Uk Norway Free Trade Agreement

If the UK leaves the EU without a deal on 31 December, it will affect trade in goods for Norway. There are still some aspects of merchandise trade that have not yet been fully clarified. Below, we briefly outlined some effects on the trade in goods that are known. The Ministry of Foreign Affairs and the Ministry of Trade and Fisheries indicated that a free trade agreement could not completely replace the EEA agreement. Industry must prepare for new trade barriers when the UK leaves the EU and the internal market. The UK signed a trade agreement with Iceland and Norway on 2 April 2019. The agreement was signed to maintain continued trade and was part of preparations for a possible “no deal” Brexit. Since the UK leaves the EU through an agreement, the agreement will not enter into force. If no agreement is reached with the EU by the end of the year, when the transition period ends, Britain will not violate World Trade Organization (WTO) rules. These rules, including high tariffs, would have caused serious headaches for trade between the UK and Norway. In addition, the United Kingdom has agreed with EEA-EFTA states on a number of measures to ensure that trade in services can continue as well as possible before a comprehensive trade agreement enters into force in 2021. Investments and freedom of establishment may not be properly protected by the final free trade agreement. Nor is it covered in the transitional agreement.

The potential consequences for corporate taxation may be: negotiations for a free trade agreement are underway and the parties are working to conclude negotiations as quickly as possible. However, much remains to be done before a free trade agreement comes into force. Norway and the United Kingdom have recognised that it would not be possible to conclude an agreement that could come into force on 1 January 2021 and have therefore agreed to conclude a temporary regime for trade in goods. “We agreed to put in place a temporary regime. That`s good news. We are now in close talks with the UK to adapt the agreement, which means we can continue to avoid tariffs on industrial products. However, it is important for businesses to be aware that this agreement is both broad and time-limited,” said Iselin Nyb√©, Minister of Trade and Industry.

Comments are closed.