The European Free Trade Association (EFTA) is an intergovernmental organisation set up for the promotion of free trade and economic integration to the benefit of its four Member States: Iceland, external, Liechtenstein, external, Norway, external, Switzerland, external.  

Image source, Thinkstock

Norway is a member of the European Economic Area (EEA) - the single market - along with the 28 current EU members, Liechtenstein and Iceland.

In return for that access to the single market, it pays a contribution to the EU budget and has to sign up to all the rules of the club - including its common regulations and standards.

People from across the EU are free to live and work in Norway too, but the country is exempt from EU rules on agriculture, fisheries, justice and home affairs. The downside for Norway is that it has no say over how the rules of the single market are created.

SNP MSP Stuart McMillan asks if the UK was to become a member of the EEA as an independent country rather than as part of the EU what would the impact be.

Dr Ulf Sverdrup from Norwegian Institute for International Affairs says all EU members are members of the EEA.

He says it seems leaving the EU also means leaving the EEA. 

The UK will have to join EFTA to become a member of the EEA again.

Tore Myhre from the Confederation of Norwegian Enterprise says not being part of the customs union has not been terribly difficult.

Image source, Getty Images

What is a customs union and why does it matter?

A customs union, external is a form of trade agreement between two or more countries.

It means they decide not to impose tariffs (taxes on imports) on each other's goods and agree to impose common external tariffs on goods from countries outside their customs union.

Setting common external tariffs is what distinguishes a customs union from a free trade area, external.

A free trade area allows member states to trade feely with each other while still being able to set their own tariffs on goods from the rest of the world.

The purpose of a customs union, like that of other trade agreements, is to make it easier for member states to trade.

Customs unions reduce administrative and financial trade barriers (such as customs checks and charges) and enhance economic cooperation.

However, they also limit the freedom of their individual members to strike their own trade deals.

Image source, bbc

SNP MSP Richard Lochhead says Norway often tops league tables for the best standard of living in the world and asks how this is linked to membership of the EEA.

Dr Ulf Sverdrup from Norwegian Institute for International Affairs says it is really difficult to discern the impact of different agreements.

Dr Sverdrup says the Norwegian economy has been performing very well. 

Brian Taylor
BBC Scotland Political Editor

At Holyrood, MSPs were again talking Brexit. Quite rightly so, given the crucial importance of the issue. But in tonight's debate there was precious little entente - and the exchanges were decidedly less than cordiale.

Indeed at one point the Economy Secretary Keith Brown accused one of his Conservative opponents of "self-loathing".

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To be fair, Mr Brown said it with perhaps a faint ghost of a smile upon his face.

But his point was plain. He was challenging the Tories - and other opposition parties - to back the Scottish government's insistence that Scotland's place in the EU single market should be "fully protected".

And the self-loathing? Mr Brown detected a tendency among his opponents to play down Scotland's potential to build and sustain international links.

Image source, bbc

Committee convener and SNP MSP Joan McAlpine as what difference being a member of the single market has made.

Tore Myhre from the Confederation of Norwegian Enterprise says the single market and the EEA agreement is very different from the old agreement of free trade.

He says membership of the EEA covers all four EU freedoms.

Ms McAlpine asks the EEA is a membership without voting rights and Norway cannot take part in the decision making.

Tore Myhre from the Confederation of Norwegian Enterprise says the agreement with the EU works so well which has been crucial for business.

Mr Myhre says the EEA agreement has also been crucial.

He says Norway is worried Brexit may affect the discussions on the EEA.

Mr Myhre says the current members of the EEA do not want to see any weakening of the agreement.

Image source, bbc

Tore Myhre from the Confederation of Norwegian Enterprise tries to make an opening statement, but there appears to be some issues with the video link to Norway.

They have been sorted and now Mr Myhre says his country has had two referendums and the EEA agreement became a national compromise.

Dr Ulf Sverdrup from Norwegian Institute for International Affairs says Norway's relationship with the EU has worked well.

Dr Sverdrup says from the EU's side the agreements with the EEA are the best.

He says the EU can be a fairly tough negotiator and one cannot expect the EU to invent solutions.

"You cannot expect to have it all."

Dr Ulf Sverdrup from the Norwegian Institute for International Affairs says he is talking in a private capacity no for the Norwegian government.

Dr Sverdrup says the good news is its possible to prosper outwith the EU.

He says Norway co-operates with the EU and integrates with the EU, but not as a member.

Dr Sverdrup says Norway is deeply integrated with the EU.

He says EEA membership provides membership of the single market and Norway subscribes to EU sanctions as well.

Norway is signed up to three quarters of the EU rules which is more than the UK at the moment.

The first witnesses are introduced: 

• Dr Ulf Sverdrup, Director, Norwegian Institute for International Affairs
• Tore Myhre, Director, and Anne Louise Aartun Bye, Assistant Director, Confederation of Norwegian Enterprise

Image source, bbc

Nicola Sturgeon has confirmed that the Scottish government is considering a Norway-style model for keeping Scotland in the EU single market.

The first minister told MSPs that the European Free Trade Association (EFTA) and European Economic Area (EEA) models were being looked at.

The Scottish government is examining possible ways of maintaining Scotland's links with the EU.

BBC Scotland revealed on Tuesday that the EEA model had been floated.

The EEA includes the existing EU states in addition to EFTA members Iceland, Liechtenstein and Norway.

Membership offers access to the single market but members must make a financial contribution and adopt most EU legislation as well as the free movement of people.

Ms Sturgeon has said she will publish proposals in the coming weeks aimed at keeping Scotland in the single market even if the rest of the UK leaves.

• Scotland could seek 'Norway model' on EU
• Could Scotland follow the Norwegian model?
• Norway: The best of both worlds?

First up this morning, we bring you live coverage of the Culture, Tourism, Europe and External Relations Committee.

The committee will take evidence on the implications of the EU referendum for Scotland on future trade relationships.

It will hear from:

• Dr Ulf Sverdrup, Director, Norwegian Institute for International Affairs
• Tore Myhre, Director, and Anne Louise Aartun Bye, Assistant Director, Confederation of Norwegian Enterprise

Then from:

• Dag Wernø Holter, Deputy Secretary General, and Marius Vahl, Head of EEA policy coordination, European Free Trade Association

Good morning and welcome to our live coverage of the Scottish Parliament for Thursday the 17 November 2016. 

This morning we'll bring you full coverage of the Culture, Tourism, Europe and External Relations Committee as it hears from witnesses on Norway's membership of the EEA.

We then move to chamber business as fuel poverty, farmers and the Scottish Living Wage are raised during general questions.

This will be followed by full and extensive coverage of this week's first minister's questions.

This afternoon's member's debate focuses on celebrating flexible working practices and is led by SNP MSP Gillian Martin.

Following a break the Education Secretary John Swinney will update MSPs onn issues relating to the Scottish Child Abuse Inquiry.

The Scottish government will lead a debate on Scotland’s Innovation Centre Programme and how it is driving innovation in the country.