The Association Agreement between Andorra and the European Union: objectives, scope and implications

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🔭 Main objectives of the Andorra–EU Association Agreement

The Association Agreement between the Principality of Andorra and the European Union is not a preliminary step toward EU membership, but ⚠️ a legal framework to integrate Andorra into the EU’s internal market under conditions that are stable and tailored to its institutional and economic reality.

In other words: ⛔ it does not mean “joining the European Union”, but rather establishing a structured legal connection with it.

The main goal is to grant Andorran companies and citizens broad access to the European single market, while preserving the country’s political and fiscal sovereignty.

In return, Andorra commits to adopting parts of the acquis communautaire (the body of EU law) in specific areas and to establishing permanent mechanisms of cooperation and legislative adaptation.

The agreement follows the same logic as the association models of Norway, Iceland, Liechtenstein and Switzerland, yet with a unique institutional framework, shared also with San Marino.

📘 Key areas and alignment with EU legislation

The annexes and protocols of the agreement —14 in total— define the fields where Andorra aligns its legal framework with EU standards.
Among the most relevant are:

🧺 Free movement of goods

A comprehensive customs union is established between Andorra and the EU, removing customs duties and technical barriers to trade.
It includes the harmonisation of technical standards, product safety rules, and certification for vehicles, toys, cosmetics, or industrial machinery.
This facilitates Andorran exports and ensures that EU goods can circulate freely within the Principality.

➤ To understand the economic framework that preceded this, you can read “The Customs Agreement between Andorra and the European Union: origins and foundations of an essential relationship”

⚕️ Sanitary, food and veterinary standards

Andorra adopts a significant part of the EU’s regulation on food safety, labelling, hygiene and plant and animal health, ensuring mutual confidence in trade exchanges.

🛜 Communications, information society and digital services

The country aligns with the European Electronic Communications Code, as well as EU rules on digital platforms, data protection, 5G, cybersecurity and audiovisual services.
This represents a major qualitative leap in the modernisation of Andorra’s digital framework.

⚡ Energy and environment

The agreement includes commitments on energy efficiency, renewable energy, emissions and climate change, aligning Andorra with the EU’s Green Deal policies.
The Environment and Climate Protocol sets the goal of carbon neutrality before 2050 and a 45% reduction in emissions by 2030, compared to 2005 levels.

🛡️ Product liability and consumer protection

The EU Directive on defective products is incorporated, strengthening legal protection for both consumers and manufacturers.

💲 Financial services and administrative cooperation

Although Andorra maintains its fiscal sovereignty, the agreement introduces mechanisms of cooperation with EU authorities on banking, insurance, anti-money laundering and information exchange.

🏘️ Mobility and residence

The free movement of people is not automatic.
The agreement establishes a specific and gradual regime —with quotas and transition periods— to regulate access to the Andorran labour market and to avoid demographic or housing pressures.

Andorra retains the authority to limit or approve new residencies for economic or employment reasons.

➤ To understand how this affects mobility and relocation, you can read “Living and working in Andorra: what to know before moving.”

🚭 Tobacco

The Tobacco Protocol explicitly recognises that Andorra will keep its own fiscal policy, while committing not to widen the price gap with Spain or France and to strengthen anti-smuggling measures.

⚙️ Approval process and implementation

The procedure is dual and complex.

🇪🇺 At European level

The agreement is signed by the Council of the European Union, following a unanimous vote of the Member States (each having a veto right).
The European Parliament issues a favourable opinion.
Then, the Member States must ratify it individually according to their national constitutional procedures, as with any mixed treaty.

🇦🇩 At Andorran level

The General Council of Andorra must ratify it through an act of Parliament.
The agreement will enter into force only once all parties have ratified it, but it can be applied provisionally once the EU and Andorra formally sign the Council Decision (COM(2024) 191 final).
This ratification phase may take between 12 and 24 months, depending on the European timetable.

🌍 Benefits, commitments and limits of the agreement

🏆 Benefits

• Stable and extended access to the European single market, with recognition of Andorran products and services.
• Increased legal certainty for businesses and investors.
• Institutional modernisation in areas such as environment, energy, digitalisation and consumer rights.
• Enhanced international reputation, in line with EU standards of transparency and sustainability.
• Preservation of full political, fiscal and judicial independence.

➤ To understand how Andorra’s tax system remains independent and competitive within this new European framework, read “Taxation in Andorra: structure, tax rates and real advantages.”

🤝 Commitments

• Continuous legislative adaptation to EU regulation in the relevant sectors.
• Joint supervision through a Mixed EU–Andorra Committee, ensuring the regular updating and interpretation of the rules.
• Partial limitation of regulatory sovereignty in technical matters (except in the core areas mentioned among the benefits).

⚠️⛔ What the agreement is not

❌ It is not an EU accession treaty.

❌ It does not establish the automatic free movement of people, nor participation in the Council or the European Parliament.

❌ It does not alter Andorra’s tax regime nor introduce the EU VAT system.

✅ It is, instead, a structural association, similar to those of Norway or Liechtenstein, adapted to Andorra’s scale and specific reality.

✅ Conclusion

The Association Agreement between Andorra and the European Union represents the most significant milestone in bilateral relations since the 1990 customs union.
It is not an accession, but a legal alliance enabling the Principality to participate in the single market while maintaining its sovereignty.

Its implementation will bring about a progressive transformation of Andorra’s economy and regulatory framework, creating new opportunities for diversification and investment — while requiring constant adaptation and a high level of compliance.

📩 If you wish to understand how this agreement could impact your business or personal situation in Andorra, you can request a personalised meeting below or contact us through the form.

📚 Related articles

• Tax residence in Andorra: key requirements and real advantages — Explains the criteria to obtain tax residency and its implications.

Last reviewed: October 2025.