WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/269 
21 August 2012  
 
(12-4470) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
NORWAY 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Norway is attached. 
 
 
Note: This report is subject to restricted ci rculation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Norway. Norway WT/TPR/G/269 
 Page 3 
 
 
CONTENTS 
 
    Page 
I.  INTRODUCTION 5 
II. THE  ECONOMIC  ENVIRONMENT 5 
 (1) T HE FINANCIAL CRISIS  5 
 (2) E CONOMIC GROWTH  6 
 (3) E CONOMIC POLICIES  6 
 (4) S TATE OWNERSHIP  7 
 (5) E XPORT FINANCING  8 
 (6) L ABOUR MARKET AND MIGRATION  8 
III. TRADE  POLICY  DEVELOPMENT 9 
 (1) F ACTS ON NORWAY 'S TRADE  9 
 (2) T RADE POLICY  10 
  (i) The European Economic Area (EEA) 11 
  (ii) Free Trade Agreements 12   (iii) Generalized System of Preferences 13 
  (iv) Aid for Trade 14 
IV. CONCLUSION  14 
 
 Norway WT/TPR/G/269 
 Page 5 
 
 
I. INTRODUCTION 
1. Norway's trade policy is an inseparable pa rt of its economic and foreign policies.  
2. Throughout history Norway has depended on the exchange of goods, services, capital, 
technology and labour with the outside world. Openn ess to trade is a fundamental prerequisite for our 
economic development and welfare.  
3. The Government's trade and economic polic y is designed to promote sustainable 
development; in economic, social and environmental terms. While openness to trade is necessary, it is 
not a sufficient condition for inclusive growth, job creation, and overall prosperity. Trade policy and other elements of economic, social and structural policies are integral parts of a totality of government 
policies that not only stimulates growth and secures jobs, but also ensures decent working conditions 
and an equitable distribution of the benefits of tr ade and economic growth to its population. Similarly, 
the Government is committed to pursuing trade and environmental policies – including policies 
related to climate change – th at are mutually supportive.  
4. Being a relatively small country with a mi ddle-sized economy, Norway is dependent on a 
level playing field in international markets and a predictable trading environment. Norway has a 
fundamental interest in a strong multilateral system with clear rules that minimizes the opportunity for 
misuse and provides maximum transparency, as well as an efficient dispute settlement system.  
5. Openness to trade is not only essential for Norway , but also of key importance for social and 
economic development at the global level. Hence, No rway attaches great importance to the integration 
of developing countries, and in particular th e poorest countries, into the world economy and the 
multilateral trading system.  
6. Chapter II of this report gives a brief descripti on of the Norwegian economic environment. In 
Chapter III, the Government sets out the broad lin es of Norway's trade policy and its development 
since the last Trade Policy Review in 2008.  
II. THE ECONOMIC ENVIRONMENT 
(1) T
HE FINANCIAL CRISIS  
7. While the Norwegian economy was affected by the financial crisis and global recession 
from 2008 onwards, the economic downturn and problem s in the financial sector have been less 
severe than in many other countries. The Norwegia n business structure helped shield the Norwegian 
economy from the large drop in global demand. Ma nufacturing production is relatively small as a 
share of mainland GDP. Furthermore, both the service sector and the manufacturing sector profited 
from continued high activity and demand from the pe troleum sector. Norway also has a large public 
sector and well-developed social safety nets, which contributed to stabilizing the economy.  
Furthermore, the solid financial situation of the Norwegian state has most likely strengthened 
confidence among households, businesses and par ticipants in financial markets.  
8. The development of financial market regulati on and supervision in Norway has to a large 
extent been based on experiences gained du ring Norway's banking crisis in 1988-1993. 
Comprehensive and consistent regulation has been est ablished across all relevant parts of the financial 
sector.  
9. A series of measures to improve banks' access to  liquidity were introduced during the crisis 
in 2008, both to help maintain banks' lending activities and to prevent solvent banks from having WT/TPR/G/269 Trade Policy Review 
Page 6 
  
