Third-country economic relationships with the European Union

The European Union has a number of relationships with nations that are not formally part of the Union. According to the European Union's official site, and a statement by Commissioner Günter Verheugen, the aim is to have a ring of countries, sharing EU's democratic ideals and joining them in further integration without necessarily becoming full member states.

The European Free Trade Association (EFTA) was created to allow European countries to partake in a free trade area with less integration as within the European Communities (later European Union). Most of the countries initially in EFTA have since joined the EU itself, so only four remain outside, Norway, Iceland, Liechtenstein and Switzerland.

The European Economic Area (EEA) agreement allows Norway, Iceland and Liechtenstein to have access to the EU single market. The four basic freedoms (goods, services, people and capital) apply. However, some restrictions on fisheries and agriculture take place.

Norway is a member of the EEA, therefore it participates in the single market, and most EU laws are made part of Norwegian law. Norway has signed the Schengen treaty, which means border checks are no longer made.

Like Norway, Iceland joined the EEA, and is considered part of the EU single market. Iceland has also signed the Schengen treaty. On 16 July 2009, Iceland applied to join the European Union.

Liechtenstein joined the EEA in 1995 and participates in the EU single market.

Switzerland referendum to join the EEA in 1992 failed, so Swiss products do not participate in the European single market. However the country recently negotiated two series of bilateral agreements with the Union. The first series, Bilateral Agreements I, consists of seven bilateral agreements and was signed in 1999 (entry into force in 2001), the main part being Free Movement of Persons (full text of the agreement). The second series, Bilateral Agreements II, relates to nine areas and was signed in 2004 (entered into full force on 30 March 2005) and includes the Schengen treaty and the Dublin Convention (full text of the agreement) (official press release).

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