[1] There are full customs checks on the EU side of the border[citation needed], as Andorra has low VAT and other indirect taxes, such as those for alcohol, tobacco and petrol, from which visitors might benefit.

The first is a cooperation agreement covering the environment, communications, information, culture, transport, regional and cross-border co-operation and social issues.

Visitors to the country can in gain access only by road or helicopter by passing through the Schengen Area members France or Spain.

Andorran ambassador to Spain Jaume Gaytán stated in 2015 that he hoped that the Association Agreement then under negotiations with the EU would include provisions to make the states associate members of the Schengen Agreement,[13] though the final text did not include such provisions.

The report examined four alternatives to the current situation: 1) a Sectoral Approach with separate agreements with each state covering an entire policy area, 2) a comprehensive, multilateral Framework Association Agreement (FAA) with the three states, 3) EEA membership, and 4) EU membership.

In response, the Council requested that negotiations with the three microstates on further integration continue, and that a report be prepared by the end of 2013 detailing the implications of the two viable alternatives and recommendations on how to proceed.

[18] Espen Barth Eide, Støre's successor, responded to the Commission's report in late 2012 by questioning whether the microstates have sufficient administrative capabilities to meet the obligations of EEA membership.

However, he stated that Norway was open to the possibility of EFTA membership for the microstates if they decide to submit an application, and that the country had not made a final decision on the matter.

[21] On 18 November 2013 the EU Commission published their report which concluded that "the participation of the small-sized countries in the EEA is not judged to be a viable option at present due to the political and institutional reasons", but that Association Agreements were a more feasible mechanism to integrate the microstates into the internal market, preferably via a single multilateral agreement with all three states (Andorra, Monaco & San Marino).

[28] The Commission formally put forward a proposal to the Council of the European Union in April 2024 to adopt decisions approving that the agreement be signed and concluded.