THE BUSINESS OF INTERNATIONAL TRADE
The UK has signed continuity agreements with both Norway and Iceland which will come into force from January 1, 2021, when the UK's transition period with the European Union expires.
The agreement will mean that 95% of goods exported to Norway and 90% of goods exported to Iceland will be tariff-free. The agreement is being described as an 'interim' arrangement while the EEA-EFTA countries and the UK negotiate a Free Trade Agreement which is due to be completed in 2021.
International Trade Minister, Ranil Jayawardena, reacted to the agreement by saying "Today’s agreement locks in tariff-free trade for businesses worth over £20 billion between our countries, supporting jobs and livelihoods across Britain and beyond. 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."
Steve Elliott, Chief Executive of the Chemical Industries Association, said that the deal was particularly important for the chemical industry, saying that "As the UK’s biggest manufacturing exporter, the successful conclusion of arrangements with important trading partners in the EEA/EFTA is good news. The chemical industry supports global tariff-free and fair trade and following the period of uncertainty caused by the Covid-19 pandemic our industry looks forward to contributing to the recovery of the UK economy."
For more details on the agreement, go to www.gov.uk/government/news/united-kingdom-norway-and-iceland-sign-trade-continuity-agreement.
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