An agreement to lock in trade in goods was signed in London.
The agreement covers trade in goods, and ensures 95 per-cent of goods trade with Norway and over 90 per-cent with Iceland will remain tariff-free, providing businesses with certainty that they can continue to operate on the same terms as they do today when the transition period ends, the Department of International Trade wrote in a statement on Tuesday.
This agreement on goods is an interim agreement while the UK and EEA-EFTA countries complete negotiations for a comprehensive FTA to come into force in 2021.
???????? Today we have secured continuity for businesses trading goods with Norway and Iceland, worth over £20bn last year.
We're looking forward to a more comprehensive FTA with Norway, Iceland and Lichtenstein that will come into force in 2021. pic.twitter.com/tMpT1KnmeO
— Liz Truss (@trussliz) December 8, 2020
The news is a continuation of sorts. A similar agreement was signed in 2019, which was only to be used in a no-deal scenario.
The UK stops following EU trading rules on the 31st of December. Talks between the UK and the EU are happening, but no agreement has been settled on future trade.