WORLD TRADE G/SCM/N/25/NOR
14November 1997
ORGANIZATION(97-5016)
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 17October 1997, hasbeenreceived fromthePermanent
Mission ofNorway.
_______________
Thefollowing istheNorwegian updated notification for1996ofthefullnotification 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 ................................4
3.1 Regional investment grants .................................4
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 ..........5
3.8 Funds forrestructuring ofGrenland Area ........................5
3.9 Viking Business Development A/S ............................5G/SCM/N/25/NOR
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Page
4. Assistance tosmall andmedium sized companies ........................5
4.1 Development grants .....................................5
4.2 ThePublic Advisory System ................................5
5. Assistance toenvironmental improvement .............................6
5.1 Aidfordevelopment anddiffusion ofcleaner technologies .............6
5.2 Grants forwaste reduction andrecycling ........................6
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 ...................................7
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 ........................................9
8.5 Interest ratesubsidies forfishing vessels fordomestic deliveries ..........9
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
9. Aidtotheforestry sector .......................................10
9.1 Taxconcessions inforestry .................................10
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 ..............10G/SCM/N/25/NOR
Page3
9.6 Subsidies fortransport inforestry .............................11
10. TheAgricultural Sector ........................................11
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 in1996: NOK 596million.
Duetostatistical datalimitations, itisimpossible toexclude theservice sector from
these numbers.
2.2 Public R&D contracts
Amount ofthesubsidy:
Total payment in1996: NOK 163million.
Theaverage subsidy perproject wasabout NOK 2.2million.
2.3 Industrial R&D contracts
Amount ofthesubsidy:
Total payment in1996 wasNOK 38.5million.
Subsidy perproject isNOK 1.3million.
2.4 Swedish-Norwegian Industrial
Amount ofthesubsidy:
Estimated totalnetcostsofloansandgrants disbursed in1996toNorwegian companies:
NOK 12,000.-.
(Thenetcostofloans arecalculated as:Interest oftheloans outstanding during 1996.
Therateofinterest usedistheaverage costofgovernment borrowing fornewloans
in1996: 6.0%. Theamount ofinterest received bytheFund issubtracted. Write-offs
areadded tothenetcosts.)G/SCM/N/25/NOR
Page4
3. Assistance todisadvantaged Regions
3.1 Regional investment grants
Amount ofthesubsidy:
Total payment in1996: NOK 556million.
Average subsidy perproject: NOK 0.5million.
3.2 Regional grants forthedevelopment ofbusiness andindustry
Amount ofthesubsidy:
Total payment in1996: NOK 296million.
Average subsidy perproject: NOK 0.2million.
3.3 Scheme forrestructuring inregions dependant onasingle industry
Amount ofthesubsidy:
Total payment in1996: NOK 59million.
Included inthefigures arealsogrants tofinancing different types ofinfrastructure to
buysharesinlocalenterprisesoncommercialtermslimitedto49%oftotalsharecapital.
Average subsidy perproject inNOK 0.07million.
3.4 TheNorwegian Corporation forIndustrial Estates andDevelopment (SIVA)
Amount ofthesubsidy:
Budgeted in1996: NOK 24million.
3.5 National programmes forregional development
Amount ofthesubsidy:
Total payment in1996: NOK 89million. (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 in1996 wasNOK 8.8million.G/SCM/N/25/NOR
Page5
3.7 Funds fortherestructuring oftheCommunity ofSør-Varanger
Amount ofthesubsidy:
Thetotalamount budgeted forthescheme isNOK 400million.
About 40%ofthisisdistributed toinfrastructure andpublic bodies, andabout 60%
toprivate investment andthedevelopment ofnewindustrial activities. TheParliament
decided inJune1996 toclose down A/SSydvaranger. Tocreate jobsandavoid
unacceptable consequences oftheclosing down ofSydvaranger, Parliament approved
inJune1996 togrant additionally NOK 30million forrestructuring thecommunity
ofSør-Varange.
Total payment toindustry in1996 wasNOK 9.9million.
