A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU), its Member States and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links.
Association Agreements are broad framework agreements between the EU (or its predecessors) and its member states, and an external state which governs their bilateral relations. 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 third country.
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. [140] 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. [141]
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. [142] 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. [143]
The European Economic Area (EEA) was established via the Agreement on the European Economic Area, an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association. The EEA links the EU member states and three EFTA states into an internal market governed by the same basic rules. These rules aim to enable free movement of persons, goods, services, and capital within the European single market, including the freedom to choose residence in any country within this area. The EEA was established on 1 January 1994 upon entry into force of the EEA Agreement. The contracting parties are the EU, its member states, and Iceland, Liechtenstein, and Norway. New members of EFTA would not automatically become party to the EEA Agreement, as each EFTA State decides on its own whether it applies to be party to the EEA Agreement or not. According to Article 128 of the EEA Agreement, “any European State becoming a member of the Community shall, and the Swiss Confederation or any European State becoming a member of EFTA may, apply to become a party to this Agreement. It shall address its application to the EEA Council.” EFTA does not envisage political integration. It does not issue legislation, nor does it establish a customs union. Schengen is not a part of the EEA Agreement. However, all of the four EFTA States participate in Schengen and Dublin through bilateral agreements. They all apply the provisions of the relevant Acquis.
At present, there are six multi-lateral free trade areas in Europe, and one former free trade area in recent history. Note that there are also a number of bilateral free trade agreements between states and between trade blocks; and that some states participate in more than one free trade area.
The European Neighbourhood Policy (ENP) is a foreign relations instrument of the European Union (EU) which seeks to tie those countries to the east and south of the European territory of the EU to the Union. These countries include some who seek to one day become either a member state of the European Union, or become more closely integrated with the European Union. The ENP does not apply to neighbours of the EU's outermost regions, specifically France's territories in South America, but only to those countries close to EU member states' territories in mainland Europe.
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.
Relations between the European Union (EU) and Moldova are currently shaped via the European Neighbourhood Policy (ENP), an EU foreign policy instrument dealing with countries bordering its member states.
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 is the stated aim of the present relations between the two entities. Bosnia and Herzegovina has been recognised by the EU 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.
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.
The ASEAN–European Union relations are the bilateral foreign relations between the two organisations; the European Union (EU), and the Association of South-East 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–South Korea Free Trade Agreement is a free trade agreement between the European Union (EU) and South Korea. The agreement was signed on 15 October 2009. The agreement was provisionally applied from 1 July 2011, and entered into force from 13 December 2015, after having been ratified by all signatories.
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 :
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 future enlargement of the Eurasian Economic Union is theoretically open to any of the post-Soviet states and potentially any country of Europe or Asia. In order to accede, a state must fulfill certain economic and political requirements. Enlargement of the Eurasian Economic Union is also subject to the consent of all existing members and the candidate's adoption of existing EEU laws and implementing previous decisions made by the Eurasian Economic Commission. The present agenda of the enlargement of the Eurasian Economic Union is primarily focused on Tajikistan. Meanwhile, Moldova was granted Observer Status in April 2017, followed by Uzbekistan and Cuba in December 2020. The process of enlargement is referred to as Eurasian integration or Eurasianism. This term is also used to refer to the intensification of economic cooperation between Eurasian Economic Union member states.
New Zealand and the European Union (EU) have solid relations and increasingly see eye-to-eye on international issues. The EU-New Zealand relations are founded on a Joint Declaration on Relations and Cooperation, first agreed in 2007. It covers not just economic relations, but broader political issues and cooperation.
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 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.