Building a bridge to the EEC
EFTA was established as an alternative to the EEC. Yet, from the start, its leaders recognised the risk of the two drifting apart. An EFTA communiqué in 1960 warned that without cooperation, Europe risked a “distortion of the European economy”.
By 1962, most EFTA members still lacked formal ties with the Community. French President de Gaulle’s veto of UK membership of the EEC in 1963 further complicated matters, as it thwarted the EFTA countries’ plan to use the opportunity “to find a solution for all EFTA countries … to promote the necessary solidarity and cohesion in Europe”.
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Secret, ‘Draft Declaration No.1,’ Geneva 28 July 1961, HAEU, EFTA-0499
Secret, ‘Draft Declaration No.1,’ Geneva 28 July 1961, HAEU, EFTA-0499
Secret, ‘Draft Declaration No.1,’ Geneva 28 July 1961, HAEU, EFTA-0499
Draft communiqué on meeting of the EFTA Council, Vienna 24 May 1965: need for greater cooperation with EEC. HAEU, EFTA-77
Draft communiqué on meeting of the EFTA Council, Vienna 24 May 1965: need for greater cooperation with EEC. HAEU, EFTA-77
Draft communiqué on meeting of the EFTA Council, Vienna 24 May 1965: need for greater cooperation with EEC. HAEU, EFTA-77
The 1970s shift
To break the logjam, EFTA Ministers decided to launch a process to build a bridge to the EEC by establishing cooperation in industrial standardisation. The Hague Summit in 1969 signalled a change, as the EEC prepared to open membership talks with the UK. By 1972, each EFTA country had signed a free trade agreement with the EEC – a turning point representing the first stage of a process that 20 years later would lead to the establishment of the European Economic Area (EEA). By 1984, all bilateral agreements between the EFTA States and the EEC had been fully implemented.
The early 1970s not only brought changes with external partners, but also internal changes. In 1970, Iceland joined the Association, while both the UK and Denmark left to join the EEC in 1973.
Towards a European economic space
By the late 1970s, the progress of European free trade was under threat. EFTA Ministers warned in 1977 that they were “disturbed by the reappearance of protectionism tendencies”. To safeguard integration, EFTA and the EEC began exploring deeper cooperation beyond trade. Formal and informal links grew in areas such as research and development, consumer protection and the environment. The process culminated in the 1984 EFTA–EEC Ministerial meeting – the first of its kind – where both sides agreed to broaden cooperation both inside and outside free trade agreements.
The Luxembourg Declaration in 1984 marked a breakthrough: both sides committed to creating a European Economic Space (EES). The Luxembourg Process established working groups to tackle issues like technical barriers to trade. Between 1984 and 1989, EFTA and the EEC concluded around 20 new agreements, extending cooperation to areas such as standards, research and consumer protection.
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JUMBO Meeting, Luxembourg, 9 April 1984. Photo: Unknown author / HAEU, EFTA-1511_2
JUMBO Meeting, Luxembourg, 9 April 1984. Photo: Unknown author / HAEU, EFTA-1511_12
JUMBO Meeting, Luxembourg, 9 April 1984. Photo: Unknown author / HAEU, EFTA-1511_13
JUMBO Meeting, Luxembourg, 9 April 1984. Photo: Unknown author / HAEU, EFTA-1511_16
Joint Meeting of EFTA with the European Community, EC Commission, Reykjavik (Iceland) on 5 June 1986. Photo: Unknown author / HAEU, EFTA-1488_3
Informal Meeting of the External Relations Section of the Economic and Social Committee (EESC) of the European Community (EC) with Members of the EFTA Economic and Social Committee (CSC) on 8 June 1977. Photo: Laurent Bianco / HAEU, EFTA-1482_4
7th Meeting between Delegations of the Economic and Social Committee (EESC) of the European Community (EC) and of the EFTA Consultative Committee on 20 February 1981. Photo: Jean Zbinden / HAEU, EFTA-1484_4
Joint Meeting of EFTA Ministers with Willy De Clercq, European Commissioner for External Relations and Trade on 29 November 1988. Photo: Eric J. Aldag / HAEU, EFTA-1491_1
EFTA-European Commission Meeting in Brussels (Belgium) on 20 March 1989. Photo: Unknown author / HAEU, EFTA-1492_1
EFTA-European Community (EC), Ministerial Meeting in Brussels (Belgium) on 19 December 1989. Photo: Josef Jany / HAEU, EFTA-1493_2
EFTA-European Community (EC), Ministerial Meeting in Brussels (Belgium) on 19 December 1989. Photo: Josef Jany / HAEU, EFTA-1493_13
EFTA-European Community (EC), Ministerial Meeting in Brussels (Belgium) on 19 December 1989. Photo: Josef Jany / HAEU, EFTA-1493_14
EFTA and the birth of the EEA
On 17 January 1989, European Commission President Jacques Delors proposed “a new, more structured partnership, with common decision-making and administrative institutions”. This vision led to the negotiation of the European Economic Area (EEA), and as the cooperation gained momentum, the workload grew, leading to the expansion of EFTA’s Brussels office. On 17 July 1990, Swiss Federal Councillor Jean-Pascal Delamuraz inaugurated the new premises, which became an important space for internal coordination meetings ahead of joint negotiations with the EC.
From negotiation to implementation of the EEA Agreement
A tight deadline was set for negotiations, and in 1992 the Agreement on the European Economic Area was signed. In a referendum, Switzerland voted by a small majority against EEA membership. By 1993, a new organisational division for EFTA reflected the different focus areas: Geneva would continue to provide headquarter services and deal with all non-EEA matters, especially contact with countries outside the EC, and the Brussels office would manage all EEA-related work.
The EEA Agreement entered into force in 1994 for five EFTA countries – Austria, Finland, Iceland, Norway and Sweden. In 1995, Liechtenstein joined the Agreement, while Austria, Finland and Sweden joined the EU. The Agreement provided access to the Internal Market for the three EEA EFTA States and consequently led to internal changes in EFTA’s structure: new institutions and bodies were created to manage the modification and application of the Agreement, such as the Standing Committee of the EFTA States and the EEA Joint Committee. Consensus-based decision making ensured balance between the blocs. In addition, the EFTA Surveillance Authority was established to monitor the application of the Agreement in the EEA EFTA States, while the EFTA Court in Luxembourg ensured compliance.
Relations with third countries
Partnerships beyond EFTA and the first free trade agreement (1967-1979)
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