00-2411 MOREPRESS RELEASE
EMBARGO: NOT FOR PUBLICATION UNTIL
1300 GMT 23 JUNE 2000
PRESS/TPRB/135
14 June 2000
 NORWAY'S LIBERAL TRADE REGIME IS MARRED BY A FEW BUT SIGNIFICANT
TRADE DISTORTIONS - PARTICULARLY IN AGRICULTURE
Norway has continued to remove barriers to trade and investment through its participation in
the WTO and the European Economic Area (EEA), says a new WTO report on the trade policies of
Norway.  This, and a skilful exploitation of natural resources, has helped Norway attain high living
standards and full employment.  The report adds, however, that Norway's liberal regime is marred by
inordinate protection to agriculture and that a few remaining trade and investment distortions,
including those that may arise from subsidies for regional and industrial policy reasons and fromcertain investment barriers to non-EEA investors,  need to be addressed to help assure the
sustainability of living standards.
The WTO Secretariat report, along with a statement by the Norwegian government, will serve
as a basis for the trade policy review of Norway which will take place in the WTO Trade PolicyReview Body on 21 and 23 June 2000.
The report notes that most of Norway's trade is conducted duty free under the EEA and other
preferential arrangements, with some 73% of industrial tariff lines also subject to zero MFN rates.  In
general, tariffs on industrial goods are low: the average MFN tariff on industrial products declinedfrom 5.6% in 1995 to 2.3% in 2000.  In contrast, the average MFN tariff on agricultural products is
38.7%.  Various agricultural products are subject to tariff quotas.  Overall, Norway's average MFN
tariff in 2000 is 8.1%, less than half the applied rate in 1995.
The report says that Norway runs a wide-ranging Generalized System of Preferences (GSP);
it also grants almost all imports from least-developed countries duty free entry.  Under Norway's GSP,
imports of manufactures from ordinary beneficiary developing countries generally enjoy duty-free
access, with textiles, clothing and footwear among the notable exceptions.  Preferential treatment is
also accorded to selected agricultural products.  The average tariff for all imports from GSP ordinary
beneficiaries in 2000 is 5.3%.PRESS/TPRB/135
Page 2/3
MOREThe report notes that Norway pursues regional interests actively, particularly through its
participation in the EEA and the European Free Trade Association (EFTA).  As an EFTA member,Norway participated in EFTA's free-trade agreements with central European and Mediterranean
countries.  The report states that although such preferential agreements provide for free trade in goods
except for some unprocessed agricultural products, the large and expanding preferential network
raises concerns about possible distortions.  The report suggests that such concerns would be diffused
by extending these preferences on a non-discriminatory basis and securing them multilaterally.  Thiswould also prevent over-reliance on the EEA market.
The report says that investment in most areas is largely open to foreigners and national
treatment is generally granted to foreign investors ex cept in some key sensitive areas such as fisheries
and airline operation.
In agriculture, the report says, substantial border protection is combined with price support
measures.  The latter are being gradually replaced with direct income payments.  The report notes that
overall assistance to domestic producers remains high, at a level almost equal to the value added
generated by the sector.  Assistance is largely concentrated in a small number of products, namely
dairy products, beef and veal, and pork meat.
Norway is the largest exporter of crude oil outside the Organization of the Petroleum
Exporting Countries (OPEC), ranking second in th e world after Saudi Arabia.  Petroleum exports
contribute some 30% of Norway's total export earnings.  The report notes that petroleum activities are
generally open to foreign companies, although state ownership in the sector remains large.
Norway's WTO services commitments grant unlimited market access and national treatment
in a large number of services. Services account for some 57% of GDP and provide jobs to almost
three quarters of the employed labour force. Shipping is Norway's second largest source of export
revenue. The report notes that Norway has implemented a number of changes in recent years, mainly
in the financial services, telecommunications and postal services, and maritime transport. Forexample, state participation in the banking system, although still significant, has been reduced since
1996. In the telecommunications sector, the market was fully liberalized in 1998 and the monopoly
rights of the state-owned company, Telenor, abolished.
Notes to Editors
Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member
countries’ trade and related policies are examined and evaluated at regular intervals. Significant
developments which may have an impact on the global trading system are also monitored. For each
review, two documents are prepared: a policy stat ement by the government of the member under
review, and a detailed report written independently by the WTO Secretariat. These two documents arethen discussed by the WTO’s full membership in the Trade Policy Review Body (TPRB). These
documents and the proceedings of the TPRB’s meet ings are published shortly afterwards. Since 1995,
when the WTO came into force, services and trade- related aspects of intellectual property rights have
also been covered.
