#efta

EFTA was formed in 1960 in response to the EU (then known as the EEC or European Economic Community).  The initial members were Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the UK, hence it was often called the “Outer Seven”.  EFTA’s fundamental difference from the EU was and still is that it is purely about free trade between its members.  The EU always has had a commitment to “ever closer union” and its 28 members (as part of the Customs Union) are not allowed to agree their own trade deals.

Over the years, five of the original seven countries have left EFTA to join the EU.  Finland has joined EFTA and left.  Two new countries have joined, hence the present membership is Iceland, Liechtenstein, Norway and Switzerland.  Three of these countries are also in the European Economic Area (EEA), which will be covered in a future post.

EFTA is seldom mentioned in the news today and many older people probably believe that it no longer exists.  Many younger people have probably never heard of it.  Nevertheless, when the UK regains its independence in March 2019, it may be a convenient off the shelf mechanism to secure free trade with four countries.  We can be sure that Secretary of State for International Trade Liam fox and his team are looking into the details.

NEW DELHI. Union Minister of Commerce and Industry Piyush Goyal addressed a gathering of industry leaders at the Prarambh 2026 summit today. He urged the Indian private sector to play a proactive role in nation-building. The Minister emphasized the importance of leveraging Free Trade Agreements to expand India's global footprint. He highlighted that the nation aims for a Viksit Bharat or "Developed India" status by 2047. Goyal called for a renewed focus on high-quality manufacturing standards. He introduced the "One Nation One Quality" mission as a core pillar of this strategy. This initiative seeks to align domestic production with international benchmarks. Minister Goyal believes that leveraging FTAs will drive exports toward the target of $2 trillion by 2030.

Quality Focus and Global Competitiveness

The Minister noted that global markets demand excellence and reliability from Indian suppliers. Industry can achieve significant growth by leveraging Free Trade Agreements with developed economies. He cited the recent landmark deal with the European Free Trade Association (EFTA) as a major success. This agreement secures an investment commitment of $100 billion over the next 15 years. Furthermore, the Australia-India Economic Cooperation and Trade Agreement (ECTA) offers immediate duty-free access for many sectors. Goyal argued that leveraging Free Trade Agreements requires a "Zero Defect, Zero Effect" mindset. This approach ensures that Indian goods remain competitive and environmentally sustainable. He encouraged firms to invest heavily in research and development to stay ahead.

Corporate Social Responsibility and Social Impact

The government also prioritizes Corporate Social Responsibility (CSR) as a tool for social equity. Minister Goyal urged businesses to move beyond mere compliance with CSR regulations. He suggested that firms should align their social investments with the national development goals. Active participation in social welfare projects strengthens the fabric of the Indian economy. By leveraging FTAs , companies generate the profits necessary for these vital contributions. The Minister highlighted how successful businesses can transform rural education and healthcare systems. He believes that ethical business practices create long-term value for all stakeholders. The "Viksit Bharat" vision relies on this synergy between economic profit and social progress.

Leveraging Free Trade Agreements: Future Outlook