The European Free Trade Association has four member countries: Iceland, Liechtenstein, Norway and Switzerland.
EFTA was established in 1960 by the Stockholm Convention as an alternative to the European Economic Community for countries that wanted freer trade without joining a customs union. Its original membership was larger, but most founding members later joined the European Communities or the European Union.
Today, EFTA focuses on free trade and economic cooperation among its four members. Iceland, Liechtenstein and Norway participate in the European Economic Area, linking them to the EU single market. Switzerland has separate bilateral agreements with the European Union instead.
EFTA is not the same institution as the European Union. It also administers a network of free-trade agreements with countries outside Europe, while its members retain their own national trade policies.