The news is a kind of sequel. A similar agreement was signed in 2019, which was to be used only in a no-deal scenario. Norway today signed an agreement with the United Kingdom on the withdrawal of the United Kingdom from the European Economic Area (EEA) following Brexit. In the absence of this agreement, tariffs on UK imports from Iceland and Norway could have been increased by around GBP 65 million under the World Trade Organisation trade agreements. The Committee recalls that the agreement covers only customs duties on products and non-tariff and technical barriers. The agreement also does not apply to trade in services, which is currently free, with both Norway and Iceland being part of the “European Economic Area”, which in turn is part of the EU`s “internal market”. An agreement on the security of trade in goods was signed today (Tuesday 8 December) in London between the United Kingdom and Iceland and Norway. Relations between Iceland and the United Kingdom are mainly based on the EEA Agreement. After withdrawal from the EU, the United Kingdom is no longer a party to this Agreement and will no longer apply to the United Kingdom at the end of the transaction period. This will lead to significant changes in relations between Iceland and the United Kingdom.
As negotiations on future agreements between Iceland and the United Kingdom are still ongoing, it remains to be determined exactly how these changes are made. The agreement also clarifies what will happen to processes that began before the end of the transition period, but will continue or end after the end of the transition period. . . .