WORLD TRADE G/SCM/N/16/NOR
23October 1996
ORGANIZATION(96-4428)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI:1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies and
Countervailing Measures
NORWAY
Thefollowing communication, dated 15October 1996, hasbeenreceived fromthePermanent
Mission ofNorway.
_______________
Thefollowing istheNorwegian updated notification for1995ofthefullnotification submitted
for1994.
Contents PageNo.
1. Introduction ...............................................3
2. Research andDevelopment ......................................3
2.1 Industrial R&D programme andprojects .......................3
2.2 Public R&D contracts ....................................3
2.3 Industrial R&D contracts ..................................3
2.4 Swedish-Norwegian Industrial ...............................3
3. Assistance todisadvantaged regions ................................3
3.1 Regional investment grants .................................3
3.2 Regional grants forthedevelopment ofbusiness andindustry ...........4
3.3 Scheme forrestructuring inregions dependant onasingle industry ........4
3.4 TheNorwegian Corporation forIndustrial Estates andDevelopment (SIVA) ..4
3.5 National programmes forregional development ....................4
3.6 Funds forrestructuring ofthecommunity ofRana ..................4
3.7 Funds fortherestructuring oftheCommunity ofSør-Varanger ..........4
3.8 Funds forrestructuring ofGrenland Area ........................5
3.9 Viking Business Development A/S ............................5
4. Assistance tosmall andmedium sized companies ........................5
4.1 Development grants .....................................5
4.2 ThePublic Advisory System ................................5G/SCM/N/16/NOR
Page2
PageNo.
5. Assistance toenvironmental improvement .............................5
5.1 Aidfordevelopment anddiffusion ofcleaner technologies .............5
5.2 Grants forwaste reduction andrecycling ........................5
5.3 Loan guarantees forinvestment incleaner technologies, waste reduction
andrecycling ..........................................6
5.4 Guarantee forloanfacility andloanfacility tothecompany responsible
fortreatment ofhazardous waste .............................6
5.5 Grant Programme forintroduction ofnewenergy technology ............6
6. Export Promotion ............................................6
6.1 TheExport Campaign, theStrategy Programme andtheProgramme for
Export andDevelopment inSME .............................6
6.2 Export credit financing scheme ..............................6
6.3 Export credit guarantees ...................................6
7. Assistance tospecific industry sectors ...............................7
7.1 Interest ratesubsidies fortheshipbuilding industry ..................7
7.2 Contract andconstruction loansubsidies totheshipbuilding ............7
7.3 Reduced CO2taxonmineral oil/coal andcoke .....................7
7.4 Press subsidies .........................................8
8. Subsidies tothefishery sector ....................................8
8.1 Aidtostructural measures andrationalization inthefishprocessing industry ..8
8.2 Transport support .......................................8
8.3 Support forspecific fisheries ................................8
8.4 Marketing funds ........................................8
8.5 Interest ratesubsidies forfishing vessels fordomestic deliveries ..........8
8.6 Support tofishing vessels fordomestic delivery ....................9
8.7 Grants forbuilding orpurchasing vessels totheCounty Finnmark ........9
8.8 Support tolong-line baiting facilities ...........................9
8.9 Support forenergy saving devices onboard fishing vessels .............9
8.10 Support fortheformation ofmanagement groups inthecoastal fleet .......9
8.11 Aidtodevelopment andrationalization inthefishing industry ...........9
8.12 Research fishery ........................................9
9. Aidtotheforestry sector .......................................9
9.1 Taxconcessions inforestry .................................9
9.2 Subsidies forforest management planning ........................10
9.3 Subsidies forSilviculture ..................................10
9.4 Subsidies fortheconstruction offorest roads ......................10
9.5 Subsidy forharvesting ofround wood indifficult terrain ..............10
9.6 Subsidies fortransport inforestry .............................10
10. TheAgricultural Sector ........................................11G/SCM/N/16/NOR
Page3
1. Introduction
Information concerning theconditions inthe1994 notification which arenotsince altered,
arenotincorporated inthisupdated notification.
2. Research andDevelopment Schemes
2.1 Industrial R&D programme andprojects
Amount ofsubsidy:
Total payment in1995: NOK 576million.
Duetostatistical datalimitations, itisimpossible toexclude theservice sector from
these numbers.
2.2 Public R&D contracts
Amount ofthesubsidy:
Total payment in1995: NOK 142million.
Theaverage subsidy perproject wasabout NOK 2.5million.
2.3 Industrial R&D contracts
Amount ofthesubsidy:
Total payment in1995 wasNOK 32.5million.
