European Free Trade Association

Multilateral in force

INTRODUCTION

The EFTA (European Free Trade Association) is a regional organisation established in 1960, aiming to promote free trade and economic cooperation. The EFTA currently comprises four European countries: Iceland, Norway, Switzerland, and Liechtenstein. The revised 2001 EFTA Convention (in force from 1 June 2002) also facilitates the free movement of persons between EFTA Member States. This provision is particularly significant for Swiss citizens residing in another EFTA Member State or for citizens of EFTA Member States moving to Switzerland. Iceland, Norway, and Liechtenstein are also Member States of the European Economic Area (EEA); thus, they can benefit from the EEA’s free movement regime. The 1999 Agreement between the European Community and its Member States and the Swiss Confederation on the free movement of persons (hereafter referred to as AFMP), which came into force on 1 June 2002, facilitates free movement between Switzerland and EU Member States. Consequently, the EFTA regime complements these two frameworks by providing free movement between Switzerland and the other EFTA Member States.

The provisions regarding free movement in the EFTA Convention (Chapter VIII) closely mirror the free movement provisions of the AFMP, which, in turn, closely aligns with the model of EU free movement law. Its objectives include: (a) granting a right of entry, residence, access to work as employed persons, establishment on a self-employed basis, and the right to remain in the territory of the Contracting Parties; (b) facilitating the provision of services within the territory of the Contracting Parties; (c) enabling entry into and residence in the territory of the Contracting Parties for individuals without economic activity in the host country; and (d) ensuring that the same living, employment, and working conditions are afforded to these individuals as those granted to nationals (see Art. 20(2) EFTA Convention). The conditions for entry and residence are detailed in Annex K of the EFTA Convention and its three Appendices.

A note should be made regarding the free movement of persons between Switzerland and Liechtenstein. Since forming a customs union in 1923, these countries have developed strong bilateral ties. Concerning free movement of persons, a bilateral agreement in 1963 exempted nationals of both countries from the requirement to apply for a residence permit in the other country, irrespective of their employment status. This agreement was amended in 1981 by an exchange of notes "to achieve a balanced relationship between the Liechtenstein and foreign resident populations". It suspended the provisions for free movement and established that only select groups would be exempt from the residence permit requirement in both directions going forward. The EFTA Convention reinstated free movement of persons from Liechtenstein to Switzerland. However, under the Convention, Swiss citizens cannot freely settle in Liechtenstein, as it was agreed that Liechtenstein could impose restrictive measures on free movement due to its small size (see EFTA Convention – Protocol Regarding the Free Movement of Persons between Switzerland and Liechtenstein).

MEMBER STATES

SWITZERLAND
ICELAND
LIECHTENSTEIN
NORWAY

HEADQUARTERS

Geneva, Switzerland

DATE OF CREATION

4 January 1960

TIMELINE

1960	The Convention establishing the European Free Trade Association was adopted on 4 January between the Republic of Austria, the Kingdom of Denmark, the Kingdom of Norway, the Portuguese Republic, the Kingdom of Sweden, the Swiss Confederation and the United Kingdom of Great Britain and Northern Ireland.
2001	The Agreement amending the Convention establishing the European Free Trade Association is adopted at Vaduz on 21 June.
2002	The Agreement amending the Convention establishing the European Free Trade Association entered into force on 1 June.

KEY LEGAL DOCUMENTS

Convention Establishing the European Free Trade Association (Vaduz Convention) (in force 1 June 2002).

Annex K Convention Establishing the European Free Trade Association (Vaduz Convention) (in force 1 June 2002).

Protocol to Annex K Regarding the Free Movement of Persons between Switzerland and Liechtenstein.

ADDITIONAL LEGAL DOCUMENTS

Agreement between the Principality of Liechtenstein and Switzerland on the legal status of the citizens of both countries in the other contracting state with regard to aliens police of November 1963 [Vereinbarung zwischen dem Fürstentum Liechtenstein und der Schweiz über die fremdenpolizeiliche Rechtsstellung der beiderseitigen Staatsangehörigen im andern Vertragsstaat] (in force 6 November 1963) (in German).

Exchange of notes of 19 October 1981 between the Principality of Liechtenstein and the Swiss Confederation on the partial suspension of Article 3 of the Liechtenstein-Swiss Agreement of 6 November 1963 on the legal status of nationals of both parties with regard to immigration in the other contracting state [Notenaustausch vom 19. Oktober 1981 zwischen dem Fürstentum Liechtenstein und der Schweizerischen Eidgenossenschaft über die teilweise Suspendierung von Art. 3 der liechtensteinisch-schweizerischen Vereinbarung vom 6. November 1963 über die fremdenpolizeiliche Rechtsstellung der beiderseitigen Staatsangehörigen im andern Vertragsstaat] (in force 19 October 1981). (In German).