WORLD TRADE IMA/INV/5/Rev.1
19August 1997
ORGANIZATION(97-3417)
Original: English International Bovine Meat Agreement
INTERNATIONAL MEAT COUNCIL
Inventory ofDomestic Policies andTrade Measures
NORWAY
Revision
Parties haveagreed to"provide information ontheirdomestic policies andtrade measures
including bilateral andplurilateral commitments inthebovine meat sector, andshallnotify assoon
aspossible anychanges insuchpolicies andmeasures thatarelikely toaffect international trade in
bovine meatandliveanimals" (Article III:3). TheSecretariat "shall draw upandkeepuptodatean
inventory ofallmeasures affecting trade inbovine meat andliveanimals, including commitments
resulting from bilateral, plurilateral andmultilateral negotiations" (Article III:4).
Thedocumentscontainingtherepliestothequestionnaireondomesticpoliciesandtrademeasures
arecirculated under theseries IMA/INV. They willberevised asandwhen changes arenotified.IMA/INV/5/Rev.1
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INTERNATIONAL BOVINE MEAT AGREEMENT
Questionnaires GandH
PART G
PartG.1Information onDomestic Policies andTrade Measures -1996
Background information
Current overall guidelines forNorwegian agricultural policy werelaiddown bytheNorwegian
Parliament in1993. Thechief aimofthese guidelines istoassure asound agriculture partly by
encouraging competition andpartly byproviding assistance inthestarting-up ofnewactivities related
toagriculture. OneoftheGovernment 'sprincipal aimsistofurther reduce thedirect transfers made
tothefarmers.
Yearly adjustments inthegeneral agricultural policy aremade intheAgricultural Agreement
between thefarmers associations andtheGovernment afternegotiations between theparties. Asa
result ofthisyear'snegotiations, asystem forlimited andadministered trade inmilkquotas willbe
implemented asof1January 1997.
Therelationship between various product prices areofcentral importance toNorwegian
agricultural policy. Thisisparticularly thecaseforgrain andmilk. Prices offeedgrain andfeed
concentrates areregulated inorder toregulate livestock production inlinewithdemand aswellas
stimulate domestic fodder production. Further, inorder tokeepagricultural incomes atadesirable
level, other mechanisms aside fromprice mechanisms mustberelied upon. Therefore, asubstantial
partofagricultural income issecured bywayofother measures. These measures areforthemost
partdifferentiated according tothesizeoftheproduction andlocalconditions.
ThenewGATT/WTOAgreementisalsopartoftheoverallframeworkforNorwegianagricultural
policies. Itwasimplemented in1995 andinvolved ashiftfromtheprevious quantitative restrictions
onimports toatariff based import regime. TheGovernment hasbeengiven amandate toadapt the
newtariff based regime overtimesothattheNorwegian agriculture andthefoodindustry willmeet
withrealcompetition. Asaresult thereof, consumer prices aresupposed todecrease. There willbe
noimmediate changes intheimport regime forbeefandvealandsheepmeat. Forpoultry meat, there
willbeatransition toanimport regime more adapted tothesector itself. Thisisthought toinduce
more competition inthesector andincreased efficiency.
I. Production
(a) Description ofthebeefindustry
From 1975 to1982 there wasasteady increase intheproduction ofbeefinNorway. During
thepasttenyears, production hasstabilized ataround 75,000 tonnes to85,000 tonnes ofbeefperyear.
In1995, Norway produced 84,291 tonnes ofbeefandveal, adecrease by2.8percentcompared to
1994.
Almost allbeefproduction inNorway isbased onadualpurpose breed ofcattle (Norwegian
redcattle). Thus, intheshortterm, thepotential toincrease beefproduction islargely dependent upon
thenumber ofmilkcows, which hasbeenreduced forseveral years. Forseveral years, therehasbeen
some increase inspecialized beefproduction. Itislikely tocontinue inthenextyears. Total productionIMA/INV/5/Rev.1
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ofbeefandvealisexpected toincrease somewhat in1996and1997asaresult ofchanges inthesupport
systems favouring farmers withsuckling cows.
(b)and(c) Support andstabilization measures
Thefarmer-owned Norwegian Meat Co-operative isresponsible forimplementing market
regulations tomaintain prices atthelevels laiddown intheAgricultural Agreement. TheCo-operative
undertakes market stabilization activities bymeans ofthesetting ofprices, theprovision ofstorage,
exports andimports (inco-operation withprivate firms) andfinally salespromotion.
TheAgricultural Agreement setsaverage target prices atthewholesale level fordifferent
categories ofmeat. These prices formtheguideline forthemarket regulation activities oftheNorwegian
Meat Co-operative.
Abasedeficiency payment isgranted tomeatproduction. Thebasedeficiency payment for
beefin1996-1997 isNkr3.05perkg.(adecrease byNkr0.20/kg. compared tothelastperiod).
Furthermore, regionally differentiated deficiency payments arealsopaidformeatproduction incentral
andnorthern partsofNorway. Thissubsidy isdifferentiated according tofourregions, therespective
levels of1996-1997 areNkr4.05, Nkr6.55, Nkr10.20 andNkr11.10 perkg.
