Monaco has close political relationships with France, settled by the treaty of 27 July 1918 and confirmed by Article 436 of the Treaty of Versailles of 18 June 1919. By these regulations the Government of Monaco agrees to exercise its rights in compliance with French interests in exchange for France's guarantee of sovereignty and territorial integrity of the Principality. A renewal of the treaty providing for greater reciprocity of treatment between the two states was signed in October 2002.

By its close association with France, Monaco links to the EU policies, although not a member of the Union. The customs and monetary unity between Monaco and France goes back in time as far as 1861. Monaco also applies directly most measures related to Value Added Tax and excise duties.

Monaco's participation in the Community customs through France does not extend to the area of external trade. Also the Community trade agreements apply to goods from the territory of the Community, not to goods produced in Monaco.

Monaco joined the United Nations in 1993 and is a member of many international and intergovernmental organizations, including Interpol, UNESCO, WHO, World Intellectual Property Organization, etc.

Monaco houses the headquarters of many intergovernmental institutions such as International Hydrographic Bureau, International Commission for the Scientific Exploration of the Mediterranean, etc.

The Principality of Monaco has 10 diplomatic representations in Western European countries and a permanent delegation at the United Nations in New York. Around 106 honorary consulates are maintained in countries in Europe, America, Asia, Africa.

The Principality presented its candidature for admission in the European Council in 1998 and was admitted on October 5, 2004.