Subsidy perproject isNOK 1.2million.
2.4 Swedish-Norwegian Industrial
Amount ofthesubsidy:
Estimated totalnetcostsofloansandgrants disbursed in1995toNorwegian companies:
NOK 7.5million.
(Thenetcostofloans arecalculated as:Interest oftheloans outstanding during 1995.
Therateofinterest usedistheaverage costofgovernment borrowing fornewloans
in1995: 6.2percent. Theamount ofinterest received bytheFund issubtracted.
Write-offs areadded tothenetcosts.)
3. Assistance todisadvantaged Regions
3.1 Regional investment grants
Amount ofthesubsidy:
Total payment in1995: NOK 601million.
Average subsidy perproject: NOK 0.5million.G/SCM/N/16/NOR
Page4
3.2 Regional grants forthedevelopment ofbusiness andindustry
Amount ofthesubsidy:
Total payment in1995: NOK 234million.
Average subsidy perproject: NOK 0.2million.
3.3 Scheme forrestructuring inregions dependant onasingle industry
Amount ofthesubsidy:
Total payment in1995: NOK 50.9million.
Included inthefigures arealsogrants tofinancing different types ofinfrastructure to
buyshares inlocalenterprises oncommercial terms limited to49percentoftotalshare
capital.
Average subsidy perproject inNOK 0.07million.
3.4 TheNorwegian Corporation forIndustrial Estates andDevelopment (SIVA)
Amount ofthesubsidy:
Budgeted in1995: NOK 7million.
3.5 National programmes forregional development (Ch.552.53)
Amount ofthesubsidy:
Total payment in1995: NOK 99million. (Themajor parttoresearch institutes/centres
located inassisted areas.)
3.6 Funds forrestructuring ofthecommunity ofRana
Amount ofthesubsidy:
Thescheme hadatotalbudget ofNOK 500million.
About 2/5ofthegrantischannelled toinfrastructure andtothefinance ofpublic bodies,
andabout 3/5ofthegrant ischannelled toprivate investment anddevelopment ofnew
industrial activities.
Total payment toindustry in1995 wasNOK 14.2million.
3.7 Funds fortherestructuring oftheCommunity ofSør-Varanger
Amount ofthesubsidy:
Thetotalamount budgeted forthescheme isNOK 400million.G/SCM/N/16/NOR
Page5
About 40percentofthisisdistributed toinfrastructure andpublic bodies, andabout
60percenttoprivate investment andthedevelopment ofnewindustrial activities.
Total payment toindustry in1995 wasNOK 4.7million.
3.8 Funds forrestructuring ofGrenland Area
Amount ofthesubsidy:
Total payment in1995 wasNOK 13.7million.
Average subsidy perproject in1995: NOK 236,000
3.9 Viking Business Development A/S
Unchanged.
4. Assistance tosmall andmedium sized companies
4.1 Development grants
Amount ofthesubsidy:
Total payment in1995: NOK 439million.
(Grants totheservice sector areincluded inthefigures.)
Average subsidy perproject in1995 wasNOK 0.485 million.
4.2 ThePublic Advisory System
Amount ofthesubsidy:
Thegrants given totheinstitutions inorder toprovide theservices (allsectors) in1995:
TI: NOK 77,500,000
VINN: NOK 26,000,000
BRT: NOK 55,350,000
5. Assistance toenvironmental improvement
5.1 Aidfordevelopment anddiffusion ofcleaner technologies
Amount ofthesubsidy:
Total payment in1995: NOK 39.1million (Service sector included).
5.2 Grants forwaste reduction andrecycling
Amount ofthesubsidy:
Total payment in1995: NOK 85.7million.G/SCM/N/16/NOR
Page6
5.3 Loan guarantees forinvestment incleaner technologies, waste reduction andrecycling
Amount ofthesubsidy:
Payment duetodefaulted loans in1995: NOK 17.9million.
5.4 Guarantee forloanfacility andloanfacility tothecompany responsible fortreatment
ofhazardous waste
Unchanged.
5.5 Grant Programme forintroduction ofnewenergy technology
Amount ofthesubsidy:
Thebudget forthesubsidy wasin1995: NOK 40million.
6. Export Promotion
6.1 TheExport Campaign, theStrategy Programme andtheProgramme forExport
Development inSME
Amount ofthesubsidy:
Total payments in1995:
TheExport Campaign: NOK 23million
TheProgramme forExport Development inSME: NOK 17million
TheStrategy Programme: NOK 17million.
