The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway, and Switzerland. The organization operates in parallel with the European Union (EU), and all four member states participate in the EU's single market.
The EFTA was established on 3 May 1960 as an alternative trade bloc for European states who were unable or unwilling to join the then European Economic Community (EEC) (which subsequently became the EU). The Stockholm Convention, establishing EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the "outer seven").