News

Interim Continuity Trade Agreement with Iceland and Norway

Trade and market access

Brexit pulse alert: respond to the business impacts of Brexit

8 December, 2020

Brexit development

The UK government has agreed an interim continuity trade agreement with Iceland and Norway to ensure that businesses in all three countries can continue to trade on largely the same terms as present.

Top Brexit impacts

The agreement provides confidence to businesses that trade between the UK and both Iceland and Norway will continue on largely the same terms as at present.

The agreement ensures that 95% of goods traded with Norway and over 90% of goods traded with Iceland will remain tariff-free. In addition, the three countries have agreed a number of measures to ensure the smooth continuity of trade in services, such as the continued recognition of professional qualifications for residents and employment rights for UK nationals serving as directors in Norway.

The UK government has said the new agreement “ensures British firms will continue to see duty-free access for all exports of industrial products… 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”.

The interim agreement will be renegotiated in 2021, to be replaced by a comprehensive free trade agreement.

Actions for business

Businesses trading within both the UK-Iceland and UK-Norway corridors will now be able to plan for the future with greater certainty. Once published, firms will have some time to examine the legal text of the agreement, which will come into effect on 1 January 2021 after the transition period.

To discuss specific support with your Brexit preparations based on this latest development contact: Deloitte Brexit Insight

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