The United Kingdom (UK) has signed a Free Trade Agreement (FTA) with Norway, Iceland, and Liechtenstein to bolster cooperation across several sectors, including digital, financial, and professional business services.
British Minister for International Trade Ranil Jayawardena signed the deal with his counterparts from Norway, Iceland, and Liechtenstein on Thursday. It is the most advanced trade deal between the three European countries and follows a series of comprehensive talks that lasted for months and concluded in June.
Celebrating the deal, British International Trade Secretary Liz Truss said, “Today’s deal signing is a landmark moment for trade between the UK, Iceland, Norway and Liechtenstein. It will support jobs, cut red tape, and open up more opportunities for the UK.” This sentiment was echoed by the Norwegian Minister For Trade and Industry, Iselin Nybo, who said, “The UK market is of great importance to Norway. I am proud that we have concluded an ambitious and comprehensive free trade agreement, which will provide predictability and opportunities for our businesses, investors, students and workers in the years to come.”
Similarly, Iceland’s Minister for Foreign Affairs and International Development Cooperation, Gudlaugur Thór Thórdarson, and Liechtenstein’s Minister of Foreign Affairs, Education, and Sport, Dominique Hasler, also welcomed the agreement.
The UK government’s statement said the deal allows for tariff-free, duty-free quotas to export British food and farm products. As a result, it will enable duty-free access to vital British exports, including cheese. The deal also reduces tariffs and quotas on pork, poultry, and other goods. The statement added, “This signing marks a new closer alliance between the UK, Norway, Iceland and Liechtenstein, which will see our like-minded democracies work together to promote prosperity and champion free trade.”
The agreement is another step in the UK’s push to establish closer trade ties with its allies following its exit from the European Union. A consequence of Brexit is that the UK will now be able to enter into such bilateral trade deals with countries across the globe. In addition, such agreements will help the country reduce the combined impact of Brexit and the COVID-19 pandemic on the British economy. In June, Liz Truss signed an FTA with Australia following the G7 Plus Summit and engaged in the fifth round of trade talks with New Zealand’s Trade and Export Growth Minister, Damien O’Connor, to discuss a similar agreement.
Therefore, the FTA with Iceland, Norway, and Liechtenstein, with whom the UK had a trading relationship worth £21.6 billion in 2020, facilitates its larger aim to secure its post-pandemic and post-Brexit economy.
UK Signs FTA with Norway, Iceland, Liechtenstein
The United Kingdom has signed free trade agreements with Norway, Iceland, and Liechtenstein as part of its continued efforts to reinvigorate trade relations in the post-Brexit era.
July 9, 2021
SOURCE: GOVT OF ICELAND