Vol. 439 No. 6
70 Mr. Allen asked the Tánaiste and Minister for Foreign Affairs the implications for Ireland of the setting up of the European Economic Area which brings in the five EFTA countries and allows free movement of goods, capital and services within the 12 countries of the European Union.
The European Economic Area Agreement between the EU and EFTA member states — except Switzerland — formally entered into force on 1 January 1994. The agreement forms a very useful foundation for the current enlargement negotiations with Austria, Finland, Norway and Sweden.
The agreement effectively extends to the participating EFTA countries the European Union's single market, allowing free movement of goods, services, capital and labour across a 17-state area. Institutional arrangements, including arrangements for an EEA Council at ministerial level, form part of the agreement. There is provision for increased co-operation in areas such as social policy, consumer protection, the environment, research and development and education.
Ireland is well placed to benefit from easier access to this large and economically developed market for our goods and services. In 1992 our trade surplus with the participating EFTA countries was IR£33 million approximately.
In addition, together with Spain, Portugal and Greece, Ireland sought inclusion in the agreement of provisions to promote economic and social cohesion. As part of these provisions a cohesion fund has been set up under the agreement and is expected to be in operation shortly.
