The
European Free Trade Association (
EFTA) is a
common market consisting of four European countries that operates in parallel withand is linked tothe
European Union (EU). The EFTA was established on 3 May 1960 as a
trade bloc-alternative for European states who were either unable or unwilling to join the then-
European Economic Community (EEC) which has now become the EU. The Stockholm Convention, establishing the EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the "
outer seven").