Question

30. Consider the following statement(s) about European Free Trade Association (EFTA)
1.It is a bloc comprising of four countries - Switzerland, Norway, Iceland and Liechtenstein.
2. These all four countries are the part of the European Union.
3. EFTA was established through Stockholm Convention.
Which of the above statement(s) is/are correct?

• A. Only 1 and 2
• B. Only 2 and 3
• C. Only 1 and 3
• D. All of the above

Answer 1

The correct option is C Only 1 and 3

European Free Trade Association (EFTA) is a bloc comprising of four countries - Switzerland, Norway, Iceland and Liechtenstein. The four EFTA countries are not the part of the European Union. India and EFTA started negotiating a free trade pact in 2008, shortly after India started FTA talks with the European Union. The talks resumed last year in Geneva but hit a rough patch after the Switzerland insists on stringent IPR regime in India. This is mainly due to number of Swiss pharmaceutical MNCs, including Novartis and Roche, having been aggressively fighting for their patent rights in India over the past few years. The other areas covered by the proposed FTA include market access in goods, services, investments and public procurement. The organisation operates in parallel with the European Union (EU), and all four member states participate in the European Single Market. On 3 May 1960, the EFTA was established to serve as an alternative trade bloc for those European states that were unable or unwilling to join the then European Economic Community (EEC) (which subsequently became the European Union). The EFTA is based on the Stockholm Convention signed by the seven nations and becoming operative in May 1960. Some of the member later left and few new members joined the group, consequently the number has reduced to present four.