1961, became a full member in 1986; and Liechtenstein became a full member in 1991. Of the original members six have left to join the European Union. The United Kingdom and Denmark left in 1972, Portugal in1986, and most recently Austria, Finland and Sweden left at the end of 1994. Norway, having completed negociations with the EU, decided against membership in a referendum. The present members of EFTA are thus Iceland, Liechtenstein, Norway and Switzerland.

Organization (January 1995)

The EFTA is composed of :

Council
Council delegations are led by Ministers (normally twice a year) or by the Heads of National Delegations (usually weekly). The Chair is held for six months by each country in turn. The Council's decisions are binding on member states and must be unanimous when they involve increased obligations; in the case of existing obligations, four votes in favour are needed. Each member state has one vote.

EFTA Standing Committees
Budget Committee. Committee of Members of Parliament of the EFTA Countries. Committee of Origin and Customs Experts. Committee on Technical Barriers to Trade. Committee of Trade Experts. Consultative Committee. Economic Committee. Group of Experts on Efficient Trade Procedures. Group of Legal Experts. Steering Committee for the Industrial Development Fund for Portugal.

Secretariat
Secretary-General: Kjartan Johannsson (Iceland).
Deputy Secretary-General: Aldo Matteucci (Switzerland).

Activities

EFTA unites in one free trade area the markets of its member countries, as a means of working towards a sustained growth in economic activity and a continous improvement in living standards in EFTA countries, and of contributing to the growth of world trade.

For further information please contact:

• European Free Trade Association
  9-11, rue de Varembé
  1211 geneva 20
  SWITZERLAND
• Telephone: (22) 749 11 11
  Telex: 414102
  Fax: (22) 733 92 91