Free Trade agreement between Iceland, the Principality of Liechtenstein and the Kingdom of Norway and the United Kingdom of Great Britain
and Northern Ireland (Goods and Services)

Note on the Meeting of 2 July 2024

Chair: Ambassador H.E. Salomon EHETH (Cameroon)

1.1.  The 110^th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the "Committee") was convened in Airgram _WTO/AIR/RTA/36/Rev.1 dated 21 June 2024.

1.2.  Under Agenda Item 7.4, the CRTA considered the Agreement establishing a Free Trade agreement between Iceland, the Principality of Liechtenstein and the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland (Goods and Services), (hereinafter "the Agreement"). The Chair stated that the Factual Presentation had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document _WT/L/671).

1.3.  The Agreement had entered provisionally into force between 1 December 2021 and 1 September 2022 depending on the country. The original notification of the Agreement had been made by the Parties on 30 November 2021 in documents _WT/REG459/N/1-_S/C/N/1072; subsequent notifications were also made concerning the full entry into force of the Agreement. The Agreement had been notified under both Articles XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS as an agreement establishing a free trade area for trade in goods and services within the meaning of Articles XXIV of the GATT 1994 and Article V of the GATS, respectively. The text of the Agreement, together with its Annexes, was available on the Parties' official websites and in the WTO RTA database. The Factual Presentation, document _WT/REG459/1, and questions and replies, document _WT/REG459/2, had been distributed.

1.4.  The representative of the United Kingdom delivered a joint statement on behalf of the UK and Norway, Iceland and Liechtenstein (EEA/EFTA States) on their free trade agreement. The Agreement had been in effect between the UK and Norway since 1 December 2021, between the UK and Liechtenstein since 1 January 2022, and between the UK and Iceland since 1 September 2022.

1.5.  The comprehensive FTA covered trade in goods and services. It also contained broad provisions on investment, intellectual property rights, SMEs, trade and sustainable development and a range of other commitments designed to liberalise and support trade, including on customs, procurement, digital and telecoms. Due to Liechtenstein's customs union with Switzerland, the UK and Liechtenstein goods trading relationship continued to be governed by the Agreement between the UK and Switzerland.

1.6.  The Agreement reaffirmed the value of their long-standing relationship. It provided predictability, protection and opportunities for businesses, investors and consumers in their countries.

1.7.  Total trade in goods and services (exports plus imports) between the UK and the EEA/EFTA States was £41.7 billion in 2023. The UK's top services and goods exports included other business services, oil and general industrial machinery, and EEA/EFTA's main exports to the UK included petroleum products, oil, gas and transportation services.

1.8.  The Agreement replaced the prior interim continuity agreement on trade in goods between the UK, Norway and Iceland which had come into force on 1 January 2021 to maintain the preferential terms on goods from the EEA Agreement and the EU's bilateral agreements with Norway and Iceland.

1.9.  The Agreement included improvements to commitments agreed as part of the interim agreement on trade in goods in areas such as rules of origin and customs cooperation, as well as new commitments in other areas important to goods trade such as Technical Barriers to Trade and Sanitary and Phytosanitary Measures.

1.10.  Under the comprehensive FTA, cumulation was permitted between the Parties and non-parties listed in Appendix 3 to the Rules of Origin Protocol, provided the exporting Party and the non-party had a preferential trade agreement in place.

1.11.  On services and investment, the FTA included provisions that secured continued market access across a broad range of sectors, including professional and business services, financial services and transport services, and supported new and continued foreign direct investment.

1.12.  The Agreement contained various time commitments to ensure that it continued to work for all Parties. For instance, it included a review clause where on the request of a Party, the Parties agree to consult on further liberalisation in agricultural and fisheries products including through a review every five years.

1.13.  The institutional arrangements included an overarching Joint Committee which was responsible for overseeing the operation and implementation of the Agreement. Its meetings were comprised of representatives of the UK, Norway, Iceland and Liechtenstein.

1.14.  There were also five specialised subcommittees established under the FTA, which were supervised by the Joint Committee. The subcommittees covered Services, Investment and Digital, SPS, Trade in Goods, TBT, and Trade in Sustainable Development.

1.15.  The Agreement included a provision for Parties to undertake a general review of its implementation and operation 10 years after it had come into effect or at a time to be agreed by the Parties.

1.16.  The Parties continued to work closely together on effective implementation of commitments and reducing trade barriers to ensure their businesses and consumers fully benefited from the comprehensive Agreement.

1.17.  The UK and EEA/EFTA States remained committed to building on their trading relationship and looked forward to continuing their collaboration and exploring opportunities to further strengthen and deepen their economic ties.

1.18.  The representative of Canada thanked Liechtenstein, Iceland, Norway and the UK for their efforts in the transparency exercise and particularly for their answers to Canada's questions. She wished them a successful and effective implementation of the Agreement.

1.19.  The representative of the European Union thanked the UK for the presentation on behalf of the Parties and wished them success in implementing the Agreement.

1.20.  The representative of China expressed her appreciation to all the Parties for their efforts in implementing the Transparency Mechanism which had provided them useful information to better understand the Agreement. She also expressed her appreciation to the Secretariat for preparing the factual presentation and wished the Parties success in implementation of the Agreement.

1.21.  The Chair noted the consideration of the goods and services aspects of the Free Trade Agreement between the United Kingdom, Iceland, Liechtenstein and Norway, had allowed the Committee to clarify a number of questions and conclude oral discussion of the RTA in accordance with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow‑up questions were invited to forward submissions in writing to the Secretariat by 9 July 2024 and Parties were asked to submit replies in writing by no later than 23 July 2024. In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of the meeting would be circulated promptly, in all WTO official languages, and made available in the WTO database on RTAs.

1.22.  The Committee took note of the comments made.

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