WORLD  TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/S/269 
21 August 2012 
 
 (12-4469) 
Trade Policy Review Body  
  
 
   
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
NORWAY 
 
 
  
This report, prepared for the sixth 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 Norway on its trade policies and practices.  Any technical questions arising from this report may be addressed to 
Cato Adrian (tel.:  0022 739 5469). 
 Document WT/TPR/G/269 contains the policy statement submitted by Norway.  
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Norway. Norway WT/TPR/S/269 
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  CONTENTS 
 
  Page 
 
SUMMARY   vii 
I.  ECONOMIC ENVIRONMENT 1  
 (1)   MAJOR FEATURES OF THE ECONOMY  1  
 (2)   RECENT ECONOMIC DEVELOPMENTS  1 
 (3)   TRADE PERFORMANCE  7  
 (4)   OUTLOOK  12 
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 13 
 (1)   GENERAL FRAMEWORK  13  
 (2)   TRADE POLICY OBJECTIVES  14  
 (3)   TRADE AGREEMENTS AND ARRANGEMENTS  14  
 (i)   WTO 14  
 (ii)   European Free Trade Association an d the European Economic Area 16  
 (iii)   Bilateral agreements 21  
 (iv)   Generalized System of Preferences 22  
 (4)   INVESTMENT REGIME  22 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 25  
 (1)   INTRODUCTION  25  
 (2)   MEASURES DIRECTLY AFFECTING IMPORTS  25  
 (i)   Import procedures and requirements 25 
 (ii)   Ordinary customs duties 27  
 (iii)   Other duties and charges 31  
 (iv)   Tariff-rate quotas, tariff exemptions 31 
 (v)   Fees and charges for services rendered 36  
 (vi)   Internal taxes 37  
 (vii)  Import prohibitions, restrictions, and licensing 38  
 (viii)  Customs valuation 39  
 (ix)   Rules of origin 40  
 (x)   Anti-dumping, countervailing duty, and safeguard regimes 41  
 (3)   MEASURES DIRECTLY AFFECTING EXPORTS  42  
 (i)   Export procedures and requirements 42  
 (ii)   Export taxes, fees and charges for services rendered, application of internal 
taxes to exports 42  
 (iii)   Export restrictions 43  
 (iv)   Export subsidies, finance, and guarantees 45  
 (v)   Export promotion and marketing assistance 47 
 WT/TPR/S/269 Trade Policy Review 
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    Page 
 
 (4)   MEASURES AFFECTING PRODUCTION AND TRADE  48  
 (i)   Subsidies 48  
 (ii)   Standards, technical regulations, and conformity assessment 53  
 (iii)   Sanitary and phytosanitary measures 55  
 (iv)   Free zones and special economic areas 57  
 (v)   Transit 57  
 (vi)   Countertrade and barter 58  
 (vii)  Government procurement 59  
 (viii)  State trading, state-owned enterprises, and privatization 62  
 (ix)   Competition policy 66  
 (x)   Price controls 68  
 (xi)   Trade-related intellectual property regime 69 
IV.  TRADE POLICIES BY SECTOR 73  
 (1)   AGRICULTURE  73  
 (i)   Main features 73  
 (ii)   Policy framework 75  
 (iii)   Farmer-owned cooperatives 77  
 (iv)   Border measures 78  
 (v)   Domestic programmes 79  
 (vi)   Export measures 87  
 (vii)  Evolution of support and protection 88  
 (2)   FORESTRY  89 
 (3)   FISHING AND AQUACULTURE  90  
 (i)   Aquaculture 91  
 (ii)   Capture fisheries 92  
 (4)   ENERGY   93 
 (i)   Hydrocarbons 93  
 (ii)   Electricity 96  
 (5)   MANUFACTURING  98  
 (i)   Food processing industry 99  
 (ii)   Metals (including automotive) 101  
 (6)   SERVICES  102 
 (i)   Financial services 104  
 (ii)   Telecommunications 107  
 (iii)   Maritime transport 109  
REFERENCES   113 
 
APPENDIX TABLES  115 
 
 
 
 Norway WT/TPR/S/269 
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  CHARTS 
  Page 
 
