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The European Free Trade Association (EFTA) is a regional
trade organization A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific Industry (economics), industry. Through collabor ...
and
free trade area A free trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...
consisting of four European states:
Iceland Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
,
Liechtenstein Liechtenstein (, ; ; ), officially the Principality of Liechtenstein ( ), is a Landlocked country#Doubly landlocked, doubly landlocked Swiss Standard German, German-speaking microstate in the Central European Alps, between Austria in the east ...
,
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of the Kingdom of ...
and
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
. The organization operates in parallel with the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
(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. EFTA was historically one of the two dominant western European trade blocs, but is now much smaller and closely associated with its historical competitor, the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
. It 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 The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...
(EEC), the main predecessor of the EU. The Stockholm Convention (1960), to establish the EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the " Outer Seven":
Austria Austria, formally the Republic of Austria, is a landlocked country in Central Europe, lying in the Eastern Alps. It is a federation of nine Federal states of Austria, states, of which the capital Vienna is the List of largest cities in Aust ...
,
Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...
,
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of the Kingdom of ...
,
Portugal Portugal, officially the Portuguese Republic, is a country on the Iberian Peninsula in Southwestern Europe. Featuring Cabo da Roca, the westernmost point in continental Europe, Portugal borders Spain to its north and east, with which it share ...
,
Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
,
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
and the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
). A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002. After 1995 only two founding members remained, namely Norway and Switzerland. The other five, Austria, Denmark, Portugal, Sweden and the United Kingdom, had joined the EU at some point in the intervening years. The initial Stockholm Convention was superseded by the Vaduz Convention, which aimed to provide a successful framework for continuing the expansion and
liberalization of trade Economic liberalization, or economic liberalisation, is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical liber ...
, both among the organization's member states and with the rest of the world. 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 a number of other countries. To participate in the EU's single market, Iceland, Liechtenstein, and Norway are parties to the Agreement on a European Economic Area (EEA), with compliances regulated by the EFTA Surveillance Authority and the EFTA Court. Switzerland has a set of multilateral agreements with the EU and its member states instead.


Membership


History

On 12 January 1960, the Convention establishing the European Free Trade Association was initiated in the Golden Hall of the
Stockholm City Hall Stockholm City Hall (, ''Stadshuset'' locally) is the seat of Stockholm Municipality in Stockholm, Sweden. It stands on the eastern tip of Kungsholmen island, next to Riddarfjärden's northern shore and facing the islands of Riddarholmen and ...
. This established the progressive elimination of customs duties on industrial products, but did not affect agricultural or fisheries products. The main difference between the early EEC and the EFTA was that the latter did not operate common external customs
tariff A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...
s unlike the former: each EFTA member was free to establish its individual customs duties against, or its individual free trade agreements with, non-EFTA countries. The founding members of the EFTA were: Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom. During the 1960s, these countries were often referred to as the " Outer Seven", as opposed to the
Inner Six The Inner Six (also known as the Six or the Six founders) are the six founding member states of the European Union, namely Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. They were the original members of the European ...
of the then
European Economic Community The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...
(EEC).
Finland Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...
became an associate member in 1961 and a full member in 1986, and Iceland joined in 1970. The United Kingdom and Denmark joined the EEC in 1973 and hence ceased to be EFTA members. Portugal also left EFTA for the European Community in 1986. Liechtenstein joined the EFTA in 1991 (previously its interests had been represented by Switzerland). Austria, Sweden, and Finland joined the EU in 1995 and thus ceased to be EFTA members. Twice, in
1972 Within the context of Coordinated Universal Time (UTC) it was the longest year ever, as two leap seconds were added during this 366-day year, an event which has not since been repeated. (If its start and end are defined using Solar time, ...
and in
1994 The year 1994 was designated as the " International Year of the Family" and the "International Year of Sport and the Olympic Ideal" by the United Nations. In the Line Islands and Phoenix Islands of Kiribati, 1994 had only 364 days, omitti ...
, the Norwegian government had tried to join the EU (still the EEC, in 1973) and by doing so, leave the EFTA. However, both the times, the membership of the EU was rejected in national referendums, keeping Norway in the EFTA. Iceland applied for EU membership in 2009 due to the 2008–2011 Icelandic financial crisis, but has since dropped its bid.


