Free Trade Agreement (FTA) between the Republic of Turkey and EFTA States was signed on 10 December 1991 in Geneva and entered into force on 1 April 1992 as the first FTA of Turkey even before the Customs Union.

After six rounds of negotiations, a modernised version of this Agreement was signed in Iceland on 25 June 2018. The new FTA entered into force on 1 October 2021 after both Parties completed their ratification procedures.

There are no tariffs and non-tariff barriers in trade between the Parties. The Agreement regulates numerous areas including trade in goods (industrial products, fish and marine products and processed agricultural products), trade in services, the protection of intellectual property rights, competition, trade and sustainable development, institutional provisions and dispute settlement. In addition, there are bilateral agreements on agriculture between Turkey and each EFTA State.