ECONOMIC FREE TRADE ASSOCIATION (Syllabus: GS Paper 3 – Economy)

Context: After 16 years of negotiations, India and the European trade bloc are on the verge of finalizing a significant trade deal.

European Free Trade Association  (EFTA)

• About: It is the intergovernmental organization of Iceland, Liechtenstein, Norway and Switzerland.

oIceland, Liechtenstein, Norway and Switzerland are in the Schengen area but are not EU member states.

• Set up: In 1960 by its then seven Member States for the promotion of free trade and economic integration between its members.
• History: EFTA was founded by the Stockholm Convention in 1960.
• Advisory Bodies: The EFTA Parliamentary Committee, The EFTA Consultative Committee, The EEA EFTA Forum.
• Goal: Fosters free trade and economic integration among its members both within Europe and on a global scale.

Schengen Area:

• About: It is an area comprising 27 European countries that have officially abolished passports and many other types of border control at their mutual borders.