Lords EU Committee report on proposed Norway and Iceland trade deal
The House of Lords EU Committee has today drawn ‘special attention' to the trade agreement that has been reached between the UK and Iceland and Norway, and which is intended to come into force in the event of a ‘no deal' Brexit. The Committee has highlighted the fact that the proposed agreement will significantly change the terms of UK trade with Norway and Iceland.
The Committee points out that the agreement covers only tariffs that are placed upon goods, and does not cover non-tariff and technical barriers to trade. Nor does the agreement cover trade in services, which currently takes place freely, as both Norway and Iceland are part of the ‘European Economic Area', which is in turn part of the EU's ‘single market'.
The report also shows that existing procurement provisions have not been transitioned, meaning UK companies could no longer bid for some contracts in Norway or Iceland. It is estimated that up to £14m of contracts won each year by UK companies currently benefit from these provisions.
The proposed Trade Agreement does not cover sanitary and phytosanitary provisions, relating to food safety and animal and plant health. As a result, imports and exports of animals and animal products will become subject to additional inspections and documentation requirements.
The report draws the Trade Agreement to the special attention of the House and will inform any debate on the Agreement.