Exporters face 52% tariffs without deal

Preferential access to Norway and Iceland may be lost

Scottish exporters are in danger of losing preferential access to Norwegian and Icelandic markets at the end of the year.

Rural Economy Minister Fergus Ewing has warned the absence of a trade deal with Norway and Iceland could see huge tariffs imposed across a range of produce, including vegetables, fruit, cereals, beverages and animal feed.

Scottish firms exporting fish feed are facing “eyewateringly high” tariffs of up to 52% on their exports, with these sales alone putting millions of pounds of trade at risk, he said.

According to Mr Ewing, a deal covering trade with Norway and Iceland after Brexit is one of a number the UK Government “expects not to have concluded by the end of this year”.

If Westminster insists on not extending the Brexit transition period, it “must take appropriate action to ensure there is no loss of market access to countries such as Norway and Iceland as a matter of urgency”, the minister added.

The “most appropriate action” would be to extend the Brexit transition to allow governments to focus on protecting the health of their citizens instead of trade deals, he said.

In a letter to UK Environment Secretary George Eustice, Mr Ewing said: “Scottish producers also rely on imports from these countries as key inputs.

“Due to the lack of an agreement between Norway, Iceland and the UK, and indeed the EU, it remains unclear whether trade will take place between these countries under the global tariff or preferential access.

“This is a real concern for the thousands of businesses who have limited time to adapt.”

Salmon farming giant Mowi has a fish feed mill at Kyleakin, on Skye, supplying the company’s own sites and other aquaculture industry customers in countries including Norway.

Claes Jonermark, feed operations director at Mowi, said: “We hope that in the end, these negotiations will result in trade conditions that are beneficial for the export of food and feed products from Scotland.

“Many of these goods from Scotland are produced in rural areas that are much more vulnerable to the impact of trade restrictions.”

The UK Government did not respond to a request for comment.

“It remains unclear whether trade will take place... under the global tariff”