THE Scottish Government has criticised UK ministers for failing to fully involve it in discussions on a crucial trade agreement with Norway, Iceland and Liechtenstein.
Scotland’s Trade Minister Ivan McKee has raised concerns over the lack of consultation of devolved administrations on the details of the new post-Brexit deal, which was announced in July.
In a letter to the House of Lords European Affairs Committee, which is scrutinising the trade agreement, McKee (below) said trade with Norway and Iceland in particular is vital to Scotland. But he said: “We have consistently made the case for a full role for the Scottish Government in all stages of trade negotiations.
“As the attached note sets out, that did not happen in this case, with the result that we were not involved in any of the crucial detail relating to tariffs and goods market access.
“We therefore continue to press the UK Government to involve the Scottish Government and other devolved administrations fully in the development of future trade agreements.”
The letter states that Scottish exports account for a quarter of all UK goods exports to Norway and Iceland, including machinery, transport equipment, fuel, iron and steel, and agricultural and fisheries products.
For some products, Scotland is the main export nation to these countries from within the UK. Examples of this include £57 million of animal feed, including fish feed, to Norway and Iceland, which accounts for 84% of all UK animal feed exports to these countries.
However, in the letter McKee said that devolved administrations originally had “no involvement” in the process other than receiving updates on progress. He said: “The Scottish Government made clear to DIT [Department for International Trade] that this was not acceptable.
“In February 2021, we were advised that DIT would share more information on the negotiations, including offering the opportunity to comment on texts where they related to devolved competence.
“However this still fell short of the level of engagement that we have called for, as it meant that we were not consulted on significant aspects of the negotiations, such as the UK goods market access offers and negotiating positions.”
When the deal was announced in July, then international trade secretary Liz Truss claimed it was a “landmark moment”, which would “support jobs, cut red tape, and open up more opportunities for the UK”.
However, McKee’s letter concluded: “While it is welcome that an agreement has been secured with Norway, Iceland and Liechtenstein, this – as with the other continuity trade agreements – is essentially an attempt to replicate the trading environment we already had as a member of the EU.
“However no trade agreement is able to provide the full range of benefits that Scotland enjoyed as a member of the European single market.”
A DIT spokesman said the benefits of the trade deal included “gold standard provisions” in digital trade, mobile roaming and business travel.
He said: “Our trade strategy is delivering for people in Scotland, and the Trade Secretary travelled to Edinburgh in her first week to hear how Scottish businesses can make the most of the new trade deals we’re striking across the world.
“We have worked with Scottish Government officials throughout the negotiations for our free trade agreement with Norway, Iceland and Liechtenstein, and continue to engage on progress.”
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