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TRADE

French trade gap widens

An increase in energy imports due to a cold snap in February sent France's trade deficit jumping by nearly 15 percent in February to hit €6.4 billion ($8.4 billion), customs data showed on Friday.

“In February, the increase in imports is in part due to energy purchases connected to the cold snap, which caused the deficit to widen to €6.398 billions from €5.593 billion in January,” said the French customs service in a statement.

In addition to the cold weather, three oil refineries were shut for maintenance, also causing a spurt in imports, the customs service noted.

Imports rose to €43.6 billion in February and exports to €37.2 billion.

Exports were helped by good sales of manufactured items, as well as agricultural commodities and military equipment, noted the customs service.

Major deliveries of satellites and a rebound in vehicle exports also helped the monthly figures.

The 12-month trade deficit came in at €70.051 billion.

France posted a record trade deficit in 2011 of €70.104 billion.

France has a big structural trade deficit which is a central concern to policymakers, and contrasts with a big surplus by the leading eurozone economy, Germany.

A trade surplus is important because it contributes to growth of gross domestic product, while a trade deficit tends to be a drag on the economy.

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TRADE

Norway and UK strike post-Brexit trade deal

Norway and the United Kingdom have struck an agreement on a free trade deal, the Norwegian government announced on Friday.

Norway and UK strike post-Brexit trade deal
Erna Solberg outside 10 Downing Street in 2019. (Photo by LUDOVIC MARIN / POOL / AFP)

Negotiations over the agreement have been ongoing since last summer, and the Norwegian government said that the deal is the largest free trade agreement Norway has entered into, outside of the EEA agreement. 

“The agreement entails a continuation of all previous tariff preferences for seafood and improved market access for white fish, shrimp, and several other products,” the Ministry of Trade and Industry said in a statement.  

One of the sticking points of the negotiations was Norway wanting more access to sell seafood in the UK, while the UK wanted more access to sell agricultural products like cheese.

The latter was a problem due to Norway having import protection against agricultural goods. 

“This agreement secures Norwegian jobs and value creation and marks an important step forward in our relationship with the UK after Brexit. This is a long-term agreement, which at the same time helps to accelerate the Norwegian economy,” Prime Minister Erna Solberg said in a statement.  

 The United Kingdom is Norway’s second most important single market, after the EU. In 2020 Norwegian companies exported goods worth 135 billion kroner to the UK and imported around 42 billion kroner of goods from the UK. 

Norway has given Britain 26 quotas on agricultural products, but not for mutton and beef. The agreement does not increase the UK’s cheese quotas, state broadcaster NRK have reported. 

The agreement will still need to be signed by both the Norwegian and UK parliament. 

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