ASEAN

ESTABLISHMENT

The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok,
Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers
of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam then
joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and
Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN.

AIMS AND PURPOSES

As set out in the ASEAN Declaration, the aims and purposes of ASEAN are:

To accelerate the economic growth, social progress and cultural development in the region through
joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a
prosperous and peaceful community of Southeast Asian Nations;

To promote regional peace and stability through abiding respect for justice and the rule of law in the
relationship among countries of the region and adherence to the principles of the United Nations
Charter;

To promote active collaboration and mutual assistance on matters of common interest in the
economic, social, cultural, technical, scientific and administrative fields;

To provide assistance to each other in the form of training and research facilities in the educational,
professional, technical and administrative spheres;

To collaborate more effectively for the greater utilisation of their agriculture and industries, the
expansion of their trade, including the study of the problems of international commodity trade, the
improvement of their transportation and communications facilities and the raising of the living
standards of their peoples;

To promote Southeast Asian studies; and

To maintain close and beneficial cooperation with existing international and regional organisations
with similar aims and purposes, and explore all avenues for even closer cooperation among
themselves.

FUNDAMENTAL PRINCIPLES

In their relations with one another, the ASEAN Member States have adopted the following
fundamental principles, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC)
of 1976:

Mutual respect for the independence, sovereignty, equality, territorial integrity, and national
identity of all nations;

The right of every State to lead its national existence free from external interference, subversion or
coercion;

Non-interference in the internal affairs of one another;

Settlement of differences or disputes by peaceful manner;

Renunciation of the threat or use of force; and

Effective cooperation among themselves.

ASEAN COMMUNITY

The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of ASEAN, agreed
on a shared vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in
peace, stability and prosperity, bonded together in partnership in dynamic development and in a
community of caring societies.

At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be
established.

At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to
accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on
the Acceleration of the Establishment of an ASEAN Community by 2015.

The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security
Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. Each pillar has its
own Blueprint, and, together with the Initiative for ASEAN Integration (IAI) Strategic Framework and
IAI Work Plan Phase II (2009-2015), they form the Roadmap for an ASEAN Community 2009-2015.

ASEAN CHARTER

The ASEAN Charter serves as a firm foundation in achieving the ASEAN Community by providing legal
status and institutional framework for ASEAN. It also codifies ASEAN norms, rules and values; sets
clear targets for ASEAN; and presents accountability and compliance. The ASEAN Charter entered
into force on 15 December 2008. A gathering of the ASEAN Foreign Ministers was held at the ASEAN
Secretariat in Jakarta to mark this very historic occasion for ASEAN. With the entry into force of the
ASEAN Charter, ASEAN will henceforth operate under a new legal framework and establish a number
of new organs to boost its community-building process. In effect, the ASEAN Charter has become a
legally binding agreement among the 10 ASEAN Member States.

OPEC

In accordance with its Statute, the mission of the Organization of the Petroleum Exporting Countries
(OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the
stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum
to consumers, a steady income to producers and a fair return on capital for those investing in the
petroleum industry.

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental

Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait,
Saudi Arabia and Venezuela. The five Founding Members were later joined by: Qatar (1961) –
terminated its membership in January 2019; Indonesia (1962) – suspended its membership in
January 2009, reactivated it in January 2016, but decided to suspend it again in November 2016;
Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) –
suspended its membership in December 1992, reactivated it in October 2007, but decided to
withdraw its membership effective 1 January 2020; Angola (2007); Gabon (1975) - terminated its
membership in January 1995 but re-joined in July 2016; Equatorial Guinea (2017); and Congo (2018).
OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was
moved to Vienna, Austria, on September 1, 1965.
OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order
to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of
petroleum to consuming nations; and a fair return on capital to those investing in the industry.

This means that, currently, the Organization has a total of 13 Member Countries.