payment problems. Among other measures, Norges Bank (the central bank) injected large amounts of 
liquidity into the banking system, extended the matu rity of liquidity and temporarily eased collateral 
requirements for loans. The government established an arrangement in which banks could obtain 
government securities in exchange for covered bonds. Ba nks that participated in the arrangement were 
able to obtain financing directly through the sale of the government securities or by borrowing in the 
market using the government securities as collateral.  In addition the Government Finance Fund was 
created to better place Norwegian banks in a pos ition to maintain normal lending activities, by 
offering solvent banks core capital. To contribut e to an increased supply of liquidity and capital 
inflow to the Norwegian credit bond market, the Government Bond Fund was established 
in March 2009.  
10. Overall, a stable macroeconomic environment, sound financial market regulation and targeted 
policy measures were key factors contributing to the stabilisation of the financial markets and the real 
economy. While Norway's mainland GDP1 contracted by 1.8% in 2009, it rebounded to growth the 
following year and has since then remained on a positive growth trajectory. 
(2) ECONOMIC GROWTH  
11. In recent years, rapidly increasing demand fro m Asian emerging economies has pushed up the 
price of crude oil and other major Norwegian expor t products such as metals and refined oil products. 
This has contributed to a significant improvement in Norway's terms of trade. In the period 2003-2011 
the terms of trade improved by an annual average of almost 5%.  
12. The favourable development in the terms of tr ade has helped maintain  the profitability of 
Norwegian export firms despite Norway's particularly  high cost level. For several years wage growth 
in Norway has been high in an international cont ext. The high cost level makes many export firms 
vulnerable to a decline in product prices, continue d high wage growth and a strong national currency 
(NKr). At end-May 2012 the NKr, measured by the trade-weighted exchange rate index (TWI), was 
about 4¼% stronger than the average level of the past 5 years.  
13. High income from the petroleum sector has cont ributed to considerable surpluses in the 
current account balance for several years. The surplu s was close to NKr 400 billion in 2011, or about 
15% of GDP.  
14. Following the comparatively swift rebound from  the global financial crisis mainland GDP 
grew by 1.9% in 2010 and by 2.4% in 2011. Economic activity in Norway has held up well into 2012. Mainland GDP in 2012 is forecast to grow by 2¾%,  on par with the average of the last 40 years. 
Growth in private consumption is high. Activity in the business sector is high, especially in the 
petroleum subcontracting sector. Employment has increas ed since the spring of 2010, and is expected 
to climb further. Unemployment is forecast to remain at 3¼% of the labour force this year. 
(3) E
CONOMIC POLICIES  
15. The Norwegian Fiscal Policy Guidelines, intr oduced in 2001, aim at a smooth, gradual 
increase in expenditure of petroleum revenues to a level that can be sustained over time. The basic 
principle states that the use of petroleum revenues, should over time be in line with the expected real 
return on the Government Pension Fund Global (GPFG), estimated at 4%. At the same time, the 
spending of petroleum revenues for a particular year  must be adjusted to current economic conditions. 
The fiscal rule provides flexibility for using fi scal policy to stabilise the economy over the business 
                                                      
1 Mainland GDP includes all domestic production ac tivity except from exploration of crude oil and 
natural gas, services incidental to oil and ga s, transport via pipelines and ocean transport. Norway WT/TPR/G/269 
 Page 7 
 
