That includes imported goods such as aluminium products and some fuel and oil products from the two countries.
The agreement covers trade in goods and will only be used in a no-deal scenario, maintaining the same level of tariffs on goods traded between the three countries.
According to the Department for International Trade, British businesses could avoid up to £15 million a year in tariff charges on exports that would otherwise apply if an agreement wasn’t in place.
Andrew Mitchell, HM Trade Commissioner for Europe said: “Today’s agreement secures continued preferences for goods trade with Iceland and Norway for British businesses as we prepare to leave the EU. These are key trading partners with whom we have a longstanding and historic trading relationship.
“Our trade with Iceland and Norway was worth around £30 billion last year, with just over £24 billion of this in goods. This is good news for British businesses and we have a golden opportunity to further liberalise trade with these countries in the years ahead.”