The European Economic Area (EEA) was created by the Agreement on the European Economic Area, an international agreement that extends the European Union`s internal market to the member states of the European Free Trade Association. [7] The EEA links the EU Member States and three EFTA States (Iceland, Liechtenstein and Norway) to an internal market subject to the same rules. The Uk benefits from this relationship during the transition/implementation phase provided for in the Treaties. [2] These provisions aim to allow the free movement of persons, goods, services and capital within the European internal market, including the free choice of residence in any country in that region. The EEA was established on 1 January 1994 on the date of entry into force of the EEA Agreement. The contracting parties are the EU, its Member States, Iceland, Liechtenstein, Norway and the United Kingdom. [8] When they entered into force in 1994, 17 States and two European Communities were contracting parties to the EEA: the European Community, which was later integrated into the wider EU framework, and the European Coal and Steel Community, which no longer exists. The number of members increased to 30 from 2020: 27 EU Member States and three of the four EFTA Member States (Iceland, Liechtenstein and Norway). [8] The Agreement is provisionally applied in respect of Croatia, the last and last EU Member State, until ratification of its accession by all Eea Contracting Parties. [4] [13] The United Kingdom remains a member of the EEA on a transitional basis after leaving the European Union on 31 January 2020 and entering a transitional period until 31 December 2020. During the transitional period, the EEA Agreement remains unchanged and still applies to the other EEA Members and the United Kingdom, as the United Kingdom remains treated as an EEA State. [14] One EFTA member, Switzerland, has not joined the EEA, but has a series of bilateral sectoral agreements with the EU that allow it to participate in the internal market. .
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