European Economic Area 2
European Economic Area 2 : The EEA, which became effective in January 1994, consists of Austria, Finland, Iceland, Norway, Sweden and the 12 member nations of the European Union. The EEA, encompassing an area inhabited by 370 million people, allows for the free movement of goods, persons, services and capital throughout all 17 countries. It also opens cooperation possibilities in many areas, including research and development, environment, promotion of tourism, social, and consumer policy. Following the negative result of the Swiss referendum in December 1992, the remaining six countries of the European Free Trade Association (Austria, Finland, Iceland, Liechtenstein, Norway, and Sweden) signed an Adjusting Protocol in March 1993 with the intent to proceed without Switzerland. The Adjusting Protocol contains provisions which allow Switzerland to participate in the EEA at a later stage if it so wishes. Liechtenstein will remain a Contracting Party to the European Economic Area Agreement, but it will not be part of the EEA until the EEA Council decides that the accord's good functioning will not be impaired. Liechtenstein's status in the EEA accord was reviewed following Switzerland's negative vote on the EEA in a December 1992 referendum. In particular, Liechtenstein's customs union with Switzerland requires renegotiation. Significant differences exist between the EEA and full membership in the European Economic Community (EEC). The EEA is a free trade area, not a customs union. Border controls between the EEC and EFTA, while relaxed, are expected to continue. EFTA will not adopt the EEC's Common Customs Tariff nor participate in the Common Commercial Policy or Common Agricultural Policy. EFTA nations will continue to set their own tariffs for third countries subject to GATT and OECD agreements. Further change is anticipated with Austria, Finland, Norway, and Sweden expected to join the European Economic Community by January 1995 or shortly afterwards. See: European Economic Community European Free Trade Association European Union
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