For this review, the WTO’s Secretariat report, together with the policy statement prepared by
Norway, will be discussed by the Trade Policy Review Body on 21 and 23 June 2000. The Secretariat
report covers the development of all aspects of Norway's trade policies, including domestic laws and
regulations, the institutional framework, trade policies by measure and by sector.PRESS/TPRB/135
Page 4
MOREAttached to this press release is a summary of the observations in the Secretariat report and
parts of the government's policy statement. The Secretariat report and the government’s policystatement are available for the press in the newsroom of the WTO internet site (www.wto.org). These
two documents and the minutes of the TPRB’s disc ussion and the Chairman’s summing up, will be
published in hardback in due course and will be available from the Secretariat, Centre William
Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 and
1999), Australia (1989, 1994 and 1998), Austria (19 92), Bangladesh (1992 and 2000), Benin (1997),
Bolivia (1993 and 1999), Botswana (1998), Brazil (1992 and 1996), Burkina Faso (1998), Cameroon
(1995), Canada (1990, 1992, 1994, 1996 and 1998), Chile (1991 and 1997), Colombia (1990 and
1996), Costa Rica (1995), Côte d’ Ivoire (1995), Cyprus (1997), the Czech Republic (1996), the
Dominican Republic (1996), Egypt (1992 and 1999), El Salvador (1996), the European Communities
(1991, 1993, 1995 and 1997), Fiji (1997), Finland (1992), Ghana (1992), Guinea (1999), Hong Kong(1990, 1994 and 1998), Hungary (1991 and 1998), Iceland (1994 and 2000), India (1993 and 1998),
Indonesia (1991, 1994 and 1998), Israel (1994 a nd 1999), Jamaica (1998), Japan (1990, 1992, 1995
and 1998), Kenya (1993 and 2000), Korea, Rep. of (1992 and 1996), Lesotho (1998), Macau (1994),
Malaysia (1993 and 1997), Mali (1998), Mauritius (1995), Mexico (1993 and 1997), Morocco (1989
and 1996), New Zealand (1990 and 1996), Namibia (1998), Nicaragua (1999), Nigeria (1991 and
1998), Norway (1991 and 1996), Pakistan (1995), Pa pua New Guinea (1999), Paraguay (1997), Peru
(1994 and 2000), the Philippines (1993), Poland (1993), Romania (1992 and 1999), Senegal (1994),
Singapore (1992, 1996 and 2000), Slovak Republic ( 1995), the Solomon Islands (1998), South Africa
(1993 and 1998), Sri Lanka(1995), Swaziland (1998 ), Sweden (1990 and 1994), Switzerland (1991
and 1996), Tanzania (2000), Thailand (1991, 1995 and 1999), Togo (1999), Trinidad and Tobago(1998), Tunisia (1994), Turkey (1994 and 1998), the United States (1989, 1992, 1994, 1996 and
1999), Uganda (1995), Uruguay ( 1992 and 1998), Venezuela (1996), Zambia (1996) and Zimbabwe
(1994).PRESS/TPRB/135
Page 5
MORETRADE POLICY REVIEW BODY
NORWAY
Report by the Secretariat - Summary Observations
Overview
Norway has attained high living standards and full employment through a skilful exploitation
of its bountiful natural resources and the adoption of sound economic policies;  these include a liberal
trade regime marred, however, by inordinate protecti on to agriculture.  Since its last Trade Policy
Review in 1996, Norway has continued to remove barriers to trade and investment in the wake of its
participation in the WTO and the European Economic Area (EEA).  For most industrial goods tariffs
are now zero or low, and non-tariff import restric tions appear minor.  Norway also runs a wide-
ranging GSP scheme, granting almost all imports from least-developed countries duty free entry.
Norway's WTO GATS schedule grants unlimited market access and national treatment in a large
number of services.
Against this positive background, Norway faces the long-term challenge of an aging
population and an economy closely linked to the production of exhaustible hydrocarbon resources.
Sustaining current living standards will thus be linked to reducing remaining distortions and hastening
the relatively low pace of productivity growth, particularly through further liberalization efforts.
Above all, this would call for rationalizing assistance to the agricultural sector.  Other distortions also
need addressing, including those that may arise from  certain investment barriers to non-EEA investors
and from subsidies for regional and industrial-policy reasons.  Undertaking such liberalization on an
MFN basis and securing it in the WTO would prev ent over-reliance on the EEA market, and trade or
investment diversion.