Within theframework oftheAgricultural Agreement, subsidies aregiven toreduce costs of
transportation ofcattle fromthefarmtotheslaughterhouse. Furthermore, freight subsidies aregiven
fortransport ofcarcasses ofbeef, from surplus regions todeficit regions.
II. Internal prices andconsumption
Thetarget price ofbeef, setinlastyear'sAgricultural Agreement wasNkr33.81 forclass1
beefandhigher classes. Asof1January 1996, theEUROP standard wasintroduced bytheNorwegian
Meat Co-operative. Asaresult, thetarget prices inthisyear'sAgricultural Agreement aresetfor
newrepresentative goods. Thenewcategorization andthenewtarget prices areasfollows:
Forbeefandveal: Young ox,class O-andbetter (fatcover class 2-,2and2+)Nkr34.85/kg.
Forsheep: Lamb class O-andbetter (fatcover class 2-,2and2+) Nkr36.19/kg.
Forpork: Slaughter pigsclass E(upto90kgs.) Nkr26.72/kg.
In1995, percapita consumption ofbeefwas19.9kgs., ofmutton 6.2kgs., andofpigmeat
23.1kgs. Total consumption ofbeefhasincreased during thepastfiveyears, ashasconsumption
percapita.
Beefandporkareexamples ofproducts withsomewhat larger demand elasticities thanmost
other agricultural products. Norwegian calculations indicate thatthedemand forbeefismore price
dependent thanthedemand forpork. Changes intheprice relations between these types ofmeatwill
haveaninfluence ondemand foronecompared totheother. Thecalculations imply thatchanges in
theprice ofporkhavelesseffect onconsumption ofbeefthanthereverse.
InNorway, thepercapita consumption offishishigh, andtheprice relationship between fish
andmeatisalsoimportant forchanges inmeatconsumption. Norway 'smoderate consumption ofmeat
mustbeseenrelative tothehighconsumption offishandfishproducts. Themeatconsumption level
mustalsobeviewed inlightofthefactthatNorwegians traditionally onlyconsume onewarm meal
aday. Adecrease inprices isexpected toprompt anincrease inmeatconsumption.IMA/INV/5/Rev.1
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III. Measures atthefrontier (Items (a),(b)and(e))
Asaresult oftheAgreement onAgriculture completed intheUruguay Round, Norway has
replaced thenon-tariff import restrictions bytariffs. Formeatproducts, ithasbeendecided toapply
specific ratesofdutyforallproducts. Thefirstreduction oftheratescompared tothebound base
rateofdutywasdoneasof1January 1995. Asof1July1995, Norway applies bound ratesforthe
year2000which forbeefandbeefproducts varywithin theinterval ofNkr14.66 perkg.toNkr148.32
perkg.
Customs tariffs applicable asof1January 1996
Tariff itemNo. Description Tariff
02.01
1000
2000
3001
3009
02.02
1000
2000
3000
02.06
1000
2100
2200
2900
02.10
2000
9000
16.02
5000Meat ofbovine animals, fresh orchilled
carcasses andhalf-carcasses
other cutswithbone-in
boneless:
beefsteaks andfillets
boned orboneless
Meat ofbovine animals, frozen
carcasses andhalf-carcasses
other cutswithbone-in
boned orboneless
Edible offalofbovine animals, ...
ofbovine animals, fresh orchilled
ofbovine animals, frozen:
-tongues
-livers
-other
Meat andedible offalsalted, inbrine, dried
orsmoked; edible flours ofmeatormeat
offal
meatofbovine animals
other, incl.edible flours ofmeatoroffal
meat
Other preserved meat, meatoffalorblood
ofbovine animalsNkr32.28/kg.
Nkr66.40/kg.
Nkr119.01/kg.
Nkr119.01/kg.
Nkr32.28/kg.
Nkr66.40/kg.
Nkr119.01/kg.
Nkr34.28/kg.
Nkr23.56/kg.
Nkr12.78/kg.
Nkr26.94/kg.
Nkr115.14/kg.
Nkr144.26/kg.
Nkr129.30/kg.
(d) Sanitary andveterinary regulations
Withtheentry intoforceoftheEEAAgreement intheVeterinary fieldby1July1994, sanitary
regulations relating totrade inbovine meatandmeatproducts havebeenharmonized. Norway has
adopted theEUAcquis inthisfield, withrather fewderogations. Thus national provisions regarding
BSEareretained. Imports offreshbovine meatfromtheEEAissubject tomeatinspection, including
bacteriological control.IMA/INV/5/Rev.1
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Importation ofbeeffromGreat Britain istemporarily banned since26March 1996. Anexpert
group appointed bytheGovernment isexamining indepth thepossible linkbetween BSE, Scrapie and
human diseases. Apossible prolongation oftheimport banwillbeconsidered when theexpert group
haspresented itsconclusions.
Imports ofbeeffromthirdcountries must, asaminimum, comply withtheEEAregulations.
Forthetimebeing, animportation permit isrequired.
PART H
PartHInformation onBilateral orPlurilateral Agreements
intheField ofBovine Animals, Meat andOffal
None.