The United Kingdom was still recovering from the economic cost of the
Second World War. Ireland, while an independent state, was economically dependent on the UK, which accounted for nearly 75% of Ireland's exports, as codified in the Anglo-Irish Free trade agreement of 1966. In 1960 the
European Free Trade Association (EFTA) was established and was formed by
Austria,
Denmark,
Norway,
Portugal,
Sweden,
Switzerland and the
United Kingdom. These countries were often referred to as the Outer Seven, as opposed to the
Inner Six of the founding members of the
European Community (EC). The EFTA was founded by a convention known as the Stockholm Convention in 1960, with the aim of liberalisation of trade in goods amongst its member states. On 31 July 1961 the United Kingdom, Ireland and Denmark applied to join the EC. In 1963, after negotiations, France vetoed the United Kingdom's application because of the aversion of
Charles de Gaulle to the UK, In the 1970s, the EFTA states concluded free trade agreements with the EC. == Impact ==