If you`re a business owner in the United Kingdom, you`ve likely heard a lot of talk about free trade agreements and how they can impact your operations. One of the most important agreements currently being negotiated is between the UK and the European Union.

But what about other free trade agreements? One that has been the subject of recent discussion is the potential agreement between the UK and the United States. However, another important agreement that might be flying under your radar is the one between the UK and the countries currently part of the European Free Trade Association (EFTA).

What is EFTA?

EFTA is an organization comprising four European countries that are not part of the EU: Iceland, Liechtenstein, Norway, and Switzerland. While these countries are not EU members, they are still closely aligned with the EU in terms of trade and economic policies. As part of this alignment, they have signed free trade agreements with the EU, and are part of the European Single Market. This allows for the free movement of goods, services, and people between EFTA member countries and the EU.

What are the benefits of an agreement between the UK and EFTA?

If the UK were to negotiate a free trade agreement with EFTA, it would mean that British businesses could continue to enjoy the benefits of trading with these countries. This is particularly important for businesses that rely heavily on exports, as it could help to secure their access to these markets.

At the same time, an agreement with EFTA could also help to mitigate any negative impacts that may come from the UK`s exit from the EU. By maintaining access to the Single Market through EFTA, businesses could continue to benefit from the same levels of regulatory alignment and harmonization as they do now.

What about HMRC?

The UK`s tax authority, HM Revenue and Customs (HMRC), is responsible for implementing and enforcing any free trade agreements that the country may enter into. If a UK-EFTA agreement were to be signed, HMRC would be responsible for ensuring that all parties are meeting their obligations under the agreement.

This would include verifying that imported goods are eligible for preferential treatment under the agreement, and collecting any duties or taxes that are owed. HMRC would also be responsible for coordinating with their counterparts in EFTA countries to ensure that the agreement is being implemented smoothly.

In summary, negotiating a free trade agreement between the UK and EFTA is an important step in ensuring that British businesses can continue to trade with these valuable markets. By working with HMRC and other government agencies, businesses can prepare for the changes that will come with Brexit and position themselves for success in the years ahead.