Existing frameworks for how trade is facilitated between countries in this sector

The arrangements described in this section are examples of existing arrangements between countries. They should not be taken to represent the options being considered by the Government for the future economic relationship between the UK and the EU. The Government has been clear that it is seeking pragmatic and innovative solutions to issues related to the future deep and special partnership that we want with the European Union.

It should be noted that there are various global frameworks for trading oil and gas products (these are covered in other reports). CETA, for example, sets tariffs on most oil and gas products to zero (but a 0.7 per cent tariff could be applied for natural gas in liquid and gaseous form (bound rate), with no quotas, and temporary entry for service providers.29 The EU import tariffs are generally low for imported energy products.

Non-EU countries looking to export products into the EU will need to comply with EU Ecodesign and energy labelling standard requirements. Such products may be subject to customs controls to ensure compliance. In some cases, (e.g. with the voluntary US ‘energy star’ labelling scheme for office equipment), the EU has existing agreements in place with non-EU countries to ensure their mutual recognition with EU standards.

There are also some small tariffs in place for environmental goods. The EU is party to the WTO’s discussions to agree a new Plurilateral Environmental Goods Agreement which aims to remove tariffs on a wide-variety of these goods.

There are some references in EU Energy legislation to trading with third countries; for example in the Capacity Allocation Mechanisms Code (Commission Regulation 2017/459) and in the IGA Decision requiring Member States to notify the Commission of planned gas agreements with third countries. The EU has a close relationship with EEA and EFTA state members, particularly where EU legislation is EEA and EFTA relevant. In the gas sector Norway is a key partner for the EU as it provides over 20 per cent of Europe’s gas needs.