Current members


Former members


Other negotiations

Between 1994 and 2011, EFTA memberships for
Andorra Andorra, officially the Principality of Andorra, is a Sovereignty, sovereign landlocked country on the Iberian Peninsula, in the eastern Pyrenees in Southwestern Europe, Andorra–France border, bordered by France to the north and Spain to A ...
,
San Marino San Marino, officially the Republic of San Marino, is a landlocked country in Southern Europe, completely surrounded by Italy. Located on the northeastern slopes of the Apennine Mountains, it is the larger of two European microstates, microsta ...
,
Monaco Monaco, officially the Principality of Monaco, is a Sovereign state, sovereign city-state and European microstates, microstate on the French Riviera a few kilometres west of the Regions of Italy, Italian region of Liguria, in Western Europe, ...
, the
Isle of Man The Isle of Man ( , also ), or Mann ( ), is a self-governing British Crown Dependency in the Irish Sea, between Great Britain and Ireland. As head of state, Charles III holds the title Lord of Mann and is represented by a Lieutenant Govern ...
,
Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
,
Israel Israel, officially the State of Israel, is a country in West Asia. It Borders of Israel, shares borders with Lebanon to the north, Syria to the north-east, Jordan to the east, Egypt to the south-west, and the Mediterranean Sea to the west. Isr ...
,
Morocco Morocco, officially the Kingdom of Morocco, is a country in the Maghreb region of North Africa. It has coastlines on the Mediterranean Sea to the north and the Atlantic Ocean to the west, and has land borders with Algeria to Algeria–Morocc ...
, and other European Neighbourhood Policy partners were discussed.


Andorra, Monaco, and San Marino

In November 2012, after the
Council of the European Union The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and less formally known as the Council of Ministers, is the third of the seven institutions of the European Union (EU) a ...
had called for an evaluation of the EU's relations with Andorra, Monaco, and San Marino, which they described as "fragmented", the
European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...
published a report outlining the options for their further integration into the EU. Unlike Liechtenstein, which is a member of the EEA via the EFTA and the Schengen Agreement, relations with these three states are based on a collection of agreements covering specific issues. The report examined four alternatives to the current situation: # A Sectoral Approach with separate agreements with each state covering an entire policy area. # A comprehensive, multilateral Framework Association Agreement (FAA) with the three states. # EEA membership, and # EU membership. However, the Commission argued that the sectoral approach did not address the major issues and was still needlessly complicated, while EU membership was dismissed in the near future because "the EU institutions are currently not adapted to the accession of such small-sized countries". The remaining options, EEA membership and a FAA with the states, were found to be viable and were recommended by the commission. In response, the Council requested that negotiations with the three microstates on further integration continue, and that a report be prepared by the end of 2013 detailing the implications of the two viable alternatives and recommendations on how to proceed. As EEA membership is currently only open to EFTA or EU member states, the consent of existing EFTA member states is required for the microstates to join the EEA without becoming members of the EU. In 2011, Jonas Gahr Støre, then Foreign Minister of Norway which is an EFTA member state, said that EFTA/EEA membership for the microstates was not the appropriate mechanism for their integration into the internal market due to their different requirements from those of larger countries such as Norway, and suggested that a simplified association would be better suited for them. Espen Barth Eide, Støre's successor, responded to the commission's report in late 2012 by questioning whether the microstates have sufficient administrative capabilities to meet the obligations of EEA membership. However, he stated that Norway would be open to the possibility of EFTA membership for the microstates if they decided to submit an application, and that the country had not made a final decision on the matter. Pascal Schafhauser, the Counsellor of the Liechtenstein Mission to the EU, said that Liechtenstein, another EFTA member state, was willing to discuss EEA membership for the microstates provided their joining did not impede the functioning of the organization. However, he suggested that the option of direct membership in the EEA for the microstates, outside of both the EFTA and the EU, should be considered. On 18 November 2013, the EU Commission concluded that "the participation of the small-sized countries in the EEA is not judged to be a viable option at present due to the political and institutional reasons", and that Association Agreements were a more feasible mechanism to integrate the microstates into the internal market.


Norway

The Norwegian electorate had rejected treaties of accession to the EU in two referendums. At the time of the first referendum in 1972, their neighbour, Denmark joined. Since the second referendum in 1994, two other Nordic neighbours, Sweden and Finland, have joined the EU. The last two governments of Norway have not advanced the question, as they have both been coalition governments consisting of proponents and opponents of EU membership.


