EUROPEAN FREE TRADE ASSOCIATION - INTERNATIONAL

News: India and European Free Trade Association member countries close to agreement on free trade

 

What's in the news?

       Switzerland's Ambassador to India has expressed optimism that the crucial European Free Trade Association (EFTA) deal with India would be wrapped up before the 2024 general elections.

 

European Free Trade Association (EFTA):

       The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states - Iceland, Liechtenstein, Norway and Switzerland.

 

Formed by - Stockholm Convention, subsequently amended by Vaduz Convention.

 

Features:

       EFTA 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 organization operates in parallel with the European Union (EU) and all four member states participate in the European Single Market and are part of the Schengen Area.

       They are not, however, party to the European Union Customs Union.

       While the EFTA is not a customs union and member states have full rights to enter into bilateral third-country trade arrangements, it does have a coordinated trade policy.

       As a result, its member states have jointly concluded free trade agreements with the EU and several other countries.