The OPEC Statute distinguishes between the Founder Members and Full Members - those countries
whose applications for membership have been accepted by the Conference. The Statute stipulates
that “any country with a substantial net export of crude petroleum, which has fundamentally similar
interests to those of Member Countries, may become a Full Member of the Organization, if accepted
by a majority of three-fourths of Full Members, including the concurring votes of all Founder
Members.” The Statute further provides for Associate Members which are those countries that do
not qualify for full membership, but are nevertheless admitted under such special conditions as may
be prescribed by the Conference.

Secretariat

The OPEC Secretariat is the executive organ of the Organization of the Petroleum Exporting
Countries (OPEC). Located in Vienna, it also functions as the Headquarters of the Organization, in
accordance with the provisions of the OPEC Statute. It is responsible for the implementation of all
resolutions passed by the Conference and carries out all decisions made by the Board of Governors.
It also conducts research, the findings of which constitute key inputs in decision-making.

The Secretariat consists of the Secretary General, who is the Organization’s Chief Executive Officer,
as well as such staff as may be required for the Organization’s operations. It further consists of the
Office of the Secretary General, the Legal Office, the Research Division and the Support Services
Division. The Research Division comprises Data Services, Petroleum Studies and Energy Studies
departments. The Support Services Division includes Public Relations & Information, Finance &
Human Resources and Administration & IT Services departments.

The Secretariat was originally established in 1961 in Geneva, Switzerland. In April 1965, the 8th
(Extraordinary) OPEC Conference approved a Host Agreement with the Government of Austria,
effectively moving the Organization’s headquarters to the city of Vienna on September 1, 1965.

The South Asian Free Trade Area (SAFTA) is the free trade arrangement of the South Asian
Association for Regional Cooperation (SAARC). The agreement came into force in 2006, succeeding
the 1993 SAARC Preferential Trading Arrangement. SAFTA signatory countries are Afghanistan,
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

SAFTA recognizes the need for special and differential treatment for LDCs in its preamble. This has
been translated in the following measures:

Market access: LDCs benefit from smaller sensitive lists in some of the SAFTA members (meaning
that they have DFQF access in a larger number of products) and less stringent rules of origin
(requirement of change of tariff heading and value addition of 10% less than the general
requirement for non-LDCs; the general rule is 60% and there are some product-specific rules – See
Rule 10 of Annex IV of the Agreement).

South Asian Association for Regional Cooperation (SAARC)

History

The South Asian Association for Regional Cooperation (SAARC) is an economic and political
organization of eight countries in South Asia. It was established in 1985 when the Heads of State of
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka formally adopted the charter.
Afghanistan joined as the 8th member of SAARC in 2007. To date, 18th Summits have been held and
Nepal’s former Foreign Secretary is the current Secretary General of SAARC. The 19th Summit will be
hosted by Pakistan in 2016.

Objectives

SAARC aims to promote economic growth, social progress and cultural development within the
South Asia region. The objectives of SAARC, as defined in its charter, are as follows:

Promote the welfare of the peoples of South Asia and improve their quality of life

Accelerate economic growth, social progress and cultural development in the region by providing all
individuals the opportunity to live in dignity and realise their full potential

Promote and strengthen collective self-reliance among the countries of South Asia

Contribute to mutual trust, understanding and appreciation of one another’s problems

Promote active collaboration and mutual assistance in the economic, social, cultural, technical and
scientific fields

Strengthen co-operation with other developing countries

Strengthen co-operation among themselves in international forms on matters of common interest;

and

Cooperate with international and regional organisation with similar aims and purposes.

Structure and Process

Cooperation in SAARC is based on respect for the five principles of sovereign equality, territorial
integrity, political independence, non-interference in internal affairs of the Member States and
mutual benefit. Regional cooperation is seen as a complement to the bilateral and multilateral
relations of SAARC Member States. SAARC Summits are held annually and the country hosting the
Summit holds the Chair of the Association. Decisions are made on an unanimity basis while bilateral
and contentious issues are excluded from the deliberations of SAARC. In addition to the eight
Member States, nine Observer States join SAARC Summits: China, the US, Myanmar, Iran, Japan,
South Korea, Australia, Mauritius and the European Union.

