European Economic Area
|European Economic Area|
|Formation||1 January 1994|
|Agreement that extends the EU's single market to non-EU member states Iceland, Liechtenstein, and Norway.|
The European Economic Area (EEA) was established via the EEA Agreement, an international agreement which allows for the extension of the EU's single market to non-EU member parties. The EEA links the European Union member states and three EFTA states (Iceland, Liechtenstein, and Norway) into an internal market governed by the same basic rules. These rules aim to enable free movement of labour, 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 European Union (EU), its member states, and the member states of the European Free Trade Association.