By Martin Banks - 14th April 2008
The European Free Trade Association (EFTA) has announced plans to expand its operations to embrace emerging powers such as India.
The organisation currently has just four members – Iceland, Lichtenstein, Norway and Switzerland.
EFTA is designed to promote closer trade and economic links for countries which are not part of the EU.
Each of its members are able to participate in the EU’s single market.
But its secretary general Kare Bryn says the organisation, set up in 1960, is now turning its attention to emerging economic powers such as India and Russia.
The organisation has, since its launch, concluded 16 free trade agreements with countries all over the world, including Lebanon and Egypt.
But, speaking at a news conference, Bryn said, “We are examining closer trade and investment relations with other countries such as India and Russia which we hope will lead to free trade negotiations.”
He was speaking at the launch of the EFTA’s annual report for 2007 which said that European Economic Area members play “an increasingly important” role in the EU.
The states, it says, contributed almost €132m to the EU budget in 2007 for their participation in 15 programmes, including the lifelong learning programme.
Bryn said, “In a time of globalisation, it is important that EFTA maintain an active free trade policy in order to avoid having our operators receiving less favourable market access conditions than their non-EFTA competitors.
“Even so, bilateral agreements must be seen as complementing the multilateral trading system.
“EFTA states remain strong supporters of the WTO and are giving high priority to concluding the Doha round.”
He also said the draft Lisbon treaty would pose “new challenges” to its member states, particularly when it comes to the EU decision-making process, and expressed optimism that EFTA members would withstand the current global economic downturn.
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