I. ECONOMIC ENVIRONMENT 
 I.1a Net central government surplus, 1995-2011 3 
I.1b Commodity Price Index for Crude Oil, 1995-2011 3 
I.2 Key Policy Rate vs 3-month NIBOR, 1991-2011 5 I.3 Composition of merchandise trade, 2008 and 2010 8 
I.4 Direction of merchandise trade, 2008 and 2010 9 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 II.1 EEA institutional framework 17 
 
IV. TRADE POLICIES BY SECTOR  
IV.1 Market regulation for agricultural products 76 
IV.2 Organization of public authorities in relation to petroleum activities 95  
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 I.1 Basic economic indicators, 2008-11 5 
I.2 Trade in services by geographical breakdown, 2010 10 
I.3 Balance of payments, 2008-11 11  
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 
II.1 Norway's notifications under the WTO Agreements, 1 January 2010-28 June 2012 15 
II.2 Norway's FDI regulatory restrictiveness index, 2010 24  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 III.1 Structure of MFN tariffs, 2012 28 
III.2 Tariff summary, 2012 28 
III.3 Tariffs under preferential agreements, 2012 30 III.4 Tariff-rate quotas and import volume, 2010 32 
III.5 Preferential tariff-rate quotas, 2010 34 
III.6 Other taxes and fees, 2012 36 III.7 VAT rates, January 2012 37 
III.8 Non-automatic import licen sing requirements, 2012 39 
III.9 Export regulations, 2012 44 III.10 Industry-wide and selected sector-specific support programmes, 2009 and 2010 50 
III.11 State-owned enterprises, April 2012 64 
III.12 Overview of IPR protection provided by Norway's legislation, 2012 70 
 
IV. TRADE POLICIES BY SECTOR  IV.1 Production income in agriculture, 1989, 2004, and 2010 73 
IV.2 Key indicators on selected domestic production, average 2008-09 74 
IV.3 Main elements of agri cultural agreements, 2007-11 76 
IV.4 Current Aggregate Measurement of Support (AMS), 2008-10 80 WT/TPR/S/269 Trade Policy Review 
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    Page 
 
IV.5 Green box and blue box measures, 2008-10 81 
IV.6 Export subsidies, 2008-11 87 IV.7 Norway's exports of commercial services, 2007-11 102 
IV.8 Norway's imports of commercial services, 2007-11 103 
  
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Structure of exports, 2008-10 117 AI.2 Structure of imports, 2008-10 118 
AI.3 Destination of exports, 2008-10 119 
AI.4 Origin of imports, 2008-10 120 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
AIII.1 Main excise duties, 2012 121 
 
IV. TRADE POLICIES BY SECTOR  
AIV.1a Internal price rebates and export restitutions for the use of domestic raw materials, 
 effective 1 January 2012 123 AIV.1b Payments by final products in 2010 124 
AIV.2 Summarized trade regimes of maritime transport services 125 
 
 
 
 
 Norway WT/TPR/S/269 
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  SUMMARY 
 