Economic and Institutional Environment
The period since Norway's last Review has been characterized by declining unemployment,
low inflation, and strong fiscal and external po sitions.  Economic growth, however, fell from 4.9% in
1996 to less than 1% in 1999;  growth in the mainla nd economy (i.e. excluding oil and gas activities
and ocean transport) was expected to remain subdued in 2000 and 2001.  Although returning to solid,non-inflationary growth represents a short term ch allenge, the economy as a whole should benefit
from the current developments in the oil sector, namely from higher oil prices.  Currently, Norway is
the largest exporter of crude oil outside OPEC, ranking second in the world after Saudi Arabia;
petroleum exports contribute some 30% of Norway's total export earnings.
Norway's solid economic performance reflects prudent management of petroleum and gas
revenues, sound macroeconomic policies, as well as structural reforms and trade and investmentliberalization in various sectors.  Fiscal policy has been assigned the task of stabilizing growth in the
demand for goods and services and is actively used to counter external shocks.  Monetary policy seeks
the stability over time of the Norwegian krone vis-à-vis the Euro, while recognizing that a low and
stable inflation rate is a precondition for this stability.  A policy of wage settlement moderation has
contributed to curbing inflation, while seeking an upw ard trend in real wages;  however, a tight labour
market, particularly since 1998, has put pressure on incomes policy management, leading to increases
in real wages beyond productivity gains.
A key element of economic policy is the strategy of investing oil revenues abroad.  Since
1996, the Government has transferred oil-related fiscal surpluses (averaging 5% of GDP annually) tothe State Petroleum Fund (SPF), which invests solely in  foreign securities;  mainly as a result of this
policy, Norway's net external assets have increased from 3.7% of GDP in 1996 to an estimated 17.2%
of GDP in 2000.  The SPF plays an important role in moderating real appreciation of the krone, thusPRESS/TPRB/135
Page 6
MOREpreventing the emergence of a severe "Dutch disease" situation, whereby the increase in income
stemming from oil exports could have caused a crowding out of the non-resource tradeable sector.The SPF also helps smooth out fluctuations in oil revenues.
State participation in production activities remains large, notwithstanding privatization efforts
undertaken in recent years.  Government procurement is in consequence substantial, accounting for
some 7-8% of GDP;  of this some 12% is cove red by the WTO Government Procurement Agreement
(GPA).  Government procurement rules are designed  to conform to EEA standards and do not grant
preferences to domestic suppliers.  Although suppli ers from countries that are not members of the
GPA may participate in tenders, they may not have recourse to courts to challenge adjudication
decisions.
Norwegian competition policy legislation functions in parallel with EEA regulations.  Some
technical changes to Norway's competition law were introduced in the spring of 2000;  other changes
to extend the Competition Authority's competencies are under consideration.
Investment in most areas is largely open to foreigners, and national treatment is generally
granted to foreign investors except in some key sensitive areas such as fisheries and airline operations,
where foreign ownership is restricted.  Specific c onditions apply for investment in banks, insurance
companies, securities firms, for registration and tr ading area coverage in maritime transport, and for
the granting of exploration and production licenses to individuals in the petroleum sector.  Norway
has some horizontal restrictions to investment and foreign ownership, inter alia, regarding residency
requirements.
Trade Policies by Measure
Since its last Review, Norway has continued to further its traditionally liberal trade policy,
both at the multilateral level, building on the implem entation of the Uruguay Round results, and in the
context of preferential arrangements.  The average MFN tariff in 2000 is 8.1%, less than half theapplied rate in 1995.  Most of Norway's trade is conducted duty free under the EEA and other
preferential arrangements, with some 73% of industrial tariff lines also subject to zero MFN rates.  In
general, tariffs on industrial goods are low:  the average MFN tariff on industrial products declined
from 5.6% in 1995 to 2.3% in 2000.  In contrast, the average MFN tariff on agricultural products is
38.7%.  Various agricultural products, mainly those for which Norway made minimum accesscommitments under the WTO Agreement on Agriculture, are subject to tariff quotas.  Norway
implemented its Uruguay Round tariff commitments in agriculture in 1995, also enhancing market
access for products subject to tariff quotas.
Under Norway's Generalized System of Pref erences (GSP), imports of manufactures from
ordinary beneficiary developing countries generally enjoy duty-free access, with textiles, clothing and
footwear among the notable exceptions;  preferential treatment is also accorded to selectedagricultural products.  Imports from least-devel oped countries, including most agricultural goods,
receive duty free treatment.  The average tariff for all imports from GSP ordinary beneficiaries was
5.3% in 2000;  the average tariff rate faced by imports from least-developed countries was 1.2%.
