Economic Relationship among EFTA Nations

The EFTA or European Free Trade Association is basically an intergovernmental entity. It had been established with the precise purpose of encouraging its member countries Switzerland, Iceland, Norway and Liechtenstein to carry on free trade with each other and be more integrated from a financial point of view.

Switzerland and Iceland have had bilateral relations since 1951. The economic relations between the two countries have been going on for a fair amount of time now as both the countries have been members of the European Free Trade Association. Organizations like the Council of Europe and the Organization for Security and Co-operation in Europe have played important roles in this context as well. There has not been too much of trade between the two countries though.

Switzerland however, has had more trade with Liechtenstein as both the countries have adopted the necessary economic measures that are needed to succeed in these activities.

These countries have been able to distribute their resources in a better way as a result of these reforms and this has helped them to improve on the trade front. Norway does trade with other countries through the European Free Trade Association. In the similar way Norway does trade with Switzerland through the European Free Trade Association. The trade of the member nations of EFTA is controlled by organizations like the EFTA Court and the EFTA Surveillance Authority.

These organizations are supposed to judge the trade activities of Ireland, Liechtenstein and Norway in the context of the EEA or the European Economic Area. Switzerland is not a member of the European Economic Area and hence does not come under the jurisdiction of these organizations. The EFTA Surveillance Authority performs in a controlling capacity as far as the economic treaties between these countries are concerned. The EFTA Court’s powers are judicial in nature.