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The parties are also negotiating a free trade agreement that must be concluded as soon as possible. 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. Trade agreements also aim to remove quotas – limiting the amount of goods that can be traded. As the UK`s largest exporter of manufacturing, the conclusion of agreements with major EEA/EFTA trading partners is good news. The chemical industry supports tariff-free global trade and fair trade, and after the period of uncertainty caused by the Covid 19 pandemic, our industry is eager to contribute to the recovery of the British economy. On 23 October, the UK government signed a new trade agreement with Japan, which means that 99% of UK exports will be tariff-free. 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. Talks between the EU and the UK are under way to reach a post-Brexit free trade agreement before the end of the year. Negotiations for a free trade agreement are underway and the parties are working to conclude negotiations as soon as possible. However, much remains to be done before a free trade agreement comes into force. Norway and the United Kingdom have recognised that it would not be possible to conclude an agreement that could come into force on 1 January 2021 and have therefore agreed to conclude a temporary regime for trade in goods.

Last year, the UK`s trade with Iceland and Norway amounted to $27 billion, including more than $20 billion in goods. The UK no longer complies with EU trade rules on 31 December. Discussions are ongoing between the UK and the EU, but no agreement has been reached on future trade. The economy will face new barriers to trade as soon as the UK leaves the European Union and the internal market, from public procurement to personal movement. In addition to the trade agreement on goods, limited and temporary rules for services and investment are also being considered. In addition, the United Kingdom has agreed with EEA-EFTA states on a number of measures to ensure that trade in services can continue as well as possible before a comprehensive trade agreement enters into force in 2021. A free trade agreement aims to promote trade – usually with goods, but also sometimes with services – by making it cheaper. This is often achieved by reducing or eliminating so-called tariffs – taxes or taxes on cross-border trade.

The UK signed a trade agreement with Iceland and Norway on 2 April 2019. The agreement was signed to maintain continued trade and was part of preparations for a possible “no deal” Brexit. Since the UK leaves the EU through an agreement, the agreement will not enter into force. Why Switzerland is worried about UK trade after Brexit If no deal is reached before 31 December, many imports and exports will be subject to royalties, which could drive up prices for businesses and consumers. Without this agreement, tariffs on British imports from Iceland and Norway could have been increased by about $65 million under World Trade Organization trade agreements. 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. “Negotiations for an ambitious and comprehensive free trade agreement have reached an intense and demanding phase.