6.2 Export credit financing scheme
Amount ofthesubsidy:
Thenet,accumulated value ofthesubsidies fortheyear1995 isNOK 79million.
Service sector isincluded. Thisamount represents thenetsubsidies required forthe
portfolios ofcredits andfunding resulting from alltransactions forthescheme upto
andincluding 1995.
6.3 Export credit guarantees
Amount ofthesubsidy:
Netcosts in1995 wereNOK -511million (negative amount ofsubsidy). (Netcosts
arecalculated ascostsofguarantees metin1995, minus thefeesreceived inthatyear
andminus recoveries.)G/SCM/N/16/NOR
Page7
7. Assistance tospecific industry sectors
7.1 Interest ratesubsidies fortheshipbuilding industry -long-term financing and
construction loans
Theauthority responsible forthesubsidy
From 1993TheMinistry ofIndustry andEnergy through "A/SEksportfinans" (before
1993 TheMinistry ofFinance andCustoms).
Amount ofthesubsidy:
Total payment inNOK million in1995:
Interest ratesubsidies: 391.9
Nothing waspaidoutasconstruction loans subsidies.
7.2 Contract andconstruction loansubsidies totheshipbuilding
Amount ofthesubsidy:
Total payment in1995: NOK 828.9
7.3 Reduced CO2taxonmineral oil/coal andcoke
Towhom andhowthesubsidy ispaid:
Taxconcessions forthepaper andpulpindustry, thefishflour industry andthecement
andlecaindustry:
(a) Mineral oil
Anexcise dutyislevied onmineral oil.TheCO2taxonmineral oilwasin
1995NOK 0.415 perlitre. TheSO2taxwasunchanged. There arenochanges
inwhich sectors ortowhatdegree theyareexcepted from mineral oiltax.
(b) Coalandcoke
TheCO2taxoncoalandcokewasin1995 NOK 0.415 perkilo. There are
nochanges inwhich industries areexempted from CO2tax.
Amount ofthesubsidy:
Thetaxconcessions in1995 amounted toabout NOK 40million forthepaper and
pulpindustry, toabout NOK 10million forthefishflour industry andtoabout
NOK 90million forthecement andlecaindustry.G/SCM/N/16/NOR
Page8
7.4 Press subsidies
Amount ofthesubsidy:
Total payment in1995: NOK 202million.
8. Subsidies tothefishery sector
8.1 Aidtostructural measures andrationalization inthefishprocessing industry
Amount ofthesubsidy:
Itisnotpossible tonotify subsidy perunit. Thetotalexpenditure for1995 was
NOK 0.3million.
8.2 Transport support
Amount ofthesubsidy:
Total payment in1995 wasNOK 37.2million.
Itisnotpossible tonotify subsidy perunit.
8.3 Support forspecific fisheries
Amount ofthesubsidy:
Total payment in1995wasNOK 5.5million. Thepayment wasdistributed asfollows:
Crab: NOK 0.6million
Coastal shrimps: NOK 2.9million
Coastal sprat: NOK 1.0million
Coastal mackerel: NOK 0.8million
Coastal herring: NOK 0.2million
8.4 Marketing funds
Thetotalexpenditure for1995 wasNOK 3.3million. Thisfundcame toanendin
1995.
8.5 Interest ratesubsidies forfishing vessels fordomestic deliveries -long-term financing
andconstruction loans
Authority responsible forthesubsidy:
From 1993 theMinistry ofIndustry andEnergy through theNational Fishery Bank
ofNorway (before 1993, theMinistry ofFinance andCustoms).
Amount ofthesubsidy:
Total amount ofinterest ratesubsidies in1995: NOK 17.9million nothing waspaid
outasconstruction loansubsidies.G/SCM/N/16/NOR
Page9
8.6 Support tofishing vessels fordomestic delivery; contract subsidies andconstruction
loansubsidies
Amount ofthesubsidy:
Total payment in1995 wasNOK 30.5million.
8.7 Grants forbuilding orpurchasing vessels totheCounty Finnmark
Amount ofthesubsidy:
Budget 1995: NOK 2.5million.
8.8 Support tolong-line baiting facilities
Amount ofthesubsidy:
1995: NOK 6per100hooks, totalNOK 9.5million.
8.9 Support forenergy saving devices onboard fishing vessels
Thisscheme came toanendin1995. For1995noaidwasgranted tosupport energy
saving devices onboard fishing vessels.
8.10 Support fortheformation ofmanagement groups inthecoastal fleet
Thetotalexpenditure for1995 wasNOK 0.7million. Thisscheme came toanend
in1995.
