The Free Trade Agreement between Iceland, the Principality of Liechtenstein, and the Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland

The UK signed a new Free Trade Agreement (“FTA”) with Norway, Iceland and Liechtenstein on 8 July 2021.

The comprehensive FTA covers trade in services, investment, and a range of other commitments designed to liberalise and support trade. 

The FTA came into effect between the UK and Liechtenstein on 1 January 2022 and entered into force on 1 September 2022.

Due to Liechtenstein’s customs treaty with Switzerland, trade in goods between Liechtenstein and the United Kingdom will continue to be governed by a separate agreement: the Agreement between the United Kingdom of Great Britain and Northern Ireland and the Swiss Confederation. The Switzerland-UK agreement has been in force since 1 January 2021.

Here are details on trade with Liechtenstein and Switzerland.

Trade in services and investment

The FTA includes provisions on services and investment. 

The FTA commits the parties to granting preferential market access and fair treatment for service suppliers and investors, and provides a system for the mutual recognition of qualifications. 

Find out more about this and selling services to Liechtenstein.

Digital trade

The FTA includes provisions on digital trade aimed at supporting e-commerce, data flows and consumer safeguards between the UK and Liechtenstein. These measures are targeted at: 

• prohibiting the application of customs duties to electronic transmissions and their contents 
• facilitating the cross-border flow of data by prohibiting requirements to store or process data in a certain location 
• upholding the UK’s robust data protection laws for individuals’ personal data when data is being transferred across borders 
• protecting the legal effect, validity, and enforceability of an electronic contact and signatures against unjustified discrimination 
• cooperating on the standardisation of electronic trade administration documents taking into account developments in paperless trading principles and guidelines 
• protecting online consumers by prohibiting fraudulent and deceptive commercial activities online 
• protecting users from unsolicited commercial electronic messages (spam) 
• upholding principles of ‘net neutrality’ by promoting open internet access, as a means of developing an open, secure and trustworthy online environment 
• ensuring companies are protected by a guarantee against the forced transfer of source code, protecting valuable intellectual property 
• promoting best practices and the use of risk-based approaches to addressing cybersecurity threats for businesses 
• encouraging the release of anonymised government datasets where appropriate with a view to enhancing and generating business opportunities, especially small and medium-sized enterprises (SMEs) 
• cooperating on digital trade issues in future

Government procurement  

The FTA includes a procurement chapter which guarantees rights for UK companies to be treated fairly and without discrimination when competing in the public procurements covered by the agreement.  

Market access under the FTA is broad and goes further than the World Trade Organization’s Agreement on Government Procurement, including additional coverage of public procurement for education, legal and telecommunication services. 

Notices and information for covered procurements for Liechtenstein are published online and are accessible to UK businesses to view on Liechtenstein’s Gazette and Tenders Electronics Daily. The UK GREAT website also highlights public contract opportunities in Liechtenstein.

Small and medium enterprises

The FTA contains an SME chapter that recognises the importance of SME trade and aims to enhance their potential.  

Commitments to co-operate on SMEs mean that the UK and Liechtenstein will, in the future, consider ways to increase trade and investment opportunities for SMEs.  

Existing resources for SMEs: 

• InternationalExport Trade AdvisersSupport (ITAs)  can supporthelp SMEs to build their exporting capability 
• TheBusiness Export Academy offer offers bespokewebinars training programme and digital tools training
• UK Export Finance helps to ensure no viable UK export fails for lack of finance or insurance

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This guidance is for information only. You should consult your legal advisers if you wish to ensure you understand the legal implications of trading for your business.

Contact

If you have queries about trade, contact the Department for Business and Trade (DBT).

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