Businessmen, politicians and institutional representatives from Andorra and Spain discussed on Friday, June 9th, in Madrid the opportunities and challenges facing Andorra while negotiating an Association Agreement with the European Union. Some 200 people attended the third conference on Business and Investment in Andorra, mostly Spanish and Andorran businessmen, and diplomatic corps members from different countries.

The Andorran minister for Foreign Affairs, Gilbert Saboya, and the Spanish Ambassador to Andorra, Manuel Montobbio, opened the session. Saboya stressed that “the association agreement is a way for Andorra to promote ourselves towards a future full of opportunities for us. There is an obvious desire for both the European Union and Andorra to continue negotiating the association agreement “. He also added that ” it is a good opportunity for both parties to show that the EU and the three microstates can reach an agreement in the coming years. Clearly, this is a major challenge, however we must keep in mind real examples of countries our size, such as Liechtenstein, that found a similar and profitable agreement. “
 
Saboya: “The commitment to the association agreement is fully aligned with the process of reforms”
The minister for Foreign Affairs also recalled that “the commitment to the association agreement is fully aligned with the reforms process, and thus, would be probably meaningless, without the ability to visualize something specific in the coming years”. He also admitted “we are well aware that the negotiation process is long, complex and difficult, and we must all have the intelligence to adjust the balance between the internal market participation, while maintaining some of our particularities. Our political will proved four years ago it was possible to implement reforms. Only this political will can ensure negotiations come to fruition. “
 
In his speech, Saboya also positioned Andorra as a preference for international investors and to test innovative projects. As an example, he gave the number of agreements to avoid double taxation in force with major neighboring countries, which are continuing to grow with new signing states. He also reported the growing payroll and GDP of Andorra during the last four years.
 
Montobbio “The association agreement may be the second great transformation for temporary Andorra”
The Spanish Ambassador to Andorra, Manuel Montobbio remarked that ” in these times of change, the position of a country such as Andorra, facing the challenge of joining the internal market and sharing this European project with us, is good news for European integration”. He therefore described the association agreement negotiation as” the second great transformation for contemporary Andorra “after the adoption of the Constitution in 1993.

Ana Palacio, “Spain has a special interest in Andorrabeing part of the European internal market”
The main conference of the day was given by lawyer and former minister for Foreign Affairs of Spain, Ana Palacio, who gave an overview of the current political situation in Europe and the Andorran process to negotiate with the EU. Palacio said “Spain has a special interest in Andorra being part of the European internal market notwithstanding the fact that its characteristics will modulate specific aspects.” Her presentation was moderated by Jaime Garcia-Legaz, CEO of Compañía Española de Seguros de Crédito a la Exportación (CESCE)
 
Maerten “Europe will do everything possible to reach a beneficial agreement for Andorra”
The debate on the association agreement between Andorra and the European Union counted with the participation of Claude Maerten, deputy chief negotiator for the EU’s agreement with Monaco, Andorra and San Marino. Maerten agreed with Saboya that “Andorra has a special opportunity to access the EU market and must take advantage and develop the potential of its economy. Not only may Andorra benefit from the Union, but other EU markets could benefit from Andorra. ” In this sense Maerten predicted that “Europe will do everything possible to reach a beneficial agreement for Andorra and the Member States of the EU, while negotiating the common principles and the four freedoms of free circulation.”
 
This panel discussion was also attended by Francisco Jose Montiel, main associate of Deloitte’s tax department; Marc Maresceau, Professor of International Law at the University of Gent, and a specialist in small states agreements with the EU; and Vladimir Fernández, managing partner of Crowe Horwath. The table was chaired by the Government of Andorra’s consultant in EU issues, Joaquim Llimona.
 
Camp: “The number of businesses increased by 38.2% in the first quarter of 2017”
The Andorran minister for Trade and Tourism, Francesc Camp, and Spanish Secretary of State for the EU, Jorge Toledo, closed the session. Camp gave some of the latest economic data, such as the country’s growth for the fourth consecutive year, in terms of number of businesses, and announced “an increase of 38.2% in the first quarter.”
 
The minister also referred to the Association Agreement with the EU, “it is essential for Andorra to become a service exporting platform targeting a market of over 500 million people. ” With regards to the country’s reforms in the economic, financial and fiscal areas, he explained “they have a dual purpose: Transforming Andorra into a powerful and competitive services platform that complements and diversifies our economy, and to show the world Andorra’s ability to do so. “

During the day, Andorra presented its strengths for international businessmen and investors. Presentations were given by the Chamber of Commerce’s Vice President for Tourism, Jordi Daban, the vice president of ACTInn’s cluster, Andrés López, the general manager of Andorra Turisme, Betim Budzaku, and, Salvador Balcells, partner at Manubens Advocats. The panel discussion was moderated by the General Director of Ràdio i Televisió d’Andorra, Xavier Mujal.

The conference was organized by S&R Estratègies Empresarials, MB Comunicació, sponsored by Crèdit Andorrà, Forces Elèctriques d’Andorra (FEDA) and Andorra Telecom, supported by the Government of Andorra, in collaboration with the Chamber of Commerce and Andorra Turisme.