RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/138 
13 September 2004  
 
(04-3667) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
NORWAY 
 
Report by the Secretariat 
 
  
 
This report, prepared for the fourth Tr ade Policy Review of Norway, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from the Government of Norway on its trade 
policies and practices. 
 
Any technical questions arising from this report may be addressed to Mr. 
Arne Klau (tel:  022/739 57 06;  fax:  022/739 57 65) and Mr. Jacques Degbelo 
(tel:  022/739 55 83). 
 
Document WT/TPR/G/138 contains the policy statement submitted by the 
Government of Norway. 
 
 
 
Note: This report is subject to restricted circul ation and press embargo until the end of the meeting 
of the Trade Policy Review Body on Norway. Norway WT/TPR/S/138 
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CONTENTS 
Page 
SUMMARY OBSERVATIONS vii 
(1) T HE ECONOMIC ENVIRONMENT  vii 
(2) I NSTITUTIONAL FRAMEWORK  vii 
(3) T RADE POLICY INSTRUMENTS  viii 
(4) S ECTORAL POLICIES  ix 
(5) T RADE POLICY AND TRADING PARTNERS  x 
I. ECONOMIC ENVIRONMENT 1 
(1) M AJOR FEATURES OF THE ECONOMY  1 
(2) R ECENT ECONOMIC DEVELOPMENTS  2 
(3) D EVELOPMENTS IN TRADE AND INVESTMENT  6 
(i) Trade in goods and services 6 (ii) Foreign direct investment 10 
(4) O
UTLOOK  11 
II. TRADE AND INVESTMENT REGIMES 12 
(1) I NSTITUTIONAL FRAMEWORK , AND TRADE POLICY FORMULATION AND  
IMPLEMENTATION  12 
(2) T RADE POLICY OBJECTIVES  13 
(3) M AIN TRADE LAWS AND REGULATIONS  13 
 (4) I NVESTMENT REGIME  14 
(5) T RADE AGREEMENTS  15 
(i) World Trade Organization 15 
(ii) Preferential tr ade agreements 17 
(iii) Generalized System of Preferences (GSP) 23 
III. TRADE POLICIES AND PRACTICES BY MEASURE 24 
(1) O VERVIEW  24 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  24 
(i) Documentation, and customs procedures and valuation 24 
(ii) Rules of origin 26 (iii) Tariffs 27 
(iv) Other taxes and charges 33 
(v) Import prohibitions, restrictions, and licensing 36 (vi) Contingency trade remedies 39 
(vii) Standards and other technical requirements 41 
(viii) Other measures 43 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  44 
(i) Registration and documentation 44 
(ii) Export taxes, charges, and levies 44 
(iii) Export prohibitions, re strictions, and licensing 44 WT/TPR/S/138 Trade Policy Review 
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Page 
(iv) Export subsidies, and duty and tax concessions for exports 45 
(v) Export finance, insurance, and guarantees 46 
 (vi) Export promotion and marketing assistance 47 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  47 
(i) Incentives 47 
(ii) Competition policy and price controls 54 (iii) Government procurement 55 
(iv) State-owned enterprises and privatization 58 
(v) Intellectual property rights 61 
IV. TRADE POLICIES BY SECTOR 69 
(1) I
NTRODUCTION  69 
(2) A GRICULTURE  70 
(i) Main features 70 
(ii) Policy developments 72 
(iii) Policies by group of products 78 
(3) F ORESTRY , WOOD, AND PAPER PRODUCTS  80 
(4) F ISHING AND AQUACULTURE  82 
(i) Main features 82 
(ii) Policy developments 83 
(5) M INING AND QUARRYING  87 
(6) E NERGY   88 
(i) Hydrocarbon 88 
(ii) Electricity 91 
(7) M ANUFACTURING  92 
(i) Main features and policy framework 92 
(ii) Selected manufacturing activities 93 
(8) S ERVICES  94 
(i) Overview 94 
(ii) Financial services 96 (iii) Telecommunication and postal services 99 
(iv) Transport 101 
(v) Tourism 105 
REFERENCES   107 
APPENDIX TABLES  109 
 
