Functions of European Free Trade Association : Examine!

On 3rd May, 1960 the European Free Trade Association (EFTA) was established. It signed the Vaduz convention in June 2001 to liberalise the trade relations amongst the EFTA countries. It is the responsibility of the EFTA to oversee the operation of free trade area among the member nations.

Its main functions are as following:

• It formed European Economic Area (EEA) by the agreement with EU.
• To achieve free trade in industrial goods among EFTA countries; to cooperate with EU.
• To insure the implementation of agreements among the EFA-EFTA member countries it has established a Surveillance Authority and Court.
• The EEA agreement recognises EU rules on company law, consumer protection, research, education environment etc.
• To ensure free movements of goods, services, capital and labour throughout the EFTA and EU member countries.
• The main aim and objective of the EFTA is to eliminate internal barriers in non-agricultural goods.

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