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The Council of the EU has authorised the signature and provisional application of association agreements with Andorra and San Marino. The agreement is comprehensive, covering trade, financial services and broader cooperation, and reflects both the EU's objective of developing special relationships with neighbouring countries and the two microstates' interest in closer EU ties.

Under the agreement, Andorra and San Marino will participate in a homogeneous extended internal market under equal conditions of competition, applying the same rules as EU member states. Financial services are also included, though access to the internal market in this area will be progressive, contingent on a successful audit of the robustness of the two countries' regulatory and supervisory frameworks, with European Supervisory Authorities playing a role in the evaluation and monitoring.

Beyond market access, the agreement establishes a framework for dialogue and cooperation in areas such as research and development, education, social policy, environment, consumer protection, culture and regional cooperation. It also takes into account the particular situation of Andorra and San Marino, including their proximity to neighbouring EU member states, their geography, size and relatively small populations.

Pre-signing by member states is foreseen for September, after which the European Commission will sign on behalf of the EU. The Council will then request the European Parliament's consent before the file returns to the Council for formal conclusion. Negotiations, launched in 2015 alongside Monaco (suspended in September 2023), were concluded with Andorra and San Marino in December 2023.

CLECAT will continue to monitor developments on this agreement and its implications for customs and trade operators active in the region.