EFTA promotes itself on jubilee

By Kim Se-jeong

Staff reporter

The European Union, the largest organization in Europe with 27 member states is familiar to many, but few are aware of which countries are not part of the EU -- Switzerland, Norway, Iceland and Liechtenstein.

Again, many are familiar with the Korea-EU Free Trade Agreement (FTA) signed last year and are waiting for it to take effect, but are ignorant of the FTA between Korea and those four non-EU members, called the European Free Trade Association (EFTA).

In fact, the FTA with EFTA has already been in place since September 2006.

The agreement allowed a cheaper flow of goods, services, investments and intellectual properties between the two regions, generating nearly $5.7 billion worth of two-way trade.

The current challenge for the EFTA is a lack of awareness about Korea in their home countries, and that's why the embassies of two of the member states in Seoul -- Switzerland and Norway -- organized a rare seminar, maybe the first of its kind in Korea.

Plus, "EFTA is celebrating its 50th anniversary," Swiss Ambassador to Seoul Thomas Kupfer said as to why he and his Norwegian colleague Didrik Tonseth felt strongly about organizing the seminar.

A half-day long session held last Wednesday resulted in the underlying conclusion: the FTA between Korea and EFTA has been successful.

And it had convincing evidence.

For Norway, the world's second largest seafood export country, the FTA meant a bigger market share of salmon and mackerel in Korea, according to Hans Petter Naes, director for the Norwegian Seafood Export Council.

It also had a big surge in trading goods and transfering of human resources in shipbuilding with Korea.

Swiss pharmaceutical firms have also seen an immense increase of investment in Korea. Sunuk Kim, general manager of AKRIS Korea, a Swiss clothing brand, also said his company benefited from the free trade accord.

Figures also provide irrefutable testimony. According to Didier Chambovey, deputy secretary general of the EFTA, trade between 2005 and 2009 has almost doubled.

Also the size of investment has grown, reaching nearly $3 billion in 2009.

The EFTA was first formed in 1960 with seven founding members -- Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom.

It and the EU have been co-existing, and the European countries have chosen to join one or the other.

In 1961, Finland joined, and left again in 1995.

Iceland joined in 1970, Liechtenstein in 1990. Denmark and the United Kingdom left in 1973 to join the EU and so did Austria and Sweden in 1995.

The organization maintains a narrow focus of promoting free trade and economic integration among the member states, a factor that distinguishes EFTA from the EU, which pursues a wider spectrum of integration.

That means that EFTA member states won't expect other member states to support or help when one is in trouble, like as seen in the recent Greek financial crisis.

Greece asked for an EU bailout.

Some member states of EFTA wouldn't mind having greater support.

Kristin A. Arnadottir, Irish ambassador-designate to Korea, said the government of Iceland wants "to be part of a group," that would offer real support when her country is in trouble.

"It's important that we have support if something happens," she said. Iceland is currently pursuing EU membership.