1. Rich in natural resources, No rway has been running a surplus in merchandise trade for more 
than 20 years.  With sizeable exports of crude oil and natural gas, the surplus on the current account 
exceeded 10% every year during 2007-11.  Norway saves a good portion of its oil and gas wealth in 
the Government Pension Fund – Global, invested en tirely in assets abroad.  At the end of March 2012, 
the Fund's assets were valued at NKr 3.5 trillion (€460 billion).  The central government budget has 
been in surplus every year since 1995.   
2. Norway has fared better than most develope d economies through the recent global financial 
turmoil.  Unlike many other countries, the Norweg ian Government was able to counter the external 
shock in autumn 2008 with measures to stimulate the domestic economy and ensure financial stability 
with no serious risk to its financia l position.  Interest rates, which had been geared towards containing 
inflationary pressures, were cut sharply.  The 2009 Fiscal Budget was the most expansionary budget 
in more than 30 years.  As the economy rebounde d in 2010, the Government began to reign in the 
fiscal stimulus.  Mainland GDP grew by 2.4% in 2011, just below the historical trend, and the 
unemployment rate is declining steadily towa rds 3%.  Interest rates remain low.   
3. Norway's most important trading partners are within its region.  The EU still accounts for 
more than 80% of Norway's merchandise exports and around two thirds of Norway's imports.  
However, the trend towards increasing trade with othe r parts of the world, in particular Asia, has 
continued over the last four years.  Norway h as been benefitting from improved terms of trade as 
prices for its exports of energy, energy-intensive pr oducts, and fish have b een generally favourable, 
while imports of consumer  goods have been sourced more cheaply, particularly from Asian suppliers.   
4. No significant changes have occurred in No rway's general framework for trade policy 
formulation and implementation over the last four  years.  Norway supports a strong multilateral 
trading system with effective dispute settlement.  It participated actively in the negotiations to revise 
the plurilateral Agreement on G overnment Agreement, and will be expanding considerably its 
obligations towards the other signatories.   
5. The Agreement on the European Economic Area (EEA) is a central element in Norway's 
close relationship with the EU.  Through the EEA Agre ement, the EU's internal market is extended to 
Norway in all areas except those specifically excl uded.  The EEA Agreement is not a customs union, 
does not provide for a common agricultural policy, and does not extend to internal taxation.  Vis-à-vis 
third countries, Norway and its partners in th e European Free Trade As sociation (EFTA), i.e. 
Switzerland, Iceland, and Liechtenstein, have opt ed for an extensive framework of free-trade 
agreements, covering 33 countries at present.  Furthe r FTA negotiations are ongoing.  In addition, the 
EFTA states have signed joint declarations on co operation with MERCOSUR, Malaysia, Mauritius, 
and Mongolia.   
6. Norway introduced a GSP scheme for imports from developing countries in 1971.  While still 
important for certain goods, the scheme has gradually  become less relevant for many of Norway's 
developing country trading partners.  For some, relations are now governed by an EFTA FTA, and 
Norway's unilateral elimination of MFN customs duties on most manufactured goods has removed the 
preferential margin previously offered under the sch eme.  Norway's GSP scheme was revised in 2007, 
and currently provides duty- and quota-free access to the Norwegian market for all LDCs and for 
14 low-income developing countries.  Although the utilization rate of the GSP scheme is high, the 
GSP reform does not appear to have led to any major increase in imports from LDCs and low-income 
countries since 2008.   WT/TPR/S/269 Trade Policy Review 
Page viii 
  
  7. Norway bound its entire tariff schedule through the Uruguay Round, but at high rates for 
many agricultural products.  Peak bound rates fo r manufactured goods range from 11% to 14%, and 
the applied regime is more liberal.  Most industrial products enter free of duty, irrespective of origin.  
At present, MFN tariffs are only applicable to clothi ng, certain textiles (33 items), and some fish and 
fish products used for animal feed (9 items).  Import and export restrictions largely stem from 
Norway's implementation of international conven tions or treaties, or the implementation of 
Chapter VII decisions of the UN Security Council.   
8. As the EEA Agreement is designed to provide for the free movement of goods, services, 
labour, and capital under equal conditions of competition provided by the evolving EU acquis 
communautaire, many of Norway's trade regulations are eith er identical to, or aligned with, the trade 
rules applied by EU member states.  The alignment is notable in customs rules and regulations, TBT, 
SPS, TRIPS, and in services regulations.  Norway has also adapted to common disciplines on state aid 
(i.e. non-agricultural subsidies), competition policy,  and government procurement.  Anti-dumping and 
countervailing measures may not be used in mutu al trade between Norway and the EU in areas 
covered by the EEA Agreement and where the EU acquis  has been fully incor porated.  Norway has 
never invoked safeguard provisions under the EEA  Agreement or under EFTA FTAs.  An infrequent 
user of trade remedies in the GATT, Norway h as never initiated anti-dumping,  countervailing duty, or 
safeguard actions (pursuant to the WTO Agreement on Safeguards) since the inception of the WTO.   
9. Among notable developments in the trade regime  during the last four years, an advance 
electronic summary declaration became mandatory for all movement of goods between Norway and 
non-EEA countries on 1 January 2011.  The certifica tion of Authorized Economic Operators makes it 
possible to waive the summary decl aration obligation in trade with the EU.  The Norwegian Customs 
and Excise Service has adopted the EU/EMARS system, Safe Sea Net, for reporting shipping 
information to customs.  A number of user fees and charges financing the control activities of the 
Norwegian Food Safety Authority were eliminated w ith effect from 1 January 2012.  In the area of 
export finance, the provision of credit by Eksportfin ans is being curtailed.  As of 1 July 2012, the 
wholly state-owned Eksportkreditt Norge AS is no w the provider of subsidized commercial interest 
reference rate (CIRR) loans and CIRR-qualified mark et loans.  The company' s provision of market 
loans will be notified to the EFTA Surveillance Aut hority.  Export guarantees will continue to be 
issued by the Norwegian Guarantee In stitute for Export Credits (GIEK).   
10. The extent of state ownership is considerable in Norway and has generally remained stable 
over the last four years.  The Norwegian Government  is of the view that the State can make a positive 
contribution to industrial developm ent through ownership in industr ial enterprises in Norway.  The 
Government has no need to raise cash, and has set no specific privatization targets;  there has been a 
marked slowdown in privatizations in Norway co mpared with the years prior to 2005.  However, 
individual stakes may be divested when considered beneficial for the profitability and growth of an 
enterprise.   
11. In connection with its implementation of th e EU Services Directive, Norway notified 
78 authorization schemes and regulatory requirements that may affect commercial presence or cross- 
border supply of services.  The Directive does not require Norway to harmonize its legislation with 
the EU, but has involved the screening of national authorization schemes on the grounds of non-discrimination, public interest, and proportionality.   
12. The Norwegian financial sector has largely escap ed the dramatic effects of the global 
financial turmoil since 2008.  The Norwegian authoriti es stepped in quickly to provide liquidity to the 
banking system and access to longer-term funding fr om a State Finance Fund.  A Government Bond Norway WT/TPR/S/269 
 Page ix 
 