Areas of Cooperation

The Member States agreed on the following areas of cooperation:

Agriculture and rural development

Education and culture

Biotechnology

Economic, trade and finance

Energy

Environment

Tourism

Science and Technology

Information, Communication and Media

Poverty alleviation

Security aspects

People-to-People Contacts

Funding mechanism

Social development

Latest Developments

The 18th SAARC Summit held in Kathmandu in 2014 concluded with the adoption of the SAARC
Declaration. The Declaration recognizes labour migration as an issue in need of collective action.
Article 21 states that SAARC countries agree to collaborate to ensure the protection of migrant
workers from South Asia. During the Summit, SAARC leaders also called for authorities to tackle and
prevent the trafficking in women and children. In regards to the Post-2015 Development Agenda,
participating countries aim to initiate an inter-governmental process to appropriately contextualize
the Sustainable Development Goals at the regional level.

BRICS

BRICS is an acronym for the powerful grouping of the world’s leading emerging market economies,
namely Brazil, Russia, India, China and South Africa.

The BRICS mechanism aims to promote peace, security, development and cooperation. It also aims
at contributing significantly to the development of humanity and establishing a more equitable and
fair world.

The first BRIC Summit took place in Yekaterinburg, Russia, where the elected leaders of the four
countries formally declared the membership of the BRIC economic bloc. South Africa was invited to
join the bloc in December 2010, resulting in BRICS.BRICS has since its inception had a positive effect
on the international system. BRICS countries have individually emerged to assume new economic
rankings.

In 2010, China became the second-biggest economy in the world.

India currently stands as the 10th-largest economy in gross domestic product (GDP) in nominal
terms, and is the fourth-largest economy in terms of GDP at Purchasing Power Parity (PPP).

In 2011, Brazil became the world’s sixth-largest economy.

Russia is currently the ninth-biggest economy and South Africa is ranked as the 26th-largest
economy.

BRICS countries coordinate on their positions and actions in international organisations, as seen in
the United Nations.
In the midst of the current global economic crisis, many countries in the world are looking to BRICS
members as the new locomotives for global economic growth to provide renewed impetus to global
economic cooperation. For example, BRICS trade and investment with low-income countries have
served as a major support system in the wake of the global financial crisis (International Monetary
Fund [IMF] Study).

Expansion of BRIC into BRICS

South Africa was invited to join the BRIC bloc on 24 December 2010 and on 14 April 2011, South
African President Jacob Zuma attended the third BRICS Summit in Sanya, China.

BRICS is a continuation of the tradition that was firmly established 57 years ago, in April 1955, when
countries of Asia and Africa met at the historic Bandung Conference to galvanise their collective
muscle in the context of the Cold War and assert themselves in the international system. The
Bandung Conference, which led to the formation of the Non-Aligned Movement (NAM), was a
historic watershed in the international relations of developing countries. Amid pressure from the
growing Cold War bipolarism, those countries were able to concertedly affirm that they would
choose neither the East nor the West, but pursue their own path and strategy under the guidance of
the “Bandung Principles” of Afro-Asian solidarity. South Africa was at the Bandung Conference,
represented through the African National Congress.

BRICS membership is in line with South Africa’s foreign policy objectives of notably strengthening
South-South relations. The present context of international relations and cooperation between
Asian, African and Latin American countries – collectively known as countries of the South – remains
critical, and has become more important than ever before.

South Africa’s membership of BRICS is premised on its regional, continental and global role as well as
its domestic achievements in the “proudly South African manner”.

South Africa joined BRICS with three objectives in mind:

to advance its national interests as outlined in the President’s State of the Nation Address

to promote its regional integration programme and related continental infrastructure programmes

to partner with key players of the South on issues related to global governance and its reform.

South Africa’s membership of this body has expanded BRICS’ geographic and intercontinental reach,
including its global representivity and inclusiveness.

