The European Single Market
Launched on 1 January 1993, the Single Market treats its participating countries as one economic territory. Common and mutually recognised rules remove many national regulatory barriers, so products and services that meet the applicable requirements can circulate far more easily across all participating countries.
It rests on four freedoms: goods, services, capital and people move between member countries almost as easily as between counties of the UK. What sets it apart from an ordinary free trade deal is that it removes not just tariffs but the far bigger barriers behind the border — customs paperwork, duplicate testing, regulatory checks and restrictions on selling services.
- Launched 1 January 1993 — designed in large part by Britain
- Around 450 million consumers across 30 countries
- The world's largest integrated trading area
- Removes barriers behind the border, not just tariffs at it
The European Economic Area (EEA)
The EEA, in force since 1994, is the agreement that extends the Single Market beyond the EU. Through it, Iceland, Liechtenstein and Norway take part in the market on near-equal terms — following its trade rules, contributing to its funds and enjoying its four freedoms — without being EU members.
EEA countries sit outside the EU's customs union, its agricultural and fisheries policies, its trade deals and its political union. In return they adopt the market's rules as they evolve — shaping them at an early stage through a formal consultation process, though without a final vote — and contribute to funds that reduce economic disparities across the area. It is a trade-off all three have judged worth keeping for over three decades. And it is why the "Norway model" features so often in debates about Britain's future: it is a proven institutional route into the Single Market from outside the EU — though one requiring two negotiated accessions: first to EFTA, then to the EEA Agreement.
- Signed in Porto in 1992, in force since 1994
- The EU plus Iceland, Liechtenstein and Norway
- Broad participation in the four freedoms without EU membership — with important exclusions, notably agriculture and fisheries
- The UK was an EEA member until Brexit — and it's the most-discussed route back
The European Free Trade Association (EFTA) — the club Britain built
EFTA is a four-nation free trade association — Iceland, Liechtenstein, Norway and Switzerland — that operates alongside the EU. All four of its members participate in the Single Market: three through the EEA, Switzerland through its bilateral treaties. Unlike the EU it is not a customs union, so members strike their own trade deals — and jointly, EFTA has built one of the world's largest free trade networks, with agreements spanning more than forty partners from Canada and South Korea to India and Mercosur.
And it is a British creation. The Stockholm Convention of 1960 was signed by the "Outer Seven" — the UK, Austria, Denmark, Norway, Portugal, Sweden and Switzerland — as Britain's answer to the six-nation common market it had declined to join. EFTA's first two secretaries-general were British. Britain left in 1973 to join the European Community, and over the years five of the seven founders followed the same path.
That history matters now, because EFTA is the standing doorway back to the Single Market: join EFTA, then join the EEA through it — the Norway route — though both steps are negotiated accessions requiring existing members' agreement, not an automatic entitlement. After the 2016 referendum, EFTA said it was open to a British return, with the Swiss president suggesting it would strengthen the association — though Norway has voiced honest reservations about how a country of 67 million would shift the balance of a 15-million-person club. Any return would be a negotiation, not a formality. But the door Britain built in 1960 is still on its hinges.
- Founded in Stockholm in 1960 — with Britain as its leading member
- Four members: three in the market via the EEA, Switzerland via bilateral sectoral access
- Around 15 million people with among the world's highest incomes per head
- More than 40 free trade partners worldwide — including India and Mercosur
European UnionA political and economic union of 27 states, with a parliament, court and shared policies. The Single Market is its economic core — but the two are not the same thing.
Single MarketCommon rules letting goods, services, capital and people move far more freely across 30 countries. You can be in it without being in the EU.
Customs UnionA shared tariff wall: no duties between members, one common tariff around them. Turkey is in it without being in the Single Market; Norway is in the Single Market without being in it.
EEAThe treaty that plugs non-EU countries into the Single Market. Iceland, Liechtenstein and Norway use it today — and it's the route most often proposed for the UK.
EFTAA four-nation free trade club Britain co-founded in 1960 and left in 1973. It's the gateway through which non-EU countries reach the Single Market via the EEA.