Monday

16th Jul 2018

Norway could complicate UK's internal market access

  • The UK is not likely to start formal talks to leave the EU until 2017 (Photo: Davide D’Amico)

Norway could block Britain's post-EU exit access to the European single market.

On Tuesday (9 August), Norway’s European affairs minister, Elisabeth Vik Aspaker, said a UK attempt to rejoin the European Free Trade Association (EFTA) may not be in Norway's interest. EFTA states are not members of the EU.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... our join as a group

“It’s not certain that it would be a good idea to let a big country into this organisation. It would shift the balance, which is not necessarily in Norway’s interests," she told Norwegian newspaper Aftenposten.

Norway gained access to the EU's internal market via its membership with the European Economic Area (EEA). The EEA includes all EU member states along with Norway, Iceland and Liechtenstein and includes the free movement of people, something the UK is likely to oppose.

It is not yet clear if the UK - which was a member till 1973 - wants to rejoin EFTA, which also includes Switzerland. The UK can join EFTA without becoming an EEA member.

But any renewed UK membership bid would require a unanimous vote among existing EFTA members, said Aspake.

The Guardian newspaper reports David Davis, UK's so-called Brexit minister, will hold talks on the issue with senior Norwegian officials in the next few weeks.

Economic uncertainty

The move comes after a new report by the London-based Institute for Fiscal Studies (IFS), which suggest Britain stands to lose billions from its withdrawal from the free trade bloc.

Any UK failure to negotiate a new trade deal following an EU exit will seriously hit Britain's GDP, Wednesday's (10 August) IFS report suggests.

It notes the UK needs to seal a new trade deal or risk facing an equivalent 4 percent loss of economic output. Although, the report notes new trade deals are "unlikely to compensate fully for EU trade".

IFS researcher Ian Mitchell in a statement said that the UK faces big economic choices in terms of future EU relations.

He also pointed out the large differences between having "access to" and a "membership of" the single market.

"Membership is likely to offer significant economic benefits particularly for trade in services. But outside the EU, single market membership also comes at the cost of accepting future regulations designed in the EU without UK input," he said.

Formal exit talks out, Russia in

Meanwhile, UK prime minister Theresa May says her government won't launch any formal exit talks before the end of the year.

She reiterated her position in separate telephone calls to Dutch prime minister Mark Rutte on Monday (7 August).

She has also spoken to Russia's president Vladimir Putin.

Both leaders pledged to smooth strained ties, despite western sanctions on Russia, Russia's support of the Syrian regime, and its invasion of Crimea.

"The prime minister and president agreed that British and Russian citizens faced common threats from terrorism, and that co-operation on aviation security in particular was a vital part of the international counter-terrorism effort," said a UK government spokesperson.

UK's May moves towards 'soft' Brexit

In the wake of two cabinet resignations on the issue, UK government publishes its long-awaited vision for the future relationship with the EU, which would revolve around a free trade agreement on goods, but would end free movement.

EU stays calm as two top UK ministers quit

EU officials said Brexit negotiations will not be affected by the resignations of the foreign secretary and Brexit secretary. European Council president Tusk noted that "unfortunately the idea of Brexit hasn't left" with David Davis or Boris Johnson.

Mr Brexit leads mini anti-May rebellion

Britain's Brexit negotiator, David Davis, has resigned in a mini-rebellion, adding to uncertainty on the EU talks as the clock ticks to March 2019.

EU stays calm as two top UK ministers quit

EU officials said Brexit negotiations will not be affected by the resignations of the foreign secretary and Brexit secretary. European Council president Tusk noted that "unfortunately the idea of Brexit hasn't left" with David Davis or Boris Johnson.

Opinion

Brexit - why can't we just swipe left?

The entire Brexit debate since at least 2015 has been like a bad date. But this is the age of Tinder, why can't we just swipe left?

Stakeholders' Highlights

  1. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  2. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  3. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  4. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  5. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  6. Mission of China to the EUChina: Work Together for a Better Globalisation
  7. Nordic Council of MinistersNordics Could Be First Carbon-Negative Region in World
  8. European Federation of Allergy and AirwaysLife Is Possible for Patients with Severe Asthma
  9. PKEE - Polish Energy AssociationCommon-Sense Approach Needed for EU Energy Reform
  10. Nordic Council of MinistersNordic Region to Lead in Developing and Rolling Out 5G Network
  11. Mission of China to the EUChina-EU Economic and Trade Relations Enjoy a Bright Future
  12. ACCAEmpowering Businesses to Engage with Sustainable Finance and the SDGs

Latest News

  1. EU is 'foe', as Trump seeks to make friends with Putin
  2. Let's not be 'naive' with Chinese partner, says senior MEP
  3. Trump, trade, and Brexit in EU headlines This WEEK
  4. EU and China edge closer in Trump's 'America First' world
  5. How the World Cup exposed Russian chauvinism
  6. Stage set for Trump-Putin finale
  7. Trump scuppers trade deal with UK under May's Brexit
  8. Trump wades into Brexit after Nato fiasco

Join EUobserver

Support quality EU news

Join us