The European Economic Area (EEA)

Special arrangements are in force for West European countries outside the Union. The European Economic Area extends the EU single market to members of the European Free Trade Association (EFTA). Created in 1994, the EEA is a single market of the EU and three EFTA countries. The EU and EFTA act separately in cases concerning anti-dumping trade sanctions and in international trade negotiations.

EEA members share the EU's single market legislation for the removal of physical, technical and fiscal barriers to trade, and abide by EU legislation in such fields as competition policy (anti-trust, mergers, public procurement and state aids), company law, consumer protection, environment, research and development, education, social policy, mutual recognition of professional qualifications, and contributions to EU structural funds.

EFTA was formed in 1960. The EEA included six of its member countries, three of which joined the EU as full members in 1995. EFTA's remaining members are Iceland, Liechtenstein, Norway, and Switzerland. In a 1993 referendum, Switzerland decided not to join the EEA.