Is Norway the best way?
‘Stopgap’ amid ongoing trade talks » Market access but without a voice
I AM standing astride a shabby white line that puts one of my feet in the EU and one outside it.
The marking on the Svinesund Bridge shows the border between Norway and Sweden.
And the UK effectively has one foot out of the EU now too – but where it is heading is far from clear.
With Theresa May’s Brexit plans at risk of defeat in next week’s vote, all eyes are on what comes next.
The two extreme options – a no-deal Brexit or a second referendum – would be highly divisive.
But one gaining support is following Norway’s lead, so we visited to see what it might mean.
Norway is a big export market for British goods and supplies 25% of our gas. The Norway option can seem complicated but would essentially mean us being part of the European Economic Area
through the European Free Trade Association.
The EEA is made up of all EU countries, plus three EFTA states: Norway, Iceland and Liechtenstein.
All EEA members have full single market access and with it accept the free movement of goods, services, capital and people.
Under the Norway option, the post-Brexit UK would join EFTA and a big plus is that the EU seems up for the idea. Other EFTA countries also seem keen, while not discussing it formally.
Norway’s trade minister, Torbjorn Roe Isaksen, said: “Our goal always is to maintain as much of a well-functioning, no-hassle relationship with the UK as possible.”
Yet he admitted Norway’s set-up was not ideal – and Prime Minister Erna Solberg recently warned we would lose trade “bargaining power” outside the EU.
“The main advantage is we have full single market access,” said Mr Isaksen. “The disadvantage is we are part of so much EU regulation
but don’t have a seat at the table.” This switch to being a “rule taker” is concerning for those who fear its impact on our financial sector.
However, it is estimated EFTA countries have to abide by 30% of EU rules and are not bound by the Common Agricultural Policy and the Common Fisheries Policy.
Norway claims by controlling its own waters, it better manages fish stock levels. But the EU charges import duties.
Another criticism is Norway has to pay into the EU budget – £140 per head, compared with £220 for us as a full member. The Norway route could cut our bill 12% to 25%, depending on who you believe.
Another big issue for critics of the option is freedom of workers. Supporters say the EEA Treaty has opt-outs that could limit EU immigration. And one argument for ditching the EU is escaping the European Court of Justice, as disputes could be dealt with by an EFTA Court. But EFTA members are not part of the Customs Union, meaning border checks. Norway says it uses
It’s very hard to look at that Brexit vote and say they mandated Norway EX-PM TONY BLAIR SAYING OPTION WILL NOT WORK FOR UK
technology to avoid long hold-ups.
When we crossed the border by car, we had no checks. But holding areas contained large numbers of lorries.
Doing these at a busy port like Dover could be a big headache, which is one reason why some argue for a “Norway for now” route until we negotiate a long-term trade deal with Brussels. But any resolution would need to address the key issue of the Irish border, which is why ministers are talking about Norway Plus, which involves staying in the customs union.
Staying in the single market would mean firms retain free access to the
EU, which makes up 43% of our exports. We would not benefit from the EU’s trading bloc clout but could – unless we opted for the customs union in addition – strike new deals with countries like India.
The ultimate truth is the Norway option will keep neither Remainers nor Brexiteers happy. Former Labour PM Tony Blair said: “Norway’s not going to work. It’s going to be subject to an even greater degree of attack from people who voted Brexit. It’s very hard to look at that Brexit vote and say they mandated Norway.”
Norway voted against EU membership and people we spoke to in fishing port Alesund backed us getting out.
Waitress Khawla Al-Sahli said: “We feel we are fine the way we are.”
Taxi driver Borre Haljelsvik said: “Together the UK and Norway would be better at standing up to the EU.”
And Professor Carl Baudenbacher, a former president of the EFTA Court, said: “If you compare Theresa May’s Withdrawal Agreement with the EEA, you are better off with the EEA.”
The Bank of England rates the Norway option one of the best and it may have enough support for us to avoid a no-deal exit. It must
therefore be taken seriously.