Early cooperation and the First Free Trade Agreement (1967–1979)
Even in the 1960s, EFTA was already looking beyond its own membership and exploring possibilities for broader economic cooperation. In 1967, it established a joint working group with Yugoslavia, marking the first step in EFTA’s structured dialogue with third countries. This early engagement reflected the Association’s outward-looking approach and its commitment to promoting trade liberalisation beyond its borders. The process culminated in 1979 with the signing of EFTA’s first free trade agreement (FTA) with a non-member country, Spain. This agreement eliminated discrimination against EFTA products compared with those of the European Economic Community (EEC) and set an important precedent for EFTA’s future network of external relations.
Supporting transition in Europe (1989–1994)
A major shift happened during the period 1989 to 1991, when EFTA significantly expanded its external relations, especially with countries in Central and Eastern Europe. Dialogue was initiated to complement national efforts and to support reforms in countries like Hungary, Poland and Czechoslovakia, resulting in the signing of the Gothenburg Declarations in 1990. These cooperation declarations covered trade, industry, science, tourism, transport, telecoms and environmental protection. Free trade negotiations followed, with asymmetric concessions recognising their difficult economic transition.
1991 saw a growing number of declarations on cooperation signed in quick succession. The Gothenburg Declarations functioned as a model for declarations signed with countries like Bulgaria and Romania (1991), which had a strong focus on customs, tariffs, statistics and investment. In the same year, EFTA signed declarations on cooperation with Estonia, Latvia and Lithuania, aiming at free trade and technical assistance in areas such as statistics, customs and trade policy.
Expanding trade beyond Europe (1991–1992)
After initiating free trade negotiations to promote reciprocal trade, provide fair competition conditions and remove barriers to trade, EFTA signed an FTA with Türkiye in 1991, covering industrial goods, processed agricultural goods and fish. EFTA’s provisions during those years went beyond what was traditionally embodied in free trade agreements, containing provisions on competition, state aid, public procurement and intellectual property rights. The agreement with Türkiye is EFTA’s oldest FTA still in force.
EFTA also increasingly broadened its reach beyond Europe. Prompted by the conclusion of agreements between the European Community and United States with Israel, EFTA started its own free trade talks with Israel in 1991 to remedy the resulting discriminatory treatment of EFTA products on the Israeli market, and signed an agreement the following year.
Through these efforts, EFTA emerged as a bridge between Western Europe, reforming Central and Eastern European States, and markets further afield.
Relations with third countries
Partnerships beyond EFTA and the first free trade agreement (1967-1979)
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