International News

Andorra European Union: Agreement 2023?

Jose Maria Alfin
October 6, 2023

Andorra has been negotiating a potential agreement of association since 2014, and next year could be key

Andorra, together with other two European micro-estates, is about to close an historic agreement.

The negotiations have been very complex due to the particularities of these European microstates; low taxes or no direct taxation and barriers or certain limitations to the EU's central freedoms (such as the free movement of people, the free movement of corporations, the free movement of capitals and more).

In the past, Andorra had agreed on many important issues, such as:

  1. Monetary Agreement to adopt Euro as official currency
  2. Schengen visa requirements
  3. Customs Agreement (partial)

After many years of negotiations, the European Union has disclosed that a final association agreement will be executed by the end of 2023. it is clear that Andorra won't be part of full EU member. the European external action service is in charge of this agreements.

The key points are almost clear:

Transition period about tobacco.
Customs Union will be further developed.
Commitment to respect the current low tax rates.
Implementation of all the other freedoms, a progressive elimination of monopolies.
In summary, although Andorra will not be a full member of the European Union, we are very near to joining the European Union as an associated member by 2023. As an associated member, Andorra would have full access to the EU's internal market and must implement most EU rules and regulations. This potential agreement highlights Andorra's commitment to closer political and economic ties with the European Union.

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