The
European Free Trade Association was set up on the 3rd of May 1960. Its founding members were Norway and Switzerland. Initially 7 countries signed the EFTA Convention. Later on the number reduced to four. They were Iceland, Switzerland, Norway and Liechenstein.
According to the EFTA Convention there would be trade liberalisation among the countries who have entered into the agreement.
Governing Body of EFTA
EFTA Council: This body regulates the different activities of EFTA.
EFTA Court: This body supervises the activities of the member countries of EFTA with regard to its responsibilities in the European Economic Area(EEA). Switzerland is not a member of EEA and so it does not take part in the EFTA Court activities.
EFTA Surveillance Authority: This body acts as the “ Guardian of Treaties” for the member countries of EFTA.
In its formative years EEA did not have the EFTA Court or the EFTA Surveillance Authority. The roles assigned to these bodies were carried out by the European Court of Justice and the European Commission.
Headquarters of the Governing Bodies
EFTA Secretariat: Geneva, Switzerland
EFTA Surveillance Authority: Brussels, Belgium
EFTA Court: Luxembourg
Portugal Fund
The Portugal fund was set up in 1975. After dictatorship ended in Portugal, the fund was used for the reconstruction of the Portugal economy. The Portugal fund continued to exist even after Portugal discontinued its EFTA membership in 1985. The fund was basically a loan by the member countries to Portugal at a low rate of interest. The repayment of loan started from 1998. At present the Portugal Fund no longer exists.
Some International Conventions
EFTA introduced the following two conventions that could be accessed by the non-EFTA countries:
1. Hallmarking Convention
2. Pharmaceutical Inspection Convention
Free trade Agreement
EFTA has entered into free trade agreements with the non-EU countries as well. It has also decided to cooperate and form joint work groups for the enhancement of trade. Some of these countries are:
1. Turkey
2. Tunisia
3. Singapore
4. Morrocco
5. Mexico
6. Lebanon
7. Soutrh Korea
8. Jordan
9. Israel
10. Egypt
11. Croatia
12. Chile