On 8 December 2020, Norway signed a temporary agreement on trade in goods with the United Kingdom. This agreement came into effect 1 January 2021 and applies until a free trade agreement is coming into effect. The negotiations on a free trade agreement are ongoing, but it is unclear when such an agreement will be completed and come into effect.
From 1 January 2021, Norway’s relationship with the United Kingdom was no longer regulated by the EEA Agreement. This affected the trade of goods, and Norway signed therefore a temporary agreement on trade in goods with the United Kingdom.
The temporary agreement on trade in goods is based on the agreement signed by Norway and the United Kingdom in April 2019 in case of a “no-deal” Brexit. The temporary agreement on trade in goods has limited extent and duration. The agreement came into effect 1 January 2021 and applies until a free trade agreement is coming into effect.
The purpose of the agreement is to ensure continued market access for trade in goods and tariff preference. The agreement also ensures that Norway and the United Kingdom avoid new duty on industrial goods.
Adjustments in the temporary agreement on trade in goods can occur.
What should companies do now?
Companies should be prepared for the changes and reductions applicable from 1 January 2021. The main recommendation is that companies assess their activities with the aim of identifying areas that will be affected by Brexit.
Please do not hesitate to get in touch if you need assistance to determine if the new agreement affect your business.
Also see: Brexit overview
First published 9 December 2020. Updated March 2021.
