However, it is associated with the Union through its membership in the European Economic Area (EEA), signed in 1992 and established in 1994.

[11] This arrangement facilitates the free movement of goods, capital, services, and people between the EU and EFTA members, including Norway.

[11] Free movement of goods means freedom from customs fees, where however, food and beverage are excluded (because those are subsidised by the EU).

Joining the European Union as a full member would eliminate these fees and lead to lower food prices in Norway.

Whether or not the country should apply for full membership has been one of the most dominant and divisive issues in modern Norwegian political debate.

[citation needed] Norway's total financial contribution linked to the EEA agreement consists of contributions related to the participation in these projects and partly made available to development projects for reducing social and economic disparities in the EU (EEA and Norway Grants).

When France rebuffed the United Kingdom's application the following year, accession negotiations with Norway and the other countries were also suspended because of their strong economic ties.

Following an overwhelming parliamentary majority in favour of joining the EEC in early 1972, the government decided to put the question to a popular referendum, scheduled for 24 and 25 September.

[20] On 28 November 1994, a second referendum was held, narrowing the margin but yielding the same result: 52.2% opposed membership and 47.8% in favour, with a turn-out of 88.6%.

The country has a limited amount of agriculture and few underdeveloped areas, which means that Norway would receive little economic support from the EU.

However, as of 2009[update], Norway has chosen to opt into many EU projects, and since its total financial contribution linked to the EEA agreement consists of contributions related to the participation in these projects, and a part made available to development projects for reducing social and economic disparities in the EU (EEA and Norway Grants),[13][22] its participation is on an equal footing with that of EU member states.

Because these positions significantly cut across ideological boundaries, various political parties have dealt with the issue differently.

Opponents of EU membership on the left do so because of opposition to conservative economic and political forces that concern them within Europe; opponents on the right are concerned about an infringement on Norwegian culture; and others are opposed in principle to compromising Norwegian sovereignty.

"[23] Currently, parties supporting or opposing EU membership are to be found in both right-wing and left-wing coalitions: as a result, most governments contain pro- and anti-EU elements.