 
cycle. The Government made use of this flexibility  in 2009, when the use of petroleum revenues was 
increased rapidly to a level above the 4% path in or der to mitigate the effects of the global recession 
on the Norwegian economy. In 2011 and 2012 the use of petroleum revenues has again been brought below the 4% path.  
16. Over the past decades, demographic changes in Norway have had relatively benign effects on 
public finances, with an increase in the working- age population and a small decline in the share of 
older persons in the population. This trend has now  changed, and the share of older persons in the 
population is set to rise rapidly in the years to co me. At the same time, the pace of growth of the 
GPFG will gradually slow. In the coming years, e xpenditures on pensions, health services and care of 
the elderly will grow faster than the expected return on the fund. 
17. As of 31 March 2012 the value of G PFG assets was NKr 3,496 billion (approx. 
US$612 billion). The Fund is estimated to pass the 4 trillion mark some time in 2014 and the 5 trillion 
mark by 2018. 
18. In the revised 2012 Budget, the Government em phasises the need for fiscal constraint to 
reduce the pressure on the exchange rate and in dustries facing international competition. The 
Government proposed a strengthening of the b udget balance and the use of petroleum revenues 
further below the 4% path of  the Fiscal Policy Guidelines. 
19. The monetary policy regulation of 2001 stipulat es a flexible inflation targeting regime for 
monetary policy. The long term role of monetary  policy is to provide the economy with a nominal 
anchor. In the short and medium term, monetary policy shall balance the n eed for low and stable 
inflation against the outlook for output and employment. The operational target for the 
implementation of monetary policy is defined as an  annual increase in consumer prices of close to 
2.5% over time. To mitigate the effect of the fina ncial crisis on the Norwegian economy, the central 
bank reduced its key policy interest rate from 5.75 % in October 2008 to 1.25% in June 2009. The 
interest rate has since been kept at a low level. As of 30 June 2012 the key policy rate is at 1.5%. 
(4) S
TATE OWNERSHIP  
20. Compared to many countries at similar level of  development, the Norwegian state is highly 
involved in the economy as owner. This is a historic fact that has become even more pronounced over the last 20 – 30 years due primarily to the way the income from the petroleum sector is distributed. A large part of saving in the Norwegian economy takes place through the public sector.  It is estimated 
that the State owned around 37% of the Oslo Stock Exchange capitalisation at the end of 2011.  The 
State is a major shareholder in several of the larg er commercial listed companies. The State acts as an 
active, long-term owner, whose main aim is to contribute to the commercial companies' long-term 
value creation and industrial development.  
21. Government policy is that the extent of stat e ownership should remain at approximately the 
current level. This does not imply that the Gove rnment will not privatise certain companies or 
participate in sensible industrial transactions. D ecisions to buy or sell are taken on a case-by-case 
basis, and usually depend on parliamentary approval .  At present the Government has parliamentary 
approval to decrease state ownership in three companies. 
22. State ownership has undergone a number of reforms since the turn of the century.  The 
Government has organised the management of its ow nership in such a way as to keep the role of 
owner separate from the roles of policymaker, regulator and supervisor.  The Minister of Trade and 
Industry exercises the ownership role in most comme rcial companies where the State is involved, and 
the Ministry's coordinating role in managing owners hip has been strengthened. The State's exercise of WT/TPR/G/269 Trade Policy Review 
Page 8 
  
its ownership is based on generally accepted princi ples for corporate governance, and on the division 
of roles set out in Norwegian company legislation.   Other important issues are corporate governance 
of state-owned entities, expectations concerning CSR, expectations concerning remuneration and 
composition of Board of Directors.  
23. To enhance the transparency of State owne rship the Government will in 2012 publish a new 
version of the document on the Government's Own ership Policy. This document presents the key 
issues in the Governments ownership policy and was first issued in 2007 (www.ownershippolicy.net).  
(5) EXPORT FINANCING  
24. On 12 June 2012 the parliament (Stortinget) approved the establishment of a new state-owned 
company to manage the Norwegian state-funde d export credit scheme, with an initial loan 
commitment of NKr 10 billion.  The company, named Eksportkreditt Norge AS (Export Credit 
Norway), will be organized as a state-owned lim ited liability company and will be established by 
1 July 2012.  The objective is to ensure a robust and competitive export financing scheme for 
Norwegian industry.  
25. Export Credit Norway will provide loans for expor t financing in the form of state-subsidised 
CIRR (commercial interest reference rate) loan s and CIRR-qualified market loans on commercial 
terms. CIRR loans are loans granted to borrowers  on terms compliant with the OECD "Arrangement 
on Officially Supported Export Credits".  CIRR-qualif ied market loans are lo ans priced on market 
terms in compliance with state aid rules of the EEA-agreement.  
(6) LABOUR MARKET AND MIGRATION  
26. Following the enlargement in 2004 of the Eur opean Economic Area ( EEA) to new member 
states of the European Union, labour immigration to Norway has increased steadily. This coincided 
with a prolonged period of economic growth, a hi gh demand for labour and im proving labour market 
conditions until 2008. Labour immigration droppe d in 2009 and then increased in 2010, as the 
unemployment rate stabilized and employment be gan to grow. In 2011 immigration to Norway 
corresponded to a net immigration rate of 1% of the population. Employed resident immigrants and 
workers on short term stay (shorter than six months) accounted for 14% of total employment 
in Norway in the 4th quarter of 2011. 
27. Nationals from EEA countries no longer need a residence permit in Norway, following 
implementation in Norway of the EU directive 2004/38/EC on the right of citizens of the Union and their family members to move and reside freely with in the territory of the Member States. However, 
EEA nationals, with the exception of nationals of th e other Nordic countries, are required to register 
with the police when their stay in  Norway exceeds three months. Tran sitional rules that have applied 
for Bulgarian and Romanian nationals have been lifted.  
28. High demand for labour and a gradual opening up of the labour market through changes in the 
immigration regulations has led to an increase in the number of non-EEA nationals working in 
Norway. According to the new Immigration Act and Immigration Regulations that went into force 
1 January 2010, non-EEA nationals  who intend to work or establish business in Norway must hold a 
residence permit. The immigration act includes provisions that are intended to ease the labour recruitment process. Three groups of workers ma y commence work before the permit is issued: 
employees of international companies, specialists and skilled workers. 
29. Working conditions in Norway ar e generally characterized by high standards. As Norway is 
becoming increasingly integrated with the larger Eu ropean labour market where salary levels and Norway WT/TPR/G/269 
 Page 9 
 