Switzerland

Since Switzerland rejected the EEA membership in a referendum in 1992, more referendums on EU membership have been initiated, the last time being in
2001 The year's most prominent event was the September 11 attacks against the United States by al-Qaeda, which Casualties of the September 11 attacks, killed 2,977 people and instigated the global war on terror. The United States led a Participan ...
. These were all rejected. Switzerland has been in a customs union with fellow EFTA member state and neighbour Liechtenstein since 1924.


Iceland

On 16 July 2009, the government of Iceland formally applied for EU membership, but the negotiation process was suspended in mid-2013, and in 2015 the foreign ministers wrote to withdraw its application.


Faroe Islands (Kingdom of Denmark)

Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...
was a founding member of EFTA in 1960, but its membership ended in 1973, when it joined the
European Communities The European Communities (EC) were three international organizations that were governed by the same set of Institutions of the European Union, institutions. These were the European Coal and Steel Community (ECSC), the European Atomic Energy Co ...
. The autonomous territories of the
Kingdom of Denmark The Danish Realm, officially the Kingdom of Denmark, or simply Denmark, is a sovereign state consisting of a collection of constituent territories united by the Constitution of Denmark, Constitutional Act, which applies to the entire territor ...
were covered by Denmark's EFTA membership:
Greenland Greenland is an autonomous territory in the Danish Realm, Kingdom of Denmark. It is by far the largest geographically of three constituent parts of the kingdom; the other two are metropolitan Denmark and the Faroe Islands. Citizens of Greenlan ...
from 1961 and the
Faroe Islands The Faroe Islands ( ) (alt. the Faroes) are an archipelago in the North Atlantic Ocean and an autonomous territory of the Danish Realm, Kingdom of Denmark. Located between Iceland, Norway, and the United Kingdom, the islands have a populat ...
from 1968. In mid-2005, representatives of the
Faroe Islands The Faroe Islands ( ) (alt. the Faroes) are an archipelago in the North Atlantic Ocean and an autonomous territory of the Danish Realm, Kingdom of Denmark. Located between Iceland, Norway, and the United Kingdom, the islands have a populat ...
raised the possibility of their territory re-joining the EFTA. Because Article 56 of the EFTA Convention only allows sovereign states to become members of the EFTA, the Faroes considered the possibility that the "Kingdom of Denmark in respect of the Faroes" could join the EFTA on their behalf. The Danish Government has stated that this mechanism would not allow the Faroes to become a member of the EEA because Denmark was already a party to the EEA Agreement. The Faroes already have an extensive bilateral free trade agreement with Iceland, known as the Hoyvík Agreement.


United Kingdom

The United Kingdom was a co-founder of EFTA in 1960, but ceased to be a member upon joining the European Economic Community. The country held a referendum in 2016 on withdrawing from the EU (popularly referred to as "
Brexit Brexit (, a portmanteau of "Britain" and "Exit") was the Withdrawal from the European Union, withdrawal of the United Kingdom (UK) from the European Union (EU). Brexit officially took place at 23:00 GMT on 31 January 2020 (00:00 1 February ...
"), resulting in a 51.9% vote in favour of withdrawing. A 2013 research paper presented to the
Parliament of the United Kingdom The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body of the United Kingdom, and may also legislate for the Crown Dependencies and the British Overseas Territories. It meets at the Palace ...
proposed a number of alternatives to EU membership which would continue to allow it access to the EU's internal market, including continuing EEA membership as an EFTA member state, or the Swiss model of a number of bilateral treaties covering the provisions of the single market. In the first meeting since the Brexit vote, EFTA reacted by saying both that they were open to a UK return, and that Britain has many issues to work through. The president of Switzerland Johann Schneider-Ammann stated that its return would strengthen the association. However, in August 2016 the Norwegian Government expressed reservations. Norway's European affairs minister, Elisabeth Vik Aspaker, told the ''
Aftenposten (; ; stylized as in the masthead) is Norway's largest printed newspaper by circulation as well as Norway's newspaper of record. It is based in Oslo. It sold 211,769 daily copies in 2015 (172,029 printed copies according to University of Bergen ...
'' newspaper: "It's not certain that it would be a good idea to let a big country into this organization. It would shift the balance, which is not necessarily in Norway's interests." In late 2016, the Scottish First Minister Nicola Sturgeon said that her priority was to keep the whole of the UK in the European single market but that taking Scotland alone into the EEA was an option being "looked at". However, other EFTA states have stated that only sovereign states are eligible for membership, so it could only join if it became independent from the UK, unless the solution scouted for the Faroes in 2005 were to be adopted (see above). In early 2018, British MPs Antoinette Sandbach, Stephen Kinnock and Stephen Hammond called for the UK to rejoin EFTA.


