As a result, the EEA agreement provides for a high level of economic integration, common competition rules, state aid rules and public procurement. Agriculture and fisheries are not covered by the EEA agreement. However, Article 19 of this directive underlines the parties` commitment to a gradual liberalisation of agricultural trade, which will be achieved through the conclusion of separate agreements on this basis. Norway`s economic and trade relations with the EU are mainly governed by the European Economic Area (EEA) agreement. Although EFTA is not a customs union and Member States have the full right to conclude bilateral trade agreements for third countries, it has a coordinated trade policy.  As a result, their Member States have concluded free trade agreements with the EU and a number of other countries.  To participate in the EU internal market, Iceland, Liechtenstein and Norway are contracting parties to the European Economic Area (EEA) agreement with the rules set by the EFTA Supervisory Authority and the EFTA Court of Justice. Instead, Switzerland has a series of bilateral agreements with the EU. 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: Norway is not in the European Union and Britain left the bloc on 31 January, but both countries still operate under the same market rules of the European Economic Area (EEA), which is made up of EU member states and EFTA (European Free Trade Association). Discussions on a comprehensive and sustainable free trade agreement are still ongoing, the ministry added. The Council examines substantive issues, including the development of EFTA relations with third countries and the management of free trade agreements, and examines the relationship with the policy and administration of EU third countries in general.