 
working conditions vary considerably between count ries, challenges related to questionable practices 
and social dumping are increasing in certain sectors. Social dumping occurs when foreign workers are 
exposed to sub-standard working conditions and salaries. Combatting social dumping and securing 
decent working conditions is thus a key policy objective.  
30. In a broader context, Norway is concerned th at the current economic downturn may result in a 
global deterioration of working conditions, weakened social protection and an undermining of rights, 
in addition to increased unemployment. Consequently , strengthening efforts to promote decent work 
globally is a Norwegian priority.  
III. TRADE POLICY DEVELOPMENT 
(1) FACTS ON NORWAY 'S TRADE  
31. The global contraction in 2009 reduced dema nd for Norwegian goods and services, and the 
relatively weak GDP growth has dampened the growth  in exports for the past two years. Prices for 
Norwegian export products have, however, developed more favourably  than export volumes so far, 
resulting in an increase in the export value of exports in 2010 and 2011.  
32. Imports shrank in 2009, but have now rebounded to  approximately the same level as before 
the financial crisis. A steadily appreciating NKr h as contributed to weak and in some cases negative 
development in import prices and this has boosted import growth. 
33. Total Norwegian merchandise trade (imports plus exports) in 2011 ended almost 4% below 
the levels reached prior to the fi nancial crisis in 2008. As a proportion of GDP, trade contracted from 
57.4% in 2008 to 48.8% in 2009 before expanding to 49.5% in 2010 and 52.0% in 2011.  During 
2008-11, exports represented on average 60% of to tal trade.  The trade surplus amounted to 
US$66 billion in 2011 (compared to US$78 billi on in 2008).  Although Norway has a highly 
diversified economy with a large services sector, it remains fundamentally dependent on natural 
resources. Norway has historically been a larg e exporter of commodities such as petroleum and 
natural gas, and processed mineral products like alum inium. Crude petroleum and natural gas remain 
Norway's most important export products; together  they accounted for 49.1% of exports in 2011, 
compared to 52.0% in 2008.  Within the food sector, Norway is one of the world's largest exporters of 
fish and fish products, which account for 5.9% of  export revenues, whereas agricultural exports are 
minimal.  The share of exports of manufactures in total exports was 24.1% in 2011.  The main manufacturing exports are aluminium, machinery and transport equipment followed by chemicals. 
34. The composition of imports remains stable.  Close to 85% of Norway's imports were 
manufactured goods in 2011, which represents a sma ll decline with respect to 2008.  Machinery and 
transport equipment is the main sector, with non-el ectrical machinery, automotive products and office 
machines being the top categories. 
35. The direction of Norway's merchandise trade did not change significantly during 2008-11.  
Norway's main trading partners are still the me mbers of the European Communities (EC27), which 
accounted for 81% of exports and 61% of imports  in 2011. The United Kingdom was the main export 
market for Norwegian products with 28% of total exports, followed by the Netherlands, Germany and 
France.  Norwegian exports to both the Americas and Asia grew in value terms; and their shares in 
total exports grew to 8.8% and 6.4% respectively in 2011. 
36. The European Communities' (EC27) share of imports declined over the period under review, 
while the Americas' share was stable at 12%. Asia as a whole gained its market share, with imports WT/TPR/G/269 Trade Policy Review 
Page 10 
  