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CHARTS 
Page 
I. ECONOMIC ENVIRONMENT 
I.1 Structure of Norway's merchandise trade, 1998-03 8 
I.2 Direction of Norway's merchandise trade, 1998-03 9 
III. TRADE POLICIES AND PRACTICES BY MEASURES 
III.1 Applied MFN tariff distribution, 2004 28 
III.2 Tariff escalation by ISIC 2-digit, 2004 30 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1 Basic macroeconomic indicators, 1998-03 3 
I.2 Fiscal budget (including social security) and State Petroleum Fund before loan  
 transactions, 2002-04 5 I.3 Balance of payments, 1998-03 6 
I.4 Foreign direct investment by country, 1999-03 10 
I.5 Foreign direct investment by sector, 1999-03 10 
II. TRADE AND INVESTMENT REGIMES  
II.1 Main trade-related laws and regulations, May 2004  14 
II.2 Norway's notifications under the WTO Agreements, April 2004 16 
III. TRADE POLICIES AND PRACTICES BY MEASURES 
III.1 Overview of MFN tariffs in Norway, 2004 27 
III.2 Norway's MFN tariff structure, 2004 29 
III.3 Average tariffs under Norway's preferential agreements, 2004 31 
III.4 Government revenue from duties and main excise taxes, 1999-03 33 III.5 Main excise duties, 2004 34 
III.6 Types and scope of quantitative import restrictions, 2003/2004 36 
III.7 Tariff quotas applied by Norway in 2004 37 III.8 Notifications by Norway to the WTO Comm ittee on Technical Barriers to Trade, 2000-03 41 
III.9 Industry-wide and selected sector-specific support programmes, 2002 48 
III.10 Cases handled by the Norwegian Competition Authority, 2000-03 55 III.11 Government procurement statistics, 2001 58 
III.12 Main state-owned enterprises, May 2004 59 
III.13 Privatization of state-owned enterprises, 1999-03 60 III.14 Overview of IPR protection provided by Norway's legislation, 2004 62 
III.15 Patent, design and trade mark applications, 1998-03 64 
IV. TRADE POLICIES BY SECTORS  IV.1 Gross domestic product and value added by industry at current prices, 2000-03 69 
IV.2 Value of agricultural production, 1999-01 71 
IV.3 Number of farms, farm size, and employment in agriculture, 1999-02 71 
IV.4 Tariff quotas and total imports for pr oducts under minimum access commitment, 2002-03 73 WT/TPR/S/138 Trade Policy Review 
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Page 
IV.5 Export subsidies, 1999-03 75 
IV.6 Product-specific Aggregate Measur ement of Support (AMS), 1999-01  75 
IV.7 Support to the agriculture sector, 2000-03 76 IV.8 Measures exempt from the reduction commitment, 1999-01 77 
IV.9 Target price for wheat and feed grain  79 
IV.10 Assistance to the forestry subsector, 1997-02 81 IV.11 Quantity of catch by fish species, 1995-03 82 
IV.12 TAC allocations, 2002 and 2003 85 
IV.13 Transfers associated with No rway's fishery policies, 1998-03 87 
IV.14 Oil and gas sector, key indicators, 1997-03 89 
IV.15 Overview of  Norway's GATS MFN exemptions 95 
IV.16 Telecommunications basic indicators, 1997-03 99 IV.17 International trade vessels registered in Norway, 1997-03 102 
IV.18 Civil aviation statistics, 1994-03 104 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT 
AI.1 Exports by product, 1998-03 111 
AI.2 Imports by product, 1998-03 112 
AI.3 Destination of exports, 1998-03 113 
AI.4 Origin of imports, 1998-03 114 
III. TRADE POLICIES AND PRACTICES BY MEASURES 
AIII.1 Seasonal tariffs, 2004 115 
AIII.2 Applied MFN tariff structure by HS2, 2004 118 AIII.3 Bound tariff structure by HS2, 2004 122 
IV. TRADE POLICIES BY SECTORS  
AIV.1 Summary of Norway's specific commitments in indi vidual service sectors 126 
 
