History of the European Free Trade Association. The EFTA was established in January of 1960, through the signing of a trade agreement at the Stockholm Convention held in the Prince’s Palace in Stockholm, Sweden. The founding members of the EFTA were: Norway, the United Kingdom, Switzerland, Sweden, Austria, Portugal, and Denmark. The European Free Trade Association The European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. It was set up in 1960 by its then seven Member States for the promotion of free trade and economic integration between its members. In 2010, the European Free Trade Association celebrated its 50th anniversary. The EFTA Convention entered into force on 3 May 1960. In connection with this milestone in EFTA's existence and the 15th anniversary of the EEA Agreement, which entered into force in 1994, EFTA organised a seminar in November 2009 in Geneva, entitled Partners in Progress.