European Free Trade Association

The Council of Ministers of the European Free Trade Association (EFTA) held its third meeting in Geneva from February 14 to 16, 1961, under the chairmanship of Mr. Maudling, President of the Board of Trade of the United Kingdom. The main topics of discussion were 1) the advancement of the timetable for the reduction and elimination of tariffs within EFTA, and 2) the proposed association of Finland with EFTA. The Ministerial Council decided to bring forward by six months to July 1, 1961, the date by which the next 10 percent reductions were to be made in the tariffs applied within EFTA. The Ministers stated in the final communiqué of the meeting that the Council should pursue at official level the examination of the possibility of advancing the timetable for reducing and eliminating the tariffs applied within EFTA. The basic objective was to ensure that by January 1, 1970, if not before, goods manufactured within the area would be traded among the seven as if no frontiers existed. The Council agreed that this examination should be carried out at the same time as the following studies previously planned for 1961 in accordance with other provisions of the EFTA convention: 1) dismantling quantitative restrictions; 2) abolishing subsidized agricultural exports; and 3) facilitating the expansion of trade in agricultural goods. The Ministers also reached agreement on the form of association to be offered to Finland. Under the formula decided upon, Finland would in no sense be a member of EFTA but would have an ultimately tariff-free market for her exports in the seven EFTA countries. A separate free trade area was to be formed between Finland on the one hand and the seven EFTA members on the other, and a special council was to be created for matters affecting Finland alone. Finland would not be treated as an EFTA member but would be allowed to retain its existing trade agreements with the Soviet Union without exposing EFTA members to an irresistible demand for the same benefits. On March 27, 1961, it was announced by the press that Finland had signed the agreement linking her with EFTA.