3.8 Funds forrestructuring ofGrenland Area
Amount ofthesubsidy:
Total payment in1996 wasNOK 18million. Aminimum ofNOK 12million were
supposed usedasaidforindividual companies. UptoNOK 6million wereavailable
forregional strategic measures.
3.9 Viking Business Development A/S
Amount ofsubsidy:
Thisscheme came toanendin1996.
4. Assistance tosmall andmedium sized companies
4.1 Development grants
Amount ofthesubsidy:
Total payment in1996: NOK 692.7 million.
(Grants totheservice sector areincluded inthefigures.)
Average subsidy perproject in1996 wasNOK 0.353 million.
4.2 ThePublic Advisory System
Amount ofthesubsidy:
Thegrants given totheinstitutions inorder toprovide theservices (allsectors) in1996:
TI: NOK 77,500,000
VINN: NOK 26,000,000
BRT: NOK 55,350,000G/SCM/N/25/NOR
Page6
5. Assistance toenvironmental improvement
5.1 Aidfordevelopment anddiffusion ofcleaner technologies
Amount ofthesubsidy:
Total payment in1996: NOK 24.5million (Service sector included).
5.2 Grants forwaste reduction andrecycling
Amount ofthesubsidy:
Total payment in1996: NOK 49.8million.
5.3 Loan guarantees forinvestment incleaner technologies, waste reduction andrecycling
Amount ofthesubsidy:
Payment duetodefaulted loans in1996: NOK 20.4million.
5.4 Guarantee forloanfacility andloanfacility tothecompany responsible fortreatment
ofhazardous waste
Unchanged.
5.5 Grant Programme forintroduction ofnewenergy technology
Amount ofthesubsidy:
Thebudget forthesubsidy in1996: NOK 36million.
6. Export Promotion
6.1 TheExport Campaign, theStrategy Programme andtheProgramme forExport
Development inSME
Amount ofthesubsidy:
Total payments in1996:
TheExport Campaign: thisscheme came toanend31December 1995
TheProgramme forExport Development inSME: NOK 25million
TheStrategy Programme: NOK 40million.
6.2 Export credit financing scheme
Theauthority responsible forthesubsidy
From 1997 theMinistry ofTrade andIndustryG/SCM/N/25/NOR
Page7
Amount ofthesubsidy:
Thenet,accumulated value ofthesubsidies fortheyear1996 isNOK 80million.
Service sector isincluded. Thisamount represents thenetsubsidies required forthe
portfolios ofcredits andfunding resulting from alltransactions forthescheme upto
andincluding 1996.
6.3 Export credit guarantees
Amount ofthesubsidy:
Revised calculations 1994* 1995* 1996
Netcosttogovernment -45,620 -282,047 -328,785
(Figures inNOK thousands, negative amount ofsubsidy)
(Netcosts arecalculated ascosts ofguarantees metin1996, minus thefeesreceived
inthatyearandminus recoveries.)
*The figures for1994 and1995 under thisscheme arecorrected.
7. Assistance tospecific industry sectors
7.1 Interest ratesubsidies fortheshipbuilding industry -long-term financing and
construction loans
Theauthority responsible forthesubsidy
From 1993 TheMinistry ofIndustry andEnergy through "Eksportfinans ASA" (as
from 1997 TheMinistry ofTrade andIndustry).
Amount ofthesubsidy:
Total payment inNOK million in1996:
Interest ratesubsidies: 212.0
Nothing waspaidoutasconstruction loans subsidies.
7.2 Contract andconstruction loansubsidies totheshipbuilding
Amount ofthesubsidy:
Total payment in1996: NOK 1,022.
7.3 Reduced CO2taxonmineral oil/coal andcoke
Towhom andhowthesubsidy ispaid:
Taxconcessions forthepaper andpulpindustry, theherring industry andthecement
andlecaindustry:G/SCM/N/25/NOR
Page8
(a) Mineral oil
Anexcise dutyislevied onmineral oil.TheCO2taxonmineral oilwasin
1996 NOK 0.425 perlitre. Thepaper andpulpindustry, andtheherring
industry payaCO2taxreduced to50%. TheSO2taxwas0.07. There are
nochanges inwhich sectors ortowhatdegree theyareexcepted frommineral
oiltax.
