EFTA States Procurement

The European Free Trade Association (EFTA) currently has four members: Norway, Iceland, Liechtenstein, and Switzerland. These countries are not EU member states, but they have extensive economic relationships with the EU that include significant procurement market access. The precise nature of that access differs by country, which matters practically for suppliers seeking to bid across European borders.

What is EFTA States Procurement?

EFTA is the association, but the procurement access of its members does not flow from EFTA itself. Instead, it flows from separate agreements that each country has concluded with the EU.

Norway, Iceland, and Liechtenstein are members of the European Economic Area (EEA). The EEA Agreement incorporates EU procurement directives (including Directive 2014/24/EU and Directive 2014/25/EU) into the legal order of those three countries. Suppliers from Norway, Iceland, and Liechtenstein therefore have substantively the same rights as EU suppliers to compete for above-threshold contracts across the EU and EEA. Their contracting authorities must publish above-threshold notices on TED and apply equivalent procedural rules.

Switzerland is the outlier. Switzerland rejected EEA membership in a 1992 referendum and instead negotiated a series of bilateral sectoral agreements with the EU. Procurement is covered by the Agreement on Certain Aspects of Government Procurement, which came into force in 2002. This agreement aligns Swiss procurement rules with EU standards at the federal and cantonal level, provides EU suppliers with access to the Swiss market for above-threshold contracts, and gives Swiss suppliers access to EU markets. However, the bilateral framework is less comprehensive than EEA membership and is subject to periodic renegotiation. See Swiss-EU bilateral procurement agreement for detail.

In addition, all four EFTA states are signatories to the WTO Government Procurement Agreement (GPA), which provides a baseline level of market access for suppliers from other GPA signatories (including the UK, US, Canada, Japan, and others) for above-threshold contracts.

Why it matters for bidders

For a supplier based in the EU or EEA trying to expand into Switzerland, the bilateral agreement route means access is real but operates under a slightly different legal framework than the EEA regime. For a Swiss supplier bidding into the EU, the same applies. Suppliers should verify that the specific contract type and value fall within the scope of the bilateral agreement, since not all Swiss contracting authorities and not all contract categories are covered to the same extent as under the EEA framework.

For suppliers from Norway, Iceland, or Liechtenstein, the practical experience of bidding into EU markets is very similar to cross-border procurement between EU member states, with the mutual recognition of qualifications principle applying and ESPD available for self-declaration.

Example

A Norwegian construction firm identifies a contract published on TED by an Italian regional authority. Because Norway is an EEA member, the firm has full participation rights under Directive 2014/24/EU as incorporated into EEA law. A Swiss construction firm seeking to bid on the same contract would rely on the bilateral agreement framework, which covers the construction sector for contracts above the relevant threshold.

Frequently Asked Questions

Is EFTA the same as the EU?

No. EFTA is a separate international organisation founded in 1960 as an alternative to the then-EEC. Three of its current four members (Norway, Iceland, Liechtenstein) have closely aligned their markets with the EU through the EEA. Switzerland has a separate bilateral relationship. None of the four are EU member states.

Can non-EEA EFTA states (Switzerland) use the ESPD?

The ESPD is an EU instrument. Switzerland can accept or require it at the discretion of individual contracting authorities, but there is no legal obligation equivalent to that in EU or EEA states. In practice, many Swiss federal contracting authorities accept the ESPD from EU bidders, but suppliers should verify the tender documents.

Does the WTO GPA cover all EFTA state procurement?

The GPA covers a defined list of entities and contract types, not all public procurement. EFTA states list their covered entities in their GPA annexes. For the EEA members, the EU procurement directives are more comprehensive than the GPA for within-EEA contracts; the GPA primarily governs access from third-country suppliers outside the EEA.