SofteningTheBlow

INTRODUCTIONconsidering how to react to a British exit: it is sensiblethat Westminster should do the same. 4There are a number of models being pushed for thenature of iBritain, and its relationship with EU-27 (the EUwithout Britain in it). Most are based on current examples,although it is worth bearing in mind that no wholecountry has left the EU in the manner Britain would, sonovel arrangements are possible – future thinking neednot be constricted by precedent. Nevertheless, the popularmodels are useful for illustrating the hopes and fears ofBrexit’s potential ‘losers’.The Norway OptionNorway, Iceland and Liechtenstein joined the ‘EuropeanEconomic Area’ (EEA) in 1994, having already tradedfreely with one another under the European Free TradeAssociation (EFTA). Through the EEA, Norway gainsaccess to the EU single market, although it has to followa large number of EU rules and regulations. It also hasto follow ‘rules of origin’ procedures to show where andin what percentage different parts of the EEA exportscome from. The Trade Policy Research Centre fears thiscould overburden British exporters, whereas Business forBritain sees it as an acceptable change. 5Since it has no place in the EU’s decision-makingbodies, it has no say in these rules, so their situation issatirised as ‘Fax Democracy’. This is an oversimplification:the Norwegian Stortinget (parliament) does havemeaningful oversight. 6 Nevertheless, Britain having nosay on the employment and banking rules it must followseems daunting.Norway is not part of the Common Agricultural Policy(CAP) or the Common Fisheries Policy (CFP), and paysfar less into the EU budget than Britain per capita. 7 Norwayis a member of the Schengen Area so cannot control EUmigration.· 3 ·