European Free Trade Association

Organization established in 1960 and consisting of Iceland, Norway, Switzerland, and (from 1991) Liechtenstein, previously a non-voting associate member. There are no import duties between members. Of the original EFTA members, Britain and Denmark left in 1972 to join the European Community (EC), as did Portugal in 1985; Austria, Finland, and Sweden joined the European Union (EU) in 1995.

In 1972 the EC signed agreements with EFTA members, setting up a free-trade area of over 300 million consumers. A further pact signed in October 1991 provided for the creation of a European Economic Area (EEA) in 1994, allowing EFTA greater access to the EC market.