A number of domestic indirect taxes, chiefly  a value-added tax and various excise duties, are
used.  Although these taxes make no distinction between foreign and domestic goods, in some cases
they fall mainly on imports (e.g., motor vehicles, alcoholic beverages, tobacco).
Quantitative restrictions have virtually been eliminated, except for import quotas maintained
under the Agreement on Textiles and Clothing, which have been reduced since 1996 and now onlyapply to part of an HS tariff heading (HS 56, relating to fishing nets).  A number of products are
subject to licensing requirements to grant preferential treatment or for surveillance purposes.PRESS/TPRB/135
Page 7
MORELicensing requirements are generally automatic but a few goods are subject to non-automatic
licencing, mainly whale meat and related products.
Norway has not had recourse to the application of anti-dumping or countervailing duties, or
safeguard measures since its previous Review.  Standards and technical regulations, as well as
sanitary and phytosanitary measures have been largely harmonized with those of the European Union
(EU), although in a few cases Norwegian regulations remain stricter than those of the EU.Importation of genetically modified substances requires approval and is subject to an assessment of
human health and environmental risk.
Norway continues to grant substantial support for regional development, promotion of
research and development, economic restructuring and certain sector specific programmes;  however,
a number of programmes in existence at the time of Norway's last Review have been discontinued,
and overall support has been somewhat reduced.  Moreover, with the main exception of agriculture,and to a lesser extent shipbuilding, support programmes are seldom sector specific.
Intellectual property legislation reflects Norway's obligations in the WTO and other
multilateral fora.  Only minor technical amendments to domestic legislation in this field have taken
place since 1996.
Sectoral Policies
Since Norway's last Review, a number of sectoral policy changes have been implemented,
mainly in agriculture and services, largely to comply with engagements under the WTO and EEAAgreements.  In agriculture, substantial border protection is combined with price support measures;
the latter are being gradually replaced with direct income payments.  Prices are fixed for a small
number of products, mainly grains, but target prices well above world prices are more widely used.
Overall, assistance to domestic producers remains high, at a level almost equal to the value added
generated by the sector.  Assistance is largely concentrated in a small number of products, namelydairy products, beef and veal, and pork meat, which together account for some three quarters of the
support granted to the agricultural sector.
Petroleum activities are largely open to foreign companies, although state ownership in the
sector remains significant.  Policies towards state participation in the sector are being reconsidered ,including the partial privatization of the national oil company.  Norway is also in the process of
aligning its legislation in the petroleum and natural gas sector with EU regulations.  The 1996
Petroleum Act already reflects the requirements of Directive 94/22/EC on granting and using licences.
Norway has a relatively diversified manufacturing sector, with many activities linked to the
petroleum sector, shipbuilding and metal processing .  Protection to manufacturing is generally low.
Support programmes benefit mainly small and medium enterprises and are not industry-specific, withthe exception of shipbuilding where aid must comply with EU rules.
In the services sector, a number of changes have been implemented in recent years, mainly in
financial services, telecommunications and postal services, and maritime transport.  Services account
for some 57% of GDP and provides jobs to almost three quarters of the employed labour force.Norway's GATS Schedule grants unlimited market access and national treatment for cross border
supply, consumption abroad and commercial presence of a number of services, including
telecommunications construction and related engineering services, distribution services and transport
services.
Financial services have been gradually deregulated and opened since Norway's last Review, a
process reflected in an increased number of branches of foreign banks in Norway.  Market access
through commercial presence is subject to certain establishment conditions, some relaxed since 1996.PRESS/TPRB/135
Page 8
MOREThe conditions include  a general 10% ownership limit for individual investors in commercial and
savings banks, except for holdings and for foreign banks establishing or acquiring commercial banksubsidiaries;  functional nationality restrictions also apply.  State participation in the banking system
has been reduced since 1996 but remains significant.  The Government is considering options for the
future of the banking system and its involvement in it.
In the telecommunications sector,  in 1998 the market was fully liberalized and the monopoly
rights of the state-owned company, Telenor, abolished.  Since then, competition has increased, with
33 providers of fixed telephony services now registered, and tariffs widely deregulated.  A merger
between the national company Telenor and Telia of Sw eden was called off in late 1999;  alternative
strategies for Telenor are under consideration, including its partial privatization.  New regulations for
the provision of postal services introduced in late 1996 and in 1997 have resulted in a wide
liberalization and deregulation of services and prices.
