EFTA parliamentarians and social partners reflect positively on EFTA’s achievements and outlook in challenging geopolitical context

A key focal point of the discussions was how current geopolitical developments and national security concerns are affecting the functioning of the multilateral rules-based system, and what this means for EFTA’s future orientation. Committee members also discussed how improved standards and norms in the field of sustainability driven by the EU have the potential to affect the independent trade policies of the EFTA States. They further reviewed ongoing third-country processes with a view to diversifying and fostering the resilience of the EFTA States’ economies. The meeting was chaired by Ingibjörg Ólöf Isaksen (Icelandic Parliament), Vice Chair of the EFTA PC, and Sigríður Mogensen (Confederation of Icelandic Enterprises), Chair of the EFTA CC.

In her introduction, Ms Mogensen stressed that the profound evolution currently taking place in international relations was impacting EFTA’s operations. At the same time, the EFTA States “needed to adapt to the policy responses of our major economic political and economic partners, such as the EU and the US”.

Reflecting on these challenges, Guy Parmelin, Federal Councillor and Ministerial Chair of the EFTA Council, referred to a meeting of the State Secretaries of the EFTA States, who had convened to discuss EFTA’s current and future trade policy. He stressed that more internal reflections in this regard would be necessary when moving forward.

Trade with India and Mercosur on the agenda

During the meeting with the Ministers, EFTA parliamentarians and social partners particularly welcomed the conclusion and signing of the Trade and Economic Partnership Agreement with India in March 2024. Ms Isaksen believed that “this major achievement demonstrates that EFTA can have success if we work together, also at the highest political level”, referring also to the EFTA PC third-country visit to New Delhi and Mumbai in 2023.

Against the backdrop of a series of high-level meetings with Mercosur, including a delegation visit by the EFTA PC to Argentina and Brazil in March 2024, both committees welcomed the coordinated efforts from all the EFTA countries to accelerate talks with this strategic partner, and hoped for a swift finalisation of the agreement.

Meeting with Chilean Foreign Affairs Minister van Klaveren

Another highlight of the meeting was a discussion with Chilean Foreign Affairs Minister Alberto van Klaveren. It followed the signing of the modernised EFTA–Chile Free Trade Agreement (FTA) earlier that day. Ms Isaksen underlined that the signing of the agreement, five years after the beginning of negotiations, demonstrated a joint commitment to deepening the already well-established economic relations between the two sides.

The state of play of the modernisation and expansion of the FTA with Ukraine was also discussed, as well as negotiations with the Republic of Kosovo. Given the critical situation of the Ukrainian economy, members advocated for a swift conclusion of the process. Ministers, parliamentarians and social partners also exchanged views on the status of negotiations with Malaysia, Singapore, Thailand and Vietnam. All of these processes bore much potential for the economies of the EFTA countries. Lastly, participants discussed transatlantic relations and the possibility of deepening the EFTA–US Trade Policy Dialogue.

At their joint meeting, the parliamentarians and social partners discussed the state of play of the sustainability impact assessment with Thailand, and had an exchange on the Corporate Sustainability Due Diligence Directive. This directive will require further obligations in the fields of sustainability, labour and human rights for companies operating within the European Economic Area (EEA) or accessing the Single Market.

Focus on green transition and labour rights commitments

At their internal meeting, members of the EFTA PC exchanged views on the future of nuclear energy and the green transition, following a briefing by a representative of Transmutex, which has developed a technology to mitigate risks and deal with nuclear waste. EFTA parliamentarians also discussed the latest political developments in the EFTA countries since their last meeting, endorsed their work programme for the rest of the year, and decided that they would undertake their yearly delegation visit to Malaysia in 2025.

The EFTA CC discussed labour rights commitments in the FTA with India with a representative from the International Labour Organization, as well as the outcome of the EFTA PC third-country visit to Mercosur. Social partners also reported on the key priorities of their respective organisations on trade and EEA EFTA topics.

The EFTA PC and EFTA CC are EFTA advisory bodies. The EFTA PC is a forum of parliamentarians from the four EFTA countries, while the EFTA CC brings together representatives of trade union confederations and employers’ associations in the four EFTA countries. The mission of both committees is to scrutinise and provide advice on EFTA trade relations with third countries, as well as on relations with the EU through the implementation of the EEA Agreement. They are vital platforms for dialogue and consultation on social, economic and political aspects of EFTA FTAs, and the functioning of the EEA.