. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/NOR/18 
22 March 2004 
 
 (04-1256) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
NORWAY'S Responses to Questions Posed by the United States1  
Regarding the New and Full Notification of Norway2  
 
  The following communication, dated 16 March 2004, is being circulated at the request of the Delegation of Norway.  
 
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1. Section 3.4 National Programmes for Regional Development.  
Q1. Please explain at what stages of development aid is provided under this programme, e.g. 
from product inception through marketing?   
 
Reply
 
  This particular programme was terminated at the end of 2002. Some of the measures 
supported by the programme were terminated when the programme lapsed, while other measures that 
received funds from the scheme have been incorpor ated into other programmes. When the programme 
was in operation it was not targeted at providing di rect support to companies or product inception or 
marketing. The aim of the programme was to prom ote networking between small- and medium sized 
enterprises (SMEs) and local and regional research in stitutes. Grants from the scheme were given to 
intermediaries, such as research institutes and pub lic development companies. Normally the projects 
were carried out in R&D institutions in co-operati on with SMEs. The aim was to transfer competence, 
knowledge and know-how to SMEs located in assisted areas.   
Q2. Please explain more fully the criteria fo r a programme to be considered a "pluriannual 
programme of broader national interest"?   
 
Reply
 
  A pluriannual programme is a programme impl emented over several years. A programme of 
broader national interest is a programme, which addr esses issues of not only a regional character, but 
also broader issues that concern several administrati ve regions or a larger geographical area that are 
best solved by coordinated or broa der and thus national initiative.  
 
                                                      
1 G/SCM/Q2/NOR/17. 
2 G/SCM/N/95/NOR. G/SCM/Q2/NOR/18 
Page 2  
 
 2. Section 8: Assistance to the fisheries sector  
Q1. Are overcapacity or overfishing issues take n into account when determining eligibility 
and the amount of support given to the fish ing industry under these programs? Reference is 
made to Section 8.1, 8.3, 8.5 and 8.6 of G/SCM/N/95/NOR.  
 Reply
 
  All major fisheries in Norway are subject to vessel group and individual quota pr vessel quota allocation under a national total allowable quota syst em established on the basis of the best scientific 
and biological advice available. These quotas are enfo rced at vessel level, vessel group level and at 
the national level. When the applicable quota for a pa rticular fish stock has been caught, the fishery is 
halted immediately. In addition, Norway has applied a number of different types of capacity reduction/scrapping measures for a number of years. The most recent programmes involve the use of market-incentives, by allowing for a combina tion of quotas when capacity is withdrawn from a 
particular vessel-group. In conclusion, overcapac ity and overfishing issues are, as a general policy 
matter, always taken into account when the deta iled parameters of specific support programmes are 
decided.   The programmes under 8.1 and 8.6 have no impact on productio n levels, as the production 
levels (fishing) are determined by the applicable total allowable catch levels . In other words, these 
programmes are not considered to contribute to overcapacity or overfishing. The budget allocated to 
the Transport Support Scheme described in Secti on 8.1 was Nkr 26.4 million. This amount has been 
further reduced to Nkr 25 million in 2004. Funds to Support to Long-line Baiting Facilities described 
in Section 8.6 have not been granted in 2004.    As regards the other support programmes referre d to, the very limited extent and nature of 
these programmes do not in our view contribute to overcapacity or overfishing. The funds allocated 
through the Scheme described in section 8.5 (Gra nt for Purchase of Vessels to the Counties of 
Finmark and Nord- Troms) are limited. Between  1997 and 2000 only Nkr 4.4 million has been 
granted through this scheme. There has been no  payment from the scheme since 2000. Funds 
allocated through the scheme described in Section 8. 3 (Interest Rate Subsidy Scheme) are also very 
limited and estimated to Nkr 160.000 in 2004. 
 
 
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