A “Norway Plus” Brexit will be the least damaging to the pharmaceutical manufacturing sector, according to an industry logistics expert.

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Adam Johnson, director of Leeds-based Tudor International Freight, says that the Norway option will be the least damaging form of Brexit for pharmaceutical manufacturing companies trading with EU countries.

Johnson argues that the draft withdrawal agreement and political declaration agreed by prime minister Theresa May and the EU Commission is almost certain to be rejected by the House of Commons.

There also appears to be no majority in Parliament for the UK leaving the EU without a deal next March.

Johnson states that one potential option is for the UK to re-join the European Free Trade Association (EFTA) and become a European Economic (EEA) member, operating alongside Norway, Iceland and Liechtenstein.

An EEA option would cause the least economic damage as the UK would be kept in the EU’s Single Market, benefitting the pharmaceutical manufacturing industry’s EU traders.

Johnson explained: “The Single Market covers all EU member states, plus four other countries, and involves the free movement of goods, services, labour and capital. Nations in the Single Market observe common rules and regulations, making it easy for their companies to trade with each other across borders.

“The second word in ‘Norway Plus’ refers to the UK adding the effective continuation of its Customs Union membership - already agreed in principle by the EU, as it’s part of the existing draft withdrawal agreement - to EEA membership. The Customs Union, embracing all EU states and some other countries, involves members waiving taxes on goods traded between them and applying a common tariff to items entering their territories from external nations.”

By continuing within the Single Market and Customs Union membership, goods shipped between the UK and EU wouldn’t be subjected to costly tariffs or time-consuming customs and regulatory checks.

Johnson said: “Such arrangements are easy, quick and cheap for the pharmaceutical manufacturing industry’s EU traders and the freight forwarders, like us, that they employ. It seems the only practical alternative way of retaining these almost-ideal arrangements now would be Brexit not happening at all, through a vote in Parliament or – more likely – a further referendum, for example.”

Johnson said the EEA option, in addition to providing much-needed certainty for the pharmaceutical manufacturing sector’s EU traders, would preserve the open border in Ireland, which was vital for maintaining trade and other reasons.

He said: “Perhaps the most crucial piece of evidence in favour of the EEA is that, almost 25 years after joining it, Norway is prosperous and competitive. Polls among its people show strong support for retaining EEA membership and typically only about 20% of those questioned want to join the EU.”