In 1992, EFTA and the EU signed the European Economic Area Agreement in Porto, Portugal. However, the proposal for Switzerland to ratify its participation was rejected in a referendum. (Nevertheless, Switzerland has several bilateral agreements with the EU that allow it to participate in the European single market, Schengen agreements and other programmes).) Thus, with the exception of Switzerland, EFTA members are also members of the European Economic Area (EEA). The EEA comprises three member states of the European Free Trade Association (EFTA) and 28 Member States of the European Union (EU), including Croatia, which applies the agreement provisionally until it is ratified by all EEA countries.   It was created on 1 January 1994 as a result of an agreement with the European Community (which had complied with the EU two months earlier).  It allows EFTA-EEA states to participate in the EU internal market without being eu membership. They transpose almost all EU internal market legislation, with the exception of agriculture and fisheries legislation. However, they also contribute to the implementation of new EEA policies and legislation at an early stage as part of a formal decision-making process. One EFTA member, Switzerland, has not joined the EEA, but has a number of bilateral agreements, including a free trade agreement, with the EU. The European Free Trade Association (EFTA), a group of four countries – Iceland, Liechtenstein, Norway and Switzerland – has organized itself to remove barriers to trade in industrial products between them, with each nation maintaining its own trade policy vis-à-vis countries outside the group. The head office is Geneva, Switzerland. Negotiated agreement, meetings, fact sheets, circular reports What does Brexit mean for the negotiations on the free trade agreement between the EU and the NZ? In November 2012, after the Council of the European Union requested an assessment of the EU`s relations with Monaco, Andorra and San Marino, which they described as “fragmented”, the European Commission published a report setting out options for further integration into the EU.  Unlike Liechtenstein, which is a member of the EEA through EFTA and the Schengen agreements, relations with these three states are based on a set of agreements covering specific issues.
The report examined four alternatives to the current situation: citizens of EFTA Member States enjoy freedom of movement in the territories of the other country, in accordance with the EFTA Convention.  EFTA citizens also enjoy free movement in the European Union (EU). Not only are EFTA citizens and EU citizens visa-free, but they also have the right to enter and stay in other countries. The Citizens` Rights Directive (also known as the “Free Movement of Persons Directive”) defines the right of citizens of the European Economic Area (EEA), which includes the three EFTA members, Iceland, Norway and Liechtenstein, as well as EU member states. Switzerland, which is a member of EFTA but not of the EEA, is not bound by the directive, but has a separate bilateral agreement on free movement with the EU. Trade policy The EU`s position on trade, negotiating areas, background documents and news. The European Free Trade Association (EFTA) is a regional trade organisation and a free trade area made up of four European countries: Iceland, Liechtenstein, Norway and Switzerland.  The organisation works in parallel with the European Union (EU) and the four Member States participate in the European single market and are part of the Schengen area.
 However, they are not parties to the customs union of the European Union.