8.11 Aidtodevelopment andrationalization inthefishing industry
Amount ofthesubsidy:
Total budget 1995: NOK 9million.
8.12 Research fishery
Thisscheme came toanendin1995. In1995 noaidwasgranted under thisscheme.
9. Aidtotheforestry sector
9.1 Taxconcessions inforestry; theForest Trust Fund andthefive-year average tax
assessment
Amount ofthesubsidy:
TheForest Trust Fund: In1995, theamount distributed onanational basisfromthe
Forest Trust Fund Accounts toinvestments eligible fortheadvantages totalled
NOK 183million. Thenon-taxable amount involved totalled NOK 58million. The
subsidies involved depends ontheindividual owners taxrates andhave notbeen
calculated.G/SCM/N/16/NOR
Page10
9.2 Subsidies forforest management planning
Amount ofthesubsidy:
Thebudget allocations for1995 were NOK 36million.
Onaverage, thesubsidies amounted toNOK 65.-perhectare fortheprepared forest
management plans. Thegrants areabout 60percent.
9.3 Subsidies forSilviculture
Amount ofthesubsidy:
Thebudget allocations for1995 were NOK 82million.
Afforestation andreforestation weresubsidized in1995with0-70percentofthetotal
cost,witha30percentcountry average. Sitepreparation/Scarification wasonaverage
subsidized withNOK 370perhectare (total grant islimited toNOK 2.7million).
Supplementary work andmaintenance ofyoung forest: Clearing andpre-commercial
thinning were ontheaverage subsidized withNOK 1,860 perhectare.
9.4 Subsidies fortheconstruction offorest roads
Amount ofthesubsidy:
Thebudget allocation amounted toNOK 92.6million in1995. Theaverage annual
subsidy toeachroadproject amounts toabout NOK 15-20,000 perforest owner. This
corresponds toabout NOK 10percumetres harvested within theroadarea,orabout
3percentofthegross product salevalue. Average grant ratein1995 was37per
cent.
9.5 Subsidy forharvesting ofround wood indifficult terrain
Amount ofthesubsidy:
Theannual budget allocation amounted toNOK 9million in1995. Theaverage subsidy
equals NOK 46percumetre, corresponding toabout 15-25 percentoftheharvesting
costs. Theaverage annual grant toeachreceiver amounts toabout NOK 10,000 with
amaximum ofNOK 150,000.
9.6 Subsidies fortransport inforestry
Amount ofthesubsidy:
Thebudget allocations amounted toNOK 8million in1995.
In1995,about250,000cumetresweresubsidizedunderthetransportgrantprogramme,
which amount to3percentofthenational totalofround wood volume sold.G/SCM/N/16/NOR
Page11
10. TheAgricultural Sector
Tables 1to10provide updated information onagricultural support inNorway aswellasmarket
information onmajor agricultural commodities. 1995 figures maydiffer from thefigures provided
lastyear, asthelatter figures were provisional.
TABLE 1
Chapter 1150, Agricultural Agreement, MioNOK
1995 1996
Agricultural Development Fund 461.6 491.3
Market Regulation 114.7 86.0
Price Support 2,886.1 2,948.0
Other direct payments toproducers 6,819.0 6,711.1
Total 10,281.4 10,236.4
TABLE 2
Chapter 1150, Price Support MioNOK
1995 1996
Milk andmilkproducts 896.0 803.5
Beef, veal, sheep meat, pigmeat 874.0 884.1
Cereals 876.4 966.3
Wool 168.1 170.8
Other 71.6 123.3
Total 2,886.1 2,948.0
TABLE 3
Chapter 1150, Other direct payments toproducers, MioNOK
1995 1996
Structural income support 1,573.6 1,509.6
Headage support, animals 1,948.1 1,654.9
Acreage andcultural landscape scheme 2,874.1 3,163.6G/SCM/N/16/NOR
Page12
Production support onmarket crops 55.0 63.3
Transport support, meatandeggs 84.7 82.7
Other 283.5 237.2
Total 6,819.0 6,711.1
TABLE 4
Basic price support, amount perunit(oreperlitre/kg)
01.07.95-30.06.96 01.07.96-30.06.97
Milk 22.2 18.8
Beefandveal 295.0 285.0
Sheep meat 450.0 440.0
TABLE 5
Regionally differentiated price support, amount perunit(oreperlitre/kg)
01.07.95-30.06.96 01.07.96-30.06.97
Milk10/158 0/154
Meat20/1,300 0/1,300
TABLE 6
Cow'smilk
Year Received bydairies Consumption, million kg
Million litres Whole, low-fat and
skimmed milkCream andsour
cream
1992 1,784 722.8 28.5
1993 1,780 703.2 28.8
1994 1,753 694.6 29.0
1995 1,740 681.5 29.2
1996 1,709 678.2 30.5
1Tenzones, varying rates, lowest andhighest cited.