from China alone increasing from 6.2% in 2006 to 8. 9% in 2011,  making China the third largest 
source of imports to Norway after Sweden and Germany. 
37. Since 2008 Norwegian service exports have grow n faster than service imports measured at 
current prices, strengthening the balance of trad e in services from NKr 2 billion in 2008 to 13 billion 
in 2011. Exports of shipping freight services are in 2011 below the 2008 levels, but the drop in 
shipping income has been offset by growth in petroleum related services, travel (non-residents 
expenditures on travel in Norway) and some other services. Imports of petroleum related services, travel (Norwegians expenditures on travel abroad) and finance and business services are all somewhat 
higher in 2011 compared to 2008, while trans port and communication services and other services are 
at a lower level. 
(2) T
RADE POLICY  
38. Only through international trade can a high standard of living and the demands of the 
Norwegian population and businesses for a diverse suppl y of goods and services be met. More than 
40% of gross domestic product is exported, suffi cient to allow for imports corresponding to around 
30% of GDP.  
39. In order for Norwegian firms to benefit from ec onomies of scale, Norway must participate in 
international markets.  An open tr ading system also allows Norway to better exploit its comparative 
advantage. One of the Government's key priorities is to strengthen the international competitiveness 
of Norwegian goods and service producers by ensuri ng that Norway's business environment remains 
conducive to innovation, investment and growth. 
40. For geographical and historical reasons Norwegian trade largely takes place with our 
European neighbours.  The global character of major Norwegian exports and imports implies, 
however, that the well-being of the Norwegian economy is directly linked to the overall health of the 
world economy.  Norway's principal exports are raw materials, intermediary goods and infrastructure 
services, while a very large proportion of both fini shed and intermediate goods that consumers and 
businesses demand are imported. Thus, trade openness and access to global value chains are crucial to 
the smooth functioning of the Norwegian economy.   
41. The primary focus of Norwegian trade policy is  the multilateral trading system embodied in 
the WTO.  Other elements of Norwegian trade po licy, be they regionally through the EEA or EFTA, 
or bilaterally, are based on the fundamental princi ples of the multilateral trading system and must be 
seen as complementary and supplementary to our WTO commitments.  
42. Norway was a founding member of the GATT in 1947 and the WTO in 1995 and remains 
strongly committed to the multilateral framework under  the auspices of the WT O.  The strong, rules-
based system is the best guarantee against unila teralism and protectionism, and provides stability, 
security, transparency, and predictability for trad ers.  Economic growth and development in all 
nations depends on a strong, rules-based and fair multilateral trading system.  
43. The financial crisis since Norway's last Trad e Policy Review has not changed this view. The 
WTO has demonstrated its value as a global defe nce against protectionist pressures.  The peer 
pressure exercises through the Trade Policy Review Body and other regular committees, as well as the 
dispute settlement system, have generally functioned well in the interest of the Membership. As an 
open, medium-sized economy it is essential to Norway that the multilateral trading system remains relevant, valid and actively in use by the membership. Norway WT/TPR/G/269 
 Page 11 
 
