Comparison Amid No-Deal and Norway Model Post-Brexit

Running head: COMPARISION AMID NO-DEAL AND NORWAY MODEL POST-
BREXIT
COMPARISION AMID NO-DEAL AND NORWAY MODEL POST-BREXIT
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COMPARISION AMID NO-DEAL AND NORWAY MODEL POST-BREXIT1
Answer to Question 1:
The norms prescribed under the Brexit movement confers that Britain is opting to
withdraw from the trade association and membership of the European Union (EU)
(irishtimes.com 2019). Even though a majority of the population supports the Brexit, yet this
movement has been delayed twice due to some negative aspects. However, the UK
administration has come up with an idea to combat these disadvantages known as the ‘plan
B’, which is the Norway model. The other alternative plan is the no-deal that refers to the
immediate withdrawal from the EU without any agreement of the “divorce” procedure.
Even if Norway is a non-member of the European Union (EU), this nation has
complete and tariff-free access to the European single market comprising of different goods
and services. This is through the European Free Trade Agreement (EFTA) that allows
Norway to be a part of the European Economic Area (EEA). This not only allows the nation
to have admission over the product's market but also over the diverse services available
within the economic domain of Europe (bbc.com.news.uk 2019). This is known as the
Norway model. However, being a non-EU member the country stands exempted from the
common policies of fisheries and agriculture prescribed under the rules and regulations of the
EU.
Dragging attention towards the pre-Brexit scenario, this can be mentioned that apart
from being a member of the European Union, UK is one of the major trade partners of the
EU. The unitary market of the EU consists of about 40 percent of the exports of UK (). The
plausible benefits enjoyed by the UK under the EU are the free exchange in the single
market, duty-free circulation of goods and import handlings, tariff-free trading practices. This
also incorporates the free movement of people and capital. Tourists, students, and employees
are not required to hold visas or fear of termination of visas to reside in any of the member

COMPARISION AMID NO-DEAL AND NORWAY MODEL POST-BREXIT2
countries. This has helped in generating employment opportunities leading to a fall in the
unemployment ratios. The UK needs to follow the laws and regulations coined under the
policies of fisheries and agriculture. Under the fishery policy, member countries are allotted
with a definite quantity for catching fish (ec.europa.eu 2016). They are restricted from
commercial fishing during the time of reproduction season. Furthermore, the agricultural
policy aims at supporting the farmers of the member nations with the help of subsidies and
financial assistance (ec.europa.eu 2019). The signing of the NATO agreement has provided
strong security to the member nations that have helped in maintaining the population safe.
Apart from the various pros of being an EU member, there are several disadvantages
possessed by this association. A major portion of the spending of the EU goes in the
developmental policy of agriculture. This has created distortions in the agricultural market by
setting minimum prices on farm products, higher prices to the consumers and excess
inventory accumulation of agricultural products. This has led to the formation of inefficient
administrative policies. Furthermore, the EU emphasis on the acceptance of a single currency
over the member nations. The excess of migration to some of the cities of the UK has led to
overcrowding that is building pressure on the environment. The restrictions and inefficiencies
have induced the UK to decide on exiting the EU association.
Both the model consist of its pros and cons, yet the Norway model seems to
generate plausible rewards for the UK after the Brexit model (bbc.com.news.uk 2019). The
no-deal scenario is a harsh strategy that can negatively affect the economy. However,
supporters of Brexit claims that no-deal will not harm the economy (spectator.co.uk 2018).
UK's major trading partners consist of the EU. A no-deal agreement will make imports
expensive and reduce the volume of exports from this nation. Except for the US, China and
Switzerland all are the member states of the EU. Figure-1 shows the member of the EU
contributes to a majority of exports and imports. This will create shortages in the supply of