Third-country Economic Relationships With The European Union - EFTA and EEA

EFTA and EEA

The European Free Trade Association (EFTA) was created to allow European countries to partake in free trade with the European Communities (later European Union), without becoming full members. Most of the countries initially in EFTA have since joined the EU itself, so only four remain outside, Norway, Iceland, Liechtenstein and Switzerland.

The European Economic Area (EEA) agreement allows Norway, Iceland and Liechtenstein to have access to the EU single market. The four basic freedoms (goods, services, people and capital) apply. However, some restrictions on fisheries and agriculture take place.