Worried that they will be frozen out of the European Community's unified market, members of the six-nation European Free Trade Assn. are negotiating closer ties with the 12-nation EC. The two blocs plan to sign a treaty in June allowing the free flow of people, nonagricultural goods, services, and capital between them.
Talks got a fresh impetus in recent months from a new Labor Party government in Norway, formerly a foot-dragger on links with the EC, and a pact among Swedish parties to seek full EC membership. Other EFTA members are Austria, Switzerland, Finland, and Iceland. Tying in to the EC will require all of them to accept major changes in their economies. For example, the EC is insisting that EFTA countries allow free entry of 70 farm products from each EC member.