Most of the population is Roman Catholic. Until the 1950s, farming, woodcutting, and smuggling were the main occupations. Trade is duty-free and lack of taxation is attractive to foreign investment. There are three large hydroelectric facilities, and the country exports electricity to Spain. Sheep are raised, and Andorra's farms produce tobacco, grains, corn, and grapes.
Furniture is manufactured and distilleries produce brandy and anisette.
Iron and lead are mined. In the 9th cent., Holy Roman Emperor Charles II is reputed to have made the bishop of Seo de Urgel overlord of Andorra. The French counts of Foix contested this overlordship, and finally in 1278 an agreement was reached providing joint suzerainty. The rights of the count passed by inheritance through the house of Albret to Henry IV of France, and from the French kings to the French presidents. Long a semifeudal state with an ancient communal agrarian organization, Andorra was traditionally governed by a syndic-led council elected by heads of families.