Uk Reaches Post-Brexit Trade Agreement With Iceland And Norway
After the briefing of ambassadors from the 27 EU member states, Barnier tweeted: « Full unity. » We will never sacrifice our future for the present. Access to our market is conditional. If the UK were to act in accordance with WTO rules, tariffs would apply to most of the products that British companies send to the EU. This would make British goods more expensive and more difficult to sell in Europe. The UK could also do so for EU products if it so wishes. While a member of the EU, the UK was automatically part of some 40 trade agreements that the EU has concluded with more than 70 countries. In 2018, these activities accounted for about 11% of total trade in the UK. Heads of state or government from the 27 EU member states will also discuss future trade between the UK and the EU at a summit in Brussels on Thursday. Britain is trying to emulate some 40 EU bilateral trade agreements before leaving the bloc. Apart from that, the UK and the EU have agreed in recent months, after lengthy discussions, on how the rules of the Brexit withdrawal agreement will be implemented, particularly with regard to Northern Ireland. Continued trade with the other EEA member, Liechtenstein and Switzerland, which is neither a member of the EU nor the EEA but is part of the EU`s internal market, is part of an agreement already signed in February.
The UK has left the EU, but its trade relations remain unchanged until the end of the year. That`s because it`s in an 11-month transition – designed to give both sides some time to negotiate a new trade deal. It is hoped that the agreement, which also includes safeguards on the circulation of personal data and recognition of professional qualifications, will help pave the way for a comprehensive trade agreement next year. The fixed-term agreement will be based on the agreement signed in April 2019 by Norway and the UNITED Kingdom, which guarantees continuity of trade in the event of the UK leaving the EU without a deal. If no agreement is reached by December 31, many imports and exports will be billed, which could drive up prices for businesses and consumers. Even if a trade agreement is reached, all new controls will not be removed, as the EU requires that certain products (such as food) from third countries be checked. Businesses need to be prepared. German European Affairs Minister Michael Roth said the outcome of the meeting of heads of state and government was « totally uncertain » as there has been « no significant progress » in recent weeks and « fundamental disagreements » remain. No new trade agreement can begin until the transition is over. To date, more than 20 of these existing agreements, covering 50 countries or territories, have been shaken up with the exception of the I.V.
and will begin on 1 January 2021. Based on 2018 figures, this represents about 8% of total trade in the UK. But it is clear that new agreements with some countries will not be ready in time. On Tuesday, EU sources told the BBC that the EU`s chief negotiator, Michel Barnier, said that trade negotiations between the Bloc`s European Affairs Ministers tended not to reach an agreement before the deadline.