A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU, or its predecessors), its Member States and a non-EU country or bloc of countries that governs bilateral relations. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links. The provision for an association agreement was included in the Treaty of Rome, which established the European Economic Community, as a means to enable co-operation of the Community with the United Kingdom, which had retreated from the treaty negotiations at the Messina Conference of 1955. According to the European External Action Service, for an agreement to be classified as an AA, it must meet several criteria: [1]
1. The legal basis for [association agreements'] conclusion is Article 217 TFEU (former art. 310 and art. 238 TEC)
2. Intention to establish close economic and political cooperation (more than simple cooperation);
3. Creation of paritary bodies for the management of the cooperation, competent to take decisions that bind the contracting parties;
4. Offering most favoured nation treatment;
5. Providing for a privileged relationship between the EC and its partner;
6. Since 1995 the clause on the respect of human rights and democratic principles is systematically included and constitutes an essential element of the agreement;
7. In a large number of cases, the association agreement replaces a cooperation agreement thereby intensifying the relations between the partners.— European External Action Service
The EU typically concludes Association Agreements in exchange for commitments to political, economic, trade, or human rights reform in a country. In exchange, the country may be offered tariff-free access to some or all EU markets (industrial goods, agricultural products, etc.), and financial or technical assistance. Most recently signed AAs also include a Free Trade Agreement (FTA) between the EU and the external party.
Association Agreements have to be accepted by the European Union and need to be ratified by all the EU member states and the state concerned.
AAs go by a variety of names (e.g. Euro-Mediterranean Agreement Establishing an Association, Europe Agreement Establishing an Association) and need not necessarily even have the word "Association" in the title. Some AAs contain a promise of future EU membership for the contracting state.
The first states to sign such agreements were Greece in 1961 [2] and Turkey in 1963. [3]
In recent history, such agreements have been signed as part of two EU policies, the Stabilisation and Association Process (SAp) and the European Neighbourhood Policy (ENP).
The countries of the western Balkans (official candidates Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Serbia, and potential candidate Kosovo) are covered by SAp. All six have "Stabilisation and Association Agreements" (SAA) with the EU in force.
The Eastern European neighbours of Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine are all members of the Eastern Partnership and are covered by the ENP. While Russia has a special status with the EU-Russia Common Spaces instead of ENP participation.
Meanwhile, the countries of the Mediterranean, (Algeria, Morocco, Egypt, Israel, Jordan, Lebanon, Libya, the Palestinian Authority, Syria, Tunisia) are also covered by the ENP and seven of the Mediterranean states have a "Euro-Mediterranean Agreement establishing an Association" (EMAA) with the EU in force, while Palestine has an interim EMAA in force. [4] Syria initialed an EMAA in 2008, however signing has been deferred indefinitely. Negotiations for a Framework Agreement with the remaining state, Libya, have been suspended.
Moldova and Ukraine have Association Agreements in force. Armenia completed negotiations for a AA in 2013 but decided not to sign the agreement and later signed a revised CEPA with the EU in 2017. [5] Azerbaijan was also negotiating an AA, but did not conclude one. [6]
Both the SAA and ENP are based mostly on the EU's acquis communautaire and its promulgation in the co-operating states legislation. Of course, the depth of the harmonisation is less than full EU members and some policy areas may not be covered (depending on the particular state).
In addition to these two policies, AAs with free-trade agreement provisions have been signed with other states and trade blocs including Chile and South Africa.
Trade agreements between the EU and other countries or free trade zones have differential effects on the respective economies. Agricultural industries are most significantly impacted when regional farms have to compete with large producers that gain access to markets when tariffs fall. For large agreements such as the AA with Mercosur, significant opposition exists in European countries against cheaper imports of meats and other products. [145] However, for the manufacturing sector of cars and industrial products for export, usually involving larger global corporations, relevant volume increases are obvious for the more industrialised trade members. [146]
The impact on the environment for those nations that export farm products from areas with rain forests or other ecologically relevant regions, for example in Brazil, has been increasingly documented by environmental groups opposing EU trade agreements. [147] In addition, other industries with large environmental impact such as mining are expanding in areas where the regulatory burden is low, for example in South America and Asia. Industry groups have argued that increased economic performance in those sectors will only strengthen standards in participating nations, and that EU trade agreements should go hand in hand with harmonisation efforts for environmental regulations. [148]
The European Union–Turkey Customs Union is a trade agreement between the European Union (EU) and Turkey. The agreement came into effect on 31 December 1995, following a 6 March 1995 decision of the European Community–Turkey Association Council to implement a customs union between the two parties. Goods may travel between the two entities without any customs restrictions. The Customs Union does not cover essential economic areas such as agriculture, services or public procurement.
In talks with countries that have expressed a wish to join the European Union, the EU typically concludes Association Agreements in exchange for commitments to political, economic, trade, or human rights reform in that country. In exchange, the country may be offered tariff-free access to some or all EU markets, and financial or technical assistance.
International relations between the European Union (EU) and Ukraine are shaped through the Ukraine–European Union Association Agreement and the Deep and Comprehensive Free Trade Area (DCFTA). Ukraine is a priority partner within the Eastern Partnership and the European Neighbourhood Policy (ENP). The EU and Ukraine developed an increasingly close relationship, going beyond co-operation, to gradual economic integration and deepening of political co-operation. On 23 June 2022, the European Council granted Ukraine the status of a candidate for accession to the European Union.
