Establishment of the European Free Trade Association

The European Free Trade Association (EFTA) was established by the Stockholm Convention on January 4, 1960, as an alternative for countries that either did not want or could not join the European Community, and to promote free trade and economic integration among its member states. Seven European countries – Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom – founded EFTA. Since then, its membership has fluctuated: Finland, Iceland, and Liechtenstein joined EFTA in 1961, 1970, and 1991, respectively, while the United Kingdom and Denmark left the organization in 1972 to join the European Community, with Portugal following suit in 1986. Austria, Finland, and Sweden withdrew in 1995 when they joined the EU. Today, EFTA consists of four countries: Iceland, Liechtenstein, Norway, and Switzerland.