European Free Trade Association (EFTA)
description
Transcript of European Free Trade Association (EFTA)
KhemaphanKhemaphan Hoontrakul 5004640446Hoontrakul 5004640446
Phanomkwan Devahastin 5004640768Phanomkwan Devahastin 5004640768
European Free Trade European Free Trade Association (EFTA)Association (EFTA)
The European Free Trade Association (EFTA) was established on 3 May 1960 as a trade bloc-alternative for European states who were either unable to, or chose not to, join the then European Economic Community
(now the European Union (EU). The EFTA Convention was signed on 4
January 1960 in Stockholm by the “outer seven states” which includes Austria, Denmark, Norway, Portugal, Sweden, Switzerland and UK.
Today only Iceland, Norway, Switzerland, and Liechtenstein remain
members of EFTA.
1960 Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the UK establish EFTA1970 Iceland becomes a member of EFTA1972 Denmark and the UK leave EFTA to join the EEC (EU)1985 Portugal leaves EFTA to become a member of the EEC (EU)1986 Finland becomes a full member of EFTA1991 Liechtenstein becomes a member of EFTA1995 Austria, Finland and Sweden leave EFTA to join the EU
EFTA and the EU 2009EFTA and the EU 2009
- Currently, the EFTA States have established preferential trade relations with 20 States and Territories, in addition to the 27 Member States of the European Union.
- EFTA FTAs establish a free trade area between the p artner countries, by providing for free trade in industr
ial goods, including fish and other marine products and processed agricultural products
- Trade in basic agricultural products is covered in bil ateral agreements between the individual EFTA State
s and the partner country, which form part of the inst ruments establishing the free trade area.
Nations the EFTA has an FTA with in dark blue, negotiating an
FTA with in dark cyan, has a declaration on cooperation with in
purple, and is in a "joint workgroup" with in dark red; the EFTA is
light green.
- The Free Trade Agreement between EFTA and Canada entered into force on 1 July 2009.
- The EFTA-Canada Free Trade Agreement, which is focused on trade in goods, has the potential to yield significant benefits for exporters in all five participating countries.
- It provides new links between European and North-American supply and value chains.
- The areas of services, investment and government procurement are the subject of reviews foreseen within three years after the entry into force. - The EFTA States’ main exports to Canada are mineral fuels, pharmaceutical and chemical products, as well as machinery.- Canada primarily exported nickel, aircraft, pharmaceutical products, machinery and mechanical appliances to EFTA.
Canada’s top Commodity exports to Canada’s top Commodity exports to EFTA member states (2008)EFTA member states (2008)
62.73%
9.60%
8.85%
6.02%
2.04%
1.99%
1.75%
1.38%
1.29% 1.18% Nickel
Aircraft
Pharmaceuticals
Machinery
Vehicles
Electrical machinery
Medical Instruments
Cereals
Mineral Fuels
Arts/Antiques
Canada’s top Commodity imports Canada’s top Commodity imports from EFTA member states (2008)from EFTA member states (2008)
Mineral fuels
Pharmaceutical
Organic chemicals
Machinery
Medical Instruments
others
Electrical machinery
Clocks and watches
Precious stones and metals
Cocoa
ConclusionConclusion- Iceland, Switzerland and Liechtenstein have small population Iceland, Switzerland and Liechtenstein have small population
and limited natural resources, making them likely to benefit and limited natural resources, making them likely to benefit from import of natural resources, and manufactured products from import of natural resources, and manufactured products from Canada.from Canada.
- Norway, however, has larger land and natural resources Norway, however, has larger land and natural resources compared to other members which can make them benefit compared to other members which can make them benefit from increase in exports to Canada.from increase in exports to Canada.
- Canada will benefit from exporting mineral and agricultural Canada will benefit from exporting mineral and agricultural products to EFTA members, while EFTA will benefit from products to EFTA members, while EFTA will benefit from exporting marine product, fuels and capital goods.exporting marine product, fuels and capital goods.
- Both EFTA and Canada will benefit from the Both EFTA and Canada will benefit from the bilateral agreementbilateral agreement
http://en.wikipedia.org/wiki/European_Free_Trade_Association#EFTA_and_the_European_Union
http://www.efta.int/
http://www.efta.int/content/free-trade/trade-statistics/canada-commodities.pdf