(b) Coalandcoke
TheCO2taxoncoalandcokewasin1996 NOK 0.425 perkilo. There are
nochanges inwhich industries areexempted from CO2tax.
Amount ofthesubsidy:
Thetaxconcessions in1996 amounted toabout NOK 55million forthepaper and
pulp industry, toabout NOK 10million fortheherring industry andtoabout
NOK 95million forthecement andlecaindustry.
7.4 Press subsidies
Amount ofthesubsidy:
Total payment in1996: NOK 200million.
8. Subsidies tothefishery sector
8.1 Aidtostructural measures andrationalization inthefishprocessing industry
Noaidwasgranted forthismeasure in1996.
8.2 Transport support
Amount ofthesubsidy:
Total payment in1996 wasNOK 28.8million.
Itisnotpossible tonotify subsidy perunit.
8.3 Support forspecific fisheries
Amount ofthesubsidy:
Total payment in1996wasNOK 7.2million. Thepayment wasdistributed asfollows:
Crab: NOK 1.4million
Coastal shrimps: NOK 1.8million
Coastal sprat: NOK 1.6million
Coastal mackerel: NOK 1.8million
Coastal herring: NOK 0.6millionG/SCM/N/25/NOR
Page9
8.4 Marketing funds
Thetotalexpenditure for1996 wasNOK 3.7million. Thisfundcame toanendin
1995, theamount paidoutin1996 wasgranted in1995.
8.5 Interest ratesubsidies forfishing vessels fordomestic deliveries -long-term financing
andconstruction loans
Authority responsible forthesubsidy:
From 1996 theMinistry ofFisheries through theNational Fishery Bank ofNorway.
Amount ofthesubsidy:
Total amount ofinterest ratesubsidies in1996: NOK 12.3million. Nothing waspaid
outasconstruction loansubsidies.
8.6 Support tofishing vessels fordomestic delivery; contract subsidies andconstruction
loansubsidies
Amount ofthesubsidy:
Total payment in1996 wasNOK 17.7million.
8.7 Grants forbuilding orpurchasing vessels totheCounty Finnmark
Amount ofthesubsidy:
Budget 1996: NOK 4.0million.
8.8 Support tolong-line baiting facilities
Amount ofthesubsidy:
Total payment in1996 wasNOK 3.0million
8.9 Support forenergy saving devices onboard fishing vessels
Thisscheme came toanendin1995. For1996noaidwasgranted tosupport energy
saving devices onboard fishing vessels.
8.10 Support fortheformation ofmanagement groups inthecoastal fleet
Thetotalexpenditure for1996 wasNOK 0.5million. Thisscheme came toanend
in1995, theamount paidoutin1996 wasgranted in1995.
8.11 Aidtodevelopment andrationalization inthefishing industry
Amount ofthesubsidy:
Total budget 1996: NOK 6.9million.G/SCM/N/25/NOR
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9. Aidtotheforestry sector
9.1 Taxconcessions inforestry; theForest Trust Fund andthefive-year average tax
assessment
Amount ofthesubsidy:
TheForest Trust Fund: In1996, theamount distributed onanational basisfromthe
Forest Trust Fund Accounts toinvestments eligible fortheadvantages totalled
NOK 180million. Thenon-taxable amount involved totalled NOK 58million. The
subsidies involved depends ontheindividual owners taxrates andhave notbeen
calculated.
9.2 Subsidies forforest management planning
Amount ofthesubsidy:
Thebudget allocations for1996 were NOK 36million.
Onaverage, thesubsidies amounted toNOK 65.-perhectare fortheprepared forest
management plans. Thegrants areabout 60%.
9.3 Subsidies forSilviculture
Amount ofthesubsidy:
Thebudget allocations for1996 were NOK 89million.
