Britain’s way ahead?

How the European Economic Area works

The UK could pursue a Norway-style deal with the EU after Brexit in a move that would enable it to continue to access the Single Market. The UK could apply to join the European Economic Area, whose three current members – Norway, Liechtenstein and Iceland – enjoy free trade in goods and services with the EU. Banks enjoy unfettered access to European markets without having to base their offices within the EU.

Members can make their own free trade deals with nations outside the EU. However, the UK would still have to pay into the EU budget and agree to the principle of free movement – two of the most controversial aspects of EU membership for British voters.

The UK would have to join the European Free Trade Association before it could join the European Economic Area.

Britain helped found the group, which aims to liberalise free trade, in 1960. It has four current members – Switzerland, Norway, Liechtenstein and Iceland.