The EFTA Surveillance Authority, a body that polices the EEA agreements in Iceland, Norway and Liechtenstein, has already started legal proceedings against Iceland.

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But the Efta was less powerful and so the UK joined the EU in 1973 - followed in 1994 by other Efta members including Sweden.

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When the original six member states founded the EU (then called the European Economic Community) in 1958, the UK instead set up the European Free Trade Area (Efta).

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The dispute will be heard by the Luxembourg-based EFTA Court.

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In particular, it would require local authorities to make information about the proportion of recycled materials that is processed outside the European Community and European Free Trade Area (EFTA) publicly available.

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