COPENHAGEN, Denmark (AP) — Non-European Union member Norway said Friday it has reached a post-Brexit trade deal with its greatest trading partner, Britain, which left the EU last year following a 2016 referendum.
The agreement includes Iceland and Liechtenstein, which also are outside the bloc and together with the Norwegians form the European Economic Area (EEA).
Norwegian Prime Minister Erna Solberg called the deal “ambitious and comprehensive.”
“When Norway is speeding up on its way out of the pandemic, then good export agreements are important,” she said.
Negotiations have been going on since 2020, and some of the differences included the import to Norway of agricultural goods such as meat and cheese, and fish exports to Britain, Norwegian media said.
Norway’s EEA membership grants it access to the EU’s vast common market and most goods are exempt from duties. However, obstacle-free trading across the North Sea ended when Britain left the bloc’s economic rules at the end of 2020.
“Although it is not as good as the EEA agreement, this is the most comprehensive free trade agreement ever,” Solberg told a press conference.
Norway’s exports to Britain are worth close to 200 billion kroner ($24 billion), Solberg said.
Britain said total trade with Norway, Iceland and Liechtenstein was worth 21.6 billion pounds ($30.5 billion) in 2020.
Britain’s International Trade Secretary Liz Truss called the deal “a major boost for our trade with Norway, Iceland and Liechtenstein” while International Trade Minister Ranil Jayawardena said it “shows that the United Kingdom will continue to be a trade partner of choice.”
The British side said British farmers will benefit from lower tariffs and more duty-free access on goods like cheese, pork and poultry. They also stressed that reduced import tariffs on shrimps, prawns and haddock will lower costs for British fish processing.
Also, it will support 18,000 jobs in Scotland and northern England by creating new opportunities for the British fish-processing industry, London said.
However, the deal contains some barriers as Britain had completely free trade with the three countries when it was a member of the EU.
Jill Lawless in London contributed to this report.
Jan M. Olsen, The Associated Press