 
 
 
 Norway WT/TPR/S/138 
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SUMMARY OBSERVATIONS 
 (1) T
HE ECONOMIC ENVIRONMENT  
1. Norway's adoption of the 2002-05 
Long-Term Programme and the 
implementation of structural reforms, as well as accelerating world demand and low interests rates helped its recovery from its economic slowdown in the second half of 
2003.  Moreover, in 2001, Norway further 
reformed its monetary and fiscal policy frameworks by setting a low and stable inflation target of 2.5% and new fiscal policy guidelines.  Norway saves its "oil-boosted fiscal income" in a State Petroleum Fund 
(SPF), which invests in foreign bonds and 
other securities.  Intended as a reserve for future expenditures, and  not earmarked for 
any special purpose, the SPF helps Norway to weather fluctuations in the oil subsector, and 
(in recent years) to contain the public deficit.    
2. Although real GDP growth slowed 
from 2.8% in 2000 to 0.4% in 2003 (led by a fall in gross fixed capital formation and the slowdown of world demand), Norway's performance in other macroeconomic 
indicators has been good since its last TPR in 
2000:  inflation and unemployment have generally remained lo w, interest rates have 
been falling, and Norway's current account has shown strong surpluses.  
3. Norway's services sector remains the 
backbone of its economy, with a GDP share of over 56%.  Norway's services balance on external account has posted an increasing surplus since 2000, with shipping services 
being the single most important exported 
service.  Norway is the world's third largest exporter of oil.  Crude petroleum and natural gas (more than 17% of GDP in 2003) remain Norway's most important export products;  together they accounted for 60% of 
merchandise exports in 2003, but this share 
has fluctuated significantly over the years.  Manufactured goods (around 9% of GDP) and fish account for about 20% and 4% of merchandise exports r espectively.  The 
contribution of agriculture (excluding fisheries) to GDP and merchandise exports is 
negligible.  Norway's imports are dominated by manufactured goods.  Its main trading partners are the members of the European 
Union, most notably Germany, Sweden, and 
the United Kingdom.  Norway's direct aid to developing countries continues to represent some 0.9% of its GDP. 
(2) I
NSTITUTIONAL FRAMEWORK  
4. Norway is an original Member of the 
WTO, and accords at least MFN treatment to all its trading partners.  Since its last TPR, Norway has maintained broadly unchanged its overall institutional framework for trade policy formulation, with the Ministry of 
Foreign Affairs having overall responsibility 
in this regard.  Trade liberalization in Norway follows several tracks:  multilateral;  regional (Norway's membership of the EEA);  reciprocal (through bilateral agreements with 
other trading partners negotiated under 
EFTA);  and non-reciprocal (through Norway's preferential schemes for developing and least developed countries).  Since Norway's last TPR, changes in trade-related legislation have been driven mainly by a 
combination of autonomo us policy initiatives 
and the need to comply with EEA commitments.   
5. In the context of the Doha 
Development Agenda, Norway seeks 
improvements in market access for non-
agricultural products through a comprehensive reduction in tariffs and the dismantling of quantitative restrictions;  stronger disciplines in the area of anti-
dumping measures in order to eliminate trade 
distortions resulting from their use;  further liberalization of the services sector;  and the elimination of fisheries subsidies that lead to increased fishing capacity.  It is of the view that non-trade concerns have to be taken into 
account in the context of agriculture 
liberalization.  Since its last TPR in 2000, Norway has been a complainant in one WTO dispute, and a third party to five others.   WT/TPR/S/138 Trade Policy Review 
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6. Norway is a founding member of 
EFTA and the European Economic Area (EEA).  The EEA Agreement provides principally for freedom of movement of goods, 
persons, services, and capital.  However, trade 
in agriculture and fisheries has been liberalized only to a limited extent under the Agreement.  Through its membership of EFTA, Norway is part of an expanding network of 
free-trade agreements.  Since Norway's 