BRICS leaders are considering the possibility of setting up a new development bank for mobilising
resources for infrastructure and sustainable development projects in BRICS and other emerging
economies and developing countries, to supplement the existing efforts of multilateral and regional
financial institutions for global growth and development.

BRICS finance ministers have been tasked to examine the feasibility and viability of such an initiative,
set up a joint working group for further study, and report back at the next summit in South Africa.
Such a new development bank could complement existing institutions and address gaps and
challenges in critical sectors.

The WTO

The World Trade Organization (WTO) is the only global international organization dealing with the
rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the
bulk of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade
flows as smoothly, predictably and freely as possible.

The WTO has many roles: it operates a global system of trade rules, it acts as a forum for negotiating
trade agreements, it settles trade disputes between its members and it supports the needs of
developing countries.

All major decisions are made by the WTO's member governments: either by ministers (who usually
meet at least every two years) or by their ambassadors or delegates (who meet regularly in Geneva).
A number of simple, fundamental principles form the foundation of the multilateral trading system.
The primary purpose of the WTO is to open trade for the benefit of all. The WTO's top decision-
making body is the Ministerial Conference. Below this is the General Council and various other
councils and committees. Ministerial conferences usually take place every two years. The General
Council is the top day-to-day decision-making body. It meets a number of times a year in Geneva.

The WTO has over 160 members representing 98 per cent of world trade. Over 20 countries are
seeking to join the WTO. To join the WTO, a government has to bring its economic and trade policies
in line with WTO rules and negotiate its terms of entry with the WTO membership. The WTO derives
most of the income for its annual budget from contributions by its members. These contributions
are based on a formula that takes into account each member's share of international trade.

IMF

The International Monetary Fund (IMF) is an organization of 190 countries, working to foster global
monetary cooperation, secure financial stability, facilitate international trade, promote high The IMF
was established in 1944 in the aftermath of the Great Depression of the 1930s. 44 founding member
countries sought to build a framework for international economic cooperation. Today, its
membership embraces 190 countries, with staff drawn from 150 nations. The IMF is governed by
and accountable to those 190 countries that make up its near-global membership. employment and
sustainable economic growth, and reduce poverty around the world. At the top of its organizational
structure is the Board of Governors. The day-to-day work of the IMF is overseen by its 24-member
Executive Board, which represents the entire membership and supported by IMF staff. The
Managing Director is the head of the IMF staff and Chair of the Executive Board. S/he is assisted by
four Deputy Managing Directors. The IMF's resources mainly come from the money that countries
pay as their capital subscription (quotas) when they become members. Each member of the IMF is
assigned a quota, based broadly on its relative position in the world economy. Countries can then
borrow from this pool when they fall into financial difficulty.

World Bank

With 189 member countries, staff from more than 170 countries, and offices in over 130 locations,
the World Bank Group is a unique global partnership: five institutions working for sustainable
solutions that reduce poverty and build shared prosperity in developing countries.

Our Mission

-To end extreme poverty:

By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.

-To promote shared prosperity:

By increasing the incomes of the poorest 40 percent of people in every country.

WHAT WE DO

The World Bank Group works in every major area of development. We provide a wide array of
financial products and technical assistance, and we help countries share and apply innovative
knowledge and solutions to the challenges they face.

WHERE WE WORK

The World Bank Group works in more than 170 countries, working with partners in the public and
private sectors in their efforts to end poverty and tackle some of the most pressing development
challenges.

World bank faces big challenges to help the world’s poorest people and ensure that everyone sees
benefits from economic growth. Data and research help us understand these challenges and set
priorities, share knowledge of what works, and measure progress.