Maritime transport services play an important economic role, shipping representing Norway's
second largest source of export revenue.  Norway does not participate in liner conferences, and price
collaboration is, in general terms, banned.  The Norwegian International Ship Register is open to all
ships but trading-area restrictions apply;  only EEA nationals or firms may be registered in the
Norwegian Ordinary Register.
Trade Policies and Foreign Trading Partners
Norway is a founding member of the WTO, a nd participates actively in its work. Norway
grants MFN treatment to all trading partners  and fully implemented its Uruguay Round tariff
commitments in agriculture in 1995, foregoing th e phase-in period.  To comply with WTO
commitments, Norway has both passed new legislation and amended existing legislation, notably in
services, as international agreements must be inco rporated into domestic legislation before they may
be invoked in domestic courts.  Norway participated in the WTO Negotiations on Financial Services
and in the Negotiations on Basic Telecommunications.  Both the Fourth Protocol on BasicTelecommunications and the Second Protocol on Financial Services have been ratified by Parliament;
the Fifth Protocol on Financial Services did not require ratification.  Norway has not been involved as
plaintiff or defendant in any dispute in the WTO since its inception.  In the context of the preparations
for the 1999 Ministerial Conference in Seattle, Norway submitted proposals in areas such as
agriculture, services, competition policy, and fisheries subsidies.
Norway pursues regional interests actively, particularly through its participation in the EEA
and EFTA.  As required by the EEA Agreement, Norway has adapted to a large extent its domestic
legislation to that of the European Union, grantin g largely unrestricted movement of goods, workers,
services, and capital to other members.  As an EFTA member, Norway participates in EFTA's free-
trade agreements with central European and Mediterranean countries; in 1999, agreements with
Morocco and an interim agreement for the benefit of the Palestinian Authority entered into force.
Although all such preferential agreements provid e for free trade in goods except some unprocessed
agricultural products, the large and expanding preferential network compounds trade relations and
magnifies the differentiation among trading partners.  On a MFN basis, Norway already grants a large
share of its imports duty-free treatment and generally imposes no restrictions to investment;
nevertheless, trade and investment preferences raise concerns about possible distortions:  suchconcerns would be diffused by extending these preferences on a non-discriminatory basis and
securing them multilaterally.PRESS/TPRB/135
Page 9
MORETRADE POLICY REVIEW BODY
NORWAY
Report by the Government - Part III
I. TRADE POLICY OBJECTIVES AND DEVELOPMENT
A. THE WORLD TRADE ORGANIZATION
1. The Uruguay Round of negotiations was of major importance to Norway.  The stronger,
broader and clearer legal framework resulting from the negotiations has laid the foundation for more
equal terms of competition between large and small trading nations, thus reducing the risk of
unilateral trade measures.  The World Trade Organization is there to ensure that no Member country
pursues national policies to the detriment of other members' trade interests, and that global trade is
conducted according to an open, multilateral trading system based on common rules.
2. Since 1947, Norway has played an active role in the development of the GATT and the WTO
in order to ensure the stability, security, transparency, and predictability necessary to an open,
outward-oriented economy such as ours.  We see the preservation and development of a strong rules-
based system as the best guarantee against unilateralism and protectionism.
3. Norway favours further trade policy negotiations aimed both at strengthening the multilateral
trading system and the gradual opening of markets.  Norway is therefore a strong advocate for the
launch of a broad and comprehensive round of multilateral trade negotiations.  Norway participated
actively in the preparations for the Seattle Ministerial Conference and tabled proposals for mandates
in most areas under consideration for negotiations.  Norway sees the unsuccessful talks on a mandate
for the negotiations at Seattle as a temporary setback.
4. Norway actively participates in the mandated negotiations on the built-in agenda.  However,
for these negotiations to lead to substantial improv ements in the trading envi ronment, they should be
seen as contributions to a broader, more comprehensive round of multilateral trade negotiations.  It is
in Norway’s trade policy, economic and political interest that such a broad round of negotiations
includes, in addition to the built-in agenda, inter alia  special and differential treatment for developing
countries;  market access for industrial products including fish and fish products;  transparency in
government procurement;  trade facilitation; trad e and investment;  trade and competition and trade
and environment.  The round should also cover issu es resulting from a review of the implementation
of the Uruguay Round agreements in such areas as anti-dumping, subsidies and countervailing
measures.
