Evropsko udruženje slobodne trgovine
The European Free Trade Association

Summary/Abstract: When one speaks of integrational processes between European States in the field of economy, one usually has in mind the association of countries within the Council for Mutual Economic Aid and the European Economic Community. It is often forgotten that apart from those two economic com m unities, for many years now the European Free Trade Association has been active and functioning successfully. This Association has continued to function even after Great Britain and Denmark ceased to be members. The European Free Trade Association (EFTA) was founded by Austria, Denmark, Norway, Portugal, Sweden, Switzerland and Great Britain by the signing of the so called Stockholm Convention (from November 1959) in January 1960. The Convention cam e into effect in May of the same year. Several factors played an important part in the foundation of the European Free Trade Association of which three were very important. First, the failure of talks within the framework of the Organisation for European Economic Cooperation (OEEC-A) with regard to the creation of a free trade zone for all member countries of this organisation. Secondly, the foundation of the European Economic Community. And thirdly, the political neutrality of some of the countries which reflected on their joining the new economic com m unity. The main initiator of the European Free Trade Association was Great Britain. Great Britain's efforts to form EFTA arc closely related to the misunderstandings with regard to her entry into the European Economic Community. The British Commonwealth was a stumbling block in those talks over which France did not w ant to step, while the Federal Republic of Germany did not insist on the point. The final result was that Great Britain put off her entry into the European Economic Com m unity until a later date, but at the same time, she tried, in cooperation with certain other countries, to found a separate economic com m unity which would rest on a much m ore flexible basis than was the case with the EEC. For this reason, shortly after the formation of the EEC, the European Free Trade Association was founded. Under the influence of the newly formed European Economic Community and for fear of negative repercussions which might affect their national economies the countries mentioned in the introductory passage, decided to found the European Free Trade Association. They thought that in this way they would considerably lessen the negative effects on their national economics which would result from the formation of the European Economic Community. Thus without coming to any special conclusions with regard to the possible fusion of their national economies they agreed on two important points. On the one hand they agreed that they would discontinue, in mutual exchange, customs duties and other limitations — and that at roughly the same tempo as the EEC countries, and on the other hand, that in their relations with nonmember countries they would continue to keep to their individual national customs policies and that they would change them in keeping with the interests of their economies. Thus, the basic aim of the European Free Trade Association is the creation of a free trade in industrial products between the member countries and the expansion of trade in agricultural products. In addition, among the aims found in the Convention are proclamations regarding the: need for the continued assurance of economic expansion of the whole integrated area and of each member country separately; the creation of conditions for full employment; the increase of labour productivity and the rational use of resources; the assurance of financial stability of national economies; the continual raising of the living standards of the inhabitants of the integrated areas. In addition, the Association proclaimed that through its activity it would contribute to the harmonious development and expansion of world trade through the gradual removal, in cooperation with others, of the obstacles which lay in the way of this aim.

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