European Union
The Isle of Man holds neither membership nor associate membership of the European Union, and lies outside the European Economic Area (EEA). Nonetheless, Protocol Three of the treaty of accession of the United Kingdom permits trade for Manx goods without non-EU tariffs. In conjunction with the Customs and Excise agreement with the UK, this facilitates free trade with the UK. While Manx goods can be freely moved within the EEA, people, capital and services cannot.
As with Jersey and Guernsey, the Isle of Man is not part of the United Kingdom or a direct member of the European Community and its relationship with the EU is defined under Article 355(5)(c) of the Treaty on the Functioning of the European Union (former Article 299 of the EC Treaty) and Protocol 3 of the Act of Accession, annexed to the Treaty of Accession 1972, by which the United Kingdom became a member of the European Economic Community.
The restriction on free movement of persons is anomalous in that the treaty establishing the EU clearly states that all citizens of member states will also be citizens of the EU. However a special protocol was inserted in the Treaty of Accession of the United Kingdom excluding the Channel Islands and Isle of Man from the provisions governing free movement of people. This was done at the request of the governments of the Crown dependencies at the time.
Read more about this topic: External Relations Of The Isle Of Man
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