5. Norwegian trade policy towards developing countries plays an increasingly important role in
the formulation of Norwegian foreign and development cooperation policy.  Norway will continue to
promote improvements to the multilateral trading system and encourage greater integration of the
developing countries, especially the Least Developed Countries, by means of improved market access,
transitional arrangements, technical and financial support and other measures.  To this end, Norway
has contributed approximately US$3.3 million to the WTO’s programmes for technical assistance.
Furthermore, Norway continues to advocate that th e WTO programmes in this field be financed over
the organization’s regular budget, rather than mainly by voluntary contributions to a global trust fund.
Norway has also signed the agreement to establish an independent legal advisory centre on WTO law.
6. Norway continues to target and strengthen its bilateral efforts to promote trade with
developing countries, for example by implementing improvements to the Generalised System of
Preferences (GSP).  Of particular importance is improving in a real and effective way market accessconditions for products originating in the Least Developed Countries.PRESS/TPRB/135
Page 10
MORE7. The process of ensuring that trade and environmental policies are mutually supportive is one
to which Norway attaches particular importance.  We therefore find it important that environmentalaspects are taken into account in future trade negotiations.  In this regard sustainability reviews are a
valuable means of helping to achiev the objective of integrating environment and development
concerns into trade policies.  Norway has, for its part, initiated environmental reviews and has
encouraged others to do the same.
8. Norway also participates actively in the ongoing trade and environment discussions in the
WTO.  Analysis of the interaction between trade and environment policies is a priority.  Identifying
win-win, or even wi n-win-win situations (trade/environment/development), is of special importance,
for example in analysis of the relationship between subsidies, trade and the environment.  Norway
also finds it important to continue studying trade-related aspects of eco-labelling and MEAs.
9. In the area of services, a fundamental step towards trade liberalization was taken in the
Uruguay Round with the GATS Agreement, which ou tlines the framework for trade in services.  In
the present negotiations, Norway is looking for real trade liberalisation over a broad range of sectors,including maritime transport and other maritime services, telecommunications, environmental
services and offshore-related services, as well as improvements of the GATS agreement itself.
10. For Norway, as one of the world’s major suppliers of maritime transport services, it is of
particular concern that binding market access and national treatment commitments have not been
entered by major trading nations for that sector.  Ships account for about 90% of international goodstransport.  Liberalization in this sector would therefore benefit all countries.  It is a paradox that
negotiations on the fairly liberalised maritime transport services sector, which is crucial to the flow of
goods, were not more successful in 1996.
11. The market access negotiations of the Uruguay Round resulted in increased export
opportunities for a number of industrial products of interest to Norway.  However, the results had alimited effect on trade in fish and fishery products.  As of today more than 150 countries import
Norwegian seafood, establishing Norway as the worl d’s largest exporter of seafood.  Further growth
in the fishing industry is, however, limited by market access restrictions, for example due to high
tariff rates on seafood exports.  We therefore attach great importance to a new broad round of
multilateral negotiations to provide the necessary  forum for achieving increased market access
through substantial reductions of bound tariffs for industrial goods, including fish and fish products.
As the fishery sector is very vulnerable to non-trade measures, we also favour that forthcoming
market access negotiations include non-tariff measures.
12. The Norwegian import regime for agricultural products changed fundamentally following the
implementation of the WTO Agreement on Agriculture.  All non-tariff import measures have beenreplaced by customs tariffs.  Domestic support measures have been adapted in accordance with the
WTO Agreement.  Export subsidies have been reduced in compliance with WTO commitments.
13. Article 20 of the WTO agricultural agreement provides for the continuation of negotiations in
the agricultural sector and refers to the "long-term objective of substantial progressive reductions in
support and protection".  It also lays down that further negotiations shall take into account inter alia
experience gained from implementing the existing agreement and non-trade concerns.
14. As regards non-trade concerns, Norway has emphasised the multifunctional and multifaceted
nature of agriculture as a supplier of public goods such as rural settlement, food security and a living
cultural landscape, cultural heritage and biodiversity.  These are key aspects of the agricultural sector
that need to be properly reflected in the continuation of the reform process.
15. The goal is to safeguard national flexibility in agricultural policy design by allowing the use
of appropriate measures to ensure viable agricultural production throughout the country.PRESS/TPRB/135
Page 11
MORE16. The transition to tariff-based protection in agriculture in Norway facilitated market access for
agricultural products from developing countries, in particular from the least developed countries.Under the Norwegian Generalised System of Preferences, all agricultural products from the least
developed countries are eligible for preferential treatment, with zero duty on all products except for
grain, flour and feedingstuffs.  The latter qualify for a 30% cut in duties up to certain quantitative
ceilings.  In the year 2000, the special safeguard mechanism within the GSP system will be invoked if
imports of duty-free beef from the least developed countries exceed 2700 tons.  For other developingcountries, all products except milk and dairy products, live animals and certain processed agricultural
products are included in the scheme.  The reductions for these countries range from 100% to 10%.
