WORLD TRADE
ORGANIZATIONG/SCM/N/71/NOR/Suppl.1
30 August 2002
(02-4645)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
NORWAY
Supplement
The following communication, dated 28 August 2002, has been received from the
Permanent Mission of Norway.
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Revised text to the New and Full Noti fication of Norway – G/SCM/N/71/NOR
The text below contains revised editions of chapters 3.1 and 4.1 of the original text of the
New and Full Notification of Norway submitted on 17 June 2002.
3.1 Enterprise and Economic Development in the Regions (Ch. 2425)
NB. Formerly chapter 3.1 Regional Development Grant and 3.2 Regional Grant for
Development of Business and Industry is now notified under the new Enterprise and Industrial
Development in the Regions (Ch. 2425) .  From 2002, the scheme also includes loans in addition to
grants.
1. The authority responsible for the subsidy
The Ministry of Local Government and Regional Development through the Norwegian
Industrial and Regional Development F und (SND) and 16 county municipalities.
2. The legislation under which it is granted
Act No. 97 of July 1992.Regulation of January 1999 on "Regional measures administered by the Norwegian Industrial
and Regional Development Fund and the county municipalities".
Regulation of January 2000 on areas eligible for regional aid.The annual State budget.G/SCM/N/71/NOR/Suppl.1
Page 2
3. Policy objective of the subsidy
Regional aid; job creation, contribute to develop permanent and profitable business in areas
with special employment problems or a low level of economic activity.
4. Forms of subsidy
Grants and loans.Loan is provided at an interest rate that covers the funding and administration costs.  For the
time being, the interest rate varies between 9.9% to 10.9%.  Allocations to cover possible losses aremade in the annual budget of the scheme.
5. To whom and how the subsidy is granted
Enterprises located in the assisted areas.  SMEs are given priority.The scheme is available for enterprises in all sectors except primary production in agriculture
and forestry which receives current state aid, insurance, bank and finance, oil and gas exploration,
public administration and public commercial enterprises.
Grants and loans may be provided for the following purposes:
• Tangible investments in fixed assets .  Eligible costs: construction or purchase of buildings and
purchase of machinery, equipment a.s.o.
• R&D.   Eligible costs: personnel costs, costs of  instruments and equipment, consultancy and
equivalent services, overheads and other operating expenses incurred directly as a result of the
research activity.
• Consultancy services and dissemination of knowledge  ("soft aid").  Eligible costs: consultancy
costs to new and established SMEs to upgrade the competence of the enterprise in fields asmanagement, new technology, pollution control and for the purpose of assessing the feasibility
of new ventures.
• Training .  Eligible costs: instructors personnel costs, instructors and trainees' travel expenses,
other current expenses, cost of guidance and counselling services and trainees' personnel costs
limited to the total of the other eligible costs.
• Other purposes .  Over a three-year period firms, irrespective of the size of the firm, may
receive up to 100,000 Euros covering project costs with exception of costs related to exportactivities.
The assisted area is divided into three zones (A, B and C).  The maximum intensity of aid for
the different purposes listed above are:
• Fixed assets:   In zone A, 25 per cent of the eligible costs and SMEs may obtain additional
5 percentage points; in zone B, 20 per cent and SMEs may obtain in addition 5 percentage
points; and in zone C, 10 per cent and SMEs may obtain additional 10 percentage points.  The
maximum intensity of aid to shipbuilding is 12.5 per cent in all zones.
• R&D:  30 per cent of the eligible costs in all zones.  SMEs may obtain an additional grant of
10 percentage points.
• Consultancy services and dissemination of knowledge:   50 per cent of eligible costs in all
zones and is confined to SMEs (max. 250 employees is one of three criteria).G/SCM/N/71/NOR/Suppl.1
Page 3
• Training:   Specific training  (tuition directly and principally applicable to the employees'
present or future position in the assisted firm).  In all zones 30 per cent of eligible costs andSMEs may obtain additional 10 percentage points.
• General training (tuition which is not applicable only or principally to the employee's present
or future position in the assisted firm):  In all three zones 55 per cent of the eligible costs andSMEs may obtain in addition 20 percentage points.
The aid element of risk loan is calculated taking  into account the potential risk for loss of the
project supported, the rate of interest paid compared with reference rate of interest and the term of the
loan.
