At present, there are four multi-lateral

free trade area A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...

s in Europe, and one former free trade area in recent history. Note that there are also a number of bilateral

free trade agreements A free-trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occu ...

between states and between trade blocks; and that some states participate in more than one free trade area.

EU

The European Union (EU) has always operated as more than a free trade area with its predecessor, the

European Economic Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisbo ...

(EEC) being founded as a

customs union A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a) Customs unions are established through trade pacts where the participant countries set up ...

. The EU has free trade agreements to varying levels with most other European countries. ;EU Single Market The EU shares its single market with three EFTA members via the European Economic Area agreement, and the remaining EFTA member— Switzerland—via bilateral agreements. ;EU Customs Union The

European Union Customs Union The European Union Customs Union (EUCU), formally known as the Community Customs Union, is a customs union which consists of all the member states of the European Union (EU), Monaco, and the British Overseas Territory of Akrotiri and Dheke ...

is a

which consists of all the member states of the European Union and Turkey, San Marino, Monaco, Andorra and the UK territory of

Akrotiri and Dhekelia Akrotiri and Dhekelia, officially the Sovereign Base Areas of Akrotiri and Dhekelia (SBA),, ''Periochés Kyríarchon Váseon Akrotiríou ke Dekélias''; tr, Ağrotur ve Dikelya İngiliz Egemen Üs Bölgeleri is a British Overseas Territories ...

which are outside of the EU. In addition to allowing for free trade between states, the customs union imposes a

common external tariff A common external tariff (CET) must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which ...

on all goods entering the area.

EFTA

The European Free Trade Association (EFTA) was created in 1960 by the outer seven (as a looser alternative to the then-

European Communities The European Communities (EC) were three international organizations that were governed by the same set of institutions. These were the European Coal and Steel Community (ECSC), the European Atomic Energy Community (EAEC or Euratom), and the E ...

) but most of its membership has since joined the Communities/EU leaving only four countries ( Iceland, Norway, Switzerland and Liechtenstein) still party to the treaty. The United Kingdom is the only former EFTA member which is not currently part of the EU, following its withdrawal in 2020.

CEFTA

Following the fall of the Iron Curtain, two free trade areas were created in

Central Europe Central Europe is an area of Europe between Western Europe and Eastern Europe, based on a common historical, social and cultural identity. The Thirty Years' War (1618–1648) between Catholicism and Protestantism significantly shaped the ar ...

, the Baltic Free Trade Area (BAFTA) and the

Central European Free Trade Agreement The Central European Free Trade Agreement (CEFTA) is an international trade agreement between countries mostly located in Southeastern Europe. Founded by representatives of Poland, Hungary and Czechoslovakia, CEFTA expanded to Albania, Bosnia and ...

(CEFTA), in order to stabilise these countries for membership of the EU. With the 2004 EU enlargement, the original members of both of these have left these agreements and joined the EU. CEFTA has expanded into southern Europe with members from the Western Balkans and

Moldova Moldova ( , ; ), officially the Republic of Moldova ( ro, Republica Moldova), is a Landlocked country, landlocked country in Eastern Europe. It is bordered by Romania to the west and Ukraine to the north, east, and south. The List of states ...

. All of the new CEFTA countries, except for Moldova, are prospective members of the EU and hence EFTA is the only free trade area with a long-term future, as there are no immediate plans for these countries to change their present status. However, CEFTA may gain new members in the form of countries neighbouring the present EU.

CISFTA

The Commonwealth of Independent States had been negotiating a CIS free trade area since 1994 and in 2011 eight countries agreed to create a free trade area. These are; Russia, Ukraine, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Armenia and Moldova. In addition, Belarus, Kazakhstan, Russia, Armenia, and Kyrgyzstan form the Eurasian Economic Union, including a customs union and a single market.

GUAM

The GUAM Organization for Democracy and Economic Development is a regional organization and free-trade area in Eastern Europe composed of

Georgia Georgia most commonly refers to: * Georgia (country), a country in the Caucasus region of Eurasia * Georgia (U.S. state), a state in the Southeast United States Georgia may also refer to: Places Historical states and entities * Related to the ...

Azerbaijan Azerbaijan (, ; az, Azərbaycan ), officially the Republic of Azerbaijan, , also sometimes officially called the Azerbaijan Republic is a transcontinental country located at the boundary of Eastern Europe and Western Asia. It is a part of t ...

, Ukraine, and

Historical

BAFTA

The Baltic Free Trade Area was a

free trade agreement A free-trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occu ...

between Estonia, Latvia and Lithuania that existed between 1994 and 2004. BAFTA was created to help prepare the countries for their accession to the EU. Hence, BAFTA was created more as an initiative of the EU than out of a desire for

Baltic states The Baltic states, et, Balti riigid or the Baltic countries is a geopolitical term, which currently is used to group three countries: Estonia, Latvia, and Lithuania. All three countries are members of NATO, the European Union, the Eurozone, ...

to trade between themselves: they were more interested in gaining access to the rest of the European markets. BAFTA's agreement was signed by the three states on 13 September 1993 and came into force on 1 April 1994. On 1 January 1997 the agreement was extended to cover trade in

agricultural Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people ...

produce. On 1 May 2004, all three states joined the European Union, and BAFTA ceased to exist. BAFTA was part of general co-operation between the three countries under the

Baltic Assembly The Baltic Assembly (BA) is a regional organisation that promotes intergovernmental cooperation between Estonia, Latvia, and Lithuania. It attempts to find a common position in relation to many international issues, including economic, political ...

—modelled on Nordic co-operation (see Nordic Council). As well as the free trade area, they formed a common visa area. Leaders continue to meet regularly, however the assembly now focuses on international issues, including economic development, and military co-operation due to the proximity of

Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eight ...

.Baltic regional co-operation, Iivi Zájedová
, Slovenská politologická revue

References

{{DEFAULTSORT:Free Trade Areas In Europe Trade blocs History of the European Union Europe

EU