17. The TRIPS Agreement represents a significant step towards safeguarding patents and other
intellectual property rights.  A well-functioning patent system is of vital importance to innovation,
trade and economic growth. Norway has experienced that the patent system has demonstrated an
ability to adapt to shifting needs for the protecti on of technology in new areas.  Without the security
of respect for their rights, owners of intellectual ri ghts would be reluctant to agree to the introduction
of products and services to new markets.  It is therefore of great importance to both exporting and
importing countries that the obligations under the TRIPS Agreement are fully implemented.
18. Given the increasing globalisation of the world economy, it is also necessary to devise rules
that encompass areas of trade not yet covered by the multilateral trading system.  In our view, new
multilateral rules within the WTO should be develope d in areas such as competition, investment, and
trade facilitation.
19. Investment policy related to services is already covered by the GATS, but there are no global
rules for international investment that affect trade.  The enormous increase in foreign direct
investments as well as the proliferation of bilateral investment agreements underline the need for
global rules.
20. Though the Uruguay Round succeeded in allaying many of Norway's concerns regarding
trade rules, there is still need  for further improvement in future rule-making, for example on
anti-dumping.
21. Norway has noted the increasing resort to anti-dumping and other trade remedy actions, both
regarding the number of actions as well as the number of countries applying actions.  Thisdevelopment is a cause for concern to Norway and poses a challenge to the multilateral trading
system.  Some WTO rules, for example provisions regarding anti-dumping, lack clarity.  Norway
would generally advocate clear provisions, narrowing the scope for national discretion.  In this
connection, Norway would welcome discussions regarding the limitations under the Anti-dumping
Agreement in respect of the Dispute Settlement Understanding.
22. Norway follows a cautious policy with respect to application of trade remedy instruments.
No safeguard, anti-dumping or countervailing measures or investigations have been applied or
initiated during the past ten years.
23. The Agreement on Subsidies and Countervailing Measures provides important discipline
regarding subsidies.  Norway believes that the Agreement’s structure regarding prohibited as well as
non-actionable subsidies should be maintained.
24. In Norway’s view, the Dispute Settlement Mechanism has proven its value over the first years
of its operation.  Although Norway has only participated as third party in a few cases, we have noted
with satisfaction that not only large industrialised members, but also developing country members
have taken advantage of the mechanism.PRESS/TPRB/135
Page 12
MORE25. New technologies, including e-commerce, for distributing services and goods have introduced
new and demanding challenges for both exporters, importers, users of intellectual property rights andgovernments.  Norway is in the forefront of the de velopment and use of electronic networks.  From a
Norwegian point of view the trading system must con tinue to evolve in such a way that it fosters this
development and helps reduce the potential conflicts between interested parties to an absolute
minimum.  Only through a well-balanced and open trade regime based on the principle of
technological neutrality can this be possible.
26. For Norway, the average reduction in import duties resulting from the Uruguay Round was,
for industrial products, including fish and fishery products, 39.5% (weighted average).  The
reductions resulted in a weighted average tariff rate of 2% for manufactured goods.  The reductions
have been implemented on schedule.  In addition, Norway has, on a unilateral basis, launched an
ongoing process of simplification of our customs tariff, leading i.e. to the abolition of tariffs of less
than 3%.
27. Norway has faithfully implemented the Agreement on Textiles and Clothing, and has come a
long way in integrating textiles and clothing into the GATT.  Of the 54 quantitative restrictions
maintained at the start of WTO, Norway has liberalised all but three quotas for one product (fishing
nets).
28. Norway recognises the primacy of the multilateral regime for trade established by the WTO.
At the same time Norway is a party to several regional trade agreements, i.e. as a member of EFTA(the European Free Trade Association), and thereby party to several Free Agreements, as well as a
party to the EEA Agreement.  Norway sees regional trade and inter-regional arrangements as
instruments to complement the global regime and accommodate the need for deeper economic
integration.  Regional agreements promote trade and economic development at regional level, and will
in the longer run pave the way for multilateral and broad trade liberalisation.  Consequently, Norwaywill continue to pursue regional and bilateral agreements, in conformity with Article  XXIV of the
GATT and Article V of the GATS, in order to expand trade and economic cooperation with our
partners in Europe, the Mediterranean area and further afield, and thus safeguard Norwegian business
opportunities.