 
44. Norway firmly believes that the best way to  meet the challenges facing an increasingly 
globalised world economy – and even more so in th ese unsettled times – is to continue to develop the 
global governance architecture. As the primary vehicl e for trade rules, the challenge for the WTO in 
this context is trade policy negotiations aimed at maintaining, improving and strengthening the 
multilateral trading system, and to facilitate the integration of all countries into the system.  
45. Norway deeply regrets that it has not been possible to conclude the Doha Development 
Agenda (DDA).  While any future agreement is ex pected to represent certain challenges for Norway, 
in particular in agriculture, we continue to ma intain that a positive outco me of the DDA is essential 
for the global economy, for developing countries and for Norway.   
46. Given the current impasse, we are prepared to  explore different avenues and options, always 
keeping in mind the overall goals of maintaining,  improving and strengthening the multilateral trading 
system and ensuring the integration into the system of emerging economies and other developing countries. In this light, Norway is also an ac tive participant in initiatives to update and improve 
existing agreements outside the DDA, includi ng GPA, ITA and regular reviews of the TBT 
agreement.  
47. Norwegian trade policy continues to enjoy broad political support. The public debate on trade 
policy is, however, increasingly extending beyond the traditional debate on the economic merits of 
trade and development. An increasing emphasis is  being placed on aspects such as health, the 
environment, food security and consumer safety. To ensure the continued support of the general 
public for the multilateral trading system and open tr ade, the Government consults regularly at the 
national level with non-governme ntal groups, including representatives of trade and industry, labour, 
consumer and other interest groups . Such consultations contribute to  increased transparency around 
trade policy formulation in Norway. 
48. Norway will continue to pursue regional and bilateral agreements, in conformity with 
Article XXIV of the GATT and Article V of the GATS, in order to expand trade and economic 
co-operation with its partners and safeguard No rwegian business opportunities. In addition to the 
multilateral work and negotiations through the WTO, Norway pursues its trade policy objectives 
along two main tracks: Regional integration thro ugh the Agreement on the European Economic Area, 
and free trade agreements, primarily in co-operation with its EFTA partners, Iceland, Liechtenstein 
and Switzerland. 
(i) The European Economic Area (EEA) 
49. The Agreement on the European Economic Area (EEA) extends the internal market of the 
27 EU Member States to Norway, Iceland and Li echtenstein.  The EEA Agreement guarantees the 
free movement of goods, persons, capital and services (the four "freedoms"), as well as non-discrimination and equal competition rules thro ughout the European Economic Area. The EEA 
Agreement provides a framework for Norway's stru ctural policies in the fields of inter alia 
competition policy, state aid, and government procur ement, as well as sectorial policies such as 
telecommunications and financial sector regulations.  In the sectors covered, the same regulations 
apply for Norwegian and EU companies. 
50. The EEA represents a complete internal market with identical rules and regulations for goods 
and services – this strongly benefits all traders who can operate on a single market of approximately 
500 million people. This is due also to the fact that rules and regulations governing imports from 
outside the EEA will be similar and often iden tical between EC and EFTA-EEA members.   WT/TPR/G/269 Trade Policy Review 
Page 12 
  
