European Free Trade Association (EFTA)

The European Free Trade Association (EFTA) is an intergovernmental organization composed of Iceland, Liechtenstein, Norway, and Switzerland. It was established in 1960 to promote free trade and economic cooperation among its members, within Europe and globally. EFTA is not a customs union, which means its member states retain full autonomy over their trade policies and can negotiate bilateral trade agreements with third countries. However, EFTA countries coordinate their trade policies and have concluded joint free trade agreements with the EU and other nations. While EFTA operates in parallel with the European Union, participating in the European Single Market and part of the Schengen Area, its members are not part of the EU Customs Union. The Association is significant for promoting the liberalization of trade, with its members having a combined GDP of around $1.0 trillion (PPP) or $1.1 trillion (nominal) as of 2020. EFTA has recently been in the news for signing a significant trade pact with India, showcasing its ongoing relevance and efforts to expand trade relations globally.