Norway is part of the EU’s single market (it is a member of the European Economic Area), but it is not part of the customs union. So it sets its own tariffs on goods imported from outside the single market. But Norwegian goods (with exceptions for farm produce and fish) are imported tariff-free into the EU. This creates problems for Norway because Norwegian exporters have to show that their goods qualify as having originated in Norway (through so called rules of origin) and are therefore eligible for tariff-free entry to EU countries.
For analysis on the Norway model, try The awkward truth is that a Norway Brexit almost certainly wouldn’t work by Anand Menon and this piece by Charlene Rohr, David Howarth, and Jonathan Grant, on its popularity with voters.View all facts