previous TPR, EFTA has concluded bilateral free-trade agreements with Croatia, Chile, Jordan, the Former Yugoslav Republic of Macedonia, Mexico, and Singapore.  In addition, EFTA has preferential agreements 
with Bulgaria, Croatia, Israel, Morocco, the 
Palestinian Authority, Romania, and Turkey.  In general, the preferen tial margins of these 
agreements tend to be low, as Norway has liberalized its trade in most non-agricultural 
products.  
7. Norway's investment regime is liberal.  
However, nationality restrictions exist with respect to activities and ownership in the fishing and maritime transport subsectors.  Since Norway´s last TPR in 2000, the 
Government has taken a number of measures 
to improve the investment environment, most notably, the abolition of specific reporting requirements for investors owning more than certain thresholds of a company's share 
capital, and of the investment tax of 7% that 
applied to purchases of business assets.   
(3) T
RADE POLICY INSTRUMENTS  
8. Norway's trade policy regime remains 
generally open, with the principal exception of 
agriculture.  Its average applied MFN tariff 
has fallen from 8.1% in 2000 to 7.2% in 2004, with rates ranging up to 2,356% (an ad valorem equivalent (AVE)) on meat offal.  While tariffs on agricultural goods (WTO definition) remain high, with an average rate 
of 38.2%, the average MFN tariff on non-
agricultural products is 0.9%.  In July 2002, Norway reduced its MFN tariffs on a number of non-agricultural products to zero.  These cuts, combined with tariff reductions 
undertaken in previous years, mean that some 94% of industrial tariff lines (84% of all lines) 
are currently duty free.  Some limited liberalization of trade in agricultural products has also taken place (on a reciprocal basis), 
both in the EEA context and under free-trade 
agreements concluded under EFTA.  Norway has bound all its tariff lines;  the average bound rate is 29.5%, with rates ranging from 0% to 2,356% (an AVE).  
9. Norway expanded its GSP scheme in 
2000 by extending product coverage and simplifying rules of origin requirements, and on 1 July 2002 extended duty-free and quota-free market access for all products originating in least-developed countries.  Thus, the zero 
rate applies to all imports from LDCs, while 
the average tariff on imports from ordinary, non-LDC beneficiaries is 5.5%. 
10. Internal indirect taxes remain 
relatively high, with the normal rate of VAT at 
24%.  Although these taxes apply equally to 
imports and locally produced goods, for a number of products (motor vehicles, alcoholic beverages, tobacco) they fall mainly on imports, since there is no substantial domestic production.  A food production tax and 
inspection fees are levied at varied rates.   
11. Norway has not carried out any anti-
dumping or countervailing investigations since its last TPR, nor has it taken, maintained or initiated any safeguard measures.  Most 
Norwegian standards and technical 
regulations follow those of the EU.  On food safety, Norway attaches great importance to maintaining a high level of safety at all levels of the food chain.  
12. Import prohibitions maintained by 
Norway are generally based on international conventions.  Norway requires import licences for surveillance and quota management purposes. Non-automatic licences are maintained to administer 60 tariff quotas on 
agricultural products, including minimum 
access quotas, other global quotas, and bilateral quotas.  Effective 1 January 2001, Norway eliminated quantitative import restrictions on fishing nets, its last remaining Norway WT/TPR/S/138 
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restriction on imports of textile products under 
the WTO Agreement on Textiles and Clothing.   
13. Norway requires export licences for 
arms and other strategic goods and minke 
whale products.  Exports of fish and fish 
products are subject to a levy that varies from 0.25% to 1.05% of the value depending on the product.  For a number of agricultural products, Norway continues to grant 
substantial export subsidies, although outlays 
declined by more than 45% between 1998 and 2003.  The 2003 Producer Support Estimate was 72%.  Apart from agriculture, industry-specific assistance is also available to the fishery, forestry, and ship-building subsectors. 
Sector-specific support is also dispensed, 
along with more generic support, in the context of regional support schemes, with the objective of promoting economic activity in remote areas. 
14. Since its last TPR, Norway has 