Relationship with the European Union: the European Economic Area

In 1992, the EU, its member states, and the EFTA member states signed the Agreement on the European Economic Area in
Porto Porto (), also known in English language, English as Oporto, is the List of cities in Portugal, second largest city in Portugal, after Lisbon. It is the capital of the Porto District and one of the Iberian Peninsula's major urban areas. Porto c ...
, Portugal. However, the proposal that Switzerland ratify its participation was rejected by referendum. (Nevertheless, Switzerland has multiple bilateral treaties with the EU that allow it to participate in the European Single Market, the Schengen Agreement and other programmes). Thus, except for Switzerland, the EFTA members are also members of the European Economic Area (EEA). The EEA comprises three member states of the European Free Trade Association (EFTA) and 27 member states of the European Union (EU). It was established on 1 January 1994 following an agreement with the
European Economic Community The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...
(which had become the European Community two months earlier). It allows the EFTA-EEA states to participate in the EU's Internal Market without being members of the EU. They adopt almost all EU legislation related to the single market, except laws on agriculture and fisheries. However, they also contribute to and influence the formation of new EEA relevant policies and legislation at an early stage as part of a formal decision-shaping process. One EFTA member, Switzerland, has not joined the EEA but has a series of bilateral agreements, including a
free trade agreement A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating state (polity), states. There are two types of trade agreements: Bilateralism, bilateral and Multilateralism, m ...
, with the EU. The following table summarises the various components of EU laws applied in the EFTA countries and their sovereign territories. Some territories of EU member states also have a special status in regard to EU laws applied as is the case with some European microstates.


EEA institutions

A Joint Committee consisting of the EEA-EFTA States plus the European Commission (representing the EU) has the function of extending relevant EU law to the non-EU members. An EEA Council meets twice yearly to govern the overall relationship between the EEA members. Rather than setting up pan-EEA institutions, the activities of the EEA are regulated by the EFTA Surveillance Authority and the EFTA Court. The EFTA Surveillance Authority and the EFTA Court regulate the activities of the EFTA members in respect of their obligations in the European Economic Area (EEA). Since Switzerland is not an EEA member, it does not participate in these institutions. The EFTA Surveillance Authority performs a role for EFTA members that is equivalent to that of the European Commission for the EU, as "guardian of the treaties" and the EFTA Court performs the
European Court of Justice The European Court of Justice (ECJ), officially the Court of Justice (), is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European Union, it is tasked with interpreting ...
-equivalent role. The original plan for the EEA lacked the EFTA Court: the European Court of Justice was to exercise those roles. However, during the negotiations for the EEA agreement, the European Court of Justice ruled by the Opinion 1/91 that it would be a violation of the treaties to give to the EU institutions these powers with respect to non-EU member states. Therefore, the current arrangement was developed instead.


EEA and Norway Grants

The EEA and Norway Grants are the financial contributions of Iceland, Liechtenstein and Norway to reduce social and economic disparities in Europe. They were established in conjunction with the 2004 enlargement of the European Economic Area (EEA), which brought together the EU, Iceland, Liechtenstein and Norway in the Internal Market. In the period from 2004 to 2009, €1.3 billion of project funding was made available for project funding in the 15 beneficiary states in Central and Southern Europe. The EEA and Norway Grants are administered by the Financial Mechanism Office, which is affiliated to the EFTA Secretariat in Brussels.


International conventions

EFTA also originated the
Hallmark A hallmark is an official Mark (sign), mark or series of marks struck on items made of metal, mostly to certify the content of noble metals—such as platinum, gold, silver and in some nations, palladium. In a more general sense, the term ''Wikti ...
ing Convention and the Pharmaceutical Inspection Convention, both of which are open to non-EFTA states.


