2. Loans for direct or indirect financing of an EC Member State or EFTA State or its regional or local authorities cannot be granted or placed in other EC or EFTA Member States unless the States concerned have reached an agreement on this matter. The notice in paragraph (c of Protocol 27) describes the programme or, if necessary, the aid programme concerned, including all the elements necessary for a proper evaluation of the programme or case (depending on the relevant elements of state aid, such as the nature of state aid, Destat, beneficiary, duration). In addition, the reasons for the opening of the procedure under Article 93, paragraph 2, of the Treaty establishing the European Economic Community or the procedure related to it, defined in an agreement between the EFTA States establishing the EFTA Supervisory Authority, are also notified to the other Authority. The exchange of information between the two supervisory authorities is based on reciprocity. Where reduced tariffs are in effect for certain products under bilateral agreements between the Community and certain EFTA states, these duties are considered basic duties for each of the EFTA states concerned. If it is not possible to reach agreement on these rules or provisions, the contracting party concerned can take the necessary measures to avoid any circumvention. The EEA agreement does not infringe on the rights conferred by existing agreements that give one or more EC Member States, on the one hand, and one or more EFTA states, on the other, or two or more EFTA states. B, such as other agreements on individuals, economic operators, regional cooperation and administrative arrangements, until at least equivalent rights have been obtained under the agreement. The agreement is based on EU primary legislation (the Treaty of Rome) on the date of the EEA agreement and on derivative legal provisions (regulations, directives, decisions and certain non-binding instruments relating to the EEA).
The legal texts of the EEA agreement consist of 129 articles, 22 annexes, 49 protocols and a final act. The annexes list eu`s legal acts applicable to the EEA, including adaptations. If the necessary legislative adjustments have not been made to the satisfaction of the contracting parties on the effective date of the agreement, all the points involved may be submitted to the EEA Joint Committee. In the event of non-compliance with an agreement, the provisions of Article 114 of the agreement apply mutatis mutandis. During the transitional period, both the UK and other EEA members remain bound by existing obligations under eu-led international agreements, including the EEA agreement.  In January and February 2020, the UK Government ruled out any future alignment with internal market rules and virtually ruled out EEA membership at the end of the transitional period.   When a state joins the EU, it does not necessarily immediately become a member of the EEA, but is obliged to apply.  Following the enlargement of the European UNION in 2007, to which Bulgaria and Romania joined on 1 January 2007, an EEA enlargement agreement was not signed until 25 July 2007 and did not enter into force provisionally until 1 August 2007.    The agreement did not enter into full force until November 9, 2011.
 On the other hand, the EEA agreement was provisionally applied to the ten candidate countries in May 2004, from their accession to the EU.  With regard to EFTA States, the procedures are defined in the agreement on a standing committee of EFTA states and include the following: However, the EEA agreement excludes the customs union, the common trade policy, the common foreign and security policy or direct and indirect taxation, to name a few.