51. The EEA Agreement is, however, not a customs union.  In respect of Article XXIV of the 
GATT and Article V of the GATS the agreement is a free trade area, and there is no common customs tariff. Multilateral trade policy in the WTO and trade policy vis-à-vis  non-EEA countries remains the 
sovereign responsibility of the parties (EU,  Iceland, Liechtenstein, and Norway).  
52. The scope of the Agreement does not include the EU's Common Agricultural Policy or the 
Common Fisheries Policy, although it does contain provisions on some aspects of trade in agricultural and fish products.   
53. One of the primary objectives of the EEA Ag reement is to ensure  equal conditions of 
competition; thus the substantive competition rul es of the Agreement correspond to the relevant 
"acquis communautaire" in the EU.  This cove rs rules concerning cartels, abuse of dominant 
positions, merger control, state monopolies and st ate aid, as well as public procurement.  The 
Agreement also includes other areas that have an  impact on the competitive position of enterprises, 
such as consumer protection, environment, social policy (including health and safety at work, labour 
law and equal treatment of men and women), statis tics and certain elements of company law.   
54. A key feature of the EEA Agreement, whic h distinguishes it from traditional free trade 
agreements, is its dynamic character.  Its common  rules are continuously updated by adding new 
relevant EU legislation.  Each month, a number of  EEA-relevant pieces of legislation are incorporated 
into the Agreement by decisions of the EEA Joint Committee.  The Agreement provides for 
information and consultation proce dures at all stages of the decision-shaping process.  The EFTA-
EEA states ask for consultations on matters of concer n, and also seek adaptations to EU legislation in 
its application to the EFTA countries when speci al circumstances call for this.  Since the EEA 
Agreement entered into force, approximately 7,000 EU legal acts have been incorporated into the 
Agreement.  
55. Since the establishment of the EEA in 1994, No rway has contributed more than 3,000 million 
Euros for projects and programs aimed at reduci ng economic and social disparities in the EEA. 
Priority areas in the current program period (2 009-2014) include enviro nmental protection and 
climate change, conservation of cultural heritage, decent work, justice and home affairs and 
strengthening civil society. 
56. In 2010 the Government commissioned an inde pendent report on Norway's overall relations 
with the EU, including the EEA Agreement. Th e Report was handed over to the Government 
in January 2012 and a White Paper will be presente d to the Storting (parliament) this autumn. 
57. There is broad parliamentary support for the EEA Agreement as the main basis for Norway's 
economic relations with the EU. This implies that  relevant EU legislati on will continue to be 
incorporated into national law and secure a level pl aying field in the whole European economic area. 
(ii) Free Trade Agreements 
58. Since the early 1990s, Norway and its partne rs in the European Free Trade Association 
(EFTA) – Iceland, Liechtenstein and Switzerland – have established an extensive network of free 
trade agreements.  Since 2008, Norway has signed ag reements with Albania, Canada, Colombia, Gulf 
Cooperation Council (Bahrain, Unite d Arab Emirates, Kuwait, Oman , Qatar and Saudi Arabia) and 
Hong Kong, China, as well as Montenegro, Peru, Serb ia and Ukraine.  As of May 2012, the EFTA 
network consists of 24 free trade agreements with 33 countries and four declarations on co-operation.  
EFTA is currently negotiating with Algeria, Bosn ia and Herzegovina, India, Indonesia, Central 
America (Costa Rica, Guatemala, Honduras and Pa nama), Russia/Belarus/K azakhstan and Thailand. Norway WT/TPR/G/269 
 Page 13 
 
 
In addition, China and Norway started bilateral ne gotiations on a free trade agreement in the autumn 
of 2008. 
59. The free trade agreements cover trade in industr ial products, fish and ma rine products as well 
as processed agricultural products. In addition,  each EFTA country has concluded bilateral 
agricultural protocols which are integral parts of EFTA's free trade agreements with each of the 
partners.  The free trade agreements also incor porate in varying degrees provisions on a number of 
other trade issues such as competition, protection of intellectual property, services, investments, 
sustainable development and government procurement.  
60. The EFTA ministerial meeting in 2010 agreed to include a chapter on sustainable 
development in on-going and future  negotiations of EFTA free trade agreements.  The model chapter 
includes provisions on the environment and labour st andards. The aim is to secure a high level of 
protection for the environment and for employees.  Trading Parties should recognize that economic 
development, social development and protectio n of the environment are interdependent and 
supportive elements in securing sustainable developm ent. Parties should commit to promote trade that 
is environmentally friendly and that supports su stainable development as well as committing to not 
reducing levels of environmental or labour protection in order to secure a competitive advantage over 
trade partners or to attract investments.  
61. The agreement between EFTA and Peru a dditionally includes specific provisions on 
biodiversity; it reaffirms soverei gn rights over natural resources an d recognises rights and obligations 
under the Convention on Biological Diversity with r espect to access to genetic resources and to the 
fair and equitable sharing of benefits fro m the utilisation of these genetic resources. 
62. Several of EFTA's free trade agreements w ith developing countries take into account the 
different level of economic devel opment in the partner countries by providing for an asymmetrical 
approach.  In these agreements, the EFTA States grant free trade from the date the agreement enters 
into force, while the partner countries have tran sitional periods of tariff dismantling for certain 
sensitive products. This gives the partner country  time to adapt their economy to open trading 
conditions.  
63. Through its EFTA-agreements, Norway particip ates in the Pan-Euro-Mediterranean system of 
cumulation of origin. This is a network of Free Trad e Agreements that has identical rules of origin 
thereby allowing for diagonal cumulation of origin among the members and has been an important step to facilitate trade in the region. The new Regional Convention on Pan-Euro-Mediterranean 
Preferential Rules of Origin will, when it enters  into force, overcome and further simplify the 
problems of managing the around 60 bilateral protocols on rules of origin that exist in the region. 
(iii) Generalised System of Preferences  
64. The Norwegian Generalised System of Prefer ences (GSP) was established in 1971 with the 
objective to stimulate imports from developing countries. Duty-free and quota-free market access 
(DFQF) for all products from Least Developed Co untries (LDC) was introduced in 2002. In 2008 the 
DFQF scheme was extended to also include Lo w Income Countries (LIC) with less than 75 million 
inhabitants, bringing the total number of c ountries eligible for the DFQF scheme to 64. 
65. In 2011, the Norwegian government commissioned an independent study on the effects of the 
changes to the GSP that took effect from 2008. One of the major findings of the study was that imports from LDCs and other LICs remain marginal , despite significant tariff preferences. The study 
points to the relevance of a number of other obst acles to trade than tariffs, and in the case of the 
poorest countries, in particular the existence of num erous supply-side constraints. The study presents WT/TPR/G/269 Trade Policy Review 
Page 14 
  