International trade relations

EFTA has 29 free trade agreements with non-EU countries as well as declarations on cooperation and joint workgroups to improve trade. Currently, the EFTA States have established preferential trade relations with 40 states and territories, in addition to the 27 member states of the European Union. EFTA's interactive Free Trade Map gives an overview of the partners worldwide.


Free trade agreements


Ongoing free trade negotiations

Signed: * (Signed 22 June 2015) * (Signed 10 March 2024) * (Concluded 26 September 2024, Signed 22 January 2025) * (Signed 23 January 2025) Concluded: * (Concluded 23 August 2019)



Negotiations: * (Since November 2012) * (Since July 2012) Negotiations currently on hold * * (Central American States) *


Declarations on cooperation * * * (on hold since 2022) *


Obsolete agreements

The following agreements are no longer active, being superseded by other agreements: * (1995–2007) * (2002–2013) * (1993–2004) * (1992–1993) * (1996–2004) * (1995–2004) * (1996–2004) * (1996–2004) * (1995–2004) * (1995–2007) * (1993–2004) * (1995–2004) * (1980–1986) * (1995–2021)


Travel policies


Free movement of people within EFTA and the EU/EEA

EFTA member states' citizens enjoy freedom of movement in each other's territories in accordance with the EFTA convention. EFTA & EEA nationals also enjoy freedom of movement in the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
(EU). EFTA nationals and EU citizens are not only visa-exempt but are legally entitled to enter and reside in each other's countries. The Citizens' Rights Directive (also sometimes called the "Free Movement Directive") defines the right of free movement for citizens of the European Economic Area (EEA), which includes the three EFTA members
Iceland Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
,
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of the Kingdom of ...
and
Liechtenstein Liechtenstein (, ; ; ), officially the Principality of Liechtenstein ( ), is a Landlocked country#Doubly landlocked, doubly landlocked Swiss Standard German, German-speaking microstate in the Central European Alps, between Austria in the east ...
plus the member states of the EU.
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
, which is a member of EFTA but not of the EEA, is not bound by the Directive but rather has a separate multilateral agreement on free movement with the EU and its member states. As a result, a citizen of an EFTA country can live and work in all the other EFTA countries and in all the EU countries, and a citizen of an EU country can live and work in all the EFTA countries (but for voting and working in sensitive fields, such as government / police / military, citizenship is often required, and non-citizens may not have the same rights to welfare and unemployment benefits as citizens).


General secretaries


Portugal Fund

The Portugal Fund came into operation in February 1977 when Portugal was still a member of EFTA. It was to provide funding for the development of Portugal after the Carnation Revolution and the consequential restoration of democracy and the
decolonization Decolonization is the undoing of colonialism, the latter being the process whereby Imperialism, imperial nations establish and dominate foreign territories, often overseas. The meanings and applications of the term are disputed. Some scholar ...
of the country's overseas possessions. This followed a period of economic sanctions by most of the international community, which left Portugal economically underdeveloped compared to the rest of the
western Europe Western Europe is the western region of Europe. The region's extent varies depending on context. The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the Western half of the ancient Mediterranean ...
. When Portugal left EFTA in 1985 in order to join the EEC, the remaining EFTA members decided to continue the Portugal Fund so that Portugal would continue to benefit from it. The Fund originally took the form of a low-interest loan from the EFTA member states to the value of US$100 million. Repayment was originally to commence in 1988, however, EFTA then decided to postpone the start of repayments until 1998. The Portugal Fund was dissolved in January 2002.


See also

* EFTA Court * EFTA Surveillance Authority *
Central European Free Trade Agreement The Central European Free Trade Agreement (CEFTA) is an international trade agreement between countries mostly located in Southeastern Europe. Founded by representatives of Poland, Hungary and Czechoslovakia, CEFTA in 2006 expanded to Albania, Bo ...
* Euro-Mediterranean free trade area * European Union Association Agreement * European Union free trade agreements * Free trade areas in Europe


Notes


References


Further reading

*


External links

*
Archives
of the European Free Trade Association (EFTA), held in the European University Institute
Historical Archives of the European Union.Official website
{{Authority control European Economic Area 1960 establishments in Europe Free-trade areas Intergovernmental organizations established by treaty Liechtenstein–Switzerland relations Organisations based in Geneva Organisations based in Luxembourg Organisations based in Brussels Organizations established in 1960 Trade blocs