29. The Norwegian Government holds the view that the trading regime of the individual WTO
Members should be based on basic rights, including core labour standards as defined in the ILO.
Norway participates actively in the ILO and has ratified all major conventions relating to labour
standards.  An active dialogue with the parties on the labour market is a prerequisite for facilitating a
better understanding of national principles honouring core labour standards.  The Norwegian
Government has established integrated national labour market policy frameworks, which recognisethe links between the labour market, social development and economic performance.
B. T
HE EUROPEAN ECONOMIC AREA (EEA)
30. The Agreement on the European Economic Area (EEA) extends the single market of the
fifteen EU Member States to the three EFTA countries Norway, Iceland and Liechtenstein.  The
Agreement on the European Economic Area substantially widens and deepens the free trade relations
through the free trade Agreement concluded in 1973 between the EC and Norway.  The EEA
Agreement unites the 15 EU Member States and the three EFTA-EEA States into one single marketgoverned by the same basic rules.  These rules cover free movement of goods, persons, capital and
services (the four freedoms).  Under the Agreement the EFTA-EEA States are able to contribute to the
shaping of this legislation.
31. In addition to internal market legislation the Agreement includes flanking and horizontal
policies intended to strengthen the internal market.  These additional fields of cooperation includeresearch and development, statistics, education, social policy, the environment, consumer protection,PRESS/TPRB/135
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ENDtourism, small- and medium-sized enterprises, culture, information services and audio-visual services.
The EFTA-EEA States participate in EU programmes  in these fields and have a voice in developing
and managing them through participation in their committees.
32. The Agreement on the European Economic Area does not cover the EU’s Common
Agricultural Policy or the Common Fisheries Policy, but contains provisions on various aspects of
trade in agricultural and fish products.  As the EEA Agreement is not a customs union, trade policy
towards third countries remains outside its scope.
33. One of the central features of the Agreement on the European Economic Area, and the one
which distinguishes it most from other international  agreements under public law, is that its common
rules are continuously updated by adding new EC legisl ation.  This aspect is essential given the large
output of Community legislation on the internal market.  Each month a number of EEA-relevant
pieces of legislation are incorporated into the Agreement by decision of the EEA Joint Committee.
The Agreement provides for information and consultation procedures at all stages of the Community’s
decision-shaping process.  EFTA experts are cons ulted by the EU Commission in its preparation of
draft legislation.  The EFTA-EEA states can ask for consultation on matters of concern, and can
negotiate adaptations to Community legislation as it applies to the EFTA countries when special
circumstances make this necessary.  Since the entry into force of the Agreement, more than 2000 EC
legal acts have been incorporated into the Agreement.  Important new legislation has for example
been incorporated into Annex I regarding veterinary and phytosanitary matters.
C. FREE TRADE AGREEMENTS
34. In the Ministerial Declaration from the EFTA Ministerial meeting in Bergen in June 1995,
Ministers expressed their intentions to make a dynamic and independent contribution to improving
economic conditions across Europe and beyond.  Starting in 1992, the EFTA States have concluded
free trade agreements with Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria,Romania, Slovenia, Estonia, Latvia, Lithuania, Is rael, Turkey, Morocco and the PLO for the benefit of
the Palestinian Authorities.  Negotiations on free trade agreements with Canada, Macedonia, Tunisia,
Egypt, Jordan and Cyprus are currently under way, and technical talks have taken place with Chile
and Mexico in order to explore the basis for free trade negotiations.
35. EFTA's free trade agreements cover free trade in industrial products, fish and marine products
and processed agricultural products.  In addition, each EFTA country has concluded bilateral
agricultural protocols with each of the third country partners.  The bilateral agricultural protocols are
an integral part of EFTA's multilateral agreements.  The free trade agreements incorporate provisions
on a number of new trade issues, including rules of competition, state aid, public procurement and
protection of intellectual property.  The agreements  also contain evolutionary provisions for services
and investments, as the parties recognise the growing importance of these areas and will co-operate
with the aim of achieving the gradual liberalisation and mutual opening of markets for investments
and trade in services, taking into account developments in European integration and the WTO.
36. Most of these Agreements are of an asymmetrical nature;  while the EFTA States abolish
barriers to trade at the outset, the partner countries can, for certain sensitive products, phase them out
during a transitional period, leaving them the necessary time to adapt their economy to free trade
conditions.
37. Norway also takes part in the European cumulation of origin system, established as of
1 January 1997 between the European Union, the EFTA States and the central and eastern  European
countries.