a number of proposals for improvements to the GSP, and points to the importance of Aid for Trade 
and other forms of development assistance to addr ess the various supply constraints in the poorest 
countries.  Partly on the basis of this study, an in ter-ministerial working group is currently considering 
options for further improvements in the GSP scheme. 
(iv) Aid for Trade 
66. Norway is committed to cooperate with deve loping countries in their efforts to achieve 
economic growth and poverty reduction through increased participation in international trade. Market 
access and other improvements in the terms of trade are important in this regard. Market access is, however, not sufficient for the least developed and other low income countries. Therefore, enabling 
countries to take advantage of market access opportunities has a high priority in Norwegian 
development cooperation. 
67. For several years Norway has been a major c ontributor to the multilateral funds for trade-
related technical assistance (EIF, ITC, JITAP,  DDAGTF, ACWL, and UNCTAD).  In 2012, Norway 
donated NKr 15 million to the Doha Development Age nda Global Trust Fund, and Norway is one of 
the principal contributors to this Fund since its initia tion in 2002.  Norway has also made substantial 
contributions to other WTO-related activities, such as travel support to LDC representatives, 
WTO Public Forum, the Standards and Trade Deve lopment Facility and the Trade Facilitation Needs 
Assessment Trust Fund. Norway has also suppor ted work related to trade and climate.  
68.  An Action Plan for trade related developmen t cooperation (Aid for Trade) was launched by 
the Norwegian Government in 2007. The Action Plan  focuses on three thematic areas:  (i) good 
governance and the fight against corruption (compris ing trade policy, trade facilitation, technical 
barriers to trade, and ethical trade), (ii) women and tr ade, and (iii) regional trade.  Priority is given to 
Africa and the least developed countries, and th e funds are channelled pr imarily through multilateral 
organisations as recommended by the WTO task force on aid for trade.  The Action Plan is currently 
undergoing a revision based on experiences gained since the plan was launched. 
IV. CONCLUSION 
69. Norway's trade policy is an integral part of the Government's policy to promote economically, 
socially and environmentally sustainable growth, domestically and globally. A stable, rules based 
trading environment is of fundamental importan ce to Norway's national interests, and the WTO 
constitutes an important element of the global governance architecture.  
70. There have been no major changes in Norway's tr ade policy since the last review in 2008, and 
the fundamental pillars of Norway's trade policy remain unchanged:  
- a stable, multilateral, rules based trad ing environment anchored in the WTO, 
- complemented by deeper regional integr ation in the European Economic Area and 
free trade agreements with other important trading partners, primarily in cooperation 
with Norway's partners in EFTA, and 
- supplemented by policies and measures pr omoting the participation of developing 
countries in international trade and the global trading regime. 
__________