The United States established diplomatic relations with the Principality of Andorra in 1995, following Andorra's 1993 adoption of a constitution establishing the country as a sovereign parliamentary democracy. It retains as its heads of state two co-princes — the Bishop of Urgell (Spain) and the French president. The United States and Andorra enjoy excellent relations based on common values including the promotion of democracy and human rights. The U.S. Ambassador to Spain is also accredited as Ambassador to Andorra.
Bilateral Economic Relations
U.S.-Andorra bilateral trade in goods totaled $12.2 million in 2018, and there are U.S. investments in Andorra’s banking and retail sectors. The investment law approved in 2012 opened the country to foreign investment allowing foreign investors to gain full ownership of a business for the first time. The investment climate in the country has improved significantly with this new legislation liberalizing the Andorran economy. Since 2011, the Andorran government has made significant economic and tax reforms, including to combat money laundering, which have led Andorra to improve its compliance with international standards.