History of the Question of Palestine

Palestine was among former Ottoman territories placed under UK administration by the League of
Nations in 1922. All of these territories eventually became fully independent States, except
Palestine, where in addition to “the rendering of administrative assistance and advice” the British
Mandate incorporated the “Balfour Declaration” of 1917, expressing support for “the establishment
in Palestine of a national home for the Jewish people”. During the Mandate, from 1922 to 1947,
large-scale Jewish immigration, mainly from Eastern Europe took place, the numbers swelling in the
1930s with the Nazi persecution. Arab demands for independence and resistance to immigration led
to a rebellion in 1937, followed by continuing terrorism and violence from both sides. UK considered
various formulas to bring independence to a land ravaged by violence. In 1947, the UK turned the
Palestine problem over to the UN.

After looking at alternatives, the UN proposed terminating the Mandate and partitioning Palestine
into two independent States, one Palestinian Arab and the other Jewish, with Jerusalem
internationalized (Resolution 181 (II) of 1947). One of the two envisaged States proclaimed its
independence as Israel and in the 1948 war involving neighbouring Arab States expanded to 77
percent of the territory of mandate Palestine, including the larger part of Jerusalem. Over half of the
Palestinian Arab population fled or were expelled. Jordan and Egypt controlled the rest of the
territory assigned by resolution 181 to the Arab State. In the 1967 war, Israel occupied these
territories (Gaza Strip and the West Bank) including East Jerusalem, which was subsequently
annexed by Israel. The war brought about a second exodus of Palestinians, estimated at half a
million. The Security Council in resolution 242 formulated the principles of a just and lasting peace,
including an Israeli withdrawal from territories occupied in the conflict, a just settlement of the
refugee problem, and the termination of all claims or states of belligerency. The 1973 hostilities
were followed by Security Council resolution 338, which inter alia called for peace negotiations
between the parties concerned. In 1974 the General Assembly reaffirmed the inalienable rights of
the Palestinian people to self-determination, national independence, sovereignty, and to return. The
following year, the General Assembly established the Committee on the Exercise of the Inalienable
Rights of the Palestinian People and conferred on the PLO the status of observer in the Assembly
and in UN conferences. The plan envisages the division of Palestine into 3 parts: a Jewish state, an
Arab State (dark tint), and the City of Jerusalem (white), to be placed under an International
Trusteeship system. 1947, United Nations (Lake Success), New York. In June 1982, Israel invaded
Lebanon with the declared intention to eliminate the PLO. A cease-fire was arranged. PLO troops
withdrew from Beirut and were transferred to neighboring countries. Despite the guarantees of
safety for Palestine refugees left behind a large-scale massacre took place in the Sabra and Shatila
camps. In September 1983, the International Conference on the Question of Palestine (ICQP)
adopted the following principles: the need to oppose Israeli settlements and Israeli actions to change
the status of Jerusalem, the right of all States in the region to existence within secure and
internationally recognized boundaries, and the attainment of the legitimate, inalienable rights of the
Palestinian people. In 1987, a mass uprising against the Israeli occupation began in the Occupied
Palestinian Territory (the intifada). Methods used by the Israeli forces resulted in mass injuries and
heavy loss of life among the civilian Palestinian population. In 1988 the Palestine National Council
meeting in Algiers proclaimed the establishment of the State of Palestine.

A Peace Conference was convened in Madrid in 1991, with the aim of achieving a peaceful
settlement through direct negotiations along 2 tracks: between Israel and the Arab States, and
between Israel and the Palestinians, based on Security Council resolutions 242 (1967) and 338
(1973). The multilateral track negotiations were to focus on region-wide issues such as the
environment, arms control, refugees, water, and the economy. A series of subsequent negotiations
culminated in the mutual recognition between the Government of Israel and the PLO, the
representative of the Palestinian people, and the signing in 1993 of the Declaration of Principles on
Interim Self-Government Arrangements (DOP or “Oslo Accord”), as well as the subsequent
implementation agreements, which led to the partial withdrawal of Israeli forces, the elections to
the Palestinian Council and the Presidency of the Palestinian Authority, the partial release of
prisoners and the establishment of a functioning administration in the areas under Palestinian self-
rule. The involvement of the UN has been essential both as the guardian of international legitimacy
and in the mobilization and provision of international assistance. The 1993 DOP deferred certain
issues to subsequent permanent status negotiations, which were held in 2000 at Camp David and in
2001 in Taba, but proved inconclusive.

