EFTA has concluded several free trade agreements with third countries, as well as declarations of cooperation and joint working groups on improving trade. At present, in addition to the 28 Member States of the European Union, the EFTA States have established preferential trade relations with 24 States and territories.  The Faroe Islands already have an important bilateral free trade agreement with Iceland, known as the Hoyvík Agreement. An agreement between the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland). The convention was originally signed in 1960. Iceland became a member of EFTA in 1970. The revised EFTA Agreement entered into force on 1 June 2002. After the Council of the European Union requested, in November 2012, an assessment of the EU`s relations with Monaco, Andorra and San Marino, which they described as “fragmented”, the European Commission published a report outlining the possibilities for further integration into the EU.  Unlike Liechtenstein, which is a member of the EEA through EFTA and the Schengen Agreement, relations with these three states are based on a series of agreements covering specific issues. The report examined four alternatives to the current situation: originating products within the meaning of the EEA (European Economic Area) Agreement, the EFTA Agreement, the Agreement between the EEC and Iceland and other free trade agreements between Iceland and other countries may benefit from preferential treatment (duty-free imports) if the following documents are submitted: the EEA Agreement creates a high level of economic integration, common competition rules, for State aid and public procurement between Iceland and the EU. The European Free Trade Association (EFTA) is an intergovernmental organisation that promotes free trade and the economic integration of its four members. Iceland, Liechtenstein, Norway and Switzerland. The EFTA Agreement governs trade between the EEA-EFTA States and Switzerland.
The EFTA States have also developed a global network of free trade agreements with countries outside the European Union (EU) to ensure competitive and predictable conditions for their businesses and trading partners. As a Member State of the European Economic Area, Iceland fully applies EU legislation on the four freedoms (free movement of goods, persons, services and capital) as well as legislation on other areas of cooperation between the EU and the EEA. 78% of Iceland`s exports were to the EU and 52% of Iceland`s imports came from the EU, making the EU Iceland`s main trading partner, followed by Norway. Traditionally, Iceland`s economy has focused on fishing and renewable energy, but it has diversified into aluminum production, pharmaceuticals, information technology, tourism, and the financial sector. . . .