UK, Norway and Iceland sign trade continuity deal

Britain, Norway and Iceland have signed a trade continuity agreement, said the UK in a statement.

The agreement signed on Tuesday means that the majority of trade in goods between the countries will remain tariff-free. The trade in goods between Britain and Norway and Iceland was worth 20 billion pounds last year.

The agreement covers trade in goods, and ensures 95 per cent of goods trade with Norway and over 90 per cent with Iceland will remain tariff-free, providing businesses with certainty that they can continue to operate on the same terms as they do today when the transition period ends.

The agreement ensures British firms will continue to see duty free access for all exports of industrial products. In addition, British consumers can continue to enjoy popular Icelandic and Norwegian products such as frozen haddock. Over 30 per cent of the UK’s imports of fish fillets last year came from Iceland, many of which are used in British fish and chips shops.

Without this agreement, duties on UK imports from Iceland and Norway could have increased by an estimated £65 million under World Trade Organisation trading arrangements.

International Trade Minister Ranil Jayawardena said:

“Today’s agreement locks in tariff-free trade for businesses  between our countries, supporting jobs and livelihoods across Britain and beyond.

This agreement on goods is an interim agreement while the UK and EEA-EFTA countries complete negotiations for a comprehensive FTA to come into force in 2021.

I look forward to finalising a comprehensive trade agreement on goods and services with our longstanding partners Norway, Iceland and Liechtenstein to enter into force in 2021 that delivers on our shared commitment to free and fair trade.”

In addition, the UK has also agreed a number of measures with the EEA EFTA states to ensure trade in services can continue as smoothly as possible ahead of a comprehensive trade agreement coming into force in 2021.

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