The visit by Ariel Sharon of the Likud to Al-Haram Al-Sharif (Temple Mount) in Jerusalem in 2000 was
followed by the second intifada. Israel began the construction of a West Bank separation wall,
located mostly within the Occupied Palestinian Territory, ruled illegal by the International Court of
Justice. In 2002, the Security Council affirmed a vision of two States, Israel and Palestine. In 2002 the
Arab League adopted the Arab Peace Initiative. In 2003, the Quartet (US, EU, Russia, and the UN)
released a Road Map to a two-State solution. An unofficial Geneva peace accord was promulgated
by prominent Israelis and Palestinians in 2003. In 2005, Israel withdrew its settlers and troops from
Gaza while retaining control over its borders, seashore and airspace. Following Palestinian legislative
elections of 2006, the Quartet conditioned assistance to the PA on its commitment to nonviolence,
recognition of Israel, and acceptance of previous agreements. After an armed takeover of Gaza by
Hamas in 2007, Israel imposed a blockade. The Annapolis process of 2007-2008 failed to yield a
permanent status agreement. Escalating rocket fire and air strikes in late 2008 culminated in Israeli
ground operation “Cast Lead” in Gaza. The UN Security Council adopted resolution 1860. Violations
of international law during the Gaza conflict were investigated by the UN (“Goldstone report“). The
2009 PA programme to build State institutions received wide international support. A new round of
negotiations in 2010 broke down following the expiration of the Israeli settlement moratorium. In
2011 President Mahmoud Abbas submitted the application of Palestine for membership in the UN.
UNESCO admitted Palestine as a Member. Exploratory Israeli-Palestinian talks were held in early
2012 in Amman. In November another cycle of violence between Israel and Gaza concluded with an
Egyptian-brokered cease-fire. On 29 November 2012 Palestine was granted non-member observer
State status in the UN. The General Assembly proclaimed 2014 an International Year of Solidarity
with the Palestinian People. A new round of negotiations begun in 2013 was suspended by Israel in
April 2014 following the announcement of a Palestinian national consensus Government. Another
round of fighting between Israel and Gaza took place in July-August 2014. In 2016 the Security
Council adopted resolution 2334 on settlements.

European Union

The European Union (EU) is a political and economic union, consisting of 27 member states that are
subject to the obligations and the privileges of the membership. Every member state is part of the
founding treaties of the union and is subjected to binding laws within the common legislative and
judicial institutions. In order for the EU to adopt policies that concern defence and foreign affairs, all
member states must agree unanimously. Before 1993, the EU was not as big as it is today. European
countries started to cooperate economically since 1951, when only states such as Belgium, France,
Luxembourg, Germany, The Netherlands and Italy participated. Gradually, more countries decided to
join. The last to join is Croatia – in 2013.

Which countries belong to the EU?

The 27 European countries that are part of the EU:

Map of EU Countries

Map of European Union Countries

Austria

Belgium

Bulgaria

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia
Lithuania

Luxembourg

Malta

Netherlands

Poland

Portugal

Romania

Slovakia

Slovenia

Spain

Sweden

The European Union’s aim back in the days was to end the frequent bloody wars between neighbour
states that culminated in the Second World War. In 1950, the European Coal and Steel Community
began the uniting of European countries economically and politically to gain lasting peace. In 1957,
the Treaty of Rome created the European Economic Community (EEC) or the ‘Common Market’. This
brought a good period for the economy, as the EU countries stopped charging customs duties when
trading with each other. In 1973, Denmark, Ireland, and the United Kingdom formally decided to join
the European Union, becoming nine member states altogether. Later, in 1986 the Single European
Act was signed, which also created the ‘Single Market’. In 1993, the ‘Single Market’ was completed
with the four freedoms:

Movement of goods

Movement of services

Movement of people

Movement of money

The 1990s were also a decade of treaties: the ‘Maastricht’ Treaty on the European Union in 1993
and the treaty of Amsterdam in 1999. In 1995, the EU further enlarged with three more members
joining: Austria, Finland, and Sweden. During the 1990s, a small village in Luxembourg gave its name
to the ‘Schengen’ agreements that would gradually allow people to travel without having their
passports checked at the borders within the area. In the 2000s, the euro became the new currency
for many Europeans, and during the following decade, more countries adopted the euro (€). The
political divisions, during the 2000s, between the east and west Europe finally healed and 10 more
new countries joined the EU in 2004, followed by Bulgaria and Romania which joined in 2007. In
2008, a financial crisis hits the global economy. Therefore, the Treaty of Lisbon entered into force in
2009, providing the EU with modern institutions and more efficient working methods. In 2013,
Croatia became the 28th member to enter the EU. In June 2016, the United Kingdom held a
referendum, letting the people decide whether they want to leave or remain in the European Union,
after a few years of political debate on the topic. 33,577,342 people participated in the referendum,
a turnout of 72.2%. The referendum resulted with 52% opting to leave while 48% to remain.
On January 31, 2020, the United Kingdom officially left the European Union, starting the 11-month
transition period.

Presently the increase of religious extremism in the Middle East, as well as in various other countries
and regions around the world, has lead to wars and turmoil, which has pushed many people to flee
their home countries and seek refuge in Europe. The EU has recently found itself as the target of
several terrorist attacks while facing the dilemma of how to take care of the refugees.

How many countries are in the EU?

The European Union (EU) consists of 27 member states.

How many citizens does the European Union have?

As of 1 January 2017, the population of the EU is about 511.6 million people.

Is Ukraine in the EU?

No. Ukraine is not a member of the EU.

Is Hungary in the EU?

Yes. Hungary is a member country of the EU since May 1, 2004.

What is the difference between Schengen countries and EU countries

EU countries and Schengen countries are both European countries.

EU countries are those European countries which are a part of the European Union and have signed
the treaties of the European Union. EU countries have to maintain their own national military and
foreign policies, but are bound to judicial and legislative institutions of the EU.

Schengen countries are those European countries which have signed the Schengen Agreement.
These countries operate as a single state with no border controls required when traveling within the
countries, but have the same international border control rules.

What is The European Economic Area (EEA)?

The EEA includes all EU countries and also Iceland, Liechtenstein and Norway.

What is EFTA?
EFTA stands for the European Free Trade Association. It is a regional trade organization and free
trade area consisting of Iceland, Liechtenstein, Norway and Switzerland. None of these countries are
part of the European Union, but aside of Switzerland, others are all part of the European Economic
Area.

Its free trade agreements foresee the elimination of import duties on industrial goods and fish. In
addition, the EFTA States have added substantive rules and commitments on services, investment
and/or public procurement to the agreements as a response on globalization.

What is Brexit?

‘Brexit’ is the name given to the United Kingdom’s departure from the European Union. It is a
combination of ‘Britain’ and ‘exit’.

Referendum: majority votes to leave

On 23 June 2016, the UK held a referendum on its membership of the EU. The question facing voters
was: ‘Should the United Kingdom remain a member of the European Union or leave the European
Union?’ 51.89% of voters voted to leave the EU. The UK left the EU on 31 January 2020.

Transition period

Up to and including 31 December 2020 a transition period was in place. During that time nothing
changed and the UK continued to comply with all EU laws and rules. Negotiations were also held on
the new relationship between the UK and the EU during this time.

New relationship

On 24 December 2020 negotiators for the EU and the UK reached a deal on the two parties’ new
relationship. The EU and the UK have set out the terms of this deal in three agreements:

the Trade and Cooperation Agreement

the Information Security Agreement

the Nuclear Cooperation Agreement.

On 1 January 2021 the rules set out in these agreements will come into force.