 
  Fund was also established to facilitate enterprise fi nancing on normal terms.   Both Funds operated 
well within the established credit limits, and many banks have subsequently opted to replace allotted 
capital contributions with equity and other types of market-based financing.  Norway did not have to 
issue state guarantees for the insurance of depos its during the crisis, as the Norwegian Banks' 
Guarantee Fund was considered sufficiently robust to handle prevailing difficulties.  A matter of on-
going debate is whether the return of general optimism to the domestic economy, an unprecedented 
long period of low nominal interest rates, and lo cally brisk demand for dwellings have created an 
asset bubble in the Norwegian housing market. 
13. Being part of a small and ge nerally open economy, many Norwegian enterprises are used to 
operating in a global environment with little scope for protection in the home market.  This is 
particularly noteworthy for Norway's petroleum-related engineering and services enterprises, the maritime cluster, the telecommunications sector, th e metal industry, and Norway's outward-oriented 
fish and fish processing industry.  The one excepti on to the openness rule is land-based farming, 
where non-trade concerns continue to dominate the agenda.  The protection of primary agricultural 
production also has spill-over effects on competition in the food processing industry and the grocery 
sector.   
14. The agriculture sector is closely regulated, and complex domestic market regulation often 
goes hand in with high border protection for livestock and crops grown in Norway.  Milk and dairy, 
which is the heart of Norwegian agriculture, is partic ularly heavily regulated with instruments such as 
target pricing, producer levies, production contro ls, product-price equalization, transport support, 
product storage, internal price rebates, export s ubsidies, structural income support, and regional 
deficiency payments.  A switch from specific to ad valorem  import duty on liquid milk and cream 
in 2010 was a conscious move to increase th e applied border protection for sector.   
15. Despite the considerable assistance provided to  the agriculture sector for decades, the number 
of farmers is constantly declining.  Support would thus seem to have been slowing structural change 
but not preventing it.  A new multilateral agreement in the WTO on further reductions in agricultural 
subsidies could have major implications for Norway .  Reduced "amber box" subsidies, disciplines on 
"blue box" and de minimis  support, tariff reductions , and expanded TRQs in combination with zero 
in-quota import duties would cut into the "policy space"  that Norway is utilizing at present.  However, 
despite the leeway for unilateral action in anticipatio n of future multilaterally agreed parameters, there 
are no signs yet that Norway has taken determined  steps to prepare for a negotiated outcome in 
the WTO.