6. Amount of subsidy
Total payment in 2000 NOK 756.2 million.The budget of 2002 NOK 773.5 million of which one part will be provided as grants and the
other part allocated to cover possible losses.
7. Duration of the subsidy
Starting date:  1971 and changed several times since then.  Duration has not been specified.
8. Trade effects of the subsidy
Information on the trade effects of the scheme is not available.
4.1 National Innovation Scheme
NB.  From 2002, the former Development Grants has changed to National Innovation
Scheme , it provides in addition to grants also loans and guarantees.
1. The authority responsible for the subsidy
The Ministry of Trade and Industry through the Norwegian Industrial and Regional
Development Fund (SND).
2. Legislation under which the subsidy is granted
Act No. 97 of 3 July 1992 on SND.
• Letter from the Ministry of Industry and Energy to the SND of 21 February 1995 – Guidelines
for the nationwide aid instruments of the No rwegian Industrial and Regional Development
Fund (SND) "Retningslinjer for Statens nœring s – og distriktsutviklingsfonds landsdekkende
virkemidler".
• (New:  Guidelines for the Development Grant, approved by the Ministry of Trade and
Industry, 20 October 2000.)
• The annual State budget.G/SCM/N/71/NOR/Suppl.1
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3. Policy objective of the subsidy
To give assistance to enterprises, and to improve the efficiency of the industry.
4. Forms of subsidy
Grant, loan and guarantee.Loan is provided at an interest rate that covers the funding and administration costs.  For the
time being, the interest rate varies between 9.9% to 10.9%.  A guarantee is usually limited to 50 per
cent of the loan with a guarantee fee of 1 per cent.  Allocations to cover possible losses on loans and
guarantees are made in the annual budget of the scheme.
5. To whom and how the subsidy is granted
The scheme is primarily intended for SMEs.  It is available for all sectors except for
insurance, banking and finance, shipping, oil and gas exploration, public administration and publicsector commercial enterprises.
Grants, loans and guarantees may be provided for following purposes:
• Tangible investments in fixed assets .  Eligible costs: construction or purchase of buildings and
purchase of machinery, equipment a.s.o.
• R&D.   Eligible costs: personnel costs, costs of  instruments and equipment, consultancy and
equivalent services, overheads and other operating expenses incurred directly as a result of theresearch activity.
• Consultancy services and dissemination of knowledge  ("soft aid").  Eligible costs: consultancy
costs to new and established SMEs to upgrade the competence of the enterprise in fields asmanagement, new technology, pollution control and for the purpose of assessing the feasibility
of new ventures.
• Training .  Eligible costs: instructors personnel costs, instructors and trainees' travel expenses,
other current expenses, cost of guidance and counselling services and trainees' personnel costslimited to the total of the other eligible costs.
• Other purposes .  Over a three-year period firms, irrespective of the size of the firm, may
receive up to 100,000 Euros covering project costs with exception of costs related to exportactivities.
The maximum intensity of aid for the different purposes listed above are:
• Fixed assets:   7.5 per cent of the eligible costs to SMEs (max. 250 employees is one out of
three criteria) and small enterprises (max. 50 employees is one of out three criteria) may obtainin addition 7.5 percentage points.
• R&D:  25 per cent of the eligible costs and SMEs may obtain in addition a grant of
10 percentage points.
• Consultancy services and dissemination of knowledge:   50 per cent of eligible costs in zones
A, B and C and is confined to SMEs (max. 250 employees is one of three criteria).
• Training:   Specific training  (tuition directly and principally applicable to the employees'
present or future position in the assisted firm).  25 per cent of the eligible costs and SMEs may
obtain in addition 10 percentage points.
• General training (tuition which is not applicable only or principally to the employee's project
present or future position in the assisted firm): 50 per cent of the eligible costs and SMEs may
obtain in addition 20 percentage points.G/SCM/N/71/NOR/Suppl.1
Page 5
The aid element of risk loan and guarantee is calculated taking into account the potential risk
for loss of the project supported, the rate of interest  paid compared with reference rate of interest and
the term of the loan.
6. Amount of the subsidy
Total payment in 2000: NOK 175 million.
The budget of 2002 NOK 89 million of which one part will be provided as grants and the
other part allocated to cover possible losses on loans and guarantees.
7. Duration of the subsidy
Starting date:  1 January 1993 with a few changes since then.  Duration has not been
specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors.  Statistical data showing the trade
effects are not available.
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