This paper provides an overview of the likely impact of the creation of the European Community's (EC) internal market on the European Free Trade Association (EFTA) members. The focus is on the four freedoms and the institutional and legal changes required for increased economic cooperation between the EC and EFTA. Although not formally part of the negotiations, certain tax issues are also raised. The paper discusses the origins of the EC and EFTA and the history of their relationship. It also focuses on events since the Luxembourg Declaration, especially since the Delors Initiative.
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