Afforestation andreforestation weresubsidized in1996with0-70% ofthetotalcost,
witha30%country average. Sitepreparation/Scarification wasonaverage subsidized
withNOK 350perhectare (total grant islimited toNOK 3.5million). Supplementary
work andmaintenance ofyoung forest: Clearing andpre-commercial thinning were
ontheaverage subsidized withNOK 830perhectare.
9.4 Subsidies fortheconstruction offorest roads
Amount ofthesubsidy:
Thebudget allocation amounted toNOK 71million in1996. Theaverage annual
subsidy toeachroadproject amounts toabout NOK 15-20,000 perforest owner. This
corresponds toabout NOK 10percumetres harvested within theroadarea, orabout
3%ofthegross product salevalue. Average grant ratein1996 was37%.
9.5 Subsidy forharvesting ofround wood indifficult terrain
Amount ofthesubsidy:
Theannual budget allocation amounted toNOK 9.6million in1996.
Theaverage subsidy equals NOK 35percumetre, corresponding toabout 15-25%
oftheharvesting costs. Theaverage annual grant toeachreceiver amounts toabout
NOK 10,000 withamaximum ofNOK 150,000.G/SCM/N/25/NOR
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9.6 Subsidies fortransport inforestry
Amount ofthesubsidy:
Thebudget allocations amounted toNOK 6.1million in1996. NOK 1.8million were
used asunitsupport percu.metre transported inthenorthern region and
NOK 4.3million asinvestment support forconstruction oflogterminals inthewest-
coast region. In1996, about 65,000 cumetres were subsidized under thetransport
grant programme, which amount to3%ofthenational totalofround wood volume
sold.
10. TheAgricultural Sector
Tables 1to10provide updated information onagricultural support inNorway aswellasmarket
information onmajor agricultural commodities. 1997figures areprovisional. Assome figures were
provided lastyearwere provisional, thepresent figures maydiffer from these.
TABLE 1
Chapter 1150, Agricultural Agreement, MioNOK
1996 1997
Agricultural Development Fund 491.3 515.3
Market Regulation 86.0 96.0
Price Support 2,822.6 2,599.3
Other direct payments toproducers 6,711.1 6,858.0
Total 10,086.0 10,068.6
TABLE 2
Chapter 1150, Price Support MioNOK
1996 1997
Milk andmilkproducts 803.5 707.8
Beef, veal, sheep meat, pigmeat 884.1 890.1
Cereals 843.3 707.8
Wool 170.8 165.0
Other 120.9 128.7
Total 2,822.6 2,599.3G/SCM/N/25/NOR
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TABLE 3
Chapter 1150, Other direct payments toproducers, MioNOK
1996 1997
Structural income support 1,509.6 1,449.6
Headage support, animals 1,654.9 1,692.4
Acreage andcultural landscape scheme 3,163.6 3,354.0
Production support onmarket crops 63.3 66.5
Transport support, meatandeggs 82.7 82.5
Other 237.2 213.1
Total 6,711.1 6,858.0
TABLE 4
Basic price support, amount perunit(oreperlitre/kg)
01.07.96-30.06.97 01.07.97-30.06.98
Milk 18.8 11.8
Beefandveal 305.0 270.0
Sheep meat 460.0 490.0
TABLE 5
Regionally differentiated price support, amount perunit(oreperlitre/kg)
01.07.96-30.06.97 01.07.97-30.06.98
Milk10/154 0/154
Meat20/1,300 0/1,300
1Tenzones, varying rates, lowest andhighest cited.