renewed its legislation on public procurement.  Its regime does not discriminate against EEA members and parties to the WTO Government 
Procurement Agreement.  State ownership remains extensive in the economy, although 
some limited privatizations (mainly of Statoil 
and Telnor, the leading companies in the oil and telecommunication subsectors) have taken place since 2000.  In May 2004, a new Competition Act entere d into force, with 
expanded definitions of and stronger measures 
against anti-competitive conduct.  Norway also amended its legislation on intellectual property rights, with a view to fully complying with its international obl igations in this area. 
(4) S
ECTORAL POLICIES  
15. Agriculture (less than 1% of GDP) 
remains the most tariff-protected sector.  Border protection is compounded by a complex system of ext ensive domestic support 
(more than two thirds of all budgeted state 
support).  Tariff quotas apply to "sensitive" 
products, mainly goods covered by Norway's minimum access commitments under the WTO Agreement on Agriculture.  As a result of high border protection, consumer prices for agricultural products are higher in Norway 
than in neighbouring countries.  Outlays for agricultural export subsidies have decreased significantly since Norway's last TPR but they 
remain substantial for dairy products.  The 
contribution of forestry and fisheries to GDP is low and has further fallen since Norway´s last TPR, as has state support for both subsectors. 
16. The production of petroleum and 
natural gas remains the single most important activity in the Norwegi an economy.  The share 
of oil and gas extraction in GDP has fluctuated between 17% and 23%, mainly due to oil price variations.  Although the 
hydrocarbons subsector is open to foreign 
companies and some limited privatization has taken place, public ownership remains substantial.  The share of petroleum and petroleum products in Norway's exports has 
ranged between 43% and 63% in recent years.  
Norway's manufacturing sector contributes about 9% to GDP.  Imports of a large category of manufactured products are duty free;  processed agricultural products and textiles are the most tariff protected goods in 
the sector.   
17. The services sector is, by far, the most 
important contributor to Norway's GDP and 
employment.  New legislation on telecommunications has entered into force 
since Norway's last TPR, and ownership 
restrictions in financial services have been relaxed.  Although the State has reduced its shares in a number of enterprises, state ownership in the services sector remains 
substantial, particularly in financial services 
and telecommunications.  Norway has made specific commitments under the GATS in all service categories except health-related and social services.  Norway's initial offer in the services negotiations provides for an expansion 
of its schedule of horizont al as well as sector-
specific commitments.  Most of these proposed commitments have already been implemented at 
the EEA level.     WT/TPR/S/138 Trade Policy Review 
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(5) T RADE POLICY AND TRADING 
 P ARTNERS  
18. Norway has a long-standing 
commitment to the multilateral trading system, 
and participates actively in various free-trade 
agreements.  It has been instrumental in advancing the Doha Development Agenda by tabling proposals in several areas, and is also an important donor for WTO technical 
assistance activities. 
19. The Norwegian market is generally 
open to non-agricultura l products, which are 
largely imported duty free.  Continued structural reforms, including privatization, and further tariff reductions in agriculture 
would contribute to better resource allocationin the Norwegian economy.  Improvements of 
Norway's multilateral commitments, both on goods and services, would increase the predictability for trade regime.  Moreover, the 
move to ad valorem tariffs would stabilize the 
level of tariff protection for its agriculture, where fluctuation of import prices (in NKr) has raised the ad valorem equivalents of duties on certain products to levels up to 2,356%. 
20. Norway's internal tax system on 
agricultural products (v arious inspection and 
control levies and taxes) is complex;  it would gain in transparency if reforms were implemented, taking into account Norway's WTO commitment on other duties and charges 
bound at zero, and the GATT 1994 provision 
on national treatment.