Since the UK`s withdrawal from the single market in January, the country`s trade with Norway, Iceland and Liechtenstein has been covered by a continuity agreement covering goods, but both sides have also tried to further open up flows in key areas. “At first glance, the deal seems cautiously ambitious,” said trade expert David Henig of the European Centre for International Political Economy. The new agreement builds on the renewal agreement that the UK signed before leaving the EU economic zone, and the government stresses that it contains important elements of digital trade that go beyond what the EU has. “There are useful provisions for UK businesses, such as.B. professional skills or digital trade, but there will also be many difficulties, as we see with the similar trade and cooperation agreement between the UK and the EU. Overall, this is a fairly normal free trade agreement with limited economic value. “Prior to the UK`s withdrawal from the EU, Norway enjoyed the free movement of goods, services, capital and people to the UK through the EEA Agreement,” Norway said. While the agreement is partly an exercise to restore position and try to avoid imposing new barriers to trade rather than removing existing ones, its impact on trade in goods and services could be significant, especially in the long term, business guides, reports and other documents to help you understand the UK and Norway. Free Trade Agreement between Iceland and Liechtenstein (FTA). Britain`s post-Brexit trade deal with Norway, Iceland and Liechtenstein could cut costs for the fish processing industry and, ultimately, for consumers, according to a report by the House of Lords` European Affairs Committee.

However, the deal contains some obstacles, as the UK, as a member of the EU, had completely free trade with all three countries. Given that this trade is already well established, the deal is unlikely to boost sales significantly, said Andrew Kuyk, chief executive of the Provision Trade Federation and the UK Seafood Industry Alliance, which represents UK fish processors. A trade deal with Norway, Iceland and Liechtenstein would never make hearts beat faster. It does not have the controversy or prestige of an Australian or American agreement. Nor does it boast about the huge market size of a place like India. In fact, Liechtenstein`s population could fall within the confines of a medium-sized football stadium. The free trade agreement has not yet entered into force. Until then, trade in goods between the United Kingdom and Iceland and Norway will be subject to the rules of the Agreement on Trade in Goods between the United Kingdom, Northern Ireland, Iceland and Norway, which entered into force on 1 January 2021. With regard to trade relations between the United Kingdom and Liechtenstein, the Government stated that trade in goods “protects […] and will continue to be protected” by the UK-Switzerland trade agreement, which also entered into force on 1 January 2021. Liechtenstein is in a customs union with Switzerland.

“The agreement includes maintaining all previous tariff preferences for seafood and improving market access for whitefish, shrimp and various other products,” said Odd Emil Ingebrigtsen, Norway`s Minister of Fisheries. “This will be of great importance for the shrimp industry in Senja and the agricultural industry in northern Norway.” According to the Department of Commerce, the deal would help sectors such as digital, financial and business services to businesses and reduce tariffs on UK exports, boosting a £21.6 billion trade relationship last year. The trade deal is separate from the fisheries quota negotiations, which failed last month. The failure to reach an agreement has been described by fishermen as a “disaster” that could jeopardise hundreds of jobs. It is therefore hoped that the latest agreement will reopen the door to talks. However, the Norwegian government said the agreement with the UK would not restore all the advantages it had when both countries were in the EEA. It is the most advanced trade agreement that Norway, Iceland and Liechtenstein have ever signed, with reference provisions in the areas of digital commerce, mobile roaming and business travel. It will reduce tariffs and offer new duty-free quotas for the export of high-quality British food and agricultural products, and support employment in every corner of our country. The agreement maintains existing duty-free quota access for major UK exports such as cheese, while offering tariff reductions and quotas on pork, poultry and other products. The agreement also recognises the protection status of certain UK wines and spirits, meaning that consumers in Norway, Iceland and Liechtenstein can continue to enjoy our iconic products such as Scotch whisky with the confidence that they are of high quality and authentic.

The UK government says this is mitigated by “state-of-the-art digital regulations” that allow UK companies to export to Norway, Iceland and Liechtenstein “without a single document”. All documents, contracts and signatures will be electronic, the government says, “allowing goods to be transported seamlessly across borders.” However, a promise of “frictionless trade” may seem pretty hollow to some companies that still accept the same broken promises that accompanied the deal with the EU. Following last month`s agreement in principle, the UK acted swiftly to sign a free trade agreement with Norway, Iceland and Liechtenstein that enshrines duty-free trade and ensures better access for British businesses. The Norwegian government, meanwhile, celebrated the achievement of the same trade relationship with the UK as the EU under its trade and cooperation agreement and that there will be no tariffs on frozen peeled shrimp, a turnkey export product, from 1 January 2023. The three countries, which are part of the European Economic Area, which gives them access to the single market, have relied on temporary trade agreements with the United Kingdom since the end of a Brexit transition period on December 31. Read more This signing marks a new, closer alliance between the UK, Norway, Iceland and Liechtenstein, in which our like-minded democracies will work together to promote prosperity and advocate for free trade. Peter Ungphakorn, a former WTO official, was responsible for cracking the code. Through a laborious process revealed on his blog, he found that the rates would be lowered to about NOK 27.15/KG, which is about 25% at current prices. However, Ungphakorn points out that “there is no written obligation anywhere in an agreement – which we have not yet seen – there is nothing legally that prevents Norway from returning to 277%.” The UK will be able to export four cheeses to Norway, including Wensleydale and West Country Farmhouse Cheddar, with lower customs payments than Norway normally charges for foreign cheeses, which can reach 277%.

The parties did not specify the extent to which tariffs would be lower. “If Norway accelerates its exit from the pandemic, then good export deals are important,” she said. David Henig, a former UK government trade official who is now director of the UK TRADE POLICY PROJECT, said: “This UK-EEA free trade agreement offers better trading conditions than the terms of the World Trade Organisation, albeit with many more barriers to trade compared to the previous relationship with the single market.