The European Free Trade Association, EFTA

A bit of history
The European Free Trade Association ( EFTA ) was founded in 1960 by the Stockholm Convention . The seven countries were the original members of the Organization: Austria , Denmark , Norway , Portugal , Sweden, Switzerland and the United Kingdom. It was Britain that had taken the lead in its foundation, as the country strove for making use of advantages of free trade in Europe, but at that time did not wish to accede to the European Economic Community (hereinafter EC) with its supranational bodies, customs union and common agricultural policy.

In 1961 Finland became an EFTA associate member, in 1970 Iceland and in 1991 Liechtenstein became EFTA members. In 197 2 the UK and Denmark left the EFTA to join the EC; in 1986 their example was followed by Portugal in 1986 and by Austria, Finland and Sweden in 1996.

EFTA today
At present, the Organization is made up by the four countries : Iceland , Liechtenstein , Norway and Switzerland , the total population of which comes to just under the 13 mln mark. Activities of the Association are carried out in the three main directions: internal relations, relations with the EC – the European Economic Area (EEA), which brings together all EU and the three EFTA countries (except Switzerland ) and EFTA free trade agreements with third countries ( outside the EC ).

EFTA States are the world’s ninth largest merchandise trader as well as significant actors in the areas of trade in services and foreign direct investment. As a group, the EFTA States have concluded 18 Free Trade Agreements with a total of 27 partner countries outside the EU. Of EFTA’s total merchandise trade, 80% is now covered by preferential trade agreements (EFTA-4, EU-27, 27 non-EU free trade partner countries).

The EFTA Council is the highest governing body of the Organization. The Council holds its meetings usually once a month, at the Ambassadorial level (Heads of Permanent Delegations to EFTA) in Geneva. The Council also meets twice a year at the Ministerial level. Each member state is represented and has one vote, though decisions are usually reached through consensus.

The Council manages relations between the EFTA member states, supervises relations and FTAs with other countries. Questions relating to the EEA are dealt with by the EFTA Standing Committee in Brussels.

The EFTA member states hold presidency of the Council and its Committees on a rotating basis, switching each half a year. In 2009, the EFTA Council is to be presided by Norway – until June – and by Lichtenstein.

EFTA – Ukraine
In June 2000, Ukraine and the EFTA states signed the Declaration on trade and economic cooperation , in which for the first time a prospect of “ the establishment of a free trade area ” was declared . The Joint EFTA- Ukraine Committee was established in accordance with the Declaration.

In November 2008, at a meeting of the EFTA Council at the level of Trade Ministers, it was decided to launch the negotiations towards a FTA with Ukraine in 2009.