2Fivezones, varying rates, lowest andhighest cited(varies alsoforkindofmeat).G/SCM/N/16/NOR
Page13
TABLE 7
Cheese (1,000 tons)
Year Production Exports Imports Consumption
1992 77.8 26.8 2.4 57.5
1993 80.1 22.2 2.4 60.5
1994 79.7 21.9 2.3 59.8
1995 82.5 23.1 2.4 61.3
1996 83.1 23.0 2.4 62.5
TABLE 8
Butter (1,000 tons)
Year Production Exports Imports Consumption
1992 20.2 5.8 0.0 13.3
1993 19.6 7.6 0.0 13.2
1994 17.3 4.0 0.0 12.9
1995 17.5 4.3 0.0 13.2
1996 17.3 4.2 0.0 13.1
TABLE 9
Cereals (million kg)3
Year Production Imports4Exports Consumption
Wheat
1992 195.1 274.5 10.7 413.7
1993 360.0 243.3 9.3 489.0
1994 253.1 301.4 7.3 539.6
1995 363.0 125.5 0.0 443.0
1996 263.3 notavailable notavailable 443.0
3Production +Import -Export maydiffer fromconsumption figures. These differences aredue
tochange instocks andstoring losses. Figures forimport for1996 arenotavailable.
41995 figures ofimport andexport arebased upon External Trade 1995 byOfficial Statistics of
Norway.G/SCM/N/16/NOR
Page14
Rye
1992 3.7 33.0 0.0 35.4
1993 12.4 28.4 0.0 34.1
1994 7.0 36.8 0.0 41.9
1995 14.0 25.3 0.0 10.05
1996 15.4 notavailable notavailable 10.06
Barley
1992 485.0 0.0 0.0 635.1
1993 630.0 46.7 0.0 767.1
1994 492.8 206.0 0.0 667.1
1995 649.0 161.4 0.0 665.0
1996 554.8 notavailable notavailable 665.0
Oats
1992 329.6 0.0 50.0 553.7
1993 379.8 0.0 0.0 390.7
1994 291.9 17.5 0.0 341.8
1995 421.0 60.0 0.0 326.0
1996 280.9 notavailable notavailable 326.0
TABLE 10
Meat (1,000 tons)7
Year Production Imports Exports Consumption
Beefandveal
1992 83.8 1.3 5.9 78.6
1993 83.1 1.4 3.6 82.2
1994 86.7 2.0 1.4 86.7
1995 84.3 3.3 1.9 88.8
1996 85.8 3.5 2.0 89.5
5Only ryeforfeedpurposes.
6Only ryeforfeedpurposes.
7Production +Import -Export maydiffer from consumption figures duetochanges instocks.G/SCM/N/16/NOR
Page15
Year Production Imports Exports Consumption
Mutton
1992 23.9 0.2 0.0 23.7
1993 25.2 0.3 0.5 25.7
1994 25.8 0.5 0.0 24.9
1995 25.9 0.7 0.0 27.1
1996 26.8 0.5 0.1 27.3
Pork
1992 90.8 3.5 5.6 87.3
1993 89.8 5.1 2.8 93.4
1994 90.8 5.5 0.4 96.5
1995 95.6 5.8 0.2 100.9
1996 102.2 5.0 0.6 105.0
Poultry meat
1992 22.7 0.3 0.0 21.4
1993 22.8 0.3 0.0 24.2
1994 25.6 0.4 0.1 27.1
1995 28.6 1.1 0.1 28.9
1996 33.2 0.5 0.1 32.6
Eggs
1992 50.8 0.1 1.6 47.9
1993 51.3 0.1 2.9 47.6
1994 51.5 0.0 2.2 48.1
1995 49.3 0.0 1.7 46.7
1996 48.2 0.8 1.5 46.5
Sources:
Budget Committee forAgriculture
Norwegian Grain Corporation
External Trade 1995, Statistics Norway 1996
Proposition No.61(1994-1995) totheStorting bytheMinistry ofGovernment Administration
Proposition No.72(1995-1996) totheStorting bytheMinistry ofGovernment Administration
Proposition No.1(1995-1996) totheStorting bytheMinistry ofAgriculture.