European Economic Area (EEA)
A free trade area that includes the European Union (EU) and three of the European Free Trade Association (EFTA) countries: Iceland, Liechtenstein, and Norway.
The European Economic Area (EEA) is a free trade area that includes the European Union (EU) and three of the European Free Trade Association (EFTA) countries: Iceland, Liechtenstein, and Norway. The EEA was established in 1994 and its main purpose is to allow for the free movement of goods, capital, services, and people between the EU and the EFTA countries.
The EEA countries have access to the EU’s single market, which allows them to participate in the free trade of goods and services among the EU member states. They also have to adopt EU legislation related to the single market, such as competition and state aid rules, consumer protection, and environmental standards.
However, the EEA countries are not members of the EU and therefore do not participate in certain EU policies such as the Common Agricultural Policy and the Common Fisheries Policy, and they don’t have representation in the EU institutions like the European Parliament and the Council of the European Union. They also do not participate in the EU’s Common Foreign and Security Policy, and in the Justice and Home Affairs.
In summary, the EEA is a free trade area that includes the EU and three EFTA countries, it allows for the free movement of goods, capital, services and people and also the adoption of EU legislation related to the single market, but unlike the EU, the EEA countries do not participate in some EU policies and do not have representation in EU institutions.