Andorra–European Union relations
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Andorran–European relations are based on a customs union between Principality of Andorra (Catalan: Principat d'Andorra) and the European Union (EU).
The "Agreement between the European Economic Community and the Principality of Andorra" (signed 28 June 1990, entered into force 1 July 1991) establishes a customs union with most favoured nation status between the Principality and the EU. Andorra is treated as an EU state where trade in manufactured goods is concerned, but not for agricultural produce.
There are full customs checks on the EU side of the border, as Andorra has low VAT and other indirect taxes, such as those for alcohol, tobacco and petrol, from which visitors might benefit.
Andorra has a monetary agreement with the EU allowing it to make the euro its official currency, and permitting it to issue euro coins as early as 1 July 2013. They planned to issue their first coins on 1 January 2014. In October 2012, Jordi Cinca, Andorra's Minister of Finance, stated that 1 January 2014 was a more likely date to start issuing euros due to delays in adopting the legislation required by the monetary agreement. In February 2013, the Director of the Mint of Andorra Jordi Puigdemasa confirmed that Andorra would not begin issuing euros until 1 January 2014. However, since the EU did not give their approval to begin minting the coins until December 2013, their release was delayed, with Minister of Culture Albert Esteve stating that he was optimistic they would be released by March or April 2014. However, the first Andorran euro coins did not go into circulation until 15 January 2015.
Two other agreements were signed in 2003/4. The first is a cooperation agreement covering the environment, communications, information, culture, transport, regional and cross-border co-operation and social issues. However this has seen few operational results so far. There is also a taxation of savings agreement which was signed following pressure from the EU on offshore financial centres to conform to EU standards.
There is an agreement signed 2003 between France, Spain and Andorra on the movement and residence in Andorra of citizens of third States. It says that the three countries shall coordinate their visa requirements (in reality that Andorra follows the Schengen visa requirements) and that Andorra accept entry only of those who have right of entry of Spain or France. Andorra is allowed to permit long stays for any person.
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