Economic Partnership Agreements (EPAs) are a scheme to create a free trade area (FTA) between the European Union and other countries. They are a response to continuing criticism that the non-reciprocal and discriminating preferential trade agreements offered by the EU are incompatible with WTO rules. The EPAs date back to the signing of the Cotonou Agreement. The EPAs with the different regions are at different states of play. The EU has signed EPAs with the following countries: the Southern African Development Community (SADC), ECOWAS, six countries in Eastern and Southern Africa, Cameroon, four Pacific states, and the CARIFORUM states. Their defining characteristic is that they open up exports to the EU immediately, while exports to the partner regions is opened up only partially and over transitioning periods.
The accession of Bosnia and Herzegovina to the European Union (EU) is the stated aim of the present relations between the two entities. Bosnia and Herzegovina has been recognised by the European Union as a "candidate country" for accession since the decision of the European Council in 2022 and is on the current agenda for future enlargement of the EU. Bosnia and Herzegovina takes part in the Stabilisation and Association Process and trade relations are regulated by an Interim Agreement.
Accession of Montenegro to the European Union is on the agenda for future enlargement of the EU.
The Republic of Azerbaijan and the European Union (EU) have maintained a positive relationship through the years and have become more closely linked since 1991. Azerbaijan is currently part of the European Neighborhood Policy, the Eastern Partnership and the Council of Europe. The EU is the largest foreign grant donor to and investor in Azerbaijan, both in the government sector and civil society, making available over 600 million EURO of bilateral EU assistance since 1992.
The accession of Kosovo to the European Union (EU) is on the current agenda for future enlargement of the EU. Kosovo is currently recognized by the EU as a potential candidate for accession.
New Zealand is party to 14 free trade agreements (FTAs) worldwide. Together they accounted for over 70% of New Zealand's trade in 2023.
The ASEAN–European Union relations are the bilateral foreign relations between the two organisations; the European Union (EU), and the Association of Southeast Asian Nations (ASEAN). EU and ASEAN have been interacting with each other on the economic, trade, and political levels for more than four decades. The partnership between the EU and ASEAN dates back to 1972, when the EU established ties with ASEAN. The EU became an ASEAN Dialogue Partner in 1977.
The European Union has concluded free trade agreements (FTAs) and other agreements with a trade component with many countries worldwide and is negotiating with many others. The European Union negotiates free trade deals on behalf of all of its member states, as the member states have granted the EU has an "exclusive competence" to conclude trade agreements. Even so, member states' governments control every step of the process :
Mexico and the European Economic Community (EEC) signed an agreement intending to foster economic and trade relations on 15 July 1975. Mexico and the European Union (EU) have had a free trade agreement since 2000 and the two benefit from high investment flows.
Relations between the European Union (EU) and Japan date back to 1959. They have a strong trade relationship, particularly in investment flows.
The Deep and Comprehensive Free Trade Areas (DCFTA) are three free trade areas established between the European Union, and Georgia, Moldova, and Ukraine respectively. The DCFTAs are part of each country's EU Association Agreement. They allow Georgia, Moldova, and Ukraine access to the European Single Market in selected sectors and grant EU investors in those sectors the same regulatory environment in the associated country as in the EU. The agreements with Moldova and Georgia have been ratified and officially entered into force in July 2016, although parts of them were already provisionally applied. The agreement with Ukraine was provisionally applied since 1 January 2016 and formally entered into force on 1 September 2017.
The EU-Singapore Free Trade Agreement, acronym EUSFTA, is a signed and ratified free trade and bilateral investment treaty between the European Union and Singapore. EUSFTA has been negotiated since March 2010 and its text has been publicly accessible since June 2015. The negotiations on goods and services were completed in 2012, on investment protection on October 17, 2014.
Following its withdrawal from the European Union on 31 January 2020, the United Kingdom began negotiations on several free trade agreements to remove or reduce tariff and non-tariff barriers to trade, both to establish new agreements and to replace previous EU trade agreements. Withdrawal ended 47 years of membership during which all its trading agreements were negotiated by the European Commission on behalf of the bloc. The UK did not actually withdraw from the European Single Market and the European Union Customs Union until 31 December 2020.
The Armenia–EU Comprehensive and Enhanced Partnership Agreement or CEPA is a partnership agreement between the European Union and Armenia. The agreement advances the bilateral relations between the European Union and Armenia to a new, partnership level and regulates cooperation in political and economic sectors, while enhancing trade relations. The agreement develops these areas further, providing a long-term basis for integrating and strengthening EU–Armenia relations. The agreement is also designed to bring Armenian laws and regulations gradually closer to the EU acquis.
The EU–Armenia Partnership and Cooperation Agreement (PCA) was a Partnership and Cooperation Agreement between the European Coal and Steel Community and Armenia. It was signed in Luxembourg and entered into force on 1 July 1999. The agreement served as the legal framework for EU–Armenia bilateral relations for 21 years, until its termination on 28 February 2021. The PCA was replaced by the Armenia–EU Comprehensive and Enhanced Partnership Agreement (CEPA), a more comprehensive and complex agreement, which entered into force on 1 March 2021.
In certain areas, the Agreement is also designed to bring Armenian law gradually closer to the EU acquis. However, it does not go as far as to establish an association between the EU and Armenia.