2Fivezones, varying rates, lowest andhighest cited(varies alsoforkindofmeat).G/SCM/N/25/NOR
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TABLE 6
Cow'smilk
Year Received bydairies Consumption, million kg
Million litres Whole, low-fat and
skimmed milkCream andsour
cream
1993 1,780 703.2 28.8
1994 1,737 694.5 28.4
1995 1,709 682.5 28.6
1996 1,686 666.8 29.2
1997 1,701 652.0 29.8
TABLE 7
Cheese (1,000 tons)
Year Production Exports Imports Consumption
1993 80.1 22.2 2.4 60.5
1994 79.7 21.9 2.3 59.7
1995 83.4 23.1 2.4 61.5
1996 85.7 22.5 2.6 64.1
1997 90.1 22.0 2.6 68.0
TABLE 8
Butter (1,000 tons)
Year Production Exports Imports Consumption
1993 19.6 7.6 0.0 13.2
1994 17.6 4.0 0.0 13.0
1995 17.7 4.4 0.0 13.3
1996 16.2 2.4 0.0 13.7
1997 16.2 2.5 0.0 13.9G/SCM/N/25/NOR
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TABLE 9
Cereals (million kg)3
Year Production Imports4Exports Consumption5
Wheat
1993 360.0 243.3 9.3 489.0
1994 253.1 301.4 7.3 539.6
1995 308.0 125.5 0.0 443.0
1996 251.5 232.5 2.3 448.6
1997 247.5 notavailable notavailable 448.6
Rye
1993 12.4 28.4 0.0 34.1
1994 7.0 36.8 0.0 41.9
1995 14.3 25.3 0.0 10.06
1996 11.5 18.3 0.0 44.1
1997 13.0 notavailable notavailable 44.1
Barley
1993 630.0 46.7 0.0 767.1
1994 492.8 206.0 0.0 667.1
1995 535.9 161.4 0.0 665.0
1996 657.0 195.5 0.0 700.5
1997 565.3 notavailable notavailable 700.5
Oats
1993 379.8 0.0 0.0 390.7
1994 291.9 17.5 0.0 341.8
1995 347.4 60.0 0.0 326.0
1996 396.0 109.6 0.0 355.8
1997 302.0 notavailable notavailable 355.8
3Production +Import -Export maydiffer fromconsumption figures. These differences aredue
tochanges instocks andstoring losses. Figures forimport for1997 arenotavailable.
41995 and1996 figures ofimports andexports arebased upon External Trade 1995 and1996 by
Official Statistics ofNorway.
5Figures forconsumption 1996 and1997 areestimates.
6Only ryeforfeedpurposes.G/SCM/N/25/NOR
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TABLE 10
Meat (1,000 tons)7
Year Production Imports Exports Consumption
Beefandveal
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 5.2 1.7 89.2
1997 85.8 4.1 1.7 89.8
Mutton
1993 25.2 0.3 0.5 25.7
1994 25.8 0.5 0.0 24.9
1995 26.1 0.7 0.0 27.3
1996 26.6 0.3 0.0 23.8
1997 26.1 0.1 0.0 24.5
Pork
1993 89.8 5.1 2.8 93.4
1994 90.8 5.5 0.4 96.5
1995 95.6 6.3 0.2 101.3
1996 102.8 5.1 0.6 105.0
1997 105.5 4.2 2.0 105.7
Poultry meat
1993 22.8 0.3 0.0 24.2
1994 25.6 0.4 0.1 27.1
1995 28.6 1.3 0.1 29.1
1996 32.4 0.2 0.0 30.6
1997 34.7 0.0 0.0 32.1
7Production +Import -Export maydiffer from consumption figures duetochanges instocks.G/SCM/N/25/NOR
Page16
Year Production Imports Exports Consumption
Eggs
1993 51.3 0.1 2.9 47.6
1994 51.5 0.0 2.2 48.1
1995 49.3 0.1 1.7 47.0
1996 49.3 0.4 1.6 47.0
1997 48.4 0.5 0.7 46.9
Sources:
Budget Committee forAgriculture
Norwegian Grain Corporation
External Trade 1996, Statistics Norway 1997
Proposition No.72(1995-1996) totheStorting bytheMinistry ofGovernment Administration
Proposition No.70(1996-1997) totheStorting bytheMinistry ofGovernment Administration
Proposition No.1(1996-1997) totheStorting bytheMinistry ofAgriculture.