EU-EFTA RELATIONS

: AN HISTORICAL APPRAISAL

Abstract

EFTA’s relations with the European Union (EU) are as old as the Union itself. However, they may receive a new impetus in the coming years as the United Kingdom leaves the European Union and explores new commercial relationship with the rest of the continent. Initially, the EEC and EFTA were perceived as rival organizations, but after decades of collaboration and mutual understanding both have come considerably closer. The EU-EFTA relations are a very good example of group-to-group approach with same values, cultures, histories and political systems. After the Brexit vote, there is a growing assumption that Britain might join the EEA to lessen its financial burden and enjoy the benefits of a single market. Some circles in Britain are of the view to adopt the Swiss model, neither a full member of Union nor an EEA member but have access to Single Market through bilateral agreements. The question is that is there any point that EU reward Britain for leaving the Union.