Decision

9 November 2022: Joint minutes of the first Sub-Committee on Trade and Sustainable Development (TSD) meeting

Updated 6 November 2023

Joint Minutes of the first meeting of the Sub-Committee on Trade and Sustainable Development (TSD) under the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland, Iceland and the Principality of Liechtenstein and the Kingdom of Norway.

First meeting took place on 9 November 2022 by video conference.

1. Greeting and opening remarks

The first meeting of the Sub-Committee on Trade and Sustainable Development (TSD) under the UK-EEA EFTA Free Trade Agreement (‘‘the Agreement’’) took place on 9 November 2022 via video conference.

It was a positive and constructive engagement, with all sides noting their support for environmental and labour standards as well as women’s economic empowerment, and the role of trade in ensuring this.

2. Approval of the agenda and adoption of the Rules of Procedure

The meeting agenda was formally adopted. The Parties confirmed their agreement for the TSD to adopt the Joint Committee’s Rules of Procedure mutatis mutandis (as set out in Decision 1/2022 of the Joint Committee to the Agreement).

3. Discussion on progress towards establishing domestic advisory groups

The UK plan to draw on their existing Trade and Sustainable Development Domestic Advisory Group (TSD DAG) to support the Agreement or look into other options if necessary.

The EEA EFTA States will rely on existing consultative groups.

The UK and the EEA EFTA States agreed not to hold a public session, noting that the Agreement allows for effective stakeholder consultation through their domestic groups, but agreed to review this approach if needed.

4. Dedicated discussion sharing information on Trade and Environment, including climate

The Parties provided updates on their implementation of the environment and climate aspects of Chapter 13 of the Agreement.

The UK reaffirmed their Multilateral Environmental Agreement (MEA) obligations and set out their efforts to counter illegal wildlife trade, and their ambitions for sustainable management of forests and trade in timber products. The UK highlighted the issue of illegal, unreported, and unregulated (IUU) fishing in trade, sustainable use of fisheries resources and sustainable aquaculture. The UK outlined their commitment to end IUU fishing by ensuring strong measures such as catch documentation schemes to increase traceability. The UK also discussed their climate policy and achievements from COP26 including the launch of the Glasgow Breakthroughs and Net Zero Strategy, in which the UK has set out ambitious plans across key sectors of the economy to meet our carbon budgets and net zero.

Iceland pointed to their multilateral work on environment and trade as a priority area, especially the World Trade Organization (WTO) Agreement on fisheries subsidies. Iceland highlighted geothermal energy as a key area in their high-ambition transition to carbon neutrality. Iceland outlined recent developments on carbon capture usage and storage and would be happy to share related information on this. The UK and Iceland identified an opportunity to link UK and Icelandic delegates in Geneva to collaborate on IUU fishing.

Norway presented on their respective priorities, including the launch of a national strategy for a green circular economy which focuses on sustainable production, sustainable waste, non-toxic circulation, and employment. Being a leader in electric vehicles, Norway recognised the importance of targeting transportation and implementing more green solutions. Another development discussed was the Forest Initiative, addressed via their close partnership with Colombia and Peru, their Memorandum of Understanding (MOU) with Indonesia on forest degradation and efforts to continue work with Brazil. Norway outlined ongoing work to fulfill their obligations regarding EU timber regulation. In addition, Norway noted ongoing work on environmental goods and services at the WTO and hoped to work with the UK on this in the future. Norway expressed their interest in secondary legislation on forest-risk commodities and illegally converted land. Last year, Liechtenstein adopted their climate and energy vision 2050, including their goal to achieve net zero by 2050, with commitment to achieve this through domestic measures. Liechtenstein intend to increase their commitments by 50% for 2050 with an emphasis on solar panels implementation and fossil free heating systems.

5. Dedicated discussion sharing information on Trade and Labour

The UK outlined their policy responsibilities and provided key information on legislation and commitments in labour policy, specifically on their approach to platform workers. This covered targeted reforms to positively impact workers in the gig economy, which include the new employment status guidance, legislation to extend the ban on exclusivity clauses beyond zero hours contracts, new rights to request a more predictable contract, and a package of Bills to increase workforce participation and protect vulnerable workers. The UK also provided an update on their International Labour Organization (ILO) Convention ratifications and implementation. This included the UK’s recent ratification of the Violence and Harassment Convention (C190) on the 7 March 2022 and recognition that the UK will consider the ratification of Occupational Safety and Health Convention (C155) in due course.

Norway concurred with the UK’s priorities in this space. Norway updated the UK on their change in government and the current reform plan; including a shift away from informal employment, the formalisation of working from home guidance, and legislative considerations and measures for platform workers. The Norwegian government is currently working on proposals to reduce ‘grey areas’ in working life and to ensure the rights of all employees. In addition to labour legislation, the Norwegian government is concerned with “social dumping” and “work-related crime”. They updated the Sub-Committee on their recently launched action plan to combat these issues. Norway noted that as members of the IMEC, the UK and Norway have common goals and priorities for the implementation of ILO conventions. Norway confirmed they have ratified all fundamental conventions and are aiming to ratify ILO C190 and C155 in upcoming months.

Iceland have also ratified all 10 fundamental conventions and noted their active participation at the ILO. Iceland committed to providing an update on C190 via correspondence with partners in the coming months. Iceland outlined that they are currently negotiating an agreement on social security which would contribute to certain rights for workers. Iceland noted that platform workers in Iceland remain relatively uncommon, but numbers are growing. Iceland outlined their national law covering employment status in Iceland. They observed that collective bargaining agreements in Iceland do not cover platform workers and that there was no case law covering platform workers at this time.

Liechtenstein updated the Sub-Committee on a recent review of their non-membership of the ILO by its national Parliament. They noted the regular reviews of their ILO membership but that in evaluating accession Liechtenstein have repeatedly concluded that membership should not be sought for the time being. However, Liechtenstein noted their comprehensive compliance with ILO standards and their incorporation of EEA labour and social law and international labour standards into their national law. Liechtenstein outlined the launch of the Liechtenstein Initiative – Finance Against Slavery and Trafficking (FAST) at the UN, to prevent the financial sector investing in businesses connected with modern slavery and human trafficking. The initiative is supported by Norway through the Norwegian Agency for Development Cooperation (NORAD).

6. Dedicated discussion sharing information on Women’s Economic Empowerment and Trade

The UK opened the discussion, expressing hope that this presents an opportunity to address the barriers faced by women in accessing the opportunities of trade and creating meaningful change. Parties respectively informed each other of their policy developments on women’s economic empowerment and gender equality, and they provided updates on the recent successes and challenges in this area. Parties agreed on the importance of a solid evidence base and using gender disaggregated data. Parties agreed to continue the discussion on trade and gender equality analysis at a working level, with the possibility of arranging a workshop for government officials.

7. Calendar of the TSD Sub-Committee meetings

Parties discussed when to convene the second TSD Sub-Committee in 2023. They agreed a preference to hold the TSD Sub-Committee alongside the Joint Committee under the Agreement, with Iceland to potentially host.

8. Closing remarks

Parties noted the value of this first dialogue as the start of a long and wide-ranging relationship on Trade and Sustainable Development. Parties look forward to meeting again at the second TSD Sub-Committee, which will be hosted by one of the EEA/EFTA Parties.