On October 22, 1991, after exhaustive negotiations between the European Community (EC) and the Member States of the European Free Trade Association (EFTA) an agreement on the formation of the European Economic Area (EEA) was reached. Hence, the foundation was laid for an economic and social unit embracing 19 countries and about 380 million people, forming the world's largest economic bloc and a regional single market responsible for ca.40 percent of the world trade.
The Agreement consists of a preamble and nine parts covering the objectives and principles, the four freedoms of movements of goods, persons, service and capital, provisions on competition and other common rules, horizontal policies relevant to the four freedoms, cooperation outside the four freedoms, institutional provisions, funding, and final provisions.